First Bancorp Reports Second Quarter Results
First Bancorp (NASDAQ:FBNC) reported strong Q2 2025 financial results with net income of $38.6 million, or $0.93 diluted earnings per share, up from $36.4 million ($0.88/share) in Q1 2025 and $28.7 million ($0.70/share) in Q2 2024.
Key highlights include: Net interest margin expanded to 3.32% from 3.25% in Q1; loan growth of 6.07% annualized reaching $8.2 billion; and strong asset quality with nonperforming assets at just 0.28% of total assets. The bank maintained solid capital ratios with common equity tier 1 at 14.62% and increased its quarterly dividend to $0.23 per share.
Total deposits grew with noninterest-bearing deposits reaching $3.5 billion, representing 33% of total deposits. The bank's efficiency in managing expenses was evident with noninterest expenses of $59.0 million, only slightly up from previous quarters.
First Bancorp (NASDAQ:FBNC) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con un utile netto di 38,6 milioni di dollari, ovvero 0,93 dollari per azione diluita, in crescita rispetto ai 36,4 milioni di dollari (0,88 dollari per azione) del primo trimestre 2025 e ai 28,7 milioni di dollari (0,70 dollari per azione) del secondo trimestre 2024.
I punti salienti includono: margine di interesse netto aumentato al 3,32% rispetto al 3,25% del primo trimestre; crescita dei prestiti del 6,07% su base annuale che ha raggiunto gli 8,2 miliardi di dollari; e una solida qualità degli attivi con attivi non performanti pari solo allo 0,28% del totale degli attivi. La banca ha mantenuto solidi coefficienti patrimoniali con un common equity tier 1 al 14,62% e ha aumentato il dividendo trimestrale a 0,23 dollari per azione.
I depositi totali sono cresciuti con depositi senza interessi che hanno raggiunto i 3,5 miliardi di dollari, rappresentando il 33% dei depositi totali. L'efficienza nella gestione delle spese è stata evidente, con spese non interessi pari a 59,0 milioni di dollari, solo leggermente superiori rispetto ai trimestri precedenti.
First Bancorp (NASDAQ:FBNC) informó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 38,6 millones de dólares, o 0,93 dólares por acción diluida, aumentando desde 36,4 millones de dólares (0,88 dólares por acción) en el primer trimestre de 2025 y 28,7 millones de dólares (0,70 dólares por acción) en el segundo trimestre de 2024.
Los aspectos destacados incluyen: margen de interés neto expandido a 3,32% desde 3,25% en el primer trimestre; crecimiento de préstamos del 6,07% anualizado alcanzando los 8,2 mil millones de dólares; y una sólida calidad de activos con activos no rentables en solo 0,28% del total de activos. El banco mantuvo sólidos índices de capital con un common equity tier 1 de 14,62% y aumentó su dividendo trimestral a 0,23 dólares por acción.
Los depósitos totales crecieron con depósitos sin intereses alcanzando 3,5 mil millones de dólares, representando el 33% del total de depósitos. La eficiencia del banco en la gestión de gastos fue evidente con gastos no relacionados con intereses de 59,0 millones de dólares, solo ligeramente superiores a los trimestres anteriores.
First Bancorp (NASDAQ:FBNC)는 2025년 2분기 강력한 재무 실적을 보고했으며, 순이익은 3860만 달러, 희석 주당순이익은 0.93달러로 2025년 1분기의 3640만 달러(주당 0.88달러)와 2024년 2분기의 2870만 달러(주당 0.70달러)에서 증가했습니다.
주요 내용으로는: 순이자마진이 3.25%에서 3.32%로 확대되었고; 연환산 대출 성장률 6.07%로 82억 달러에 도달했으며; 총자산 대비 부실자산 비율이 단 0.28%로 자산 품질이 우수했습니다. 은행은 보통주자본비율이 14.62%로 견고한 자본 비율을 유지했고 분기 배당금을 주당 0.23달러로 인상했습니다.
총 예금은 비이자 예금이 35억 달러에 도달하며 전체 예금의 33%를 차지했습니다. 은행의 비용 관리 효율성도 나타나, 비이자 비용은 5900만 달러로 이전 분기 대비 약간 증가에 그쳤습니다.
First Bancorp (NASDAQ:FBNC) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un bénéfice net de 38,6 millions de dollars, soit 0,93 dollar par action diluée, en hausse par rapport à 36,4 millions de dollars (0,88 dollar/action) au premier trimestre 2025 et 28,7 millions de dollars (0,70 dollar/action) au deuxième trimestre 2024.
Les points clés incluent : une marge nette d'intérêt élargie à 3,32% contre 3,25% au premier trimestre ; une croissance annuelle des prêts de 6,07% atteignant 8,2 milliards de dollars ; et une qualité d'actifs solide avec des actifs non performants représentant seulement 0,28% du total des actifs. La banque a maintenu des ratios de capital solides avec un common equity tier 1 à 14,62% et a augmenté son dividende trimestriel à 0,23 dollar par action.
Les dépôts totaux ont augmenté, avec des dépôts sans intérêts atteignant 3,5 milliards de dollars, représentant 33% des dépôts totaux. L'efficacité de la banque dans la gestion des dépenses s'est manifestée par des charges hors intérêts de 59,0 millions de dollars, légèrement supérieures aux trimestres précédents.
First Bancorp (NASDAQ:FBNC) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettogewinn von 38,6 Millionen US-Dollar bzw. 0,93 US-Dollar verwässertem Gewinn je Aktie, gegenüber 36,4 Millionen US-Dollar (0,88 US-Dollar/Aktie) im ersten Quartal 2025 und 28,7 Millionen US-Dollar (0,70 US-Dollar/Aktie) im zweiten Quartal 2024.
Wichtige Highlights sind: Die Nettomarge stieg auf 3,32% von 3,25% im ersten Quartal; ein Kreditwachstum von 6,07% annualisiert auf 8,2 Milliarden US-Dollar; und eine starke Vermögensqualität mit notleidenden Vermögenswerten von nur 0,28% der Gesamtvermögenswerte. Die Bank hielt solide Kapitalquoten mit einer Common Equity Tier 1 von 14,62% und erhöhte ihre Quartalsdividende auf 0,23 US-Dollar je Aktie.
Die Gesamteinlagen stiegen, wobei nicht verzinste Einlagen 3,5 Milliarden US-Dollar erreichten und 33% der Gesamteinlagen ausmachten. Die Effizienz der Bank bei der Kostenkontrolle zeigte sich mit nicht verzinsten Aufwendungen von 59,0 Millionen US-Dollar, die nur geringfügig über den Vorquartalen lagen.
- None.
- Provision for credit losses increased to $2.2 million from $0.5 million year-over-year
- Noninterest expenses increased $1.1 million from previous quarter to $59.0 million
- Noninterest income decreased 1.8% year-over-year to $14.3 million
Insights
First Bancorp posted strong Q2 2025 results with improved margins, loan growth, and 32.6% YoY EPS growth amid effective cost control.
First Bancorp has delivered robust second quarter performance with diluted EPS of
The bank's success stems from three key factors: expanding net interest margin, disciplined expense management, and strategic balance sheet growth. Net interest margin improved to
Loan growth was particularly encouraging at
Credit quality remains excellent with annualized net charge-offs at just
Capital ratios continue to strengthen, with tangible common equity to tangible assets improving to
The bank has maintained excellent expense discipline with only a modest
First Bancorp's strategic securities purchases of
Second Quarter 2025 Financial Data | |||||
(Dollars in 000s, except per | Q2-2025 | Q1-2025 | Q2-2024 | ||
Summary Income Statement | |||||
Total interest income | $ 136,741 | $ 132,660 | $ 128,822 | ||
Total interest expense | 40,065 | 39,777 | 47,707 | ||
Net interest income | 96,676 | 92,883 | 81,115 | ||
Provision for credit losses | 2,212 | 1,116 | 541 | ||
Noninterest income | 14,341 | 12,902 | 14,601 | ||
Noninterest expenses | 58,983 | 57,893 | 58,291 | ||
Income tax expense | 11,256 | 10,370 | 8,172 | ||
Net income | |||||
Key Metrics | |||||
$ 0.93 | $ 0.88 | $ 0.70 | |||
Book value per share | 37.53 | 36.46 | 34.10 | ||
Tangible book value per | 25.82 | 24.69 | 22.19 | ||
Return on average assets | 1.24 % | 1.21 % | 0.96 % | ||
Return on average | 10.11 % | 10.06 % | 8.38 % | ||
Return on average tangible | 15.25 % | 15.54 % | 13.60 % | ||
NIM | 3.32 % | 3.25 % | 2.84 % | ||
NIM- T/E | 3.32 % | 3.27 % | 2.87 % | ||
Quarterly net charge-offs | 0.06 % | 0.17 % | 0.07 % | ||
Allowance for credit losses | 1.47 % | 1.49 % | 1.36 % | ||
Capital Ratios (1) | |||||
Tangible common equity to | 8.83 % | 8.55 % | 7.90 % | ||
Common equity tier I | 14.62 % | 14.52 % | 13.99 % | ||
Total risk-based capital | 16.87 % | 16.80 % | 16.24 % | ||
(1) | June 30, 2025 ratios are preliminary. |
Second Quarter 2025 Highlights
- Diluted earnings per share ("D-EPS") was
$0.93 $0.88 $0.70 - Total loan yield expanded to
5.53% , up 1 basis point from the linked quarter and 3 basis points from the like quarter. Total cost of funds contracted 3 basis points to1.48% for the quarter ended June 30, 2025 from1.51% for the linked quarter and from1.81% for the like quarter. - The yield on securities increased 13 basis points to
2.41% for the quarter ended June 30, 2025 from2.28% for the linked quarter. The Company purchased$127.0 million 5.16% during the second quarter. - Average core deposits were
$10.7 billion $140.4 million $147.0 million $21.3 million $30.7 million 1.43% , a decrease of 3 basis points from1.46% for the linked quarter and 29 basis points from the like quarter at1.72% . The Company continues to maintain a low level of wholesale funding with average borrowings of$92.2 million - We continue to focus on expense management. Noninterest expenses of
$59.0 million $1.1 million $0.7 million $0.7 million $0.4 million - Total loans were
$8.2 billion $122.6 million 6.07% annualized, for the quarter and growth of$155.8 million 1.93% , from June 30, 2024. - Noninterest-bearing demand deposits were
$3.5 billion 33% of total deposits at June 30, 2025. During the second quarter of 2025, customer deposits grew$85.6 million $65.8 million $60.0 million - The on-balance sheet liquidity ratio was
20.0% at June 30, 2025, an increase from19.8% for the linked quarter. Available off-balance sheet sources totaled$2.3 billion 36.1% .
The Company continued to enhance net interest income and net interest margin ("NIM"). The Company recorded net interest income of
First Bancorp also continued to maintain expense control with noninterest expenses of
Richard H.
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2025 was
The Company's NIM for the second quarter of 2025 was
For the Three Months Ended | ||||||
YIELD INFORMATION | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Yield on loans | 5.53 % | 5.52 % | 5.50 % | |||
Yield on securities | 2.41 % | 2.28 % | 1.72 % | |||
Yield on other earning assets | 4.63 % | 4.42 % | 4.71 % | |||
Yield on total interest-earning assets | 4.69 % | 4.65 % | 4.51 % | |||
Cost of interest-bearing deposits | 2.14 % | 2.14 % | 2.54 % | |||
Cost of borrowings | 7.22 % | 7.31 % | 7.09 % | |||
Cost of total interest-bearing liabilities | 2.20 % | 2.21 % | 2.65 % | |||
Total cost of funds | 1.48 % | 1.51 % | 1.81 % | |||
Cost of total deposits | 1.43 % | 1.46 % | 1.72 % | |||
Net interest margin (1) | 3.32 % | 3.25 % | 2.84 % | |||
Net interest margin - tax-equivalent (2) | 3.32 % | 3.27 % | 2.87 % | |||
Average prime rate | 7.50 % | 7.50 % | 8.50 % | |||
(1) Calculated by dividing annualized net interest income by average earning assets for the period. | ||||||
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense. |
See Appendix F regarding loan purchase discount accretion and its impact on the Company's NIM.
Provision for Credit Losses and Credit Quality
For the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, the Company recorded
Within the portions of Western North and
Asset quality remained strong with annualized net loan charge-offs of
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA ($ in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Nonperforming assets | ||||||
Nonaccrual loans | $ 34,625 | $ 29,081 | $ 33,102 | |||
Accruing loans > 90 days past due | — | — | — | |||
Total nonperforming loans | 34,625 | 29,081 | 33,102 | |||
Foreclosed real estate | 1,218 | 4,769 | 1,150 | |||
Total nonperforming assets | $ 35,843 | $ 33,850 | $ 34,252 | |||
Asset Quality Ratios | ||||||
Quarterly net charge-offs to average loans - annualized | 0.06 % | 0.17 % | 0.07 % | |||
Nonperforming loans to total loans | 0.42 % | 0.36 % | 0.54 % | |||
Nonperforming assets to total assets | 0.28 % | 0.27 % | 0.28 % | |||
Allowance for credit losses to total loans | 1.47 % | 1.49 % | 1.36 % |
Noninterest Income
Total noninterest income for the second quarter of 2025 was
Noninterest Expenses
Noninterest expenses amounted to
The
Income Taxes
Income tax expense totaled
Balance Sheet
Total assets at June 30, 2025 amounted to
Key period end balance sheet components are presented below.
BALANCES ($ in thousands) | June 30, | March 31, | June 30, | Change | Change | |||||
Total assets | 1.4 % | 4.5 % | ||||||||
Loans | 8,225,650 | 8,103,033 | 8,069,848 | 1.5 % | 1.9 % | |||||
Investment securities | 2,661,236 | 2,582,781 | 2,390,811 | 3.0 % | 11.3 % | |||||
Total cash and cash equivalents | 711,286 | 772,441 | 608,412 | (7.9) % | 16.9 % | |||||
Noninterest-bearing deposits | 3,542,626 | 3,476,786 | 3,339,678 | 1.9 % | 6.1 % | |||||
Interest-bearing deposits | 7,287,754 | 7,267,873 | 7,148,151 | 0.3 % | 2.0 % | |||||
Borrowings | 92,237 | 92,055 | 91,513 | 0.2 % | 0.8 % | |||||
Shareholders' equity | 1,556,180 | 1,508,176 | 1,404,342 | 3.2 % | 10.8 % |
Primarily the result of securities purchases and decreased unrealized losses on the available for sale securities portfolio during the second quarter of 2025, total investment securities increased to
Total loans amounted to
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Commercial and industrial | $ 911,227 | 11 % | $ 890,071 | 11 % | $ 863,366 | 11 % | ||||||
Construction, development & other land | 633,529 | 8 % | 644,439 | 8 % | 764,418 | 9 % | ||||||
Commercial real estate - owner occupied | 1,254,596 | 15 % | 1,233,732 | 15 % | 1,250,267 | 16 % | ||||||
Commercial real estate - non-owner | 2,758,629 | 34 % | 2,701,746 | 34 % | 2,561,803 | 32 % | ||||||
Multi-family real estate | 509,419 | 6 % | 512,958 | 6 % | 497,187 | 6 % | ||||||
Residential 1-4 family real estate | 1,731,397 | 21 % | 1,709,593 | 21 % | 1,729,050 | 21 % | ||||||
Home equity loans/lines of credit | 355,876 | 4 % | 341,240 | 4 % | 326,411 | 4 % | ||||||
Consumer loans | 70,137 | 1 % | 68,115 | 1 % | 76,638 | 1 % | ||||||
Loans, gross | 8,224,810 | 100 % | 8,101,894 | 100 % | 8,069,140 | 100 % | ||||||
Unamortized net deferred loan fees | 840 | 1,139 | 708 | |||||||||
Total loans | $ 8,225,650 | $ 8,103,033 | $ 8,069,848 | |||||||||
Total deposits were
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising
DEPOSIT PORTFOLIO | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Noninterest-bearing checking accounts | $ 3,542,626 | 33 % | $ 3,476,786 | 32 % | $ 3,339,678 | 32 % | ||||||
Interest-bearing checking accounts | 1,443,010 | 13 % | 1,448,377 | 14 % | 1,400,071 | 13 % | ||||||
Money market accounts | 4,446,485 | 41 % | 4,386,469 | 41 % | 4,150,429 | 40 % | ||||||
Savings accounts | 536,247 | 5 % | 539,632 | 5 % | 558,126 | 5 % | ||||||
Other time deposits | 514,865 | 5 % | 533,723 | 5 % | 601,212 | 6 % | ||||||
Time deposits > | 337,382 | 3 % | 349,990 | 3 % | 389,281 | 4 % | ||||||
Total customer deposits | 10,820,615 | 100 % | 10,734,977 | 100 % | 10,438,797 | 100 % | ||||||
Brokered deposits | 9,765 | — % | 9,682 | — % | 49,032 | — % | ||||||
Total deposits | 100 % | 100 % | 100 % | |||||||||
As of June 30, 2025 and March 31, 2025, estimated insured deposits totaled
Capital
The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at June 30, 2025 of
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
CAPITAL RATIOS | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Tangible common equity to tangible assets (non-GAAP) | 8.83 % | 8.55 % | 7.90 % | |||
Common equity tier I capital ratio | 14.62 % | 14.52 % | 13.99 % | |||
Tier I leverage ratio | 11.45 % | 11.41 % | 11.24 % | |||
Tier I risk-based capital ratio | 15.42 % | 15.34 % | 14.79 % | |||
Total risk-based capital ratio | 16.87 % | 16.80 % | 16.24 % |
Liquidity
Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities and other marketable assets) and off-balance sheet (readily available lines of credit and other funding sources). The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future.
The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at June 30, 2025 was
About First Bancorp
First Bancorp is a bank holding company headquartered in
Please visit our website at www.LocalFirstBank.com for more information.
First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."
Caution about Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
Non-GAAP Measures
In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP"). Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance. Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted D-EPS.
First Bancorp and Subsidiaries | ||||||||||
Financial Summary | ||||||||||
CONSOLIDATED INCOME STATEMENT | ||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||
($ in thousands, except per share data - unaudited) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||
Interest income | ||||||||||
Interest and fees on loans | $ 112,931 | $ 110,533 | $ 110,472 | $ 223,464 | $ 220,270 | |||||
Interest on investment securities: | ||||||||||
Taxable interest income | 16,857 | 15,524 | 11,291 | 32,381 | 24,019 | |||||
Tax-exempt interest income | 1,116 | 1,116 | 1,117 | 2,232 | 2,234 | |||||
Other, principally overnight investments | 5,837 | 5,487 | 5,942 | 11,324 | 8,913 | |||||
Total interest income | 136,741 | 132,660 | 128,822 | 269,401 | 255,436 | |||||
Interest expense | ||||||||||
Interest on deposits | 38,405 | 38,119 | 44,744 | 76,524 | 83,879 | |||||
Interest on borrowings | 1,660 | 1,658 | 2,963 | 3,318 | 11,168 | |||||
Total interest expense | 40,065 | 39,777 | 47,707 | 79,842 | 95,047 | |||||
Net interest income | 96,676 | 92,883 | 81,115 | 189,559 | 160,389 | |||||
Provision for credit losses | 2,212 | 1,116 | 541 | 3,328 | 1,741 | |||||
Net interest income after provision for credit losses | 94,464 | 91,767 | 80,574 | 186,231 | 158,648 | |||||
Noninterest income | ||||||||||
Service charges on deposit accounts | 3,976 | 3,767 | 4,139 | 7,743 | 8,007 | |||||
Other service charges and fees | 6,595 | 5,883 | 5,314 | 12,478 | 10,884 | |||||
Presold mortgage loan fees and gains on sale | 315 | 450 | 588 | 765 | 926 | |||||
Commissions from sales of financial products | 1,388 | 1,408 | 1,377 | 2,796 | 2,697 | |||||
SBA loan sale gains | 151 | 52 | 1,336 | 203 | 2,231 | |||||
Bank-owned life insurance income | 1,221 | 1,228 | 1,179 | 2,449 | 2,343 | |||||
Securities losses, net | — | — | (186) | — | (1,161) | |||||
Other Income, net | 695 | 114 | 854 | 809 | 1,570 | |||||
Total noninterest income | 14,341 | 12,902 | 14,601 | 27,243 | 27,497 | |||||
Noninterest expenses | ||||||||||
Salaries, incentives and commissions expense | 29,005 | 28,661 | 27,809 | 57,666 | 55,451 | |||||
Employee benefit expense | 6,187 | 6,095 | 6,703 | 12,282 | 12,972 | |||||
Total personnel expense | 35,192 | 34,756 | 34,512 | 69,948 | 68,423 | |||||
Occupancy and equipment expense | 5,195 | 5,192 | 4,877 | 10,387 | 10,952 | |||||
Intangibles amortization expense | 1,468 | 1,516 | 1,669 | 2,984 | 3,428 | |||||
Other operating expenses | 17,128 | 16,429 | 17,233 | 33,557 | 34,675 | |||||
Total noninterest expenses | 58,983 | 57,893 | 58,291 | 116,876 | 117,478 | |||||
Income before income taxes | 49,822 | 46,776 | 36,884 | 96,598 | 68,667 | |||||
Income tax expense | 11,256 | 10,370 | 8,172 | 21,626 | 14,683 | |||||
Net income | $ 38,566 | $ 36,406 | $ 28,712 | $ 74,972 | $ 53,984 | |||||
Earnings per common share: | ||||||||||
Basic | $ 0.93 | $ 0.88 | $ 0.70 | $ 1.81 | $ 1.31 | |||||
Diluted | 0.93 | 0.88 | 0.70 | 1.81 | 1.31 | |||||
First Bancorp and Subsidiaries | ||||||
Financial Summary | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
($ in thousands - unaudited) | June 30, | March 31, | June 30, | |||
Assets | ||||||
Cash and due from banks, noninterest-bearing | $ 139,486 | $ 149,781 | $ 90,468 | |||
Due from banks, interest-bearing | 571,800 | 622,660 | 517,944 | |||
Total cash and cash equivalents | 711,286 | 772,441 | 608,412 | |||
Securities available for sale | 2,144,831 | 2,064,516 | 1,867,211 | |||
Securities held to maturity | 516,405 | 518,265 | 523,600 | |||
Presold mortgages and SBA loans held for sale | 8,928 | 5,166 | 7,247 | |||
Loans | 8,225,650 | 8,103,033 | 8,069,848 | |||
Allowance for credit losses on loans | (120,545) | (120,631) | (110,058) | |||
Net loans | 8,105,105 | 7,982,402 | 7,959,790 | |||
Premises and equipment, net | 141,661 | 141,954 | 147,110 | |||
Accrued interest receivable | 36,681 | 35,452 | 35,605 | |||
Goodwill | 478,750 | 478,750 | 478,750 | |||
Other intangible assets, net | 19,920 | 21,388 | 26,080 | |||
Bank-owned life insurance | 190,817 | 189,597 | 186,031 | |||
Other assets | 253,881 | 226,314 | 220,969 | |||
Total assets | $ 12,608,265 | $ 12,436,245 | $ 12,060,805 | |||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing deposits | $ 3,542,626 | $ 3,476,786 | $ 3,339,678 | |||
Interest-bearing deposits | 7,287,754 | 7,267,873 | 7,148,151 | |||
Total deposits | 10,830,380 | 10,744,659 | 10,487,829 | |||
Borrowings | 92,237 | 92,055 | 91,513 | |||
Accrued interest payable | 4,340 | 4,935 | 5,728 | |||
Other liabilities | 125,128 | 86,420 | 71,393 | |||
Total liabilities | 11,052,085 | 10,928,069 | 10,656,463 | |||
Shareholders' equity | ||||||
Common stock | 973,041 | 971,174 | 967,239 | |||
Retained earnings | 812,657 | 783,630 | 752,294 | |||
Stock in rabbi trust assumed in acquisition | (869) | (1,166) | (1,139) | |||
Rabbi trust obligation | 869 | 1,166 | 1,139 | |||
Accumulated other comprehensive loss | (229,518) | (246,628) | (315,191) | |||
Total shareholders' equity | 1,556,180 | 1,508,176 | 1,404,342 | |||
Total liabilities and shareholders' equity | $ 12,608,265 | $ 12,436,245 | $ 12,060,805 | |||
First Bancorp and Subsidiaries | ||||||||||
Financial Summary | ||||||||||
TREND INFORMATION | ||||||||||
For the Three Months Ended | ||||||||||
June 30, | March 31, | December | September | June 30, | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||
Return on average assets (1) | 1.24 % | 1.21 % | 0.12 % | 0.61 % | 0.96 % | |||||
Return on average common equity (2) | 10.11 % | 10.06 % | 0.96 % | 5.14 % | 8.38 % | |||||
Return on average tangible common equity (3) | 15.25 % | 15.54 % | 1.93 % | 8.30 % | 13.60 % | |||||
COMMON SHARE DATA | ||||||||||
Cash dividends declared - common | $ 0.23 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | |||||
Book value per common share | $ 37.53 | $ 36.46 | $ 34.96 | $ 35.74 | $ 34.10 | |||||
Tangible book value per share (4) | $ 25.82 | $ 24.69 | $ 23.17 | $ 23.91 | $ 22.19 | |||||
Common shares outstanding at end of period | 41,468,098 | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | |||||
Weighted average shares outstanding - diluted | 41,441,393 | 41,406,525 | 41,422,973 | 41,366,743 | 41,262,091 | |||||
CAPITAL INFORMATION (preliminary for current quarter) | ||||||||||
Tangible common equity to tangible assets (5) | 8.83 % | 8.55 % | 8.22 % | 8.47 % | 7.90 % | |||||
Common equity tier I capital ratio | 14.62 % | 14.52 % | 14.35 % | 14.37 % | 13.99 % | |||||
Total risk-based capital ratio | 16.87 % | 16.80 % | 16.63 % | 16.65 % | 16.24 % | |||||
(1) Calculated by dividing annualized net income by average assets. | ||||||||||
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for the components of the calculation. | ||||||||||
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for the components of the calculation and the reconciliation of average common equity to average TCE. | ||||||||||
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation. | ||||||||||
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation. |
For the Three Months Ended | ||||||||||
INCOME STATEMENT ($ in thousands except per share data) | June 30, | March 31, | December | September | June 30, | |||||
Net interest income | $ 96,676 | $ 92,883 | $ 88,841 | $ 83,043 | $ 81,115 | |||||
Provision for credit losses | 2,212 | 1,116 | 507 | 14,200 | 541 | |||||
Noninterest income | 14,341 | 12,902 | (23,177) | 13,579 | 14,601 | |||||
Noninterest expense | 58,983 | 57,893 | 58,279 | 59,850 | 58,291 | |||||
Income before income taxes | 49,822 | 46,776 | 6,878 | 22,572 | 36,884 | |||||
Income tax expense | 11,256 | 10,370 | 3,327 | 3,892 | 8,172 | |||||
Net income | 38,566 | 36,406 | 3,551 | 18,680 | 28,712 | |||||
Earnings per common share - diluted | $ 0.93 | $ 0.88 | $ 0.08 | $ 0.45 | $ 0.70 | |||||
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming the expected tax rate and is reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries | |||||||||||||||||
Financial Summary | |||||||||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||
($ in thousands) | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | ||||||||
Assets | |||||||||||||||||
Loans (1) (2) | $ 8,187,662 | $ 112,931 | 5.53 % | $ 8,107,394 | $ 110,533 | 5.52 % | $ 8,070,815 | $ 110,472 | 5.50 % | ||||||||
Taxable securities | 2,697,338 | 16,857 | 2.50 % | 2,629,066 | 15,524 | 2.36 % | 2,591,617 | 11,291 | 1.74 % | ||||||||
Non-taxable securities | 287,848 | 1,116 | 1.55 % | 288,905 | 1,116 | 1.55 % | 292,045 | 1,117 | 1.53 % | ||||||||
Short-term investments, primarily interest-bearing cash | 505,912 | 5,837 | 4.63 % | 503,377 | 5,487 | 4.42 % | 507,635 | 5,942 | 4.71 % | ||||||||
Total interest-earning assets | 11,678,760 | 136,741 | 4.69 % | 11,528,742 | 132,660 | 4.65 % | 11,462,112 | 128,822 | 4.51 % | ||||||||
Cash and due from banks | 153,074 | 133,756 | 84,674 | ||||||||||||||
Premises and equipment | 142,090 | 143,064 | 149,643 | ||||||||||||||
Other assets | 484,448 | 421,248 | 358,852 | ||||||||||||||
Total assets | $ 12,458,372 | $ 12,226,810 | $ 12,055,281 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,434,559 | $ 2,426 | 0.68 % | $ 1,431,556 | $ 2,497 | 0.71 % | $ 1,397,367 | $ 2,424 | 0.70 % | ||||||||
Money market deposits | 4,358,877 | 29,947 | 2.76 % | 4,337,560 | 29,180 | 2.73 % | 4,004,175 | 32,411 | 3.26 % | ||||||||
Savings deposits | 538,843 | 252 | 0.19 % | 539,104 | 240 | 0.18 % | 570,283 | 317 | 0.22 % | ||||||||
Other time deposits | 534,242 | 3,088 | 2.32 % | 558,648 | 3,353 | 2.43 % | 738,290 | 6,053 | 3.30 % | ||||||||
Time deposits > | 345,916 | 2,692 | 3.12 % | 352,174 | 2,849 | 3.28 % | 371,471 | 3,539 | 3.83 % | ||||||||
Total interest-bearing deposits | 7,212,437 | 38,405 | 2.14 % | 7,219,042 | 38,119 | 2.14 % | 7,081,586 | 44,744 | 2.54 % | ||||||||
Borrowings | 92,199 | 1,660 | 7.22 % | 91,960 | 1,658 | 7.31 % | 167,976 | 2,963 | 7.09 % | ||||||||
Total interest-bearing liabilities | 7,304,636 | 40,065 | 2.20 % | 7,311,002 | 39,777 | 2.21 % | 7,249,562 | 47,707 | 2.65 % | ||||||||
Noninterest-bearing checking | 3,522,117 | 3,375,098 | 3,350,723 | ||||||||||||||
Other liabilities | 101,069 | 72,839 | 76,713 | ||||||||||||||
Shareholders' equity | 1,530,550 | 1,467,871 | 1,378,283 | ||||||||||||||
Total liabilities and shareholders' equity | $ 12,458,372 | $ 12,226,810 | $ 12,055,281 | ||||||||||||||
Net yield on interest-earning assets and net interest income | $ 96,676 | 3.32 % | $ 92,883 | 3.25 % | $ 81,115 | 2.84 % | |||||||||||
Net yield on interest-earning assets and net interest income – | $ 96,887 | 3.32 % | $ 93,320 | 3.27 % | $ 81,847 | 2.87 % | |||||||||||
Interest rate spread | 2.49 % | 2.44 % | 1.86 % | ||||||||||||||
Average prime rate | 7.50 % | 7.50 % | 8.50 % | ||||||||||||||
(1) | Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of |
(2) | Includes accretion of discount on acquired loans of |
(3) | Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries | |||||||||||||||||
Financial Summary | |||||||||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE | |||||||||||||||||
For the Six Months Ended | |||||||||||||||||
June 30, 2025 | June 30, 2024 | ||||||||||||||||
($ in thousands) | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | |||||||||||
Assets | |||||||||||||||||
Loans (1) (2) | $ 8,147,750 | $ 223,464 | 5.52 % | $ 8,087,101 | $ 220,270 | 5.47 % | |||||||||||
Taxable securities | 2,663,390 | 32,381 | 2.43 % | 2,703,441 | 24,019 | 1.78 % | |||||||||||
Non-taxable securities | 288,373 | 2,232 | 1.55 % | 292,622 | 2,234 | 1.53 % | |||||||||||
Short-term investments, primarily interest-bearing cash | 504,652 | 11,324 | 4.52 % | 392,790 | 8,913 | 4.56 % | |||||||||||
Total interest-earning assets | 11,604,165 | 269,401 | 4.67 % | 11,475,954 | 255,436 | 4.47 % | |||||||||||
Cash and due from banks | 143,469 | 87,754 | |||||||||||||||
Premises and equipment | 142,574 | 150,401 | |||||||||||||||
Other assets | 453,023 | 369,132 | |||||||||||||||
Total assets | $ 12,343,231 | $ 12,083,241 | |||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,433,066 | $ 4,923 | 0.69 % | $ 1,400,425 | $ 4,784 | 0.69 % | |||||||||||
Money market deposits | 4,348,277 | 59,126 | 2.74 % | 3,854,453 | 60,223 | 3.14 % | |||||||||||
Savings deposits | 538,973 | 493 | 0.18 % | 581,339 | 625 | 0.22 % | |||||||||||
Other time deposits | 546,377 | 6,441 | 2.38 % | 723,904 | 11,509 | 3.20 % | |||||||||||
Time deposits > | 349,028 | 5,541 | 3.20 % | 363,640 | 6,738 | 3.73 % | |||||||||||
Total interest-bearing deposits | 7,215,721 | 76,524 | 2.14 % | 6,923,761 | 83,879 | 2.44 % | |||||||||||
Borrowings | 92,081 | 3,318 | 7.27 % | 372,987 | 11,168 | 6.02 % | |||||||||||
Total interest-bearing liabilities | 7,307,802 | 79,842 | 2.20 % | 7,296,748 | 95,047 | 2.62 % | |||||||||||
Noninterest-bearing checking | 3,449,013 | 3,331,811 | |||||||||||||||
Other liabilities | 87,032 | 77,795 | |||||||||||||||
Shareholders' equity | 1,499,384 | 1,376,887 | |||||||||||||||
Total liabilities and shareholders' equity | $ 12,343,231 | $ 12,083,241 | |||||||||||||||
Net yield on interest-earning assets and net interest income | $ 189,559 | 3.29 % | $ 160,389 | 2.81 % | |||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ 190,207 | 3.30 % | $ 161,852 | 2.83 % | |||||||||||||
Interest rate spread | 2.47 % | 1.85 % | |||||||||||||||
Average prime rate | 7.50 % | 8.50 % | |||||||||||||||
(1) | Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of |
(2) | Includes accretion of discount on acquired loans of |
(3) | Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
Reconciliation of non-GAAP measures | ||||||||||
APPENDIX A: Calculation of Return on TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | June 30, | March 31, | December | September | June 30, | |||||
Net Income | $ 38,566 | $ 36,406 | $ 3,551 | $ 18,680 | $ 28,712 | |||||
Intangible asset amortization, net of taxes | 1,123 | 1,159 | 1,195 | 1,240 | 1,283 | |||||
Tangible Net income | $ 39,689 | $ 37,565 | $ 4,746 | $ 19,920 | $ 29,995 | |||||
Average common equity | ||||||||||
Less: Average goodwill and other intangibles, net of | (486,393) | (487,395) | (488,624) | (489,987) | (491,318) | |||||
Average tangible common equity | $ 980,476 | $ 977,557 | $ 955,042 | $ 886,966 | ||||||
Return on average common equity | 10.11 % | 10.06 % | 0.96 % | 5.14 % | 8.38 % | |||||
Return on average tangible common equity | 15.25 % | 15.54 % | 1.93 % | 8.30 % | 13.60 % | |||||
APPENDIX B: Reconciliation of Common Equity to TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | June 30, | March 31, | December | September | June 30, | |||||
Total shareholders' common equity | $ 1,556,180 | $ 1,508,176 | $ 1,445,611 | $ 1,477,525 | $ 1,404,342 | |||||
Less: Goodwill and other intangibles, net of related | (485,657) | (486,749) | (487,660) | (489,139) | (490,439) | |||||
Tangible common equity | $ 1,070,523 | $ 1,021,427 | $ 957,951 | $ 988,386 | $ 913,903 | |||||
APPENDIX C: Tangible Book Value Per Share | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands except per share data) | June 30, | March 31, | December | September | June 30, | |||||
Tangible common equity (Appendix B) | $ 1,070,523 | $ 1,021,427 | $ 957,951 | $ 988,386 | $ 913,903 | |||||
Common shares outstanding | 41,468,098 | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | |||||
Tangible book value per common share | $ 25.82 | $ 24.69 | $ 23.17 | $ 23.91 | $ 22.19 | |||||
APPENDIX D: TCE Ratio | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | June 30, | March 31, | December | September | June 30, | |||||
Tangible common equity (Appendix B) | $ 957,951 | $ 988,386 | $ 913,903 | |||||||
Total assets | 12,608,265 | 12,436,245 | 12,147,694 | 12,153,430 | 12,060,805 | |||||
Less: Goodwill and other intangibles, net of related | (485,657) | (486,749) | (487,660) | (489,139) | (490,439) | |||||
Tangible assets ("TA") | $ 12,122,608 | $ 11,949,496 | $ 11,660,034 | $ 11,664,291 | $ 11,570,366 | |||||
TCE to TA ratio | 8.83 % | 8.55 % | 8.22 % | 8.47 % | 7.90 % | |||||
Reconciliation of non-GAAP measures, continued | ||||||
APPENDIX E: Adjusted D-EPS | ||||||
For the Three Months Ended | ||||||
($ in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Net income | $ 38,566 | $ 36,406 | $ 28,712 | |||
Impact of Hurricane Helene | ||||||
Provision for (benefit from) credit losses | (3,500) | (2,000) | — | |||
Total | (3,500) | (2,000) | — | |||
Less, tax impact | 812 | 464 | — | |||
After-tax impact of Hurricane Helene | (2,688) | (1,536) | — | |||
Adjusted net income | $ 35,878 | $ 34,870 | $ 28,712 | |||
Weighted average shares outstanding - diluted | 41,441,393 | 41,406,525 | 41,262,091 | |||
D-EPS | $ 0.93 | $ 0.88 | $ 0.70 | |||
Adjusted D-EPS | $ 0.87 | $ 0.84 | $ 0.70 | |||
Supplemental information
APPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the second quarter of 2025 was loan purchase accounting discount accretion of
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended | ||||||
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Interest income - increased by accretion of loan discount on acquired loans | $ 1,457 | $ 1,789 | $ 2,303 | |||
Total interest income impact | 1,457 | 1,789 | 2,303 | |||
Interest expense - increased by discount accretion on deposits | (102) | (103) | (224) | |||
Interest expense - increased by discount accretion on borrowings | (194) | (191) | (190) | |||
Total net interest expense impact | (296) | (294) | (414) | |||
Total impact on net interest income | $ 1,161 | $ 1,495 | $ 1,889 | |||
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SOURCE First Bancorp
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