The First Bancorp, Inc. (FNLC) 8-K The First Bancorp Reports Record Quarterly Results

Exhibit 99.1

The First Bancorp Reports Record Quarterly Results

DAMARISCOTTA, ME, October 21, 2015 – The First Bancorp (Nasdaq: FNLC), today announced unaudited results for the quarter ended September 30, 2015. Net income was $4.2 million, up $80,000 or 1.9% from the third quarter of 2014 and earnings per common share on a fully diluted basis of $0.39 were up $0.01 or 2.6% from the same period in 2014. The Company also announced unaudited results for the nine months ended September 30, 2015. Net income was $12.4 million, up $1.2 million or 10.2% from the first nine months of 2014 and earnings per common share on a fully diluted basis of $1.16 were up $0.11 or 10.5% from the same period in 2014.

“This was the best quarter in the Company’s history,” Tony C. McKim, the Company’s President and Chief Executive Officer observed, “$13,000 above the net income record set in the first quarter of this year. More importantly, this is the third consecutive quarter with net income above $4.0 million. The combination of higher net interest income driven by asset growth and lower operating costs are the major factors in our strong performance in 2015. We also maintained the quarterly dividend at 22 cents per share in the third quarter after increasing it by one cent in the second quarter.

“Total assets are up $57.5 million year to date and $51.0 million from a year ago,” noted President McKim. “Total loans have increased $45.6 million or 5.0% year to date, and year over year, total loans are up $55.0 million or 6.1%. Loan demand continues to do well, with the majority of loan growth in commercial loans - typically some of our highest yielding assets. We also saw modest growth in all other loan categories. On the funding side of the balance sheet, low-cost deposits are up $95.1 million or 19.9% year to date and our funding mix remains strong, with wholesale funding at 27.8% as of September 30, 2015.

1

“Net interest income on a tax equivalent basis for the first nine months of 2015 was up $404,000 from the same period in 2014,” President McKim continued. “A $1.1 million increase in loan income and a $1.2 million decrease in funding cost more than offset the $1.9 million drop in investment income resulting from a smaller investment portfolio. At the same time, non-interest income for the first nine months of 2015 was $1.0 million or 12.1% above the first nine months of 2014, primarily due to securities gains and mortgage origination income, while non-interest expense was $393,000 or 1.8% below the same period in 2014 led by lower employee costs.

“Credit quality continues on the path of significant improvement that we have seen for the past several quarters” President McKim said. “Non-performing assets stood at 0.65% of total assets as of September 30, 2015 - the lowest level since the second quarter of 2008. This is well below the 1.10% we saw in non-performing assets a year ago, and down from 0.97% at year end. Past-due loans were 1.01% of total loans at September 30, 2015, a significant drop from 1.29% of total loans at the end of 2014.

“Our provision for loan losses was $1.1 million for the first nine months of 2015,” President McKim said, “a $250,000 increase from the $850,000 we provisioned in the first nine months of 2014. In the third quarter of 2015, however, we provisioned only $200,000 compared to $350,000 in the third quarter of 2014. The allowance for loan losses stood at 1.0% of total loans as of September 30, 2015, down from 1.13% at December 31, 2014 and from 1.28% a year ago. At the same time, other credit-related costs - including expenses for collections, foreclosure and foreclosed properties - were $775,000 for the first nine months of 2015 compared to $981,000 for the first nine months of 2014.”

“All of these positive factors can be seen in our operating ratios,” observed F. Stephen Ward, the Company’s Chief Financial Officer. “Our return on average assets was 1.11% for the first nine months of 2015 compared to 1.02% for the first nine months of 2014, and our return on average tangible common equity was 12.29% compared to 12.02% for the same periods, respectively. At

2

53.76% for the first nine months of 2015, the efficiency ratio dropped more than 2.50% from the same period in 2014 and remains well below the Bank’s UBPR peer group average which stood at 65.56% as of June 30, 2015.

“The First Bancorp’s price per share was $19.10 at September 30, 2015, up $1.01 from December 31, 2014 and with a total return with dividends reinvested of 8.07% for the first nine months of 2015,” Mr. Ward noted. “This was well ahead of the broad market, as measured by the S&P 500 with a total return of -5.29% for the period, and the Russell 2000, with a total return of -7.73%. We have also outperformed the banking industry in 2015, with total returns year to date of 4.32% for the KBW Regional Bank Index and 5.12% for the Nasdaq Bank Index.”

“The Board of Directors raised the dividend by one cent in the second quarter to 22 cents per share per quarter,” President McKim commented, "and we maintained the dividend at that level in the third quarter. We continue to pay out more than half of our earnings in dividends and based on the September 30, 2015 closing price of $19.10 per share, our annualized dividend yield was a very healthy 4.61%. We feel that our generous dividend continues to be one of the major reasons people invest in our stock, and periodically increasing our dividend is consistent with the overall performance we have seen over the past two years.

“We are extremely pleased with the strong operating results we have posted for the first nine months of 2015,” President McKim concluded. “After several years of little or no growth in the loan portfolio, we are now seeing good loan demand as the Maine economy improves. Our Bangor office has now been open for more than two years and is doing very well and is ahead of expectations. We have also been very successful on the liability side of the balance sheet, with excellent deposit growth in 2015. When all of these positives are combined, we have the strong operating results which enable us to reward our shareholders with higher cash dividends.”

3

The First Bancorp
Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data	September 30, 2015			December 31, 2014			September 30, 2014
Assets
Cash and due from banks	$	19,169		$	13,057		$	17,167
Interest-bearing deposits in other banks	301			3,559			773
Securities available for sale	215,933			185,261			190,920
Securities to be held to maturity	245,322			275,919			281,740
Restricted equity securities, at cost	13,912			13,912			13,912
Loans held for sale	200			—			383
Loans	963,151			917,564			908,115
Less allowance for loan losses	9,677			10,344			11,641
Net loans	953,474			907,220			896,474
Accrued interest receivable	5,189			4,748			5,141
Premises and equipment	21,704			22,619			22,721
Other real estate owned	1,916			3,785			4,557
Goodwill	29,805			29,805			29,805
Other assets	32,747			22,246			25,044
Total assets	$	1,539,672		$	1,482,131		$	1,488,637
Liabilities
Demand deposits	$	128,555		$	113,133		$	119,512
NOW deposits	246,155			199,977			213,694
Money market deposits	95,217			98,607			99,260
Savings deposits	199,131			165,601			159,080
Certificates of deposit	141,946			184,471			208,972
Certificates $100,000 to $250,000	204,707			221,892			210,042
Certificates $250,000 and over	42,654			41,138			44,762
Total deposits	1,058,365			1,024,819			1,055,322
Borrowed funds	297,369			279,916			258,636
Other liabilities	16,797			15,842			15,489
Total Liabilities	1,372,531			1,320,577			1,329,447
Shareholders' equity
Common stock	107			107			107
Additional paid-in capital	59,667			59,282			59,053
Retained earnings	105,273			99,816			98,643
Net unrealized gain on securities available-for-sale	2,318			2,522			1,227
Net unrealized loss on transferred securities	(99		)	(48		)	(28		)
Net unrealized gain/(loss) on postretirement benefit costs	(125		)	(125		)	188
Total shareholders' equity	167,141			161,554			159,190
Total liabilities & shareholders' equity	$	1,539,672		$	1,482,131		$	1,488,637
Common Stock
Number of shares authorized	18,000,000			18,000,000			18,000,000
Number of shares issued and outstanding	10,747,495			10,724,359			10,717,787
Book value per common share	$	15.55		$	15.06		$	14.85
Tangible book value per common share	$	12.75		$	12.25		$	12.03

4

The First Bancorp
Consolidated Statements of Income (Unaudited)
	For the nine months ended September 30,				For the quarters ended September 30,
In thousands of dollars, except per share data	2015		2014		2015		2014
Interest income
Interest and fees on loans	$	27,247	$	26,120	$	9,235	$	8,900
Interest on deposits with other banks	16		4		3		1
Interest and dividends on investments	10,509		12,108		3,595		3,968
Total interest income	37,772		38,232		12,833		12,869
Interest expense
Interest on deposits	3,995		5,406		1,236		1,777
Interest on borrowed funds	3,486		3,276		1,086		1,088
Total interest expense	7,481		8,682		2,322		2,865
Net interest income	30,291		29,550		10,511		10,004
Provision for loan losses	1,100		850		200		350
Net interest income after provision for loan losses	29,191		28,700		10,311		9,654
Non-interest income
Investment management and fiduciary income	1,706		1,619		548		517
Service charges on deposit accounts	1,801		1,899		564		598
Net securities gains	1,396		1,145		1		1,105
Mortgage origination and servicing income	1,093		610		388		256
Other operating income	3,471		3,173		1,474		1,180
Total non-interest income	9,467		8,446		2,975		3,656
Non-interest expense
Salaries and employee benefits	10,944		11,268		3,784		4,048
Occupancy expense	1,772		1,688		556		517
Furniture and equipment expense	2,324		2,124		772		752
FDIC insurance premiums	667		764		221		245
Amortization of identified intangibles	47		245		11		82
Other operating expense	6,198		6,256		2,363		2,158
Total non-interest expense	21,952		22,345		7,707		7,802
Income before income taxes	16,706		14,801		5,579		5,508
Applicable income taxes	4,269		3,518		1,391		1,400
Net Income	$	12,437	$	11,283	$	4,188	$	4,108
Basic earnings per share	$	1.17	$	1.06	$	0.39	$	0.39
Diluted earnings per share	$	1.16	$	1.05	$	0.39	$	0.38

5

The First Bancorp
Selected Financial Data (Unaudited)
	As of and for the nine months ended September 30,						As of and for the quarters ended September 30,
Dollars in thousands, except for per share amounts	2015			2014			2015			2014
Summary of Operations
Interest Income	$	37,772		$	38,232		$	12,833		$	12,869
Interest Expense	7,481			8,682			2,322			2,865
Net Interest Income	30,291			29,550			10,511			10,004
Provision for Loan Losses	1,100			850			200			350
Non-Interest Income	9,467			8,446			2,975			3,656
Non-Interest Expense	21,952			22,345			7,707			7,802
Net Income	12,437			11,283			4,188			4,108
Per Common Share Data
Basic Earnings per Share	$	1.17		$	1.06		$	0.39		$	0.39
Diluted Earnings per Share	1.16			1.05			0.39			0.38
Cash Dividends Declared	0.650			0.620			0.220			0.210
Book Value per Common Share	15.55			14.85			15.55			14.85
Tangible Book Value per Common Share	12.75			12.03			12.75			12.03
Market Value	19.10			16.67			19.10			16.67
Financial Ratios
Return on Average Equity (a)	10.05		%	9.68		%	9.97		%	10.20		%
Return on Average Tangible Common Equity (a)	12.29		%	12.02		%	12.18		%	12.60		%
Return on Average Assets (a)	1.11		%	1.02		%	1.09		%	1.09		%
Average Equity to Average Assets	11.05		%	10.52		%	10.88		%	10.70		%
Average Tangible Equity to Average Assets	9.03		%	8.47		%	8.92		%	8.66		%
Net Interest Margin Tax-Equivalent (a)	3.09		%	3.10		%	3.11		%	3.07		%
Dividend Payout Ratio	55.56		%	58.49		%	56.41		%	53.85		%
Allowance for Loan Losses/Total Loans	1.00		%	1.28		%	1.00		%	1.28		%
Non-Performing Loans to Total Loans	0.83		%	1.30		%	0.83		%	1.30		%
Non-Performing Assets to Total Assets	0.65		%	1.10		%	0.65		%	1.10		%
Efficiency Ratio	53.76		%	56.35		%	53.88		%	58.03		%
At Period End
Total Assets	$	1,539,672		$	1,488,637		$	1,539,672		$	1,488,637
Total Loans	963,151			908,115			963,151			908,115
Total Investment Securities	475,167			486,572			475,167			486,572
Total Deposits	1,058,365			1,055,322			1,058,365			1,055,322
Total Shareholders' Equity	167,141			159,190			167,141			159,190
(a) Annualized using a 365-day basis for both years

6

Use of Non-GAAP Financial Measures

Certain information in this release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company's performance and believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges in the current period. The Company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

In several places net interest income is calculated on a fully tax-equivalent basis. Specifically included in interest income was tax-exempt interest income from certain investment securities and loans. An amount equal to the tax benefit derived from this tax-exempt income has been added back to the interest income total which, as adjusted, increased net interest income accordingly. Management believes the disclosure of tax-equivalent net interest income information improves the clarity of financial analysis, and is particularly useful to investors in understanding and evaluating the changes and trends in the Company's results of operations. Other financial institutions commonly present net interest income on a tax-equivalent basis. This adjustment is considered helpful in the comparison of one financial institution's net interest income to that of another institution, as each will have a different proportion of tax-exempt interest from its earning assets. Moreover, net interest income is a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For purposes of this measure as well, other financial institutions generally use tax-equivalent net interest income to provide a better basis of comparison from institution to institution. The Company follows these practices.

The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements, which have been prepared in accordance with GAAP. A 35.0% tax rate was used in both 2015 and 2014.

7

	For the nine months ended				For the quarters ended
In thousands of dollars	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Net interest income as presented	$	30,291	$	29,550	$	10,511	$	10,004
Effect of tax-exempt income	2,332		2,668		775		844
Net interest income, tax equivalent	$	32,623	$	32,218	$	11,286	$	10,848

The Company presents its efficiency ratio using non-GAAP information. The GAAP-based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes securities losses and other-than-temporary impairment charges from noninterest expenses, excludes securities gains from noninterest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:

	For the nine months ended						For the quarters ended
In thousands of dollars	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Non-interest expense, as presented	$	21,952		$	22,345		$	7,707		$	7,802
Net interest income, as presented	30,291			29,550			10,511			10,004
Effect of tax-exempt income	2,332			2,668			775			844
Non-interest income, as presented	9,467			8,446			2,975			3,656
Effect of non-interest tax-exempt income	136			136			45			45
Net securities gains	(1,396		)	(1,145		)	(1		)	(1,105		)
Adjusted net interest income plus non-interest income	$	40,830		$	39,655		$	14,305		$	13,444
Non-GAAP efficiency ratio	53.76		%	56.35		%	53.88		%	58.03		%
GAAP efficiency ratio	55.21		%	58.81		%	57.15		%	57.12		%

The Company presents certain information based upon average tangible common equity instead of total average shareholders' equity. The difference between these two measures is the Company's preferred stock and intangible assets, specifically goodwill from prior acquisitions. Management, banking regulators and many stock analysts use the tangible common equity ratio and the tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. The following table provides a reconciliation of average tangible common equity to the Company's consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles:

8

	For the nine months ended						For the quarters ended
In thousands of dollars	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Average shareholders' equity as presented	$	165,421		$	155,917		$	166,572		$	159,717
Less preferred stock	—			—			—			—
Less intangible assets	(30,137		)	(30,379		)	(30,125		)	(30,379		)
Tangible average shareholders' equity	$	135,284		$	125,538		$	136,447		$	129,338

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission.

Additional Information

For more information, please contact F. Stephen Ward, The First Bancorp's Treasurer & Chief Financial Officer, at 207.563.3272.

9