May 27, 2024

Maine bank to get $25M from Treasury program

DAMARISCOTTA – The First Bancorp announced that it has received preliminary approval to obtain $25 million under the U.S. Treasury Capital Purchase Program. The company said a special meeting of shareholders will be held Dec. 29 to amend the company’s articles of incorporation to authorize the issuance of preferred stock in order to participate in the U.S. Treasury program.

“The Capital Purchase Program was created under the Emergency Economic Stabilization Act and is intended to provide healthy financial institutions with the opportunity to raise additional capital by selling preferred stock directly to the U.S. Treasury,” noted Daniel R. Daigneault, the company’s president and chief executive officer.

“This is to encourage U.S. financial institutions to build their capital and to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. By participating in the program, The First will have greater capacity to lend in the communities we serve, which is especially important in these challenging economic times.

Daigneault also said that “while our regulatory capital ratios are strong, the board of directors believe that enhancing our capital position is especially prudent given the current condition of the United States economy,”

The First Bancorp, with headquarters in Damariscotta, is the holding company for The First N.A. Founded in 1864, The First is an independent community bank serving midcoast and Down East Maine with 14 offices in Lincoln, Knox, Hancock and Washington counties.

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