Employee Management and Development - As of December 31, 2021, the company had 269 employees, with a full-time equivalency of 267 employees, primarily located in Maine[66] - The company emphasizes employee development, providing extensive training and development opportunities, including participation in industry seminars and advanced education programs[68] - The company has a comprehensive annual incentive compensation plan aimed at attracting and retaining employees, which has been in place since 1994[67] - The company views succession planning as a priority, updating plans annually for all management roles to identify short and long-term successors[71] Financial Condition and Risks - The company had $320.6 million in available-for-sale investment securities and $370.0 million in held-to-maturity investment securities as of December 31, 2021[89] - The company relies on commercial and retail deposits for funding, with a significant risk of losing low-cost funding sources, which could lead to margin compression and decreased net interest income[91] - The company faces risks related to interest rate volatility, which could materially affect its financial condition and results of operations[88] - The company’s loan portfolio is largely secured by real estate collateral, making it vulnerable to declines in real estate values in its primary market area[95] - The company’s ability to fund operations may be jeopardized by illiquidity, which could have a substantial negative effect on its financial condition[90] - Economic conditions, including the impact of COVID-19, have created uncertainty regarding the company's loan portfolio and potential charge-offs[109] - The company is subject to risks associated with global economic events, which could negatively impact liquidity and financial condition[110] - The transition from LIBOR to alternative reference rates like SOFR may disrupt financial markets and impact the company's financial condition[111] Investment and Market Risks - The company’s investment management revenues are directly tied to the asset values of investments managed for clients, which may fluctuate due to market conditions[96] - The company faces risks of stock price fluctuations due to various factors, including quarterly operating results and changes in investor expectations[119] - The market price of the company's common stock is subject to volatility due to extreme price and volume fluctuations in the stock market[120] Regulatory and Compliance Issues - The company faces increased regulatory scrutiny and compliance costs due to changes in consumer protection laws and the Dodd-Frank Act[113] - The company complied with Basel III capital requirements well in advance of the completion date as of December 31, 2021[114] - Regulatory restrictions limit the amount of dividends that the Bank can pay, impacting the company's cash flow[121] Security and Fraud Risks - The company has made substantial investments in communications and information systems to support business operations, with a focus on preventing security breaches and fraud attacks[101] - There has been no material adverse effect on the company's business or operations due to security risks to date, but costs related to preventing and addressing such threats continue to increase[103] - The company issues EMV/Chip debit cards to minimize fraud risk, but online fraud and fallback transactions still pose potential liabilities[104] - The company maintains reserves for claims and legal actions, which could adversely affect financial condition and results of operations if not resolved favorably[105] Corporate Strategy and Shareholder Value - The company operates in a highly competitive financial services industry, facing pressure from larger institutions and recent mergers[116] - The average monthly trading volume of the company's common stock for the year ended December 31, 2021, was 356,686 shares, representing approximately 3.25% of the average number of outstanding shares[117] - The inability to receive dividends from the Bank could negatively impact the company's ability to pay dividends to shareholders[121] - The company may issue additional equity securities, which could dilute book value and adversely affect the market price of common stock[123] - Potential acquisitions may disrupt the company's business and dilute shareholder value, with risks including exposure to unknown liabilities and integration challenges[124] - The company aims to generate a competitive return on average equity, but failure to manage excess capital strategically could delay this goal[122] - The company may face challenges in estimating the value of assets and liabilities during potential acquisitions, which could affect financial performance[125] - The company is not restricted from issuing additional shares of common stock, which could lead to dilution for existing shareholders[123]

Financial Performance - Net income for the nine months ended September 30, 2021, was $26,723,000, a 32.5% increase compared to $20,159,000 for the same period in 2020[13]. - Basic earnings per common share increased to $2.45 for the nine months ended September 30, 2021, compared to $1.86 for the same period in 2020[13]. - Net interest income for the nine months ended September 30, 2021, was $48,607,000, up 10.3% from $44,154,000 for the same period in 2020[13]. - Non-interest income totaled $14,584,000 for the nine months ended September 30, 2021, an increase of 7.0% from $13,627,000 in the same period of 2020[13]. - The non-GAAP efficiency ratio for the nine months ended September 30, 2021, improved to 45.04%, compared to 50.00% for the same period in 2020[176]. - The GAAP efficiency ratio for the quarter ended September 30, 2021, was 46.44%, down from 47.45% in the same quarter of 2020[176]. - Net income for the nine months ended September 30, 2021 was $26.7 million, up $6.6 million or 32.6% from the same period in 2020[179]. - Earnings per common share on a fully diluted basis were $2.43 for the nine months ended September 30, 2021, up $0.59 or 32.1% from $1.84 in 2020[179]. Asset and Loan Growth - Total assets increased to $2,529,591,000 as of September 30, 2021, up from $2,361,236,000 at December 31, 2020, representing a growth of 7.1%[12]. - Net loans reached $1,599,705,000, an increase of 9.5% compared to $1,460,508,000 at the end of 2020[12]. - Total deposits rose to $2,033,213,000, reflecting a 10.2% increase from $1,844,611,000 at December 31, 2020[12]. - The loan portfolio totaled $1,617,212,000 as of September 30, 2021, reflecting an increase from $1,476,761,000 at December 31, 2020[36]. - The company reported a net increase in demand, savings, and money market accounts of $279,620,000 for the nine months ended September 30, 2021, compared to $212,641,000 in the same period of 2020[17]. Loan Loss Provisions and Credit Quality - The provision for loan losses decreased to $1,575,000 for the nine months ended September 30, 2021, down from $4,550,000 in the same period of 2020[13]. - The total allowance for loan losses as of September 30, 2021, was $17,507,000, which includes specific reserves of $682,000 and general reserves of $2,004,000[64]. - The total past-due loans amounted to $4,118,000 as of September 30, 2021, with 90+ days past due loans totaling $229,000[37]. - Non-accrual loans as of September 30, 2021, totaled $6,145,000, a decrease from $6,721,000 at December 31, 2020[40]. - The company noted that the tourism industry in its primary market, the State of Maine, is showing signs of a strong rebound in 2021 following the adverse impacts of COVID-19 in 2020[22]. Securities and Investments - As of September 30, 2021, the fair value of investment securities was $309,224,000, with an amortized cost of $310,018,000, resulting in unrealized losses of $4,516,000[25]. - The fair value of mortgage-backed securities available for sale was $247,253,000 as of September 30, 2021, down from $243,406,000 at December 31, 2020[25]. - The total amortized cost of securities available for sale was $307,036,000, with a fair value of $313,376,000 as of December 31, 2020[26]. - The company reported gross realized gains of $627,000 and gross realized losses of $605,000 for the nine months ended September 30, 2021[29]. - The company’s investment securities included $8,839,000 in restricted equity securities as of September 30, 2021[25]. Capital and Equity - Total shareholders' equity increased to $238,737,000 as of September 30, 2021, up from $219,440,000 at September 30, 2020, reflecting a growth of 8.7%[15]. - The company's total risk-based capital ratio was 14.48% as of September 30, 2021, above the well-capitalized threshold of 10.0%[187]. - The return on average tangible common equity was 17.62% for the nine months ended September 30, 2021, compared to 14.27% for the same period in 2020[188]. Expenses and Dividends - Total non-interest expense remained relatively stable at $29,302,000 for the nine months ended September 30, 2021, compared to $29,236,000 in the same period of 2020[13]. - Cash dividends declared per share increased to $0.95 for the nine months ended September 30, 2021, compared to $0.92 for the same period in 2020[15]. - The expense related to the 401(k) plan was $593,000 for the nine months ended September 30, 2021, down from $653,000 in the same period in 2020[105]. Interest Rate and Risk Management - The Bank's interest rate risk management strategy aims to minimize significant fluctuations in earnings and cash flows due to interest rate volatility[114]. - The anticipated prepayment rate for mortgage servicing rights was 12.48%, with a discount rate of 9.00% as of September 30, 2021[124]. - The fair value of interest rate swaps is determined using observable market inputs and classified as Level 2[140]. Regulatory and Compliance - The company is in the late stages of implementing a software solution for the new accounting standard ASU No. 2016-13, which may have a material impact on its consolidated financial statements[157]. - The company continues to evaluate the impact of the adoption of ASU No. 2016-13 on its financial statements, indicating proactive management of potential changes in credit loss recognition[157].

Financial Performance - Net income for the six months ended June 30, 2021, was $17,709,000, compared to $13,064,000 for the same period in 2020, an increase of 35.5%[13] - Basic earnings per common share increased to $1.63 for the six months ended June 30, 2021, up from $1.20 in the prior year, representing a growth of 35.8%[13] - Net interest income after provision for loan losses was $30,546,000 for the six months ended June 30, 2021, up from $26,659,000 in the same period of 2020, reflecting a growth of 14.0%[13] - Non-interest income for the six months ended June 30, 2021, was $10,209,000, compared to $8,822,000 in the same period of 2020, reflecting a growth of 15.7%[13] - Total comprehensive income for the six months ended June 30, 2021, was $16,759,000, compared to $10,259,000 for the same period in 2020, indicating a growth of 63.5%[15] Asset Growth - Total assets increased to $2,450,443,000 as of June 30, 2021, up from $2,361,236,000 at December 31, 2020, representing a growth of 3.7%[12] - Total deposits reached $1,961,321,000 as of June 30, 2021, an increase of 6.3% from $1,844,611,000 at the end of 2020[12] - The company reported a net increase in demand, savings, and money market accounts of $126,093,000 for the six months ended June 30, 2021[18] - Cash and cash equivalents at the end of the period were $27,092,000, compared to $22,143,000 at the end of June 30, 2020, representing a year-over-year increase of 22.4%[18] Loan Portfolio - Net loans rose to $1,571,230,000, compared to $1,460,508,000 at the end of 2020, marking an increase of 7.6%[12] - The company's loan portfolio totaled $1,588,264,000 as of June 30, 2021, reflecting a year-over-year increase from $1,451,623,000[37] - Real estate loans accounted for 33.2% of the total loan portfolio as of June 30, 2021, up from 29.9% at December 31, 2020[37] - The company completed 1,050 loan modification requests, representing $291,668,000 in loan balances, or approximately 19.0% of the loan portfolio excluding PPP balances[39] Loan Losses and Provisions - The allowance for loan losses was $17,034,000 as of June 30, 2021, compared to $16,253,000 at the end of 2020, indicating a slight increase of 4.8%[12] - The provision for loan losses decreased to $1,050,000 for the six months ended June 30, 2021, down from $2,750,000 in the same period of 2020[18] - The total past-due loans as of December 31, 2020, were $9,722,000, with current loans totaling $1,467,039,000, leading to a total of $1,476,761,000[41] - Non-accrual loans as of June 30, 2021, totaled $6,981,000, compared to $6,721,000 at December 31, 2020, and $8,344,000 at June 30, 2020[42] Securities and Investments - As of June 30, 2021, the fair value of investment securities was $306,247,000, compared to $313,376,000 as of December 31, 2020, indicating a decrease of approximately 2.9%[26] - The total amortized cost of securities available for sale was $304,740,000, with unrealized gains of $4,542,000 and unrealized losses of $3,035,000[26] - The company pledged securities with a fair value of $291,913,000 to secure public deposits and other purposes as of June 30, 2021, down from $297,326,000 as of December 31, 2020[29] - The total carrying value of securities to be held to maturity rose from $365,613,000 at December 31, 2020, to $376,181,000 at June 30, 2021, indicating an increase of 1.5%[154][156] Efficiency and Expenses - Total non-interest expense decreased to $19,370,000 for the six months ended June 30, 2021, from $19,960,000 in the same period of 2020, a reduction of 2.9%[13] - The efficiency ratio, calculated using non-GAAP measures, excludes securities losses and other-than-temporary impairment charges, providing a clearer view of operational efficiency[175] - The non-GAAP efficiency ratio stood at 45.14% for the six months ended June 30, 2021, compared to 52.13% for the same period in 2020[190] - The expense related to the 401(k) plan was $405,000 for the six months ended June 30, 2021, down from $453,000 in 2020, a decrease of 10.6%[106] Capital and Shareholder Equity - Total shareholders' equity increased to $234,155,000 as of June 30, 2021, up from $216,584,000 at June 30, 2020, reflecting a growth of 8.1%[15] - The Company's total risk-based capital ratio was 14.55% as of June 30, 2021, above the well-capitalized threshold of 10.0%[189] - The company declared cash dividends of $6,910,000 for the six months ended June 30, 2021, compared to $6,666,000 in the same period of 2020[18] Risk Management - The Bank's interest rate risk management strategy involves using derivative instruments to minimize fluctuations in earnings and cash flows due to interest rate volatility[118] - The company utilizes a systematic methodology for determining the allowance for loan losses, including a quarterly review process and risk rating changes[57] - The company continues to monitor loans placed on non-accrual status, which are deemed collectible based on current information and events[42] COVID-19 Impact - As of June 30, 2021, uncertainties related to the COVID-19 pandemic continue to pose risks to the Company's financial position and future operations[172]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Selected Financial Data (Unaudited)](index=4&type=section&id=Selected%20Financial%20Data%20(Unaudited)) The First Bancorp, Inc. reported significant Q1 2021 year-over-year improvements, with net income up 37.4% to $8.9 million, diluted EPS at $0.81, and improved asset quality and efficiency Q1 2021 vs Q1 2020 Financial Highlights (in thousands USD) | Metric | Q1 2021 | Q1 2020 | Change | | :--- | :--- | :--- | :--- | | Net Income | $8,922,000 | $6,495,000 | +37.4% | | Diluted EPS | $0.81 | $0.60 | +35.0% | | Cash Dividends Declared | $0.31 | $0.30 | +3.3% | | Total Assets | $2,436,868,000 | $2,136,396,000 | +14.1% | | Total Loans | $1,516,772,000 | $1,344,208,000 | +12.8% | | Total Deposits | $1,953,557,000 | $1,644,612,000 | +18.8% | Q1 2021 vs Q1 2020 Key Ratios | Ratio | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Return on Average Equity | 15.85% | 12.03% | | Return on Average Assets | 1.54% | 1.24% | | Net Interest Margin (Tax-Equivalent) | 2.99% | 3.12% | | Non-Performing Loans to Total Loans | 0.46% | 0.75% | | Efficiency Ratio (Non-GAAP) | 45.52% | 58.12% | [Financial Statements (Unaudited)](index=5&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) Unaudited Q1 2021 consolidated financial statements show significant growth and improved profitability, with total assets at $2.44 billion, net income at $8.9 million, and strong cash flows [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets increased 14.1% to $2.44 billion, driven by growth in net loans to $1.50 billion and total deposits to $1.95 billion Balance Sheet Summary (in thousands) | Account | March 31, 2021 | December 31, 2020 | March 31, 2020 | | :--- | :--- | :--- | :--- | | Total Assets | $2,436,868 | $2,361,236 | $2,136,396 | | Net Loans | $1,500,178 | $1,460,508 | $1,332,350 | | Total Deposits | $1,953,557 | $1,844,611 | $1,644,612 | | Total Shareholders' Equity | $228,184 | $223,726 | $215,257 | [Consolidated Statements of Income and Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For Q1 2021, net income increased 37.4% to $8.9 million, driven by a 6.4% rise in net interest income to $15.9 million and a 25.5% increase in non-interest income to $5.3 million Income Statement Summary (in thousands) | Account | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Interest Income | $15,873 | $14,918 | | Provision for Loan Losses | $525 | $400 | | Total Non-Interest Income | $5,298 | $4,221 | | Total Non-Interest Expense | $9,874 | $11,043 | | **Net Income** | **$8,922** | **$6,495** | | Diluted EPS | $0.81 | $0.60 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2021, net cash from operating activities significantly increased to $19.0 million, while investing activities used $98.4 million, and financing activities provided $73.1 million, primarily from deposits Cash Flow Summary (in thousands) | Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $19,044 | $2,852 | | Net Cash used by Investing Activities | ($98,353) | ($50,132) | | Net Cash from Financing Activities | $73,126 | $53,964 | | **Net (Decrease) in Cash** | **($6,183)** | **$6,684** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies and disclosures, covering the $690 million investment portfolio, improved $1.52 billion loan portfolio credit quality, COVID-19 impacts, and the upcoming LIBOR transition - The company's primary market, the State of Maine, relies significantly on tourism, which was adversely impacted by COVID-19 in 2020. The ongoing impact remains uncertain[25](index=25&type=chunk) - The company is preparing for the cessation of LIBOR, with a working group formed to manage the transition. Several derivative contracts with notional values totaling **$165 million** have maturity dates beyond the LIBOR phase-out in June 2023[125](index=125&type=chunk)[305](index=305&type=chunk) - The company has deferred the adoption of the new Current Expected Credit Loss (CECL) model (ASU 2016-13) as a Smaller Reporting Company, with implementation planned for fiscal years beginning after December 15, 2022[159](index=159&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported record Q1 2021 operating results, with net income of $8.9 million, 37.4% YoY growth, improved asset quality, and a well-capitalized balance sheet with $2.44 billion in assets - Net income for Q1 2021 was a record **$8.9 million**, up **37.4%** from Q1 2020, driven by increased net interest income, strong non-interest revenue, and controlled operating expenses[181](index=181&type=chunk)[182](index=182&type=chunk) - Asset quality showed positive trends, with non-performing assets at **0.30% of total assets** as of March 31, 2021, down from 0.49% a year prior[186](index=186&type=chunk) - The company's non-GAAP efficiency ratio improved significantly to **45.52%** for Q1 2021, compared to 58.12% for the same period in 2020, which was elevated due to one-time charges[188](index=188&type=chunk) [Critical Accounting Policies](index=50&type=section&id=Critical%20Accounting%20Policies) Management identifies critical accounting policies requiring significant estimates, including allowance for loan losses, goodwill, MSRs, and derivatives, with MSR valuation sensitive to prepayment rates and ongoing COVID-19 risks - The most significant estimates and assumptions are related to the Allowance for Loan Losses, Goodwill, Mortgage Servicing Rights, Fair Value of Securities, and Derivative Financial Instruments[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - The valuation of mortgage servicing rights is highly dependent on the anticipated loan prepayment rate assumption; an increase in prepayment speed lowers the MSR valuation[170](index=170&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) In Q1 2021, net interest income rose 6.4% to $15.9 million, non-interest income surged 25.5% to $5.3 million driven by mortgage banking, and non-interest expense decreased 10.6% to $9.9 million - Net interest income on a tax-equivalent basis increased by **$1.0 million (6.3%)** YoY, driven by earning asset growth and recognition of PPP loan origination fees[183](index=183&type=chunk) - Non-interest income increased by **$1.1 million (25.5%)** YoY, led by a **$1.5 million (290.3%)** increase in mortgage banking revenue[184](index=184&type=chunk)[197](index=197&type=chunk) - Non-interest expense decreased by **$1.2 million (10.6%)** YoY, mainly due to **$1.76 million** in one-time charges in Q1 2020 related to restructuring interest rate swaps[185](index=185&type=chunk)[120](index=120&type=chunk)[198](index=198&type=chunk) [Financial Condition](index=57&type=section&id=Financial%20Condition) As of March 31, 2021, financial condition strengthened with total assets at $2.44 billion, loan portfolio growth of 2.7%, improved credit quality, strong liquidity from 18.8% deposit growth, and well-capitalized ratios - The loan portfolio increased by **$40.0 million (2.7%)** in Q1 2021, with growth centered in commercial real estate and other commercial loans, including PPP loans[187](index=187&type=chunk)[218](index=218&type=chunk) - Low-cost deposits (demand, NOW, savings) grew by **$68.1 million (6.3%)** in Q1 2021 and **$370.9 million (48.0%)** year-over-year, largely due to economic stimulus programs[187](index=187&type=chunk)[284](index=284&type=chunk) - The company remains well-capitalized, with a total risk-based capital ratio of **14.83%** as of March 31, 2021, comfortably exceeding the 10.0% well-capitalized threshold[187](index=187&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk via ALCO, using gap analysis and simulations; a 200 basis point rate increase projects a 0.1% rise in net interest income, while a 100 basis point decrease projects a 1.5% decline Interest Rate Sensitivity Analysis (Change in Net Interest Income) | Scenario | Year 1 Projection | Year 2 Projection | | :--- | :--- | :--- | | Rates Decrease by 1.0% | -1.5% | -9.3% | | Rates Increase by 2.0% | +0.1% | +1.0% | - The company's interest rate risk exposure is considered reasonable and is well within the ALCO's policy limit of a maximum **10.0%** decrease in net interest income for a **2.0%** rate move[301](index=301&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204%20-%20Controls%20and%20Procedures) As of March 31, 2021, management concluded the company's disclosure controls and procedures were effective at a reasonable assurance level, with no material changes to internal control over financial reporting - Management concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2021[307](index=307&type=chunk) - There were no changes in the Company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[307](index=307&type=chunk) [Part II. Other Information](index=80&type=section&id=Part%20II.%20Other%20Information) [Risk Factors](index=80&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The primary risk factor is the ongoing COVID-19 pandemic, posing risks to business operations, loan quality, and the investment portfolio, particularly impacting Maine's tourism-reliant economy - The COVID-19 pandemic continues to pose significant risks, including potential declines in credit quality, reduced loan demand, and negative impacts on the investment portfolio[310](index=310&type=chunk)[311](index=311&type=chunk)[313](index=313&type=chunk) - The company's primary market in Maine is heavily reliant on tourism, which makes the regional economy particularly vulnerable to pandemic-related disruptions, potentially leading to a disproportionate adverse effect on the company[312](index=312&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2021, the company repurchased 8,557 shares of common stock at an average price of $25.03 per share, outside of a publicly announced plan Common Stock Repurchases Q1 2021 | Month | Shares Purchased | Average Price Per Share | | :--- | :--- | :--- | | January 2021 | 5,776 | $24.40 | | February 2021 | 1,175 | $25.10 | | March 2021 | 1,606 | $28.70 | | **Total** | **8,557** | **$25.03** |

Employment and Workforce - As of December 31, 2020, the Company had 255 employees and a full-time equivalency of 250 employees[64]. Financial Position and Investments - The Company had $313.4 million in available for sale investment securities and $365.6 million in held to maturity investment securities as of December 31, 2020[80]. - The Company’s investment management revenues are directly tied to the asset values of investments managed, which may fluctuate due to market conditions[86]. - The company has complied with the fully phased Basel III capital requirements well in advance of the completion date as of December 31, 2020[105]. Market and Economic Risks - Changes in interest rates could adversely affect net interest income and profitability, impacting earnings if interest rates on deposits rise faster than those on loans[79]. - A decline in real estate values in the primary market area could negatively impact the quality of the loan portfolio and demand for products and services[85]. - The Company may experience margin compression and decreased net interest income if lower-cost funding sources are lost due to customer behavior[82]. - The Company has experienced limited impact from COVID-19 on its loan portfolio to date, but uncertainty remains regarding future effects on borrowers and delinquencies[100]. - The company may face adverse effects from the transition away from LIBOR, which could impact its financial assets and liabilities linked to this benchmark[102]. Regulatory and Compliance Issues - The company is subject to increased regulatory scrutiny and potential changes in laws, particularly due to the Dodd-Frank Act, which may increase operational costs[104]. - The company operates in a highly regulated environment, and failure to meet minimum regulatory capital guidelines could adversely affect its financial condition[103]. - Regulatory restrictions on the payment of dividends by the Bank could impact the Company's ability to service debt and pay obligations[111]. Competition and Market Dynamics - The company faces significant competition from various financial service providers, including commercial banks, credit unions, and asset managers, which may impact its market share and income[107]. - The soundness of other financial institutions could adversely affect the Company due to interrelated financial services relationships[83]. Operational Risks - The Company faces risks related to technological changes, which could increase costs and impact competitiveness if not effectively managed[89]. - The company is exposed to risks associated with data breaches and cyberattacks, which could lead to financial liability and reputational harm[93]. - The company has ongoing information security training programs and works with third-party consultants to mitigate risks related to information security[93]. - The Company faces risks from quarterly fluctuations in operating and financial results, which may vary from investor expectations[111]. Capital Management and Shareholder Impact - If the Company does not manage its capital position strategically, the return on equity could be lower compared to competitors, potentially delaying the goal of increasing earnings per share and book value per share[112]. - The Company may issue additional equity securities, which could dilute book value and adversely affect the market price of common stock[113]. - The Company is not restricted from issuing additional shares of common stock, which could lead to dilution for existing shareholders[113]. - The Board of Directors has the authority to issue preferred stock, which could have preferences over common stock and adversely affect common shareholders[113]. - The inability to receive dividends from the Bank could hinder the Company's ability to pay dividends to shareholders, as dividends from the Bank are the principal source of funds for common stock dividends[111]. Acquisitions and Business Strategy - Potential acquisitions may disrupt business operations and dilute shareholder value, with risks including the payment of premiums over book and market values[114]. - Acquisitions may not realize expected revenue increases or cost savings, potentially having a material adverse effect on the Company[114]. - The company has maintained reserves for certain claims and legal actions, which could impact its earnings and reputation if not resolved favorably[95].

Financial Performance - Net income for the nine months ended September 30, 2020, was $20,159,000, compared to $18,839,000 in 2019, representing a growth of 7.0%[14] - Basic earnings per common share increased to $1.86 for the nine months ended September 30, 2020, up from $1.74 in 2019[14] - Net income for the nine months ended September 30, 2020, was reported at $20,159,000, resulting in a basic EPS of $1.86 and diluted EPS of $1.84[105] - For the quarter ended September 30, 2020, net income was $7,095,000, leading to a basic and diluted EPS of $0.65[105] - Net income for the nine months ended September 30, 2020 was $20.2 million, up $1.3 million or 7.0% from the same period in 2019[180] Asset Growth - Total assets increased to $2,296,626,000 as of September 30, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 11.0%[13] - The company's total assets as of September 30, 2020, were $2.210594 billion, up from $1.994874 billion as of September 30, 2019, representing an increase of 10.8%[199] - Total deposits grew to $1,763,059,000 as of September 30, 2020, compared to $1,650,466,000 at the end of 2019, reflecting a growth of 6.8%[13] - Total shareholders' equity increased to $219,440,000 as of September 30, 2020, up from $208,489,000 at the end of September 2019, reflecting a growth of 5.0%[18] Loan and Deposit Metrics - Net loans reached $1,421,275,000, an increase of 10.6% from $1,285,436,000 at the end of 2019[13] - The company's loan portfolio as of September 30, 2020, totaled $1,436,646,000, an increase from $1,297,075,000 as of December 31, 2019, representing a year-over-year growth of approximately 10.7%[39] - The company experienced a net cash used by investing activities of $214,584,000 for the nine months ended September 30, 2020, compared to $70,264,000 for the same period in 2019[18] - The company reported a net increase in demand, savings, and money market accounts of $212,641,000 for the nine months ended September 30, 2020[18] Non-Interest Income and Expenses - Net interest income for the nine months ended September 30, 2020, was $44,154,000, compared to $39,075,000 for the same period in 2019, reflecting a growth of 12.0%[14] - Total non-interest income rose to $13,627,000 for the nine months ended September 30, 2020, up from $10,281,000 in 2019, marking a 32.8% increase[14] - Total non-interest expense for the nine months ended September 30, 2020, was $29,236,000, compared to $26,168,000 in 2019, indicating a rise of 11.7%[14] Loan Loss Provisions - Provision for loan losses increased to $4,550,000 for the nine months ended September 30, 2020, compared to $875,000 for the same period in 2019, indicating a significant rise in risk assessment[14] - The allowance for loan losses as of September 30, 2020, totaled $15,371,000, including specific reserves of $890,000 and general reserves of $1,826,000[67] - The provision for loan losses for the first nine months of 2020 was $4.6 million, significantly up from $875,000 in the same period in 2019[187] Securities and Investments - As of September 30, 2020, the fair value of investment securities was $340,140,000, compared to $360,520,000 as of December 31, 2019, indicating a decrease of approximately 5.6%[26] - The total amortized cost of securities available for sale was $333,152,000, with unrealized gains of $8,157,000 and unrealized losses of $1,169,000[26] - The company’s investment policy limits investments to government debt obligations, time deposits, and highly rated corporate bonds[205] Impaired Loans - The total recorded investment in impaired loans was $19.34 billion, with an unpaid principal balance of $21.65 billion, resulting in a related allowance of $890 million[44] - Impaired loans decreased to $789 million as of September 30, 2020, down from $6,579 million as of December 31, 2019, a significant decline of approximately 88%[150] - The specific reserves for TDRs as of September 30, 2020, amounted to $395,000, compared to $1,683,000 for 82 loans as of September 30, 2019[51] Regulatory and Compliance - The Company's total risk-based capital ratio was 15.44% as of September 30, 2020, above the well-capitalized threshold of 10.0%[189] - The company has established a systematic methodology for determining the allowance for loan losses, which includes a quarterly review process[60] - The implementation of ASU No. 2016-13 is anticipated to have a material impact on the Company's consolidated financial statements upon adoption[158] Miscellaneous - The company approved a new 2020 Equity Incentive Plan, reserving 400,000 shares for stock options and other equity-based awards to attract and retain personnel[101] - The company utilized a weighted average discount rate of 3.00% for determining the accumulated benefit obligation and net periodic benefit cost[110] - The Bank incurred one-time charges of $1.76 million in Q1 2020 related to the restructuring of interest rate swap positions[121]

Financial Performance - Net income for the six months ended June 30, 2020, was $13,064,000, a 4.1% increase from $12,551,000 in the same period of 2019[16]. - Basic earnings per common share increased to $1.20 for the six months ended June 30, 2020, compared to $1.16 in the same period of 2019[16]. - Comprehensive income for the six months ended June 30, 2020, was $10,259,000, down from $18,996,000 in the same period of 2019, indicating a decrease of 46.0%[16]. - Net income for the six months ended June 30, 2020, was $13,064,000, compared to $12,551,000 for the same period in 2019, representing a growth of 4.1%[21]. - Net interest income for the six months ended June 30, 2020, was $29,409,000, up 13.5% from $25,849,000 in the same period of 2019[16]. - Non-interest income for the six months ended June 30, 2020, was $8.8 million, up 30.7% year-over-year[187]. - Non-interest expense for the six months ended June 30, 2020, was $20.0 million, an increase of 16.5% from the same period in 2019[188]. - The efficiency ratio for the six months ended June 30, 2020, was 52.13%, compared to 50.63% for the same period in 2019[194]. Asset Growth - Total assets increased to $2,267,124,000 as of June 30, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 9.6%[14]. - Total deposits grew to $1,740,121,000 as of June 30, 2020, up from $1,650,466,000 at the end of 2019, reflecting a growth of 5.4%[14]. - Total shareholders' equity increased to $216,584,000 as of June 30, 2020, up from $204,593,000 at June 30, 2019, reflecting a year-over-year increase of 5.0%[18]. - Cash and cash equivalents at the end of the period were $22,143,000, compared to $16,918,000 at the end of June 30, 2019, indicating a 30.5% increase[21]. - The total loan portfolio amounted to $1,451,623,000, an increase from $1,297,075,000 as of December 31, 2019, representing a year-over-year growth of approximately 11.9%[42]. Loan Performance - Net loans reached $1,437,513,000, an increase of 11.8% from $1,285,436,000 at the end of 2019[14]. - The provision for loan losses increased to $2,750,000 for the six months ended June 30, 2020, compared to $625,000 in the same period of 2019, reflecting a significant rise of 340%[16]. - Total past-due loans (90+ days) reached $6,188,000 as of June 30, 2020, with a total loan balance of $1,451,623,000[44]. - Non-accrual loans as of June 30, 2020, totaled $8,344,000, a decrease from $16,649,000 as of December 31, 2019[46]. - The total recorded investment in impaired loans was $20,013,000, with an unpaid principal balance of $21,778,000, and a related allowance of $917,000[48]. Securities and Investments - The fair value of investment securities was $311,500,000, with an amortized cost of $302,513,000, resulting in unrealized gains of $9,250,000 and losses of $263,000[29]. - The total fair value of securities pledged to secure public deposits and other purposes was $245,917,000 as of June 30, 2020, compared to $214,173,000 at December 31, 2019[33]. - The company reported a net unrealized gain on securities available for sale of $3,443,000 for the six months ended June 30, 2020, compared to a net unrealized gain of $7,801,000 in the same period of 2019[21]. - The fair value of mortgage-backed securities was $275,491,000 as of June 30, 2020, with an amortized cost of $267,805,000[29]. - The total amortized cost of securities available for sale was $319,088,000, with a fair value of $322,570,000 as of June 30, 2020[30]. COVID-19 Impact - The impact of COVID-19 is expected to adversely affect the tourism industry, which is significant for the company's primary market in Maine, although the exact financial impact remains uncertain[25]. - The company completed 867 loan modification requests totaling $239,484,000, which is approximately 16.5% of the overall loan portfolio, in response to the COVID-19 pandemic[44]. Allowance for Loan Losses - The allowance for loan losses as of June 30, 2020, totaled $14,110,000, with specific reserves of $917,000 and general reserves of $1,814,000[70]. - The qualitative portion of the allowance for loan losses increased to 0.71% of related loans as of June 30, 2020, up from 0.48% as of December 31, 2019, reflecting a $4,109,000 increase[74]. - The unallocated component of the allowance totaled $1,009,000 at June 30, 2020, representing 7.2% of the total reserve, down from $1,182,000 or 10.2% as of December 31, 2019[77]. - The company has established a systematic methodology for determining the allowance for loan losses, including quarterly reviews and risk rating changes[63]. Regulatory Compliance - The Company's total risk-based capital ratio was 15.03% as of June 30, 2020, well above the 10.0% threshold[193]. - Construction loans and non-owner-occupied commercial real estate loans were at 125.8% of total capital, below the regulatory limit of 300.0% at June 30, 2020[87]. Equity and Compensation - The total compensation cost related to nonvested restricted stock grants was $1,957,000, with $312,000 recognized as expense for the six months ended June 30, 2020, leaving $1,003,000 in unrecognized expense[108]. - The company’s 401(k) plan expense was $453,000 for the six months ended June 30, 2020, compared to $322,000 for the same period in 2019[111].

Financial Performance - Net income for Q1 2020 was $6,495,000, reflecting a 5.5% increase from $6,156,000 in Q1 2019[16]. - Basic earnings per common share increased to $0.60 for Q1 2020, up from $0.57 in Q1 2019, marking a growth of 5.3%[16]. - Net interest income for the three months ended March 31, 2020, was $14,918,000, an increase of 15.6% compared to $12,899,000 for the same period in 2019[16]. - Total non-interest income rose to $4,221,000 in Q1 2020, a 34.3% increase from $3,144,000 in Q1 2019[16]. - The total comprehensive income for the three months ended March 31, 2020, was $5,866,000, compared to $9,206,000 for the same period in 2019, indicating a decline in overall income[21]. - The efficiency ratio for the first quarter of 2020 was 58.12%, up from 50.45% in the same period of 2019, impacted by restructuring charges[183]. Asset and Equity Growth - Total assets increased to $2,136,396,000 as of March 31, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 3.3%[14]. - The total shareholders' equity reached $215,257,000 as of March 31, 2020, compared to $212,508,000 at December 31, 2019, an increase of 1.3%[14]. - Total shareholders' equity increased to $215,257,000 as of March 31, 2020, up from $197,787,000 at the end of 2019, reflecting a growth of approximately 8.8%[21]. - The book value per common share rose to $19.71 as of March 31, 2020, compared to $19.50 at December 31, 2019, an increase of 1.1%[14]. Loan Portfolio and Quality - As of March 31, 2020, the company's total loan portfolio amounted to $1,344,208,000, an increase from $1,297,075,000 as of December 31, 2019, representing a growth of approximately 3.9%[36]. - The company reported a total of $21,829,000 in past-due loans as of March 31, 2020, with 90+ days past due loans amounting to $10,321,000[37]. - Non-accrual loans as of March 31, 2020, totaled $10,048,000, a decrease from $16,649,000 as of December 31, 2019[40]. - The allowance for impaired loans with a recorded allowance was $992,000 as of March 31, 2020[42]. - The total past-due loans as of March 31, 2019, were $11,280,000, with $3,017,000 being 90+ days past due[40]. Investment Securities - As of March 31, 2020, the total amortized cost of investment securities was $341,592,000, with an estimated fair value of $349,248,000, reflecting a net unrealized loss of $352,000[29]. - The total investment securities amounted to $664,514,000, an increase from $651,108,000 at December 31, 2019[202]. - The total securities available for sale decreased to $312,928,000 as of March 31, 2020, down from $360,520,000 at December 31, 2019[202]. - The total securities to be held to maturity increased to $341,592,000 as of March 31, 2020, compared to $281,606,000 at December 31, 2019[202]. Allowance for Loan Losses - The allowance for loan losses as of March 31, 2020, totaled $11,858,000, with specific reserves of $992,000 and general reserves of $1,899,000[61]. - The provision for loan losses was $400,000 for Q1 2020, compared to $375,000 in Q1 2019, indicating a slight increase in risk management[16]. - The qualitative portion of the allowance for loan losses increased to 0.51% of related loans as of March 31, 2020, compared to 0.48% as of December 31, 2019, reflecting a $585,000 increase due to macroeconomic impacts from the COVID-19 pandemic[64]. Impact of COVID-19 - The company noted that the ongoing COVID-19 pandemic may adversely impact its financial position and future operations, particularly in the tourism-dependent State of Maine[24]. - The company expects more severe impacts from COVID-19 in Q2 2020 and beyond, although Q1 results were not significantly affected[175]. Interest Rate Management - The Bank's interest rate risk management strategy aims to minimize fluctuations in earnings and cash flows due to interest rate volatility[115]. - The Bank incurred one-time charges of $1.76 million during Q1 2020 related to the restructuring of interest rate swap positions[117]. - As of March 31, 2020, the total notional amount of interest rate swap agreements was $220 million, with a fair value loss of $6.042 million[117]. Non-Interest Income and Expense - Non-interest income for the three months ended March 31, 2020 was $4.2 million, an increase of $1.1 million or 34.3% year-over-year, with a 15.7% increase in investment management income and a 70.3% increase in mortgage banking revenue[193]. - Non-interest expense for the same period was $11.0 million, up $2.6 million or 31.5% from the previous year, primarily due to $1.8 million in charges for restructuring interest rate swap positions[194].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the Fiscal Year ended December 31, 2019 Commission File Number 0-26589 THE FIRST BANCORP, INC. (Exact name of Registrant as specified in its charter) Maine 01-0404322 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 223 Main Street Damariscotta Maine 04543 (Address of principal executive o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 Commission File Number 0-26589 THE FIRST BANCORP, INC. (Exact name of Registrant as specified in its charter) Maine 01-0404322 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Main Street Damariscotta Maine 04543 (Address of principal execut ...