First Bancorp (FNLC) AI Stock Analysis

• Market Cap: $311.62M
• Dividend Yield: 5.24%
• Average Volume (3M): 18.46K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.57
• Revenue Growth: 10.46%
• EPS Growth: 18.70%
• Country: US
• Employees: 284
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 11,270,319
• 10 Day Avg. Volume: 17,456
• 30 Day Avg. Volume: 18,457
• PEG Ratio: 0.32
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 0.02
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 10.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $30.00 ▲(5.89% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is primarily supported by attractive valuation (low P/E and high dividend yield), offset by only mid-range financial quality due to recent debt build and cash-flow volatility. Technicals are neutral-to-soft, limiting near-term upside conviction, while corporate events provide a small positive tailwind.

Positive Factors

Steady revenue growth

Sustained top-line growth across 2023–2025 indicates expanding loan originations and fee income, underpinning core net interest and noninterest revenue. That structural revenue momentum supports capacity to invest in branches/digital channels and improves longer-term earnings visibility.

Improved leverage profile

A materially lower debt-to-equity versus 2020 reflects a stronger solvency posture and greater capital buffer. This durable balance-sheet improvement increases regulatory and strategic flexibility, allowing the bank to support lending, absorb shocks, and pursue measured growth without immediate capital strain.

Consistent capital returns

Regular cash dividends and a meaningful yield signal management and board confidence in recurring earnings and capital planning. For a regional community bank, disciplined payouts help retain income-oriented depositors and stabilize investor base, aligning incentives for steady capital allocation.

Negative Factors

Recent debt build

A sharp rise in debt since 2023 raises interest expense and reduces financial flexibility. If margins or credit trends deteriorate, the heavier leverage could constrain lending capacity, limit capital return flexibility, and increase refinancing or funding vulnerability over the medium term.

Margin compression and uneven earnings

Lower margins versus peak years and intermittent earnings dips indicate earnings sensitivity to margin, funding costs, and credit cycles. This uneven profitability reduces predictability for reinvestment and dividends and suggests limited operational leverage compared with prior best-in-period performance.

Cash-flow volatility and 2025 spike

Historic free cash flow volatility and an outsized 2025 spike (potentially non-recurring or classification-driven) weaken confidence in sustainable internal funding. Dependable cash generation is key for lending, capital returns, and reserves; erratic flows complicate long-term planning.

First Bancorp Business Overview & Revenue Model

Company Description

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, savings, money market, and certificates of deposit accounts. The company also provides commercial real estate loan products, such as mortgage loans to finance investments in real property comprising multi-family residential, commercial/retail, office, industrial, hotel, educational, and other specific or mixed use properties; commercial construction loans to finance construction of owner- and non-owner occupied commercial real estate properties; and other commercial loans, which include revolving and term loan obligations to business and corporate enterprises for the purpose of financing working capital or capital investment. In addition, it offers municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes; residential term loans that include amortizing home mortgages and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which are amortizing loans to individuals collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes. Further, the company provides private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities, as well as payment processing services. It operates through 18 full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.

How the Company Makes Money

First Bancorp generates revenue primarily through interest income from loans and investments, as well as fees from various banking services. The company's key revenue streams include interest from consumer and commercial loans, mortgage loans, and credit card services. Additionally, FNLC earns non-interest income from service charges on deposit accounts, wealth management fees, and other financial services. Significant partnerships with local businesses and community organizations further enhance its customer base and revenue opportunities, allowing the bank to provide tailored financial solutions that meet the needs of its clients.

First Bancorp Financial Statement Overview

Summary

Income statement trends are constructive with steady revenue growth and solid 2025 profitability, but margins are below 2021–2022 peaks and earnings have been uneven. Balance sheet leverage improved versus 2020, yet debt has risen sharply since 2023, increasing risk if profitability softens. Cash flow conversion is generally decent, but volatility and an outsized 2025 spike reduce confidence in sustainability.

Income Statement

Revenue has grown steadily over the period, accelerating from modest growth earlier to strong growth in 2023 and a continued increase in 2024–2025. Profitability remains solid (2025 net margin ~19% and operating margin ~24%), but margins are meaningfully below the very strong levels seen in 2021–2022, and net income has not consistently risen alongside revenue (notably dipping in 2023–2024 before rebounding in 2025). Overall: healthy top-line momentum with some margin compression versus peak years.

Balance Sheet

Leverage is moderate with debt-to-equity around ~0.66 in 2025 (improved from 2020’s elevated level ~1.17), and equity has grown over time. However, debt has increased sharply since 2023, pushing leverage higher versus the 2023 low (~0.29). Returns on equity are solid but not exceptional for the period, improving to ~12% in 2025 after being ~11% in 2024 and below the 2022 peak (~17%). Overall: improved long-term balance sheet profile, but recent debt build is a watch item.

Cash Flow

Cash generation is generally supportive, with free cash flow tracking net income well in most years (roughly ~0.89–0.97x historically and 1.0x in 2025). That said, free cash flow growth was negative in several years (2022–2024), indicating volatility. The 2025 operating and free cash flow figures show an extreme spike versus prior years, which materially lifts coverage metrics and suggests a potentially non-recurring or classification-driven swing that reduces comparability. Overall: decent conversion over time, but choppiness and an unusually large 2025 jump temper confidence.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	177.61M	165.43M	143.62M	109.91M	96.46M
Gross Profit	92.87M	79.74M	79.46M	91.29M	86.06M
EBITDA	41.94M	34.79M	37.81M	49.37M	45.95M
Net Income	34.39M	27.05M	29.52M	38.99M	36.27M
Balance Sheet
Total Assets	3.17B	3.16B	2.95B	2.74B	2.53B
Cash, Cash Equivalents and Short-Term Investments	292.26M	324.42M	317.48M	310.93M	407.88M
Total Debt	187.82M	146.28M	69.65M	103.48M	136.34M
Total Liabilities	2.88B	2.90B	2.70B	2.51B	2.28B
Stockholders Equity	283.14M	252.49M	243.08M	228.92M	245.66M
Cash Flow
Free Cash Flow	15.71B	24.57M	34.28M	39.81M	52.94M
Operating Cash Flow	15.71B	26.05M	36.92M	41.21M	56.69M
Investing Cash Flow	-3.00M	-217.42M	-199.81M	-247.58M	-201.75M
Financing Cash Flow	-15.71B	187.07M	172.10M	208.46M	139.48M

First Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNLC, the sentiment is Neutral. The current price of 28.33 is above the 20-day moving average (MA) of 28.04, above the 50-day MA of 27.77, and above the 200-day MA of 25.84, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FNLC.

First Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLBC	73 Outperform	$340.75M	9.72	13.35%	2.63%	11.98%	-10.12%
NECB	71 Outperform	$323.44M	6.75	13.07%	4.11%	-0.72%	-7.24%
CZFS	71 Outperform	$284.78M	7.48	11.36%	3.38%	2.16%	24.43%
PCB	70 Outperform	$311.74M	8.21	9.62%	3.57%	10.93%	42.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FNLC	67 Neutral	$311.62M	8.51	12.70%	5.24%	10.46%	18.70%
WSBF	62 Neutral	$324.05M	11.18	7.67%	3.59%	-0.09%	83.67%

First Bancorp Corporate Events

First Bancorp Names New Executive Vice President and CIO

First Bancorp, parent of First National Bank, has appointed Brad Martin as Executive Vice President and Chief Information Officer, positioning him to take over technology leadership ahead of current CIO Tammy Plummer’s planned retirement to ensure a smooth transition. Martin brings more than 17 years of financial services and IT experience, including senior technology roles at another Maine-based bank, holds multiple technical and information security certifications, and is active in industry and community committees focused on banking technology and cybersecurity, underscoring the bank’s emphasis on robust, modern IT and cyber capabilities.

The most recent analyst rating on (FNLC) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on First Bancorp stock, see the FNLC Stock Forecast page.

First Bancorp Declares Fourth-Quarter Dividend, Highlights Strong Year

On December 18, 2025, The First Bancorp declared a fourth-quarter cash dividend of $0.37 per share, payable on January 16, 2026 to shareholders of record as of January 6, 2026, closing out what management described as a successful year. Based on the December 17, 2025 closing share price of $28.29, the annualized dividend of $1.48 per share equated to a yield of 5.23%, underscoring the company’s emphasis on returning capital to shareholders and potentially reinforcing its appeal to income-focused investors within the regional banking sector.

The most recent analyst rating on (FNLC) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on First Bancorp stock, see the FNLC Stock Forecast page.