First Bancorp Reports Fourth Quarter and Full Year Results

Rhea-AI Summary

First Bancorp (NASDAQ:FBNC) reported unaudited Q4 2025 net income of $15.7M ($0.38 D‑EPS) and full‑year 2025 net income of $111.0M ($2.68 D‑EPS). Excluding a $43.7M securities loss, Q4 adjusted net income was $49.3M ($1.19 adjusted D‑EPS).

Key operational strength included $8.7B total loans (loan growth +14.3% annualized) and net interest income of $106.2M (NIM 3.58%). Noninterest expense was $62.2M. The company repaid $18M subordinated debt in Q4, contributing to modest declines in certain capital ratios.

Positive

• Full‑year net income +45.7% to $111.0M year‑over‑year
• Net interest income +19.5% YoY to $106.2M
• Loan growth annualized +14.3% to $8.7B at 12/31/2025

Negative

• Securities loss of $43.7M reduced Q4 GAAP net income and lowered D‑EPS by $0.81
• Quarterly net income declined 22.8% QoQ from $20.4M to $15.7M
• Common equity tier 1 ratio declined to 14.06% at 12/31/2025 from 14.35% at 9/30/2025

Key Figures

Q4 2025 net income: $15.7M Q4 2025 diluted EPS: $0.38 Q4 2025 adjusted D-EPS: $1.19 +5 more

8 metrics

Q4 2025 net income $15.7M Quarter ended December 31, 2025

Q4 2025 diluted EPS $0.38 Reported D-EPS, Q4 2025

Q4 2025 adjusted D-EPS $1.19 Excludes $43.7M securities loss, Q4 2025

Full-year 2025 net income $111.0M Twelve months ended December 31, 2025

Full-year 2025 adjusted net income $166.1M Excludes 2025 securities loss-earnback transactions

Net interest margin 3.58% Q4 2025 NIM, up from 3.46% linked quarter

Total loans $8.72B Loans at December 31, 2025

Securities loss $43.7M Pretax loss in Q4 2025 loss-earnback transaction

Market Reality Check

Price: $60.95 Vol: Volume 262,536 vs 20-day ...

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$60.95 Last Close

Volume Volume 262,536 vs 20-day average 246,073 (relative volume 1.07). normal

Technical Price $57.75 trading above 200-day MA at $48.03, near 52-week high of $58.79.

Peers on Argus

FBNC slipped 0.29% while most close regional peers (FRME, BANR, EFSC, PPBI) were...

FBNC slipped 0.29% while most close regional peers (FRME, BANR, EFSC, PPBI) were modestly positive and CUBI fell 2.09%, pointing to stock‑specific dynamics rather than a sector‑wide move.

Common Catalyst Regional bank earnings season (e.g., BANR also reported Q4 and full-year 2025 results).

Historical Context

5 past events · Latest: Dec 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 12	Dividend declaration	Positive	-0.0%	Announced cash dividend of $0.23 per share with strong capital/liquidity.
Nov 20	Executive hire	Positive	-0.4%	New Chief Risk Officer and Head of Legal joined with deep experience.
Oct 30	Board appointment	Positive	+0.0%	CEO of First Bank added to boards of First Bank and First Bancorp.
Oct 22	Earnings report	Positive	-1.9%	Q3 2025 results with higher net income, NIM expansion, and loan growth.
Oct 07	Partnership extension	Positive	-1.1%	Extended Good Goals sponsorship with Carolina Hurricanes and donations.

Pattern Detected

Recent generally positive headlines have often seen flat-to-negative next-day reactions, suggesting a tendency toward muted or contrarian trading around news.

Recent Company History

Over the past few months, FBNC has reported stronger earnings, capital returns, and governance updates. A Q3 2025 earnings release highlighted higher net income, expanding NIM and loan growth, yet the stock fell about 1.9%. A $0.23 dividend declaration on Dec 12, 2025 and community/partnership news also saw slightly negative price moves. Management changes, including a new CRO and board appointment, were accompanied by flat to modest price responses. Today’s Q4 and full-year results fit into this pattern of operational progress paired with cautious trading.

Market Pulse Summary

This announcement highlights solid core performance in Q4 2025, with net interest income of $106.2M,...

Analysis

This announcement highlights solid core performance in Q4 2025, with net interest income of $106.2M, NIM at 3.58%, and loans reaching $8.7B. Reported D‑EPS of $0.38 was dampened by a one‑time $43.7M securities loss, while adjusted D‑EPS of $1.19 and adjusted full‑year net income of $166.1M underscore stronger underlying profitability. Asset quality metrics, including nonperforming assets of $37.7M and an ACL ratio of 1.42%, suggest credit remained well controlled.

Key Terms

net interest margin, allowance for credit losses, nonperforming assets, loan-to-deposit ratio

4 terms

net interest margin financial

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

allowance for credit losses financial

"The net effect of these factors was a $2.6 million increase in the allowance for credit losses to $123.6 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.

nonperforming assets financial

"Total nonperforming assets ("NPAs") totaled $37.7 million at December 31, 2025"

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.

loan-to-deposit ratio financial

"The loan-to-deposit ratio increased to 81.2% as of December 31, 2025."

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.

AI-generated analysis. Not financial advice.

 

Fourth Quarter 2025 Financial Data
(Dollars in 000s, except per share data)	Q4-2025		Q3-2025		Q4-2024
Summary Income Statement
Total interest income	$  143,634		$  144,200		$  132,395
Total interest expense	37,435		41,711		43,554
Net interest income	106,199		102,489		88,841
Provision for credit losses	4,732		3,442		507
Noninterest income	(22,299)		(12,879)		(23,177)
Noninterest expenses	62,223		60,211		58,279
Income tax expense	1,232		5,594		3,327
Net income	$ 15,713		$ 20,363		$   3,551
Key Metrics
Diluted EPS	$     0.38		$     0.49		$     0.08
Adjusted diluted EPS (1)	$     1.19		$     1.01		$     0.76
Book value per share	39.89		38.67		34.96
Tangible book value per share	28.23		26.98		23.17
ROA	0.49 %		0.64 %		0.12 %
Adjusted ROA (1)	1.54 %		1.31 %		1.03 %
ROCE	3.83 %		5.14 %		1.29 %
Adjusted ROCE (1)	12.01 %		10.55 %		8.60 %
ROTCE	5.80 %		7.83 %		1.93 %
Adjusted ROTCE (1)	17.45 %		15.66 %		13.39 %
NIM	3.58 %		3.46 %		3.05 %
NIM- T/E	3.60 %		3.47 %		3.08 %
Quarterly NCO ratio	0.05 %		0.14 %		0.04 %
ACL ratio	1.42 %		1.44 %		1.51 %
Capital Ratios (2)
Tangible common equity to tangible assets	9.61 %		9.12 %		8.22 %
Common equity tier I capital ratio	14.06 %		14.35 %		14.35 %
Total risk-based capital ratio	16.08 %		16.58 %		16.63 %
(1) Q4-2025, Q3-2025 and Q4-2024 adjusted to exclude impact of securities loss of $43.7 million (after tax $33.6 million), $27.9 million (after tax $21.4 million) and $36.8 million (after tax $28.2 million), respectively.  See Appendices D, E, F and G.
(2) December 31, 2025 ratios are preliminary.

Fourth Quarter 2025 Highlights

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

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

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

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

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

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

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

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

Net Interest Income and Net Interest Margin

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

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

		For the Three Months Ended
YIELD INFORMATION		December 31, 2025		September 30, 2025		December 31, 2024
Yield on loans		5.58 %		5.69 %		5.47 %
Yield on securities		2.69 %		2.55 %		1.96 %
Yield on other earning assets		4.31 %		4.64 %		4.49 %
Yield on total interest-earning assets		4.84 %		4.86 %		4.55 %
Cost of interest-bearing deposits		1.97 %		2.18 %		2.31 %
Cost of borrowings		7.04 %		7.20 %		7.66 %
Cost of total interest-bearing liabilities		2.02 %		2.24 %		2.38 %
Total cost of funds		1.36 %		1.51 %		1.62 %
Cost of total deposits		1.32 %		1.46 %		1.57 %
Net interest margin (1)		3.58 %		3.46 %		3.05 %
Net interest margin - tax-equivalent (2)		3.60 %		3.47 %		3.08 %
Average prime rate		7.02 %		7.46 %		7.81 %

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

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

Provision for Credit Losses and Credit Quality

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

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

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

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

ASSET QUALITY DATA ($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024
Nonperforming assets
Nonaccrual loans		$          36,315		$          37,289		$          31,779
Accruing loans > 90 days past due		—		—		—
Total nonperforming loans		36,315		37,289		31,779
Foreclosed real estate		1,425		1,718		4,965
Total nonperforming assets		$          37,740		$          39,007		$          36,744
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized		0.05 %		0.14 %		0.04 %
Nonperforming loans to total loans		0.42 %		0.44 %		0.39 %
Nonperforming assets to total assets		0.30 %		0.31 %		0.30 %
Allowance for credit losses to total loans		1.42 %		1.44 %		1.51 %

Noninterest Income

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

Noninterest Expenses

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

Income Taxes

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

Balance Sheet

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

Key period end balance sheet components are presented below.

BALANCES ($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024		Change 4Q25 vs 3Q25		Change 4Q25 vs 4Q24
Total assets		$ 12,668,339		$ 12,750,263		$ 12,147,694		(0.6) %		4.3 %
Loans		8,722,419		8,419,224		8,094,676		3.6 %		7.8 %
Investment securities		2,561,655		2,680,401		2,563,060		(4.4) %		(0.1) %
Total cash and cash equivalents		309,595		597,975		507,507		(48.2) %		(39.0) %
Noninterest-bearing deposits		3,486,985		3,580,560		3,367,624		(2.6) %		3.5 %
Interest-bearing deposits		7,261,436		7,300,610		7,162,901		(0.5) %		1.4 %
Borrowings		74,569		92,421		91,876		(19.3) %		(18.8) %
Shareholders' equity		1,654,168		1,603,323		1,445,611		3.2 %		14.4 %

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

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

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

LOAN PORTFOLIO		December 31, 2025				September 30, 2025				December 31, 2024
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Commercial and industrial		$   1,046,438		12 %		$      904,226		11 %		$      919,690		11 %
Construction, development & other land loans		753,199		9 %		688,302		8 %		647,167		8 %
Commercial real estate - owner occupied		1,353,912		15 %		1,337,345		16 %		1,248,812		16 %
Commercial real estate - non-owner occupied		2,843,555		33 %		2,773,349		33 %		2,625,554		33 %
Multi-family real estate		537,015		6 %		535,681		6 %		506,407		6 %
Residential 1-4 family real estate		1,736,453		20 %		1,743,884		21 %		1,729,322		21 %
Home equity loans/lines of credit		383,652		4 %		365,488		4 %		345,883		4 %
Consumer loans		67,458		1 %		70,031		1 %		70,653		1 %
Loans, gross		8,721,682		100 %		8,418,306		100 %		8,093,488		100 %
Unamortized net deferred loan fees		737				918				1,188
Total loans		$   8,722,419				$   8,419,224				$   8,094,676

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

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

DEPOSIT PORTFOLIO		December 31, 2025				September 30, 2025				December 31, 2024
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Noninterest-bearing checking accounts		$   3,486,985		32 %		$   3,580,560		33 %		$   3,367,624		32 %
Interest-bearing checking accounts		1,420,795		13 %		1,418,378		13 %		1,398,395		13 %
Money market accounts		4,510,356		42 %		4,527,728		41 %		4,285,405		41 %
Savings accounts		526,643		5 %		532,462		5 %		542,133		5 %
Other time deposits		493,282		5 %		504,942		5 %		566,514		5 %
Time deposits >$250,000		305,473		3 %		312,255		3 %		360,854		4 %
Total customer deposits		10,743,534		100 %		10,876,325		100 %		10,520,925		100 %
Brokered deposits		4,887		— %		4,845		— %		9,600		— %
Total deposits		$ 10,748,421		100 %		$ 10,881,170		100 %		$ 10,530,525		100 %

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

Capital

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

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

CAPITAL RATIOS		December 31, 2025 (estimated)		September 30, 2025		December 31, 2024
Tangible common equity to tangible assets (non-GAAP)		9.61 %		9.12 %		8.22 %
Common equity tier I capital ratio		14.06 %		14.35 %		14.35 %
Tier I leverage ratio		11.19 %		11.18 %		11.15 %
Tier I risk-based capital ratio		14.83 %		15.14 %		15.17 %
Total risk-based capital ratio		16.08 %		16.58 %		16.63 %

Liquidity

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

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

About First Bancorp

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

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

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

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

Non-GAAP Measures

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

 

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED INCOME STATEMENT
		For the Three Months Ended						For the Twelve Months Ended
($ in thousands, except per share data - unaudited)		December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Interest income
Interest and fees on loans		$      120,020		$      118,822		$      109,835		$      462,306		$      441,181
Interest on investment securities:
Taxable interest income		18,103		17,571		12,712		68,055		47,510
Tax-exempt interest income		1,115		1,114		1,116		4,461		4,466
Other, principally overnight investments		4,396		6,693		8,732		22,413		26,083
Total interest income		143,634		144,200		132,395		557,235		519,240
Interest expense
Interest on deposits		35,959		40,035		41,786		152,518		172,085
Interest on borrowings		1,476		1,676		1,768		6,470		14,882
Total interest expense		37,435		41,711		43,554		158,988		186,967
Net interest income		106,199		102,489		88,841		398,247		332,273
Provision for credit losses		4,732		3,442		507		11,502		16,448
Net interest income after provision for credit losses		101,467		99,047		88,334		386,745		315,825
Noninterest income
Service charges on deposit accounts		4,269		4,225		4,293		16,237		16,620
Other service charges and fees		5,653		6,355		5,828		24,486		22,267
Presold mortgage loan fees and gains on sale		583		471		676		1,819		2,292
Commissions from sales of financial products		1,800		1,678		1,202		6,274		5,270
SBA loan sale gains		—		869		291		1,072		3,630
Bank-owned life insurance income		1,375		1,289		1,225		5,113		4,773
Securities losses, net		(43,722)		(27,905)		(36,820)		(71,627)		(37,981)
Other Income, net		7,743		139		128		8,691		1,028
Total noninterest income		(22,299)		(12,879)		(23,177)		(7,935)		17,899
Noninterest expenses
Salaries, incentives and commissions expense		30,747		31,065		28,447		119,478		113,853
Employee benefit expense		6,673		5,751		6,702		24,706		26,169
Total personnel expense		37,420		36,816		35,149		144,184		140,022
Occupancy and equipment expense		4,903		5,145		4,700		20,435		20,535
Intangibles amortization expense		1,294		1,394		1,563		5,672		6,604
Other operating expenses		18,606		16,856		16,867		69,019		68,446
Total noninterest expenses		62,223		60,211		58,279		239,310		235,607
Income before income taxes		16,945		25,957		6,878		139,500		98,117
Income tax expense		1,232		5,594		3,327		28,452		21,902
Net income		$         15,713		$         20,363		$           3,551		$      111,048		$         76,215
Earnings per common share:
Basic		$             0.38		$             0.49		$             0.09		$             2.68		$             1.85
Diluted		0.38		0.49		0.08		2.68		1.84

 

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)		December 31, 2025		September 30, 2025		December 31, 2024
Assets
Cash and due from banks, noninterest-bearing		$           146,759		$           138,369		$             78,596
Due from banks, interest-bearing		162,836		459,606		428,911
Total cash and cash equivalents		309,595		597,975		507,507
Securities available for sale		2,048,556		2,165,668		2,043,062
Securities held to maturity		513,099		514,733		519,998
Presold mortgages and SBA loans held for sale		7,790		4,032		5,942
Loans		8,722,419		8,419,224		8,094,676
Allowance for credit losses on loans		(123,581)		(120,948)		(122,572)
Net loans		8,598,838		8,298,276		7,972,104
Premises and equipment, net		139,125		141,441		143,459
Accrued interest receivable		39,206		35,986		36,329
Goodwill		478,750		478,750		478,750
Other intangible assets, net		17,232		18,526		22,904
Bank-owned life insurance		193,286		191,911		188,460
Other assets		322,862		302,965		229,179
Total assets		$      12,668,339		$      12,750,263		$      12,147,694
Liabilities
Deposits:
Noninterest-bearing deposits		$        3,486,985		$        3,580,560		$        3,367,624
Interest-bearing deposits		7,261,436		7,300,610		7,162,901
Total deposits		10,748,421		10,881,170		10,530,525
Borrowings		74,569		92,421		91,876
Accrued interest payable		3,747		4,436		4,604
Other liabilities		187,434		168,913		75,078
Total liabilities		11,014,171		11,146,940		10,702,083
Shareholders' equity
Common stock		973,884		973,235		971,313
Retained earnings		829,659		823,483		756,327
Stock in rabbi trust assumed in acquisition		(885)		(877)		(1,148)
Rabbi trust obligation		885		877		1,148
Accumulated other comprehensive loss		(149,375)		(193,395)		(282,029)
Total shareholders' equity		1,654,168		1,603,323		1,445,611
Total liabilities and shareholders' equity		$      12,668,339		$      12,750,263		$      12,147,694

 

First Bancorp and Subsidiaries Financial Summary
TREND INFORMATION
		For the Three Months Ended
		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
PERFORMANCE RATIOS (annualized)
ROA (1)		0.49 %		0.64 %		1.24 %		1.21 %		0.12 %
Adjusted ROA (2)		1.54 %		1.31 %		1.24 %		1.21 %		1.03 %
ROCE (3)		3.83 %		5.14 %		10.11 %		10.06 %		0.96 %
Adjusted ROCE (4)		12.01 %		10.55 %		10.11 %		10.06 %		8.60 %
ROTCE (5)		5.80 %		7.83 %		15.25 %		15.54 %		1.93 %
Adjusted ROTCE (6)		17.45 %		15.66 %		15.25 %		15.54 %		13.39 %
COMMON SHARE DATA
Cash dividends declared - common		$          0.23		$          0.23		$          0.23		$          0.22		$          0.22
Book value per common share		$        39.89		$        38.67		$        37.53		$        36.46		$        34.96
Tangible book value per share (7)		$        28.23		$        26.98		$        25.82		$        24.69		$        23.17
Common shares outstanding at end of period		41,466,227		41,465,437		41,468,098		41,368,828		41,347,418
Weighted average shares outstanding - diluted		41,481,132		41,481,542		41,441,393		41,406,525		41,422,973
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (8)		9.61 %		9.12 %		8.83 %		8.55 %		8.22 %
Common equity tier I capital ratio		14.06 %		14.35 %		14.64 %		14.52 %		14.35 %
Total risk-based capital ratio		16.08 %		16.58 %		16.90 %		16.80 %		16.63 %

(1)  Calculated by dividing annualized net income by average assets.
(2) See Appendix E for a reconciliation of ROA to adjusted ROA.
(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity.  See Appendix F for the components of the calculation.
(4) See Appendix F for a reconciliation of ROCE to adjusted ROCE.
(5) Return on average tangible common equity is a non-GAAP financial measure.  See Appendix G for the components of the calculation and the reconciliation of average common equity to average TCE.
(6) See Appendix G for a reconciliation of ROTCE to adjusted ROTCE.
(7)  Tangible book value per share is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.
(8)  Tangible common equity ratio is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.

 

		For the Three Months Ended
INCOME STATEMENT ($ in thousands except per share data)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Net interest income		$      106,199		$      102,489		$         96,676		$         92,883		$         88,841
Provision for credit losses		4,732		3,442		2,212		1,116		507
Noninterest income		(22,299)		(12,879)		14,341		12,902		(23,177)
Noninterest expense		62,223		60,211		58,983		57,893		58,279
Income before income taxes		16,945		25,957		49,822		46,776		6,878
Income tax expense		1,232		5,594		11,256		10,370		3,327
Net income		15,713		20,363		38,566		36,406		3,551
Earnings per common share - diluted		$             0.38		$             0.49		$             0.93		$             0.88		$             0.08

 

First Bancorp and Subsidiaries Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
	For the Three Months Ended
	December 31, 2025						September 30, 2025						December 31, 2024
($ in thousands)	Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate
Assets
Loans (1) (2)	$   8,535,422		$    120,020		5.58 %		$   8,297,643		$    118,822		5.69 %		$   7,993,671		$    109,835		5.47 %
Taxable securities	2,566,169		18,103		2.82 %		2,637,711		17,571		2.66 %		2,535,232		12,712		2.01 %
Non-taxable securities	285,729		1,115		1.56 %		286,750		1,114		1.56 %		289,922		1,116		1.54 %
Short-term investments, primarily interest-bearing cash	404,658		4,396		4.31 %		571,922		6,693		4.64 %		773,655		8,732		4.49 %
Total interest-earning assets	11,791,978		143,634		4.84 %		11,794,026		144,200		4.86 %		11,592,480		132,395		4.55 %
Cash and due from banks	147,748						149,771						80,481
Premises and equipment	140,552						141,858						144,467
Other assets	635,861						554,361						426,343
Total assets	$  12,716,139						$  12,640,016						$  12,243,771
Liabilities
Interest-bearing checking	$   1,381,272		$       2,100		0.60 %		$   1,403,683		$       2,420		0.68 %		$   1,389,063		$       2,438		0.70 %
Money market deposits	4,539,138		28,358		2.48 %		4,510,662		31,674		2.79 %		4,273,170		31,430		2.93 %
Savings deposits	530,147		249		0.19 %		535,464		267		0.20 %		542,861		269		0.20 %
Other time deposits	503,149		2,937		2.32 %		514,143		3,029		2.34 %		598,152		4,192		2.79 %
Time deposits >$250,000	305,844		2,315		3.00 %		328,207		2,645		3.20 %		377,693		3,457		3.64 %
Total interest-bearing deposits	7,259,550		35,959		1.97 %		7,292,159		40,035		2.18 %		7,180,939		41,786		2.31 %
Borrowings	83,117		1,476		7.04 %		92,349		1,676		7.20 %		91,789		1,768		7.66 %
Total interest-bearing liabilities	7,342,667		37,435		2.02 %		7,384,508		41,711		2.24 %		7,272,728		43,554		2.38 %
Noninterest-bearing checking	3,575,317						3,550,499						3,427,690
Other liabilities	170,179						133,905						77,172
Shareholders' equity	1,627,976						1,571,104						1,466,181
Total liabilities and shareholders' equity	$  12,716,139						$  12,640,016						$  12,243,771
Net yield on interest-earning assets and net interest income			$    106,199		3.58 %				$    102,489		3.46 %				$      88,841		3.05 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			$    106,601		3.60 %				$    102,828		3.47 %				$      89,587		3.08 %
Interest rate spread					2.82 %						2.62 %						2.17 %
Average prime rate					7.02 %						7.46 %						7.81 %

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

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

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

 

First Bancorp and Subsidiaries Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
							For the Twelve Months Ended
							December 31, 2025						December 31, 2024
($ in thousands)							Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate
Assets
Loans (1) (2)							$   8,283,246		$    462,306		5.58 %		$   8,046,681		$    441,181		5.48 %
Taxable securities							2,632,412		68,055		2.59 %		2,608,494		47,510		1.82 %
Non-taxable securities							287,298		4,461		1.55 %		291,520		4,466		1.53 %
Short-term investments, primarily interest-bearing cash							496,404		22,413		4.52 %		561,886		26,083		4.64 %
Total interest-earning assets							11,699,360		557,235		4.76 %		11,508,581		519,240		4.51 %
Cash and due from banks							146,136						84,997
Premises and equipment							141,884						147,916
Other assets							524,650						393,001
Total assets							$  12,512,030						$  12,134,495
Liabilities
Interest-bearing checking							$   1,412,605		$       9,443		0.67 %		$   1,395,856		$       9,910		0.71 %
Money market deposits							4,437,314		119,158		2.69 %		4,039,999		126,531		3.13 %
Savings deposits							535,863		1,009		0.19 %		564,473		1,209		0.21 %
Other time deposits							527,357		12,406		2.35 %		666,868		20,429		3.06 %
Time deposits >$250,000							332,895		10,502		3.15 %		373,851		14,006		3.75 %
Total interest-bearing deposits							7,246,034		152,518		2.10 %		7,041,047		172,085		2.44 %
Borrowings							89,889		6,470		7.20 %		232,967		14,882		6.39 %
Total interest-bearing liabilities							7,335,923		158,988		2.17 %		7,274,014		186,967		2.57 %
Noninterest-bearing checking							3,506,429						3,367,035
Other liabilities							119,805						76,985
Shareholders' equity							1,549,873						1,416,461
Total liabilities and shareholders' equity							$  12,512,030						$  12,134,495
Net yield on interest-earning assets and net interest income									$    398,247		3.40 %				$    332,273		2.89 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)									$    399,636		3.42 %				$    335,256		2.93 %
Interest rate spread											2.59 %						1.94 %
Average prime rate											7.37 %						8.31 %

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

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

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

 

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

		For the Three Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Total shareholders' common equity		$   1,654,168		$   1,603,323		$   1,556,180		$   1,508,176		$   1,445,611
Less: Goodwill and other intangibles, net of related taxes		(483,643)		(484,623)		(485,657)		(486,749)		(487,660)
Tangible common equity		$   1,170,525		$   1,118,700		$   1,070,523		$   1,021,427		$      957,951

 

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

		For the Three Months Ended
($ in thousands except per share data)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Tangible common equity (Appendix A)		$   1,170,525		$   1,118,700		$   1,070,523		$   1,021,427		$      957,951
Common shares outstanding		41,466,227		41,465,437		41,468,098		41,368,828		41,347,418
Tangible book value per common share		$           28.23		$           26.98		$           25.82		$           24.69		$           23.17

 

APPENDIX C:  TCE Ratio

		For the Three Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Tangible common equity (Appendix A)		$ 1,170,525		$ 1,118,700		$ 1,070,523		$ 1,021,427		$    957,951
Total assets		12,668,339		12,750,263		12,608,265		12,436,245		12,147,694
Less: Goodwill and other intangibles, net of related taxes		(483,643)		(484,623)		(485,657)		(486,749)		(487,660)
Tangible assets ("TA")		$  12,184,696		$  12,265,640		$  12,122,608		$  11,949,496		$  11,660,034
TCE to TA ratio		9.61 %		9.12 %		8.83 %		8.55 %		8.22 %

 

APPENDIX D:  Adjusted Net Income and Adjusted D-EPS

		For the Three Months Ended						For the Twelve Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Net income (A)		$         15,713		$         20,363		$           3,551		$      111,048		$         76,215
Impact of loss-earnback
Securities loss from loss-earnback		43,722		27,905		36,820		71,627		36,820
Less, tax impact		(10,141)		(6,472)		(8,660)		(16,613)		(8,660)
After-tax impact of loss-earnback		33,581		21,433		28,160		55,014		28,160
Adjusted net income (B)		$         49,294		$         41,796		$         31,711		$      166,062		$      104,375
Weighted average shares outstanding - diluted (C)		41,481,132		41,481,542		41,422,973		41,453,247		41,327,216
D-EPS (A/C)		$             0.38		$             0.49		$             0.09		$             2.68		$             1.84
Adjusted D-EPS (B/C)		$             1.19		$             1.01		$             0.77		$             4.01		$             2.53

 

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

		For the Three Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Net income (A)		$      15,713		$      20,363		$      38,566		$      36,406		$        3,551
After-tax impact of loss-earnback		33,581		21,433		—		—		28,160
Adjusted net income (B)		$      49,294		$      41,796		$      38,566		$      36,406		$      31,711
Average total assets (C)		$  12,716,139		$  12,640,016		$  12,458,372		$  12,226,810		$  12,243,771
ROA (A/C)		0.49 %		0.64 %		1.24 %		1.21 %		0.12 %
Adjusted ROA (B/C)		1.54 %		1.31 %		1.24 %		1.21 %		1.03 %

 

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

		For the Three Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Net income (A)		$      15,713		$      20,363		$      38,566		$      36,406		$        3,551
After-tax impact of loss-earnback		33,581		21,433		—		—		28,160
Adjusted net income (B)		$      49,294		$      41,796		$      38,566		$      36,406		$      31,711
Average common equity (C)		$ 1,627,976		$ 1,571,104		$ 1,530,550		$ 1,467,871		$ 1,466,181
ROCE (A/C)		3.83 %		5.14 %		10.11 %		10.06 %		0.96 %
Adjusted ROCE (B/C)		12.01 %		10.55 %		10.11 %		10.06 %		8.60 %

 

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

		For the Three Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Net Income		$      15,713		$      20,363		$      38,566		$      36,406		$        3,551
Intangible asset amortization, net of taxes		994		1,066		1,123		1,159		1,195
Tangible Net income  (A)		16,707		21,429		39,689		37,565		4,746
After-tax impact of loss-earnback		33,581		21,433		—		—		28,160
Adjusted tangible net income  (B)		$      50,288		$      42,862		$      39,689		$      37,565		$      32,906
Average common equity		$ 1,627,976		$ 1,571,104		$ 1,530,550		$ 1,467,871		$ 1,466,181
Less: Average goodwill and other intangibles, net of related taxes		(484,313)		(485,331)		(486,393)		(487,395)		(488,624)
Average TCE  (C)		$ 1,143,663		$ 1,085,773		$ 1,044,157		$    980,476		$    977,557
ROTCE (A/C)		5.80 %		7.83 %		15.25 %		15.54 %		1.93 %
Adjusted ROTCE (B/C)		17.45 %		15.66 %		15.25 %		15.54 %		13.39 %

 

APPENDIX H: Impact of Hurricane Helene

		For the Three Months Ended						For the Twelve Months Ended
($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Impact of Hurricane Helene
Provision for (benefit from) credit losses		$         (1,600)		$         (4,000)		$                —		$       (11,100)		$         13,000
Building repairs and maintenance		—		—		(24)		—		276
Other		—		—		(3)		—		93
Total		(1,600)		(4,000)		(27)		(11,100)		13,369
Less, tax impact		371		928		6		2,575		(3,096)
After-tax impact of Hurricane Helene		$         (1,229)		$         (3,072)		$              (21)		$         (8,525)		$         10,273
Weighted average shares outstanding - diluted		41,481,132		41,481,542		41,422,973		41,453,247		41,327,216
Impact of Hurricane Helene per diluted share		$             0.03		$             0.07		$                —		$             0.21		$           (0.25)

Supplemental information

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

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

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

		For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024
Interest income - increased by accretion of loan discount on acquired loans		$               1,298		$               1,584		$               2,195
Total interest income impact		1,298		1,584		2,195
Interest expense - increased by discount accretion on deposits		(62)		(77)		(145)
Interest expense - increased by discount accretion on borrowings		(161)		(197)		(195)
Total net interest expense impact		(223)		(274)		(340)
Total impact on net interest income		$               1,075		$               1,310		$               1,855

 

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SOURCE First Bancorp

FAQ

What did First Bancorp (FBNC) report for Q4 2025 net income and EPS?

First Bancorp reported Q4 2025 net income of $15.7M and $0.38 diluted EPS for the quarter ended December 31, 2025.

How did the $43.7M securities loss affect First Bancorp's Q4 2025 results (FBNC)?

The $43.7M securities loss reduced GAAP net income; adjusted Q4 net income excluding the loss was $49.3M (adjusted D‑EPS $1.19).

What was First Bancorp's loan growth and total loans at December 31, 2025 (FBNC)?

Total loans were $8.7B at 12/31/2025, representing 14.3% annualized loan growth in Q4 2025.

What was First Bancorp's net interest margin and net interest income in Q4 2025 (FBNC)?

Q4 2025 net interest income was $106.2M and NIM expanded to 3.58% for the quarter.

Did First Bancorp (FBNC) change capital structure in Q4 2025?

The company repaid $18M of subordinated debt in Q4 2025, which contributed to modest declines in some capital ratios.