| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 644.65 | 2397 |
| Intrinsic value (DCF) | 2.47 | -90 |
| Graham-Dodd Method | 10.86 | -58 |
| Graham Formula | 269.42 | 943 |
The First Bancorp, Inc. (NASDAQ: FNLC) is a regional bank holding company operating through its subsidiary, First National Bank, primarily serving individuals and businesses in Maine's Mid-Coast, Eastern, and Down East regions. Founded in 1864 and headquartered in Damariscotta, Maine, FNLC offers a comprehensive suite of banking products, including commercial and residential real estate loans, municipal loans, consumer loans, and deposit accounts. The bank also provides specialized services such as private banking, financial planning, investment management, and trust services. With 18 full-service branches, FNLC focuses on community banking, emphasizing personalized customer relationships and local economic development. As a small-cap regional bank, FNLC plays a critical role in Maine's financial ecosystem, catering to both retail and commercial clients with a conservative risk profile. Its long-standing presence and deep regional expertise position it as a trusted financial partner in its markets.
The First Bancorp (FNLC) presents a stable, low-beta (0.525) investment opportunity in the regional banking sector, appealing to income-focused investors with its consistent dividend ($1.44/share) and conservative lending practices. The bank's $265M market cap reflects its niche focus on Maine's underserved markets, where it benefits from limited competition and strong local relationships. However, FNLC faces risks from its geographic concentration, exposure to cyclical industries like tourism-dependent coastal Maine, and net interest margin pressures in a rising rate environment. With a diluted EPS of $2.46 and $27M net income (2024), valuation appears reasonable but growth prospects may be constrained by its rural footprint. The bank's $95M debt load is manageable relative to its $49.7M cash position, suggesting moderate financial flexibility.
FNLC's competitive advantage stems from its 160-year community banking legacy in Maine, creating high customer retention and localized underwriting expertise—particularly in coastal commercial real estate and municipal lending. Its 18-branch network provides cost-efficient deposit gathering in low-density markets where national banks underinvest. The bank's $1.6B asset size allows relationship-based pricing that larger regional banks cannot match, while its trust/wealth management services differentiate it from credit unions. However, FNLC lacks digital banking sophistication compared to tech-forward peers, and its rural footprint limits commercial loan diversification beyond tourism/hospitality. Competitive threats include Camden National Corp's (CAC) broader Maine presence and Bangor Savings Bank's (private) aggressive digital transformation. FNLC's conservative balance sheet (0.525 beta) provides stability but may limit yield-seeking investors. The bank's true moat is its deep-rooted local connections—85% of loans are to Maine borrowers—though this creates concentration risk if demographic trends weaken.