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What changed in First Bancorp, Inc /ME/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of First Bancorp, Inc /ME/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+319 added−338 removedSource: 10-K (2026-03-06) vs 10-K (2025-03-07)

Top changes in First Bancorp, Inc /ME/'s 2025 10-K

319 paragraphs added · 338 removed · 274 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

60 edited+16 added−35 removed52 unchanged
Biggest changeBecause we are a financial holding company, if the Bank receives a rating under the Community Reinvestment Act of 1977, as amended (the "CRA"), of less than satisfactory, the Bank and/or the Company will be prohibited, until the rating is raised to satisfactory or better, from engaging in new activities or acquiring companies other than bank holding companies, banks or savings associations, except that we could engage in new activities, or acquire companies engaged in activities, that are closely related to banking under the BHC Act.
Biggest changeIf the Bank were to receive a rating of less than satisfactory, the Company could be prohibited from engaging directly or indirectly in corporate acquisitions or mergers or in new activities, until the rating is raised to satisfactory or better.
FDICIA establishes five capital categories consisting of "well capitalized," "adequately capitalized," "undercapitalized," "significantly undercapitalized" and "critically undercapitalized." Under applicable regulations, a bank that has a Total Risk-Based Capital Ratio of 10.0% or greater, a Tier 1 Risk-Based Capital Ratio of 8.0% or greater, a CET1 ratio of 6.5% or greater, and a Leverage Capital Ratio of 5.0% or greater, and is not subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure, is deemed to be "well capitalized." A bank that has a Total Risk-Based Capital Ratio of 8.0% or greater, a Tier 1 Risk-Based Capital Ratio of 6.0%, a CET1 ratio of 4.5%, or greater and a Leverage Capital Ratio of 4.0% or greater and does not meet the definition of a well-capitalized bank is considered to be "adequately capitalized." A bank that has a Total Risk-Based Capital Ratio of less than 8.0%, or has a Tier 1 Risk-Based Capital Ratio that is less than 6.0%, or a CET1 ratio of less than 4.5%, or a Leverage Capital Ratio of less than 4.0% is considered "undercapitalized." A bank that has a Total Risk-Based Capital Ratio of less than 8.0%, or a Tier 1 Risk-Based Capital Ratio that is less than 4.0%, or a CET1 ratio of less than 3.0%, or a Leverage Capital Ratio that is less than 3.0% is considered to be "significantly undercapitalized," and a bank that has a ratio of tangible equity to total assets equal to or less than 2% is deemed to be "critically undercapitalized." A bank may be deemed to be in a capital category lower than is indicated by its actual capital position if it is determined to be in an unsafe or unsound condition or receives an unsatisfactory examination rating.
FDICIA establishes five capital categories consisting of "well capitalized," "adequately capitalized," "undercapitalized," "significantly undercapitalized" and "critically undercapitalized." Under applicable regulations, a bank that has a Total Risk-Based Capital Ratio of 10.0% or greater, a Tier 1 Risk-Based Capital Ratio of 8.0% or greater, a CET1 ratio of 6.5% or greater, and a Leverage Capital Ratio of 5.0% or greater, and is not subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure, is deemed to be "well capitalized." Generally, a bank that has a Total Risk-Based Capital Ratio of 8.0% or greater, a Tier 1 Risk-Based Capital Ratio of 6.0% or greater, a CET1 ratio of 4.5%, or greater and a Leverage Capital Ratio of 4.0% or greater, but does not meet the definition of a well-capitalized bank is considered to be "adequately capitalized." A bank that has a Total Risk-Based Capital Ratio of less than 8.0%, a Tier 1 Risk-Based Capital Ratio that is less than 6.0%, a CET1 ratio of less than 4.5%, or a Leverage Capital Ratio of less than 4.0% is considered "undercapitalized." A bank that has a Total Risk-Based Capital Ratio of less than 8.0%, a Tier 1 Risk-Based Capital Ratio that is less than 4.0%, a CET1 ratio of less than 3.0%, or a Leverage Capital Ratio that is less than 3.0% is considered to be "significantly undercapitalized." A bank that has a ratio of tangible equity to total assets equal to or less than 2% is deemed to be "critically undercapitalized." A bank may be deemed to be in a capital category lower than is indicated by its actual capital position if it is determined to be in an unsafe or unsound condition or receives an unsatisfactory examination rating.
Management also makes decisions based upon, among other things, the knowledge of the Bank's employees regarding the communities and customers in the Bank's primary market area. The individuals employed by the Bank, to a large extent, reside near the branch offices and thus are generally familiar with their communities and customers.
Management also makes decisions based upon, among other things, the knowledge of the Bank's employees regarding the communities and customers in the Bank's primary market area. The individuals employed by the Bank, to a large extent, reside near its branch offices and thus are generally familiar with their communities and customers.
Applying these risk-weights to each category of the bank's balance sheet assets and to the credit equivalent amounts of the bank's off-balance sheet obligations and summing the totals results in the amount of the bank's total Risk-Weighted Assets ("RWAs") for purposes of the risk-based capital requirements.
Applying these risk-weights to each category of the balance sheet assets and to the credit equivalent amounts of the off-balance sheet obligations, and summing the totals results in the amount of total Risk-Weighted Assets ("RWAs") for purposes of the risk-based capital requirements.
Banking institutions with a ratio of CET1 capital to RWA above the minimum requirement but below the capital conservation buffer face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases based on the amount of the shortfall and the institution’s “eligible retained income” (the greater of (i) net income for the preceding four quarters, net of distributions and associated tax effects not reflected in net income and (ii) average net income over the preceding four quarters).
Banking organizations with a ratio of CET1 capital to RWA above the minimum requirement but below the capital conservation buffer face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases based on the amount of the shortfall and the institution’s “eligible retained income” (the greater of (i) net income for the preceding four quarters, net of distributions and associated tax effects not reflected in net income and (ii) average net income over the preceding four quarters).
General: As a financial holding company, the Company is subject to regulation under the BHC Act and to inspection, examination and supervision by its primary regulator, the FRB.
General: As a financial holding company, the Company is subject to regulation under the BHC Act and to inspection, examination and supervision by its primary federal regulator, the FRB.
A bank deemed by its federal banking regulator to have excessive interest rate risk exposure may be required to maintain additional capital (that is, capital in excess of the minimum ratios discussed above). The Bank believes, based on its level of interest rate risk exposure, that this provision will not have a material adverse effect on it.
An organization deemed by its federal banking regulator to have excessive interest rate risk exposure may be required to maintain additional capital (that is, capital in excess of the minimum ratios discussed above). The Bank believes, based on its level of interest rate risk exposure, that this provision will not have a material adverse effect on it.
This is important in local decision-making and allows the Bank to respond to customer questions and concerns on a timely basis and fosters quality customer service. The First Bancorp - 2024 Form 10-K - Page 1 The Bank has worked and will continue to work to position itself to be competitive in its market area.
This is important in local decision- The First Bancorp - 2025 Form 10-K - Page 1 making and allows the Bank to respond to customer questions and concerns on a timely basis and fosters quality customer service. The Bank has worked and will continue to work to position itself to be competitive in its market area.
RWAs for institutions such as the Bank will generally be less than reported balance sheet assets because its retail banking activities include proportionally more residential mortgage loans, many of its investment securities have a low risk weighting and there is a relatively small volume of off-balance sheet obligations.
RWAs for a depository institution, such as the Bank, will generally be less than reported balance sheet assets because its retail banking activities include proportionally more residential mortgage loans, many of its investment securities have a low risk weighting and there is a relatively small volume of off-balance sheet obligations.
Federal regulations require federal bank regulators to take "prompt corrective action" with respect to insured depository institutions that fail to satisfy minimum capital requirements, and to impose significant restrictions on such institutions. See "Prompt Corrective Action" below.
Federal regulations require federal bank regulators to take "prompt corrective action" with respect to insured depository institutions that fail to satisfy minimum capital requirements, and to impose significant restrictions on such institutions.
The FRB has a policy that a BHC is expected to act as a source of financial and managerial strength to each of its subsidiary banks and, under appropriate circumstances, to commit resources to support each such subsidiary bank. This support may be required at times when the BHC may not have the resources to provide the support.
The FRB has a policy that a BHC is expected to act as a source of financial and managerial strength to its subsidiary bank and, under appropriate circumstances, to commit resources to support the subsidiary bank. This support may be required at times when the BHC may not have the resources to provide the support.
Bank Holding Company Activities: As a bank holding company ("BHC") that has elected to become a financial holding company pursuant to the BHC Act, we may affiliate with securities firms and insurance companies and engage in other activities that are financial in nature or incidental or complementary to activities that are financial in nature.
Bank Holding Company Activities: As a bank holding company ("BHC") that has elected to become a financial holding company pursuant to the BHC Act, we may affiliate with securities firms and insurance companies and engage in other activities that are financial in nature or incidental or complementary to activities that are financial in nature, as those terms are used in the BHC Act.
Additionally, the Capital Rules require an institution to establish a capital conservation buffer of CET1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total RWAs, resulting in a requirement for the Company and the Bank effectively to maintain CET1, Tier 1 and total capital ratios of 7%, 8.5% and 10.5%, respectively.
Additionally, the Capital Rules require an organization to establish a capital conservation buffer of CET1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total RWA, resulting in a requirement for the Company and the Bank effectively to maintain CET1, Tier 1 and total capital ratios of 7%, 8.5% and 10.5%, respectively.
Department of the Treasury for evaluating technology and internal processes for BSA compliance; and expands enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations. The Bank has established an anti-money laundering program to comply with the BSA requirements.
Department of the Treasury for evaluating technology and internal processes for BSA compliance; and expands enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations. The Bank has established an anti-money laundering program to comply with the BSA requirements. Office of Foreign Assets Control .
Non-banking entities such as brokerage houses, mortgage companies and insurance companies are offering very competitive products. Many of these entities and institutions have resources substantially greater than those available to the Bank and in some cases are not subject to the same regulatory restrictions as are the Company and the Bank.
Non-banking entities such as brokerage houses, mortgage companies and insurance companies also offer competitive products. Many of these entities and institutions have resources substantially greater than those available to the Bank and in some cases are not subject to the same regulatory restrictions as are the Company and the Bank.
In the event of the "liquidation or other resolution" of an insured depository institution, the claims of depositors payable in the United States (including the claims of the FDIC as subrogee of insured depositors) and certain claims for administrative expenses of the FDIC as a receiver will have priority over other general unsecured claims against the institution.
In the event of the "liquidation or other resolution" of an insured depository institution, the claims of depositors generally (including the claims of the FDIC as subrogee of insured depositors) and certain claims for administrative expenses of the FDIC as a receiver will have priority over other general unsecured claims against the institution.
Supervision and Regulation The Company is a financial holding company within the meaning of the Bank Holding Company Act of 1956, as amended (the "BHC Act"), and section 225.82 of Regulation Y issued by the Board of Governors of the Federal Reserve System (the "Federal Reserve Board" or "FRB"), and is required to file with the Federal Reserve Board an annual report and other information required pursuant to the BHC Act.
Supervision and Regulation The Company is a financial holding company within the meaning of the Bank Holding Company Act of 1956, as amended (the "BHC Act"), and section 225.82 of Regulation Y issued by the Board of Governors of the Federal Reserve System (the "Federal Reserve Board" or "FRB"), and is required to file with the Federal Reserve Board periodic reports and other information required pursuant to the BHC Act.
"Cybersecurity" for a discussion of our cybersecurity risk management and strategy and oversight of risks from cybersecurity threats. Human Capital At December 31, 2024, the Company had 284 employees and full-time equivalency of 282 employees. Most employees live and work in the State of Maine, with a limited number of employees working remotely outside of Maine.
"Cybersecurity" for a discussion of our cybersecurity risk management and strategy and oversight of risks from cybersecurity threats. Human Capital At December 31, 2025, the Company had 283 employees and full-time equivalency of 278 employees. Most employees live and work in the State of Maine, with a limited number of employees working remotely outside of Maine.
The Brewer office raised the Bank's branch location count to eighteen, and became its second branch in Penobscot County. As of December 31, 2024, the Company's securities consisted of one class of common stock. At that date, there were 11,155,528 shares of common stock outstanding.
The Brewer office raised the Bank's branch location count to eighteen, and became its second branch in Penobscot County. As of December 31, 2025, the Company's securities consisted of one class of common stock. At that date, there were 11,222,363 shares of common stock outstanding.
In addition, the federal bank regulatory agencies are required by FDICIA to prescribe standards specifying: (i) maximum classified assets to capital ratios; (ii) minimum earnings sufficient to absorb losses without impairing capital; and (iii) to the extent feasible, a minimum ratio of market value to book value for publicly-traded shares of depository institutions and depository institution holding companies.
In addition, the federal bank regulatory agencies are required by FDICIA to prescribe standards specifying: (i) maximum classified assets to capital ratios; (ii) minimum earnings sufficient to absorb losses without impairing capital; and (iii) to the extent feasible, a minimum The First Bancorp - 2025 Form 10-K - Page 6 ratio of market value to book value for publicly-traded shares of depository institutions and depository institution holding companies.
The Bank is subject to restrictions under federal law that limit the transfer of funds or other items of value from a subsidiary to the Company and any nonbank subsidiaries (including affiliates) in so-called "covered transactions." In general, covered transactions include loans and other extensions of credit, investments and asset purchases, as well as certain other transactions involving the transfer of value from a subsidiary bank to an affiliate or for the benefit of an affiliate.
The Bank is subject to restrictions under federal law that limit the transfer of funds or other items of value from an insured depository institution subsidiary to any nonbank affiliate (including the Company) that comprise "covered transactions." In general, covered transactions include loans and other extensions of credit, investments and asset purchases, as well as certain other transactions involving the transfer of value from a subsidiary bank to an affiliate or for the benefit of an affiliate.
"Cybersecurity" for a discussion of our cybersecurity risk management and strategy and oversight of risks from cybersecurity threats. Other Dodd-Frank Wall Street Reform and Consumer Protection Act: The Dodd-Frank Act, enacted on July 21, 2010, resulted in broad changes to the U.S. financial system and was the most significant financial reform legislation enacted since the 1930s.
"Cybersecurity" for a discussion of our cybersecurity risk management and strategy and oversight of risks from cybersecurity threats. Dodd-Frank Wall Street Reform and Consumer Protection Act: The Dodd-Frank Act, enacted on July 21, 2010, resulted in broad changes to the U.S. financial system.
The Bank is regulated by the Office of the Comptroller of the Currency (the "OCC") and is subject to the provisions of the National Bank Act. As a result, it must meet certain liquidity and capital requirements, which are discussed in the following sections.
The Bank is regulated by the Office of the Comptroller of the Currency (the "OCC") and is subject to the provisions of the National Bank Act and the Federal Deposit Insurance Act. As a result, it must meet a number of regulatory standings, including certain liquidity and capital requirements, which are discussed in the following sections.
The Sarbanes-Oxley Act: The Sarbanes-Oxley Act of 2002 ("SOX") implemented a broad range of corporate governance and accounting measures for public companies (including publicly-held bank holding companies such as the Company) designed to promote honesty and transparency in corporate America and better protect investors from corporate wrongdoings.
The Bank has established a transaction monitoring program to comply with OFAC requirements. The Sarbanes-Oxley Act: The Sarbanes-Oxley Act of 2002 ("SOX") implemented a broad range of corporate governance and accounting measures for public companies (including publicly-held bank holding companies such as the Company) designed to promote honesty and transparency in corporate America and better protect investors from corporate wrongdoings.
On December 31, 2024, the Company's consolidated Total Capital Ratio was 13.22%, its CET1 and Tier 1 ratios were 12.04%, and its Leverage Capital Ratio was 8.47%. Based on the above figures and accompanying discussion, the Company exceeds all regulatory capital requirements and is considered well capitalized.
On December 31, 2025, the Company's consolidated Total Capital Ratio was 14.02%, its CET1 and Tier 1 ratios were 12.84%, and its Leverage Capital Ratio was 8.84%. Based on the above figures and accompanying discussion, the Company exceeds all regulatory capital requirements and is considered well capitalized.
The risk-based capital rules assign the majority of a bank's balance sheet assets and the credit equivalent amounts of the bank's off-balance sheet obligations to one of four risk categories, weighted at 0%, 20%, 50% or 100%, as applicable. A small amount of assets and off-balance sheet obligations are assigned a risk weight above 100%.
The risk-based capital rules assign the majority of balance sheet assets and the credit equivalent amounts of off-balance sheet obligations to one of four risk categories, weighted at 0%, 20%, 50% or 100%, as applicable.
Impact of Monetary Policy: Our business and earnings are affected significantly by the fiscal and monetary policies of the federal government and its agencies. We are particularly affected by the policies of the FRB, which regulates the supply of money and credit in the United States.
The First Bancorp - 2025 Form 10-K - Page 7 Impact of Monetary Policy: Our business and earnings are affected significantly by the fiscal and monetary policies of the federal government and its agencies. We are particularly affected by the policies of the FRB, which regulates the supply of money and credit in the United States.
The Dodd-Frank Act has affected, and we expect it will continue to affect, most of our business in some way, either directly through regulation of specific activities or indirectly through regulation of concentration risks, capital and liquidity.
The Dodd-Frank Act has affected, and we expect it will continue to affect, most of our business in some way, either directly through regulation of specific activities or indirectly through regulation of concentration risks, capital and liquidity. Title X of the Dodd-Frank Act consists of the Consumer Financial Protection Act which established the CFPB.
FDICIA The First Bancorp - 2024 Form 10-K - Page 5 generally prohibits a bank from making capital distributions (including payment of dividends) or paying management fees to controlling stockholders or their affiliates if, after such payment, the bank would be undercapitalized.
FDICIA generally prohibits a bank from making capital distributions (including payment of dividends) or paying management fees to controlling stockholders or their affiliates if, after such payment, the bank would be undercapitalized.
See "Prompt Corrective Action" above. Banks that are not in the "Well Capitalized" category are subject to certain limits on the rates of interest they may offer on any deposits (whether or not obtained through a third-party deposit broker).
For this purpose, "Well Capitalized" and "Adequately Capitalized" have the same definitions as in the Prompt Corrective Action regulations. See "Prompt Corrective Action" above. Banks that are not in the "Well Capitalized" category are subject to certain limits on the rates of interest they may offer on any deposits (whether or not obtained through a third-party deposit broker).
Capital Requirements: The Company and the Bank are subject to risk-based capital requirements and rules issued by the FRB, the OCC and the FDIC (the “Capital Rules”) that are based on the Basel Committee on Banking Supervision’s (“Basel Committee”) framework for strengthening capital and liquidity regulation (referred to as Basel III).
Capital Requirements: The Company and the Bank are subject to leverage capital requirements issued by the federal banking regulatory agencies (the “Capital Rules”), as well as risk-based capital requirements issued by the banking agencies based on the Basel Committee on Banking Supervision’s (“Basel Committee”) framework for strengthening capital and liquidity regulation (referred to as Basel III).
A bank's qualifying total capital ("Total Capital") for this purpose may include two The First Bancorp - 2024 Form 10-K - Page 4 components: "Core" (Tier 1) Capital and "Supplementary" (Tier 2) Capital; Tier 1 Capital is further broken down in the Capital Rules to Common Equity Tier 1 ("CET1") and Additional Tier 1 Capital ("AT1").
Qualifying total capital ("Total Capital") for this purpose may include two components: "Core" (Tier 1) Capital and "Supplementary" (Tier 2) Capital; Tier 1 Capital is further broken down in the Capital Rules to Common Equity Tier 1 (CET1) and Additional Tier 1 Capital (AT1).
Through the DIF, the FDIC insures the deposits of the Bank up to prescribed limits for each depositor. The DIF was formed March 31, 2006, upon the merger of the Bank Insurance Fund and the Savings Insurance Fund in accordance with the Federal Deposit Insurance Reform Act of 2005 (the "FDIR Act").
Through the DIF, the FDIC insures the deposits of the Bank up to prescribed limits for each depositor. The DIF was formed March 31, 2006, upon the merger of the Bank Insurance Fund and the Savings Insurance Fund.
The collective sum of the individual differences, life experiences, knowledge, inventiveness, innovation, self-expression, unique capabilities, and talent that our employees invest in their work represents a significant part of not only our culture, but our reputation and the Company's achievement as well.
Diversity and Inclusion: The Company believes that our people are our most valuable asset. The collective differences, experiences, knowledge, inventiveness, innovation, self-expression, unique capabilities, and talent that our employees invest in their work represents a significant part of not only our culture, but our reputation and the Company's achievement as well.
The statute and its underlying The First Bancorp - 2024 Form 10-K - Page 7 regulations also permit information sharing for counter-terrorist purposes between federal law enforcement agencies and financial institutions, as well as among financial institutions, subject to certain conditions, and require the Federal Reserve Board (and other federal banking regulatory agencies) to evaluate the effectiveness of an applicant in combating money laundering activities when considering applications filed under Section 3 of the BHC Act or under the Bank Merger Act.
The Act and its underlying regulations also permit information sharing for counter-terrorist purposes between federal law enforcement agencies and financial institutions, as well as among financial institutions, subject to certain conditions, and require the various federal bank regulatory agencies to evaluate the effectiveness of an applicant in combating money laundering activities when considering applications for approval of acquisitions or new activities, including but not limited to those filed under Section 3 of the BHC Act or under the Bank Merger Act.
Discrimination on the grounds of race, color, religion, sex, sexual orientation, gender identity, age, national origin, physical or mental disability, veteran status, or other legally protected status is prohibited. This policy of non-discrimination applies to all terms, conditions and privileges of employment including, but not limited to, hiring, employment training, placement, employee development, promotion, transfer, compensation and benefits.
The Company prohibits discrimination based on race, color, religion, sex, sexual orientation, gender identity, age, national origin, physical or mental disability, veteran status, or other legally protected status. This policy applies to all aspects of employment, including hiring, training, development, promotion, compensation, benefits, and termination.
Brokered Deposits and Pass-Through Deposit Insurance Limitations: Under FDICIA, a bank cannot accept brokered deposits unless it either (i) is "Well Capitalized" or (ii) is "Adequately Capitalized" and has received a written waiver from its primary federal banking regulator. For this purpose, "Well Capitalized" and "Adequately Capitalized" have the same definitions as in the Prompt Corrective Action regulations.
An increase in the Bank's deposit insurance assessment could have a material impact on the Company. Brokered Deposits and Pass-Through Deposit Insurance Limitations: Under FDICIA, a bank cannot accept brokered deposits unless it either (i) is "Well Capitalized" or (ii) is "Adequately Capitalized" and has received a written waiver from its primary federal banking regulator.
The ability of the Bank to pay dividends in the future is currently, and could be further, influenced by bank regulatory policies and capital guidelines.
The payment of dividends, depending on the financial condition of the Bank, could be deemed an unsafe or unsound practice. The ability of the Bank to pay dividends in the future is currently, and could be further, influenced by bank regulatory policies and capital guidelines.
If a banking organization's capital levels fall below the minimum requirements established by the Capital Rules, a bank or BHC will be expected to develop and implement a plan acceptable to its regulators to achieve adequate levels of capital within a reasonable period, and may be denied approval to acquire or establish additional banks or non-bank businesses, merge with other institutions or open branch facilities until such capital levels are achieved.
If a banking organization's capital levels fall below the minimum requirements established by the Capital Rules, a bank or BHC will be expected to develop and implement a plan acceptable to its regulators to achieve adequate levels of capital within a reasonable period, and may be denied approval to conduct various activities, including engaging in new activities or corporate acquisitions or establishing new branches, until such capital levels are achieved.
The policies of the FRB may have a material effect on our business, results of operations and financial condition. The nature of future monetary policies and the effect of such policies on the future business and earnings of the Company and the Bank cannot be predicted.
The nature of future monetary policies and the effect of such policies on the future business and earnings of the Company and the Bank cannot be predicted.
This fluctuation is predictable and has not had a materially adverse effect on the Bank. In addition to traditional banking services, the Company provides investment management and private banking services through First National Wealth Management, which is an operating division of the Bank.
In addition to traditional banking services, the Company provides investment management and private banking services through First National Wealth Management, an operating division of the Bank.
The rule takes a risk based approach, utilizing the CAMELS rating system, which is a supervisory rating The First Bancorp - 2024 Form 10-K - Page 6 system designed to take into account and reflect financial and operational risks that a bank may face, as one component of the assessment calculation along with seven additional metrics including capital adequacy, asset quality, earnings, brokered deposit reliance, and assets growth rate.
With respect to small banks such as the Bank (generally those banks with less than $10 billion of assets that have been insured for at least five years) assessments are calculated using a risk based approach, utilizing the CAMELS rating system, which is a supervisory rating system designed to take into account and reflect financial and operational risks that a bank may face, as one component of the assessment calculation along with seven additional metrics including capital adequacy, asset quality, earnings, brokered deposit reliance, and assets growth rate.
Cyber-Security Incident Disclosure: In November 2021, the U.S. bank regulatory agencies adopted a joint final rule regarding notification requirements for banking organizations related to significant computer security incidents.
Significantly undercapitalized or critically undercapitalized institutions are subject to more stringent limitations. The First Bancorp - 2025 Form 10-K - Page 5 Cyber-Security Incident Disclosure: In November 2021, the U.S. bank regulatory agencies adopted a joint final rule regarding notification requirements for banking organizations related to significant computer security incidents.
The Bank is actively reviewing the final rule in anticipation of the compliance date. In addition, if the FRB finds that the Bank is not well capitalized or well managed, we would be required to enter into an agreement with the FRB to comply with all applicable capital and management requirements and which may contain additional limitations or conditions.
In addition, if the FRB finds that the Bank is not well capitalized or well managed, the Company could also be prohibited from engaging directly or indirectly in corporate acquisitions or mergers or in new activities, and also could be required to enter into an agreement with the FRB to comply with all applicable capital and management requirements and which may contain additional limitations or conditions.
Large out-of-state banks continue to be a presence; adoption rates for online and mobile banking increased during the COVID-19 pandemic and further opened the market to new forms of competition. Credit unions have continued to expand their membership and the scope of banking services offered.
Large out-of-state banks continue to be a presence as do smaller, local credit unions offering similar products and services. Adoption rates for online and mobile banking increased during the COVID-19 pandemic and further opened the market to new forms of competition. The introduction and acceptance of various digital currencies represents an emerging form of competition for deposits and payment services.
As a company with securities listed on the NASDAQ, the Company is subject to the rules of the NASDAQ for listed companies. The Bank is subject to regulation and examination primarily by the OCC and is subject to the regulations of the Federal Deposit Insurance Corporation (the "FDIC").
As a company with securities listed on the NASDAQ, the Company is subject to the rules of the NASDAQ for listed companies.
Eligible full-time employees and part-time employees who are scheduled to work at least 30 hours per week are provided a flexible benefit plan which includes group life, health, short and long-term disability insurance. Other benefits include paid vacation, paid sick and personal time and a 401(k) defined contribution plan for eligible employees.
To attract and retain employees, the Company offers a comprehensive and competitive pay and benefits package. Eligible full-time employees and part-time employees scheduled to work at least 30 hours per week are provided access to a flexible benefits program, which includes group life, health, short and long-term disability insurance.
These methods are used in varying The First Bancorp - 2024 Form 10-K - Page 8 degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits.
These methods are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits. The policies of the FRB may have a material effect on our business, results of operations and financial condition.
Industry regulators published changes to the definition of brokered deposits that became effective April 1, 2021; the new standards have had no impact upon the Company's business. The Bank currently accepts brokered deposits. Real Estate Lending Standards: FDICIA requires the federal bank regulatory agencies to adopt uniform real estate lending standards.
Industry regulators published changes to the definition of brokered deposits that became effective April 1, 2021; the new standards have had no impact upon the Company's business. Further changes to the definition of brokered deposits have been proposed in the last twelve months and will be monitored by the Bank for potential impact. The Bank currently accepts brokered deposits.
Opportunities made available to employees may include participation in industry seminars, industry certificate programs, and advanced industry education at regional or national banking schools. The Company has also developed an in- house program targeted to the development of future leaders.
Training and Development: The Company emphasizes employee training and development as a means of supporting operational excellence, regulatory compliance, and effective risk management. Opportunities made available to employees may include participation in industry seminars, industry certificate programs, and advanced industry education at regional or national banking schools.
Recent investments include areas such as mobile & digital banking, commercial loan origination, and document imaging. The banking business in the Bank's Mid-Coast and Eastern Maine market area is subject to modest seasonal fluctuations typically consisting of lower deposits in the winter and spring and higher deposits in the summer and fall.
The banking business in the Bank's Mid-Coast and Eastern Maine market area is subject to modest seasonal fluctuations typically consisting of lower deposits in the winter and spring and higher deposits in the summer and fall. This fluctuation is predictable and has not had a materially adverse effect on the Bank.
Employee Engagement: The Company recognizes that employees who are involved in, enthusiastic about and committed to their work and workplace contribute meaningfully to the success of the Company. The Company solicits employee feedback through a confidential web portal and periodically surveys employees on various topics of interest.
The Company solicits employee feedback through a confidential web portal and periodically surveys employees on various topics of interest.
The Company participates in annual salary surveys to ensure wages are competitive in the local market, and since 1994 has offered a comprehensive, annual incentive compensation plan to all employees. Diversity and Inclusion: The Company believes that our people are our most valuable asset.
Additional benefits include paid vacation, paid sick and personal time, paid birthday off and a 401(k) defined contribution plan for eligible employees. The Company participates in annual salary surveys to ensure wages are competitive in the local market, and since 1994 has offered a comprehensive annual incentive compensation plan available to all employees.
The Company is a legal entity separate and distinct from the Bank. The primary source of funds to pay dividends on our common stock is dividends from the Bank. Various federal and state statutory provisions and regulations limit the amount of dividends the Bank may pay without regulatory approval.
The First Bancorp - 2025 Form 10-K - Page 3 Separation Between the Company and the Bank. The Company is a legal entity separate and distinct from the Bank. The primary source of funds to pay dividends on our common stock is dividends from the Bank.
Federal bank regulatory agencies have the authority to prohibit the Bank from engaging in unsafe or unsound practices in conducting its business. The payment of dividends, depending on the financial condition of the Bank, could be deemed an unsafe or unsound practice.
Various federal and state statutory provisions and regulations limit the amount of dividends the Bank may pay without regulatory approval. Federal bank regulatory agencies have the authority to prohibit the Bank from engaging in unsafe or unsound practices in conducting its business.
Leverage Capital Ratio: The regulations of the OCC require national banks to maintain a minimum "Leverage Capital Ratio" or ratio of "Tier 1 Capital" (as defined in the Risk-Based Capital Guidelines discussed in the following paragraphs) to Total Assets of 4.0%. Any bank experiencing or anticipating significant growth is expected to maintain capital well above the minimum levels.
Leverage Capital Ratio: The capital regulations impose on the Bank and the Company a minimum "Leverage Capital Ratio" or ratio of "Tier 1 Capital" (as defined in the Risk-Based Capital Guidelines discussed in the following paragraphs) to Total Assets of 4.0%. It is possible that banking regulators may increase minimum capital requirements should economic conditions worsen.
The FDIC has the power to adjust deposit insurance assessment rates at any time, and the Company is not able to predict the amount or timing of any adjustment. In October 2022 the FDIC announced a uniform deposit insurance premium increase of 2 basis points effective in the first quarter of 2023.
Assessment rates specific to the Bank are calculated quarterly based upon its balance sheet and performance metrics as of the prior quarter end. The FDIC has the power to adjust deposit insurance assessment rates at any time, and the Company is not able to predict the amount or timing of any adjustment.
Managers conduct periodic coaching meetings with all employees to review progress towards annual goals, and identify areas of opportunity or performance improvement. Formal performance evaluations are conducted semi-annually. Our Education & Training department includes a Development Associate position whose role is to ensure all employees are provided with development plans that meet their current and future career needs.
The First Bancorp - 2025 Form 10-K - Page 2 The Company has also developed an in- house program targeted to the development of future leaders. Managers conduct periodic coaching meetings with employees to review progress towards annual goals and identify areas of opportunity or performance improvement. Formal performance evaluations are conducted semi-annually.
First National Bank : The Bank emphasizes personal service, and its customers are primarily small businesses and individuals to whom the Bank offers a wide variety of services, including deposit accounts and consumer, commercial and mortgage loans. The Bank continually evolves its processes and adapts to new technologies.
First National Bank : The Bank offers traditional banking products & services including deposit accounts, cash management and payment processing solutions, and consumer, commercial and mortgage loans. Personal service and convenience is emphasized to a customer base consisting primarily of small businesses, government entities, non-profit organizations, and individuals located or residing within its markets.
If we fail to correct any such condition within a prescribed period, the FRB could order us to divest our banking subsidiaries or, in the alternative, to cease engaging in activities other than those closely related to banking under the BHC Act.
If we fail to correct any such condition within a prescribed period, the FRB could take additional enforcement actions, including but not limited to ordering us to divest the Bank. Dividend Restrictions.
Removed
Talent Acquisition: To effectively operate, the Company requires employees with a variety of skill sets including customer service delivery, analytical ability, leadership, sales acumen and technical expertise. To attract new employees, the Company considers qualified applicants from all sources. Additionally, to both attract and retain employees the Company offers a combination of competitive pay and benefits.
Added
The Bank continually evolves its processes and adapts to new technologies. Recent investments include areas such as mobile & digital banking, commercial loan origination, and document imaging.
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This policy also applies to such areas as educational assistance, employee layoff and recall, social and recreational programs, employee facilities and employee termination. The Bank has in place a written Affirmative Action program to achieve full utilization of minorities, individuals with disabilities, and women at all levels of employment and in all segments of the work force.
Added
Talent Acquisition: The Company’s success depends on attracting and retaining employees with a broad range of skills, including customer service, analytical capabilities, leadership, sales acumen and technical expertise. The Company recruits qualified candidates from all available sources and competes for talent primarily within its local and regional markets.
Removed
Through the ongoing development of this plan, we not only comply with appropriate government regulations but also strive to make the best personnel decisions for our Company and our communities. The First Bancorp - 2024 Form 10-K - Page 2 Professional Development: Employee development is emphasized and extensive training and development opportunities are provided.
Added
Our Education & Training department includes a Development Associate role dedicated to ensuring all employees are provided with development plans that meet their current and future career needs. Employee Engagement: The Company recognizes that employees who are involved in, enthusiastic about and committed to their work and workplace contribute meaningfully to the success of the Company.
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A confidential survey designed to measure employee engagement was conducted on the Company's behalf by a third party provider in the fourth quarter of 2023. Results indicated an above average level of engagement amongst the employee base. Succession Planning: The Company views succession planning as a priority and incorporates it into the strategic planning process.
Added
This year, the Company participated in the Best Places to Work in Maine program in which a confidential employee engagement survey was delivered. Results for the Company were all above benchmark and we ranked #3 in the large employer category of the program.
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Succession plans are updated annually for all management roles, and leverages the Company's various development programs to clearly identify both short and long-term successors for each position.
Added
While pleased with these results, the Company continues to evaluate employee feedback and identify opportunities to further enhance engagement. Succession Planning: The Company views succession planning as a priority and incorporates it into the strategic planning process. Succession plans are reviewed and updated annually for management roles, and are supported by the Company's development and leadership programs and initiatives.
Removed
"Financial in nature" activities include securities underwriting, dealing and market making; sponsoring mutual funds and investment companies; insurance underwriting and agency; merchant banking; and activities that the FRB, in consultation with the Secretary of the U.S. Treasury, determines to be financial in nature or incidental to such financial activity.
Added
These plans are designed to identify both short- and long-term successors to promote continuity of leadership and operational stability.
Removed
"Complementary activities" are activities that the FRB determines upon application to be complementary to a financial activity and do not pose a safety and soundness risk.
Added
The Bank is subject to regulation and examination primarily by the OCC and is subject to the regulations adopted by other federal agencies, including the Federal Deposit Insurance Corporation (the "FDIC") and the Consumer Financial Protection Bureau (the "CFPB").
Removed
FRB approval is not generally required for us to acquire a company (other than a bank holding company, bank or savings association) engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the FRB.
Added
As an FDIC-insured depository institution, the Bank is periodically rated for its compliance with the Community Reinvestment Act of 1977, as amended (the "CRA").
Removed
Prior FRB approval is required before we may acquire the beneficial ownership or control of more than 5% of the voting shares or substantially all of the assets of a bank holding company, bank or savings association.
Added
Generally speaking, a national bank, such as the Bank, is ordinarily permitted to pay dividends equivalent to the Bank’s current and undistributed prior earnings, provided the bank is adequately capitalized. However, other capital distributions by a bank require the prior approval of the OCC.
Removed
On October 24, 2023 the OCC, the FRB, and the FDIC issued a joint final rule to strengthen and modernize regulations implementing the CRA which had last had major revisions in 1995.
Added
Insolvency and Resolution of the Bank . The insolvency and resolution of the Bank would be governed by the Federal Deposit Insurance Act, not by federal bankruptcy law. The Federal Deposit Insurance Act imposed limits on the amounts of deposit insurance afforded to a depositor; deposit amounts in excess of these limits are deemed uninsured under the Act.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with technological change affecting the financial services industry, and increased costs due to efforts to keep pace with change, could have a material adverse effect on us.
Biggest changeFailure to successfully keep pace with technological change affecting the financial services industry, and increased costs due to efforts to keep pace with change, could have a material adverse effect on us. To date, there has been no material adverse effect on our business or operations due to failure of keeping pace with technological change.
We rely primarily on commercial and retail deposits and, to a lesser extent, brokered deposit renewals and rollovers, advances from the Federal Home Loan Bank of Boston (the "FHLB") and other secured and unsecured borrowings to fund our operations.
We rely primarily on commercial and retail deposits and, to a lesser extent, brokered deposit issuances, renewals and rollovers, advances from the Federal Home Loan Bank of Boston (the "FHLB") and other secured and unsecured borrowings to fund our operations.
The Company and Bank complied with the fully phased requirements well in advance of the completion date and continued to do so as of December 31, 2024. In July 2023 US bank regulators jointly published proposed rulemaking for Basel III Finalization, also referred to as Basel III Endgame or B3E.
The Company and Bank complied with the fully phased requirements well in advance of the completion date and continued to do so as of December 31, 2025. In July 2023 US bank regulators jointly published proposed rulemaking for Basel III Finalization, also referred to as Basel III Endgame or B3E.
The application of more stringent capital requirements could result in lower returns on equity, require the raising of more capital, or result in adverse regulatory actions or other consequences if we are unable to comply with such requirements.
The application of more stringent capital standards could result in lower returns on equity, require the raising of more capital, or result in adverse regulatory actions or other consequences if we are unable to comply with such standards.
The availability of qualified collateral on the Bank's balance sheet determines the level of advances available from FHLB and a deterioration in quality in the Bank's loan portfolio can adversely impact the availability of this source of funding, which could increase our funding costs and reduce our net interest income.
The availability of qualified collateral on the Bank's balance sheet determines the level of advances available from FHLB and a deterioration in quality in the Bank's loan portfolio can adversely impact the availability of this source of funding, which could increase our funding costs and reduce our net interest income. Lack of loan demand may adversely impact net interest income.
In addition, if we fall below the FDIC's thresholds to be considered "well capitalized", we will be unable to continue to roll over or renew brokered funds, and the interest rate we pay on deposits would be subject to restrictions.
In addition, if we fall below the FDIC's thresholds to be considered "well capitalized", we will be unable to issue new brokered deposits, continue to roll over or renew brokered funds, and the interest rate we pay on deposits in general would be subject to restrictions.
In addition, when underwriting a commercial or industrial loan, we may take a security interest in commercial real estate, and, in some instances upon a default by the borrower, we may foreclose on and take title to the property, which results in the incurrence of tax and other maintenance costs and which may lead to potential financial risks for us under applicable environmental laws.
In addition, when underwriting a commercial or industrial loan, we may take a security interest in commercial real estate, and, in some instances upon a default by the borrower, we may foreclose on and take title to the property, which results in added expense in the form of tax, insurance and other maintenance costs, and which may lead to potential financial risks for us under applicable environmental laws.
Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs, and may affect the activities in which we engage and the products that we offer. Our recent results may not be indicative of our future results.
Any potential future legislative or regulatory changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs, and may affect the activities in which we engage and the products that we offer. Our recent results may not be indicative of our future results.
Our common stock price can fluctuate as a result of many factors, some of which are beyond our control, including: • quarterly fluctuations in our operating and financial results; • operating results that vary from the expectations of investors; • changes in expectations as to our future financial performance, including financial estimates; The First Bancorp - 2024 Form 10-K - Page 16 • events negatively impacting the financial services industry which result in a general decline for the industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; • changes in accounting standards, policies, guidance, interpretations or principles; • general domestic economic and market conditions; and • declines in bank stock prices driven by macro-economic concerns.
Our common stock price can fluctuate as a result of many factors, some of which are beyond our control, including: • quarterly fluctuations in our operating and financial results; • operating results that vary from the expectations of investors; • changes in expectations as to our future financial performance, including financial estimates; • events negatively impacting the financial services industry which result in a general decline for the industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; • changes in accounting standards, policies, guidance, interpretations or principles; • general domestic economic and market conditions; and • declines in bank stock prices driven by macro-economic concerns.
In 2009, the Maine Legislature passed "An Act to Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary Foreclosures." This law provides for mediation of foreclosure of residential mortgages and borrowers may choose mediation in which parties must attend mediation sessions and evaluate foreclosure alternatives in good faith.
In 2009, the Maine Legislature passed "An Act to Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary Foreclosures." This law provides for mediation of foreclosure of residential mortgages and borrowers may choose mediation in which each party must attend court supervised mediation sessions and evaluate foreclosure alternatives in good faith.
An inability to raise funds through traditional deposits, brokered deposit renewals or rollovers, secured or unsecured borrowings, the sale of securities or loans or other sources could have a substantial negative effect on our liquidity.
An inability to raise funds through traditional deposits, brokered deposit issuance, renewal or rollover, secured or unsecured borrowings, the sale of securities or loans or other sources could have a substantial negative effect on our liquidity.
Federal and state laws and regulations govern numerous matters including: changes in the ownership or control of banks and bank holding companies; maintenance of adequate capital and the financial condition of a financial institution; permissible types, amounts and terms of extensions of credit and investments; permissible non-banking activities; the required level of reserves against deposits; and restrictions on dividend payments.
Federal and state laws and regulations govern numerous matters including but not limited to: changes in the ownership or control of banks and bank holding companies; maintenance of adequate capital and the financial condition of a financial institution; permissible types, amounts and terms of extensions of credit and investments; permissible non-banking activities; the required level of reserves against deposits; assessments for federal deposit insurance, and restrictions on dividend payments.
Specific examples of matters being evaluated as part of the investment decision or recommendation by certain investors and influencers include the business risks of climate The First Bancorp - 2024 Form 10-K - Page 17 change and the adequacy of companies’ responses to climate change, diversity of a company's management and/or board of directors, community involvement and charitable giving, and the inclusion of ESG factors in the determination of executive compensation.
Specific examples of matters being evaluated as part of the investment decision or recommendation by certain investors and influencers include the business risks of climate change and the adequacy of companies’ responses to climate change, diversity of a company's management and/or board of directors, community involvement and charitable giving, and the inclusion of ESG factors in the determination of executive compensation.
Interest rates are highly sensitive to many factors that are beyond our control, including general economic conditions, demand for loans, securities and deposits, and policies of various governmental and The First Bancorp - 2024 Form 10-K - Page 10 regulatory agencies and, in particular, the Board of Governors of the Federal Reserve System.
Interest rates are highly sensitive to many factors that are beyond our control, including general economic conditions, demand for loans, securities and deposits, and policies of various governmental and regulatory agencies and, in particular, the Board of Governors of the Federal Reserve System.
Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition could have a material adverse effect on us. ITEM 1B. Unresolved Staff Comments None
Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition could have a material adverse effect on us.
Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any future offerings, or the prices at which such offerings may be effected.
Because our decision to issue The First Bancorp - 2025 Form 10-K - Page 16 securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any future offerings, or the prices at which such offerings may be effected.
As a result, repayment of these loans may, to a greater extent than residential loans, be subject to adverse conditions in the real estate market or the broader economy. The First Bancorp - 2024 Form 10-K - Page 9 Our Allowance for Credit Losses may be insufficient and require additional provision from earnings.
As a result, repayment of these loans may, to a greater extent than residential loans, be subject to adverse conditions in the real estate market or the broader economy. Our Allowance for Credit Losses may be insufficient and require additional provision from earnings.
Natural disasters can disrupt our operations, result in damage to our properties, negatively impact the value of the collateral for our loans and have an adverse economic effect on the markets in which we operate, any of which could have a material adverse effect on our results of operations and financial condition.
The First Bancorp - 2025 Form 10-K - Page 13 Natural disasters can disrupt our operations, result in damage to our properties, negatively impact the value of the collateral for our loans and have an adverse economic effect on the markets in which we operate, any of which could have a material adverse effect on our results of operations and financial condition.
For the year ended December 31, 2024, the average monthly trading volume of our common stock was 341,788 shares, or approximately 3.07% of the average number of our outstanding common shares. Due to the limited trading volume in our common stock, the intraday spread between bid and ask prices of the shares can be quite high.
For the year ended December 31, 2025, the average monthly trading volume of our common stock was 426,747 shares, or approximately 3.80% of the average number of our outstanding common shares. Due to the limited trading volume in our common stock, the intraday spread between bid and ask prices of the shares can be quite high.
The inherent limitations of our system of internal controls include the use of judgment in decision-making that can be faulty; breakdowns can occur because of human error; and controls can be circumvented by individual acts or by collusion of two or more people.
The inherent limitations of our system of internal controls include the use of judgment in decision-making that can be faulty; breakdowns can occur because of The First Bancorp - 2025 Form 10-K - Page 11 human error; and controls can be circumvented by individual acts or by collusion of two or more people.
Our loan portfolio includes commercial, commercial real estate and commercial construction loans that may have higher risks than other types of loans. Our commercial, commercial real estate, and commercial construction loans at December 31, 2024 and 2023 were $970.9 million and $887.1 million , or 41.5% and 41.7% of total loans, respectively.
Our loan portfolio includes commercial, commercial real estate, and commercial construction loans that may have higher risks than other types of loans. Our commercial, commercial real estate, and commercial construction loans at December 31, 2025 and 2024 were $981.4 million and $970.9 million, or 41.0% and 41.5% of total loans, respectively.
Competition for the best people in most activities in which we are engaged can be intense, and we may not be able to retain or hire the people we want and/or need. In order to attract and retain qualified employees, we must compensate such employees at market levels. Typically, those levels have caused employee compensation to be our greatest expense.
Competition for the best people in most activities in which we are engaged can be intense, and we may not be able to retain or hire the people we want and/or need. In order to attract and retain qualified employees, we must compensate such employees at market levels.
The First Bancorp - 2024 Form 10-K - Page 14 Banking regulators and other supervisory authorities, investors and other stakeholders have increasingly viewed financial institutions as important in helping to address the risks related to climate change both directly and with respect to their customers.
Banking regulators and other supervisory authorities, investors and other stakeholders have increasingly viewed financial institutions as important in helping to address the risks related to climate change both directly and with respect to their customers.
In such cases, we may be compelled to modify the terms of the loan. In addition, the nature of these loans is such that they are generally less predictable and more difficult to evaluate and monitor.
In such cases, we The First Bancorp - 2025 Form 10-K - Page 8 may be compelled to modify the terms of the loan. In addition, the nature of these loans is such that they are generally less predictable and more difficult to evaluate and monitor.
If we are unable to continue to attract and retain qualified employees, or do so at increased rates necessary to maintain our competitive position, our performance, including our competitive position, could suffer, and, in turn, have a material adverse effect on us.
Typically, those levels have caused employee compensation to be our greatest operating expense. If we are unable to continue to attract and retain qualified employees, or do so at increased rates necessary to maintain our competitive position, our performance, including our competitive position, could suffer, and, in turn, have a material adverse effect on us.
Such security attacks can originate from a wide variety of sources, including persons who are involved with organized crime or who may be linked to terrorist organizations or hostile foreign governments.
Such security attacks can originate from a wide variety of sources, including persons who are involved with organized The First Bancorp - 2025 Form 10-K - Page 12 crime or who may be linked to terrorist organizations or hostile foreign governments.
Significant competition in the financial services industry may impact our results. We face substantial competition in all areas of our operations from a variety of different competitors, many of which are larger and have more financial resources than we do.
Significant competition in the financial services industry may impact our results. We face substantial competition in all areas of our operations from a variety of different competitors, many of which are larger and have more financial resources than we do and, in some cases, are not subject to the same regulatory restrictions as the Company and the Bank.
We compete with other providers of financial services such as commercial and savings banks, savings and loan associations, credit unions, money market and mutual funds, mortgage companies, asset managers, insurance companies and a wide array of other local, regional and national institutions which offer financial services. Mergers between financial institutions within Maine and in nearby states have added competitive pressure.
We compete with other providers of financial services such as commercial and savings banks, savings and loan associations, credit unions, money market and mutual funds, mortgage companies, asset managers, insurance companies and a wide array of other local, regional and national institutions which offer financial services. We face competitive pressure from multiple directions.
If we are unable to compete effectively, we will lose market share and our income generated from loans, deposits, and other financial products will decline. Risks Associated With Our Common Stock There may not be a robust trading market for our common stock.
Furthermore, mergers between financial institutions within Maine and in nearby states have added competitive pressure. If we are unable to compete effectively, we will lose market share and our income generated from loans, deposits, and other financial products will decline. Risks Associated With Our Common Stock There may not be a robust trading market for our common stock.
Our mortgage-backed bond portfolio may be subject to extension risk as interest rates rise, extending the average life of the bonds. As of December 31, 2024, we had $274.7 million and $369.9 million in available for sale and held to maturity investment securities, respectively.
Our mortgage-backed bond portfolio may be subject to extension risk as interest rates rise, extending the average life of the bonds. As of December 31, 2025, the Bank's investment portfolio had market values of $264.5 million and $356.1 million in available for sale and held to maturity investment securities, respectively.
In addition, in a weak economic environment, bank regulators may impose capital requirements that are more stringent than those required by applicable existing regulations.
In addition, in a weak economic environment, bank regulators may expect the Bank or the Company to adopt capital standards that are more stringent than those required by applicable existing regulations.
We are subject to claims and litigation that may impact our earnings and/or our reputation. From time to time, customers, vendors or other parties may make claims and take legal action against us.
From time to time, customers, vendors or other parties may make claims and take legal action against us.
The First Bancorp - 2024 Form 10-K - Page 11 Lack of loan demand may adversely impact net interest income. Loan demand in the Bank's market area may be limited during periods of weak economic conditions. This could have the greatest impact on the commercial loan portfolio.
Loan demand in the Bank's market area may be limited during periods of weak economic conditions. This could have the greatest impact on the commercial loan portfolio.
Risks Associated With Our Industry Our business has been and may continue to be adversely affected by conditions in the financial markets and economic conditions generally and by increased regulation. The onset of COVID-19 in the United States in early 2020 quickly plunged the US economy into its first recession since the Great Recession of 2008-2009.
Risks Associated With Our Industry We may be adversely affected by volatility in United States and global economic conditions and changes in fiscal, monetary, trade, and regulatory policies. The onset of COVID-19 in the United States in early 2020 quickly plunged the US economy into its first recession since the Great Recession of 2008-2009.
Liquidity & Interest Rate Risks Changes in interest rates could adversely affect our net interest income and profitability. Our earnings and cash flows are largely dependent upon our net interest income.
The First Bancorp - 2025 Form 10-K - Page 9 Liquidity & Interest Rate Risks Changes in interest rates have and could continue to adversely affect our net interest income and profitability. Our earnings and cash flows are largely dependent upon our net interest income.
While the Company is not aware of any such events, remediation of any identified limitations may be ineffective in improving internal controls. The First Bancorp - 2024 Form 10-K - Page 12 We continually encounter technological change that may be difficult (costly) to keep up with.
While the Company is not aware of any such events, remediation of any identified limitations may be ineffective in improving internal controls. We continually encounter technological change that may be difficult (costly) to keep up with. The financial services industry is continually undergoing technological change with frequent introductions of new technology driven products and services.
Our future success depends, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. Our largest competitors have substantially greater resources to invest in technological improvements.
The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs. Our future success depends, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations.
If customers move money out of bank deposits and into other investments, we could lose a relatively low-cost source of funds, increasing our funding costs and reducing our net interest income and net income. Advances from the FHLB are typically a reliable source of funding and often less expensive than other types of wholesale funding.
If The First Bancorp - 2025 Form 10-K - Page 10 customers move money out of bank deposits and into other investments, we could lose a relatively low-cost source of funds, increasing our funding costs and reducing our net interest income and net income.
As the severity level of any disruption increases, it is more likely to exacerbate the adverse effects of difficult market conditions on us and others in the financial services industry. Economic risks in the United States and abroad may adversely affect our financial condition and results.
As the severity level of any disruption increases, it is more likely to exacerbate the adverse effects of difficult market conditions on us and others in the financial services industry. The economy in the United States and globally has experienced volatility in recent years and may continue to experience some level of volatility for the foreseeable future.
If implemented in its current form, B3E could have unintended consequences on regional and community banks whose total assets are below threshold, such as the Bank, and result in lower returns on equity, require additional capital, limit lending activities, or limit distributions such as dividends.
The proposal significantly altered the regulatory capital regime for US banks, generally increasing required capital levels for banks with $100 billion or more in assets with potential for unintended consequences on regional and community banks whose total assets are below threshold, such as the Bank, which could result in lower returns on equity, require additional capital, limit lending activities, or limit distributions such as dividends.
Any failure, interruption or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan, and other systems.
We rely heavily on communications and information systems to conduct our business, serving both internal and customer constituencies, and substantial investment has been made in these systems in recent years. Any failure, interruption or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan, and other systems.
Since the introduction of EMV The First Bancorp - 2024 Form 10-K - Page 13 or Chip cards, we have had the ability to charge back fraudulent transactions to the acquiring merchant if that merchant does not have an EMV capable terminal.
Since the introduction of EMV or Chip cards, we have had the ability to charge back fraudulent transactions to the acquiring merchant if that merchant does not have an EMV capable terminal. In the normal course of business the Bank issues EMV/Chip debit cards to its customers to keep this risk as low as possible.
In the normal course of business the Bank issues EMV/Chip debit cards to its customers to keep this risk as low as possible. Since most terminals are now EMV compliant, we have added processing rules to reject any transactions presented on our customers' cards with only magnetic stripe (fall back) data.
Since most terminals are now EMV compliant, we have added processing rules to reject any transactions presented on our customers' cards with only magnetic stripe (fall back) data. We are subject to claims and litigation that may impact our earnings and/or our reputation.
Bank holding companies and nationally chartered banks operate in a highly regulated environment and are subject to supervision and examination by various regulatory agencies. The cost of compliance with regulatory requirements may adversely affect our results of operations or financial condition.
We operate in a highly regulated environment and may be adversely affected by changes in law and regulations. Bank holding companies and national banks operate in a highly regulated environment and are subject to supervision and examination by various regulatory agencies, as discussed earlier.
To date, there has been no material adverse effect on our business or operations due to failure of keeping pace with technological change. As a result of recent innovations related to artificial intelligence ("AI"), the Bank has created a task force to analyze current and future use cases for AI to ensure it is used effectively and securely.
As a result of recent innovations related to generative artificial intelligence ("AI"), the Bank has established a cross-functional task force to analyze current and future use cases for AI and to promote effective and secure implementation. The task force has developed a policy to govern the permissible use of AI tools.
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The financial services industry is continually undergoing technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs.
Added
Advances from the FHLB are typically a reliable source of funding and often less expensive than other types of wholesale funding.
Removed
We are subject to security, transactional and operational risks relating to the use of technology that could damage our reputation and our business. We rely heavily on communications and information systems to conduct our business, serving both internal and customer constituencies, and substantial investment has been made in these systems in recent years.
Added
Our largest competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers.
Removed
The financial condition and performance of the Company and the Bank may be affected by general business and economic conditions in the United States and, to a lesser extent, abroad.
Added
Currently employees have access to generative AI applications for limited productivity and research purposes. The tools are not integrated into the Bank's core systems, automated workflows, underwriting, fraud decisioning compliance monitoring, or other customer-facing processes. The Bank does not intentionally input customer data into external generative AI platforms.
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These conditions include short-term and long-term interest rates, inflation, money supply, political issues, geopolitical events, legislative and regulatory changes, fluctuations in both debt and equity capital markets, broad trends in industry and finance, unemployment and investor confidence, all of which are beyond our control.
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Traditional machine-learning capabilities remain embedded within certain long-standing third-party banking applications, consistent with industry practice. The Bank continues to evaluate potential operational, regulatory, data security, and other opportunities and risks associated with AI technologies. We are subject to security, transactional and operational risks relating to the use of technology that could damage our reputation and our business.
Removed
Economic concerns, including inflation and inflation remediation efforts have been heightened as a result of the pandemic, and deterioration in any of these conditions or other future events that we are unable to predict, could result in increases in loan delinquencies and non-performing assets, decreases in loan collateral values, the value of our investment portfolio and demand for our products and services.
Added
Unfavorable or uncertain economic conditions can be caused by declines in economic growth, business activity, or investor or business confidence; limitations on the availability of or increases in the cost of credit and capital; increases in inflation or changes in interest rates; uncertainties regarding fiscal and monetary policies; the timing and impact of changing governmental policies, including changes in guidance and interpretation by regulatory authorities; governmental shutdowns, changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; supply chain disruptions; consumer spending; employment levels; labor shortages; challenging labor market conditions; wage stagnation; energy prices; home prices; commercial property values; bankruptcies or a default by a significant market participant or class of counterparties; fluctuations in equity, commodity, and futures prices; the implied volatility of interest rates and credit spreads; natural disasters; climate change; epidemics; pandemics; terrorist attacks; acts of war; or a combination of these or other factors.
Removed
Higher credit or collateral related losses, or decreases in the value of our investment portfolio or demand for our products and services, could negatively impact our financial condition or results of operations. We operate in a highly regulated environment and may be adversely affected by changes in law and regulations.
Added
The First Bancorp - 2025 Form 10-K - Page 14 Volatile business and economic conditions could have adverse effects on our business, including but not limited to the following: • investors may have less confidence in the equity markets in general and in financial services industry stocks in particular, which could place downward pressure on our stock price and resulting market valuation; • increased cost of debt capital; or decreased or no access to credit markets; • economic and market developments may further affect consumer and business confidence levels and may cause declines in credit usage and adverse changes in payment patterns, causing increases in delinquencies and default rates; • our ability to assess the creditworthiness of our customers may be impaired if the criteria and approaches we use to select, manage, and underwrite loans become less predictive of future behaviors; • we could suffer decreases in demand for loans or other financial products and services or decreased deposits or other investments in accounts with us; • competition in the financial services industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions or otherwise; and • the value of loans and other assets or the collateral securing loans may decrease.
Removed
The new administration elected to the lead the executive branch of the federal government could seek to make changes in the regulatory framework which may or may not be beneficial to the Company.
Added
The cost of compliance with regulatory requirements may adversely affect our results of operations or financial condition.
Removed
The First Bancorp - 2024 Form 10-K - Page 15 The Dodd-Frank Act created the Consumer Financial Protection Bureau and tightened capital standards, and continues to result in new laws and regulations that may impact our revenues or increase our costs of operations.
Added
The regulatory framework may change over time based upon economic conditions, legislative or executive branch initiatives, or other factors and these changes may or may not be beneficial to the Company or the Bank. Basel III Capital Rules may increase our capital requirements or otherwise limit future activity.
Removed
The Dodd-Frank Act significantly changed the current bank regulatory structure and affected the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies.
Added
The 2023 B3E proposal was ultimately withdrawn, and a new proposal is expected in 2026 with likely implementation in 2027. The Company and Bank will continue to monitor and assess any changes.
Removed
The CFPB has broad rule-making authority for a wide range of consumer protection matters that apply to all banks and savings institutions, including the authority to prohibit "unfair, deceptive or abusive" acts and practices.
Added
Large out-of-state banks maintain a growing presence in our primary market, offering both brick-and-mortar branch networks and sophisticated mobile and digital platforms.
Removed
The CFPB's authority to prescribe rules governing the provision of consumer financial products and services could result in rules and regulations that reduce the profitability of such products or services, or impose new disclosure or substantive requirements on us that could increase the cost to us of providing such products and services.
Added
At the same time, smaller community banks and local credit unions compete for the same customer base by offering similar banking products and services, often with a The First Bancorp - 2025 Form 10-K - Page 15 similarly personalized approach. The introduction and growing acceptance of digital currencies represents an emerging form of competition for deposits and payment services.
Removed
The Dodd-Frank Act also weakens the federal pre-emption rules that have been applicable to national banks and federal savings associations, and gives state attorneys general the ability to enforce federal consumer protection laws, which could increase our operating costs. Basel III Capital Rules may limit future activity.
Removed
The proposal significantly alters the regulatory capital regime for US banks, generally increasing required capital levels for banks with $100 billion or more in assets, however, the proposal is expected to be abandoned or substantially altered by the new executive branch leadership .

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+1 added−1 removed12 unchanged
Biggest changeThe Company maintains a robust vendor management program to oversee and identify material risks stemming from third-party service providers. Information technology staff regularly participates in relevant education opportunities and attends industry events that include cybersecurity matters.
Biggest changeThe Company maintains a robust third party risk management program to oversee and identify material risks stemming from third-party service providers. Information technology staff regularly participates in relevant education opportunities and attends industry events that include cybersecurity matters. The Bank is a member of the Financial Services Information Sharing and Analysis Center ("FS-ISAC").
Information security matters also fall within the scope of periodic examinations by the Bank's primary regulator, the Office of the Comptroller of the Currency ("OCC"). The First Bancorp - 2024 Form 10-K - Page 18 Included in our mitigation strategy is a comprehensive cybersecurity insurance policy.
Information security matters also fall within the scope of periodic examinations by the Bank's primary regulator, the Office of the Comptroller of the Currency ("OCC"). Included in our mitigation strategy is a comprehensive cybersecurity insurance policy.
Information security training is required for all employees no less than annually. To assist with its information security programs, the Company engages with multiple third-party providers and specialists, including firms with personnel credentialed by internationally recognized organizations such as ISC2, the SANS Institute, and ISACA.
To assist with its information security programs, the Company engages with multiple third-party providers and specialists, including firms with personnel credentialed by internationally recognized organizations such as ISC2, the SANS Institute, and ISACA.
Minutes from each ERM session are reported to the Audit Committee of the Board, and the CIO provides information security updates at each meeting of the Board.
Minutes from each ERM session are reported to the Audit Committee of the Board, and the CIO provides information security updates at each meeting of the Board. The First Bancorp - 2025 Form 10-K - Page 18
Removed
The Bank is a member of the Financial Services Information Sharing and Analysis Center ("FS-ISAC") and is a participant in the Federal Financial Institutions Examination Council ("FFFIEC") Cybersecurity Assessment Tool ("CAT"). The Bank has plans to move to a new cybersecurity assessment tool in 2025 as the FFIEC is sunsetting the CAT.
Added
In 2025 we utilized the National Institute of Standards and Technology ("NIST") Cybersecurity Framework ("CSF") as replacement for the sunsetted Federal Financial Institutions Examination Council ("FFIEC") Cybersecurity Assessment Tool ("CAT"). Information security training is required for all employees no less than annually.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeNone of these proceedings is expected to have a material effect on the financial condition of the Company or of the Bank.
Biggest changeNone of these proceedings is expected to have a material effect on the financial condition of the Company or of the Bank. ITEM 4. Mine Safety Disclosures Not applicable.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+2 added−0 removed3 unchanged
Biggest changeRepurchase of Shares and Use of Proceeds The Company does not currently have an active share repurchase program, nor does it have any active trading plans. In the absence of any programs or plans, share repurchase activity is typically limited and consists of shares repurchased from employees for purposes of paying tax obligations on equity grants that have vested.
Biggest changeIn the absence of any programs or plans, share repurchase activity is typically limited and consists of shares repurchased from employees for purposes of paying tax obligations on equity grants that have vested.
ITEM 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Market Information and Holders of Record Shares of the Company's common stock trade on NASDAQ under the symbol "FNLC". The last transaction in the Company's stock on NASDAQ during 2024 was on December 31 at $27.35 per share.
ITEM 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Market Information and Holders of Record Shares of the Company's common stock trade on NASDAQ under the symbol "FNLC". The last transaction in the Company's stock on NASDAQ during 2025 was on December 31 at $26.44 per share.
The First Bancorp - 2024 Form 10-K - Page 20 Performance Graph Set forth below is a line graph comparing the five-year cumulative total return of $100.00 invested in the Company's common stock ("FNLC"), assuming reinvestment of all cash dividends and retention of all stock dividends, with a comparable amount invested in the Standard & Poor's 500 Index ("S&P 500") and the NASDAQ Combined Bank Index ("NASD Bank").
The First Bancorp - 2025 Form 10-K - Page 20 Performance Graph Set forth below is a line graph comparing the five-year cumulative total return of $100.00 invested in the Company's common stock ("FNLC"), assuming reinvestment of all cash dividends and retention of all stock dividends, with a comparable amount invested in the Russell 2000 Index ("Russell 2000") and the NASDAQ Combined Bank Index ("NASD Bank").
As of February 20, 2025, there were 2,274 stockholders of record of our common stock. There are no warrants outstanding with respect to the Company's common stock and the Company has no securities outstanding which are convertible into common equity.
As of February 19, 2026, there were 2,338 stockholders of record of our common stock. There are no warrants outstanding with respect to the Company's common stock and the Company has no securities outstanding which are convertible into common equity.
The Company made the following repurchases of its common stock during the year ended December 31, 2024: Month Shares Purchased Average Price Per Share Total shares purchased as part of publicly announced repurchase plans Maximum number of shares that may be purchased under the plans January 2024 8,031 $ 26.39 — — February 2024 — — — — March 2024 — — — — April 2024 — — — — May 2024 — — — — June 2024 — — — — July 2024 — — — — August 2024 — — — — September 2024 — — — — October 2024 — — — — November 2024 — — — — December 2024 — — — — 8,031 $ 26.39 — — Unregistered Sales of Equity Securities None Securities Authorized for Issuance Under Equity Compensation Plans Please see Item 12.
The Company made the following repurchases of its common stock during the year ended December 31, 2025: Month Shares Purchased Average Price Per Share Total shares purchased as part of publicly announced repurchase plans Maximum number of shares that may be purchased under the plans January 2025 10,039 $ 25.74 — — February 2025 745 25.73 — — March 2025 — — — — April 2025 — — — — May 2025 — — — — June 2025 — — — — July 2025 — — — — August 2025 — — — — September 2025 — — — — October 2025 — — — — November 2025 — — — — December 2025 — — — — 10,784 $ 25.74 — — Unregistered Sales of Equity Securities None Securities Authorized for Issuance Under Equity Compensation Plans Please see Item 12.
Dividend Policy The Board declared a quarterly dividend of $0.35 per share on the Company's common stock for the first quarter of the year ended December 31, 2024 and quarterly dividends of $0.36 per share on the Company's common stock for each of the second, third and fourth quarters of the year ended December 31, 2024, resulting in total dividends for the year ended December 31, 2024 of $15.8 million.
Dividend Policy The Board declared a quarterly dividend of $0.36 per share on the Company's common stock for the first quarter of the year ended December 31, 2025 and quarterly dividends of $0.37 per share on the Company's common stock for each of the second, third and fourth quarters of the year ended December 31, 2025, resulting in total dividends for the year ended December 31, 2025 of $16.3 million.
The NASD Bank index is a capitalization-weighted index designed to measure the performance of all NASDAQ stocks in the banking sector. 2019 2020 2021 2022 2023 2024 FNLC $100.00 $88.44 $114.31 $113.83 $113.17 $116.01 S&P 500 $100.00 $118.39 $152.34 $124.72 $157.47 $196.84 NASD Bank $100.00 $92.50 $132.19 $107.92 $104.21 $125.55 The First Bancorp - 2024 Form 10-K - Page 21 ITEM 6.
The NASD Bank index is a capitalization-weighted index designed to measure the performance of all NASDAQ stocks in the banking sector. 2020 2021 2022 2023 2024 2025 FNLC $100.00 $129.25 $128.71 $127.96 $131.17 $134.29 Russell 2000 $100.00 $114.78 $91.30 $106.71 $119.00 $134.23 NASD Bank $100.00 $142.91 $116.67 $112.66 $135.73 $145.32 The First Bancorp - 2025 Form 10-K - Page 21 ITEM 6.
Added
The First Bancorp - 2025 Form 10-K - Page 19 Repurchase of Shares and Use of Proceeds The Company does not currently have an active share repurchase program, nor does it have any active trading plans.
Added
The Russell 2000 is an index of small-cap U.S. stocks in which the Company is included.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

149 edited+14 added−15 removed109 unchanged
Biggest changeThe following table summarizes the loan portfolio, by class, as of December 31, 2024 and 2023: As of December 31, Dollars in thousands 2024 2023 Commercial Real Estate Owner Occupied $ 358,588 15.3 % $ 314,819 14.8 % Real Estate Non-Owner Occupied 403,899 17.3 % 390,167 18.3 % Construction 99,717 4.3 % 88,673 4.2 % C&I 365,817 15.6 % 315,026 14.8 % Multifamily 108,732 4.6 % 93,476 4.4 % Agriculture 52,219 2.2 % 45,230 2.1 % Municipal 61,827 2.6 % 51,423 2.4 % Residential Term 710,807 30.4 % 674,855 31.7 % Construction 35,481 1.5 % 32,358 1.5 % Home Equity Revolving and Term 123,063 5.3 % 104,026 4.9 % Consumer 20,790 0.9 % 19,401 0.9 % Total loans $ 2,340,940 100.0 % $ 2,129,454 100.0 % The First Bancorp - 2024 Form 10-K - Page 35 The following table sets forth certain information regarding the contractual maturities of the Bank's loan portfolio as of December 31, 2024: Dollars in thousands 1 - 5 Years 5 - 10 Years > 10 Years Total Commercial Real Estate Owner Occupied $ 305 $ 62,927 $ 34,585 $ 260,771 $ 358,588 Real Estate Non-Owner Occupied — 45,160 48,560 310,179 403,899 Construction — 33,653 3,713 62,351 99,717 C&I 1,101 223,219 56,878 84,619 365,817 Multifamily — 14,022 688 94,022 108,732 Agriculture 14 13,470 11,824 26,911 52,219 Municipal — 26,794 14,512 20,521 61,827 Residential Term — 26,317 31,795 652,695 710,807 Construction 220 5,223 454 29,584 35,481 Home Equity Revolving and Term 774 12,787 6,148 103,354 123,063 Consumer 5,933 7,616 2,102 5,139 20,790 Total loans $ 8,347 $ 471,188 $ 211,259 $ 1,650,146 $ 2,340,940 The following table provides a listing of loans, by class, between variable and fixed rates as of December 31, 2024: Fixed-Rate Adjustable-Rate Total Dollars in thousands Amount % of total Amount % of total Amount % of total Commercial Real Estate Owner Occupied $ 51,553 2.2 % $ 307,035 13.1 % $ 358,588 15.3 % Real Estate Non-Owner Occupied 107,995 4.6 % 295,904 12.7 % 403,899 17.3 % Construction 32,707 1.4 % 67,010 2.9 % 99,717 4.3 % C&I 146,275 6.2 % 219,542 9.4 % 365,817 15.6 % Multifamily 7,935 0.3 % 100,797 4.3 % 108,732 4.6 % Agriculture 8,932 0.4 % 43,287 1.8 % 52,219 2.2 % Municipal 61,604 2.6 % 223 0.0 % 61,827 2.6 % Residential Term 469,574 20.1 % 241,233 10.3 % 710,807 30.4 % Construction 16,455 0.7 % 19,026 0.8 % 35,481 1.5 % Home Equity Revolving and Term 20,700 0.9 % 102,363 4.4 % 123,063 5.3 % Consumer 14,544 0.6 % 6,246 0.3 % 20,790 0.9 % Total loans $ 938,274 40.0 % $ 1,402,666 60.0 % $ 2,340,940 100.0 % Loan Concentrations As of December 31, 2024 and 2023, the Bank had two concentrations of loans in two particular industries that exceeded 10% of its total loan portfolio: (1) loans to lessors of residential buildings and dwellings, totaling $260.7 million, or 11.14%, and $217.5 million, or 10.21%, of total loans, respectively; and (2) loan to hotels (except Casino hotels) and motels, totaling $242.1 million, or 10.34%, and $231.5 million, or 10.87%, of total loans, respectively.
Biggest changeThe following table summarizes the loan portfolio, by class, as of December 31, 2025 and 2024: As of December 31, Dollars in thousands 2025 2024 Commercial Real Estate Owner Occupied $ 378,263 15.8 % $ 358,588 15.3 % Real Estate Non-Owner Occupied 409,177 17.1 % 403,899 17.3 % Construction 35,025 1.5 % 99,717 4.3 % C&I 376,907 15.7 % 365,817 15.6 % Multifamily 158,910 6.6 % 108,732 4.6 % Agriculture 48,145 2.0 % 52,219 2.2 % Municipal 52,074 2.2 % 61,827 2.6 % Residential Term 739,188 30.9 % 710,807 30.4 % Construction 35,332 1.5 % 35,481 1.5 % Home Equity Revolving and Term 142,219 5.9 % 123,063 5.3 % Consumer 18,869 0.8 % 20,790 0.9 % Total loans $ 2,394,109 100.0 % $ 2,340,940 100.0 % The First Bancorp - 2025 Form 10-K - Page 35 The following table sets forth certain information regarding the contractual maturities of the Bank's loan portfolio as of December 31, 2025: Dollars in thousands 1 - 5 Years 5 - 10 Years > 10 Years Total Commercial Real Estate Owner Occupied $ 5,469 $ 116,990 $ 30,388 $ 225,416 $ 378,263 Real Estate Non-Owner Occupied 14,890 93,835 30,041 270,411 409,177 Construction 701 20,148 4,361 9,815 35,025 C&I 88,502 172,709 28,719 86,977 376,907 Multifamily 16,192 38,000 5,125 99,593 158,910 Agriculture 2,413 19,250 8,348 18,134 48,145 Municipal 8,628 11,770 12,535 19,141 52,074 Residential Term 1,758 63,687 39,047 634,696 739,188 Construction 1,876 5,878 — 27,578 35,332 Home Equity Revolving and Term 5,336 11,372 8,001 117,510 142,219 Consumer 7,017 6,112 1,094 4,646 18,869 Total loans $ 152,782 $ 559,751 $ 167,659 $ 1,513,917 $ 2,394,109 The following table provides a listing of loans, by class, between variable and fixed rates as of December 31, 2025: Fixed-Rate Adjustable-Rate Total Dollars in thousands Amount % of total Amount % of total Amount % of total Commercial Real Estate Owner Occupied $ 69,607 2.9 % $ 308,656 12.9 % $ 378,263 15.8 % Real Estate Non-Owner Occupied 112,577 4.7 % 296,600 12.4 % 409,177 17.1 % Construction 20,054 0.9 % 14,971 0.6 % 35,025 1.5 % C&I 146,438 6.1 % 230,469 9.6 % 376,907 15.7 % Multifamily 26,859 1.1 % 132,051 5.5 % 158,910 6.6 % Agriculture 9,533 0.4 % 38,612 1.6 % 48,145 2.0 % Municipal 51,875 2.2 % 199 0.0 % 52,074 2.2 % Residential Term 465,586 19.5 % 273,602 11.4 % 739,188 30.9 % Construction 10,180 0.4 % 25,152 1.1 % 35,332 1.5 % Home Equity Revolving and Term 23,744 1.0 % 118,475 4.9 % 142,219 5.9 % Consumer 11,752 0.5 % 7,117 0.3 % 18,869 0.8 % Total loans $ 948,205 39.7 % $ 1,445,904 60.3 % $ 2,394,109 100.0 % Loan Concentrations As of December 31, 2025, the Bank had one concentration of loans in one particular industry that exceeded 10% of its total loan portfolio: (1) loans to lessors of residential buildings and dwellings, totaling $266.1 million, or 11.11%.
The primary factors considered in evaluating whether a loss should be recognized include: (a) the length of time and extent to which the fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, (d) the volatility of the securities market price, (e) the intent and ability of the Company to retain the investment for a The First Bancorp - 2024 Form 10-K - Page 33 period of time sufficient to allow for recovery, which may be at maturity, and (f) any other information and observable data considered relevant in determining whether full collection of amounts contractually due will be realized.
The primary factors considered in evaluating whether a loss should be recognized include: (a) the length of time and extent to which the fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, (d) the volatility of the securities market price, (e) the intent and ability of the Company to retain the investment for a The First Bancorp - 2025 Form 10-K - Page 33 period of time sufficient to allow for recovery, which may be at maturity, and (f) any other information and observable data considered relevant in determining whether full collection of amounts contractually due will be realized.
Use of Non-GAAP Financial Measures Certain information in release Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Report contains financial information determined by methods other than in accordance with GAAP.
Use of Non-GAAP Financial Measures Certain information in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Report contains financial information determined by methods other than in accordance with GAAP.
The First Bancorp - 2024 Form 10-K - Page 36 Credit Risk Management and Allowance for Credit Losses on Loans Upon adoption of ASC 326, the CECL standard, in 2023, the Company replaced the incurred loss model that recognized loan losses when it became probable that a credit loss would be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased.
The First Bancorp - 2025 Form 10-K - Page 36 Credit Risk Management and Allowance for Credit Losses on Loans Upon adoption of ASC 326, the CECL standard, in 2023, the Company replaced the incurred loss model that recognized loan losses when it became probable that a credit loss would be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased.
The table below presents the composition of OREO at December 31, 2024 and 2023: As of December 31, Dollars in thousands 2024 2023 Residential Term $ 208 $ — Construction — — Home equity line of credit — — Consumer — — Total $ 208 $ — Related Allowance Residential Term 35 — Construction — — Home equity line of credit — — Consumer — — Total $ 35 $ — Net Value Residential Term 173 — Construction — — Home equity line of credit — — Consumer — — Total $ 173 $ — Funding, Liquidity and Capital Resources Liquidity Liquidity is the ability of a financial institution to meet maturing liability obligations, depositor withdrawal requests, and customer loan demand.
The table below presents the composition of OREO at December 31, 2025 and 2024: As of December 31, Dollars in thousands 2025 2024 Residential Term $ — $ 208 Construction — — Home equity line of credit — — Consumer — — Total $ — $ 208 Related Allowance Residential Term — 35 Construction — — Home equity line of credit — — Consumer — — Total $ — $ 35 Net Value Residential Term — 173 Construction — — Home equity line of credit — — Consumer — — Total $ — $ 173 Funding, Liquidity and Capital Resources Liquidity Liquidity is the ability of a financial institution to meet maturing liability obligations, depositor withdrawal requests, and customer loan demand.
Our lending activities include work with solar farm projects and The First Bancorp - 2024 Form 10-K - Page 46 research laboratories working on climate change issues, we hold several green bonds in the investment portfolio, and our wealth management division works with clients who seek to direct their investments to be compatible with responsible ESG investing objectives.
Our lending activities include work with solar farm projects and The First Bancorp - 2025 Form 10-K - Page 46 research laboratories working on climate change issues, we hold several green bonds in the investment portfolio, and our wealth management division works with clients who seek to direct their investments to be compatible with responsible ESG investing objectives.
Government-sponsored enterprises have minimal credit risk, as these agencies enterprises play a vital role in the nation's financial markets. Management believes that the unrealized losses at December 31, 2024 were attributable to changes in current market yields and spreads since the date the underlying securities were purchased, and that 100% of the amounts contractually due will be realized.
Government-sponsored enterprises have minimal credit risk, as these agencies enterprises play a vital role in the nation's financial markets. Management believes that the unrealized losses at December 31, 2025 were attributable to changes in current market yields and spreads since the date the underlying securities were purchased, and that 100% of the amounts contractually due will be realized.
The subsidiary may pay dividends to its parent out of so much of its net profits as the Bank's directors deem appropriate, subject to the limitation that the total of all dividends declared by the Bank in any calendar year may not exceed the total of its net profits of that year combined The First Bancorp - 2024 Form 10-K - Page 44 with its retained net profits of the preceding two years.
The subsidiary may pay dividends to its parent out of so much of its net profits as the Bank's directors deem appropriate, subject to the limitation that the total of all dividends declared by the Bank in any calendar year may not exceed the total of its net profits of that year combined with its The First Bancorp - 2025 Form 10-K - Page 44 retained net profits of the preceding two years.
Goodwill is evaluated annually for possible impairment under the provisions of FASB ASC Topic 350, “Intangibles – Goodwill and Other”. As of December 31, 2024, in accordance with Topic 350, the Company completed its annual review of goodwill and determined there has been no impairment. The Bank also carries $125,000 in goodwill for a de minimis transaction in 2001.
Goodwill is evaluated annually for possible impairment under the provisions of FASB ASC Topic 350, “Intangibles – Goodwill and Other”. As of December 31, 2025, in accordance with Topic 350, the Company completed its annual review of goodwill and determined there has been no impairment. The Bank also carries $125,000 in goodwill for a de minimis transaction in 2001.
The Company periodically evaluates its investment in FHLBB and FRBB stock for impairment based on, among other factors, the capital adequacy of the Banks and their overall financial condition. No impairment losses have been recorded through December 31, 2024. The Bank will continue to monitor its investment in these restricted equity securities.
The Company periodically evaluates its investment in FHLBB and FRBB stock for impairment based on, among other factors, the capital adequacy of the Banks and their overall financial condition. No impairment losses have been recorded through December 31, 2025. The Bank will continue to monitor its investment in these restricted equity securities.
This cost will be amortized over an average of seven years, adding approximately $87,000 to pre-tax operating costs per year. Goodwill On December 11, 2020, the Bank completed the purchase of a branch at 1B Belmont Avenue in Belfast, Maine, from Bangor Savings Bank ("Bangor Savings").
This cost will be amortized over an average of seven years, adding approximately $200,000 to pre-tax operating costs per year. Goodwill On December 11, 2020, the Bank completed the purchase of a branch at 1B Belmont Avenue in Belfast, Maine, from Bangor Savings Bank ("Bangor Savings").
The Company has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity, and believes that 100% of the amounts contractually due will be realized. The First Bancorp - 2024 Form 10-K - Page 34 AFS Asset-backed securities.
The Company has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity, and believes that 100% of the amounts contractually due will be realized. The First Bancorp - 2025 Form 10-K - Page 34 AFS Asset-backed securities.
The First Bancorp - 2024 Form 10-K - Page 39 ACL for Unfunded Commitments Adoption of CECL resulted in an increase in the Company's ACL for unfunded commitments. Our modeling methodology applies the same class level credit loss factors used in the ACL for loans model to applicable classes of unfunded commitments to determine an appropriate ACL level.
The First Bancorp - 2025 Form 10-K - Page 39 ACL for Unfunded Commitments Adoption of CECL resulted in an increase in the Company's ACL for unfunded commitments. Our modeling methodology applies the same class level credit loss factors used in the ACL for loans model to applicable classes of unfunded commitments to determine an appropriate ACL level.
Comparison of the Years Ended December 31, 2023 and 2022 A discussion of changes in our results of operations during the year ended December 31, 2023 compared to the year ended December 31, 2022 has been omitted from this Annual Report on Form 10-K but may be found in “Item 7.
Comparison of the Years Ended December 31, 2024 and 2023 A discussion of changes in our results of operations during the year ended December 31, 2024 compared to the year ended December 31, 2023 has been omitted from this Annual Report on Form 10-K but may be found in “Item 7.
These risks, uncertainties and other factors may cause the actual results, performance or The First Bancorp - 2024 Form 10-K - Page 22 achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
These risks, uncertainties and other factors may cause the actual results, performance or The First Bancorp - 2025 Form 10-K - Page 22 achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
The First Bancorp - 2024 Form 10-K - Page 32 The following table sets forth information on the yields and expected maturities of the Company's investment securities as of December 31, 2024. Yields on tax-exempt securities have been computed on a tax-equivalent basis using a tax rate of 21%.
The First Bancorp - 2025 Form 10-K - Page 32 The following table sets forth information on the yields and expected maturities of the Company's investment securities as of December 31, 2025. Yields on tax-exempt securities have been computed on a tax-equivalent basis using a tax rate of 21%.
The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2024. Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Dollars in thousands Value Losses Value Losses Value Losses U.S.
The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2025: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Dollars in thousands Value Losses Value Losses Value Losses U.S.
The Company's actual levels of capitalization were comfortably above the standards to be rated "well-capitalized" by regulatory authorities. The Company met each of the well-capitalized ratio guidelines at December 31, 2024. The following tables indicate the capital ratios for the Bank and the Company at December 31, 2024 and December 31, 2023.
The Company's actual levels of capitalization were comfortably above the standards to be rated "well-capitalized" by regulatory authorities. The Company met each of the well-capitalized ratio guidelines at December 31, 2025. The following tables indicate the capital ratios for the Bank and the Company at December 31, 2025 and December 31, 2024.
These are loans in which we expect to collect all amounts due, including past-due interest. As of December 31, 2024, loans 90 or more days past due and still accruing interest totaled $1.0 million, compared to $429,000 at December 31, 2023. Loan Modifications Made to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02 effective January 1, 2023.
These are loans in which we expect to collect all amounts due, including past-due interest. As of December 31, 2025, loans 90 or more days past due and still accruing interest totaled $665,000, compared to $1.0 million at December 31, 2024. Loan Modifications Made to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02 effective January 1, 2023.
Abbreviation Description Abbreviation Description ACL Allowance for credit losses GDP Gross domestic product AFS Available-for-sale GNMA Government National Mortgage Association ALCO Asset/Liability Committee HTM Held-to-maturity AOCI Accumulated other comprehensive income (loss) IAL Individually Analyzed Loans ASC Accounting Standards Codification IRS Internal Revenue Service ASU Accounting Standards Update MPF Mortgage Partnership Finance Program C&I Commercial and Industrial OAEM Other assets especially mentioned CDs Certificates of deposit OCC Office of the Comptroller of the Currency CECL Current Expected Credit Loss OCI Other comprehensive income (loss) CET1 Common Equity Tier 1 OIS Overnight Indexed Swap CLLD Construction, land, and land development OREO Other real estate owned EPS Earnings per share POR Period of Redemption FASB Financial Accounting Standards Board PSA Public Securities Association FDIC Federal Deposit Insurance Corporation SEC Securities and Exchange Commission FHLB Federal Home Loan Bank SOFR Secured Overnight Financing Rate FHLBB Federal Home Loan Bank of Boston TDR Troubled debt restructuring FHLMC Federal Home Loan Mortgage Corporation The 2020 Plan The 2020 Equity Incentive Plan FNMA Federal National Mortgage Association The Bank First National Bank FOMC Federal Open Market Committee The Company The First Bancorp, Inc.
Abbreviation Description Abbreviation Description ACL Allowance for credit losses GDP Gross domestic product AFS Available-for-sale GNMA Government National Mortgage Association ALCO Asset/Liability Committee HTM Held-to-maturity AOCI Accumulated other comprehensive income (loss) IAL Individually Analyzed Loans ASC Accounting Standards Codification IRS Internal Revenue Service ASU Accounting Standards Update MPF Mortgage Partnership Finance Program C&I Commercial and Industrial OAEM Other assets especially mentioned CDs Certificates of deposit OCC Office of the Comptroller of the Currency CECL Current Expected Credit Loss OCI Other comprehensive income (loss) CET1 Common Equity Tier 1 OIS Overnight Indexed Swap CLLD Construction, land, and land development OREO Other real estate owned EPS Earnings per share POR Period of Redemption FASB Financial Accounting Standards Board PSA Public Securities Association FDIC Federal Deposit Insurance Corporation PTPP Pre-Tax, Pre-Provision FHLB Federal Home Loan Bank SEC Securities and Exchange Commission FHLBB Federal Home Loan Bank of Boston SOFR Secured Overnight Financing Rate FHLMC Federal Home Loan Mortgage Corporation The 2020 Plan The 2020 Equity Incentive Plan FNMA Federal National Mortgage Association The Bank First National Bank FOMC Federal Open Market Committee The Company The First Bancorp, Inc.
Testing has indicated that no impairment of goodwill has occurred and the value of goodwill as of December 31, 2024 is unchanged from the prior year. Mortgage Servicing Rights. The valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions.
Testing has indicated that no impairment of goodwill has occurred and the value of goodwill as of December 31, 2025 is unchanged from the prior year. Mortgage Servicing Rights. The valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions.
The Company follows these practices. The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements prepared in accordance with GAAP. A Federal income tax rate of 21.0% was used in 2024 and 2023.
The Company follows these practices. The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements prepared in accordance with GAAP. A Federal income tax rate of 21.0% was used in 2025 and 2024.
Municipal securities are supported by the general taxing authority of the municipality and, in the cases of school districts, are generally supported by state aid. At December 31, 2024, all municipal bond issuers were current on contractually obligated interest and principal payments.
Municipal securities are supported by the general taxing authority of the municipality and, in the cases of school districts, are generally supported by state aid. At December 31, 2025, all municipal bond issuers were current on contractually obligated interest and principal payments.
The First Bancorp - 2024 Form 10-K - Page 31 The following table sets forth the Company's investment securities at their carrying amounts as of December 31, 2024 and 2023: Dollars in thousands 2024 2023 Securities available for sale U.S.
The First Bancorp - 2025 Form 10-K - Page 31 The following table sets forth the Company's investment securities at their carrying amounts as of December 31, 2025 and 2024: Dollars in thousands 2025 2024 Securities available for sale U.S.
The following table presents the interest earned on or paid for each major asset and liability category, respectively, for the years ended December 31, 2024 and 2023, as well as the average yield for each major asset and liability category, and the net yield between assets and liabilities.
The following table presents the interest earned on or paid for each major asset and liability category, respectively, for the years ended December 31, 2025 and 2024, as well as the average yield for each major asset and liability category, and the net yield between assets and liabilities.
Loan losses are charged against the allowance when Management believes that the collectibility of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance. The adequacy of the ACL is overseen by the ACL Committee whose membership includes senior level personnel from the Executive, Lending, Credit Administration, and Finance functions of the Bank.
Loan losses are charged against the allowance when Management believes that the collectibility of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance. The adequacy of the ACL is overseen by the ACL Committee whose membership includes senior level personnel from the Executive, Lending, Risk, and Finance functions of the Bank.
The abbreviations and descriptions identified below are used throughout Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operation and Item 8 - Financial Statement and Supplementary Data. The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-K.
The abbreviations and descriptions identified below may be used throughout Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operation and Item 8 - Financial Statement and Supplementary Data. The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-K.
The total ACL on loans at December 31, 2024 is considered by Management to be appropriate to address the potential for credit losses inherent in the loan portfolio at that date.
The total ACL on loans at December 31, 2025 is considered by Management to be appropriate to address the potential for credit losses inherent in the loan portfolio at that date.
The First Bancorp - 2024 Form 10-K - Page 37 The following table summarizes our allocation of allowance by loan class as of December 31, 2024 and 2023.
The First Bancorp - 2025 Form 10-K - Page 37 The following table summarizes our allocation of allowance by loan class as of December 31, 2025 and 2024.
Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. The fair value of mortgage servicing rights as of December 31, 2024 decreased by $529,000 from that of December 31, 2023 primarily due to loan amortization and payoffs outpacing sales of new loans during the year, and no impairment was recognized as of either date.
Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. The fair value of mortgage servicing rights as of December 31, 2025 decreased by $369,000 from that of December 31, 2024 primarily due to loan amortization and payoffs outpacing sales of new loans during the year, and no impairment was recognized as of either date.
The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. AFS Obligations of state and political subdivisions. As of December 31, 2024, the total unrealized losses on municipal securities amounted to $6.9 million, compared with $5.7 million at December 31, 2023.
The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. AFS Obligations of state and political subdivisions. As of December 31, 2025, the total unrealized losses on municipal securities amounted to $5.0 million, compared with $6.9 million at December 31, 2024.
These bring the Bank's total sources of liquidity to $1.394 billion or 44.6% of its total assets. The ALCO establishes guidelines for liquidity in its Asset/Liability policy and monitors internal liquidity measures to manage liquidity exposure. Based on its assessment of the liquidity considerations described above, Management believes the Company's sources of funding will meet anticipated funding needs.
These bring the Bank's total sources of liquidity to $1.405 billion or 44.8% of its total assets. The ALCO establishes guidelines for liquidity in its Asset/Liability policy and monitors internal liquidity measures to manage liquidity exposure. Based on its assessment of the liquidity considerations described above, Management believes the Company's sources of funding will meet anticipated funding needs.
Capital at December 31, 2024 was sufficient to meet the requirements of regulatory authorities. Leverage capital of the Company, or total shareholders' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities AFS and postretirement benefits, stood at 8.47% on December 31, 2024 and 8.61% at December 31, 2023.
Capital at December 31, 2025 was sufficient to meet the requirements of regulatory authorities. Leverage capital of the Company, or total shareholders' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities AFS and postretirement benefits, stood at 8.84% on December 31, 2025 and 8.47% at December 31, 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024, which discussion is incorporated herein by reference, and which is available free of charge on the SECs website at www.sec.gov.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025, which discussion is incorporated herein by reference, and which is available free of charge on the SECs website at www.sec.gov.
Treasury and U.S. Government-sponsored agencies & enterprises. As of December 31, 2024, the total unrealized losses on these securities amounted to $6.2 million, compared with $6.2 million at December 31, 2023. All of these securities were credit rated "AAA" or "AA+" by the major credit rating agencies. Management believes that securities issued by the U.S. Treasury and U.S.
Treasury and U.S. Government-sponsored agencies & enterprises. As of December 31, 2025, the total unrealized losses on these securities amounted to $5.0 million, compared with $6.2 million at December 31, 2024. All of these securities were credit rated "AAA" or "AA+" by the major credit rating agencies. Management believes that securities issued by the U.S. Treasury and U.S.
For the years ended December 31, 2024, 2023 and 2022 the Bank declared dividends to the Company of $15.8 million, $14.8 million and $14.0 million, respectively. The Bank's regulator, the OCC, may limit the amount of dividends declared and paid in a calendar year based upon certain factors. Further discussion may be found in Capital Resources below.
For the years ended December 31, 2025, 2024 and 2023 the Bank declared dividends to the Company of $15.9 million, $15.8 million and $14.8 million, respectively. The Bank's regulator, the OCC, may limit the amount of dividends declared and paid in a calendar year based upon certain factors. Further discussion may be found in Capital Resources below.
In conjunction with adoption, holdings of AFS securities and HTM securities were evaluated to determine the need to establish an ACL, if any. The total ACL for HTM securities was $196,000 and $434,000 as of December 31, 2024 and 2023, respectively. Further details are included in Note 3 of the accompanying financial statements.
In conjunction with adoption, holdings of AFS securities and HTM securities were evaluated to determine the need to establish an ACL, if any. The total ACL for HTM securities was $146,000 and $196,000 as of December 31, 2025 and 2024, respectively. Further details are included in Note 3 of the accompanying financial statements.
The Bank's lead source of liquidity is deposits, including brokered deposits, which funded 85.6% of total average assets in 2024, as compared to 87.3% a year ago. Other sources of funding include discretionary use of purchased liabilities (e.g., FHLBB term or overnight advances, and other borrowings), cash flows from the securities portfolio and loan repayments.
The Bank's lead source of liquidity is deposits, including brokered deposits, which funded 85.1% of total average assets in 2025, as compared to 85.6% a year ago. Other sources of funding include discretionary use of purchased liabilities (e.g., FHLBB term or overnight advances, and other borrowings), cash flows from the securities portfolio and loan repayments.
It is Management's opinion that this is an appropriate level. In addition, the Bank has $319.0 million in borrowing capacity under the FRBB's Borrower in Custody programs as well as securities available as collateral, $101.0 million in credit lines with correspondent banks, and $151.0 million in other unencumbered securities available as collateral for borrowing.
It is Management's opinion that this is an appropriate level. In addition, the Bank has $313.0 million in borrowing capacity under the FRBB's Borrower in Custody programs as well as securities available as collateral, $101.0 million in credit lines with correspondent banks, and $40.0 million in other unencumbered securities available as collateral for borrowing.
The remaining unamortized balance of the net unrealized losses for the securities transferred from AFS to HTM was $47,000, net of taxes, at December 31, 2024. This compares to $56,000, net of taxes at December 31, 2023. These securities were transferred as a part of the Company's overall investment and balance sheet strategies.
The remaining unamortized balance of the net unrealized losses for the securities transferred from AFS to HTM was $38,000, net of taxes, at December 31, 2025. This compares to $47,000, net of taxes at December 31, 2024. These securities were transferred as a part of the Company's overall investment and balance sheet strategies.
Tax-exempt income is calculated on a tax-equivalent basis, using a 21.0% Federal income tax rate in 2024 and 2023.
Tax-exempt income is calculated on a tax-equivalent basis, using a 21.0% Federal income tax rate in 2025 and 2024.
Tax-exempt income has been calculated on a tax-equivalent basis using a 21% Federal income tax rate in 2024 and 2023.
Tax-exempt income has been calculated on a tax-equivalent basis using a 21% Federal income tax rate in 2025 and 2024.
Reporting of loan modifications subject to ASU 2022-02 may be found in Note 5 of the accompanying financial statements. Past Due Loans The Bank's overall loan delinquency ratio was 0.40% at December 31, 2024, versus 0.18% at December 31, 2023.
Reporting of loan modifications subject to ASU 2022-02 may be found in Note 5 of the accompanying financial statements. Past Due Loans The Bank's overall loan delinquency ratio was 0.90% at December 31, 2025, versus 0.40% at December 31, 2024.
A specific reserve is allocated to an individual loan when the amount of a probable loss is estimable on the basis of its collateral value, the present value of anticipated future cash flows, or its net realizable value. At December 31, 2024, IALs with specific reserves totaled $1.7 million and the amount of such reserves was $1.0 million.
A specific reserve is allocated to an individual loan when the amount of a probable loss is estimable on the basis of its collateral value, the present value of anticipated future cash flows, or its net realizable value. At December 31, 2025, IALs with specific reserves totaled $4.1 million and the amount of such reserves was $2.7 million.
Utilization assumptions are based upon an independent analysis of the Bank's historical data. The ACL for unfunded commitments is reported on the Company's consolidated balance sheets within other liabilities and totaled $714,000 as of December 31, 2024.
Utilization assumptions are based upon an independent analysis of the Bank's historical data. The ACL for unfunded commitments is reported on the Company's consolidated balance sheets within other liabilities and totaled $565,000 as of December 31, 2025.
Government-sponsored agencies and enterprises carry zero or near-zero credit risk, and that 100% of the amounts contractually due will be collected. AFS Mortgage-backed securities issued by U.S. Government agencies and U.S. Government-sponsored enterprises. As of December 31, 2024, the total unrealized losses on these securities amounted to $41.0 million, compared with $38.5 million at December 31, 2023.
Government-sponsored agencies and enterprises carry zero or near-zero credit risk, and that 100% of the amounts contractually due will be collected. AFS Mortgage-backed securities issued by U.S. Government agencies and U.S. Government-sponsored enterprises. As of December 31, 2025, the total unrealized losses on these securities amounted to $30.1 million, compared with $41.0 million at December 31, 2024.
The Bank is also a member of the FRBB. As a requirement for membership in the FRBB, the Bank must own a minimum required amount of FRBB stock. The Bank uses FRBB for certain correspondent banking services and maintains borrowing capacity at its discount window. The Bank's investment in FRBB stock totaled $1.0 million at December 31, 2024 and 2023.
As a requirement for membership in the FRBB, the Bank must own a minimum required amount of FRBB stock. The Bank uses FRBB for certain correspondent banking services and maintains borrowing capacity at its discount window. The Bank's investment in FRBB stock totaled $1.0 million at December 31, 2025 and 2024.
Forward-Looking Statements This report contains statements that are "forward-looking statements." We may also make written or oral forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees.
WSJP Wall Street Journal Prime Forward-Looking Statements This report contains statements that are "forward-looking statements." We may also make written or oral forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees.
Securities in a continuous unrealized loss position of twelve months or more amounted to a fair value $234.1 million as of December 31, 2024, compared with $257.7 million at December 31, 2023. The Company has concluded that these securities are fully collectible and that no charge against the allowance is required.
Securities in a continuous unrealized loss position of twelve months or more amounted to a fair value $226.9 million as of December 31, 2025, compared with $234.1 million at December 31, 2024. The Company has concluded that these securities are fully collectible and that no charge against the allowance is required.
Loans Held for Sale As of December 31, 2024 and 2023, the Bank had no loans held for sale.
Loans Held for Sale As of December 31, 2025 and 2024, the Bank had no loans held for sale.
The Company defines its primary sources of contingent liquidity as cash & equivalents, unencumbered U.S. Government or Agency bond collateral, available capacity at FHLBB, and available authorized brokered deposit issuance capacity. As of December 31, 2024, the Bank had primary sources of contingent liquidity of $823.0 million or 26.3% of its total assets.
The Company defines its primary sources of contingent liquidity as cash & equivalents, unencumbered U.S. Government or Agency bond collateral, available capacity at FHLBB, and available authorized brokered deposit issuance capacity. As of December 31, 2025, the Bank had primary sources of contingent liquidity of $951.0 million or 30.3% of its total assets.
At December 31, 2024, the Company had CET1 and tier-one risk-based capital ratios of 12.04%, and a tier-two, or total, risk-based capital ratio of 13.22%, versus 12.42% and 13.66%, respectively, at December 31, 2023. To be rated "well-capitalized", regulatory requirements call for minimum CET1, tier-one and tier-two risk-based capital ratios of 6.50%, 8.00% and 10.00%, respectively.
At December 31, 2025, the Company had CET1 and tier-one risk-based capital ratios of 12.84%, and a tier-two, or total, risk-based capital ratio of 14.02%, versus 12.04% and 13.22%, respectively, at December 31, 2024. To be rated "well-capitalized", regulatory requirements call for minimum CET1, tier-one and tier-two risk-based capital ratios of 6.50%, 8.00% and 10.00%, respectively.
Investment Management and Fiduciary Activities As of December 31, 2024, First National Wealth Management, the Bank's trust and investment management division, had assets under management or custody with a market value of $1.290 billion, consisting of 1,272 trust accounts, estate accounts, agency accounts, and self-directed individual retirement accounts.
Investment Management and Fiduciary Activities As of December 31, 2025, First National Wealth Management, the Bank's trust and investment management division, had assets under management or custody with a market value of $1.384 billion, consisting of 1,306 trust accounts, estate accounts, agency accounts, and self-directed individual retirement accounts.
The Company attributes the unrealized losses at December 31, 2024 to changes in prevailing market yields and pricing spreads since the date the underlying securities were purchased, combined with current market liquidity conditions and disruption in the financial markets in general.
The Company attributes the unrealized losses at December 31, 2025 to changes in prevailing market yields and pricing spreads since the date the underlying securities were purchased, combined with current market liquidity conditions and market conditions in general.
As of December 31, 2024 and 2023, the Bank held a total of $187.1 million and $172.2 million in certificate of deposit accounts with balances in excess of $250,000, respectively. The following table summarizes the time remaining to maturity for these certificates of deposit.
As of December 31, 2025 and 2024, the Bank held a total of $147.7 million and $187.1 million in certificate of deposit accounts with balances in excess of $250,000, respectively. The following table summarizes the time remaining to maturity for these certificates of deposit.
The First Bancorp - 2024 Form 10-K - Page 45 Contractual Obligations The following table sets forth the contractual obligations of the Company as of December 31, 2024: Dollars in thousands Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating leases $ 662 $ 105 $ 126 $ 56 375 Total $ 662 $ 105 $ 126 $ 56 $ 375 Capital Purchases In 2024, the Company made capital purchases totaling $1.5 million for facility improvements to branch or operations premises and technology investments in various hardware and software.
The First Bancorp - 2025 Form 10-K - Page 45 Contractual Obligations The following table sets forth the contractual obligations of the Company as of December 31, 2025: Dollars in thousands Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating leases $ 596 $ 137 $ 56 $ 56 347 Total $ 596 $ 137 $ 56 $ 56 $ 347 Capital Purchases In 2025, the Company made capital purchases totaling $3.2 million for facility improvements to branch or operations premises and technology investments in various hardware and software.
As of December 31, 2024 Leverage Common Equity Tier 1 Tier 1 Total Risk-Based Bank 8.32 % 11.98 % 11.98 % 13.16 % Company 8.47 % 12.04 % 12.04 % 13.22 % Adequately capitalized ratio 4.00 % 4.50 % 6.00 % 8.00 % Adequately capitalized ratio plus capital conservation buffer n/a % 7.00 % 8.50 % 10.50 % Well capitalized ratio (Bank only) 5.00 % 6.50 % 8.00 % 10.00 % As of December 31, 2023 Leverage Common Equity Tier 1 Tier 1 Total Risk-Based Bank 8.43 % 12.37 % 12.37 % 13.62 % Company 8.61 % 12.42 % 12.42 % 13.66 % Adequately capitalized ratio 4.00 % 4.50 % 6.00 % 8.00 % Adequately capitalized ratio plus capital conservation buffer n/a % 7.00 % 8.50 % 10.50 % Well capitalized ratio (Bank only) 5.00 % 6.50 % 8.00 % 10.00 % Except as identified in Item 1A, "Risk Factors", Management knows of no present trends, events or uncertainties that will have, or are reasonably likely to have, a material effect on the Company's capital resources, liquidity, or results of operations.
As of December 31, 2025 Leverage Common Equity Tier 1 Tier 1 Total Risk-Based Bank 8.82 % 12.77 % 12.77 % 13.95 % Company 8.84 % 12.84 % 12.84 % 14.02 % Adequately capitalized ratio 4.00 % 4.50 % 6.00 % 8.00 % Adequately capitalized ratio plus capital conservation buffer n/a % 7.00 % 8.50 % 10.50 % Well capitalized ratio (Bank only) 5.00 % 6.50 % 8.00 % 10.00 % As of December 31, 2024 Leverage Common Equity Tier 1 Tier 1 Total Risk-Based Bank 8.32 % 11.98 % 11.98 % 13.16 % Company 8.47 % 12.04 % 12.04 % 13.22 % Adequately capitalized ratio 4.00 % 4.50 % 6.00 % 8.00 % Adequately capitalized ratio plus capital conservation buffer n/a % 7.00 % 8.50 % 10.50 % Well capitalized ratio (Bank only) 5.00 % 6.50 % 8.00 % 10.00 % Except as identified in Item 1A, "Risk Factors", Management knows of no present trends, events or uncertainties that will have, or are reasonably likely to have, a material effect on the Company's capital resources, liquidity, or results of operations.
The provision for credit losses to maintain the allowance was $1.3 million in 2024 compared to $1.3 million in 2023. Net charge offs were $463,000 in 2024 compared to net charge offs of $233,000 in 2023. The ACL as a percentage of outstanding loans was at 1.06% at December 31, 2024 compared to 1.13% at December 31, 2023.
The provision for credit losses to maintain the allowance was $2.0 million in 2025 compared to $1.3 million in 2024. Net charge offs were $1.6 million in 2025 compared to net charge offs of $463,000 in 2024. The ACL as a percentage of outstanding loans was at 1.06% at December 31, 2025 compared to 1.06% at December 31, 2024.
The following table provides a reconciliation of average tangible common shareholders' equity to the Company's consolidated financial statements, which have been prepared in accordance with GAAP: Years ended December 31, Dollars in thousands 2024 2023 Average shareholders' equity as presented $ 249,786 $ 234,480 Less average intangible assets (30,817) (30,843) Average tangible shareholders' common equity $ 218,969 $ 203,637 To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of Pre-Tax, Pre-Provision Net Income is presented.
The following table provides a reconciliation of average tangible common shareholders' equity to the Company's consolidated financial statements, which have been prepared in accordance with GAAP: Years ended December 31, Dollars in thousands 2025 2024 Average shareholders' equity as presented $ 268,059 $ 249,786 Less average intangible assets (30,791) (30,817) Average tangible shareholders' common equity $ 237,268 $ 218,969 To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of PTPP Net Income is presented.
Nonperforming loans, expressed as a percentage of total loans, totaled 0.18% at December 31, 2024 compared to 0.10% at December 31, 2023.
Nonperforming loans, expressed as a percentage of total loans, totaled 0.54% at December 31, 2025 compared to 0.18% at December 31, 2024.
At December 31, 2023, this amount was $50.4 million, or 15.18% of the total AFS securities portfolio. The Company's evaluation of securities for impairment is a quantitative and qualitative process intended to determine whether declines in the fair value of AFS investment securities should be recognized as a charge against the ACL.
At December 31, 2024, this amount was $54.2 million, or 16.48% of the total AFS securities portfolio. The Company's evaluation of securities for impairment is a quantitative and qualitative process intended to determine whether declines in the fair value of AFS investment securities should be recognized as a charge against the ACL.
The Company subscribes to a widely recognized, independent pricing service and updates The First Bancorp - 2024 Form 10-K - Page 23 carrying values no less frequently than monthly. It also validates the values provided by the pricing service no less frequently than quarterly by measuring against security prices provided by a secondary source.
The Company subscribes to a widely recognized, independent pricing service and updates carrying values no less frequently than monthly. It also validates the values provided by the pricing service no less frequently than quarterly by measuring against security prices provided by a secondary source.
The change in value of the portfolio is attributable primarily to limited reinvestment of incoming cash flow from amortizing and matured investments, as cash flow was re-directed to other segments of the balance sheet. As of December 31, 2024, mortgage-backed securities had a carrying value of $271.8 million and a fair value of $260.4 million.
The change in value of the portfolio is attributable primarily to limited reinvestment of incoming cash flow from amortizing and matured investments, as cash flow was re-directed to other segments of the balance sheet. As of December 31, 2025, mortgage-backed securities had a carrying value of $259.0 million and a fair value of $250.2 million.
Changes in fair value of a derivative that is effective and that qualifies as a cash flow hedge are recorded in OCI and are reclassified into earnings when the forecasted transaction or related cash flows affect earnings.
Changes in fair value of a derivative The First Bancorp - 2025 Form 10-K - Page 24 that is effective and that qualifies as a cash flow hedge are recorded in OCI and are reclassified into earnings when the forecasted transaction or related cash flows affect earnings.
Net loan charge-offs in 2024 were $463,000 or 0.02% of average loans, up from $233,000 or 0.01% of loans in 2023. Non-performing assets stood at 0.14% of total assets as of December 31, 2024 compared to 0.07% of total assets at December 31, 2023.
Net loan charge-offs in 2025 were $1.6 million or 0.07% of average loans, up from $463,000 or 0.02% of loans in 2024. Non-performing assets stood at 0.41% of total assets as of December 31, 2025 compared to 0.14% of total assets at December 31, 2024.
The following table shows the distribution of nonperforming loans by class as of December 31, 2024 and 2023: As of December 31, Dollars in thousands 2024 2023 Commercial Real Estate Owner Occupied $ 553 $ — Real Estate Non-Owner Occupied 61 — Construction 18 29 C&I 1,695 538 Multifamily — — Agriculture 31 — Municipal — — Residential Term 1,599 1,315 Construction — — Home Equity Revolving and Term 291 296 Consumer — — Total non-performing loans $ 4,248 $ 2,178 Allowance for credit losses on loans as a percentage of nonperforming loans 585.5 % 1103.3 % The First Bancorp - 2024 Form 10-K - Page 40 The amounts shown for total nonperforming loans do not include loans 90 or more days past due and still accruing interest.
The following table shows the distribution of nonperforming loans by class as of December 31, 2025 and 2024: As of December 31, Dollars in thousands 2025 2024 Commercial Real Estate Owner Occupied $ 4,027 $ 553 Real Estate Non-Owner Occupied 1,346 61 Construction 8 18 C&I 1,914 1,695 Multifamily — — Agriculture 441 31 Municipal — — Residential Term 4,193 1,599 Construction — — Home Equity Revolving and Term 945 291 Consumer 5 — Total non-performing loans $ 12,879 $ 4,248 Allowance for credit losses on loans as a percentage of nonperforming loans 196.9 % 585.5 % The First Bancorp - 2025 Form 10-K - Page 40 The amounts shown for total nonperforming loans do not include loans 90 or more days past due and still accruing interest.
During 2024, the Company declared cash dividends of $0.35 per share in the first quarter and $0.36 per share in the remaining three quarters, or $1.43 per share for the year.
During 2025, the Company declared cash dividends of $0.36 per share in the first quarter and $0.37 per share in the remaining three quarters, or $1.47 per share for the year.
Years ended December 31, Dollars in thousands 2024 2023 Net interest income as presented $ 63,910 $ 65,207 Effect of tax-exempt income 2,780 2,644 Net interest income, tax equivalent $ 66,690 $ 67,851 The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions.
Years ended December 31, Dollars in thousands 2025 2024 Net interest income as presented $ 77,377 $ 63,910 Effect of tax-exempt income 2,837 2,780 Net interest income, tax equivalent $ 80,214 $ 66,690 The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions.
Tax-exempt interest income amounted to $10.5 million for the year ended December 31, 2024, and $9.9 million for the year ended December 31, 2023. The First Bancorp - 2024 Form 10-K - Page 27 The following table presents changes in interest income and expense attributable to changes in interest rates, volume, and rate/volume 1 for interest-earning assets and interest-bearing liabilities.
Tax-exempt interest income amounted to $10.7 million for the year ended December 31, 2025, and $10.5 million for the year ended December 31, 2024. The following table presents changes in interest income and expense attributable to changes in interest rates, volume, and rate/volume 1 for interest-earning assets and interest-bearing liabilities.
This compares to December 31, 2023, when 1,249 accounts with a market value of $1.254 billion were under management or custody.
This compares to December 31, 2024, when 1,272 accounts with a market value of $1.290 billion were under management or custody.
The dividend payout ratio, which is calculated by dividing dividends declared per share by diluted earnings per share, was 58.44% for the year ended December 31, 2024 compared to 51.87% for the year ended December 31, 2023.
The dividend payout ratio, which is calculated by dividing dividends declared per share by basic earnings per share, was 47.39% for the year ended December 31, 2025 compared to 58.44% for the year ended December 31, 2024.
This compares to IALs with specific reserves of $919,000 at December 31, 2023 and the amount of such reserves was $264,000. Additional detail on IALs may be found in Note 5 of the accompanying financial statements.
This compares to IALs with specific reserves of $1.7 million at December 31, 2024 and the amount of such reserves was $1.0 million. Additional detail on IALs may be found in Note 5 of the accompanying financial statements.
The amount available for dividends in 2025 is this year's net income plus $27.9 million. In 2024, 67,302 shares were issued via employee stock programs, the dividend reinvestment plan, and restricted stock grants. The Company received consideration totaling $867,000. The following table summarizes the Company's 2024 stock issuances.
The amount available for dividends in 2026 is this year's net income plus $31.8 million. In 2025, 79,944 shares were issued via employee stock programs, the dividend reinvestment plan, and restricted stock grants. The Company received consideration totaling $916,000. The following table summarizes the Company's 2025 stock issuances.
Loans 90 days delinquent and accruing increased from $429,000 at December 31, 2023 to $1.0 million as of December 31, 2024.
Loans 90 days delinquent and accruing decreased from $1.0 million at December 31, 2024 to $665,000 as of December 31, 2025.
Estimated uninsured deposits totaled $506.2 million, or 18.6% of total deposits, and $407.4 million, or 15.7% of total deposits, at December 31, 2024 and 2023, respectively. The company has pledged assets as collateral covering certain deposits; these amounts were $349.8 million and $340.5 million as of December 31, 2024 and 2023, respectively.
Estimated uninsured deposits totaled $516.9 million, or 19.4% of total deposits, and $506.2 million, or 18.6% of total deposits, at December 31, 2025 and 2024, respectively. The company has pledged assets as collateral covering certain deposits; these amounts were $385.2 million and $349.8 million as of December 31, 2025 and 2024, respectively.
The First Bancorp - 2024 Form 10-K - Page 30 Assets and Asset Quality Total assets of $3.157 billion at December 31, 2024 increased 7.1% or $210.3 million from $2.947 billion at December 31, 2023. The investment portfolio, including restricted equity securities decreased $19.1 million or 2.8% over December 31, 2023, and the loan portfolio increased $211.5 million or 9.9%.
The First Bancorp - 2025 Form 10-K - Page 30 Assets and Asset Quality Total assets of $3.166 billion at December 31, 2025 increased 0.3% or $9.3 million from $3.157 billion at December 31, 2024. The investment portfolio, including restricted equity securities decreased $22.9 million or 3.5% over December 31, 2024, and the loan portfolio increased $53.2 million or 2.3%.
This compares to an average outstanding amount of $105.0 million with a weighted average interest rate of 1.87% per annum in 2023. Capital Resources Shareholders' equity as of December 31, 2024 was $252.5 million, compared to $243.1 million as of December 31, 2023.
This compares to an average outstanding amount of $162.9 million with a weighted average interest rate of 3.38% per annum in 2024. Capital Resources Shareholders' equity as of December 31, 2025 was $283.1 million, compared to $252.5 million as of December 31, 2024.
The First Bancorp - 2024 Form 10-K - Page 25 The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio: Years ended December 31, Dollars in thousands 2024 2023 Non-interest expense, as presented $ 47,156 $ 43,758 Net interest income, as presented 63,910 65,207 Effect of tax-exempt income 2,780 2,644 Non-interest income, as presented 16,355 15,437 Effect of non-interest tax-exempt income 185 176 Adjusted net interest income plus non-interest income $ 83,230 $ 83,464 Non-GAAP efficiency ratio 56.66 % 52.43 % GAAP efficiency ratio 58.75 % 54.26 % The Company presents certain information based upon average tangible common shareholders' equity instead of total average shareholders' equity.
The First Bancorp - 2025 Form 10-K - Page 25 The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio: Years ended December 31, Dollars in thousands 2025 2024 Non-interest expense, as presented $ 50,928 $ 47,156 Net interest income, as presented 77,377 63,910 Effect of tax-exempt income 2,837 2,780 Non-interest income, as presented 17,340 16,355 Effect of non-interest tax-exempt income 214 185 Adjusted net interest income plus non-interest income $ 97,768 $ 83,230 Non-GAAP efficiency ratio 52.09 % 56.66 % GAAP efficiency ratio 53.77 % 58.75 % The Company presents certain information based upon average tangible common shareholders' equity instead of total average shareholders' equity.
The First Bancorp - 2024 Form 10-K - Page 38 The following table summarizes the activities in the ACL as of December 31, 2024 and 2023: As of December 31, Dollars in thousands 2024 2023 Balance at beginning of year $ 24,030 $ 16,723 Loans charged off: Commercial Real Estate Owner Occupied — 40 Real Estate Non-Owner Occupied — — Construction — — C&I 451 153 Multifamily — — Agriculture — — Municipal — — Residential Term 37 — Construction — — Home Equity Revolving and Term 7 50 Consumer 252 194 Total 747 437 Recoveries on loans previously charged off Commercial Real Estate Owner Occupied 100 2 Real Estate Non-Owner Occupied — 75 Construction — — C&I 25 3 Multifamily — — Agriculture — — Municipal — — Residential Term 32 14 Construction — — Home Equity Revolving and Term 24 13 Consumer 103 97 Total 284 204 Net loans charged off 463 233 Provision for credit losses 1,304 1,330 Adoption of ASU No. 2016-13 — 6,210 Balance at end of period $ 24,871 $ 24,030 Ratio of net loans charged off to average loans outstanding 1 0.021 % 0.011 % Ratio of allowance for credit losses to total loans outstanding 1.06 % 1.13 % 1 Annualized using a 366-day basis in 2024 and a 365-day basis in 2023.
The First Bancorp - 2025 Form 10-K - Page 38 The following table summarizes the activities in the ACL as of December 31, 2025 and 2024: As of December 31, Dollars in thousands 2025 2024 Balance at beginning of year $ 24,871 $ 24,030 Loans charged off: Commercial Real Estate Owner Occupied 53 — Real Estate Non-Owner Occupied — — Construction — — C&I 1,333 451 Multifamily — — Agriculture 27 — Municipal — — Residential Term 1 37 Construction — — Home Equity Revolving and Term — 7 Consumer 329 252 Total 1,743 747 Recoveries on loans previously charged off Commercial Real Estate Owner Occupied — 100 Real Estate Non-Owner Occupied — — Construction — — C&I 76 25 Multifamily — — Agriculture — — Municipal — — Residential Term 7 32 Construction — — Home Equity Revolving and Term 16 24 Consumer 89 103 Total 188 284 Net loans charged off 1,555 463 Provision for credit losses 2,049 1,304 Balance at end of period $ 25,365 $ 24,871 Ratio of net loans charged off to average loans outstanding 1 0.065 % 0.021 % Ratio of allowance for credit losses to total loans outstanding 1.06 % 1.06 % 1 Annualized using a 365-day basis in 2025 and a 366-day basis in 2024.
To be rated "well-capitalized", regulatory requirements call for a minimum leverage capital ratio of 5.00%. Given its capital structure, regulatory Tier 1 capital and CET1 are equal.
To be rated "well-capitalized", regulatory requirements call for a minimum leverage capital ratio of 5.00%. Given their capital structures, the regulatory Tier 1 capital and CET1 ratios are equal for both the Bank and the Company.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe Company's summarized static gap, as of December 31, 2024, is presented in the following table: 0-90 90-365 1-5 5+ Dollars in thousands Days Days Years Years Investment securities at amortized cost (HTM) and fair value (AFS) $ 30,810 $ 35,742 $ 153,891 $ 423,941 Restricted equity securities, at cost 6,166 — — 1,037 Loans 635,843 389,735 1,029,632 285,730 Other interest-earning assets — — — 32,414 Non-rate-sensitive assets 31,680 — — 100,389 Total assets 704,499 425,477 1,183,523 843,511 Interest-bearing deposits 1,111,104 428,310 472,326 472,551 Borrowed funds 60,000 35,000 — — Non-rate-sensitive liabilities and equity — — — 577,719 Total liabilities and equity 1,171,104 463,310 472,326 1,050,270 Period gap $ (466,605) $ (37,833) $ 711,197 $ (206,759) Percent of total assets (14.80) % (1.20) % 22.56 % (6.55) % Cumulative gap (current) $ (466,605) $ (504,438) $ 206,759 $ — Percent of total assets (14.80) % (15.98) % 6.55 % — % The earnings simulation model forecasts capture the impact of changing interest rates on one-year and two-year net interest income.
Biggest changeThe Company's summarized static gap, as of December 31, 2025, is presented in the following table: 0-90 90-365 1-5 5+ Dollars in thousands Days Days Years Years Investment securities at amortized cost (HTM) and fair value (AFS) $ 50,324 $ 52,572 $ 146,446 $ 371,066 Restricted equity securities, at cost 7,238 — — 1,037 Loans 884,511 380,255 865,900 263,443 Other interest-earning assets — — — 30,750 Non-rate-sensitive assets 13,126 — — 70,570 Total assets 955,199 432,827 1,012,346 736,866 Interest-bearing deposits 1,237,011 449,034 252,518 446,291 Borrowed funds 92,321 25,000 70,500 — Non-rate-sensitive liabilities and equity — — — 564,563 Total liabilities and equity 1,329,332 474,034 323,018 1,010,854 Period gap $ (374,133) $ (41,207) $ 689,328 $ (273,988) Percent of total assets (11.93) % (1.31) % 21.97 % (8.73) % Cumulative gap (current) $ (374,133) $ (415,340) $ 273,988 $ — Percent of total assets (11.93) % (13.24) % 8.73 % — % The earnings simulation model forecasts capture the impact of changing interest rates on one-year and two-year net interest income.
A summary of the Bank's interest rate risk simulation modeling, as of December 31, 2024 and 2023 is presented in the following table: Changes in Net Interest Income 2024 2023 Year 1 Projected changes if rates decrease by 1.0% 1.7% 2.0% Projected changes if rates decrease by 2.0% 2.8% 3.7% Projected change if rates increase by 2.0% (4.2)% (6.0)% Year 2 Projected changes if rates decrease by 1.0% 17.8% 20.8% Projected changes if rates decrease by 2.0% 19.1% 23.8% Projected change if rates increase by 2.0% 2.6% 0.7% This dynamic simulation model includes assumptions about how the balance sheet is likely to evolve through time and in different interest rate environments.
A summary of the Bank's interest rate risk simulation modeling, as of December 31, 2025 and 2024 is presented in the following table: Changes in Net Interest Income 2025 2024 Year 1 Projected changes if rates decrease by 1.0% 1.8% 1.7% Projected changes if rates decrease by 2.0% 3.4% 2.8% Projected change if rates increase by 2.0% (4.0)% (4.2)% Year 2 Projected changes if rates decrease by 1.0% 13.2% 17.8% Projected changes if rates decrease by 2.0% 15.3% 19.1% Projected change if rates increase by 2.0% 2.6% 2.6% This dynamic simulation model includes assumptions about how the balance sheet is likely to evolve through time and in different interest rate environments.
It does so by comparing the differences in the repricing characteristics of assets and liabilities. A gap is defined as the difference between the principal amount of assets and liabilities which reprice within a specified time period. The cumulative one-year gap, at December 31, 2024, was (15.98)% of total assets, compared to (11.54)% of total assets at December 31, 2023.
It does so by comparing the differences in the repricing characteristics of assets and liabilities. A gap is defined as the difference between the principal amount of assets and liabilities which reprice within a specified time period. The cumulative one-year gap, at December 31, 2025, was (13.24)% of total assets, compared to (15.98)% of total assets at December 31, 2024.
In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in the first year of a stable rate environment by 19.1% in the two percentage point falling-rate scenario, and higher by 17.8% in the one percentage point falling rate scenario; net interest income would be higher than that earned in a stable rate environment by 2.6% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in the first year of a stable rate environment by 15.3% in the two percentage point falling-rate scenario, and higher by 13.2% in the one percentage point falling rate scenario; net interest income would be higher than that earned in a stable rate environment by 2.6% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
The Company's most recent simulation model calculates projected impact on net interest income in scenarios where short-term interest rates gradually decrease by two percentage points, gradually decreases by one percentage point, and where short- term rates gradually increase by two percentage points.
The Company's most recent simulation model calculates projected impact on net interest income in scenarios where short-term interest rates gradually decrease by two percentage points, gradually decreases by one percentage point, and where short- The First Bancorp - 2025 Form 10-K - Page 47 term rates gradually increase by two percentage points.
The Company's modeling as of December 31, 2024 projects net interest The First Bancorp - 2024 Form 10-K - Page 47 income would increase by approximately 2.8% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 1.7% if short term rates gradually fall by one percentage point over the next year; net interest income would decrease by approximately 4.2% if rates rise gradually by two percentage points over the next year.
The Company's modeling as of December 31, 2025 projects net interest income would increase by approximately 3.4% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 1.8% if short term rates gradually fall by one percentage point over the next year; net interest income would decrease by approximately 4.0% if rates rise gradually by two percentage points over the next year.
As of December 31, 2024, the Company was using interest rate swaps for interest rate risk management. See Notes 14 and 19 of the accompanying financial statements for additional discussion of derivative usage. The Company engages an independent consultant to periodically review its interest rate risk position, as well as the effectiveness of simulation modeling and reasonableness of assumptions used.
As of December 31, 2025, the Company was using interest rate swaps and interest rate caps for interest rate risk management. See Notes 14 and 19 of the accompanying financial statements for additional discussion of derivative usage.
As of December 31, 2024, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure. Management expects interest rates will increase in the next year and believes that the current level of interest rate risk is acceptable. The First Bancorp - 2024 Form 10-K - Page 48
Management expects interest rates will remain flat or decrease slightly in the next year, and believes that the current level of interest rate risk is acceptable. The First Bancorp - 2025 Form 10-K - Page 48
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The Company engages an independent consultant to periodically review its interest rate risk position, as well as the effectiveness of simulation modeling and reasonableness of assumptions used. As of December 31, 2025, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure.

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