The First Bancorp Inc. (FNLC) reported first‑quarter 2026 results that saw net income climb to $46.7 million, a 27% year‑over‑year increase, and diluted earnings per share rise to $1.13 from $0.63 in the same period last year. Net interest income reached $107.1 million, and the net interest margin expanded to 2.86%, up 38 basis points from the 2.48% reported in Q1 2025.
Margin expansion was driven by a 5‑basis‑point lift in the tax‑equivalent yield on earning assets and a 38‑basis‑point drop in the cost of total liabilities. The efficiency ratio improved to 52.64% from 56.93% in Q1 2025, reflecting disciplined cost management and a higher mix of fee‑based income that offset the modest rise in operating expenses.
On the balance‑sheet side, total assets grew to $3.20 billion, supported by $11 million in loan growth and $116 million in new loan production. Deposits held steady at $2.66 billion; non‑maturity deposits fell $58.6 million, a decline offset by increases in time deposits and borrowed funds. Capital ratios strengthened, with the leverage capital ratio rising to 9.09% and the tangible common equity ratio to 8.08%. A slight uptick in non‑performing assets was noted, but overall asset quality remained solid.
CEO Tony C. McKim said, “I am pleased to report continued year‑over‑year quarterly earnings growth to kick off 2026. Net income of $46.7 million for the first quarter is an increase of 27.1% from the first quarter of 2025. Our return on average assets for the period was 1.15% and our return on average tangible common equity was 14.15%, both up nicely from 0.91% and 12.64%, respectively, a year ago.” He added that the margin improvement was a result of “earning asset yield enhancement focused in the loan portfolio and reduced funding costs.”
Analysts had an EPS estimate of $1.08 for the quarter, so the company beat expectations by $0.05, a 4.6% overrun. The positive market reaction was driven by the strong earnings growth, margin expansion, and the company’s solid capital position, even as it noted a modest increase in non‑performing assets.
The results reinforce The First Bancorp’s trajectory of steady earnings growth and margin expansion, underpinned by disciplined cost control and a favorable interest‑rate environment. While the slight rise in non‑performing assets and the shift in deposit mix present short‑term headwinds, the company’s robust capital ratios and continued loan growth position it well for the remainder of the year.
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