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First Bancorp (North Carolina)

First Bancorp Reports Fourth Quarter and Full Year Results

 

Fourth Quarter 2025 Financial Data

(Dollars in 000s, except
per share data)

Q4-2025


Q3-2025


Q4-2024

Summary Income Statement

Total interest income

$  143,634


$  144,200


$  132,395

Total interest expense

37,435


41,711


43,554

Net interest income

106,199


102,489


88,841

Provision for credit losses

4,732


3,442


507

Noninterest income

(22,299)


(12,879)


(23,177)

Noninterest expenses

62,223


60,211


58,279

Income tax expense

1,232


5,594


3,327

Net income

$ 15,713


$ 20,363


$   3,551







Key Metrics

Diluted EPS

$     0.38


$     0.49


$     0.08

Adjusted diluted EPS (1)

$     1.19


$     1.01


$     0.76

Book value per share

39.89


38.67


34.96

Tangible book value per share

28.23


26.98


23.17

ROA

0.49 %


0.64 %


0.12 %

Adjusted ROA (1)

1.54 %


1.31 %


1.03 %

ROCE

3.83 %


5.14 %


1.29 %

Adjusted ROCE (1)

12.01 %


10.55 %


8.60 %

ROTCE

5.80 %


7.83 %


1.93 %

Adjusted ROTCE (1)

17.45 %


15.66 %


13.39 %

NIM

3.58 %


3.46 %


3.05 %

NIM- T/E

3.60 %


3.47 %


3.08 %

Quarterly NCO ratio

0.05 %


0.14 %


0.04 %

ACL ratio

1.42 %


1.44 %


1.51 %







Capital Ratios (2)

Tangible common equity to tangible assets

9.61 %


9.12 %


8.22 %

Common equity tier I capital ratio

14.06 %


14.35 %


14.35 %

Total risk-based capital ratio

16.08 %


16.58 %


16.63 %


(1) Q4-2025, Q3-2025 and Q4-2024 adjusted to exclude impact of
securities loss of $43.7 million (after tax $33.6 million), $27.9 million
(after tax $21.4 million) and $36.8 million (after tax $28.2 million),
respectively.  See Appendices D, E, F and G.


(2) December 31, 2025 ratios are preliminary.

Fourth Quarter 2025 Highlights

  • Diluted earnings per share ("D-EPS") was $0.38 per share for the fourth quarter of 2025 compared to $0.49 for the linked quarter and $0.08 for the like quarter. 
  • Excluding the impact of the $43.7 million securities loss,  adjusted D-EPS was $1.19 per share for the fourth quarter of 2025.
  • Loan growth accelerated in the fourth quarter, resulting in total loans of $8.7 billion at December 31, 2025, representing an increase of $303.2 million, or 14.3% annualized. Total loan yield was 5.58%, down 11 basis points from the linked quarter and up 11 basis points from the like quarter. 
  • The yield on securities increased 14 basis points to 2.69% for the quarter ended December 31, 2025 from 2.55% for the linked quarter.  A securities loss-earnback transaction was executed during November, including the sale of $342.0 million of securities and the purchase of $228.4 million of securities with a weighted average yield of 4.36%. The increased yield on the new purchases was included for half of the fourth quarter.
  • Total cost of funds decreased 15 basis points to 1.36% for the quarter ended December 31, 2025 from 1.51% for the linked quarter and 1.62% for the like quarter.
  • Average core deposits were $10.8 billion for the fourth quarter of 2025, a decrease of $7.8 million from the linked quarter.  Total cost of deposits was 1.32%, a decrease of 14 basis points from 1.46% for the linked quarter and a decrease of 25 basis points from the like quarter at 1.57%. 
  • Expense management continues to be a focus.  Noninterest expenses of $62.2 million represented a $2.0 million increase from the linked quarter and $3.9 million from the like quarter.  The linked quarter increase was driven by a $1.8 million increase in Other operating expenses and a $0.6 million increase in Total personnel expense.
  • During the fourth quarter of 2025, the Company sold an office building and recognized a pretax gain of $4.6 million.
  • Noninterest-bearing demand deposits were $3.5 billion, representing 32% of total deposits at December 31, 2025.  During the fourth quarter of 2025, period end customer deposits contracted by $132.8 million.
  • The loan-to-deposit ratio increased to 81.2% as of December 31, 2025.
  • The Company repaid $18 million of subordinated debt during the fourth quarter. As a result, along with loan growth, certain regulatory capital ratios declined during the quarter.

SOUTHERN PINES, N.C. , Jan. 21, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited fourth quarter and full year earnings today.  The Company announced net income of $15.7 million, or $0.38 D-EPS, for the three months ended December 31, 2025 compared to $20.4 million, or $0.49 D-EPS, for the three months ended September 30, 2025 ("linked quarter") and $3.6 million, or $0.08 D-EPS, for the fourth quarter of 2024 ("like quarter").   For the twelve months ended December 31, 2025, the Company recorded net income of $111.0 million, or $2.68 per diluted common share, compared to $76.2 million, or $1.84 per diluted common share, for the twelve months ended December 31, 2024.

Adjusting for the securities loss-earnback transaction completed in November, adjusted net income was $49.3 million, or $1.19 adjusted D-EPS, for the fourth quarter of 2025. For the twelve months ended December 31, 2025, excluding the securities loss-earnback transactions in the third and fourth quarters, adjusted net income was $166.1 million, or $4.01 adjusted D-EPS.

The Company continued to enhance net interest income and net interest margin ("NIM") during the fourth quarter of 2025. The Company recorded net interest income of $106.2 million for the fourth quarter of 2025, compared to $102.5 million for the linked quarter and $88.8 million for the like quarter. NIM for the fourth quarter of 2025 expanded to 3.58% from 3.46% for the linked quarter and 3.05% for the like quarter. 

First Bancorp also continued to maintain expense control with noninterest expenses of $62.2 million for the fourth quarter of 2025, up slightly from $60.2 million for the linked quarter and $58.3 million for the like quarter.  For the twelve months ended December 31, 2025, the Company recorded noninterest expense of $239.3 million, up slightly from $235.6 million, for the twelve months ended December 31, 2024.

The results for the fourth quarter 2025 include a securities loss of $43.7 million ($33.6 million after-taxes, or negative $0.81 per diluted share) from the securities loss-earnback transaction that included the sale of $342.0 million of available-for-sale securities yielding of 1.67%. The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the fourth quarter of 2025 are presented in Appendix D.

The results for the fourth quarter of 2025 also include a $1.6 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($1.2 million after-taxes or $0.03 per diluted share).The reconciliations from net income and per share impact for the fourth quarter of 2025 are presented in Appendix H.

Richard H. Moore, Chairman and CEO of the Company, stated "First Bancorp closed 2025 with strong momentum, highlighted by a 51 basis-point expansion in net interest margin for the year, solid loan growth and continued expense discipline.  During the quarter we grew loans at an annualized rate of more than 14%  and our earnings continued to benefit from rising asset yields as higher-yielding assets replaced lower-yielding COVID-era assets.  Our liquidity, capital and credit quality remain strong and we are very pleased with the Bank's performance and its accelerating momentum as we move into 2026."

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2025 was $106.2 million, an increase of 3.6% from the linked quarter of $102.5 million and 19.5% from the like quarter of $88.8 million.  The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025, while increasing loan yields through originations as well as increased securities yields resulting from the securities loss-earnback transactions executed in the fourth quarter of 2024 and the third and fourth quarters of 2025.

The Company's NIM for the fourth quarter of 2025 was 3.58%, an increase of 12 basis points from the linked quarter and 53 basis points from the like quarter.  Within interest-earning assets, average loans increased $237.8 million while loan yields decreased 11 basis points during the quarter to 5.58%, attributable to the three rate cuts by the Federal Reserve between September and December 2025.  Also, we executed a securities loss-earnback transaction including the purchase of $228.4 million of securities with a weighted average yield of 4.36% that contributed to the 14 basis point increase in the yield on securities as compared to the linked quarter.  During the quarter ended December 31, 2025, the cost of interest-bearing deposits decreased 21 basis points from the linked quarter and declined 34 basis points from the like quarter, attributable to the three rate cuts by the Federal Reserve between September and December 2024 and the three additional rate cuts between September and December 2025.  The like quarter expansion of NIM was driven by the same factors described above resulting in an increase of 73 basis points in securities yield,  an increase of 11 basis points in loan yields, and a decrease of 34 basis points in the cost of interest-bearing deposits.

For the Three Months Ended

YIELD INFORMATION


December 31, 2025


September 30, 2025


December 31, 2024








Yield on loans


5.58 %


5.69 %


5.47 %

Yield on securities


2.69 %


2.55 %


1.96 %

Yield on other earning assets


4.31 %


4.64 %


4.49 %

Yield on total interest-earning assets


4.84 %


4.86 %


4.55 %








Cost of interest-bearing deposits


1.97 %


2.18 %


2.31 %

Cost of borrowings


7.04 %


7.20 %


7.66 %

Cost of total interest-bearing liabilities


2.02 %


2.24 %


2.38 %

Total cost of funds


1.36 %


1.51 %


1.62 %

Cost of total deposits


1.32 %


1.46 %


1.57 %








Net interest margin (1)


3.58 %


3.46 %


3.05 %

Net interest margin - tax-equivalent (2)


3.60 %


3.47 %


3.08 %

Average prime rate


7.02 %


7.46 %


7.81 %







(1)  Calculated by dividing annualized net interest income by average earning assets for the period.

(2)  Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense.

See Appendix I regarding loan purchase discount accretion and its impact on the Company's NIM.

Provision for Credit Losses and Credit Quality

For the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, the Company recorded $4.7 million, $3.4 million and $0.5 million in provision for credit losses, respectively. The provision for the fourth quarter of 2025 was driven by net charge-offs of $1.1 million and reserves related to $303.2 million of loan growth, partially offset by the $1.6 million reduction in reserves for potential credit exposure from Hurricane Helene.  The net effect of these factors was a $2.6 million increase in the allowance for credit losses to $123.6 million, or 1.42% of loans.  Additionally, the $1.0 million provision for unfunded commitments during the quarter was the result of an increase in the level of available unfunded lending commitments.  The provision for the fourth quarter of 2024 was driven by loan growth and net charge offs.

Based upon its continuing evaluation of the potential impacts from Hurricane Helene, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $1.9 million as of December 31, 2025.  The remaining incremental reserve contributes two basis points to the Allowance for Credit Losses at period end. 

Asset quality remained strong with annualized net loan charge-offs of 0.05% for the fourth quarter of 2025.  Total nonperforming assets ("NPAs") totaled $37.7 million at December 31, 2025, or 0.30% of total assets, down slightly from 0.31% at September 30, 2025 and consistent with 0.30% at December 31, 2024.  

The following table presents the summary of NPAs and asset quality ratios for each period.

ASSET QUALITY DATA

($ in thousands)


December 31,
2025


September 30,
2025


December 31,
2024








Nonperforming assets







Nonaccrual loans


$          36,315


$          37,289


$          31,779

Accruing loans > 90 days past due


—


—


—

Total nonperforming loans


36,315


37,289


31,779

Foreclosed real estate


1,425


1,718


4,965

Total nonperforming assets


$          37,740


$          39,007


$          36,744








Asset Quality Ratios







Quarterly net charge-offs to average loans - annualized


0.05 %


0.14 %


0.04 %

Nonperforming loans to total loans


0.42 %


0.44 %


0.39 %

Nonperforming assets to total assets


0.30 %


0.31 %


0.30 %

Allowance for credit losses to total loans


1.42 %


1.44 %


1.51 %

Noninterest Income

Total noninterest income for the fourth quarter of 2025 was negative $22.3 million, reflecting the inclusion of the $43.7 million loss on securities.  Excluding the loss on securities, noninterest income totaled $21.4 million during the fourth quarter of 2025, a 42.6% increase from the $15.0 million adjusted noninterest income recorded in the linked quarter and a 57.0% increase from the $13.6 million recorded for the like quarter.  As compared to the linked quarter, noninterest income, excluding the loss on securities, increased primarily due to a pretax gain of $4.6 million realized upon the sale of an office building during the quarter.

Noninterest Expenses

Noninterest expenses amounted to $62.2 million for the fourth quarter of 2025 compared to $60.2 million for the linked quarter and $58.3 million for the like quarter.  The $2.0 million, or 3.3%, increase in noninterest expense from the linked quarter was driven by a $0.6 million increase in total personnel expenses arising from increased total personnel expense and incentives as well as a $1.8 million increase in other operating expenses. The $3.9 million increase from the like quarter was driven by a $2.3 million increase in total personnel expenses and a $1.7 million increase in other operating expenses. For the fourth quarter of 2025, other operating expenses included several elevated expense categories arising from increased customer-driven and seasonal activity.

Income Taxes

Income tax expense totaled $1.2 million for the fourth quarter of 2025 compared to $5.6 million for the linked quarter and $3.3 million for the like quarter. These equated to effective tax rates of 7.3%, 21.6% and 48.4% for the respective periods.  The fourth quarter of 2025 included approximately $2.1 million of net discrete tax benefits, primarily arising from state taxes, including the continued NC graduated tax rate reductions.

Balance Sheet

Total assets at December 31, 2025 were $12.7 billion, a decrease of $81.9 million, or 2.5% annualized, from the linked quarter and an increase of $520.6 million, or 4.3%, from a year earlier.

Key period end balance sheet components are presented below.

BALANCES

($ in thousands)


December
31, 2025


September
30, 2025


December
31, 2024


Change
4Q25 vs
3Q25


Change
4Q25 vs
4Q24












Total assets


$ 12,668,339


$ 12,750,263


$ 12,147,694


(0.6) %


4.3 %

Loans


8,722,419


8,419,224


8,094,676


3.6 %


7.8 %

Investment securities


2,561,655


2,680,401


2,563,060


(4.4) %


(0.1) %

Total cash and cash equivalents


309,595


597,975


507,507


(48.2) %


(39.0) %

Noninterest-bearing deposits


3,486,985


3,580,560


3,367,624


(2.6) %


3.5 %

Interest-bearing deposits


7,261,436


7,300,610


7,162,901


(0.5) %


1.4 %

Borrowings


74,569


92,421


91,876


(19.3) %


(18.8) %

Shareholders' equity


1,654,168


1,603,323


1,445,611


3.2 %


14.4 %

Driven by prepayments, maturities and sales in excess of reinvestments, total investment securities decreased to $2.6 billion at December 31, 2025, reflecting a $118.7 million decrease from the linked quarter.  Total unrealized losses on available for sale investment securities was $194.1 million at December 31, 2025, as compared to $251.8 million at September 30, 2025 and $368.1 million at December 31, 2024.  As part of the November securities loss-earnback transaction in the securities portfolio, $342.0 million of securities were sold at a loss of $43.7 million and $228.4 million of securities were purchased, with a weighted average yield of 4.36%.

Total loans amounted to $8.7 billion at December 31, 2025, an increase of $303.2 million, or 14.3% annualized, from September 30, 2025 and an increase of $627.7 million, or 7.8%, from December 31, 2024.  Please see below table for total loan portfolio mix.  As of December 31, 2025, there were no notable concentrations in geographies within North Carolina and South Carolina or industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below.  The Company's exposure to non-owner occupied office loans represented approximately 6.3% of the total portfolio at December 31, 2025, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million.  Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.

The following table presents the period end balance and portfolio percentage by loan category.

LOAN PORTFOLIO


December 31, 2025


September 30, 2025


December 31, 2024

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Commercial and industrial


$   1,046,438


12 %


$      904,226


11 %


$      919,690


11 %

Construction, development & other land loans


753,199


9 %


688,302


8 %


647,167


8 %

Commercial real estate - owner occupied


1,353,912


15 %


1,337,345


16 %


1,248,812


16 %

Commercial real estate - non-owner occupied


2,843,555


33 %


2,773,349


33 %


2,625,554


33 %

Multi-family real estate


537,015


6 %


535,681


6 %


506,407


6 %

Residential 1-4 family real estate


1,736,453


20 %


1,743,884


21 %


1,729,322


21 %

Home equity loans/lines of credit


383,652


4 %


365,488


4 %


345,883


4 %

Consumer loans


67,458


1 %


70,031


1 %


70,653


1 %

Loans, gross


8,721,682


100 %


8,418,306


100 %


8,093,488


100 %

Unamortized net deferred loan fees


737




918




1,188



Total loans


$   8,722,419




$   8,419,224




$   8,094,676



Total deposits were $10.7 billion at December 31, 2025, a decrease of $132.7 million, or 4.8% annualized, from  September 30, 2025 and an increase of $217.9 million, or 2.1%, from December 31, 2024.

The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at December 31, 2025.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO


December 31, 2025


September 30, 2025


December 31, 2024

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Noninterest-bearing checking accounts


$   3,486,985


32 %


$   3,580,560


33 %


$   3,367,624


32 %

Interest-bearing checking accounts


1,420,795


13 %


1,418,378


13 %


1,398,395


13 %

Money market accounts


4,510,356


42 %


4,527,728


41 %


4,285,405


41 %

Savings accounts


526,643


5 %


532,462


5 %


542,133


5 %

Other time deposits


493,282


5 %


504,942


5 %


566,514


5 %

Time deposits >$250,000


305,473


3 %


312,255


3 %


360,854


4 %

Total customer deposits


10,743,534


100 %


10,876,325


100 %


10,520,925


100 %

Brokered deposits


4,887


— %


4,845


— %


9,600


— %

Total deposits


$ 10,748,421


100 %


$ 10,881,170


100 %


$ 10,530,525


100 %

As of December 31, 2025 and September 30, 2025, estimated insured deposits totaled $6.5 billion, or 60.2% of total deposits.  In addition, at December 31, 2025 and September 30, 2025, there were collateralized deposits of $730.4 million and $682.7 million, respectively, such that approximately 67.0% and 66.0%, respectively, of our total deposits were insured or collateralized at those dates.

Capital

The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at December 31, 2025 of 16.08%, down from  the linked quarter ratio of 16.58% and from the like quarter ratio of 16.63%.   The decrease during the fourth quarter of 2025 in risk-based capital ratios was driven by the $303.2 million of loan growth during the quarter, which carries a higher risk weight than short term investments, along with the repayment of $18.0 million of subordinated debt during the quarter.

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital.  AOCI is included in the Company's tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 9.61% at December 31, 2025, an increase of 49 basis points from the linked quarter and 139 basis points from December 31, 2024.  The fourth quarter increase in TCE was driven by improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter, partially a result of the securities loss-earnback transaction along with market improvements. Please refer to Appendix A for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix C for a calculation of the TCE ratio (a non-GAAP measure).

CAPITAL RATIOS


December 31,
2025
(estimated)


September 30,
2025


December 31,
2024








Tangible common equity to tangible assets (non-GAAP)


9.61 %


9.12 %


8.22 %

Common equity tier I capital ratio


14.06 %


14.35 %


14.35 %

Tier I leverage ratio


11.19 %


11.18 %


11.15 %

Tier I risk-based capital ratio


14.83 %


15.14 %


15.17 %

Total risk-based capital ratio


16.08 %


16.58 %


16.63 %

Liquidity

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities and other marketable assets) and off-balance sheet (readily available lines of credit and other funding sources).  The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future. 

The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at December 31, 2025 was 14.9%.  In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 32.8%. 

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.7 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina.  Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business.  First Bank also provides SBA loans to customers through its nationwide network of lenders. Member FDIC, Equal Housing Lender.

Please visit our website at www.LocalFirstBank.com for more information.

First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Caution about Forward-Looking Statements: This News Release release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties.  Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.  Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events.  Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions.  For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.  The Company is also not responsible for changes made to this press release by wire services, internet services or other media.

Non-GAAP Measures

In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP").  Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance.  Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted D-EPS. 

 

First Bancorp and Subsidiaries
Financial Summary


CONSOLIDATED INCOME STATEMENT




For the Three Months Ended


For the Twelve Months Ended

($ in thousands, except per share data - unaudited)


December
31, 2025


September
30, 2025


December
31, 2024


December
31, 2025


December
31, 2024

Interest income











Interest and fees on loans


$      120,020


$      118,822


$      109,835


$      462,306


$      441,181

Interest on investment securities:











Taxable interest income


18,103


17,571


12,712


68,055


47,510

Tax-exempt interest income


1,115


1,114


1,116


4,461


4,466

Other, principally overnight investments


4,396


6,693


8,732


22,413


26,083

Total interest income


143,634


144,200


132,395


557,235


519,240

Interest expense











Interest on deposits


35,959


40,035


41,786


152,518


172,085

Interest on borrowings


1,476


1,676


1,768


6,470


14,882

Total interest expense


37,435


41,711


43,554


158,988


186,967

Net interest income


106,199


102,489


88,841


398,247


332,273

Provision for credit losses


4,732


3,442


507


11,502


16,448

Net interest income after provision for credit losses


101,467


99,047


88,334


386,745


315,825

Noninterest income











Service charges on deposit accounts


4,269


4,225


4,293


16,237


16,620

Other service charges and fees


5,653


6,355


5,828


24,486


22,267

Presold mortgage loan fees and gains on sale


583


471


676


1,819


2,292

Commissions from sales of financial products


1,800


1,678


1,202


6,274


5,270

SBA loan sale gains


—


869


291


1,072


3,630

Bank-owned life insurance income


1,375


1,289


1,225


5,113


4,773

Securities losses, net


(43,722)


(27,905)


(36,820)


(71,627)


(37,981)

Other Income, net


7,743


139


128


8,691


1,028

Total noninterest income


(22,299)


(12,879)


(23,177)


(7,935)


17,899

Noninterest expenses











Salaries, incentives and commissions expense


30,747


31,065


28,447


119,478


113,853

Employee benefit expense


6,673


5,751


6,702


24,706


26,169

Total personnel expense


37,420


36,816


35,149


144,184


140,022

Occupancy and equipment expense


4,903


5,145


4,700


20,435


20,535

Intangibles amortization expense


1,294


1,394


1,563


5,672


6,604

Other operating expenses


18,606


16,856


16,867


69,019


68,446

Total noninterest expenses


62,223


60,211


58,279


239,310


235,607

Income before income taxes


16,945


25,957


6,878


139,500


98,117

Income tax expense


1,232


5,594


3,327


28,452


21,902

Net income


$         15,713


$         20,363


$           3,551


$      111,048


$         76,215

Earnings per common share:











Basic


$             0.38


$             0.49


$             0.09


$             2.68


$             1.85

Diluted


0.38


0.49


0.08


2.68


1.84

 

First Bancorp and Subsidiaries Financial Summary


CONSOLIDATED BALANCE SHEETS


($ in thousands - unaudited)


December 31,
2025


September 30,
2025


December 31,
2024

Assets







Cash and due from banks, noninterest-bearing


$           146,759


$           138,369


$             78,596

Due from banks, interest-bearing


162,836


459,606


428,911

Total cash and cash equivalents


309,595


597,975


507,507








Securities available for sale


2,048,556


2,165,668


2,043,062

Securities held to maturity


513,099


514,733


519,998

Presold mortgages and SBA loans held for sale


7,790


4,032


5,942








Loans


8,722,419


8,419,224


8,094,676

Allowance for credit losses on loans


(123,581)


(120,948)


(122,572)

Net loans


8,598,838


8,298,276


7,972,104








Premises and equipment, net


139,125


141,441


143,459

Accrued interest receivable


39,206


35,986


36,329

Goodwill


478,750


478,750


478,750

Other intangible assets, net


17,232


18,526


22,904

Bank-owned life insurance


193,286


191,911


188,460

Other assets


322,862


302,965


229,179

Total assets


$      12,668,339


$      12,750,263


$      12,147,694








Liabilities







Deposits:







Noninterest-bearing deposits


$        3,486,985


$        3,580,560


$        3,367,624

Interest-bearing deposits


7,261,436


7,300,610


7,162,901

Total deposits


10,748,421


10,881,170


10,530,525








Borrowings


74,569


92,421


91,876

Accrued interest payable


3,747


4,436


4,604

Other liabilities


187,434


168,913


75,078

Total liabilities


11,014,171


11,146,940


10,702,083








Shareholders' equity







Common stock


973,884


973,235


971,313

Retained earnings


829,659


823,483


756,327

Stock in rabbi trust assumed in acquisition


(885)


(877)


(1,148)

Rabbi trust obligation


885


877


1,148

Accumulated other comprehensive loss


(149,375)


(193,395)


(282,029)

Total shareholders' equity


1,654,168


1,603,323


1,445,611

Total liabilities and shareholders' equity


$      12,668,339


$      12,750,263


$      12,147,694

 

First Bancorp and Subsidiaries

Financial Summary


TREND INFORMATION




For the Three Months Ended



December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












PERFORMANCE RATIOS (annualized)











ROA (1)


0.49 %


0.64 %


1.24 %


1.21 %


0.12 %

Adjusted ROA (2)


1.54 %


1.31 %


1.24 %


1.21 %


1.03 %

ROCE (3)


3.83 %


5.14 %


10.11 %


10.06 %


0.96 %

Adjusted ROCE (4)


12.01 %


10.55 %


10.11 %


10.06 %


8.60 %

ROTCE (5)


5.80 %


7.83 %


15.25 %


15.54 %


1.93 %

Adjusted ROTCE (6)


17.45 %


15.66 %


15.25 %


15.54 %


13.39 %












COMMON SHARE DATA











Cash dividends declared - common


$          0.23


$          0.23


$          0.23


$          0.22


$          0.22

Book value per common share


$        39.89


$        38.67


$        37.53


$        36.46


$        34.96

Tangible book value per share (7)


$        28.23


$        26.98


$        25.82


$        24.69


$        23.17

Common shares outstanding at end of period


41,466,227


41,465,437


41,468,098


41,368,828


41,347,418

Weighted average shares outstanding - diluted


41,481,132


41,481,542


41,441,393


41,406,525


41,422,973












CAPITAL INFORMATION (preliminary for current quarter)









Tangible common equity to tangible assets (8)


9.61 %


9.12 %


8.83 %


8.55 %


8.22 %

Common equity tier I capital ratio


14.06 %


14.35 %


14.64 %


14.52 %


14.35 %

Total risk-based capital ratio


16.08 %


16.58 %


16.90 %


16.80 %


16.63 %












(1)  Calculated by dividing annualized net income by average assets.

(2) See Appendix E for a reconciliation of ROA to adjusted ROA.

(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity.  See Appendix F for the components of the calculation.

(4) See Appendix F for a reconciliation of ROCE to adjusted ROCE.

(5) Return on average tangible common equity is a non-GAAP financial measure.  See Appendix G for the components of the calculation and the reconciliation of average common equity to average TCE.

(6) See Appendix G for a reconciliation of ROTCE to adjusted ROTCE.

(7)  Tangible book value per share is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.

(8)  Tangible common equity ratio is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.

 

For the Three Months Ended

INCOME STATEMENT

($ in thousands except per share data)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Net interest income


$      106,199


$      102,489


$         96,676


$         92,883


$         88,841

Provision for credit losses


4,732


3,442


2,212


1,116


507

Noninterest income


(22,299)


(12,879)


14,341


12,902


(23,177)

Noninterest expense


62,223


60,211


58,983


57,893


58,279

Income before income taxes


16,945


25,957


49,822


46,776


6,878

Income tax expense


1,232


5,594


11,256


10,370


3,327

Net income


15,713


20,363


38,566


36,406


3,551












Earnings per common share - diluted


$             0.38


$             0.49


$             0.93


$             0.88


$             0.08

 

First Bancorp and Subsidiaries
 Financial Summary

AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS



For the Three Months Ended


December 31, 2025


September 30, 2025


December 31, 2024

($ in thousands)

Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate

Assets


















Loans (1) (2)

$   8,535,422


$    120,020


5.58 %


$   8,297,643


$    118,822


5.69 %


$   7,993,671


$    109,835


5.47 %

Taxable securities

2,566,169


18,103


2.82 %


2,637,711


17,571


2.66 %


2,535,232


12,712


2.01 %

Non-taxable securities

285,729


1,115


1.56 %


286,750


1,114


1.56 %


289,922


1,116


1.54 %

Short-term investments, primarily interest-bearing cash

404,658


4,396


4.31 %


571,922


6,693


4.64 %


773,655


8,732


4.49 %

Total interest-earning assets

11,791,978


143,634


4.84 %


11,794,026


144,200


4.86 %


11,592,480


132,395


4.55 %

Cash and due from banks

147,748






149,771






80,481





Premises and equipment

140,552






141,858






144,467





Other assets

635,861






554,361






426,343





Total assets

$  12,716,139






$  12,640,016






$  12,243,771





Liabilities


















Interest-bearing checking

$   1,381,272


$       2,100


0.60 %


$   1,403,683


$       2,420


0.68 %


$   1,389,063


$       2,438


0.70 %

Money market deposits

4,539,138


28,358


2.48 %


4,510,662


31,674


2.79 %


4,273,170


31,430


2.93 %

Savings deposits

530,147


249


0.19 %


535,464


267


0.20 %


542,861


269


0.20 %

Other time deposits

503,149


2,937


2.32 %


514,143


3,029


2.34 %


598,152


4,192


2.79 %

Time deposits >$250,000

305,844


2,315


3.00 %


328,207


2,645


3.20 %


377,693


3,457


3.64 %

Total interest-bearing deposits

7,259,550


35,959


1.97 %


7,292,159


40,035


2.18 %


7,180,939


41,786


2.31 %

Borrowings

83,117


1,476


7.04 %


92,349


1,676


7.20 %


91,789


1,768


7.66 %

Total interest-bearing liabilities

7,342,667


37,435


2.02 %


7,384,508


41,711


2.24 %


7,272,728


43,554


2.38 %

Noninterest-bearing checking

3,575,317






3,550,499






3,427,690





Other liabilities

170,179






133,905






77,172





Shareholders' equity

1,627,976






1,571,104






1,466,181





Total liabilities and shareholders' equity

$  12,716,139






$  12,640,016






$  12,243,771





Net yield on interest-earning assets and net interest income



$    106,199


3.58 %




$    102,489


3.46 %




$      88,841


3.05 %

Net yield on interest-earning assets and net interest income –
tax-equivalent (3)



$    106,601


3.60 %




$    102,828


3.47 %




$      89,587


3.08 %

Interest rate spread





2.82 %






2.62 %






2.17 %

Average prime rate





7.02 %






7.46 %






7.81 %


(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.  Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(0.2) million, $(0.3) million and $(0.3) million for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. 

(2)   Includes accretion of discount on acquired loans of $1.3 million, $1.6 million and $2.2 million for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. 

(3)   Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

 

First Bancorp and Subsidiaries

Financial Summary


AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE









For the Twelve Months Ended








December 31, 2025


December 31, 2024

($ in thousands)







Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate

Assets


















Loans (1) (2)







$   8,283,246


$    462,306


5.58 %


$   8,046,681


$    441,181


5.48 %

Taxable securities







2,632,412


68,055


2.59 %


2,608,494


47,510


1.82 %

Non-taxable securities







287,298


4,461


1.55 %


291,520


4,466


1.53 %

Short-term investments, primarily interest-bearing cash







496,404


22,413


4.52 %


561,886


26,083


4.64 %

Total interest-earning assets







11,699,360


557,235


4.76 %


11,508,581


519,240


4.51 %

Cash and due from banks







146,136






84,997





Premises and equipment







141,884






147,916





Other assets







524,650






393,001





Total assets







$  12,512,030






$  12,134,495





Liabilities


















Interest-bearing checking







$   1,412,605


$       9,443


0.67 %


$   1,395,856


$       9,910


0.71 %

Money market deposits







4,437,314


119,158


2.69 %


4,039,999


126,531


3.13 %

Savings deposits







535,863


1,009


0.19 %


564,473


1,209


0.21 %

Other time deposits







527,357


12,406


2.35 %


666,868


20,429


3.06 %

Time deposits >$250,000







332,895


10,502


3.15 %


373,851


14,006


3.75 %

Total interest-bearing deposits







7,246,034


152,518


2.10 %


7,041,047


172,085


2.44 %

Borrowings







89,889


6,470


7.20 %


232,967


14,882


6.39 %

Total interest-bearing liabilities







7,335,923


158,988


2.17 %


7,274,014


186,967


2.57 %

Noninterest-bearing checking







3,506,429






3,367,035





Other liabilities







119,805






76,985





Shareholders' equity







1,549,873






1,416,461





Total liabilities and shareholders' equity







$  12,512,030






$  12,134,495





Net yield on interest-earning assets and net interest income









$    398,247


3.40 %




$    332,273


2.89 %

Net yield on interest-earning assets and net interest income – tax-equivalent (3)








$    399,636


3.42 %




$    335,256


2.93 %

Interest rate spread











2.59 %






1.94 %

Average prime rate











7.37 %






8.31 %


(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.  Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(1.1) million and $(1.6) million for the twelve months ended December 31, 2025 and December 31, 2024, respectively.

(2)   Includes accretion of discount on acquired loans of $6.1 million and $8.9 million for the twelve months ended December 31, 2025 and December 31, 2024, respectively.

(3)   Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

 

Reconciliation of non-GAAP measures
APPENDIX A:  Reconciliation of Common Equity to Tangible Common Equity ("TCE")



For the Three Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Total shareholders' common equity


$   1,654,168


$   1,603,323


$   1,556,180


$   1,508,176


$   1,445,611

Less: Goodwill and other intangibles, net of related taxes


(483,643)


(484,623)


(485,657)


(486,749)


(487,660)

Tangible common equity


$   1,170,525


$   1,118,700


$   1,070,523


$   1,021,427


$      957,951

 

APPENDIX B:  Calculation of Tangible Book Value Per Share ("TBVPS")



For the Three Months Ended

($ in thousands except per share data)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Tangible common equity (Appendix A)


$   1,170,525


$   1,118,700


$   1,070,523


$   1,021,427


$      957,951












Common shares outstanding


41,466,227


41,465,437


41,468,098


41,368,828


41,347,418

Tangible book value per common share


$           28.23


$           26.98


$           25.82


$           24.69


$           23.17

 

APPENDIX C:  TCE Ratio



For the Three Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Tangible common equity (Appendix A)


$ 1,170,525


$ 1,118,700


$ 1,070,523


$ 1,021,427


$    957,951












Total assets


12,668,339


12,750,263


12,608,265


12,436,245


12,147,694

Less: Goodwill and other intangibles, net of related taxes


(483,643)


(484,623)


(485,657)


(486,749)


(487,660)

Tangible assets ("TA")


$  12,184,696


$  12,265,640


$  12,122,608


$  11,949,496


$  11,660,034

TCE to TA ratio


9.61 %


9.12 %


8.83 %


8.55 %


8.22 %

 

APPENDIX D:  Adjusted Net Income and Adjusted D-EPS




For the Three Months Ended


For the Twelve Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


December
31, 2024


December
31, 2025


December
31, 2024












Net income (A)


$         15,713


$         20,363


$           3,551


$      111,048


$         76,215

Impact of loss-earnback











Securities loss from loss-earnback


43,722


27,905


36,820


71,627


36,820

Less, tax impact


(10,141)


(6,472)


(8,660)


(16,613)


(8,660)

After-tax impact of loss-earnback


33,581


21,433


28,160


55,014


28,160












Adjusted net income (B)


$         49,294


$         41,796


$         31,711


$      166,062


$      104,375












Weighted average shares outstanding - diluted (C)


41,481,132


41,481,542


41,422,973


41,453,247


41,327,216












D-EPS (A/C)


$             0.38


$             0.49


$             0.09


$             2.68


$             1.84

Adjusted D-EPS (B/C)


$             1.19


$             1.01


$             0.77


$             4.01


$             2.53

 

APPENDIX E:  Calculation of Return on Average Assets ("ROA") and Adjusted ROA



For the Three Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Net income (A)


$      15,713


$      20,363


$      38,566


$      36,406


$        3,551

After-tax impact of loss-earnback


33,581


21,433


—


—


28,160

Adjusted net income (B)


$      49,294


$      41,796


$      38,566


$      36,406


$      31,711












Average total assets (C)


$  12,716,139


$  12,640,016


$  12,458,372


$  12,226,810


$  12,243,771












ROA (A/C)


0.49 %


0.64 %


1.24 %


1.21 %


0.12 %

Adjusted ROA (B/C)


1.54 %


1.31 %


1.24 %


1.21 %


1.03 %

 

APPENDIX F:  Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE



For the Three Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Net income (A)


$      15,713


$      20,363


$      38,566


$      36,406


$        3,551

After-tax impact of loss-earnback


33,581


21,433


—


—


28,160

Adjusted net income (B)


$      49,294


$      41,796


$      38,566


$      36,406


$      31,711












Average common equity (C)


$ 1,627,976


$ 1,571,104


$ 1,530,550


$ 1,467,871


$ 1,466,181












ROCE (A/C)


3.83 %


5.14 %


10.11 %


10.06 %


0.96 %

Adjusted ROCE (B/C)


12.01 %


10.55 %


10.11 %


10.06 %


8.60 %

 

APPENDIX G:  Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE



For the Three Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


June 30,
2025


March 31,
2025


December
31, 2024












Net Income


$      15,713


$      20,363


$      38,566


$      36,406


$        3,551

Intangible asset amortization, net of taxes


994


1,066


1,123


1,159


1,195

Tangible Net income  (A)


16,707


21,429


39,689


37,565


4,746

After-tax impact of loss-earnback


33,581


21,433


—


—


28,160

Adjusted tangible net income  (B)


$      50,288


$      42,862


$      39,689


$      37,565


$      32,906












Average common equity


$ 1,627,976


$ 1,571,104


$ 1,530,550


$ 1,467,871


$ 1,466,181

Less: Average goodwill and other intangibles, net of related taxes


(484,313)


(485,331)


(486,393)


(487,395)


(488,624)

Average TCE  (C)


$ 1,143,663


$ 1,085,773


$ 1,044,157


$    980,476


$    977,557












ROTCE (A/C)


5.80 %


7.83 %


15.25 %


15.54 %


1.93 %

Adjusted ROTCE (B/C)


17.45 %


15.66 %


15.25 %


15.54 %


13.39 %

 

APPENDIX H: Impact of Hurricane Helene



For the Three Months Ended


For the Twelve Months Ended

($ in thousands)


December
31, 2025


September
30, 2025


December
31, 2024


December
31, 2025


December
31, 2024












Impact of Hurricane Helene











Provision for (benefit from) credit losses


$         (1,600)


$         (4,000)


$                —


$       (11,100)


$         13,000

Building repairs and maintenance


—


—


(24)


—


276

Other


—


—


(3)


—


93

Total


(1,600)


(4,000)


(27)


(11,100)


13,369

Less, tax impact


371


928


6


2,575


(3,096)

After-tax impact of Hurricane Helene


$         (1,229)


$         (3,072)


$              (21)


$         (8,525)


$         10,273












Weighted average shares outstanding - diluted


41,481,132


41,481,542


41,422,973


41,453,247


41,327,216












Impact of Hurricane Helene per diluted share


$             0.03


$             0.07


$                —


$             0.21


$           (0.25)

Supplemental information

APPENDIX I: Loan purchase discount accretion and its impact on the Company's NIM

Included in interest income for the fourth quarter of 2025 was loan purchase accounting discount accretion of $1.3 million compared to $1.6 million for the linked quarter and $2.2 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, four basis points and six basis points, respectively, on the Company's NIM and NIM-T/E in the fourth quarter of 2025, the linked quarter and the like quarter. 

The following table presents the impact to net interest income of the purchase accounting adjustments for each period.

For the Three Months Ended

NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS

($ in thousands)


December 31,
2025


September 30,
2025


December 31,
2024








Interest income - increased by accretion of loan discount on acquired loans


$               1,298


$               1,584


$               2,195

Total interest income impact


1,298


1,584


2,195

Interest expense - increased by discount accretion on deposits


(62)


(77)


(145)

Interest expense - increased by discount accretion on borrowings


(161)


(197)


(195)

Total net interest expense impact


(223)


(274)


(340)

Total impact on net interest income


$               1,075


$               1,310


$               1,855

 

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SOURCE First Bancorp