CPP Repayment May 2013







UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K


CURRENT REPORT


Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 8, 2013


THE FIRST BANCORP, INC.
(Exact name of Registrant as specified in charter)

MAINE
(State or other jurisdiction of incorporation)

0-26589 01-0404322
(Commission file number) (IRS employer identification no.)

Main Street, Damariscotta, Maine 04543
(Address of principal executive offices) (Zip Code)

(207) 563-3195
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligations
of the registrant under any of the following provisions:

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))








TABLE OF CONTENTS

Item 1.01 Entry into a Material Definitive Agreement                        Page 1

Item 9.01 Financial Statements and Exhibits                            Page 2

Signatures                                         Page 3

Exhibit Index                                        Page 4






Section 1 - Registrant's Business and Other Information

Item 1.01    Entry into a Material Definitive Agreement.

Pursuant to a Letter Agreement with the United States Treasury dated May 8, 2013, The First Bancorp, Inc., a Maine corporation (the “Company”), has repurchased $10.0 million of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share. This stock was issued to the United States Treasury on January 9, 2009 under its Capital Purchase Program. The repurchase transaction was approved by the Federal Reserve Bank of Boston, the Company’s primary regulator, based on the Company’s projected capital ratios and needs.

With this transaction, the Company has repurchased all of the Fixed Rate Cumulative Perpetual Preferred Stock, Series A, that was issued to the United States Treasury in 2009. In conjunction with the 2009 preferred stock issuance, the Company also issued a Warrant to the United States Treasury, exercisable for up to 225,904 shares of Common Stock at an exercise price of $16.60 per share. The Warrant was unchanged as a result of this repurchase transaction and remains outstanding.

Based on the Company’s March 31, 2013 capital levels, the leverage capital ratio declines to 8.47% from 9.19% before the repurchase. The tier one risk-based capital ratio drops from 16.05% to 14.79% and the total risk-based capital ratio drops from 17.31% to 16.05%. These are all well above the FDIC minimum requirements of 5.00%, 6.00% and 10.00%, respectively, to be considered “well-capitalized”. The following table presents the Company’s actual capital ratios as of December 31, 2012 and pro-forma capital ratios after the repurchase:

 
 Actual
Before Repurchase
Pro-Forma After Repurchase
FDIC
Well-Capitalized
Tier One Capital
$
127,472,000

$
117,472,000

 
Total Capital
137,433,000

127,433,000

 
Average Assets for Leverage Ratio
1,386,864,000

1,386,864,000

 
Risk-Based Assets
794,144,000

794,144,000

 
 
 
 
 
Leverage Capital Ratio
9.19
%
8.47
%
5.00
%
Tier One Risk-Based Capital Ratio
16.05
%
14.79
%
6.00
%
Total Risk-Based Capital Ratio
17.31
%
16.05
%
10.00
%









ITEM 9.01      FINANCIAL STATEMENTS AND EXHIBITS
 
(d)        Exhibits
 
Exhibit
No.
    Description
           
10.1
Letter Agreement, dated May 8, 2013, between the Company and the United States Department of the Treasury for the repurchase of 10,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share.






SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


THE FIRST BANCORP, INC.


By: /s/ F. STEPHEN WARD
---------------------
F. Stephen Ward
Executive Vice President & Chief Financial Officer

Dated: May 8, 2013







INDEX TO EXHIBITS
 
Exhibit
No.
    Description
           
10.1
Letter Agreement, dated May 8, 2013, between the Company and the United States Department of the Treasury for the repurchase of 10,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share.