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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 58.6GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.60%
Trailing Yield
$5.60
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
57%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, First Bancorp, Inc /ME/ (FNLC) receives a "Hold" rating with a composite score of 53.8/100, ranked #306 out of 4446 stocks. Key factor scores: Quality 59/100, Value 73/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
First Bancorp, Inc /ME/ (FNLC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does First Bancorp, Inc /ME/ Do?
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. First Bancorp, Inc /ME/ (FNLC) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Tony C. McKim and employs approximately 270 people, headquartered in DAMARISCOTTA, Maine. With a market capitalization of $319M, FNLC is one of the notable companies in the Financials sector.
First Bancorp, Inc /ME/ (FNLC) Stock Rating — Hold (April 2026)
As of April 2026, First Bancorp, Inc /ME/ receives a Hold rating with a composite score of 53.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FNLC ranks #306 out of 4,446 stocks in our coverage universe. Within the Financials sector, First Bancorp, Inc /ME/ ranks #111 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FNLC Stock Price and 52-Week Range
First Bancorp, Inc /ME/ (FNLC) currently trades at $29.41. The stock lost $0.48 (1.6%) in the most recent trading session. The 52-week high for FNLC is $30.33, which means the stock is currently trading -3.0% from its annual peak. The 52-week low is $22.11, putting the stock 33.0% above its annual trough. Recent trading volume was 2K shares, suggesting relatively thin trading activity.
Is FNLC Overvalued or Undervalued? — Valuation Analysis
First Bancorp, Inc /ME/ (FNLC) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.19x, compared to the Financials sector average of 14.88x — a discount of 32%. The price-to-book ratio stands at 1.14x, versus the sector average of 1.22x. The price-to-sales ratio is 2.05x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FNLC trades at 10.85x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, First Bancorp, Inc /ME/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
First Bancorp, Inc /ME/ Profitability — ROE, Margins, and Quality Score
First Bancorp, Inc /ME/ (FNLC) earns a quality factor score of 59/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.2%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.0% versus the sector average of 1.2%.
On a margin basis, First Bancorp, Inc /ME/ reports gross margins of 0.0%. The operating margin is 24.5% (sector: 21.8%). Net profit margin stands at 20.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 12.2% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FNLC Debt, Balance Sheet, and Financial Health
First Bancorp, Inc /ME/ has a debt-to-equity ratio of 34.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $96M. Cash and equivalents stand at $32M.
FNLC has a beta of 0.44, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for First Bancorp, Inc /ME/ is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
First Bancorp, Inc /ME/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, First Bancorp, Inc /ME/ reported revenue of $158M and earnings per share (EPS) of $3.10. Net income for the quarter was $32M. Gross margin was 0.0%. Operating income came in at $39M.
In FY 2025, First Bancorp, Inc /ME/ reported revenue of $160M and earnings per share (EPS) of $3.10. Net income for the quarter was $34M. Revenue grew 7.7% year-over-year compared to FY 2024. Operating income came in at $42M.
In Q3 2025, First Bancorp, Inc /ME/ reported revenue of $41M and earnings per share (EPS) of $0.82. Net income for the quarter was $9M. Revenue grew 7.1% year-over-year compared to Q3 2024. Operating income came in at $11M.
In Q2 2025, First Bancorp, Inc /ME/ reported revenue of $40M and earnings per share (EPS) of $0.73. Net income for the quarter was $8M. Revenue grew 8.9% year-over-year compared to Q2 2024. Operating income came in at $10M.
Over the past 8 quarters, First Bancorp, Inc /ME/ has demonstrated a growth trajectory, with revenue expanding from $37M to $158M. Investors analyzing FNLC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FNLC Dividend Yield and Income Analysis
First Bancorp, Inc /ME/ (FNLC) currently pays a dividend yield of 5.6%. At this yield, a $10,000 investment in FNLC stock would generate approximately $$560.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FNLC offers above-average income for its sector. With a net margin of 20.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FNLC Momentum and Technical Analysis Profile
First Bancorp, Inc /ME/ (FNLC) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FNLC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FNLC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FNLC vs S&P 500 (SPY) comparison to assess how First Bancorp, Inc /ME/ stacks up against the broader market across all factor dimensions.
FNLC Next Earnings Date
No upcoming earnings date has been announced for First Bancorp, Inc /ME/ (FNLC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FNLC? — Investment Thesis Summary
First Bancorp, Inc /ME/ presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 84/100) reduces downside risk.
In summary, First Bancorp, Inc /ME/ (FNLC) earns a Hold rating with a composite score of 53.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FNLC stock.
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Institutional Research Dossier
First Bancorp, Inc /ME/ (FNLC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on First Bancorp, Inc. (FNLC). While the company exhibits strong profitability metrics and trades at a discount to its sector on valuation multiples, its relatively low investment score and negative free cash flow raise concerns about future growth and capital allocation efficiency. The bank's stability score is a positive attribute, but the lack of a clear catalyst for significant outperformance warrants a neutral stance.
FNLC's attractive valuation and superior profitability compared to the sector are counterbalanced by its limited growth prospects and potential capital allocation challenges. The bank's focus on the Maine market provides a degree of stability, but also constrains its expansion opportunities. Investors should monitor the company's ability to generate positive free cash flow and improve its investment score before considering a more bullish outlook.
Business Strategy & Overview
First Bancorp, Inc., operating through its subsidiary First National Bank, provides a comprehensive suite of banking products and services to individuals and businesses primarily in the Mid-Coast, Eastern, and Down East regions of Maine. The bank's revenue streams are diversified across deposit products, commercial real estate loans, municipal loans, residential term loans, and consumer loans. Additionally, the company offers private banking, financial planning, investment management, and trust services, contributing to a more holistic financial service offering.
The company's strategic positioning centers on serving the local Maine market, fostering strong customer relationships, and providing personalized financial solutions. This regional focus allows First Bancorp to develop a deep understanding of the local economy and tailor its products and services to meet the specific needs of its customer base. However, this strategy also limits its geographic diversification and exposes it to the economic conditions of the Maine region.
First Bancorp's product pipeline is not explicitly detailed, but its focus on traditional banking products and services suggests a more conservative approach to innovation. The bank's strategy likely emphasizes enhancing existing offerings and improving customer service rather than introducing disruptive new products. This approach aligns with its community banking model and its focus on building long-term customer relationships.
In the broader industry context, First Bancorp operates in a highly competitive environment with numerous regional and national banks vying for market share. The bank differentiates itself through its local focus, personalized service, and deep understanding of the Maine market. However, it faces challenges from larger institutions with greater resources and more diversified product offerings. The company's ability to maintain its competitive advantage will depend on its ability to continue providing superior customer service and adapting to the evolving needs of its customer base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
12.2%
Sector: 9.4%
+30% VS SCTR
Economic Moat Analysis
First Bancorp's economic moat is likely Narrow. While the bank benefits from established customer relationships and a strong local presence in Maine, its competitive advantages are not insurmountable. The banking industry is inherently competitive, and customers have numerous options for their financial services needs.
One potential source of a narrow moat is switching costs. Customers who have established long-term relationships with First National Bank and have integrated its services into their financial lives may be reluctant to switch to a competitor. However, these switching costs are not particularly high, as customers can easily transfer their accounts and loans to other institutions.
Another potential source of a narrow moat is intangible assets, specifically the bank's brand reputation and local presence. First National Bank has been operating in Maine since 1864, building a strong reputation for reliability and customer service. This brand recognition and local presence provide a competitive advantage, but they are not unique to First Bancorp and can be replicated by other institutions.
First Bancorp does not appear to possess significant cost advantages or operate in an industry with efficient scale. The bank's operating margin is slightly higher than the sector average, but this is not a substantial advantage. The banking industry is not characterized by efficient scale, as there are numerous regional and national banks operating successfully.
The absence of network effects further weakens the argument for a wider moat. The value of First Bancorp's services does not increase as more customers use them. Overall, while First Bancorp benefits from established customer relationships and a strong local presence, its competitive advantages are not strong enough to warrant a Wide moat rating. The bank's narrow moat provides some protection against competition, but it is not immune to the pressures of the banking industry.
Financial Health & Profitability
First Bancorp's financial health presents a mixed picture. The company has demonstrated consistent revenue growth, with revenue increasing from $128.17 million in FY2023 to $160.27 million in FY2025. This represents a solid growth trajectory, indicating the bank's ability to expand its business and attract new customers. However, the free cash flow is negative at $-10.62M, which is a concern.
The company's profitability metrics are strong, with an operating margin of 24.5% and a net margin of 20.1%, both exceeding the sector averages of 22.0% and 17.8%, respectively. The return on equity (ROE) of 11.2% is also higher than the sector average of 8.5%, indicating efficient use of shareholder equity. These profitability metrics suggest that First Bancorp is a well-managed and efficient institution.
The balance sheet appears to be reasonably leveraged, with a debt-to-equity ratio of 34.00, significantly lower than the sector average of 115.00. This indicates that the company is not overly reliant on debt financing and has a healthy capital structure. The current ratio of 1.10 suggests that the company has sufficient liquid assets to cover its short-term liabilities.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. The operating margin has fluctuated slightly, but remains within a healthy range. The company's ability to maintain its profitability and growth trajectory will depend on its ability to manage its expenses and continue attracting new customers.
The negative free cash flow is a significant concern. While the company is profitable, it is not generating enough cash to cover its capital expenditures and other cash outflows. This could limit the company's ability to invest in future growth opportunities and return capital to shareholders. Investors should monitor the company's free cash flow generation closely.
Valuation Assessment
First Bancorp's valuation appears attractive based on several key metrics. The company's price-to-earnings (P/E) ratio of 8.7x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.4x is also lower than the sector average of 3.5x, further supporting the undervaluation thesis.
However, the negative free cash flow complicates the valuation picture. A traditional discounted cash flow (DCF) analysis would be difficult to perform with negative free cash flow. The relative valuation metrics suggest that the stock is cheap compared to its peers, but the lack of free cash flow raises concerns about the sustainability of its earnings and the potential for future growth.
Considering the company's historical performance, the current valuation multiples are lower than its historical averages. This could be due to concerns about the company's growth prospects or the overall economic outlook. However, the company's consistent profitability and strong balance sheet suggest that the current valuation may be overly pessimistic.
The market capitalization of $302.95 million appears reasonable given the company's revenue of $160.27 million and net income of $34.39 million. However, the market may be discounting the stock due to its limited geographic diversification and exposure to the Maine economy.
Overall, First Bancorp's valuation appears attractive based on relative valuation metrics, but the negative free cash flow and limited growth prospects warrant caution. The stock may be a value trap if the company is unable to improve its free cash flow generation and accelerate its growth. Investors should carefully consider the risks and uncertainties before investing in First Bancorp.
Risk & Uncertainty
First Bancorp faces several specific risks that could negatively impact its business and financial performance. One significant risk is its concentration in the Maine market. The company's operations are heavily reliant on the economic conditions of the Mid-Coast, Eastern, and Down East regions of Maine. A downturn in the Maine economy could significantly reduce loan demand, increase loan losses, and negatively impact the company's profitability.
Another risk is the increasing competition in the banking industry. First Bancorp faces competition from larger regional and national banks with greater resources and more diversified product offerings. These competitors may be able to offer lower interest rates, more attractive loan terms, or a wider range of services, which could erode First Bancorp's market share.
Regulatory risk is also a concern for First Bancorp. The banking industry is heavily regulated, and changes in regulations could increase the company's compliance costs, restrict its lending activities, or negatively impact its profitability. For example, changes in capital requirements or interest rate regulations could have a material impact on the company's financial performance.
Interest rate risk is another factor to consider. Changes in interest rates could affect the company's net interest margin, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits. A decrease in interest rates could compress the company's net interest margin and reduce its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFirst Bancorp's superior profitability metrics, including a higher ROE and net margin compared to the sector, demonstrate efficient operations and strong management.
BULL VIEWThe company's low debt-to-equity ratio provides financial flexibility and reduces its vulnerability to economic downturns, making it a safer investment than its more leveraged peers.
BULL VIEWTrading at a significant discount to its sector on P/E and EV/EBITDA multiples, FNLC offers compelling value for investors seeking exposure to the banking industry.
The Bear Case
BEAR VIEWFirst Bancorp's negative free cash flow raises concerns about its ability to fund future growth and return capital to shareholders, potentially limiting its long-term upside.
BEAR VIEWThe company's concentration in the Maine market exposes it to significant regional economic risk, making it vulnerable to downturns in the local economy.
BEAR VIEWWith a low investment score, FNLC's capital allocation decisions and growth initiatives are questionable, suggesting a lack of strategic vision and potential for misallocation of resources.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FNLC and 4,400+ other equities.
First Bancorp, Inc /ME/ exhibits a 81% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
24.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
20.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+126%
Income Projection audit
A $10,000 investment would generate approximately $560 annually in dividends at the current trailing rate.
