FT Markets Data
First Bancorp (North Carolina)

First Bancorp Reports Second Quarter Results

Second Quarter 2025 Financial Data







(Dollars in 000s, except per
share data)

Q2-2025


Q1-2025


Q2-2024

Summary Income Statement

Total interest income

$  136,741


$  132,660


$  128,822

Total interest expense

40,065


39,777


47,707

Net interest income

96,676


92,883


81,115

Provision for credit losses

2,212


1,116


541

Noninterest income

14,341


12,902


14,601

Noninterest expenses

58,983


57,893


58,291

Income tax expense

11,256


10,370


8,172

Net income

$ 38,566


$ 36,406


$ 28,712







Key Metrics

Diluted EPS

$     0.93


$     0.88


$     0.70

Book value per share

37.53


36.46


34.10

Tangible book value per
share

25.82


24.69


22.19

Return on average assets

1.24 %


1.21 %


0.96 %

Return on average
common equity

10.11 %


10.06 %


8.38 %

Return on average tangible
common equity

15.25 %


15.54 %


13.60 %

NIM

3.32 %


3.25 %


2.84 %

NIM- T/E

3.32 %


3.27 %


2.87 %

Quarterly net charge-offs
to average loans -
annualized

0.06 %


0.17 %


0.07 %

Allowance for credit losses
to total loans

1.47 %


1.49 %


1.36 %







Capital Ratios (1)

Tangible common equity to
tangible assets

8.83 %


8.55 %


7.90 %

Common equity tier I
capital ratio

14.62 %


14.52 %


13.99 %

Total risk-based capital
ratio

16.87 %


16.80 %


16.24 %

(1)

June 30, 2025 ratios are preliminary.

Second Quarter 2025 Highlights

  • Diluted earnings per share ("D-EPS") was $0.93 per share for the second quarter of 2025 compared to $0.88 for the linked quarter and $0.70 for the like quarter.
  • Total loan yield expanded to 5.53%, up 1 basis point from the linked quarter and 3 basis points from the like quarter. Total cost of funds contracted 3 basis points to 1.48% for the quarter ended June 30, 2025 from 1.51% for the linked quarter and from 1.81% for the like quarter.
  • The yield on securities increased 13 basis points to 2.41% for the quarter ended June 30, 2025 from 2.28% for the linked quarter. The Company purchased $127.0 million of CMOs yielding 5.16% during the second quarter.
  • Average core deposits were $10.7 billion for the second quarter of 2025, an increase of $140.4 million from the linked quarter, with $147.0 million of growth in noninterest bearing deposits and $21.3 million of growth in average money market accounts, partially offset by a decline of $30.7 million in average time deposits. Total cost of deposits was 1.43%, a decrease of 3 basis points from 1.46% for the linked quarter and 29 basis points from the like quarter at 1.72%. The Company continues to maintain a low level of wholesale funding with average borrowings of $92.2 million for the quarter ended June 30, 2025.
  • We continue to focus on expense management. Noninterest expenses of $59.0 million represented a $1.1 million increase from the linked quarter and $0.7 million from the like quarter. The linked quarter increase was driven by a $0.7 million increase in Other operating expenses and a $0.4 million increase in Total personnel expense.
  •  Total loans were $8.2 billion at June 30, 2025, reflecting growth of $122.6 million, or 6.07% annualized, for the quarter and growth of $155.8 million, or 1.93%, from June 30, 2024.
  • Noninterest-bearing demand deposits were $3.5 billion, representing 33% of total deposits at June 30, 2025. During the second quarter of 2025, customer deposits grew $85.6 million driven by increases of $65.8 million in noninterest bearing deposits and $60.0 million in money market accounts.
  • The on-balance sheet liquidity ratio was 20.0% at June 30, 2025, an increase from 19.8% for the linked quarter. Available off-balance sheet sources totaled $2.3 billion at June 30, 2025, resulting in a total liquidity ratio of 36.1%.

SOUTHERN PINES, N.C. , July 23, 2025 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today.  The Company announced net income of $38.6 million, or $0.93 D-EPS, for the three months ended June 30, 2025 compared to $36.4 million, or $0.88 D-EPS, for the three months ended March 31, 2025 ("linked quarter") and $28.7 million, or $0.70 D-EPS, for the second quarter of 2024 ("like quarter").   For the six months ended June 30, 2025, the Company recorded net income of $75.0 million, or $1.81 per diluted common share, compared to $54.0 million, or $1.31 per diluted common share, for the six months ended June 30, 2024.

The Company continued to enhance net interest income and net interest margin ("NIM"). The Company recorded net interest income of $96.7 million for the second quarter of 2025, compared to $92.9 million for the linked quarter and $81.1 million for the like quarter. NIM for the second quarter of 2025 expanded to 3.32% from 3.25% for the linked quarter and 2.84% for the like quarter. 

First Bancorp also continued to maintain expense control with noninterest expenses of $59.0 million for the second quarter of 2025, up slightly from $57.9 million for the linked quarter and $58.3 million for the like quarter.  For the six months ended June 30, 2025, the Company recorded noninterest expense of $116.9 million, down from  $117.5 million, for the six months ended June 30, 2024.

Richard H. Moore, Chairman and CEO of the Company, stated "First Bancorp continues to improve financial results in 2025 as second quarter net income was $38.6 million and diluted EPS was $0.93, both resulting from expanded net interest margin and disciplined expense management.  We improved our liquidity position and increased our capital levels, while credit quality remains strong with low levels of charge-offs and nonperforming assets. We grew loans 6% annualized in the quarter and benefited from our favorable cost of funds and increased yields on our earning assets.  Our Board also increased our quarterly dividend to $0.23 per share effective June 30, 2025.  We are very pleased with the Bank's performance halfway through this year."

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2025 was $96.7 million, an increase of 4.1% from the linked quarter of $92.9 million and 19.2% from the like quarter of $81.1 million.  The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs while increasing loan yields after the rate cuts by the Federal Reserve in the second half of 2024 along with the increased securities yield resulting from the loss-earnback transaction executed in the fourth quarter of 2024.

The Company's NIM for the second quarter of 2025 was 3.32%, an increase of 7 basis points from the linked quarter and 48 basis points from the like quarter.  Within interest-earning assets, the purchase of $127.0 million of CMOs yielding 5.16% during the second quarter aided in the 13 basis point increase in the yield on securities as compared to the linked quarter. In addition, loan yields increased 1 basis point to 5.53%. During the quarter ended June 30, 2025, interest-bearing deposits remained consistent with the linked quarter and fell 0.40% from the like quarter, attributable to the three rate cuts by the Federal Reserve between September and December.  The like quarter expansion of NIM was driven by the same factors described above resulting in an increase of 69 basis points in securities yield,  an increase of 3 basis points in loan yields, and a decrease of 40 basis points in the rate on interest-bearing deposits.

For the Three Months Ended

YIELD INFORMATION


June 30, 2025


March 31, 2025


June 30, 2024








Yield on loans


5.53 %


5.52 %


5.50 %

Yield on securities


2.41 %


2.28 %


1.72 %

Yield on other earning assets


4.63 %


4.42 %


4.71 %

Yield on total interest-earning assets


4.69 %


4.65 %


4.51 %








Cost of interest-bearing deposits


2.14 %


2.14 %


2.54 %

Cost of borrowings


7.22 %


7.31 %


7.09 %

Cost of total interest-bearing liabilities


2.20 %


2.21 %


2.65 %

Total cost of funds


1.48 %


1.51 %


1.81 %

Cost of total deposits


1.43 %


1.46 %


1.72 %








Net interest margin (1)


3.32 %


3.25 %


2.84 %

Net interest margin - tax-equivalent (2)


3.32 %


3.27 %


2.87 %

Average prime rate


7.50 %


7.50 %


8.50 %


(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 F 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 June 30, 2025, March 31, 2025 and June 30, 2024, the Company recorded $2.2 million, $1.1 million and $0.5 million in provision for credit losses, respectively. The provision for the second quarter of 2025 was driven by net charge-offs of $1.2 million, reserves related to loan growth of $122.6 million, and declining macro-economic projections, partially offset by the $3.5 million reduction in reserves for potential credit exposure from Hurricane Helene.  Additionally, the $1.1 million provision for unfunded commitments during the quarter was the result of increased reserve rates for specifc segments of the loan portfolio and an increase in the level of available unfunded lending commitments.  The June macro-economic forecasts are a key driver in the Company's CECL model and reflected declines from the prior quarter.

Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene starting late in the third quarter of 2024, the Company identified borrowers that were potentially impacted by the storm and subsequent economic impacts which represented approximately $703 million of loans outstanding as of June 30, 2025.    Based upon its continuing evaluation of these potential impacts, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $7.5 million as of June 30, 2025.  The remaining incremental reserve contributes 10 basis points to the Allowance for Credit Losses at period end.  The results for the second quarter of 2025 included a $3.5 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($2.7 million after-taxes or $0.06 per diluted share).  The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the first and second quarters of 2025 are presented in Appendix E.

Asset quality remained strong with annualized net loan charge-offs of 0.06% for the second quarter of 2025.  Total nonperforming assets ("NPAs") remained at a low level at $35.8 million at June 30, 2025, or 0.28% of total assets, up slightly from  0.27% at March 31, 2025 and consistent with June 30, 2024.  

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

ASSET QUALITY DATA

($ in thousands)


June 30, 2025


March 31, 2025


June 30, 2024








Nonperforming assets







Nonaccrual loans


$          34,625


$          29,081


$          33,102

Accruing loans > 90 days past due


—


—


—

Total nonperforming loans


34,625


29,081


33,102

Foreclosed real estate


1,218


4,769


1,150

Total nonperforming assets


$          35,843


$          33,850


$          34,252








Asset Quality Ratios







Quarterly net charge-offs to average loans - annualized


0.06 %


0.17 %


0.07 %

Nonperforming loans to total loans


0.42 %


0.36 %


0.54 %

Nonperforming assets to total assets


0.28 %


0.27 %


0.28 %

Allowance for credit losses to total loans


1.47 %


1.49 %


1.36 %

Noninterest Income

Total noninterest income for the second quarter of 2025 was $14.3 million, an 11.2% increase from the $12.9 million recorded in the linked quarter and a 1.8% decrease from the $14.6 million recorded for the like quarter. As compared to the linked quarter, noninterest income was higher primarily due to higher Other service charges, commissions and fees and Other income, net of $0.7 million and $0.6 million, respectively.

Noninterest Expenses

Noninterest expenses amounted to $59.0 million for the second quarter of 2025 compared to $57.9 million for the linked quarter and $58.3 million for the like quarter.  The $1.1 million, or 1.9%, increase in noninterest expense from the linked quarter was driven by a $0.7 million increase in Other operating expenses and a $0.4 million increase in total personnel expenses arising from increased incentives expense.

The $0.7 million increase from the like quarter was driven by a $0.7 million increase in total personnel expenses and a $0.3 million increase in Occupancy and equipment related expenses, partially offset by declines in other expenses.

Income Taxes

Income tax expense totaled $11.3 million for the second quarter of 2025 compared to $10.4 million for the linked quarter and $8.2 million for the like quarter. These equated to effective tax rates of 22.6%, 22.2% and 22.2% for the respective periods. 

Balance Sheet

Total assets at June 30, 2025 amounted to $12.6 billion, an increase of $172.0 million, or 5.5% annualized, from the linked quarter and an increase of $547.5 million, or 4.5%, from a year earlier.  The increase from the linked quarter was primarily driven by loan growth and an increase in our available for sale securities portfolio as a result of $127.0 million of purchases and a decrease in the unrealized loss on those securities, partially offset by repayments.

Key period end balance sheet components are presented below.

BALANCES

($ in thousands)


June 30,
2025


March 31,
2025


June 30,
2024


Change
2Q25 vs
1Q25


Change
2Q25 vs
2Q24












Total assets


$ 12,608,265


$ 12,436,245


$ 12,060,805


1.4 %


4.5 %

Loans


8,225,650


8,103,033


8,069,848


1.5 %


1.9 %

Investment securities


2,661,236


2,582,781


2,390,811


3.0 %


11.3 %

Total cash and cash equivalents


711,286


772,441


608,412


(7.9) %


16.9 %

Noninterest-bearing deposits


3,542,626


3,476,786


3,339,678


1.9 %


6.1 %

Interest-bearing deposits


7,287,754


7,267,873


7,148,151


0.3 %


2.0 %

Borrowings


92,237


92,055


91,513


0.2 %


0.8 %

Shareholders' equity


1,556,180


1,508,176


1,404,342


3.2 %


10.8 %

Primarily the result of securities purchases and decreased unrealized losses on the available for sale securities portfolio during the second quarter of 2025, total investment securities increased to $2.7 billion at  June 30, 2025, reflecting a $78.5 million increase from the linked quarter.  Total unrealized losses on available for sale investment securities was $298.9 million at June 30, 2025, as compared to $321.2 million at March 31, 2025 and $410.1 million at June 30, 2024.  During the second quarter of 2025, the Company purchased $127.0 million of securities with a weighted average yield of 5.16%.

Total loans amounted to $8.2 billion at June 30, 2025, an increase of $122.6 million, or 6.1% annualized, from  March 31, 2025 and an increase of $155.8 million, or 1.9%, from June 30, 2024.  Please see below table for total loan portfolio mix.  As of June 30, 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 6.5% of the total portfolio at June 30, 2025, with the largest loan being $30.0 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


June 30, 2025


March 31, 2025


June 30, 2024

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Commercial and industrial


$      911,227


11 %


$      890,071


11 %


$      863,366


11 %

Construction, development & other land
      loans


633,529


8 %


644,439


8 %


764,418


9 %

Commercial real estate - owner occupied


1,254,596


15 %


1,233,732


15 %


1,250,267


16 %

Commercial real estate - non-owner
     occupied


2,758,629


34 %


2,701,746


34 %


2,561,803


32 %

Multi-family real estate


509,419


6 %


512,958


6 %


497,187


6 %

Residential 1-4 family real estate


1,731,397


21 %


1,709,593


21 %


1,729,050


21 %

Home equity loans/lines of credit


355,876


4 %


341,240


4 %


326,411


4 %

Consumer loans


70,137


1 %


68,115


1 %


76,638


1 %

Loans, gross


8,224,810


100 %


8,101,894


100 %


8,069,140


100 %

Unamortized net deferred loan fees


840




1,139




708



Total loans


$   8,225,650




$   8,103,033




$   8,069,848



Total deposits were $10.8 billion at June 30, 2025, an increase of $85.7 million, or 3.2% annualized, from  March 31, 2025 and an increase of $342.6 million, or 3.3%, from June 30, 2024.

The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at June 30, 2025.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO


June 30, 2025


March 31, 2025


June 30, 2024

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Noninterest-bearing checking accounts


$   3,542,626


33 %


$   3,476,786


32 %


$   3,339,678


32 %

Interest-bearing checking accounts


1,443,010


13 %


1,448,377


14 %


1,400,071


13 %

Money market accounts


4,446,485


41 %


4,386,469


41 %


4,150,429


40 %

Savings accounts


536,247


5 %


539,632


5 %


558,126


5 %

Other time deposits


514,865


5 %


533,723


5 %


601,212


6 %

Time deposits >$250,000


337,382


3 %


349,990


3 %


389,281


4 %

Total customer deposits


10,820,615


100 %


10,734,977


100 %


10,438,797


100 %

Brokered deposits


9,765


— %


9,682


— %


49,032


— %

Total deposits


$ 10,830,380


100 %


$ 10,744,659


100 %


$ 10,487,829


100 %

As of June 30, 2025 and March 31, 2025, estimated insured deposits totaled $6.5 billion, or 59.7%, and $6.5 billion, or 60.2%, respectively, of total deposits.  In addition, at June 30, 2025 and March 31, 2025, there were collateralized deposits of $707.0 million and $725.9 million, respectively, such that approximately 66.3% and 66.9%, 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 June 30, 2025 of 16.87%, up from  the linked quarter ratio of 16.80% and the like quarter ratio of 16.24%.   The increase during the second quarter of 2025 in risk-based capital ratios was driven by earnings in excess of dividends, partially offset by an increase in risk weighted assets.

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 8.83% at June 30, 2025, an increase of 28 basis points from the linked quarter and 93 basis points from June 30, 2024.  The second quarter increase in TCE was driven by earnings in excess of dividends and improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter. Refer to Appendix B for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix D for a calculation of the TCE ratio (a non-GAAP measure).

CAPITAL RATIOS


June 30, 2025
(estimated)


March 31, 2025


June 30, 2024








Tangible common equity to tangible assets (non-GAAP)


8.83 %


8.55 %


7.90 %

Common equity tier I capital ratio


14.62 %


14.52 %


13.99 %

Tier I leverage ratio


11.45 %


11.41 %


11.24 %

Tier I risk-based capital ratio


15.42 %


15.34 %


14.79 %

Total risk-based capital ratio


16.87 %


16.80 %


16.24 %

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 June 30, 2025 was 20.0%.  In addition, the Company had approximately $2.3 billion in available lines of credit at that date resulting in a total liquidity ratio of 36.1%. 

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.6 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 press 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 Six Months Ended

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


June 30,
2025


March 31,
2025


June 30,
2024


June 30,
2025


June 30,
2024

Interest income











Interest and fees on loans


$      112,931


$      110,533


$      110,472


$      223,464


$      220,270

Interest on investment securities:











Taxable interest income


16,857


15,524


11,291


32,381


24,019

Tax-exempt interest income


1,116


1,116


1,117


2,232


2,234

Other, principally overnight investments


5,837


5,487


5,942


11,324


8,913

Total interest income


136,741


132,660


128,822


269,401


255,436

Interest expense











Interest on deposits


38,405


38,119


44,744


76,524


83,879

Interest on borrowings


1,660


1,658


2,963


3,318


11,168

Total interest expense


40,065


39,777


47,707


79,842


95,047

Net interest income


96,676


92,883


81,115


189,559


160,389

Provision for credit losses


2,212


1,116


541


3,328


1,741

Net interest income after provision for credit losses


94,464


91,767


80,574


186,231


158,648

Noninterest income











Service charges on deposit accounts


3,976


3,767


4,139


7,743


8,007

Other service charges and fees


6,595


5,883


5,314


12,478


10,884

Presold mortgage loan fees and gains on sale


315


450


588


765


926

Commissions from sales of financial products


1,388


1,408


1,377


2,796


2,697

SBA loan sale gains


151


52


1,336


203


2,231

Bank-owned life insurance income


1,221


1,228


1,179


2,449


2,343

Securities losses, net


—


—


(186)


—


(1,161)

Other Income, net


695


114


854


809


1,570

Total noninterest income


14,341


12,902


14,601


27,243


27,497

Noninterest expenses











Salaries, incentives and commissions expense


29,005


28,661


27,809


57,666


55,451

Employee benefit expense


6,187


6,095


6,703


12,282


12,972

Total personnel expense


35,192


34,756


34,512


69,948


68,423

Occupancy and equipment expense


5,195


5,192


4,877


10,387


10,952

Intangibles amortization expense


1,468


1,516


1,669


2,984


3,428

Other operating expenses


17,128


16,429


17,233


33,557


34,675

Total noninterest expenses


58,983


57,893


58,291


116,876


117,478

Income before income taxes


49,822


46,776


36,884


96,598


68,667

Income tax expense


11,256


10,370


8,172


21,626


14,683

Net income


$         38,566


$         36,406


$         28,712


$         74,972


$         53,984

Earnings per common share:











Basic


$             0.93


$             0.88


$             0.70


$             1.81


$             1.31

Diluted


0.93


0.88


0.70


1.81


1.31

 

First Bancorp and Subsidiaries

Financial Summary


CONSOLIDATED BALANCE SHEETS

($ in thousands - unaudited)


June 30,
2025


March 31,
2025


June 30,
2024

Assets







Cash and due from banks, noninterest-bearing


$           139,486


$           149,781


$             90,468

Due from banks, interest-bearing


571,800


622,660


517,944

Total cash and cash equivalents


711,286


772,441


608,412








Securities available for sale


2,144,831


2,064,516


1,867,211

Securities held to maturity


516,405


518,265


523,600

Presold mortgages and SBA loans held for sale


8,928


5,166


7,247








Loans


8,225,650


8,103,033


8,069,848

Allowance for credit losses on loans


(120,545)


(120,631)


(110,058)

Net loans


8,105,105


7,982,402


7,959,790








Premises and equipment, net


141,661


141,954


147,110

Accrued interest receivable


36,681


35,452


35,605

Goodwill


478,750


478,750


478,750

Other intangible assets, net


19,920


21,388


26,080

Bank-owned life insurance


190,817


189,597


186,031

Other assets


253,881


226,314


220,969

Total assets


$      12,608,265


$      12,436,245


$      12,060,805








Liabilities







Deposits:







Noninterest-bearing deposits


$        3,542,626


$        3,476,786


$        3,339,678

Interest-bearing deposits


7,287,754


7,267,873


7,148,151

Total deposits


10,830,380


10,744,659


10,487,829








Borrowings


92,237


92,055


91,513

Accrued interest payable


4,340


4,935


5,728

Other liabilities


125,128


86,420


71,393

Total liabilities


11,052,085


10,928,069


10,656,463








Shareholders' equity







Common stock


973,041


971,174


967,239

Retained earnings


812,657


783,630


752,294

Stock in rabbi trust assumed in acquisition


(869)


(1,166)


(1,139)

Rabbi trust obligation


869


1,166


1,139

Accumulated other comprehensive loss


(229,518)


(246,628)


(315,191)

Total shareholders' equity


1,556,180


1,508,176


1,404,342

Total liabilities and shareholders' equity


$      12,608,265


$      12,436,245


$      12,060,805

 

First Bancorp and Subsidiaries

Financial Summary


TREND INFORMATION



For the Three Months Ended



June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












PERFORMANCE RATIOS (annualized)











Return on average assets (1)


1.24 %


1.21 %


0.12 %


0.61 %


0.96 %

Return on average common equity (2)


10.11 %


10.06 %


0.96 %


5.14 %


8.38 %

Return on average tangible common equity (3)


15.25 %


15.54 %


1.93 %


8.30 %


13.60 %












COMMON SHARE DATA











Cash dividends declared - common


$          0.23


$          0.22


$          0.22


$          0.22


$          0.22

Book value per common share


$        37.53


$        36.46


$        34.96


$        35.74


$        34.10

Tangible book value per share (4)


$        25.82


$        24.69


$        23.17


$        23.91


$        22.19

Common shares outstanding at end of period


41,468,098


41,368,828


41,347,418


41,340,099


41,187,943

Weighted average shares outstanding - diluted


41,441,393


41,406,525


41,422,973


41,366,743


41,262,091












CAPITAL INFORMATION (preliminary for current quarter)









Tangible common equity to tangible assets (5)


8.83 %


8.55 %


8.22 %


8.47 %


7.90 %

Common equity tier I capital ratio


14.62 %


14.52 %


14.35 %


14.37 %


13.99 %

Total risk-based capital ratio


16.87 %


16.80 %


16.63 %


16.65 %


16.24 %


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

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

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

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

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

 

For the Three Months Ended

INCOME STATEMENT

($ in thousands except per share data)


June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












Net interest income


$         96,676


$         92,883


$         88,841


$         83,043


$         81,115

Provision for credit losses


2,212


1,116


507


14,200


541

Noninterest income


14,341


12,902


(23,177)


13,579


14,601

Noninterest expense


58,983


57,893


58,279


59,850


58,291

Income before income taxes


49,822


46,776


6,878


22,572


36,884

Income tax expense


11,256


10,370


3,327


3,892


8,172

Net income


38,566


36,406


3,551


18,680


28,712












Earnings per common share - diluted


$             0.93


$             0.88


$             0.08


$             0.45


$             0.70


(1) This 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 assuming the expected tax rate and is reduced by the related nondeductible portion of interest expense.

 

First Bancorp and Subsidiaries

Financial Summary

AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS



For the Three Months Ended


June 30, 2025


March 31, 2025


June 30, 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)

$   8,187,662


$    112,931


5.53 %


$   8,107,394


$    110,533


5.52 %


$   8,070,815


$    110,472


5.50 %

Taxable securities

2,697,338


16,857


2.50 %


2,629,066


15,524


2.36 %


2,591,617


11,291


1.74 %

Non-taxable securities

287,848


1,116


1.55 %


288,905


1,116


1.55 %


292,045


1,117


1.53 %

Short-term investments, primarily interest-bearing cash

505,912


5,837


4.63 %


503,377


5,487


4.42 %


507,635


5,942


4.71 %

Total interest-earning assets

11,678,760


136,741


4.69 %


11,528,742


132,660


4.65 %


11,462,112


128,822


4.51 %

Cash and due from banks

153,074






133,756






84,674





Premises and equipment

142,090






143,064






149,643





Other assets

484,448






421,248






358,852





Total assets

$  12,458,372






$  12,226,810






$  12,055,281





Liabilities


















Interest-bearing checking

$   1,434,559


$       2,426


0.68 %


$   1,431,556


$       2,497


0.71 %


$   1,397,367


$       2,424


0.70 %

Money market deposits

4,358,877


29,947


2.76 %


4,337,560


29,180


2.73 %


4,004,175


32,411


3.26 %

Savings deposits

538,843


252


0.19 %


539,104


240


0.18 %


570,283


317


0.22 %

Other time deposits

534,242


3,088


2.32 %


558,648


3,353


2.43 %


738,290


6,053


3.30 %

Time deposits >$250,000

345,916


2,692


3.12 %


352,174


2,849


3.28 %


371,471


3,539


3.83 %

Total interest-bearing deposits

7,212,437


38,405


2.14 %


7,219,042


38,119


2.14 %


7,081,586


44,744


2.54 %

Borrowings

92,199


1,660


7.22 %


91,960


1,658


7.31 %


167,976


2,963


7.09 %

Total interest-bearing liabilities

7,304,636


40,065


2.20 %


7,311,002


39,777


2.21 %


7,249,562


47,707


2.65 %

Noninterest-bearing checking

3,522,117






3,375,098






3,350,723





Other liabilities

101,069






72,839






76,713





Shareholders' equity

1,530,550






1,467,871






1,378,283





Total liabilities and shareholders' equity

$  12,458,372






$  12,226,810






$  12,055,281





Net yield on interest-earning assets and net interest income



$      96,676


3.32 %




$      92,883


3.25 %




$      81,115


2.84 %

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



$      96,887


3.32 %




$      93,320


3.27 %




$      81,847


2.87 %

Interest rate spread





2.49 %






2.44 %






1.86 %

Average prime rate





7.50 %






7.50 %






8.50 %



(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 $(296,000), $(294,000) and $(414,000) for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(2)

Includes accretion of discount on acquired loans of $1.5 million, $1.8 million and $2.3 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 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 Six Months Ended








June 30, 2025


June 30, 2024

($ in thousands)







Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate

Assets


















Loans (1) (2)







$   8,147,750


$    223,464


5.52 %


$   8,087,101


$    220,270


5.47 %

Taxable securities







2,663,390


32,381


2.43 %


2,703,441


24,019


1.78 %

Non-taxable securities







288,373


2,232


1.55 %


292,622


2,234


1.53 %

Short-term investments, primarily interest-bearing cash







504,652


11,324


4.52 %


392,790


8,913


4.56 %

Total interest-earning assets







11,604,165


269,401


4.67 %


11,475,954


255,436


4.47 %

Cash and due from banks







143,469






87,754





Premises and equipment







142,574






150,401





Other assets







453,023






369,132





Total assets







$  12,343,231






$  12,083,241





Liabilities


















Interest-bearing checking







$   1,433,066


$       4,923


0.69 %


$   1,400,425


$       4,784


0.69 %

Money market deposits







4,348,277


59,126


2.74 %


3,854,453


60,223


3.14 %

Savings deposits







538,973


493


0.18 %


581,339


625


0.22 %

Other time deposits







546,377


6,441


2.38 %


723,904


11,509


3.20 %

Time deposits >$250,000







349,028


5,541


3.20 %


363,640


6,738


3.73 %

Total interest-bearing deposits







7,215,721


76,524


2.14 %


6,923,761


83,879


2.44 %

Borrowings







92,081


3,318


7.27 %


372,987


11,168


6.02 %

Total interest-bearing liabilities







7,307,802


79,842


2.20 %


7,296,748


95,047


2.62 %

Noninterest-bearing checking







3,449,013






3,331,811





Other liabilities







87,032






77,795





Shareholders' equity







1,499,384






1,376,887





Total liabilities and shareholders' equity







$  12,343,231






$  12,083,241





Net yield on interest-earning assets and net interest income









$    189,559


3.29 %




$    160,389


2.81 %

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








$    190,207


3.30 %




$    161,852


2.83 %

Interest rate spread











2.47 %






1.85 %

Average prime rate











7.50 %






8.50 %



(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 $(590,000) and $(886,000) for the six months ended June 30, 2025 and June 30, 2024, respectively.

(2)

Includes accretion of discount on acquired loans of $3.2 million and $4.7 million for the six months ended June 30, 2025 and June 30, 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:  Calculation of Return on TCE




For the Three Months Ended

($ in thousands)


June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












Net Income


$      38,566


$      36,406


$        3,551


$      18,680


$      28,712

Intangible asset amortization, net of taxes


1,123


1,159


1,195


1,240


1,283

Tangible Net income


$      39,689


$      37,565


$        4,746


$      19,920


$      29,995












Average common equity


$ 1,530,550


$ 1,467,871


$ 1,466,181


$ 1,445,029


$ 1,378,284

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


(486,393)


(487,395)


(488,624)


(489,987)


(491,318)

Average tangible common equity


$ 1,044,157


$    980,476


$    977,557


$    955,042


$    886,966












Return on average common equity


10.11 %


10.06 %


0.96 %


5.14 %


8.38 %

Return on average tangible common equity


15.25 %


15.54 %


1.93 %


8.30 %


13.60 %

 

APPENDIX B:  Reconciliation of Common Equity to TCE




For the Three Months Ended

($ in thousands)


June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












Total shareholders' common equity


$   1,556,180


$   1,508,176


$   1,445,611


$   1,477,525


$   1,404,342

Less: Goodwill and other intangibles, net of related
taxes


(485,657)


(486,749)


(487,660)


(489,139)


(490,439)

Tangible common equity


$   1,070,523


$   1,021,427


$      957,951


$      988,386


$      913,903

 

APPENDIX C:  Tangible Book Value Per Share 




For the Three Months Ended

($ in thousands except per share data)


June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












Tangible common equity (Appendix B)


$   1,070,523


$   1,021,427


$      957,951


$      988,386


$      913,903












Common shares outstanding


41,468,098


41,368,828


41,347,418


41,340,099


41,187,943

Tangible book value per common share


$           25.82


$           24.69


$           23.17


$           23.91


$           22.19

 

APPENDIX D:  TCE Ratio




For the Three Months Ended

($ in thousands)


June 30,
2025


March 31,
2025


December
31, 2024


September
30, 2024


June 30,
2024












Tangible common equity (Appendix B)


$ 1,070,523


$ 1,021,427


$    957,951


$    988,386


$    913,903












Total assets


12,608,265


12,436,245


12,147,694


12,153,430


12,060,805

Less: Goodwill and other intangibles, net of related
taxes


(485,657)


(486,749)


(487,660)


(489,139)


(490,439)

Tangible assets ("TA")


$  12,122,608


$  11,949,496


$  11,660,034


$  11,664,291


$  11,570,366

TCE to TA ratio


8.83 %


8.55 %


8.22 %


8.47 %


7.90 %

 

Reconciliation of non-GAAP measures, continued

APPENDIX E:  Adjusted D-EPS




For the Three Months Ended

($ in thousands)


June 30, 2025


March 31, 2025


June 30, 2024








Net income


$             38,566


$             36,406


$             28,712

Impact of Hurricane Helene







Provision for (benefit from) credit losses


(3,500)


(2,000)


—

Total


(3,500)


(2,000)


—

Less, tax impact


812


464


—

After-tax impact of Hurricane Helene


(2,688)


(1,536)


—








Adjusted net income


$             35,878


$             34,870


$             28,712








Weighted average shares outstanding - diluted


41,441,393


41,406,525


41,262,091








D-EPS


$                 0.93


$                 0.88


$                 0.70

Adjusted D-EPS


$                 0.87


$                 0.84


$                 0.70

Supplemental information
 APPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM

Included in interest income for the second quarter of 2025 was loan purchase accounting discount accretion of $1.5 million compared to $1.8 million for the linked quarter and $2.3 million for the like quarter, with the activity 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 4 basis points, 5 basis points and 6 basis points, respectively, on the Company's NIM and NIM-T/E in the second 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)


June 30, 2025


March 31, 2025


June 30, 2024








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


$               1,457


$               1,789


$               2,303

Total interest income impact


1,457


1,789


2,303

Interest expense - increased by discount accretion on deposits


(102)


(103)


(224)

Interest expense - increased by discount accretion on borrowings


(194)


(191)


(190)

Total net interest expense impact


(296)


(294)


(414)

Total impact on net interest income


$               1,161


$               1,495


$               1,889

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SOURCE First Bancorp