# First Bancorp, Inc /ME/ (FNLC)

Informational only - not investment advice.

CIK: 0000765207
SIC: 6021 National Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6021 National Commercial Banks](/industry/6021/)
Latest 10-K filed: 2026-03-06
SEC page: https://www.sec.gov/edgar/browse/?CIK=765207
Filing source: https://www.sec.gov/Archives/edgar/data/765207/000076520726000067/fnlc-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-06 · accession 0000765207-26-000067 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000765207.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 160,271,000 USD | 2025 | verified |
| Net income | 34,394,000 USD | 2025 | verified |
| Assets | 3,166,303,000 USD | 2025 | verified |
| Free cash flow | 34,594,000 USD | 2025 | computed |
| Net margin | 21.46% | 2025 | computed |
| Revenue YoY | +7.69% | 2025 | computed |
| ROE | 12.15% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | FNLC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 21.5% | 22.9% | 37 | 76 |
| Revenue growth | 7.7% | 5.2% | 69 | 76 |
| FCF margin | 21.6% | 22.0% | 47 | 65 |
| ROE | 12.1% | 9.9% | 83 | 76 |
| ROA | 1.1% | 1.1% | 49 | 76 |
| Liabilities / equity | 10.18 | 8.12 | 83 | 76 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6021 National Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 160271000 | USD | 2025 | 2026-03-06 |
| Net income | 34394000 | USD | 2025 | 2026-03-06 |
| Assets | 3166303000 | USD | 2025 | 2026-03-06 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000765207.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 53,759,000 | 60,832,000 | 70,543,000 | 78,651,000 | 77,119,000 | 77,081,000 | 93,035,000 | 128,174,000 | 148,832,000 | 160,271,000 |
| Net income | 18,009,000 | 19,588,000 | 23,536,000 | 25,525,000 | 27,129,000 | 36,269,000 | 38,990,000 | 29,518,000 | 27,045,000 | 34,394,000 |
| Diluted EPS | 1.66 | 1.81 | 2.17 | 2.34 | 2.48 | 3.30 | 3.53 | 2.66 | 2.43 | 3.07 |
| Operating cash flow | 21,190,000 | 22,273,000 | 33,840,000 | 26,053,000 | 22,698,000 | 56,693,000 | 41,213,000 | 36,919,000 | 26,047,000 | 37,814,000 |
| Capital expenditures | 2,131,000 | 2,529,000 | 1,484,000 | 1,573,000 | 2,540,000 | 3,757,000 | 1,404,000 | 2,635,000 | 1,475,000 | 3,220,000 |
| Dividends paid | 9,810,000 | 11,460,000 | 12,052,000 | 12,963,000 | 13,329,000 | 13,948,000 | 14,779,000 | 15,418,000 | 15,803,000 | 16,347,000 |
| Share buybacks | 129,000 | 154,000 | 168,000 | 183,000 | 156,000 | 253,000 | 277,000 | 250,000 | 212,000 | 282,000 |
| Assets | 1,712,875,000 | 1,842,930,000 | 1,944,570,000 | 2,068,796,000 | 2,361,236,000 | 2,527,099,000 | 2,739,178,000 | 2,946,698,000 | 3,157,010,000 | 3,166,303,000 |
| Liabilities | 1,540,354,000 | 1,661,609,000 | 1,753,028,000 | 1,856,288,000 | 2,137,510,000 | 2,281,442,000 | 2,510,255,000 | 2,703,619,000 | 2,904,517,000 | 2,883,160,000 |
| Stockholders' equity | 172,521,000 | 181,321,000 | 191,542,000 | 212,508,000 | 223,726,000 | 245,657,000 | 228,923,000 | 243,079,000 | 252,493,000 | 283,143,000 |
| Free cash flow | 19,059,000 | 19,744,000 | 32,356,000 | 24,480,000 | 20,158,000 | 52,936,000 | 39,809,000 | 34,284,000 | 24,572,000 | 34,594,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 33.50% | 32.20% | 33.36% | 32.45% | 35.18% | 47.05% | 41.91% | 23.03% | 18.17% | 21.46% |
| Return on equity | 10.44% | 10.80% | 12.29% | 12.01% | 12.13% | 14.76% | 17.03% | 12.14% | 10.71% | 12.15% |
| Return on assets | 1.05% | 1.06% | 1.21% | 1.23% | 1.15% | 1.44% | 1.42% | 1.00% | 0.86% | 1.09% |
| Liabilities / equity | 8.93 | 9.16 | 9.15 | 8.74 | 9.55 | 9.29 | 10.97 | 11.12 | 11.50 | 10.18 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000765207.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.91 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.72 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.67 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 33,254,000 | 7,474,000 | 0.67 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 34,822,000 | 6,679,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 34,988,000 | 6,021,000 | 0.54 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 36,558,000 | 6,171,000 | 0.55 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 38,287,000 | 7,571,000 | 0.68 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 38,999,000 | 7,282,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 38,709,000 | 7,077,000 | 0.63 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 39,825,000 | 8,063,000 | 0.72 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 41,005,000 | 9,082,000 | 0.81 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 40,732,000 | 10,172,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 39,139,000 | 8,993,000 | 0.80 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 39,839,000 | 9,560,000 | 0.85 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Risk Factors

Verbatim Item 1A Risk Factors from FNLC's latest 10-K: [/company/FNLC/risk-factors/](/company/FNLC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/765207/000076520726000106/fnlc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-07
Report date: 2026-06-30

Item 2 – Management's Discussion and Analysis of Financial Condition

and Results of Operations

The First Bancorp, Inc. and Subsidiary

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. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties and other factors may cause the actual results, performance or achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following: changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectability, default and charge-off rates, changes in the size and nature of the Company's competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under "Risk Factors" in Item 1A of this Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC, may result in these differences, as well as the "Risk Factors" in Part II, Item 1A listed below. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this quarterly report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. Readers are also urged to carefully review and consider the various disclosures made by the Company, which attempt to advise interested parties of the factors that affect the Company's business.

Critical Accounting Policies

Management's discussion and analysis of the Company's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of such financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, Management evaluates its estimates, including those related to the ACL, fair value of securities, goodwill, the valuation of mortgage servicing rights, derivative financial instruments, and credit losses on securities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets that are not readily apparent from other sources. Actual results could differ from the amounts derived from Management's estimates and assumptions under different assumptions or conditions.

Allowance for Credit Losses. Management believes the ACL requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements. The ACL is based on Management's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio, off-balance sheet commitments, and investment portfolio.

Management regularly evaluates the allowance, typically monthly, to determine the appropriate level by taking into consideration factors such as the size and growth trajectory of the portfolio, quality trends as measured by key indicators, prior loan loss experience in major portfolio segments, local and national business conditions, economic forecasts, the results of any stress testing undertaken during the period, and Management's estimation of potential losses. Period-to-period changes to any or all of these of these factors could change the level of ACL required, in turn impacting our level of provision expense and ultimately our net income. Similarly, the use of different estimates or assumptions could produce different provisions for credit losses which would likely result in changes to the Company's net income.

53

In the six months ended June 30, 2026 the ACL-Loans decreased by $810,000, the ACL-Off-Balance Commitments decreased by $12,000 and the ACL-HTM Securities decreased by $3,000. Further discussion of the ACL may be found in Note 2, "Investment Securities", Note 3, "Loans", and Note 4, "Allowance for Credit Losses", to the consolidated financial statements contained in Item 1 of the Form 10-Q.

Goodwill. Management utilizes numerous techniques to estimate the value of various assets held by the Company, including methods to determine the appropriate carrying value of goodwill as required under FASB ASC Topic 350 "Intangibles – Goodwill and Other." In addition, goodwill from a purchase acquisition is subject to ongoing periodic impairment tests, which include an evaluation of the ongoing assets, liabilities and revenues from the acquisition and an estimation of the impact of business conditions.

Fair Value of Securities. Determining a market price for securities carried at fair value is a critical accounting estimate in the Company's financial statements. Pricing of individual securities is subject to a number of factors including changes in market interest rates, changes in prepayment speeds and assumptions, changes in market tolerance for risk, and any changes in the risk profile of the security. 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. Results of the validation are reported to the ALCO each quarter and any variances between the two sources above defined thresholds are investigated by management. A finding that the Company's methodology for valuation of its investment securities is materially incorrect could result in changes to the carrying value of securities on its balance sheet and corresponding changes in shareholders equity position. As of June 30, 2026 the fair value of AFS securities increased by $11.6 million and the fair value of HTM securities decreased by $4.3 million from that of December 31, 2025. The increase in the fair value of AFS securities is attributable to new purchases, and partially offset by a combination of rate-driven market price adjustments for the underlying securities, and principal returned via maturity, call, sale, or amortization. The decrease in the fair value of HTM securities is attributable to a combination of rate-driven price adjustments for the underlying securities and principal return via call or maturity. Further discussion of the fair value of securities may be found in Note 2, "Investment Securities", to the consolidated financial statements contained in Item 1 of the Form 10-Q.

Credit Loss Recognition on Securities. Another significant estimate related to investment securities is the evaluation of potential credit losses on investment securities. The evaluation of securities for potential credit losses is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized as a charge to the ACL. The risks and uncertainties include changes in general economic conditions, the issuer's financial condition and/or future prospects, the effects of changes in interest rates or credit spreads and the expected recovery period of unrealized losses. Securities that are in an unrealized loss position are reviewed at least quarterly to determine if recognition of a loss is required. The primary factors considered in this evaluation (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 period of time sufficient to allow for recovery, which may be at maturity and (f) any other information and observable data considered relevant, including the expectation of receipt of all principal and interest when due. The Bank invests only in investment grade securities and no credit losses have been recognized on securities currently held. Further discussion of credit loss recognition on securities may be found in Note 2, "Investment Securities", to the consolidated financial statements contained in Item 1 of the Form 10-Q.

Derivative Financial Instruments Designated as Hedges. The Company recognizes all derivatives in the consolidated balance sheets at fair value. On the date a derivative contract is entered into, the derivative is designated as a hedge of either a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or a held for trading instrument (“trading instrument”). The relationships between hedging instruments and hedged items is formally documented, as is the risk management objectives and strategy for undertaking various hedge transactions. Both at the hedge’s inception and on an ongoing basis, determination is made as to whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows or fair values of hedged items. 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 that qualifies as a fair value hedge and the change in fair value of the hedged item are both recorded in earnings and offset each other when the transaction is effective. Those derivatives that are classified as trading instruments, including customer loan swaps, are recorded at fair value with changes in fair value recorded in earnings. Hed

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/765207/000076520726000067/fnlc-20251231.htm
Complete FY 2025 MD&A: /company/FNLC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-06
Report date: 2025-12-31

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company was incorporated in the State of Maine on January 15, 1985, and is the parent holding company of the Bank. On January 28, 2016, the Board of Directors voted to change the Bank's name to First National Bank from The First, N.A.

The Company generates almost all of its revenues from the Bank, which was chartered as a national bank under the laws of the United States on May 30, 1864. The Bank, which has eighteen offices along coastal and eastern Maine, emphasizes personal service to the communities it serves, concentrating primarily on small businesses and individuals.

The Bank offers a wide variety of traditional banking services and derives the majority of its revenues from net interest income – the spread between what it earns on loans and investments and what it pays for deposits and borrowed funds. While net interest income typically increases as earning assets grow, the spread can vary up or down depending on the level and direction of movements in interest rates. Management believes the Bank has moderate exposure to changes in interest rates, as discussed in "Interest Rate Risk Management" elsewhere in Management's Discussion.

Non-interest income is the Bank's secondary source of revenue and includes fees and service charges on deposit accounts and services, interchange from debit cards, income from the sale and servicing of mortgage loans, and income from investment management and private banking services through First National Wealth Management (previously First Advisors), a division of the Bank.

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.

[[GREPCENT_TABLE]]
[["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."],["FRB","Federal Reserve Board","U.S.","United States of America"],["FRBB","Federal Reserve Bank of Boston","USD","U.S. Dollar"],["GAAP","Accounting principles generally accepted in the U.S.","WSJP","Wall Street Journal Prime"]]
[[/GREPCENT_TABLE]]

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. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. 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.

Some of the factors that might cause these differences include the following: changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectability, default and charge-off rates, changes in the size and nature of the Company's competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under "Risk Factors" in Item 1A of this Annual Report on Form 10-K may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this annual report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. Readers are also urged to carefully review and consider the various disclosures made by the Company, which attempt to advise interested parties of the factors that affect the Company's business.

Critical Accounting Policies and Estimates

The Company's significant accounting policies are described in Note 1, "Summary of Significant Accounting Policies," to the consolidated financial statements contained in Item 8, "Financial Statements and Supplementary Data," of this Form 10-K. In applying these accounting policies, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. Certain of the critical accounting estimates are more dependent on such judgment and in some cases may contribute to volatility in the Company's reported financial performance should the assumptions and estimates used be incorrect or change over time due to changes in circumstances.

Management's discussion and analysis of the Company's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of such financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, Management evaluates its estimates, including those related to the ACL, fair value of securities, goodwill, the valuation of mortgage servicing rights, derivative financial instruments, and other-than-temporary impairment on securities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets that are not readily apparent from other sources. Actual results could differ from the amounts derived from Management's estimates and assumptions under different assumptions or conditions.

Allowance for Credit Losses. Management believes the ACL requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements. The ACL is based on Management's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio, off-balance sheet commitments, and investment portfolio.

Management regularly evaluates the allowance, typically monthly, to determine the appropriate level by taking into consideration factors such as the size and growth trajectory of the portfolio, quality trends as measured by key indicators, prior loan loss experience in major portfolio segments, local and national business conditions, economic forecasts, the results of any stress testing undertaken during the period, and Management's estimation of potential losses. Period-to-period changes to any or all of these of these factors could change the level of ACL required, in turn impacting our level of provision expense and ultimately our net income. Similarly, the use of different estimates or assumptions could produce different provisions for credit losses which would likely result in changes to the Company's net income. In the12 months ended December 31, 2025, the ACL-Loans increased by $494,000, the ACL-Off-Balance Commitments decreased by $149,000 and the ACL-HTM Securities decreased by $50,000. Further discussion of the ACL may be found in Note 3, "Investment Securities", Note 5, "Loans" and Note 6, "Allowance for Credit Losses", to the consolidated financial statements contained in Item 8 of the Form 10-K.

The First Bancorp - 2025 Form 10-K - Page 23

Fair Value of Securities. Determining a market price for securities carried at fair value is a critical accounting estimate in the Company's financial statements. Pricing of individual securities is subject to a number of factors including changes in market interest rates, changes in prepayment speeds and assumptions, changes in market tolerance for risk, and any changes in the risk profile of the security. 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. Results of the validation are reported to the ALCO each quarter and any variances between the two sources above defined thresholds are investigated by management. A finding that the Company's methodology for valuation of its investment securities is materially incorrect could result in changes to the carrying value of securities on its balance sheet and corresponding changes in shareholders equity position. As of December 31, 2025 the fair value of AFS securities decreased by $10.2 million and the fair value of HTM securities increased by $489,000 from that of December 31, 2024. These changes are due to a combination of rate-driven market price adjustments for the underlying securities and reinvestment of incoming cash flow to other segments of the balance sheet. Further discu

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/FNLC/mda/fy2025/
All MD&A years: /company/FNLC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/FNLC/mda/fy2024/): filed 2025-03-07; accession 0000765207-25-000018 (https://www.sec.gov/Archives/edgar/data/765207/000076520725000018/fnlc-20241231.htm)
- [FY 2023 MD&A](/company/FNLC/mda/fy2023/): filed 2024-03-08; accession 0000765207-24-000010 (https://www.sec.gov/Archives/edgar/data/765207/000076520724000010/fnlc-20231231.htm)
- [FY 2022 MD&A](/company/FNLC/mda/fy2022/): filed 2023-03-10; accession 0000765207-23-000010 (https://www.sec.gov/Archives/edgar/data/765207/000076520723000010/fnlc-20221231.htm)
- [FY 2021 MD&A](/company/FNLC/mda/fy2021/): filed 2022-03-11; accession 0000765207-22-000010 (https://www.sec.gov/Archives/edgar/data/765207/000076520722000010/fnlc-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6021 National Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/FNLC.md · JSON record: /company/FNLC.json · verified financials: /company/FNLC/financials.json / /company/FNLC/financials.csv · machine TOC for the whole site: /llms.txt