First Bancorp : Reports 4th Quarter 2016 Earnings

Exhibit 99.1 The First Bancorp Reports Record Results for 2016

DAMARISCOTTA, ME, January 18, 2017 - The First Bancorp (Nasdaq: FNLC), parent company of First National Bank, today announced record operating results for the year ended December 31, 2016. Net income was $18.0 million, up $1.8 million or 11.1% from the $16.2 million reported for the year ended December 31, 2015. Earnings per common share on a fully diluted basis of $1.66 were up $0.15 or 9.9% compared to 2015. The Company also announced operating results for the quarter ended December 31, 2016. Net income was $4.3 million, up

$551,000 or 14.6% from the fourth quarter of 2015, and earnings per common share on a fully diluted basis of $0.40 were up $0.05 or 14.3% from the same period in 2015.

"This was the best annual performance in the Company's history," observed Tony C. McKim, the Company's President and Chief Executive Officer. "Increased net interest income was the primary driver for our 2016 performance, the result of continued strong growth in earning assets. At the same time, we saw a modest drop in operating expense in 2016 compared to 2015. We maintained the quarterly dividend at 23 cents per share in the fourth quarter and given our record earnings, we also declared a special cash dividend of 12 cents per share for the same quarter.

"Earning assets increased $142.1 million in 2016," noted President McKim. "The loan portfolio increased $82.9 million to end the year at $1.07 billion. The commercial loan portfolio was up

$56.0 million or 13.2% and residential loans were up $18.3 million or 4.5%. The investment portfolio was up $61.9 million or 13.0% over 2015 despite having a significant volume of securities called by their issuers. On the funding side of the balance sheet, low-cost deposits were up $61.6 million or 10.6% totaling $640.8 as of December 31, 2016 and total deposits were up

$199.8 million or 19.1% to $1.24 billion at year-end.

"Net interest income on a tax equivalent basis in 2016 was up $2.1 million or 4.7% from 2015," President McKim continued, "with growth in earning assets responsible for the increase. Non- interest income in 2016 was up $269,000 or 2.2% over 2015, with a $634,000 increase in mortgage origination income and a $153,000 increase in First Advisors income offsetting the

strategic decision to not take gains from sale of securities at the level taken in 2015. Non-interest expense in 2016 was $513,000 or 1.7% below 2015, primarily due to a reduction in other-credit- related costs outside of the provision for loan losses.

"Continued improvement in credit quality was another contributor to our 2016 results," President McKim said. "Non-performing assets stood at 0.48% of total assets as of December 31, 2016 - well below the 0.57% level of non-performing assets a year ago. Net charge offs were 0.13% of average loans in 2016, down from 0.21% of average loans in 2015. We provisioned $1.6 million for loan losses in 2016, up $50,000 from the amount provisioned in 2015 and the allowance for loan losses stood at 0.95% of total loans as of December 31, 2016, down from 1.0% of total loans a year ago."

"The strong financial results we posted in 2016 can certainly be seen in our operating ratios," observed F. Stephen Ward, the Company's Chief Financial Officer. "Our return on average assets was 1.12% in 2016 compared to a 1.07% return in 2015, and our return on average tangible common equity was 12.42% compared to 11.90% for the same periods, respectively. In comparison, the return on common equity average for the Bank's UBPR peer group was 9.56% as of September, 2016, placing the Bank in the 83rd percentile. Our efficiency ratio stood at 50.43% for 2016 compared to 54.26% for 2015 and remains well below the Bank's UBPR peer group average which stood at 63.96% as of September 30, 2016.

"Our stock performance was another major positive in 2016," Mr. Ward noted. "The First Bancorp ended 2016 at $33.10 per share, up $12.63 from our December 31, 2015, close at

$20.47 per share. With dividends reinvested, our total return for 2016 was 68.78%. We outperformed the broad market during this period, as measured by the S&P 500 which had a total return with dividends reinvested of 11.95%, as well the Russell 2000, in which we are included, which had a total return of 21.28%. We also outperformed the banking industry, with total returns year to date of 39.12% for the KBW Regional Bank Index and 37.97% for the Nasdaq Bank Index."

"The Board of Directors maintained the quarterly dividend at 23 cents per share in the fourth quarter of 2016," President McKim commented. "Based on the December 31, 2016 closing price of $33.10 per share, our annualized dividend yield was a respectful 2.78%. In addition to the regular quarterly dividend, the Board of Directors also declared a special cash dividend of 12 cents per share in the fourth quarter. This special dividend is intended to share our record

operating results in 2016 with our shareholders. With regular quarterly dividends of 91 cents per share and the special cash dividend of 12 cents per share, total dividends declared in 2016 were

$1.03 per share which resulted in a dividend payout ratio of 61.31% for the year.

"If I had to sum up 2016 for The First Bancorp in one word, it would be 'incredible'," President McKim concluded. "Growth in earning assets of $142.1 million fueled the $2.1 million increase in net interest income on a tax-equivalent basis. Non-interest income was up slightly despite a lower level of gains on sales of securities and non-interest expense actually dropped compared to 2015. These factors enabled us to share this great year with our shareholders in the form of increased cash dividends and our shareholders were further rewarded with an increase of $12.63 per share in the price of our stock. As always, I am most proud of the tremendous team of people we have at First National Bank. We have a dedicated group who are all pulling on the same rope in the same direction, day in and day out, to provide quality service to our customers. It is their positive attitude and tenacity that is ultimately behind the great year we had in 2016."

The First Bancorp

Consolidated Balance Sheets (Unaudited)

In thousands of dollars except common stock data	December 31, 2016	December 31, 2015
Assets
Cash and due from banks	$ 17,366	$ 14,299
Interest-bearing deposits in other banks	293	4,013
Securities available for sale	300,416	223,039
Securities to be held to maturity	226,828	240,023
Restricted equity securities, at cost	11,930	14,257
Loans held for sale	782	349
Loans	1,071,526	988,638
Less allowance for loan losses	10,138	9,916
Net loans	1,061,388	978,722
Accrued interest receivable	5,532	4,912
Premises and equipment	22,202	21,816
Other real estate owned	375	1,532
Goodwill	29,805	29,805
Other assets	35,958	32,043
Total assets	$ 1,712,875	$ 1,564,810
Liabilities
Demand deposits	$ 160,488	$ 130,566
NOW deposits	262,965	242,638
Money market deposits	125,544	92,994
Savings deposits	217,340	206,009
Certificates of deposit	195,115	158,529
Certificates $100,000 to $250,000	240,904	175,077
Certificates $250,000 and over	40,601	37,376
Total deposits	1,242,957	1,043,189
Borrowed funds	278,901	337,457
Other liabilities	18,497	16,666
Total Liabilities	1,540,355	1,397,312
Shareholders' equity
Common stock	108	108
Additional paid-in capital	60,723	59,862
Retained earnings	111,692	106,673
Net unrealized gain (loss) on securities available-for-sale	(935)	1,123
Net unrealized loss on securities transferred from available for sale to held to maturity	(129)	(112)
Net unrealized gain on cash flow hedging derivative instruments	1,163	-
Net unrealized loss on postretirement benefit costs	(102)	(156)
Total shareholders' equity	172,520	167,498
Total liabilities & shareholders' equity	$ 1,712,875	$ 1,564,810
Common Stock
Number of shares authorized	18,000,000	18,000,000
Number of shares issued and outstanding	10,793,399	10,753,855
Book value per common share	$ 15.98	$ 15.58
Tangible book value per common share	$ 13.20	$ 12.78