First Bancorp Reports 22.5% Increase in Net Income for First Half of 2026

First Bancorp, Inc. reported a significant increase in its financial performance for the six months ended June 30, 2026, with net income rising to $18.6 million, a 22.5% increase from $15.1 million in the same period of 2025. Earnings per share also improved, with diluted earnings per share reaching $1.65, up from $1.35 year-over-year. The company declared dividends totaling $0.75 per share, representing a payout ratio of 44.9% of basic earnings per share. The increase in net income was attributed to a rise in net interest income, which grew by 15.6% to $41.9 million, driven by a favorable shift in the balance sheet from lower-yielding investments to higher-yielding loans.

In terms of operational metrics, First Bancorp's total assets increased by $49.8 million, or 1.6%, to $3.22 billion as of June 30, 2026. The loan portfolio also saw a modest increase of $29.6 million, or 1.2%, reaching $2.42 billion. Notably, residential loans increased by $16 million, and home equity loans rose by $18 million during the first half of 2026. However, commercial loans experienced a decrease, particularly in non-owner occupied commercial real estate and multifamily loans, which fell by $10 million and $19 million, respectively.

The company’s non-interest income for the first half of 2026 was $9.1 million, reflecting a 12.1% increase from the previous year, primarily driven by growth in wealth management revenue and other operating income. Non-interest expenses rose to $27 million, a 7.8% increase, largely due to higher salaries and employee benefits. The efficiency ratio improved to 51.47%, down from 54.63% in the prior year, indicating better cost management relative to income.

First Bancorp's asset quality remained stable, with non-performing assets at 0.54% of total assets, slightly up from 0.51% at the end of 2025. The allowance for credit losses (ACL) on loans decreased to 1.01% of total loans, down from 1.06% at year-end 2025. The provision for credit losses increased to $1.6 million, compared to $744,000 in the same period last year, reflecting a proactive approach to managing potential credit risks amid changing economic conditions.

Looking ahead, First Bancorp remains focused on maintaining its capital position, with a total risk-based capital ratio of 14.23% as of June 30, 2026, well above the regulatory minimum. The company anticipates continued growth in its loan portfolio and is committed to managing interest rate risk effectively, as indicated by its use of interest rate swaps and caps. Management's outlook suggests a cautious optimism regarding future earnings, contingent on economic stability and effective risk management strategies.