The First Bancorp, Inc. (FNLC) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FNLC

The First Bancorp's recent performance was driven by a 3.1% dividend increase, marking the 12th consecutive year of dividend growth. The company's commitment to returning value to shareholders is evident in its decision to raise the quarterly cash dividend by one cent per share. This move demonstrates the board's confidence in the company's financial health and ability to sustain its dividend payments.

1.c. Company Highlights

Last Price	25.85
Change Percentage	-1.11%
Open	26.19
Previous Close	26.14
Market Cap ( Millions)	290
Volume	10214
Year High	29.04
Year Low	22.11
M A 50	25.33
M A 200	25.28

FCF Yield	6.38%
Dividend Yield	5.65%
ROE	11.98%
Debt / Equity	55.71%
Net Debt / EBIDTA	304.78%
Price To Book	1.04
Price Earnings Ratio	9.09
Price To FCF	15.68
Price To sales	1.69
EV / EBITDA	10.33

2. Transcript Summary

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3. NewsRoom

The First Bancorp Declares Third Quarter Dividend

Sep -25

Source: businesswire.com

The First Bancorp Announces Second Quarter Results

Jul -23

Source: businesswire.com

4 Upcoming Dividend Increases

Jul -03

Source: seekingalpha.com

The First Bancorp Declares Second Quarter Dividend

Jun -26

Source: businesswire.com

The First Bancorp Declares First Quarter Dividend

Mar -27

Source: businesswire.com

The First Bancorp Declares Fourth Quarter Dividend

Dec -19

Source: businesswire.com

The First Bancorp Declares Third Quarter Dividend

Sep -26

Source: businesswire.com

4 Upcoming Dividend Increases Including A King

Jul -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

The First Bancorp, Inc.'s growth is driven by increasing demand for digital banking services, expansion of loan portfolios, and strategic acquisitions. Additionally, the company's focus on community banking and investment services is expected to contribute to its growth.

7. Detailed Products

Personal Banking

The First Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

The First Bancorp, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, refinancing, and home equity loans.

Wealth Management

The company provides wealth management services, including investment management, retirement planning, and estate planning.

Insurance Services

The First Bancorp, Inc. offers a range of insurance products, including life insurance, disability insurance, and long-term care insurance.

Online Banking

The company provides online banking services, allowing customers to manage their accounts, pay bills, and transfer funds online.

8. The First Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The First Bancorp, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for The First Bancorp, Inc. is low due to the lack of concentration of buyers and the availability of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The First Bancorp, Inc. is low due to the availability of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for The First Bancorp, Inc. is high due to the ease of entry into the banking industry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for The First Bancorp, Inc. is high due to the presence of multiple competitors in the banking industry and the need to differentiate itself through innovative products and services.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	36.45%
Debt Cost	3.95%
Equity Weight	63.55%
Equity Cost	6.73%
WACC	5.71%
Leverage	57.35%

11. Quality Control: The First Bancorp, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

First Bancorp

A-Score: 6.6/10

Value: 7.0

Growth: 4.9

Quality: 5.9

Yield: 9.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Farmers National Banc

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 5.4

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

Stellar Bancorp

A-Score: 6.2/10

Value: 6.0

Growth: 4.9

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Western New England Bancorp

A-Score: 6.0/10

Value: 5.4

Growth: 4.4

Quality: 6.2

Yield: 5.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

Origin Bancorp

A-Score: 5.7/10

Value: 5.9

Growth: 5.3

Quality: 6.4

Yield: 3.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

California Bank

A-Score: 4.8/10

Value: 5.8

Growth: 8.4

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.44%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.71%

The First Bancorp, Inc. - US31866P1021

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FNLC

1.c. Company Highlights

Weak Momentum

Higher Yield

Average Growth

Average Yield

Stable Momentum

Average Quality

Fairly Valued

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

Online Banking

8. The First Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: The First Bancorp, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.85$

Current Price

25.85$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA