First Bancorp Reports First Quarter Results

Rhea-AI Summary

First Bancorp (NASDAQ: FBNC) reported Q1 2026 net income $46.7M, or $1.13 diluted EPS, versus $15.7M ($0.38) in the linked quarter and $36.4M ($0.88) year-ago. NIM expanded to 3.67%, efficiency ratio improved to 49.05%, and loans were $8.79B at quarter end.

Allowance for credit losses was 1.42% of loans; available-for-sale securities had $197.7M unrealized losses at March 31, 2026.

Positive

• Net income of $46.7M, D-EPS $1.13 for Q1 2026
• NIM expanded to 3.67% (up 9 bps linked quarter, 42 bps YoY)
• Loans increased to $8.794B, +8.5% YoY (5.9% annualized excluding seasonal paydown)
• Efficiency ratio improved to 49.05% from 73.75% linked quarter

Negative

• Total unrealized losses on available-for-sale securities of $197.7M at 3/31/2026
• Allowance for credit losses to loans declined to 1.42% from 1.49% year-ago
• Provision for credit losses rose to $3.1M from $1.1M year-ago

News Market Reaction – FBNC

+3.05%

2 alerts

+3.05% News Effect

+$74M Valuation Impact

$2.50B Market Cap

1.5x Rel. Volume

On the day this news was published, FBNC gained 3.05%, reflecting a moderate positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $74M to the company's valuation, bringing the market cap to $2.50B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income: $46.7 million Diluted EPS: $1.13 Net interest income: $107.1 million +5 more

8 metrics

Net income $46.7 million Q1 2026 net income versus $15.7M in Q4 2025 and $36.4M in Q1 2025

Diluted EPS $1.13 Q1 2026 D‑EPS vs $0.38 linked quarter and $0.88 like quarter

Net interest income $107.1 million Q1 2026 net interest income vs $106.2M linked and $92.8M like quarter

Net interest margin 3.67% Q1 2026 NIM vs 3.58% in Q4 2025 and 3.25% in Q1 2025

Efficiency ratio 49.05% Q1 2026 efficiency ratio vs 73.75% linked and 54.51% like quarter

Total loans $8.8 billion Period-end loans at March 31, 2026; up 3.3% annualized from Dec 31, 2025

Loan growth YoY 8.5% Total loans up 8.5% vs March 31, 2025

Nonperforming assets ratio 0.32% NPAs to total assets at March 31, 2026 (NPAs $41.8M)

Market Reality Check

Price: $58.33 Vol: Volume 78,427 is about 0....

low vol

$58.33 Last Close

Volume Volume 78,427 is about 0.4x the 20-day average of 194,203, indicating relatively light trading ahead of this release. low

Technical Shares trade above the 200-day MA, with price at $59.16 versus MA(200) of $53.43, reflecting a pre-news uptrend.

Peers on Argus

Regional bank peers show mixed, mostly modest moves, e.g., FRME -0.22%, BANR -0....

1 Up

Regional bank peers show mixed, mostly modest moves, e.g., FRME -0.22%, BANR -0.20%, CUBI -0.62%, EFSC -0.35%, while PPBI is up 0.56%. With only one momentum peer (BANC up 0.33%) and no clear directional cluster, trading around FBNC appears stock-specific rather than a broad sector swing.

Common Catalyst Earnings season for regional banks, with multiple peers (e.g., FRME, BANR) also reporting quarterly results.

Previous Earnings Reports

5 past events · Latest: Oct 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 22	Q3 2025 earnings	Positive	-1.9%	Reported Q3 2025 results with securities loss adjustment and NIM expansion.
Jul 23	Q2 2025 earnings	Positive	+5.0%	Strong Q2 2025 net income, higher EPS, loan growth and NIM expansion.
Apr 23	Q1 2025 earnings	Positive	+4.7%	Q1 2025 earnings growth, higher NIM, lower expenses and solid credit.
Jan 29	Q4 2024 earnings	Positive	-0.8%	Q4 2024 results with hurricane and securities impacts plus adjusted earnings.
Oct 23	Q3 2024 earnings	Positive	-1.9%	Q3 2024 earnings impacted by Hurricane Helene but with adjusted profitability.

Pattern Detected

Earnings have generally been framed positively, with a mix of post-report gains and modest pullbacks, suggesting investors sometimes fade strong fundamentals.

Recent Company History

Across the last five earnings releases from Oct 2024 to Oct 2025, First Bancorp steadily expanded net interest margin, grew loans, and maintained solid capital and asset quality while absorbing Hurricane Helene impacts and securities restructuring losses. Price reactions have been mixed, with some quarters (e.g., Q1 and Q2 2025) rewarded and others (notably hurricane-affected periods) seeing near-term weakness.

Historical Comparison

+1.0% avg move · In the past five earnings reports, FBNC’s average 1-day move has been about 1%, with a mix of rallie...

earnings

+1.0%

Average Historical Move earnings

In the past five earnings reports, FBNC’s average 1-day move has been about 1%, with a mix of rallies and modest selloffs around fundamentally solid results.

Recent earnings have highlighted a multi-quarter trend of net interest margin expansion, loan growth, and consistently strong asset quality despite hurricane and securities restructuring impacts.

Market Pulse Summary

This announcement details a strong quarter with higher net income, improved net interest margin, and...

Analysis

This announcement details a strong quarter with higher net income, improved net interest margin, and tighter efficiency ratio, supported by loan growth and stable asset quality. In context of prior earnings, it extends a trend of margin rebuilding after securities repositioning and hurricane impacts. Investors may focus on how loan growth, deposit costs, and nonperforming assets evolve in coming quarters to gauge the durability of current performance.

Key Terms

net interest margin, efficiency ratio, nonperforming assets, allowance for credit losses, +4 more

8 terms

net interest margin financial

"The Company continued to enhance net interest income and net interest margin ("NIM") during the first quarter..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

"The efficiency ratio for the quarter ended March 31, 2026 was 49.05%..."

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

nonperforming assets financial

"Total nonperforming assets ("NPAs") totaled $41.8 million at March 31, 2026..."

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

allowance for credit losses financial

"The Allowance for Credit Losses increased $1.2 million to $124.7 million..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

diluted earnings per share financial

"net income of $46.7 million, or $1.13 diluted earnings per share ("D-EPS")..."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

tangible book value per share financial

"Tangible book value per share | 29.01 | | 28.23 | | 24.69"

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

loan-to-deposit ratio financial

"The loan-to-deposit ratio was 79.9% as of March 31, 2026."

Loan-to-deposit ratio measures how much a bank has lent out compared with the money customers have deposited, expressed as a percentage. Think of it like the share of a household’s savings that has been loaned to others: a higher ratio can boost earnings but reduce cash on hand and increase risk, while a lower ratio means more liquidity but potentially lower returns—key for investors assessing a bank’s balance of profit and safety.

noninterest income financial

"Total noninterest income for the first quarter of 2026 was $15.2 million..."

Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.

AI-generated analysis. Not financial advice.

First Quarter 2026 Financial Data
(Dollars in 000s, except per share data)	Q1-2026		Q4-2025		Q1-2025
Summary Income Statement
Total interest income	$           142,390		$           143,634		$           132,624
Total interest expense	35,274		37,435		39,777
Net interest income	107,116		106,199		92,847
Provision for credit losses	3,083		4,732		1,116
Noninterest income	15,178		(22,479)		12,956
Noninterest expenses	60,218		62,043		57,911
Income tax expense	12,334		1,232		10,370
Net income	$             46,659		$             15,713		$             36,406
Key Metrics
Diluted EPS	$                 1.13		$                 0.38		$                 0.88
Adjusted diluted EPS (1)	1.13		1.19		0.88
Book value per share	40.68		39.89		36.46
Tangible book value per share	29.01		28.23		24.69
ROA	1.48 %		0.49 %		1.21 %
Adjusted ROA (1)	1.48 %		1.54 %		1.21 %
ROCE	11.22 %		3.83 %		10.06 %
Adjusted ROCE (1)	11.22 %		12.01 %		10.06 %
ROTCE	16.05 %		5.80 %		15.54 %
Adjusted ROTCE (1)	16.05 %		17.45 %		15.54 %
NIM	3.67 %		3.58 %		3.25 %
NIM- T/E	3.69 %		3.60 %		3.27 %
Efficiency ratio	49.05 %		73.75 %		54.51 %
Quarterly NCO ratio	0.06 %		0.05 %		0.17 %
ACL ratio	1.42 %		1.42 %		1.49 %
Capital Ratios (2)
Tangible common equity to tangible assets	9.63 %		9.61 %		8.55 %
Common equity tier I capital ratio	14.11 %		14.10 %		14.52 %
Total risk-based capital ratio	16.10 %		16.12 %		16.80 %

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

(2) March 31, 2026 ratios are preliminary.

First Quarter 2026 Highlights

• D-EPS was $1.13 per share for the first quarter of 2026 compared to $0.38 for the linked quarter and $0.88 for the like quarter. 
• The net interest margin was 3.67% for the quarter ended March 31, 2026, an expansion of 0.09% from the linked quarter and 0.42% from the like quarter.
• The efficiency ratio for the quarter ended March 31, 2026 was 49.05%, compared 73.75% for the linked quarter and 54.51% for the like quarter. See Appendix I.
• Total loans were $8.8 billion at March 31, 2026, representing an increase of $71.4 million, or 3.3% annualized. Adjusting for the paydown of one larger seasonal loan, loan growth for the quarter was 5.9% annualized.
• Total loan yield was 5.58%, down 1 basis point from the linked quarter and up 6 basis points from the like quarter. 
• The yield on securities increased 5 basis points to 2.74% for the quarter ended March 31, 2026 from 2.69% for the linked quarter. 
• Total cost of funds decreased 5 basis points to 1.31% for the quarter ended March 31, 2026 from 1.36% for the linked quarter and 1.51% for the like quarter.
• Average core deposits were $10.8 billion for the first quarter of 2026, a decrease of $13.2 million from the linked quarter and an increase of $227.6 million for the like quarter.  Total cost of deposits was 1.28%, a decrease of 4 basis points from 1.32% for the linked quarter and a decrease of 18 basis points from the like quarter at 1.46%. 
• Expense management continues to be a focus.  Noninterest expenses of $60.2 million represented a $1.8 million decrease from the linked quarter and a $2.3 million increase from the like quarter.  The linked quarter decrease was driven by a $1.3 million decrease in Other operating expenses and a $0.9 million decrease in Total personnel expense.
• Noninterest-bearing demand deposits were $3.6 billion, representing 33% of total deposits at March 31, 2026.  During the first quarter of 2026, period end customer deposits grew $264.0 million.
• The loan-to-deposit ratio was 79.9% as of March 31, 2026.

SOUTHERN PINES, N.C., April 22, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited first quarter earnings today.  The Company announced net income of $46.7 million, or $1.13 diluted earnings per share ("D-EPS"), for the three months ended March 31, 2026 compared to $15.7 million, or $0.38 D-EPS, for the three months ended December 31, 2025 ("linked quarter") and $36.4 million, or $0.88 D-EPS, for the first quarter of 2025 ("like quarter").

The Company continued to enhance net interest income and net interest margin ("NIM") during the first quarter of 2026. The Company recorded net interest income of $107.1 million for the first quarter of 2026, compared to $106.2 million for the linked quarter and $92.8 million for the like quarter. NIM for the first quarter of 2026 expanded to 3.67% from 3.58% for the linked quarter and 3.25% for the like quarter. 

First Bancorp also continued to maintain expense control with noninterest expenses of $60.2 million for the first quarter of 2026, down from $62.0 million for the linked quarter, and up from $57.9 million for the like quarter.  The efficiency ratio for the quarter ended March 31, 2026 was 49.05%, compared to an adjusted efficiency ratio of 48.53% for the linked quarter and an efficiency ratio of 54.51% for the like quarter. See Appendix I for a reconciliation of the efficiency ratio and the adjusted efficiency ratio.

Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp delivered a strong start to 2026 with financial performance that underscores the benefit of our balance sheet management activities, continued margin expansion, and prudent expense control.  Earnings continue to benefit from the repositioning of lower‑yielding assets into higher‑yielding opportunities, while our liquidity, capital and credit quality remain strong.  We are highly encouraged by our first quarter performance and remain confident in our ability to sustain momentum and drive continued success in 2026."

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2026 was $107.1 million, an increase of 0.9% from the linked quarter of $106.2 million, despite two fewer calendar days, and an increase of 15.4% from the like quarter of $92.8 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 third and fourth quarters of 2025.

The Company's NIM for the first quarter of 2026 was 3.67%, an increase of 9 basis points from the linked quarter and 42 basis points from the like quarter. 

The linked quarter expansion of NIM was driven by a $246.3 million increase in average loans, partially offset by a 1 basis point decrease in loan yield to 5.58% while cost of interest bearing deposits decreased 8 basis points driven by the three rate cuts between September and December 2025.  While average interest-earning assets contracted $6.9 million in total during the quarter, the Company saw a shift in the mix of interest-earning assets, with loans increasing from 72.4% of average interest-earning assets to 74.5%, while average securities contracted by $125.0 million and average short-term investments contracted by $128.2 million.

Due to similar factors, the like quarter expansion of NIM was driven by growth of $674.3 million in average loans, coupled with a 6 basis point yield increase while the cost of interest bearing deposits decreased 25 basis points.  Loans grew to 74.5% of average interest-earning assets while securities contracted to 23.1% of average interest-bearing assets and short-term investments contracted to 2.3% of average interest-bearing assets, again reflecting the shift in the mix of interest-earning assets to higher yielding assets.

		For the Three Months Ended
YIELD INFORMATION		March 31, 2026		December 31, 2025		March 31, 2025
Yield on loans		5.58 %		5.59 %		5.52 %
Yield on securities		2.74 %		2.69 %		2.28 %
Yield on other earning assets		4.36 %		4.31 %		4.42 %
Yield on total interest-earning assets		4.89 %		4.84 %		4.65 %
Cost of interest-bearing deposits		1.89 %		1.97 %		2.14 %
Cost of borrowings		6.68 %		7.04 %		7.31 %
Cost of total interest-bearing liabilities		1.94 %		2.02 %		2.21 %
Total cost of funds		1.31 %		1.36 %		1.51 %
Cost of total deposits		1.28 %		1.32 %		1.46 %
Net interest margin (1)		3.67 %		3.58 %		3.25 %
Net interest margin - tax-equivalent (2)		3.69 %		3.60 %		3.27 %
Average prime rate		6.75 %		7.02 %		7.50 %

(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 J 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 March 31, 2026, December 31, 2025 and March 31, 2025, the Company recorded $3.1 million, $4.7 million and $1.1 million in provision for credit losses, respectively. The provision for the first quarter of 2026 was driven by net charge-offs of $1.4 million and reserves related to $71.4 million of net loan growth.  The Allowance for Credit Losses increased  $1.2 million to $124.7 million, or 1.42% of loans. Additionally, the $0.5 million provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments.

The Company did not adjust the incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of March 31, 2026.  The remaining incremental reserve contributes two basis points to the Allowance for Credit Losses at period end.  The impact of Hurricane Helene on net income and D-EPS for the first and fourth quarters of 2025 is presented in Appendix H.

Asset quality remained strong with annualized net loan charge-offs of 0.06% for the first quarter of 2026.  Total nonperforming assets ("NPAs") totaled $41.8 million at March 31, 2026, or 0.32% of total assets, up slightly from 0.30% at December 31, 2025 and 0.27% at March 31, 2025.  

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

ASSET QUALITY DATA ($ in thousands)		March 31, 2026		December 31, 2025		March 31, 2025
Nonperforming assets
Nonaccrual loans		$         41,032		$       36,315		$         29,081
Accruing loans > 90 days past due		—		—		—
Total nonperforming loans		41,032		36,315		29,081
Foreclosed real estate		740		1,425		4,769
Total nonperforming assets		$         41,772		$       37,740		$         33,850
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized		0.06 %		0.05 %		0.17 %
Nonperforming loans to total loans		0.47 %		0.42 %		0.36 %
Nonperforming assets to total assets		0.32 %		0.30 %		0.27 %
Allowance for credit losses to total loans		1.42 %		1.42 %		1.49 %

Noninterest Income

Total noninterest income for the first quarter of 2026 was $15.2 million, a $37.7 million increase from the linked quarter, which included a $43.7 million loss on our securities loss-earnback transaction in the fourth quarter of 2025. Adjusting for the securities loss, total noninterest income decreased 28.6% from the $21.2 million adjusted noninterest income for the linked quarter. The linked quarter also included a pretax gain of $4.6 million realized upon the sale of an office building. The current quarter reflected a 17.2% increase from the $13.0 million recorded for the like quarter, primarily related to a $0.9 million increase in SBA loans sale gains and a $0.7 million increase in Other income, net.

Noninterest Expenses

Noninterest expenses amounted to $60.2 million for the first quarter of 2026 compared to $62.0 million for the linked quarter and $57.9 million for the like quarter.  The $1.8 million, or 2.9%, decrease in noninterest expense from the linked quarter was driven by a $1.3 million decrease in Other operating expenses as well as a $0.9 million decrease in Total personnel expenses. The $2.3 million increase from the like quarter was driven by a $1.7 million increase in Total personnel expenses and a $0.7 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 $12.3 million for the first quarter of 2026 compared to $1.2 million for the linked quarter and $10.4 million for the like quarter. These equated to effective tax rates of 20.9%, 7.3% and 22.2% 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 March 31, 2026 were $12.9 billion, an increase of $279.4 million, or 8.9% annualized, from the linked quarter and $511.5 million, or 4.1%, from a year earlier.

Key period end balance sheet components are presented below.

BALANCES ($ in thousands)		March 31, 2026		December 31, 2025		March 31, 2025		Change 1Q26 vs 4Q25		Change 1Q26 vs 1Q25
Total assets		$ 12,947,734		$ 12,668,339		$ 12,436,245		2.2 %		4.1 %
Loans		8,793,814		8,722,419		8,103,033		0.8 %		8.5 %
Investment securities		2,491,035		2,561,655		2,582,781		(2.8) %		(3.6) %
Total cash and cash equivalents		597,991		309,595		772,441		93.2 %		(22.6) %
Noninterest-bearing deposits		3,596,629		3,486,985		3,476,786		3.1 %		3.4 %
Interest-bearing deposits		7,415,854		7,261,436		7,267,873		2.1 %		2.0 %
Borrowings		74,643		74,569		92,055		0.1 %		(18.9) %
Shareholders' equity		1,682,950		1,654,168		1,508,176		1.7 %		11.6 %

Driven by prepayments and maturities, total investment securities decreased to $2.5 billion at March 31, 2026, reflecting a $70.6 million decrease from the linked quarter.  Total unrealized losses on available for sale investment securities was $197.7 million at March 31, 2026, as compared to $194.1 million at December 31, 2025 and $321.2 million at March 31, 2025.

 Total loans amounted to $8.8 billion at March 31, 2026, an increase of $71.4 million, or 3.3% annualized, from December 31, 2025 and an increase of $690.8 million, or 8.5%, from March 31, 2025.  Adjusting for the paydown of one larger seasonal loan, loan growth for the quarter ended March 31, 2026 was 5.9% annualized.  Please see the below table for total loan portfolio mix.  As of March 31, 2026, there were no notable concentrations in geographies within North Carolina or South Carolina or within 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 March 31, 2026, 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		March 31, 2026				December 31, 2025				March 31, 2025
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Commercial and industrial		$  1,000,037		11 %		$  1,046,438		12 %		$     890,071		11 %
Construction, development & other land      loans		821,826		9 %		753,199		9 %		644,439		8 %
Commercial real estate - owner occupied		1,352,473		16 %		1,353,912		15 %		1,233,732		15 %
Commercial real estate - non-owner      occupied		2,921,210		33 %		2,843,555		33 %		2,701,746		34 %
Multi-family real estate		545,586		6 %		537,015		6 %		512,958		6 %
Residential 1-4 family real estate		1,717,550		20 %		1,736,453		20 %		1,709,593		21 %
Home equity loans/lines of credit		369,062		4 %		383,652		4 %		341,240		4 %
Consumer loans		66,430		1 %		67,458		1 %		68,115		1 %
Loans, gross		8,794,174		100 %		8,721,682		100 %		8,101,894		100 %
Unamortized net deferred loan      fees/(costs)		(360)				737				1,139
Total loans		$  8,793,814				$  8,722,419				$  8,103,033

Total deposits were $11.0 billion at March 31, 2026, an increase of $264.1 million, or 10.0% annualized, from  December 31, 2025 and $267.8 million, or 2.5%, from March 31, 2025.

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 March 31, 2026.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO		March 31, 2026				December 31, 2025				March 31, 2025
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Noninterest-bearing checking accounts		$  3,596,629		33 %		$  3,486,985		32 %		$  3,476,786		32 %
Interest-bearing checking accounts		1,462,606		13 %		1,420,795		13 %		1,448,377		14 %
Money market accounts		4,631,619		42 %		4,510,356		42 %		4,386,469		41 %
Savings accounts		519,266		5 %		526,643		5 %		539,632		5 %
Other time deposits		489,257		4 %		493,282		5 %		533,723		5 %
Time deposits >$250,000		308,177		3 %		305,473		3 %		349,990		3 %
Total customer deposits		11,007,554		100 %		10,743,534		100 %		10,734,977		100 %
Brokered deposits		4,929		— %		4,887		— %		9,682		— %
Total deposits		$ 11,012,483		100 %		$ 10,748,421		100 %		$ 10,744,659		100 %

As of March 31, 2026 and December 31, 2025, estimated insured deposits totaled $6.5 billion, or 59.0%, and $6.5 billion, or 60.2%, of total deposits, respectively.  In addition, at March 31, 2026 and December 31, 2025, there were collateralized deposits of $723.8 million and $730.4 million, respectively, such that approximately 65.6% and 67.0%, 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 March 31, 2026 of 16.10%, down slightly from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.80%. 

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 9.63% at March 31, 2026, an increase of 2 basis points from the linked quarter and 108 basis points from March 31, 2025.  The increase in TCE from the like quarter was driven by improvements in the level of unrealized losses on the available for sale securities portfolio, partially a result of the 2025 securities loss-earnback transactions 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		March 31, 2026 (estimated)		December 31, 2025		March 31, 2025
Tangible common equity to tangible assets (non-GAAP)		9.63 %		9.61 %		8.55 %
Common equity tier I capital ratio		14.11 %		14.10 %		14.52 %
Tier I leverage ratio		11.44 %		11.21 %		11.41 %
Tier I risk-based capital ratio		14.85 %		14.87 %		15.34 %
Total risk-based capital ratio		16.10 %		16.12 %		16.80 %

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 March 31, 2026 was 16.7%.  In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 34.0%. 

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.9 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 diluted earnings per share. 

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED INCOME STATEMENT
		For the Three Months Ended
($ in thousands, except per share data - unaudited)		March 31, 2026		December 31, 2025		March 31, 2025
Interest income
Interest and fees on loans		$       120,747		$       120,020		$       110,497
Interest on investment securities:
Taxable interest income		17,556		18,103		15,524
Tax-exempt interest income		1,115		1,115		1,116
Other, principally overnight investments		2,972		4,396		5,487
Total interest income		142,390		143,634		132,624
Interest expense
Interest on deposits		34,046		35,959		38,119
Interest on borrowings		1,228		1,476		1,658
Total interest expense		35,274		37,435		39,777
Net interest income		107,116		106,199		92,847
Provision for credit losses		3,083		4,732		1,116
Net interest income after provision for credit losses		104,033		101,467		91,731
Noninterest income
Service charges on deposit accounts		3,954		4,269		3,767
Other service charges and fees		5,942		5,653		5,919
Presold mortgage loan fees and gains on sale		669		583		450
Commissions from sales of financial products		1,492		1,800		1,408
SBA loan sale gains		903		—		52
Bank-owned life insurance income		1,340		1,375		1,228
Securities losses, net		—		(43,722)		—
Other Income, net		878		7,563		132
Total noninterest income		15,178		(22,479)		12,956
Noninterest expenses
Salaries, incentives and commissions expense		29,978		30,747		28,661
Employee benefit expense		6,516		6,673		6,095
Total personnel expense		36,494		37,420		34,756
Occupancy and equipment expense		5,355		4,903		5,192
Intangibles amortization expense		1,247		1,294		1,516
Other operating expenses		17,122		18,426		16,447
Total noninterest expenses		60,218		62,043		57,911
Income before income taxes		58,993		16,945		46,776
Income tax expense		12,334		1,232		10,370
Net income		$         46,659		$         15,713		$         36,406
Earnings per common share:
Basic		$             1.13		$             0.38		$             0.88
Diluted		1.13		0.38		0.88

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)		March 31, 2026		December 31, 2025		March 31, 2025
Assets
Cash and due from banks, noninterest-bearing		$       135,176		$       146,759		$       149,781
Due from banks, interest-bearing		462,815		162,836		622,660
Total cash and cash equivalents		597,991		309,595		772,441
Securities available for sale		1,979,606		2,048,556		2,064,516
Securities held to maturity		511,429		513,099		518,265
Presold mortgages and SBA loans held for sale		11,191		7,790		5,166
Loans		8,793,814		8,722,419		8,103,033
Allowance for credit losses on loans		(124,734)		(123,581)		(120,631)
Net loans		8,669,080		8,598,838		7,982,402
Premises and equipment, net		139,374		139,125		141,954
Accrued interest receivable		37,296		39,206		35,452
Goodwill		478,750		478,750		478,750
Other intangible assets, net		15,985		17,232		21,388
Bank-owned life insurance		194,626		193,286		189,597
Other assets		312,406		322,862		226,314
Total assets		$    12,947,734		$    12,668,339		$    12,436,245
Liabilities
Deposits:
Noninterest-bearing deposits		$     3,596,629		$     3,486,985		$     3,476,786
Interest-bearing deposits		7,415,854		7,261,436		7,267,873
Total deposits		11,012,483		10,748,421		10,744,659
Borrowings		74,643		74,569		92,055
Accrued interest payable		3,733		3,747		4,935
Other liabilities		173,925		187,434		86,420
Total liabilities		11,264,784		11,014,171		10,928,069
Shareholders' equity
Common stock		968,675		973,884		971,174
Retained earnings		866,387		829,659		783,630
Stock in rabbi trust assumed in acquisition		(893)		(885)		(1,166)
Rabbi trust obligation		893		885		1,166
Accumulated other comprehensive loss		(152,112)		(149,375)		(246,628)
Total shareholders' equity		1,682,950		1,654,168		1,508,176
Total liabilities and shareholders' equity		$    12,947,734		$    12,668,339		$    12,436,245

First Bancorp and Subsidiaries Financial Summary
TREND INFORMATION
		For the Three Months Ended
		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
PERFORMANCE RATIOS (annualized)
ROA (1)		1.48 %		0.49 %		0.64 %		1.24 %		1.21 %
Adjusted ROA (2)		1.48 %		1.54 %		1.31 %		1.24 %		1.21 %
ROCE (3)		11.22 %		3.83 %		5.14 %		10.11 %		10.06 %
Adjusted ROCE (4)		11.22 %		12.01 %		10.55 %		10.11 %		10.06 %
ROTCE (5)		16.05 %		5.80 %		7.83 %		15.25 %		15.54 %
Adjusted ROTCE (6)		16.05 %		17.45 %		15.66 %		15.25 %		15.54 %
Efficiency ratio (7)		49.05 %		73.75 %		66.95 %		53.00 %		54.51 %
Adjusted efficiency ratio (7)		49.05 %		48.53 %		51.09 %		53.00 %		54.51 %
COMMON SHARE DATA
Cash dividends declared - common		$        0.24		$         0.23		$         0.23		$         0.23		$         0.22
Book value per common share		$      40.68		$       39.89		$       38.67		$       37.53		$       36.46
Tangible book value per share (8)		$      29.01		$       28.23		$       26.98		$       25.82		$       24.69
Common shares outstanding at end of period		41,375,026		41,466,227		41,465,437		41,468,098		41,368,828
Weighted average shares outstanding - diluted		41,459,357		41,481,132		41,481,542		41,441,393		41,406,525
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (9)		9.63 %		9.61 %		9.12 %		8.83 %		8.55 %
Common equity tier I capital ratio		14.11 %		14.10 %		14.35 %		14.64 %		14.52 %
Total risk-based capital ratio		16.10 %		16.12 %		16.58 %		16.90 %		16.80 %

(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)  See Appendix I for a reconciliation of the efficiency ratio to the adjusted efficiency ratio.
(8)  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.
(9)  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)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Net interest income		$    107,116		$    106,199		$    102,489		$     96,676		$     92,847
Provision for credit losses		3,083		4,732		3,442		2,212		1,116
Noninterest income		15,178		(22,299)		(12,879)		14,341		12,956
Noninterest expense		60,218		62,223		60,211		58,983		57,911
Income before income taxes		58,993		16,945		25,957		49,822		46,776
Income tax expense		12,334		1,232		5,594		11,256		10,370
Net income		46,659		15,713		20,363		38,566		36,406
Earnings per common share - diluted		$         1.13		$         0.38		$          0.49		$         0.93		$         0.88

First Bancorp and Subsidiaries Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
	For the Three Months Ended
	March 31, 2026						December 31, 2025						March 31, 2025
($ 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)	$   8,781,728		$  120,747		5.58 %		$   8,535,422		$  120,020		5.59 %		$   8,107,394		$  110,497		5.52 %
Taxable securities	2,442,140		17,556		2.88 %		2,566,169		18,103		2.82 %		2,629,066		15,524		2.36 %
Non-taxable securities	284,712		1,115		1.57 %		285,729		1,115		1.56 %		288,905		1,116		1.55 %
Short-term investments, primarily interest-bearing cash	276,471		2,972		4.36 %		404,658		4,396		4.31 %		503,377		5,487		4.42 %
Total interest-earning assets	11,785,051		142,390		4.89 %		11,791,978		143,634		4.84 %		11,528,742		132,624		4.65 %
Cash and due from banks	147,124						147,748						133,756
Premises and equipment	139,775						140,552						143,064
Other assets	690,864						635,861						421,248
Total assets	$ 12,762,814						$ 12,716,139						$ 12,226,810
Liabilities
Interest-bearing checking	$   1,416,600		$      2,230		0.64 %		$   1,381,272		$      2,100		0.60 %		$   1,431,556		$      2,497		0.71 %
Money market deposits	4,566,409		26,516		2.35 %		4,539,138		28,358		2.48 %		4,337,560		29,180		2.73 %
Savings deposits	524,123		241		0.19 %		530,147		249		0.19 %		539,104		240		0.18 %
Other time deposits	495,115		2,819		2.31 %		503,149		2,937		2.32 %		558,648		3,353		2.43 %
Time deposits >$250,000	304,089		2,240		2.99 %		305,844		2,315		3.00 %		352,174		2,849		3.28 %
Total interest-bearing deposits	7,306,336		34,046		1.89 %		7,259,550		35,959		1.97 %		7,219,042		38,119		2.14 %
Short-term borrowings	745		1		0.61 %		757		1		0.61 %		794		1		0.60 %
Long-term borrowings	73,858		1,227		6.74 %		82,360		1,475		7.10 %		91,166		1,657		7.37 %
Total interest-bearing liabilities	7,380,939		35,274		1.94 %		7,342,667		37,435		2.02 %		7,311,002		39,777		2.21 %
Noninterest-bearing checking	3,515,359						3,575,317						3,375,098
Other liabilities	179,753						170,179						72,839
Shareholders' equity	1,686,763						1,627,976						1,467,871
Total liabilities and shareholders' equity	$ 12,762,814						$ 12,716,139						$ 12,226,810
Net yield on interest-earning assets and net interest income			$  107,116		3.67 %				$  106,199		3.58 %				$     92,847		3.25 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			$  107,595		3.69 %				$  106,601		3.60 %				$     93,284		3.27 %
Interest rate spread					2.95 %						2.82 %						2.44 %
Average prime rate					6.75 %						7.02 %						7.50 %

(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2)   Includes accretion of discount on acquired loans of $1.1 million, $1.3 million and $1.8 million for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, 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)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Total shareholders' common equity		$  1,682,950		$  1,654,168		$  1,603,323		$  1,556,180		$  1,508,176
Less: Goodwill and other intangibles, net of related taxes		(482,639)		(483,644)		(484,623)		(485,657)		(486,749)
Tangible common equity		$  1,200,311		$  1,170,524		$  1,118,700		$  1,070,523		$  1,021,427

APPENDIX B:  Calculation of Tangible Book Value Per Share ("TBVPS")
		For the Three Months Ended
($ in thousands except per share data)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Tangible common equity (Appendix A)		$  1,200,311		$  1,170,524		$  1,118,700		$  1,070,523		$  1,021,427
Common shares outstanding		41,375,026		41,466,227		41,465,437		41,468,098		41,368,828
Tangible book value per common share		$         29.01		$         28.23		$         26.98		$         25.82		$         24.69

APPENDIX C:  TCE Ratio
		For the Three Months Ended
($ in thousands)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Tangible common equity (Appendix A)		$  1,200,311		$  1,170,524		$  1,118,700		$  1,070,523		$  1,021,427
Total assets		12,947,734		12,668,339		12,750,263		12,608,265		12,436,245
Less: Goodwill and other intangibles, net of related taxes		(482,639)		(483,644)		(484,623)		(485,657)		(486,749)
Tangible assets ("TA")		$ 12,465,095		$ 12,184,695		$ 12,265,640		$ 12,122,608		$ 11,949,496
TCE to TA ratio		9.63 %		9.61 %		9.12 %		8.83 %		8.55 %

Reconciliation of non-GAAP measures, continued APPENDIX D:  Adjusted Net Income and Adjusted D-EPS
		For the Three Months Ended
($ in thousands)		March 31, 2026		December 31, 2025		March 31, 2025
Net income (A)		$     46,659		$     15,713		$     36,406
Impact of loss-earnback
Securities loss from loss-earnback		—		43,722		—
Less, tax impact		—		(10,141)		—
After-tax impact of loss-earnback		—		33,581		—
Adjusted net income (B)		$     46,659		$     49,294		$     36,406
Weighted average shares outstanding - diluted (C)		41,459,357		41,481,132		41,406,525
D-EPS (A/C)		$        1.13		$        0.38		$        0.88
Adjusted D-EPS (B/C)		$        1.13		$        1.19		$        0.88

APPENDIX E:  Calculation of Return on Average Assets ("ROA") and Adjusted ROA
		For the Three Months Ended
($ in thousands)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Net income (A)		$        46,659		$        15,713		$        20,363		$        38,566		$        36,406
After-tax impact of loss-earnback		—		33,581		21,433		—		—
Adjusted net income (B)		$        46,659		$        49,294		$        41,796		$        38,566		$        36,406
Average total assets (C)		$ 12,762,814		$ 12,716,139		$ 12,640,016		$ 12,458,372		$ 12,226,810
ROA (A/C)		1.48 %		0.49 %		0.64 %		1.24 %		1.21 %
Adjusted ROA (B/C)		1.48 %		1.54 %		1.31 %		1.24 %		1.21 %

APPENDIX F:  Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
		For the Three Months Ended
($ in thousands)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Net income (A)		$      46,659		$      15,713		$      20,363		$      38,566		$      36,406
After-tax impact of loss-earnback		—		33,581		21,433		—		—
Adjusted net income (B)		$      46,659		$      49,294		$      41,796		$      38,566		$      36,406
Average common equity (C)		$ 1,686,763		$ 1,627,976		$ 1,571,104		$ 1,530,550		$ 1,467,871
ROCE (A/C)		11.22 %		3.83 %		5.14 %		10.11 %		10.06 %
Adjusted ROCE (B/C)		11.22 %		12.01 %		10.55 %		10.11 %		10.06 %

Reconciliation of non-GAAP measures, continued APPENDIX G:  Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
		For the Three Months Ended
($ in thousands)		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Net Income		$      46,659		$      15,713		$      20,363		$      38,566		$      36,406
Intangible asset amortization, net of taxes		960		994		1,066		1,123		1,159
Tangible Net income  (A)		47,619		16,707		21,429		39,689		37,565
After-tax impact of loss-earnback		—		33,581		21,433		—		—
Adjusted tangible net income  (B)		$      47,619		$      50,288		$      42,862		$      39,689		$      37,565
Average common equity		$ 1,686,763		$ 1,627,976		$ 1,571,104		$ 1,530,550		$ 1,467,871
Less: Average goodwill and other intangibles, net of related taxes		(483,314)		(484,313)		(485,331)		(486,393)		(487,395)
Average TCE  (C)		$ 1,203,449		$ 1,143,663		$ 1,085,773		$ 1,044,157		$     980,476
ROTCE (A/C)		16.05 %		5.80 %		7.83 %		15.25 %		15.54 %
Adjusted ROTCE (B/C)		16.05 %		17.45 %		15.66 %		15.25 %		15.54 %

APPENDIX H: Impact of Hurricane Helene
		For the Three Months Ended
($ in thousands)		December 31, 2025		March 31, 2025
Impact of Hurricane Helene
Provision for (benefit from) credit losses		$      (1,600)		$      (2,000)
Building repairs and maintenance		—		—
Other		—		—
Total		(1,600)		(2,000)
Less, tax impact		371		464
After-tax impact of Hurricane Helene		$      (1,229)		$      (1,536)
Weighted average shares outstanding - diluted		41,481,132		41,406,525
Impact of Hurricane Helene per diluted share		$         0.03		$         0.04

APPENDIX I: Efficiency Ratio and Adjusted Efficiency Ratio
		For the Three Months Ended
		March 31, 2026		December 31, 2025		March 31, 2025
Noninterest expenses (A)		$   60,218		$   62,043		$   57,911
Nointerest income (B)		15,178		(22,479)		12,956
Securities losses, net		—		(43,722)		—
Adjusted nointerest income (C)		15,178		21,243		12,956
Net interest income – tax-equivalent (D)		107,595		106,601		93,284
Efficiency ratio A/(B+D)		49.05 %		73.75 %		54.51 %
Adjusted efficiency ratio A/(C+D)		49.05 %		48.53 %		54.51 %

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

Included in interest income for the first quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.3 million for the linked quarter and $1.8 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, three basis points and five basis points, respectively, on the Company's NIM and NIM-T/E in the first quarter of 2026, 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)		March 31, 2026		December 31, 2025		March 31, 2025
Interest income - increased by accretion of loan discount on acquired loans		$          1,065		$          1,298		$          1,789
Total interest income impact		1,065		1,298		1,789
Interest expense - increased by discount accretion on deposits		(61)		(62)		(103)
Interest expense - increased by discount accretion on borrowings		(86)		(161)		(191)
Total net interest expense impact		(147)		(223)		(294)
Total impact on net interest income		$             918		$          1,075		$          1,495

 

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SOURCE First Bancorp

FAQ

What were First Bancorp (FBNC) Q1 2026 earnings and EPS?

First Bancorp reported Q1 2026 net income $46.7M and $1.13 diluted EPS. According to the company, this compares to $15.7M ($0.38) in the linked quarter and $36.4M ($0.88) in Q1 2025.

How did First Bancorp's net interest margin (NIM) change in Q1 2026 for FBNC?

NIM expanded to 3.67% in Q1 2026, up 9 basis points from the linked quarter. According to the company, the expansion was driven by higher loan mix and modestly higher securities yields.

What drivers did First Bancorp (FBNC) cite for loan and deposit trends in Q1 2026?

Total loans were $8.79B at March 31, 2026 and average core deposits were $10.8B. According to the company, loan growth and deposit cost management supported margin and balance-sheet mix shifts.

Are there notable balance-sheet risks for First Bancorp (FBNC) from Q1 2026 results?

Available-for-sale securities had $197.7M unrealized losses at quarter end and ACL was 1.42% of loans. According to the company, credit quality metrics remained strong despite these unrealized losses.