First Bancorp Reports Second Quarter Results
SOUTHERN PINES, N.C., July 27, 2021 /PRNewswire/ -- First Bancorp (NASDAQ - FBNC), the parent company of First Bank, announced today net income of
In the second quarter of 2021, the Company experienced significant loan and deposit growth. Loan growth for the quarter, exclusive of
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2021 was
The Company's net interest margin (a non-GAAP measure calculated by dividing tax-equivalent net interest income by average earning assets) for the second quarter of 2021 was
Driven by high deposit growth, average interest-earning assets increased by
In the first six months of 2021, the Company processed
The Company recorded loan discount accretion of
Allowance for Loan Losses, Provisions for Loan Losses and Unfunded Commitments, and Asset Quality
On January 1, 2021, the Company adopted the Current Expected Credit Loss (CECL) methodology for estimating credit losses, which resulted in an adoption-date increase of
The Company recorded no provision for loan losses for the three or six months ended June 30, 2021 compared to
During the second quarter of 2021, using the CECL methodology, the Company recorded a
Annualized net loan charge-offs to average loans amounted to
Total nonperforming assets amounted to
Noninterest Income
Total noninterest income for the second quarter of 2021 was
Service charges on deposit accounts amounted to
Other service charges, commissions and fees amounted to
Fees from presold mortgages amounted to
SBA consulting fees amounted to
SBA loan sale gains amounted to
During the second quarter of 2020, the Company sold approximately
Other gains (losses) amounted to a gain of
Noninterest Expenses
Noninterest expenses amounted to
Merger expenses amounted to
Income Taxes
The Company's effective tax rate was
Balance Sheet and Capital
Total assets at June 30, 2021 amounted to
Loan growth for the second quarter of 2021, exclusive of
Deposit growth during the second quarter of 2021 totaled
The Company has deployed excess liquidity into investment securities, which amounted to
The Company remains well-capitalized by all regulatory standards, with an estimated Total Risk-Based Capital Ratio at June 30, 2021 of
Comments of the CEO and Other Business Matters
Richard H. Moore, CEO of First Bancorp, commented, "Today's earnings report reflects another strong quarter for our company. We achieved a high level of profitability with good balance sheet growth and capital levels remain strong." Mr. Moore continued, "We are excited about our pending acquisition of Select Bancorp and look forward to welcoming new employees and customers to First Bank."
The following is additional discussion of business development and other matters affecting the Company during the second quarter of 2021:
- On June 1, 2021, the Company announced that it had reached an agreement to acquire Select Bancorp, Inc., headquartered in Dunn, North Carolina, which operates 22 branches and has
$1.8 billion in assets. This transaction is subject to regulatory and shareholder approval, and is expected to be completed during the fourth quarter of 2021. - On June 30, 2021, the Company completed the sale of the operations and substantially all of the operating assets of its property and casualty insurance agency subsidiary, First Bank Insurance Services, to Bankers Insurance, LLC for an initial purchase price valued at
$13.0 million and a future earn-out payment of up to$1.0 million . The Company recorded a gain of$1.7 million related to the sale. Approximately$10.2 million of intangible assets were derecognized from the Company's balance sheet as a result of this transaction. - On June 15, 2021, the Company announced a quarterly cash dividend of
$0.20 per share payable on July 25, 2021 to shareholders of record on June 30, 2021. This dividend rate represents an11.1% increase over the dividend rate declared in the second quarter of 2020.
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of approximately
Please visit our website at www.LocalFirstBank.com.
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.
Additional Information About the Proposed Transaction with Select Bancorp, Inc. and Where to Find It
This communication includes statements made in respect of the proposed merger involving First Bancorp and Select Bancorp, Inc. ("Select"). This material is not a solicitation of any vote or approval of First Bancorp's or Select's shareholders and is not a substitute for the joint proxy statement/prospectus or any other documents which First Bancorp and Select will send to their respective shareholders in connection with the proposed merger. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.
In connection with the proposed merger, First Bancorp has filed with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that includes a joint proxy statement of First Bancorp and Select and a prospectus of First Bancorp, as well as other relevant documents concerning the proposed merger. Investors and security holders are urged to carefully review and consider each of First Bancorp's and Select's public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. Both Select and First Bancorp will mail the joint proxy statement/prospectus to their respective shareholders. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SHAREHOLDERS OF FIRST BANCORP AND SELECT ARE URGED TO CAREFULLY READ THE ENTIRE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when available) and other filings containing information about First Bancorp and Select at the SEC's website at www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by First Bancorp on its website at http://www.localfirstbank.com and by Select on its website at http://www.selectbank.com.
First Bancorp, Select and certain of their respective directors and executive officers, under the SEC's rules, may be deemed to be participants in the solicitation of proxies of First Bancorp's and Select's shareholders in connection with the proposed merger. Information about the directors and executive officers of First Bancorp and their ownership of First Bancorp common stock is set forth in the proxy statement for First Bancorp's 2021 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 23, 2021. Information about the directors and executive officers of Select and their ownership of Select's common stock is set forth in the proxy statement for Select's 2021 Annual Meeting of Shareholders, as filed with the SEC on a Schedule 14A on April 6, 2021. Additional information regarding the interests of those participants and other persons who may be deemed participants in the merger may be obtained by reading the joint proxy statement/prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
First Bancorp and Subsidiaries | ||||||||
Three Months Ended June 30, | Percent | |||||||
($ in thousands except per share data - unaudited) | 2021 | 2020 | Change | |||||
INCOME STATEMENT | ||||||||
Interest income | ||||||||
Interest and fees on loans | $ | 52,295 | 51,964 | |||||
Interest on investment securities | 8,263 | 4,888 | ||||||
Other interest income | 581 | 788 | ||||||
Total interest income | 61,139 | 57,640 | ||||||
Interest expense | ||||||||
Interest on deposits | 1,999 | 4,074 | ||||||
Interest on borrowings | 381 | 942 | ||||||
Total interest expense | 2,380 | 5,016 | (52.6)% | |||||
Net interest income | 58,759 | 52,624 | ||||||
Provision for loan losses | — | 19,298 | (100.0)% | |||||
Provision for unfunded commitments | 1,939 | — | n/m | |||||
Total provisions for credit losses | 1,939 | 19,298 | (90.0)% | |||||
Net interest income after provisions for credit losses | 56,820 | 33,326 | ||||||
Noninterest income | ||||||||
Service charges on deposit accounts | 2,824 | 2,289 | ||||||
Other service charges, commissions, and fees | 6,496 | 4,624 | ||||||
Fees from presold mortgage loans | 2,274 | 3,020 | ||||||
Commissions from sales of insurance and financial products | 2,466 | 2,090 | ||||||
SBA consulting fees | 2,187 | 3,739 | ||||||
SBA loan sale gains | 2,996 | 1,965 | ||||||
Bank-owned life insurance income | 614 | 629 | ||||||
Securities gains (losses), net | — | 8,024 | ||||||
Other gains (losses), net | 1,517 | (187) | ||||||
Total noninterest income | 21,374 | 26,193 | (18.4)% | |||||
Noninterest expenses | ||||||||
Salaries expense | 21,187 | 20,606 | ||||||
Employee benefit expense | 4,084 | 3,847 | ||||||
Occupancy and equipment related expense | 3,721 | 3,744 | ||||||
Merger and acquisition expenses | 411 | — | ||||||
Intangibles amortization expense | 845 | 978 | ||||||
Foreclosed property losses (gains), net | (173) | 35 | ||||||
Other operating expenses | 10,910 | 9,691 | ||||||
Total noninterest expenses | 40,985 | 38,901 | ||||||
Income before income taxes | 37,209 | 20,618 | ||||||
Income tax expense | 7,924 | 4,266 | ||||||
Net income | $ | 29,285 | 16,352 | |||||
Earnings per common share - diluted | $ | 1.03 | 0.56 | |||||
ADDITIONAL INCOME STATEMENT INFORMATION | ||||||||
Net interest income, as reported | $ | 58,759 | 52,624 | |||||
Tax-equivalent adjustment (1) | 517 | 330 | ||||||
Net interest income, tax-equivalent | $ | 59,276 | 52,954 | |||||
(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- |
n/m - not meaningful |
First Bancorp and Subsidiaries | ||||||||
Six Months Ended June 30, | Percent | |||||||
($ in thousands except per share data - unaudited) | 2021 | 2020 | Change | |||||
INCOME STATEMENT | ||||||||
Interest income | ||||||||
Interest and fees on loans | $ | 103,368 | 107,261 | |||||
Interest on investment securities | 14,499 | 10,526 | ||||||
Other interest income | 1,281 | 1,886 | ||||||
Total interest income | 119,148 | 119,673 | (0.4)% | |||||
Interest expense | ||||||||
Interest on deposits | 4,387 | 9,847 | ||||||
Interest on borrowings | 764 | 2,443 | ||||||
Total interest expense | 5,151 | 12,290 | (58.1)% | |||||
Net interest income | 113,997 | 107,383 | ||||||
Provision for loan losses | — | 24,888 | (100.0)% | |||||
Provision for unfunded commitments | 1,939 | — | n/m | |||||
Total provisions for credit losses | 1,939 | 24,888 | (92.5)% | |||||
Net interest income after provisions for credit losses | 112,058 | 82,495 | ||||||
Noninterest income | ||||||||
Service charges on deposit accounts | 5,557 | 5,626 | ||||||
Other service charges, commissions, and fees | 12,018 | 8,693 | ||||||
Fees from presold mortgage loans | 6,818 | 4,861 | ||||||
Commissions from sales of insurance and financial products | 4,656 | 4,158 | ||||||
SBA consulting fees | 4,951 | 4,766 | ||||||
SBA loan sale gains | 5,326 | 2,612 | ||||||
Bank-owned life insurance income | 1,234 | 1,271 | ||||||
Securities gains (losses), net | — | 8,024 | ||||||
Other gains (losses), net | 1,483 | (113) | ||||||
Total noninterest income | 42,043 | 39,898 | ||||||
Noninterest expenses | ||||||||
Salaries expense | 41,318 | 40,716 | ||||||
Employee benefit expense | 8,658 | 8,394 | ||||||
Occupancy and equipment related expense | 7,670 | 7,847 | ||||||
Merger and acquisition expenses | 411 | — | ||||||
Intangibles amortization expense | 1,742 | 2,033 | ||||||
Foreclosed property losses (gains), net | (16) | 194 | ||||||
Other operating expenses | 21,267 | 19,793 | ||||||
Total noninterest expenses | 81,050 | 78,977 | ||||||
Income before income taxes | 73,051 | 43,416 | ||||||
Income tax expense | 15,572 | 8,884 | ||||||
Net income | $ | 57,479 | 34,532 | |||||
Earnings per common share - diluted | $ | 2.02 | 1.18 | |||||
ADDITIONAL INCOME STATEMENT INFORMATION | ||||||||
Net interest income, as reported | $ | 113,997 | 107,383 | |||||
Tax-equivalent adjustment (1) | 959 | 664 | ||||||
Net interest income, tax-equivalent | $ | 114,956 | 108,047 | |||||
(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- |
n/m - not meaningful |
First Bancorp and Subsidiaries | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
PERFORMANCE RATIOS (annualized) | 2021 | 2020 | 2021 | 2020 | |||||
Return on average assets (1) | 1.47 | % | 0.98 | % | 1.50 | % | 1.08 | % | |
Return on average common equity (2) | 13.14 | % | 7.55 | % | 13.03 | % | 8.03 | % | |
Net interest margin - tax-equivalent (3) | 3.22 | % | 3.49 | % | 3.24 | % | 3.71 | % | |
Net (recoveries) charge-offs to average loans | 0.07 | % | 0.12 | % | 0.08 | % | 0.17 | % | |
COMMON SHARE DATA | |||||||||
Cash dividends declared - common | $ | 0.20 | 0.18 | 0.40 | 0.36 | ||||
Stated book value - common | 31.75 | 29.95 | 31.75 | 29.95 | |||||
Tangible book value - common (non-GAAP) | 23.22 | 21.36 | 23.22 | 21.36 | |||||
Common shares outstanding at end of period | 28,491,633 | 28,976,681 | 28,491,633 | 28,976,681 | |||||
Weighted average shares outstanding - diluted | 28,490,031 | 28,969,728 | 28,513,942 | 29,184,421 | |||||
CAPITAL RATIOS | |||||||||
Tangible common equity to tangible assets (non-GAAP) | 8.31 | % | 9.32 | % | 8.31 | % | 9.32 | % | |
Common equity tier I capital ratio - estimated | 13.01 | % | 13.10 | % | 13.01 | % | 13.10 | % | |
Tier I leverage ratio - estimated | 9.43 | % | 10.29 | % | 9.43 | % | 10.29 | % | |
Tier I risk-based capital ratio - estimated | 14.02 | % | 14.21 | % | 14.02 | % | 14.21 | % | |
Total risk-based capital ratio - estimated | 15.27 | % | 15.13 | % | 15.27 | % | 15.13 | % | |
AVERAGE BALANCES ($ in thousands) | |||||||||
Total assets | $ | 7,965,781 | 6,727,762 | 7,723,284 | 6,455,591 | ||||
Loans | 4,679,119 | 4,738,702 | 4,681,604 | 4,625,798 | |||||
Earning assets | 7,386,607 | 6,102,012 | 7,143,841 | 5,848,974 | |||||
Deposits | 6,951,524 | 5,502,356 | 6,714,168 | 5,226,331 | |||||
Interest-bearing liabilities | 4,443,875 | 3,885,903 | 4,339,386 | 3,812,685 | |||||
Shareholders' equity | 893,978 | 871,495 | 889,865 | 865,124 | |||||
(1) | Calculated by dividing annualized net income by average assets. |
(2) | Calculated by dividing annualized net income by average common equity. |
(3) | See note 1 on the first page of the Financial Summary for discussion of tax-equivalent adjustments. |
_____________________________________________________________________________________________
TREND INFORMATION
($ in thousands except per share data) | For the Three Months Ended | ||||||||||
INCOME STATEMENT | June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | ||||||
Net interest income - tax-equivalent (1) | $ | 59,276 | 55,681 | 56,463 | 55,080 | 52,954 | |||||
Taxable equivalent adjustment (1) | 517 | 443 | 457 | 347 | 330 | ||||||
Net interest income | 58,759 | 55,238 | 56,006 | 54,733 | 52,624 | ||||||
Provision for loan losses | — | — | 4,031 | 6,120 | 19,298 | ||||||
Provision for unfunded commitments | 1,939 | — | — | — | — | ||||||
Noninterest income | 21,374 | 20,669 | 19,996 | 21,452 | 26,193 | ||||||
Noninterest expense | 40,985 | 40,065 | 41,882 | 40,439 | 38,901 | ||||||
Income before income taxes | 37,209 | 35,842 | 30,089 | 29,626 | 20,618 | ||||||
Income tax expense | 7,924 | 7,648 | 6,441 | 6,329 | 4,266 | ||||||
Net income | 29,285 | 28,194 | 23,648 | 23,297 | 16,352 | ||||||
Earnings per common share - diluted | 1.03 | 0.99 | 0.83 | 0.81 | 0.56 | ||||||
Cash dividends declared per share | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | ||||||
(1) | See note 1 on the first page of this Financial Summary for discussion of tax-equivalent adjustments. |
First Bancorp and Subsidiaries | |||||||||||||||
CONSOLIDATED BALANCE SHEETS ($ in thousands - unaudited) | |||||||||||||||
At June 30, 2021 | At Mar. 31, 2021 | At Dec. 31, 2020 | At June 30, 2020 | One Year Change | |||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 83,851 | 71,206 | 93,724 | 94,684 | (11.4) | % | ||||||||
Interest-bearing deposits with banks | 391,375 | 458,860 | 273,566 | 584,830 | (33.1) | % | |||||||||
Total cash and cash equivalents | 475,226 | 530,066 | 367,290 | 679,514 | (30.1) | % | |||||||||
Investment securities | 2,406,881 | 2,020,540 | 1,620,683 | 879,756 | 173.6 | % | |||||||||
Presold mortgages | 13,762 | 31,869 | 42,271 | 31,015 | (55.6) | % | |||||||||
SBA loans held for sale | 5,480 | 7,002 | 6,077 | 3,382 | 62.0 | % | |||||||||
Total loans | 4,782,064 | 4,624,054 | 4,731,315 | 4,770,063 | 0.3 | % | |||||||||
Allowance for loan losses | (65,022) | (65,849) | (52,388) | (42,342) | 53.6 | % | |||||||||
Net loans | 4,717,042 | 4,558,205 | 4,678,927 | 4,727,721 | (0.2) | % | |||||||||
Premises and equipment | 123,395 | 123,271 | 120,502 | 115,373 | 7.0 | % | |||||||||
Operating right-of-use lease assets | 16,432 | 16,899 | 17,514 | 18,833 | (12.7) | % | |||||||||
Intangible assets | 242,968 | 253,878 | 254,638 | 248,840 | (2.4) | % | |||||||||
Foreclosed real estate | 826 | 1,811 | 2,424 | 2,987 | (72.3) | % | |||||||||
Bank-owned life insurance | 108,209 | 107,594 | 106,974 | 105,712 | 2.4 | % | |||||||||
Other assets | 90,361 | 85,259 | 72,451 | 75,462 | 19.7 | % | |||||||||
Total assets | $ | 8,200,582 | 7,736,394 | 7,289,751 | 6,888,595 | 19.0 | % | ||||||||
Liabilities | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing checking accounts | $ | 2,651,143 | 2,430,198 | 2,210,012 | 2,041,778 | 29.8 | % | ||||||||
Interest-bearing checking accounts | 1,378,865 | 1,258,500 | 1,172,022 | 1,112,625 | 23.9 | % | |||||||||
Money market accounts | 1,820,475 | 1,721,230 | 1,581,364 | 1,353,053 | 34.5 | % | |||||||||
Savings accounts | 593,629 | 567,715 | 519,266 | 474,455 | 25.1 | % | |||||||||
Brokered deposits | 9,470 | 9,461 | 20,222 | 64,069 | (85.2) | % | |||||||||
Internet time deposits | — | 249 | 249 | 698 | (100.0) | % | |||||||||
Other time deposits > | 501,252 | 525,809 | 543,894 | 545,370 | (8.1) | % | |||||||||
Other time deposits | 216,524 | 220,325 | 226,567 | 239,090 | (9.4) | % | |||||||||
Total deposits | 7,171,358 | 6,733,487 | 6,273,596 | 5,831,138 | 23.0 | % | |||||||||
Borrowings | 61,252 | 61,342 | 61,829 | 112,199 | (45.4) | % | |||||||||
Operating lease liabilities | 16,893 | 17,354 | 17,868 | 19,109 | (11.6) | % | |||||||||
Other liabilities | 46,569 | 47,358 | 43,037 | 58,258 | (20.1) | % | |||||||||
Total liabilities | 7,296,072 | 6,859,541 | 6,396,330 | 6,020,704 | 21.2 | % | |||||||||
Shareholders' equity | |||||||||||||||
Common stock | 397,704 | 397,094 | 400,582 | 408,699 | (2.7) | % | |||||||||
Retained earnings | 507,531 | 483,944 | 478,489 | 441,846 | 14.9 | % | |||||||||
Stock in rabbi trust assumed in acquisition | (1,928) | (2,256) | (2,243) | (2,217) | (13.0) | % | |||||||||
Rabbi trust obligation | 1,928 | 2,256 | 2,243 | 2,217 | (13.0) | % | |||||||||
Accumulated other comprehensive income (loss) | (725) | (4,185) | 14,350 | 17,346 | (104.2) | % | |||||||||
Total shareholders' equity | 904,510 | 876,853 | 893,421 | 867,891 | 4.2 | % | |||||||||
Total liabilities and shareholders' equity | $ | 8,200,582 | 7,736,394 | 7,289,751 | 6,888,595 | 19.0 | % | ||||||||
First Bancorp and Subsidiaries | ||||||||||
For the Three Months Ended | ||||||||||
YIELD INFORMATION | June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | |||||
Yield on loans | 4.48 | % | 4.42 | % | 4.42 | % | 4.38 | % | 4.41 | % |
Yield on securities | 1.45 | % | 1.47 | % | 1.62 | % | 2.02 | % | 2.49 | % |
Yield on other earning assets | 0.56 | % | 0.57 | % | 0.57 | % | 0.64 | % | 0.55 | % |
Yield on all interest-earning assets | 3.32 | % | 3.41 | % | 3.55 | % | 3.71 | % | 3.80 | % |
Rate on interest bearing deposits | 0.18 | % | 0.23 | % | 0.29 | % | 0.37 | % | 0.46 | % |
Rate on other interest-bearing liabilities | 2.49 | % | 2.53 | % | 2.55 | % | 2.06 | % | 1.31 | % |
Rate on all interest-bearing liabilities | 0.21 | % | 0.27 | % | 0.32 | % | 0.41 | % | 0.52 | % |
Total cost of funds | 0.14 | % | 0.17 | % | 0.21 | % | 0.26 | % | 0.35 | % |
Net interest margin (1) | 3.19 | % | 3.25 | % | 3.35 | % | 3.46 | % | 3.47 | % |
Net interest margin - tax-equivalent (2) | 3.22 | % | 3.27 | % | 3.38 | % | 3.48 | % | 3.49 | % |
Average prime rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % |
(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. See note 1 on the first page of this Financial Summary for discussion of tax- |
______________________________________________________________________________________________________
For the Three Months Ended | |||||||||||||||
NET INTEREST INCOME PURCHASE ($ in thousands) | June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | ||||||||||
Interest income - increased by accretion of loan | $ | 2,913 | 752 | 802 | 972 | 802 | |||||||||
Interest income - increased by accretion of loan | 718 | 589 | 737 | 583 | 591 | ||||||||||
Interest expense - reduced by premium | 11 | 15 | 19 | 23 | 26 | ||||||||||
Interest expense - increased by discount accretion | (44) | (44) | (45) | (45) | (45) | ||||||||||
Impact on net interest income | $ | 3,598 | 1,312 | 1,513 | 1,533 | 1,374 | |||||||||
First Bancorp and Subsidiaries | |||||||||||||||
ASSET QUALITY DATA ($ in thousands) | June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | ||||||||||
Nonperforming assets | |||||||||||||||
Nonaccrual loans | $ | 32,993 | 39,566 | 35,076 | 31,656 | 34,922 | |||||||||
Troubled debt restructurings - accruing | 8,026 | 8,601 | 9,497 | 9,896 | 9,867 | ||||||||||
Accruing loans > 90 days past due | — | — | — | — | — | ||||||||||
Total nonperforming loans | 41,019 | 48,167 | 44,573 | 41,552 | 44,789 | ||||||||||
Foreclosed real estate | 826 | 1,811 | 2,424 | 2,741 | 2,987 | ||||||||||
Total nonperforming assets | $ | 41,845 | 49,978 | 46,997 | 44,293 | 47,776 | |||||||||
Purchased credit deteriorated loans (1) | $ | 8,291 | 8,437 | 8,591 | 9,616 | 9,742 | |||||||||
Asset Quality Ratios | |||||||||||||||
Net quarterly (recoveries) charge-offs to average | 0.07 | % | 0.10 | % | 0.07 | % | (0.06) | % | 0.12 | % | |||||
Nonperforming loans to total loans | 0.86 | % | 1.04 | % | 0.94 | % | 0.86 | % | 0.94 | % | |||||
Nonperforming assets to total assets | 0.51 | % | 0.65 | % | 0.64 | % | 0.63 | % | 0.69 | % | |||||
Allowance for loan losses to total loans | 1.36 | % | 1.42 | % | 1.11 | % | 1.02 | % | 0.89 | % | |||||
Allowance for loan losses to total loans, excluding | 1.41 | % | 1.50 | % | 1.17 | % | 1.08 | % | 0.94 | % | |||||
(1) | In the March 3, 2017 acquisition of Carolina Bank and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired |
First Bancorp and Subsidiaries | |||||||||||||||
For the Three Months Ended | |||||||||||||||
NET INTEREST MARGIN, EXCLUDING ($ in thousands) | June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | ||||||||||
Net interest income, as reported | $ | 58,759 | 55,238 | 56,006 | 54,733 | 52,624 | |||||||||
Tax-equivalent adjustment | 517 | 443 | 457 | 347 | 330 | ||||||||||
Net interest income, tax-equivalent (A) | $ | 59,276 | 55,681 | 56,463 | 55,080 | 52,954 | |||||||||
Average earning assets (B) | $ | 7,386,607 | 6,898,406 | 6,640,732 | 6,294,556 | 6,102,012 | |||||||||
Tax-equivalent net interest | 3.22 | % | 3.27 | % | 3.38 | % | 3.48 | % | 3.49 | % | |||||
Net interest income, tax-equivalent | $ | 59,276 | 55,681 | 56,463 | 55,080 | 52,954 | |||||||||
Loan discount accretion | 3,631 | 1,341 | 1,539 | 1,555 | 1,393 | ||||||||||
Net interest income, tax-equivalent, excluding | $ | 55,645 | 54,340 | 54,924 | 53,525 | 51,561 | |||||||||
Average earnings assets (D) | $ | 7,386,607 | 6,898,406 | 6,640,732 | 6,294,556 | 6,102,012 | |||||||||
Tax-equivalent net interest margin, excluding | 3.02 | % | 3.19 | % | 3.29 | % | 3.38 | % | 3.40 | % | |||||
Note: The measure "tax-equivalent net interest margin, excluding impact of loan discount accretion" is a non-GAAP performance measure. Management of the Company believes that it is useful to calculate and present the Company's net interest margin without the impact of loan discount accretion for the reasons explained in the remainder of this Note. Loan discount accretion is a non-cash interest income adjustment that is related to 1) the Company's acquisition of loans and represents the portion of the fair value discount that was initially recorded on the acquired loans, and 2) the Company's origination of SBA loans and the subsequent sale of the guaranteed portions of the loans that results in a discount being recorded on the retained portion of the loans. These discounts are recognized into income over the lives of the loans. At June 30, 2021, the Company had a remaining loan discount balance on acquired loans of |
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SOURCE First Bancorp
