First Bancorp Reports Second Quarter Results

Rhea-AI Summary

First Bancorp (NASDAQ: FBNC) reported unaudited Q2 2026 net income of $50.5 million, or $1.22 diluted EPS, up from $46.7 million ($1.13) in Q1 2026 and $38.6 million ($0.93) in Q2 2025. Net interest income rose to $111.3 million, with net interest margin expanding to 3.71% from 3.67% and 3.32% in the linked and like quarters, respectively.

Total assets reached a record $13.0 billion, loans grew to $9.0 billion (9.3% year-over-year), and average core deposits were $11.0 billion. Credit metrics remained solid, with annualized net charge-offs of 0.04% and an allowance for credit losses of 1.39% of loans. Noninterest income increased to $16.0 million, while noninterest expenses rose to $62.8 million, keeping the efficiency ratio near 49%.

Capital ratios stayed strong, including a 9.83% tangible common equity to tangible assets ratio. According to First Bancorp, it agreed on July 14, 2026 to acquire First Carolina Bancshares in a 75% stock and 25% cash deal, adding a bank with $831 million in assets, subject to regulatory and shareholder approvals and expected to close in late 2026 or early 2027.

Positive

• Diluted EPS $1.22 vs. $1.13 QoQ and $0.93 YoY
• Net interest income $111.3M, up 3.9% QoQ and 15.1% YoY
• Net interest margin expanded to 3.71% from 3.67% and 3.32%
• Loans $9.0B, up 2.2% QoQ and 9.3% YoY
• Annualized net charge-offs only 0.04% with ACL at 1.39% of loans
• Acquisition of First Carolina adds bank with $831M assets and $714M deposits

Negative

• Noninterest expenses rose to $62.8M, up 4.2% QoQ and $3.8M YoY
• Cost of total deposits increased 3 bps QoQ to 1.31%
• Unrealized AFS securities losses $204.5M, up from $197.7M QoQ
• Nonperforming assets ratio increased to 0.34% from 0.32% and 0.28%

News Explained

As of June 30, 2026, reported cash was $550,332 thousand while unrealized available-for-sale securities losses were $204.5 million.

First Bancorp has reported unaudited second-quarter 2026 results, updating its June 30 balance sheet: loans and shareholders’ equity were higher than a year earlier, while cash and equivalents were lower than in both comparison periods.

Cash and equivalents were $550,332 thousand at June 30, down from $597,991 thousand at March 31 and $711,286 thousand a year earlier; unrealized losses on available-for-sale securities were $204.5 million.

Credit indicators were mixed on the reported comparisons: annualized second-quarter net charge-offs were 0.04% and allowance coverage was 1.39% of loans, while nonperforming assets rose to $44.9 million, or 0.34% of total assets, from 0.28% a year earlier.

Market Context

The tag-specific record averaged a 1.99% move across five earnings events, with two negative reactio...

Analysis

The tag-specific record averaged a 1.99% move across five earnings events, with two negative reactions despite operational progress. That comparison frames the current results alongside credit-quality risk and recent insider activity recorded as Net Selling.

Key Figures

Net income: $50.5 million Diluted EPS: $1.22 Net interest margin: 3.71% +5 more

8 metrics

Net income $50.5 million Second quarter 2026; compared with $46.7 million linked quarter and $38.6 million like quarter

Diluted EPS $1.22 Second quarter 2026; compared with $1.13 linked quarter and $0.93 like quarter

Net interest margin 3.71% Second quarter 2026; compared with 3.67% linked quarter and 3.32% like quarter

Net interest income $111.3 million Second quarter 2026; compared with $107.1 million linked quarter and $96.7 million like quarter

Total loans $9.0 billion At June 30, 2026; increase of $194.9 million from March 31, 2026

Total assets $13.0 billion At June 30, 2026; highest level in First Bancorp's history

Nonperforming assets $44.9 million At June 30, 2026; 0.34% of total assets

Acquisition consideration 75% stock and 25% cash First Carolina Bancshares transaction

Previous Earnings Reports

5 past events · Latest: Apr 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	First-quarter earnings	Positive	+3.0%	Net income, EPS, margin, efficiency, and loan metrics improved year over year.
Oct 22	Third-quarter earnings	Negative	-1.9%	Securities loss reduced reported earnings despite stronger operating metrics and loan growth.
Jul 23	Second-quarter earnings	Positive	+5.0%	Net income, margin, loans, asset quality, and capital ratios showed improvement.
Apr 23	First-quarter earnings	Positive	+4.7%	Net income and margin increased while expenses and credit quality remained controlled.
Jan 29	Fourth-quarter earnings	Negative	-0.8%	Reported earnings declined because of Hurricane Helene and securities restructuring impacts.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

FBNC's earnings reactions were generally positive, with three aligned gains and two divergent declines across the tag-specific history.

Key Terms

net interest margin, nonperforming assets, net charge-offs, tangible common equity

4 terms

net interest margin financial

"The net interest margin was 3.71% for the quarter ended June 30, 2026"

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.

nonperforming assets financial

"Total nonperforming assets ("NPAs") totaled $44.9 million"

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.

net charge-offs financial

"The provision for the second quarter of 2026 was driven by net charge-offs"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

tangible common equity financial

"Tangible common equity to tangible assets"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Second Quarter 2026 Financial Data
(Dollars in 000s, except per share data)	Q2-2026		Q1-2026		Q2-2025
Summary Income Statement
Total interest income	$           148,315		$           142,390		$           136,731
Total interest expense	37,049		35,274		40,065
Net interest income	111,266		107,116		96,666
Provision for credit losses	1,169		3,083		2,212
Noninterest income	16,034		15,178		14,292
Noninterest expenses	62,761		60,218		58,924
Income tax expense	12,851		12,334		11,256
Net income	$             50,519		$             46,659		$             38,566
Key Metrics
Diluted EPS	$                 1.22		$                 1.13		$                 0.93
Book value per share	41.49		40.68		37.53
Tangible book value per share	29.84		29.01		25.82
ROA	1.56 %		1.48 %		1.24 %
ROCE	11.89 %		11.22 %		10.11 %
ROTCE	16.88 %		16.05 %		15.25 %
NIM	3.71 %		3.67 %		3.32 %
NIM- T/E	3.73 %		3.69 %		3.32 %
Efficiency ratio	49.12 %		49.05 %		53.00 %
Quarterly NCO ratio	0.04 %		0.06 %		0.06 %
ACL ratio	1.39 %		1.42 %		1.47 %
Capital Ratios (1)
Tangible common equity to tangible assets	9.83 %		9.63 %		8.83 %
Common equity tier I capital ratio	14.09 %		14.13 %		14.64 %
Total risk-based capital ratio	16.06 %		16.12 %		16.90 %
(1) June 30, 2026 ratios are preliminary.

Second Quarter 2026 Highlights

• D-EPS was $1.22 per share for the second quarter of 2026 compared to $1.13 for the linked quarter and $0.93 for the like quarter. 
• The net interest margin was 3.71% for the quarter ended June 30, 2026, an expansion of 0.04% from the linked quarter and 0.39% from the like quarter.
• The efficiency ratio for the quarter ended June 30, 2026 was 49.12%, compared to 49.05% for the linked quarter and 53.00% for the like quarter.
• Total assets exceeded $13 billion at June 30, 2026, the highest level in First Bancorp's history.
• Total loans were $9.0 billion at June 30, 2026, representing an increase of $194.9 million, or 8.9% annualized.
• Total loan yield was 5.67%, up 10 basis points from the linked quarter and 14 basis points from the like quarter. 
• The yield on securities decreased 3 basis points to 2.71% from 2.74% for the linked quarter. 
• Total cost of funds increased 3 basis points to 1.34% for the quarter ended June 30, 2026 from 1.31% for the linked quarter and decreased 14 basis points from the like quarter.
• Average core deposits were $11.0 billion, an increase of $181.0 million for the linked quarter and $268.1 million from the like quarter.  Total cost of deposits was 1.31%, an increase of 3 basis points for the linked quarter and a decrease of 12 basis points from the like quarter. 
• Noninterest expenses of $62.8 million represented a $2.5 million increase from the linked quarter and a $3.8 million increase from the like quarter.  The linked quarter increase was driven by a $2.0 million increase in Total personnel expense.
• Noninterest-bearing demand deposits were $3.6 billion, representing 32% of total deposits at June 30, 2026.  During the second quarter of 2026, period end customer deposits grew by 2.6% annualized.
• The loan-to-deposit ratio was 81.1% as of June 30, 2026.
• On July 14, 2026, First Bancorp announced its pending acquisition of First Carolina Bancshares Corporation, scheduled to close in late 2026 or early 2027.

SOUTHERN PINES, N.C., July 22, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today.  The Company reported net income of $50.5 million, or $1.22 diluted earnings per share ("D-EPS"), for the three months ended June 30, 2026 compared to $46.7 million, or $1.13 D-EPS, for the three months ended March 31, 2026 ("linked quarter") and $38.6 million, or $0.93 D-EPS, for the second quarter of 2025 ("like quarter").

On July 14, 2026, the Company announced an agreement to acquire First Carolina Bancshares Corporation ("First Carolina"), and its subsidiary, Carolina Bank & Trust Company ("Carolina Bank") headquartered in Florence, South Carolina, in a 75% stock and 25% cash transaction.  This transaction is subject to regulatory approvals and approval of First Carolina's shareholders, and is expected to close in the late fourth quarter of 2026 or early first quarter of 2027. Carolina Bank operates 14 branches throughout the Pee Dee region of South Carolina and had approximately $831 million in total assets, $596 million in loans, and $714 million in deposits at June 30, 2026.

The Company continued to enhance net interest income and net interest margin ("NIM") during the second quarter of 2026. The Company recorded net interest income of $111.3 million for the current quarter, compared to $107.1 million for the linked quarter and $96.7 million for the like quarter. NIM for the second quarter of 2026 expanded to 3.71% from 3.67% for the linked quarter and 3.32% for the like quarter. 

Noninterest expenses were $62.8 million for the second quarter of 2026, up from $60.2 million for the linked quarter, and $58.9 million for the like quarter.  The efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp continued to build on its positive start to 2026 with strong second quarter financial results driven by continued margin expansion, prudent balance sheet execution, high quality loans and a controlled efficiency ratio.  Earnings continue to benefit from the repositioning of lower-yielding assets into higher-yielding opportunities, while our liquidity position, capital levels, and credit quality remain strong.  We are pleased with our performance through the first half of the year and remain confident in our ability to sustain positive momentum and deliver continued success in 2026.  We are excited about the acquisition of First Carolina which brings talented bankers and will help us accelerate our South Carolina growth expansion."

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2026 was $111.3 million, an increase of 3.9% from the linked quarter of $107.1 million and an increase of 15.1% from the like quarter of $96.7 million.  The increase in net interest income from the linked and like quarters resulted from additional loan volume and increasing loan yield through originations as well as one additional earning day compared to the linked quarter.  The increase from the like quarter also resulted from our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025.

The Company's NIM for the second quarter of 2026 was 3.71%, an increase of 4 basis points from the linked quarter and 39 basis points from the like quarter. 

The linked quarter expansion of NIM was driven a $114.9 million increase in average loans along with a 10 basis points expansion in loan yield.  Additionally, short-term investments contributed an additional $1.5 million from increased balances partially reduced by lower yields. Offsetting these increases, the cost of interest bearing deposits increased 5 basis points on growth of $98.8 million in average balances.  Driving these increases, the average balance of money market deposits increased $99.6 million while the cost of those deposits increased 8 basis points. 

The like quarter expansion of NIM was driven by growth of $708.9 million in average loans, coupled with a 14 basis point yield increase as well as the cost of interest bearing deposits decreasing 20 basis points.  The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.1% of average interest-earning assets to 74.1% in the current quarter, while securities contracted from 25.6% of average interest-earning assets to 22.3% and short-term investments contracted from 4.3% of average interest-bearing assets to 3.7%.

		For the Three Months Ended
YIELD INFORMATION		June 30, 2026		March 31, 2026		June 30, 2025
Yield on loans		5.67 %		5.57 %		5.53 %
Yield on securities		2.71 %		2.74 %		2.41 %
Yield on other earning assets		3.99 %		4.36 %		4.63 %
Yield on total interest-earning assets		4.95 %		4.88 %		4.69 %
Cost of interest-bearing deposits		1.94 %		1.89 %		2.14 %
Cost of borrowings		6.64 %		6.68 %		7.22 %
Cost of total interest-bearing liabilities		1.99 %		1.94 %		2.20 %
Total cost of funds		1.34 %		1.31 %		1.48 %
Cost of total deposits		1.31 %		1.28 %		1.43 %
Net interest margin (1)		3.71 %		3.67 %		3.32 %
Net interest margin - tax-equivalent (2)		3.73 %		3.69 %		3.32 %
Average prime rate		6.75 %		6.75 %		7.50 %

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

See Appendix H 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, 2026, March 31, 2026 and June 30, 2025, the Company recorded $1.2 million, $3.1 million and $2.2 million in provision for credit losses, respectively. The provision for the second quarter of 2026 was driven by net charge-offs of $1.0 million.  The Allowance for Credit Losses increased  $0.2 million to $124.9 million, or 1.39% of loans.  Additionally, the $22 thousand provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments. 

The Company did not adjust its incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of June 30, 2026.  The remaining incremental reserve contributed two basis points to the Allowance for Credit Losses at period end. 

Asset quality remained strong with annualized net loan charge-offs of 0.04% for the second quarter of 2026.  Total nonperforming assets ("NPAs") totaled $44.9 million at June 30, 2026, or 0.34% of total assets, up slightly from 0.32% at March 31, 2026 and 0.28% at June 30, 2025.  

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

ASSET QUALITY DATA ($ in thousands)		June 30, 2026		March 31, 2026		June 30, 2025
Nonperforming assets
Nonaccrual loans		$      44,283		$      41,032		$      34,625
Accruing loans > 90 days past due		—		—		—
Total nonperforming loans		44,283		41,032		34,625
Foreclosed real estate		659		740		1,218
Total nonperforming assets		$      44,942		$      41,772		$      35,843
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized		0.04 %		0.06 %		0.06 %
Nonperforming loans to total loans		0.49 %		0.47 %		0.42 %
Nonperforming assets to total assets		0.34 %		0.32 %		0.28 %
Allowance for credit losses to total loans		1.39 %		1.42 %		1.47 %

Noninterest Income

Total noninterest income for the second quarter of 2026 was $16.0 million, a $0.9 million increase from the linked quarter, primarily related to a $0.7 million increase in Other income, net.  The current quarter reflected a 12.2% increase from $14.3 million for the like quarter, primarily related to a $1.0 million increase in Other income net.

Noninterest Expenses

Noninterest expenses amounted to $62.8 million for the second quarter of 2026 compared to $60.2 million for the linked quarter and $58.9 million for the like quarter.  The $2.5 million, or 4.2%, increase in noninterest expense from the linked quarter was driven by a $2.0 million increase in Total personnel expenses. The $3.8 million increase from the like quarter was driven by a $3.3 million increase in Total personnel expenses.  While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Income Taxes

Income tax expense totaled $12.9 million for the second quarter of 2026 compared to $12.3 million for the linked quarter and $11.3 million for the like quarter, reflecting effective tax rates of 20.3%, 20.9% and 22.6% for the respective periods.

Balance Sheet

Total assets at June 30, 2026 were $13.0 billion, an increase of $93.9 million, or 2.9% annualized, from the linked quarter and $433.4 million, or 3.4%, from a year earlier.

Key period end balance sheet components are presented below.

BALANCES ($ in thousands)		June 30, 2026		March 31, 2026		June 30, 2025		Change 2Q26 vs 1Q26		Change 2Q26 vs 2Q25
Total assets		$  13,041,615		$  12,947,734		$  12,608,265		0.7 %		3.4 %
Loans		8,988,748		8,793,814		8,225,650		2.2 %		9.3 %
Investment securities		2,448,787		2,491,035		2,661,236		(1.7) %		(8.0) %
Total cash and cash equivalents		550,332		597,991		711,286		(8.0) %		(22.6) %
Noninterest-bearing deposits		3,597,565		3,596,629		3,542,626		— %		1.6 %
Interest-bearing deposits		7,487,302		7,415,854		7,287,754		1.0 %		2.7 %
Borrowings		74,717		74,643		92,237		0.1 %		(19.0) %
Shareholders' equity		1,716,460		1,682,950		1,556,180		2.0 %		10.3 %

Driven by principal paydowns and maturities, total investment securities decreased to $2.4 billion at June 30, 2026, a $42.2 million decrease from the linked quarter.  Total unrealized losses on available for sale investment securities were $204.5 million at June 30, 2026, as compared to $197.7 million at March 31, 2026 and $298.9 million at June 30, 2025.

Total loans were $9.0 billion at June 30, 2026, an increase of $194.9 million, or 8.9% annualized, from March 31, 2026 and an increase of $763.1 million, or 9.3%, from June 30, 2025.  Adjusting for the paydown of one larger seasonal loan, loan growth for the current quarter was 10.9% annualized.  Please see the below table for total loan portfolio mix.  As of June 30, 2026, there were no notable concentrations in geographies within North Carolina or South Carolina or within industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below.  The Company's exposure to non-owner occupied office loans represented approximately 6.2% of the total portfolio at June 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million.  Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.

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

LOAN PORTFOLIO		June 30, 2026				March 31, 2026				June 30, 2025
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Commercial and industrial		$  1,014,295		11 %		$  1,000,037		11 %		$     911,227		11 %
Construction, development & other land      loans		847,912		10 %		821,826		10 %		633,529		8 %
Commercial real estate - owner occupied		1,358,100		15 %		1,352,473		15 %		1,254,596		15 %
Commercial real estate - non-owner      occupied		2,974,749		33 %		2,921,210		33 %		2,758,629		34 %
Multi-family real estate		619,489		7 %		545,586		6 %		509,419		6 %
Residential 1-4 family real estate		1,728,367		19 %		1,717,550		20 %		1,731,397		21 %
Home equity loans/lines of credit		377,949		4 %		369,062		4 %		355,876		4 %
Consumer loans		68,692		1 %		66,430		1 %		70,137		1 %
Loans, gross		8,989,553		100 %		8,794,174		100 %		8,224,810		100 %
Unamortized net deferred loan      fees/(costs)		(805)				(360)				840
Total loans		$  8,988,748				$  8,793,814				$  8,225,650

Total deposits were $11.1 billion at June 30, 2026, an increase of $72.4 million, or 2.6% annualized, from  March 31, 2026 and $254.5 million, or 2.3%, from June 30, 2025.

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 June 30, 2026.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO		June 30, 2026				March 31, 2026				June 30, 2025
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Noninterest-bearing checking accounts		$   3,597,565		32 %		$   3,596,629		33 %		$   3,542,626		33 %
Interest-bearing checking accounts		1,422,592		13 %		1,462,606		13 %		1,443,010		13 %
Money market accounts		4,754,782		43 %		4,631,619		42 %		4,446,485		41 %
Savings accounts		510,392		5 %		519,266		5 %		536,247		5 %
Other time deposits		475,744		4 %		489,257		4 %		514,865		5 %
Time deposits >$250,000		318,821		3 %		308,177		3 %		337,382		3 %
Total customer deposits		11,079,896		100 %		11,007,554		100 %		10,820,615		100 %
Brokered deposits		4,971		— %		4,929		— %		9,765		— %
Total deposits		$ 11,084,867		100 %		$ 11,012,483		100 %		$ 10,830,380		100 %

As of June 30, 2026 and March 31, 2026, estimated insured deposits totaled $6.5 billion, or 58.9%, and $6.5 billion, or 59.0%, of total deposits, respectively.  In addition, at June 30, 2026 and March 31, 2026, there were collateralized deposits of $748.7 million and $723.8 million, respectively, such that approximately 65.7% and 65.6%, respectively, of our total deposits were insured or collateralized at those dates.

Capital

The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at June 30, 2026 of 16.06%, down from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.90%. 

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 9.83% at June 30, 2026, an increase of 20 basis points from the linked quarter and 100 basis points from June 30, 2025.  The increase in TCE from the like quarter was driven by improvements in the level of unrealized losses on the available for sale securities portfolio, arising from market value improvements and the 2025 securities loss-earnback transactions. 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		June 30, 2026 (estimated)		March 31, 2026		June 30, 2025
Tangible common equity to tangible assets (non-GAAP)		9.83 %		9.63 %		8.83 %
Common equity tier I capital ratio		14.09 %		14.13 %		14.64 %
Tier I leverage ratio		11.60 %		11.46 %		11.23 %
Tier I risk-based capital ratio		14.81 %		14.87 %		15.45 %
Total risk-based capital ratio		16.06 %		16.12 %		16.90 %

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, 2026 was 15.7%.  In addition, the Company had approximately $2.4 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 $13.0 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 risks and uncertainties relating to the level of success in integrating acquisitions, (including the ability to successfully integrate First Carolina into First Bank; to realize the anticipated benefits of the acquisition; deposit attrition, customer loss or other revenue loss following completed acquisitions may be greater than anticipated; and the integration of operations and personnel may require more time and expense); actions of government regulators; the level of market interest rates; and general economic conditions.  For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.  The Company is also not responsible for changes made to this press release by wire services, internet services or other media.

Non-GAAP Measures

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

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED INCOME STATEMENT
		For the Three Months Ended						For the Six Months Ended
($ in thousands, except per share data - unaudited)		June 30, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Interest income
Interest and fees on loans		$     125,845		$     120,747		$     112,921		$     246,592		$     223,418
Interest on investment securities:
Taxable interest income		16,925		17,556		16,857		34,481		32,381
Tax-exempt interest income		1,115		1,115		1,116		2,230		2,232
Other, principally overnight investments		4,430		2,972		5,837		7,402		11,324
Total interest income		148,315		142,390		136,731		290,705		269,355
Interest expense
Interest on deposits		35,812		34,046		38,405		69,858		76,524
Interest on borrowings		1,237		1,228		1,660		2,465		3,318
Total interest expense		37,049		35,274		40,065		72,323		79,842
Net interest income		111,266		107,116		96,666		218,382		189,513
Provision for credit losses		1,169		3,083		2,212		4,252		3,328
Net interest income after provision for credit losses		110,097		104,033		94,454		214,130		186,185
Noninterest income
Service charges on deposit accounts		4,205		3,954		3,976		8,159		7,743
Other service charges and fees		5,986		5,942		6,605		11,928		12,524
Presold mortgage loan fees and gains on sale		660		669		315		1,329		765
Commissions from sales of financial products		1,707		1,492		1,388		3,199		2,796
SBA loan sale gains		529		903		151		1,432		203
Bank-owned life insurance income		1,358		1,340		1,221		2,698		2,449
Other Income, net		1,589		878		636		2,467		768
Total noninterest income		16,034		15,178		14,292		31,212		27,248
Noninterest expenses
Salaries, incentives and commissions expense		31,529		29,978		29,005		61,507		57,666
Employee benefit expense		6,958		6,516		6,187		13,474		12,282
Total personnel expense		38,487		36,494		35,192		74,981		69,948
Occupancy and equipment expense		4,961		5,355		5,195		10,316		10,387
Intangibles amortization expense		1,199		1,247		1,468		2,446		2,984
Other operating expenses		18,114		17,122		17,069		35,236		33,516
Total noninterest expenses		62,761		60,218		58,924		122,979		116,835
Income before income taxes		63,370		58,993		49,822		122,363		96,598
Income tax expense		12,851		12,334		11,256		25,185		21,626
Net income		$       50,519		$       46,659		$       38,566		$       97,178		$       74,972
Earnings per common share:
Basic		$           1.22		$           1.13		$           0.93		$           2.35		$           1.81
Diluted		1.22		1.13		0.93		2.35		1.81

 

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)		June 30, 2026		March 31, 2026		June 30, 2025
Assets
Cash and due from banks, noninterest-bearing		$         128,424		$         135,176		$         139,486
Due from banks, interest-bearing		421,908		462,815		571,800
Total cash and cash equivalents		550,332		597,991		711,286
Securities available for sale		1,939,075		1,979,606		2,144,831
Securities held to maturity		509,712		511,429		516,405
Presold mortgages and SBA loans held for sale		12,304		11,191		8,928
Loans		8,988,748		8,793,814		8,225,650
Allowance for credit losses on loans		(124,894)		(124,734)		(120,545)
Net loans		8,863,854		8,669,080		8,105,105
Premises and equipment, net		138,129		139,374		141,661
Accrued interest receivable		38,272		37,296		36,681
Goodwill		478,750		478,750		478,750
Other intangible assets, net		14,786		15,985		19,920
Bank-owned life insurance		195,984		194,626		190,817
Other assets		300,417		312,406		253,881
Total assets		$    13,041,615		$    12,947,734		$    12,608,265
Liabilities
Deposits:
Noninterest-bearing deposits		$      3,597,565		$      3,596,629		$      3,542,626
Interest-bearing deposits		7,487,302		7,415,854		7,287,754
Total deposits		11,084,867		11,012,483		10,830,380
Borrowings		74,717		74,643		92,237
Accrued interest payable		3,813		3,733		4,340
Other liabilities		161,758		173,925		125,128
Total liabilities		11,325,155		11,264,784		11,052,085
Shareholders' equity
Common stock		966,777		968,675		973,041
Retained earnings		906,976		866,387		812,657
Stock in rabbi trust assumed in acquisition		(534)		(893)		(869)
Rabbi trust obligation		534		893		869
Accumulated other comprehensive loss		(157,293)		(152,112)		(229,518)
Total shareholders' equity		1,716,460		1,682,950		1,556,180
Total liabilities and shareholders' equity		$    13,041,615		$    12,947,734		$    12,608,265

 

First Bancorp and Subsidiaries Financial Summary
TREND INFORMATION
		For the Three Months Ended
		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
PERFORMANCE RATIOS (annualized)
ROA (1)		1.56 %		1.48 %		0.49 %		0.64 %		1.24 %
Adjusted ROA (2)		1.56 %		1.48 %		1.54 %		1.31 %		1.24 %
ROCE (3)		11.89 %		11.22 %		3.83 %		5.14 %		10.11 %
Adjusted ROCE (4)		11.89 %		11.22 %		12.01 %		10.55 %		10.11 %
ROTCE (5)		16.88 %		16.05 %		5.80 %		7.83 %		15.25 %
Adjusted ROTCE (6)		16.88 %		16.05 %		17.45 %		15.66 %		15.25 %
Efficiency ratio (7)		49.12 %		49.05 %		73.75 %		66.95 %		53.00 %
Adjusted efficiency ratio (7)		49.12 %		49.05 %		48.53 %		51.09 %		53.00 %
COMMON SHARE DATA
Cash dividends declared - common		$         0.24		$         0.24		$            0.23		$             0.23		$         0.23
Book value per common share		$       41.49		$       40.68		$          39.89		$           38.67		$       37.53
Tangible book value per share (8)		$       29.84		$       29.01		$          28.23		$           26.98		$       25.82
Common shares outstanding at end of period		41,374,221		41,375,026		41,466,227		41,465,437		41,468,098
Weighted average shares outstanding - diluted		41,375,377		41,459,357		41,481,132		41,481,542		41,441,393
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (9)		9.83 %		9.63 %		9.61 %		9.12 %		8.83 %
Common equity tier I capital ratio		14.09 %		14.13 %		14.10 %		14.35 %		14.64 %
Total risk-based capital ratio		16.06 %		16.12 %		16.12 %		16.58 %		16.90 %

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

 

		For the Three Months Ended
INCOME STATEMENT ($ in thousands except per share data)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Net interest income		$      111,266		$     107,116		$     106,199		$     102,489		$       96,666
Provision for credit losses		1,169		3,083		4,732		3,442		2,212
Noninterest income		16,034		15,178		(22,299)		(12,879)		14,292
Noninterest expense		62,761		60,218		62,223		60,211		58,924
Income before income taxes		63,370		58,993		16,945		25,957		49,822
Income tax expense		12,851		12,334		1,232		5,594		11,256
Net income		$       50,519		$       46,659		$       15,713		$       20,363		$       38,566
Earnings per common share - diluted		$           1.22		$           1.13		$           0.38		$           0.49		$           0.93

 

First Bancorp and Subsidiaries Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
	For the Three Months Ended
	June 30, 2026						March 31, 2026						June 30, 2025
($ in thousands)	Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate
Assets
Loans (1) (2)	$   8,896,592		$  125,845		5.67 %		$   8,781,728		$  120,747		5.57 %		$   8,187,662		$  112,921		5.53 %
Taxable securities	2,384,076		16,925		2.84 %		2,442,140		17,556		2.88 %		2,697,338		16,857		2.50 %
Non-taxable securities	283,645		1,115		1.57 %		284,712		1,115		1.57 %		287,848		1,116		1.55 %
Short-term investments, primarily interest-bearing cash	444,845		4,430		3.99 %		276,471		2,972		4.36 %		505,912		5,837		4.63 %
Total interest-earning assets	12,009,158		148,315		4.95 %		11,785,051		142,390		4.88 %		11,678,760		136,731		4.69 %
Cash and due from banks	136,181						147,124						153,074
Premises and equipment	139,177						139,775						142,090
Other assets	664,823						690,864						484,448
Total assets	$ 12,949,339						$ 12,762,814						$ 12,458,372
Liabilities
Interest-bearing checking	$   1,420,738		$      2,233		0.63 %		$   1,416,600		$      2,230		0.64 %		$   1,434,559		$      2,426		0.68 %
Money market deposits	4,666,044		28,268		2.43 %		4,566,409		26,516		2.35 %		4,358,877		29,947		2.76 %
Savings deposits	516,779		250		0.19 %		524,123		241		0.19 %		538,843		252		0.19 %
Other time deposits	487,071		2,790		2.30 %		495,115		2,819		2.31 %		534,242		3,088		2.32 %
Time deposits >$250,000	314,506		2,271		2.90 %		304,089		2,240		2.99 %		345,916		2,692		3.12 %
Total interest-bearing deposits	7,405,138		35,812		1.94 %		7,306,336		34,046		1.89 %		7,212,437		38,405		2.14 %
Short-term borrowings	757		1		0.72 %		745		1		0.61 %		848		2		1.09 %
Long-term borrowings	73,950		1,236		6.70 %		73,858		1,227		6.74 %		91,351		1,658		7.28 %
Total interest-bearing liabilities	7,479,845		37,049		1.99 %		7,380,939		35,274		1.94 %		7,304,636		40,065		2.20 %
Noninterest-bearing checking	3,597,511						3,515,359						3,522,117
Other liabilities	167,595						179,753						101,069
Shareholders' equity	1,704,388						1,686,763						1,530,550
Total liabilities and shareholders' equity	$ 12,949,339						$ 12,762,814						$ 12,458,372
Net yield on interest-earning assets and net interest income			$  111,266		3.71 %				$  107,116		3.67 %				$    96,666		3.32 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			$  111,732		3.73 %				$  107,595		3.69 %				$    96,877		3.32 %
Interest rate spread					2.96 %						2.94 %						2.49 %
Average prime rate					6.75 %						6.75 %						7.50 %

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

(2) Includes accretion of discount on acquired loans of $1.1 million, $1.1 million and $1.5 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net 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, 2026						June 30, 2025
($ in thousands)		Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate
Assets
Loans (1) (2)		$   8,839,477		$  246,592		5.62 %		$   8,147,750		$  223,418		5.52 %
Taxable securities		2,412,948		34,481		2.86 %		2,663,390		32,381		2.43 %
Non-taxable securities		284,176		2,230		1.57 %		288,373		2,232		1.55 %
Short-term investments, primarily interest-bearing cash		361,123		7,402		4.13 %		504,652		11,324		4.52 %
Total interest-earning assets		11,897,724		290,705		4.92 %		11,604,165		269,355		4.67 %
Cash and due from banks		141,622						143,469
Premises and equipment		139,474						142,574
Other assets		677,771						453,023
Total assets		$ 12,856,591						$ 12,343,231
Liabilities
Interest-bearing checking		$   1,418,681		$      4,462		0.63 %		$   1,433,066		$      4,923		0.69 %
Money market deposits		4,616,502		54,785		2.39 %		4,348,277		59,126		2.74 %
Savings deposits		520,429		491		0.19 %		538,973		493		0.18 %
Other time deposits		491,071		5,609		2.30 %		546,377		6,441		2.38 %
Time deposits >$250,000		309,327		4,511		2.94 %		349,028		5,541		3.20 %
Total interest-bearing deposits		7,356,010		69,858		1.92 %		7,215,721		76,524		2.14 %
Short-term borrowings		751		2		0.66 %		822		3		0.86 %
Long-term borrowings		73,904		2,463		6.72 %		91,259		3,315		7.32 %
Total interest-bearing liabilities		7,430,665		72,323		1.96 %		7,307,802		79,842		2.20 %
Noninterest-bearing checking		3,556,662						3,449,013
Other liabilities		173,640						87,032
Shareholders' equity		1,695,624						1,499,384
Total liabilities and shareholders' equity		$ 12,856,591						$ 12,343,231
Net yield on interest-earning assets and net interest income				$  218,382		3.69 %				$  189,513		3.28 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)				$  219,327		3.71 %				$  190,161		3.30 %
Interest rate spread						2.96 %						2.47 %
Average prime rate						6.75 %						7.50 %

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

(2) Includes accretion of discount on acquired loans of $2.1 million and $3.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net 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)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Total shareholders' common equity		$      1,716,460		$      1,682,950		$      1,654,168		$      1,603,323		$      1,556,180
Less: Goodwill and other intangibles, net of related taxes		(481,673)		(482,640)		(483,644)		(484,623)		(485,657)
Tangible common equity		$      1,234,787		$      1,200,310		$      1,170,524		$      1,118,700		$      1,070,523
APPENDIX B:  Calculation of Tangible Book Value Per Share ("TBVPS")
		For the Three Months Ended
($ in thousands except per share data)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Tangible common equity (Appendix A)		$      1,234,787		$      1,200,310		$      1,170,524		$      1,118,700		$      1,070,523
Common shares outstanding		41,374,221		41,375,026		41,466,227		41,465,437		41,468,098
Tangible book value per common share		$             29.84		$             29.01		$             28.23		$             26.98		$             25.82
APPENDIX C:  TCE Ratio
		For the Three Months Ended
($ in thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Tangible common equity (Appendix A)		$      1,234,787		$      1,200,310		$      1,170,524		$       1,118,700		$      1,070,523
Total assets		13,041,615		12,947,734		12,668,339		12,750,263		12,608,265
Less: Goodwill and other intangibles, net of related taxes		(481,673)		(482,640)		(483,644)		(484,623)		(485,657)
Tangible assets ("TA")		$    12,559,942		$    12,465,094		$    12,184,695		$    12,265,640		$    12,122,608
TCE to TA ratio		9.83 %		9.63 %		9.61 %		9.12 %		8.83 %
APPENDIX D:  Calculation of Return on Average Assets ("ROA") and Adjusted ROA
		For the Three Months Ended
($ in thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Net income (A)		$           50,519		$           46,659		$           15,713		$           20,363		$           38,566
After-tax impact of loss-earnback		—		—		33,581		21,433		—
Adjusted net income (B)		$           50,519		$           46,659		$           49,294		$           41,796		$           38,566
Average total assets (C)		$    12,949,339		$    12,762,814		$    12,716,139		$    12,640,016		$    12,458,372
ROA (A/C)		1.56 %		1.48 %		0.49 %		0.64 %		1.24 %
Adjusted ROA (B/C)		1.56 %		1.48 %		1.54 %		1.31 %		1.24 %
APPENDIX E:  Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
		For the Three Months Ended
($ in thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Net income (A)		$           50,519		$           46,659		$           15,713		$           20,363		$           38,566
After-tax impact of loss-earnback		—		—		33,581		21,433		—
Adjusted net income (B)		$           50,519		$           46,659		$           49,294		$           41,796		$           38,566
Average common equity (C)		$      1,704,388		$      1,686,763		$      1,627,976		$      1,571,104		$      1,530,550
ROCE (A/C)		11.89 %		11.22 %		3.83 %		5.14 %		10.11 %
Adjusted ROCE (B/C)		11.89 %		11.22 %		12.01 %		10.55 %		10.11 %
APPENDIX F:  Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
		For the Three Months Ended
($ in thousands)		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Net Income		$           50,519		$           46,659		$           15,713		$           20,363		$           38,566
Intangible asset amortization, net of taxes		923		960		994		1,066		1,123
Tangible Net income  (A)		51,442		47,619		16,707		21,429		39,689
After-tax impact of loss-earnback		—		—		33,581		21,433		—
Adjusted tangible net income  (B)		$           51,442		$           47,619		$           50,288		$           42,862		$           39,689
Average common equity		$      1,704,388		$      1,686,763		$      1,627,976		$      1,571,104		$      1,530,550
Less: Average goodwill and other intangibles, net of related taxes		(482,326)		(483,314)		(484,313)		(485,331)		(486,393)
Average TCE  (C)		$      1,222,062		$      1,203,449		$      1,143,663		$      1,085,773		$      1,044,157
ROTCE (A/C)		16.88 %		16.05 %		5.80 %		7.83 %		15.25 %
Adjusted ROTCE (B/C)		16.88 %		16.05 %		17.45 %		15.66 %		15.25 %
APPENDIX G: Efficiency Ratio and Adjusted Efficiency Ratio
		For the Three Months Ended
		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Noninterest expenses (A)		$           62,761		$           60,218		$           62,043		$           60,171		$           58,924
Nointerest income (B)		16,034		15,178		(22,479)		(12,951)		14,292
Securities losses, net		—		—		(43,722)		(27,905)		—
Adjusted nointerest income (C)		16,034		15,178		21,243		14,954		14,292
Net interest income – tax-equivalent (D)		111,732		107,595		106,601		102,829		96,877
Efficiency ratio A/(B+D)		49.12 %		49.05 %		73.75 %		66.95 %		53.00 %
Adjusted efficiency ratio A/(C+D)		49.12 %		49.05 %		48.53 %		51.09 %		53.00 %

Supplemental information

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

Included in interest income for the second quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.1 million for the linked quarter and $1.5 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the second quarter of 2026, the linked quarter and the like quarter. 

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

		For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands)		June 30, 2026		March 31, 2026		June 30, 2025
Interest income - increased by accretion of loan discount on acquired loans		$         1,083		$         1,065		$         1,457
Total interest income impact		1,083		1,065		1,457
Interest expense - increased by discount accretion on deposits		(62)		(61)		(102)
Interest expense - increased by discount accretion on borrowings		(87)		(86)		(194)
Total net interest expense impact		(149)		(147)		(296)
Total impact on net interest income		$            934		$            918		$         1,161

 

 

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SOURCE First Bancorp

FAQ

How did First Bancorp (FBNC) perform in Q2 2026?

First Bancorp reported Q2 2026 net income of $50.5 million and diluted EPS of $1.22, higher than both Q1 2026 and Q2 2025. According to First Bancorp, net interest income reached $111.3 million and net interest margin expanded to 3.71% for the quarter.

What were the key margin and funding metrics for First Bancorp (FBNC) in Q2 2026?

First Bancorp’s Q2 2026 net interest margin was 3.71%, up from 3.67% in Q1 2026 and 3.32% a year earlier. According to First Bancorp, total cost of funds was 1.34% and total cost of deposits was 1.31%, both 3 basis points higher quarter-over-quarter.

How did First Bancorp’s (FBNC) loans and credit quality trend in Q2 2026?

Total loans reached $9.0 billion at June 30, 2026, up 2.2% from Q1 and 9.3% year-over-year. According to First Bancorp, annualized net charge-offs were 0.04%, nonperforming assets were 0.34% of assets, and the allowance for credit losses stood at 1.39% of loans.

What are the details of First Bancorp’s acquisition of First Carolina Bancshares announced in July 2026?

First Bancorp agreed to acquire First Carolina Bancshares in a transaction structured as 75% stock and 25% cash. According to First Bancorp, Carolina Bank had $831 million in assets and $714 million in deposits, with closing expected in late 2026 or early 2027, subject to approvals.

How strong were First Bancorp’s (FBNC) capital ratios at June 30, 2026?

First Bancorp reported a tangible common equity to tangible assets ratio of 9.83% at June 30, 2026. According to First Bancorp, the common equity tier 1 capital ratio was 14.09% and the total risk-based capital ratio was 16.06%, with June 30 ratios preliminary.

What happened to First Bancorp’s noninterest income and expenses in Q2 2026?

Noninterest income rose to $16.0 million in Q2 2026, up from $15.2 million in Q1 and $14.3 million a year ago. According to First Bancorp, noninterest expenses increased to $62.8 million, driven mainly by higher personnel costs, yielding an efficiency ratio of 49.12%.

How did deposits and funding mix evolve for First Bancorp (FBNC) in Q2 2026?

Average core deposits were $11.0 billion, up $181.0 million from Q1 2026 and $268.1 million year-over-year. According to First Bancorp, noninterest-bearing demand deposits totaled $3.6 billion, representing 32% of total deposits, and the loan-to-deposit ratio was 81.1% at quarter-end.