Think of FNLC as:

• Bank of America for Mid-Coast and Eastern Maine.
• A localized Wells Fargo, serving communities across several counties in Maine.

• Deposit Accounts: Offers various deposit products including demand, NOW, savings, money market, and certificates of deposit accounts.
• Commercial Loans: Provides loans for commercial real estate, commercial construction, working capital, capital investment, and municipal projects.
• Residential & Consumer Loans: Offers home mortgages, residential construction loans, home equity loans and lines of credit, and consumer loans for vehicles and other personal needs.
• Wealth Management & Trust Services: Delivers private banking, financial planning, investment management, and trust services to individuals and organizations.
• Payment Processing Services: Facilitates payment processing for businesses and other entities.

First Bancorp (FNLC) primarily serves a diverse customer base, rather than a few major named companies. Its customers can be categorized as follows:

1. Individuals: This category includes consumers and households who utilize a variety of banking products and services such as demand, NOW, savings, money market, and certificates of deposit accounts. They also receive residential term loans (home mortgages, construction loans), home equity loans and lines of credit, and consumer loans (collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes). Additionally, individuals benefit from private banking, financial planning, investment management, and trust services.
2. Businesses and Corporate Enterprises: This segment comprises various commercial entities that obtain commercial real estate loan products (including financing for multi-family residential, commercial/retail, office, industrial, hotel, educational, and mixed-use properties), commercial construction loans, and other commercial loans (revolving and term loans for working capital or capital investment). They also use deposit accounts, private banking, financial planning, investment management, trust services, and payment processing services.
3. Non-profit Organizations and Municipalities: These entities are provided with municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes. They also access private banking, financial planning, investment management, and trust services tailored to their specific needs.

Tony C. McKim, President and Chief Executive Officer

Tony C. McKim was appointed President and Chief Executive Officer of The First Bancorp and First National Bank in January 2015. He joined First National Bank in 1992 after working for a public accounting firm. Prior to the merger of FNB Bankshares and The First National Bank of Damariscotta in 2005, Mr. McKim served as President and Chief Executive Officer of FNB Bankshares (Maine). Following the merger, he was Executive Vice President and Chief Operating Officer of the combined entity. He holds a bachelor's degree in Business Administration from the University of Maine Orono.

Richard M. Elder, Treasurer and Chief Financial Officer

Richard M. Elder has served as Treasurer and Chief Financial Officer of The First Bancorp since 2018. He is also currently the Executive Vice President and Chief Financial Officer of First National Bank.

Christopher J. Austin, Clerk and Executive Vice President, Chief Legal Counsel

Christopher J. Austin was appointed Clerk of The First Bancorp in 2025 and has served as Executive Vice President and Chief Legal Counsel of First National Bank since 2024. Before joining First National Bank, Mr. Austin had a 26-year tenure at Rudman Winchell, a law firm in Bangor, Maine, where he specialized in real estate, commercial lending, and corporate law.

Jody Brown, Executive Vice President, Chief Risk Officer

Jody Brown was promoted to Executive Vice President, Chief Risk Officer in February 2025. She has been with First National Bank since 2002, previously holding the position of Senior Vice President, Senior Credit Officer. Ms. Brown is a University of Maine Orono graduate with a concentration in Accounting, holds a CPA designation, and completed her banking education at the New England School of Banking in 2005.

Marcia Benner, Executive Vice President, Chief Administrative Officer

Marcia Benner was appointed Executive Vice President, Chief Administrative Officer in February 2025. She joined First National Bank in 2021 as Senior Vice President, Human Resources Officer, following a 19-year tenure at Damariscotta Bank and Trust. Ms. Benner holds a Master of Science in Organizational Leadership from Southern New Hampshire University and is a Senior Certified Professional (SHRM-SCP), having also graduated from The New England School for Financial Studies in 2018.

• Commercial and Commercial Real Estate (CRE) Loan Concentration Risk: A primary risk for First Bancorp is its substantial concentration in commercial and commercial real estate loans. Management specifically highlights credit risks tied to these concentrations. The company's loan book is predominantly geared towards commercial borrowers, with approximately 33% of its entire loan book related to CRE. There has been scrutiny over loan book quality due to an increase in past-due loans, mainly within the CRE segment. Any significant rise in delinquent loans, particularly those 60 days or more past due, could negatively impact investor sentiment and share price. The increasing use of loan restructuring options in the commercial and multifamily segments may also signal stress among borrowers.
• Interest Rate Risk: As with most banks, First Bancorp is exposed to interest rate risk. Management identifies interest rate risks as a key factor. A prolonged period of elevated interest rates could lead to a contraction or disappearance of margins, particularly because many loans were originated during a decade of lower rates. While consistent loan volume growth at current rates helps mitigate this, the overall interest rate environment remains a significant risk.
• Regulatory and Climate-Related Risks: First Bancorp is subject to regulatory and compliance risks, which include emerging climate-related mandates. Management specifically highlights regulatory and climate-related risks. Potential future legislative or regulatory changes concerning climate risk management and practices could lead to increased regulatory, compliance, credit, and reputational costs and risks, potentially affecting the company's activities and product offerings. Furthermore, any future changes in regulatory requirements for loan loss accounting or capital could impact reported earnings and capital adequacy.

The rise of digital-first banks and fintech companies offering a purely online or mobile banking experience, often with lower fees, higher interest rates on deposits, and greater convenience, threatens FNLC's traditional branch-based banking model and its ability to attract and retain customers, particularly in deposit gathering and consumer lending.

Addressable Market Sizes for First Bancorp (FNLC)

• Deposit Products: The total deposits in all banks in Maine were approximately $44.2 billion as of June 30, 2024, and June 9, 2025. The commercial banking industry in Maine had a market size of $4.2 billion in 2026. (Region: Maine, U.S.)
• Commercial Real Estate Loan Products and Other Commercial Loans: Maine banks provided $3.6 billion in loans to businesses and $2.3 billion in residential and commercial real estate loans in a recent survey, likely pertaining to 2024. (Region: Maine, U.S.)
• Municipal Loans: null
• Residential Term Loans (Home Mortgages and Construction Loans): New home loans booked in Maine totaled $3.4 billion in 2024. (Region: Maine, U.S.)
• Home Equity Loans and Lines of Credit: null
• Consumer Loans: null
• Private Banking, Financial Planning, Investment Management, and Trust Services: In Maine, several investment advisory firms manage significant assets. For example, R.M. Davis Inc. has over $8.3 billion in assets under management (AUM), HM Payson & Co. has over $5.18 billion in AUM, and Vigilant Capital Management, LLC has over $1.7 billion in AUM. Another firm, Great Diamond Partners, had client assets under management of just under $800 million as of 2025. A national firm with a presence in Maine reported over $40.5 billion in assets under management as of September 30, 2025. (Region: Maine, U.S.)
• Payment Processing Services: null

First Bancorp (FNLC) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Net Interest Margin Expansion and Net Interest Income Growth: The company has demonstrated strong performance in expanding its net interest margin (NIM) and increasing net interest income (NII). This growth is attributed to effective management of deposit costs and improving yields on its loan and securities portfolios. For instance, FNLC's Q4 2025 results were significantly driven by net interest margin expansion, with net interest income increasing by 21.1% in 2025. This trend is expected to continue as the company actively manages its interest-earning assets and interest-bearing liabilities.
2. Loan Portfolio Expansion: First Bancorp has shown consistent growth in its loan portfolio, which directly contributes to its net interest income. The company increased its total loans by $53.2 million, or 2.3%, during 2025. There was also strong annualized loan growth of 9% in Q3 2025 and 13.6% in Q2 2024. This expansion across various loan products, including commercial real estate, residential, and consumer loans, is a key driver for future revenue.
3. Growth in Non-Interest Revenue: Beyond traditional lending, First Bancorp is focusing on increasing its non-interest income. This includes growth in wealth management revenue and debit card revenue. Non-interest revenue increased by 6.0% in 2025, with notable increases in wealth management revenue and debit card revenue in Q4 2025. The company continues to benefit from investment management and fiduciary income, which are components of this revenue stream.
4. Core Deposit Growth: While not a direct revenue driver, the growth in core deposits provides a stable and cost-effective funding source for the bank's lending activities, thereby supporting net interest income. First Bancorp saw core deposits increase by $21.5 million from Q3 2025 and $77.0 million year-over-year in 2025. A strong and growing deposit base allows the bank to fund its loan growth more efficiently, positively impacting overall profitability and revenue.

Share Repurchases

• The company's board of directors approved a share repurchase program on February 7, 2022, authorizing the purchase of up to $5.0 million of its common stock on the open market.
• As of September 24, 2024, approximately 1,670,718 shares had been repurchased under the 2022 plan, at an aggregate cost of about $4,650,000.
• On December 12, 2024, the share repurchase program was expanded by an additional $2.0 million, bringing the total authorized amount to $7.0 million. However, as of the 2025 10-K filing, there was no currently active share repurchase program or active trading plans.

Share Issuance

• As of December 31, 2025, First Bancorp had 11,222,363 common shares outstanding.
• The number of shares outstanding increased by 0.0% in the fourth quarter of 2025, indicating no significant new share issuance during that period.

Capital Expenditures

• First Bancorp invested $1.4 million in capital expenditures during the fourth quarter of 2025. This marked a substantial increase of 379.6% from the prior quarter.
• The company's last 12-month Capex to Operating Cash Flow stood at 15.6%, with a 5-year average of 6.8%, reflecting the proportion of cash flow reinvested into the business.