First Bancorp Q3 2026 earnings rise to $51.3M
Loan growth and a wider net interest margin accompanied the quarter, while the $166 million First Carolina deal remains subject to approvals.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
First Bancorp (FBNC) reported third-quarter 2026 net income of $51.3 million and diluted earnings per share of $1.24, compared with $50.5 million and $1.22 in the prior quarter. Net interest income was $114.8 million, and net interest margin was 3.75%, up 4 basis points from the prior quarter. Adjusted net income was $51.6 million, versus $41.8 million for the third quarter of 2025; reported net income in that year-ago quarter included a $27.9 million securities loss.
At September 30, 2026, loans totaled $9.1 billion, up $116.2 million from June 30, and deposits were $11.1 billion, up $41.4 million. Nonperforming assets were $45.0 million, or 0.34% of assets; the allowance for credit losses was $124.2 million, or 1.36% of loans. First Bancorp has a pending agreement to acquire First Carolina in a stock-and-cash transaction valued at $166 million. The merger is expected to close early in the first quarter of 2027, subject to customary closing conditions, including First Carolina shareholder approval and regulatory approval.
1 point · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointAdjusted net income was $51.6 million, versus $41.8 million in the third quarter of 2025.
Negative
- None.
Filing Explained
At September 30, available credit lines were $3.7 billion; the reported total liquidity ratio was 38.7%.
The filing reports quarter-end liquidity and regulatory-capital conditions:
At
The company says it maintains capital above well-capitalized regulatory requirements; its September 30 capital ratios are preliminary and subject to change.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net income: $51.3 million
Diluted earnings per share: $1.24
Net interest income: $114.8 million
+3 more
6 metrics
Net income
$51.3 million
Three months ended September 30, 2026
Diluted earnings per share
$1.24
Three months ended September 30, 2026
Net interest income
$114.8 million
Three months ended September 30, 2026
Net interest margin
3.75%
Three months ended September 30, 2026
Total loans
$9.1 billion
September 30, 2026
Total deposits
$11.1 billion
September 30, 2026
Key Terms
net interest margin, Allowance for Credit Losses, Nonperforming assets, tangible common equity, +1 more
5 terms
net interest margin financial
"net interest margin ("NIM")"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Allowance for Credit Losses financial
"The Allowance for Credit Losses decreased $0.7 million"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Nonperforming assets financial
"Total nonperforming assets totaled $45.0 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.
tangible common equity financial
"Tangible common equity ("TCE") 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.
net charge-offs financial
"annualized net loan charge-offs of 0.09%"
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.
Earnings Snapshot
Net income: $51.3 million
Third quarter ended September 30, 2026
Net income
$51.3 million
+$0.8 million from the linked quarter
Diluted earnings per share
$1.24
+$0.02 from the linked quarter
Net interest income
$114.8 million
+$3.5 million from the linked quarter
Net interest margin
3.75%
+4 basis points from the linked quarter
Total loans
$9.1 billion
+$116.2 million from June 30, 2026
Total deposits
$11.1 billion
+$41.4 million from June 30, 2026
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did FBNC perform in the third quarter of 2026?
First Bancorp reported net income of $51.3 million and diluted earnings per share of $1.24, compared with $50.5 million and $1.22 in the second quarter of 2026. Adjusted net income was $51.6 million, versus $41.8 million in the third quarter of 2025, which included a $27.9 million securities loss.
What are the terms of FBNC's First Carolina acquisition?
First Bancorp agreed to acquire First Carolina in a stock-and-cash transaction with an aggregate value of $166 million. The merger is expected to close early in the first quarter of 2027, subject to customary closing conditions, including First Carolina shareholder approval and regulatory approval.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
Form 8-K
__________________
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (Date of earliest event reported): | ||||||||
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
| of Incorporation) | File Number) | Identification Number) | ||||||||||||
| | ||||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
____________________
(Registrant’s telephone number, including area code)
Not Applicable
___________________
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol Name of each exchange on which registered:
1
First Bancorp
INDEX
| Page | |||||
| Item 2.02 – Results of Operations and Financial Condition | 3 | ||||
| Item 9.01 – Financial Statements and Exhibits | 3 | ||||
| Signatures | 3 | ||||
Exhibit 99.1 News Release dated October 21, 2026 | 4 | ||||
Exhibit 99.2 Earnings Release Presentation dated October 21, 2026 | 21 | ||||
2
Item 2.02 - Results of Operations and Financial Condition
On October 21, 2026, First Bancorp (the “Registrant” or “Company”) issued an earnings release to announce its financial results for the three month period ended September 30, 2026. The earnings release contains forward-looking statements regarding the Company and includes cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The earnings release is furnished as Exhibit 99.1. Consequently, it is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
Exhibit 99.1 – News Release issued on October 21, 2026
Exhibit 99.2 Earnings Release Presentation dated October 21, 2026
Disclosures About Forward Looking Statements
This news 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 statements 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. 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 the press release by wire services, internet services or other media.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| First Bancorp | ||||||||||||||||||||
| October 21, 2026 | By: | /s/ Richard H. Moore | ||||||||||||||||||
| Richard H. Moore | ||||||||||||||||||||
| Chief Executive Officer | ||||||||||||||||||||
3
News Release
| For Immediate Release: | For More Information, Contact: | ||||
| October 21, 2026 | Katie Doyle | ||||
336-286-8741 | |||||
First Bancorp Reports Third Quarter Results
| Third Quarter 2026 Financial Data | |||||||||||||||||
| (Dollars in 000s, except per share data) | Q3-2026 | Q2-2026 | Q3-2025 | ||||||||||||||
| Summary Income Statement | |||||||||||||||||
| Total interest income | $ | 153,979 | $ | 148,315 | $ | 144,233 | |||||||||||
| Total interest expense | 39,182 | 37,049 | 41,711 | ||||||||||||||
| Net interest income | 114,797 | 111,266 | 102,522 | ||||||||||||||
| Provision for credit losses | 1,300 | 1,169 | 3,442 | ||||||||||||||
| Noninterest income | 15,117 | 16,034 | (12,952) | ||||||||||||||
| Noninterest expenses | 63,991 | 62,761 | 60,171 | ||||||||||||||
| Income tax expense | 13,347 | 12,851 | 5,594 | ||||||||||||||
| Net income | $ | 51,276 | $ | 50,519 | $ | 20,363 | |||||||||||
| Key Metrics | |||||||||||||||||
| Diluted EPS | $ | 1.24 | $ | 1.22 | $ | 0.49 | |||||||||||
| Adjusted diluted EPS (1) | 1.24 | 1.22 | 1.01 | ||||||||||||||
| Book value per share | 41.38 | 41.49 | 38.67 | ||||||||||||||
| Tangible book value per share | 29.77 | 29.84 | 26.98 | ||||||||||||||
| ROA | 1.55 | % | 1.56 | % | 0.64 | % | |||||||||||
| Adjusted ROA (1) | 1.56 | % | 1.56 | % | 1.31 | % | |||||||||||
| ROCE | 11.71 | % | 11.89 | % | 5.14 | % | |||||||||||
| Adjusted ROCE (1) | 11.79 | % | 11.89 | % | 10.55 | % | |||||||||||
| ROTCE | 16.48 | % | 16.88 | % | 7.83 | % | |||||||||||
| Adjusted ROTCE (1) | 16.59 | % | 16.88 | % | 15.66 | % | |||||||||||
| NIM | 3.75 | % | 3.71 | % | 3.46 | % | |||||||||||
| NIM- T/E | 3.76 | % | 3.73 | % | 3.47 | % | |||||||||||
| Efficiency ratio | 49.09 | % | 49.12 | % | 66.92 | % | |||||||||||
| Quarterly NCO ratio | 0.09 | % | 0.04 | % | 0.14 | % | |||||||||||
| ACL ratio | 1.36 | % | 1.39 | % | 1.44 | % | |||||||||||
| Capital Ratios (2) | |||||||||||||||||
| Tangible common equity to tangible assets | 9.73 | % | 9.83 | % | 9.12 | % | |||||||||||
| Common equity tier I capital ratio | 14.26 | % | 14.09 | % | 14.35 | % | |||||||||||
| Total risk-based capital ratio | 16.22 | % | 16.06 | % | 16.58 | % | |||||||||||
(1)Q3-2026 adjusted to exclude impact of merger expenses of $0.5 million (after tax $0.3 million). Q3-2025 adjusted to exclude impact of securities loss of $27.9 million (after tax $21.4 million) See Appendices D, E, F, G and I.
(2)September 30, 2026 ratios are preliminary.
Third Quarter 2026 Highlights | ||
•D-EPS was $1.24 per share for the third quarter of 2026 compared to $1.22 for the linked quarter and $0.49 for the like quarter.
•The net interest margin was 3.75% for the quarter ended September 30, 2026, an expansion of 0.04% from the linked quarter and 0.29% from the like quarter.
•The efficiency ratio for the quarter ended September 30, 2026 was 49.09%, compared to 49.12% for the linked quarter and 66.92% for the like quarter.
•Total assets were $13.2 billion at September 30, 2026.
•Total loans were $9.1 billion at September 30, 2026, representing an increase of $116.2 million, or 5.1% annualized.
•Total loan yield was 5.75%, up 8 basis points from the linked quarter and 6 basis points from the like quarter.
•The yield on securities increased 5 basis points to 2.76% from 2.71% for the linked quarter.
•Total cost of funds increased 5 basis points to 1.39% for the quarter ended September 30, 2026 from 1.34% for the linked quarter and decreased 12 basis points from the like quarter.
•Average deposits were $11.1 billion, an increase of $103.8 million for the linked quarter and $263.8 million from the like quarter. Total cost of deposits was 1.35%, an increase of 4 basis points for the linked quarter and a decrease of 11 basis points from the like quarter.
•Noninterest expenses of $64.0 million represented a $1.2 million increase from the linked quarter and a $3.8 million increase from the like quarter. The linked quarter increase was driven by a $1.0 million increase in Total personnel expense and a $0.5 million increase in Merger and acquisition expenses.
•Noninterest-bearing checking accounts were $3.6 billion, representing 33% of total deposits at September 30, 2026.
•The loan-to-deposit ratio was 81.8% as of September 30, 2026.
•The total risk-based capital ratio was 16.22% as of September 30, 2026, an increase of 0.16% from the linked quarter and a contraction of 0.36% from the like quarter.
•Related to the pending acquisition of Carolina Bank, scheduled to close in early 2027, merger expenses of $0.5 million were recognized during the quarter.
1
 | Third Quarter 2026 Results | ||||
SOUTHERN PINES, N.C. - First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited third quarter earnings today. The Company reported net income of $51.3 million, or $1.24 diluted earnings per share ("D-EPS"), for the three months ended September 30, 2026 compared to $50.5 million, or $1.22 D-EPS, for the three months ended June 30, 2026 ("linked quarter") and $20.4 million, or $0.49 D-EPS, for the third quarter of 2025 ("like quarter"). Adjusting for the securities loss-earnback transaction completed in the third quarter of 2025, adjusted net income was $41.8 million, or $1.01 adjusted D-EPS, for the like quarter.
The Company continued to enhance net interest income and net interest margin ("NIM") during the third quarter of 2026. The Company recorded net interest income of $114.8 million for the current quarter, compared to $111.3 million for the linked quarter and $102.5 million for the like quarter. NIM for the third quarter of 2026 expanded to 3.75% from 3.71% for the linked quarter and 3.46% for the like quarter.
Noninterest expenses were $64.0 million for the third quarter of 2026, up from $62.8 million for the linked quarter, and $60.2 million for the like quarter. Merger and acquisition expenses of $0.5 million were recognized during the third quarter of 2026 related to the pending Carolina Bank acquisition. The efficiency ratio was 49.09% for the quarter ended September 30, 2026 , compared to 49.12% for the linked quarter and 66.92% for the like quarter.
Richard H. Moore, Chairman and CEO of the Company, stated, “First Bancorp delivered another strong quarter, reflecting disciplined balance sheet management, strong credit quality, loan growth and continued operating efficiency. Our performance through the first nine months of 2026 demonstrates the strength of our franchise, while liquidity and capital remain solid. We are pleased with our year-to-date results and remain confident in our ability to finish the year on a strong note. We also look forward to welcoming the Carolina Bank team and the enhancements to our South Carolina franchise."
| Net Interest Income and Net Interest Margin | ||
Net interest income for the third quarter of 2026 was $114.8 million, an increase of 3.2% from the linked quarter of $111.3 million and an increase of 12.0% from the like quarter of $102.5 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. For the linked quarter, the cost of deposits increased 0.04% partially a result of the rate increase during the quarter by the Federal Reserve.
The Company’s NIM for the third quarter of 2026 was 3.75%, an increase of 4 basis points from the linked quarter and 29 basis points from the like quarter.
The linked quarter expansion of NIM was driven by a $152.6 million increase in average loans along with an 8 basis points expansion in loan yield. Additionally, taxable securities contributed an additional $1.0 million from increased balances and higher yields. Offsetting these increases, the cost of interest bearing deposits increased 7 basis points on growth of $83.5 million in average balances. Driving these increases, the average balance of money market deposits increased $135.2 million while the cost of those deposits increased 7 basis points.
The like quarter expansion of NIM was driven by growth of $751.5 million in average loans, coupled with a 6 basis point yield increase as well as the cost of interest bearing deposits decreasing 17 basis points. The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.4% of average interest-earning assets to 74.3% in the current quarter, while securities contracted from 24.8% of average interest-earning assets to 22.5% and short-term investments contracted from 4.8% of average interest-earning assets to 3.1% .
2
| Third Quarter 2026 Results | ||||
| For the Three Months Ended | ||||||||||||||||||||
| YIELD INFORMATION | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| Yield on loans | 5.75% | 5.67% | 5.69% | |||||||||||||||||
| Yield on securities | 2.76% | 2.71% | 2.55% | |||||||||||||||||
| Yield on other earning assets | 4.08% | 3.99% | 4.64% | |||||||||||||||||
| Yield on all interest-earning assets | 5.02% | 4.95% | 4.86% | |||||||||||||||||
| Cost of interest-bearing deposits | 2.01% | 1.94% | 2.18% | |||||||||||||||||
| Cost of borrowings | 6.71% | 6.64% | 7.20% | |||||||||||||||||
| Cost of total interest-bearing liabilities | 2.06% | 1.99% | 2.24% | |||||||||||||||||
| Total cost of funds | 1.39% | 1.34% | 1.51% | |||||||||||||||||
| Cost of total deposits | 1.35% | 1.31% | 1.46% | |||||||||||||||||
Net interest margin (1) | 3.75% | 3.71% | 3.46% | |||||||||||||||||
Net interest margin - tax-equivalent (2) | 3.76% | 3.73% | 3.47% | |||||||||||||||||
| Average prime rate | 6.79% | 6.75% | 7.46% | |||||||||||||||||
(1)Calculated by dividing annualized net interest income by average earning assets for the period.
(2)Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense.
See Appendix J regarding loan purchase discount accretion and its impact on the Company's NIM.
| Provision for Credit Losses and Credit Quality | ||
For the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, the Company recorded $1.3 million, $1.2 million and $3.4 million in provision for credit losses, respectively. The provision for the third quarter of 2026 was driven by net charge-offs of $2.1 million, partially offset by improved economic factors and the reversal of the remaining incremental reserve for potential exposure from Hurricane Helene. The Allowance for Credit Losses decreased $0.7 million to $124.2 million, or 1.36% of loans. Additionally, the $124 thousand reversal of provision for unfunded commitments during the quarter was primarily the result of lower reserve rates.
Asset quality remained strong with annualized net loan charge-offs of 0.09% for the third quarter of 2026. Total nonperforming assets ("NPAs") totaled $45.0 million at September 30, 2026, or 0.34% of total assets, consistent with June 30, 2026 and up slightly from 0.31% at September 30, 2025.
3
| Third Quarter 2026 Results | ||||
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| Nonperforming assets | ||||||||||||||||||||
| Nonaccrual loans | $ | 44,166 | $ | 44,283 | $ | 37,289 | ||||||||||||||
| Accruing loans > 90 days past due | — | — | — | |||||||||||||||||
| Total nonperforming loans | 44,166 | 44,283 | 37,289 | |||||||||||||||||
| Foreclosed real estate | $ | 793 | 659 | 1,718 | ||||||||||||||||
| Total nonperforming assets | $ | 44,959 | $ | 44,942 | $ | 39,007 | ||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Quarterly net charge-offs to average loans - annualized | 0.09 | % | 0.04 | % | 0.14 | % | ||||||||||||||
| Nonperforming loans to total loans | 0.49 | % | 0.49 | % | 0.44 | % | ||||||||||||||
| Nonperforming assets to total assets | 0.34 | % | 0.34 | % | 0.31 | % | ||||||||||||||
| Allowance for credit losses to total loans | 1.36 | % | 1.39 | % | 1.44 | % | ||||||||||||||
| Noninterest Income | ||
Total noninterest income for the third quarter of 2026 was $15.1 million, a $0.9 million decrease from the linked quarter, primarily related to a $0.9 million decrease in Other income, net. Adjusting for the $27.9 million securities loss earnback transaction in the third quarter of 2025, the current quarter reflected a 1.1% increase from an adjusted $15.0 million for the like quarter.
| Noninterest Expenses | ||
Noninterest expenses amounted to $64.0 million for the third quarter of 2026 compared to $62.8 million for the linked quarter and $60.2 million for the like quarter. The $1.2 million, or 2.0%, increase in noninterest expense from the linked quarter was driven by a $1.0 million increase in Total personnel expense. The $3.8 million increase from the like quarter was driven by a $2.6 million increase in Total personnel expense. While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.09% for the quarter ended September 30, 2026, compared to 49.12% for the linked quarter and 66.92% for the like quarter. We recognized $0.5 million of Merger and acquisition expenses during the third quarter of 2026 related to the pending Carolina Bank acquisition.
| Income Taxes | ||
Income tax expense totaled $13.3 million for the third quarter of 2026 compared to $12.9 million for the linked quarter and $5.6 million for the like quarter, reflecting effective tax rates of 20.7%, 20.3% and 21.6% for the respective periods.
| Balance Sheet | ||
Total assets at September 30, 2026 were $13.2 billion, an increase of $109.9 million, or 3.3% annualized, from the linked quarter and $401.3 million, or 3.1%, from a year earlier.
4
| Third Quarter 2026 Results | ||||
Key period end balance sheet components are presented below.
BALANCES ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | Change 3Q26 vs 2Q26 | Change 3Q26 vs 3Q25 | |||||||||||||||||||||||||||
| Total assets | $ | 13,151,553 | $ | 13,041,615 | $ | 12,750,263 | 0.8% | 3.1% | ||||||||||||||||||||||||
| Loans | 9,104,899 | 8,988,748 | 8,419,224 | 1.3% | 8.1% | |||||||||||||||||||||||||||
| Investment securities | 2,494,124 | 2,448,787 | 2,680,401 | 1.9% | (6.9)% | |||||||||||||||||||||||||||
| Total cash and cash equivalents | 451,711 | 550,332 | 597,975 | (17.9)% | (24.5)% | |||||||||||||||||||||||||||
| Noninterest-bearing deposits | 3,626,442 | 3,597,565 | 3,580,560 | 0.8% | 1.3% | |||||||||||||||||||||||||||
| Interest-bearing deposits | 7,499,862 | 7,487,302 | 7,300,610 | 0.2% | 2.7% | |||||||||||||||||||||||||||
| Borrowings | 74,793 | 74,717 | 92,421 | 0.1% | (19.1)% | |||||||||||||||||||||||||||
| Shareholders’ equity | 1,713,145 | 1,716,460 | 1,603,323 | (0.2)% | 6.8% | |||||||||||||||||||||||||||
Driven by the purchase of $150.0 million of US Treasury securities during the quarter, partially offset by principal paydowns and maturities and increased unrealized losses on available for sale securities, total investment securities increased to $2.5 billion at September 30, 2026, a $45.3 million increase from the linked quarter. Total unrealized losses on available for sale investment securities were $263.8 million at September 30, 2026, as compared to $204.5 million at June 30, 2026 and $251.8 million at September 30, 2025.
Total loans were $9.1 billion at September 30, 2026, an increase of $116.2 million, or 5.1% annualized, from June 30, 2026 and an increase of $685.7 million, or 8.1%, from September 30, 2025. As of September 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 6.3% of the total portfolio at September 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.5 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
| LOAN PORTFOLIO | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 1,041,062 | 11 | % | $ | 1,014,295 | 11 | % | $ | 904,226 | 11 | % | ||||||||||||||||||||||||||
| Construction, development & other land loans | 932,510 | 10 | % | 847,912 | 10 | % | 688,302 | 8 | % | |||||||||||||||||||||||||||||
| Commercial real estate - owner occupied | 1,382,601 | 15 | % | 1,358,100 | 15 | % | 1,337,345 | 16 | % | |||||||||||||||||||||||||||||
| Commercial real estate - non-owner occupied | 2,963,696 | 33 | % | 2,974,749 | 33 | % | 2,773,349 | 33 | % | |||||||||||||||||||||||||||||
| Multi-family real estate | 614,797 | 7 | % | 619,489 | 7 | % | 535,681 | 6 | % | |||||||||||||||||||||||||||||
| Residential 1-4 family real estate | 1,726,802 | 19 | % | 1,728,367 | 19 | % | 1,743,884 | 21 | % | |||||||||||||||||||||||||||||
| Home equity loans/lines of credit | 378,419 | 4 | % | 377,949 | 4 | % | 365,488 | 4 | % | |||||||||||||||||||||||||||||
| Consumer loans | 66,060 | 1 | % | 68,692 | 1 | % | 70,031 | 1 | % | |||||||||||||||||||||||||||||
| Loans, gross | 9,105,947 | 100 | % | 8,989,553 | 100 | % | 8,418,306 | 100 | % | |||||||||||||||||||||||||||||
| Unamortized net deferred loan fees/(costs) | (1,048) | (805) | 918 | |||||||||||||||||||||||||||||||||||
| Total loans | $ | 9,104,899 | $ | 8,988,748 | $ | 8,419,224 | ||||||||||||||||||||||||||||||||
Total deposits were $11.1 billion at September 30, 2026, an increase of $41.4 million, or 1.5% annualized, from June 30, 2026 and $245.1 million, or 2.3%, from September 30, 2025.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at September 30, 2026. As presented in the table below, our deposit mix has remained relatively consistent.
5
| Third Quarter 2026 Results | ||||
| DEPOSIT PORTFOLIO | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||||||||||||
| Noninterest-bearing checking accounts | $ | 3,626,442 | 33 | % | $ | 3,597,565 | 32 | % | $ | 3,580,560 | 33 | % | ||||||||||||||||||||||||||
| Interest-bearing checking accounts | 1,402,172 | 13 | % | 1,422,592 | 13 | % | 1,418,378 | 13 | % | |||||||||||||||||||||||||||||
| Money market accounts | 4,806,229 | 43 | % | 4,754,782 | 43 | % | 4,527,728 | 41 | % | |||||||||||||||||||||||||||||
| Savings accounts | 505,937 | 4 | % | 510,392 | 5 | % | 532,462 | 5 | % | |||||||||||||||||||||||||||||
| Other time deposits | 466,980 | 4 | % | 475,744 | 4 | % | 504,942 | 5 | % | |||||||||||||||||||||||||||||
| Time deposits >$250,000 | 318,544 | 3 | % | 318,821 | 3 | % | 312,255 | 3 | % | |||||||||||||||||||||||||||||
| Total customer deposits | 11,126,304 | 100 | % | 11,079,896 | 100 | % | 10,876,325 | 100 | % | |||||||||||||||||||||||||||||
| Brokered deposits | — | — | % | 4,971 | — | % | 4,845 | — | % | |||||||||||||||||||||||||||||
| Total deposits | $ | 11,126,304 | 100 | % | $ | 11,084,867 | 100 | % | $ | 10,881,170 | 100 | % | ||||||||||||||||||||||||||
As of September 30, 2026 and June 30, 2026, estimated insured deposits totaled $6.6 billion, or 58.9%, and $6.5 billion, or 58.9%, of total deposits, respectively. In addition, at September 30, 2026 and June 30, 2026, there were collateralized deposits of $694.0 million and $748.7 million, respectively, such that approximately 65.2% and 65.7%, 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 September 30, 2026 of 16.22%, up from the linked quarter ratio of 16.06% and down from the like quarter ratio of 16.58%.
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 9.73% at September 30, 2026, a decrease of 10 basis points from the linked quarter and a increase of 61 basis points from September 30, 2025. The increase in TCE from the like quarter was driven by increased retained earnings. 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 | September 30, 2026 (estimated) | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| Tangible common equity to tangible assets (non-GAAP) | 9.73% | 9.83% | 9.12% | |||||||||||||||||
| Common equity tier I capital ratio | 14.26% | 14.09% | 14.35% | |||||||||||||||||
| Tier I leverage ratio | 11.79% | 11.60% | 11.18% | |||||||||||||||||
| Tier I risk-based capital ratio | 14.97% | 14.81% | 15.14% | |||||||||||||||||
| Total risk-based capital ratio | 16.22% | 16.06% | 16.58% | |||||||||||||||||
| 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 September 30, 2026 was 15.1%. In addition, the Company had approximately $3.7 billion in available lines of credit at that date resulting in a total liquidity ratio of 38.7%.
6
| Third Quarter 2026 Results | ||||
| About First Bancorp | ||
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $13.2 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 News 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 News 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, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on common equity and the adjusted efficiency ratio.
7
| Third Quarter 2026 Results | ||||
First Bancorp and Subsidiaries Financial Summary | ||
| CONSOLIDATED INCOME STATEMENT | ||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
| ($ in thousands except per share data - unaudited) | September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 131,056 | $ | 125,845 | $ | 118,855 | $ | 377,648 | $ | 342,273 | ||||||||||||||||||||||
| Interest on investment securities: | ||||||||||||||||||||||||||||||||
| Taxable interest income | 17,882 | 16,925 | 17,571 | 52,363 | 49,952 | |||||||||||||||||||||||||||
| Tax-exempt interest income | 1,113 | 1,115 | 1,114 | 3,343 | 3,346 | |||||||||||||||||||||||||||
| Other interest income | 3,928 | 4,430 | 6,693 | 11,330 | 18,017 | |||||||||||||||||||||||||||
| Total interest income | 153,979 | 148,315 | 144,233 | 444,684 | 413,588 | |||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Interest on deposits | 37,919 | 35,812 | 40,035 | 107,777 | 116,559 | |||||||||||||||||||||||||||
| Interest on borrowings | 1,263 | 1,237 | 1,676 | 3,728 | 4,994 | |||||||||||||||||||||||||||
| Total interest expense | 39,182 | 37,049 | 41,711 | 111,505 | 121,553 | |||||||||||||||||||||||||||
| Net interest income | 114,797 | 111,266 | 102,522 | 333,179 | 292,035 | |||||||||||||||||||||||||||
| Provision for credit losses | 1,300 | 1,169 | 3,442 | 5,552 | 6,770 | |||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 113,497 | 110,097 | 99,080 | 327,627 | 285,265 | |||||||||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 4,574 | 4,205 | 4,225 | 12,733 | 11,968 | |||||||||||||||||||||||||||
| Other service charges, commissions, and fees | 5,500 | 5,986 | 6,322 | 17,428 | 18,846 | |||||||||||||||||||||||||||
| Presold mortgage loan fees and gains on sale | 379 | 660 | 471 | 1,708 | 1,236 | |||||||||||||||||||||||||||
| Commissions from sales of insurance and financial products | 1,611 | 1,707 | 1,678 | 4,810 | 4,474 | |||||||||||||||||||||||||||
| SBA loan sale gains | 924 | 529 | 869 | 2,356 | 1,072 | |||||||||||||||||||||||||||
| Bank-owned life insurance income | 1,395 | 1,358 | 1,289 | 4,093 | 3,738 | |||||||||||||||||||||||||||
| Security losses, net | — | — | (27,905) | — | (27,905) | |||||||||||||||||||||||||||
| Other income, net | 734 | 1,589 | 99 | 3,201 | 867 | |||||||||||||||||||||||||||
| Total noninterest income | 15,117 | 16,034 | (12,952) | 46,329 | 14,296 | |||||||||||||||||||||||||||
| Noninterest expenses | ||||||||||||||||||||||||||||||||
| Salaries expense | 32,652 | 31,529 | 31,065 | 94,159 | 88,731 | |||||||||||||||||||||||||||
| Employee benefit expense | 6,810 | 6,958 | 5,751 | 20,284 | 18,033 | |||||||||||||||||||||||||||
| Total personnel expense | 39,462 | 38,487 | 36,816 | 114,443 | 106,764 | |||||||||||||||||||||||||||
| Occupancy and equipment related expense | 5,253 | 4,961 | 5,145 | 15,569 | 15,532 | |||||||||||||||||||||||||||
| Merger and acquisition expenses | 450 | — | — | 450 | — | |||||||||||||||||||||||||||
| Intangibles amortization expense | 1,153 | 1,199 | 1,394 | 3,599 | 4,378 | |||||||||||||||||||||||||||
| Other operating expenses | 17,673 | 18,114 | 16,816 | 52,909 | 50,332 | |||||||||||||||||||||||||||
| Total noninterest expenses | 63,991 | 62,761 | 60,171 | 186,970 | 177,006 | |||||||||||||||||||||||||||
| Income before income taxes | 64,623 | 63,370 | 25,957 | 186,986 | 122,555 | |||||||||||||||||||||||||||
| Income tax expense | 13,347 | 12,851 | 5,594 | 38,532 | 27,220 | |||||||||||||||||||||||||||
| Net Income | $ | 51,276 | $ | 50,519 | $ | 20,363 | $ | 148,454 | $ | 95,335 | ||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||||||||
| Basic | $ | 1.24 | $ | 1.22 | $ | 0.49 | $ | 3.59 | $ | 2.30 | ||||||||||||||||||||||
| Diluted | 1.24 | 1.22 | 0.49 | 3.59 | 2.30 | |||||||||||||||||||||||||||
8
| Third Quarter 2026 Results | ||||
First Bancorp and Subsidiaries Financial Summary | ||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| ($ in thousands - unaudited) | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks, noninterest bearing | $ | 131,879 | $ | 128,424 | $ | 138,369 | ||||||||||||||
| Due from banks, interest bearing | 319,832 | 421,908 | 459,606 | |||||||||||||||||
| Total cash and cash equivalents | 451,711 | 550,332 | 597,975 | |||||||||||||||||
| Securities available for sale | 1,986,024 | 1,939,075 | 2,165,668 | |||||||||||||||||
| Securities held to maturity | 508,100 | 509,712 | 514,733 | |||||||||||||||||
| Presold mortgages and SBA loans held for sale | 2,677 | 12,304 | 4,032 | |||||||||||||||||
| Loans | 9,104,899 | 8,988,748 | 8,419,224 | |||||||||||||||||
| Allowance for credit losses on loans | (124,241) | (124,894) | (120,948) | |||||||||||||||||
| Net loans | 8,980,658 | 8,863,854 | 8,298,276 | |||||||||||||||||
| Premises and equipment, net | 140,053 | 138,129 | 141,441 | |||||||||||||||||
| Accrued interest receivable | 38,594 | 38,272 | 35,986 | |||||||||||||||||
| Goodwill | 478,750 | 478,750 | 478,750 | |||||||||||||||||
| Other intangible assets, net | 13,633 | 14,786 | 18,526 | |||||||||||||||||
| Bank-owned life insurance | 197,379 | 195,984 | 191,911 | |||||||||||||||||
| Other assets | 353,974 | 300,417 | 302,965 | |||||||||||||||||
| Total assets | $ | 13,151,553 | $ | 13,041,615 | $ | 12,750,263 | ||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 3,626,442 | $ | 3,597,565 | $ | 3,580,560 | ||||||||||||||
| Interest-bearing deposits | 7,499,862 | 7,487,302 | 7,300,610 | |||||||||||||||||
| Total deposits | 11,126,304 | 11,084,867 | 10,881,170 | |||||||||||||||||
| Borrowings | 74,793 | 74,717 | 92,421 | |||||||||||||||||
| Accrued interest payable | 4,092 | 3,813 | 4,436 | |||||||||||||||||
| Other liabilities | 233,219 | 161,758 | 168,913 | |||||||||||||||||
| Total liabilities | 11,438,408 | 11,325,155 | 11,146,940 | |||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
| Common stock | 967,738 | 966,777 | 973,235 | |||||||||||||||||
| Retained earnings | 948,317 | 906,976 | 823,483 | |||||||||||||||||
| Stock in rabbi trust assumed in acquisition | (541) | (534) | (877) | |||||||||||||||||
| Rabbi trust obligation | 541 | 534 | 877 | |||||||||||||||||
| Accumulated other comprehensive (loss) income | (202,910) | (157,293) | (193,395) | |||||||||||||||||
| Total shareholders’ equity | 1,713,145 | 1,716,460 | 1,603,323 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 13,151,553 | $ | 13,041,615 | $ | 12,750,263 | ||||||||||||||
9
| Third Quarter 2026 Results | ||||
First Bancorp and Subsidiaries Financial Summary | ||
| TREND INFORMATION | ||||||||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||
PERFORMANCE RATIOS (annualized) | ||||||||||||||||||||||||||||||||
ROA (1) | 1.55 | % | 1.56 | % | 1.48 | % | 0.49 | % | 0.64 | % | ||||||||||||||||||||||
Adjusted ROA (2) | 1.56 | % | 1.56 | % | 1.48 | % | 1.54 | % | 1.31 | % | ||||||||||||||||||||||
ROCE (3) | 11.71 | % | 11.89 | % | 11.22 | % | 3.83 | % | 5.14 | % | ||||||||||||||||||||||
Adjusted ROCE (4) | 11.79 | % | 11.89 | % | 11.22 | % | 12.01 | % | 10.55 | % | ||||||||||||||||||||||
ROTCE (5) | 16.48 | % | 16.88 | % | 16.05 | % | 5.80 | % | 7.83 | % | ||||||||||||||||||||||
Adjusted ROTCE (6) | 16.59 | % | 16.88 | % | 16.05 | % | 17.45 | % | 15.66 | % | ||||||||||||||||||||||
Efficiency ratio (7) | 49.09 | % | 49.12 | % | 49.05 | % | 73.75 | % | 66.92 | % | ||||||||||||||||||||||
Adjusted efficiency ratio (7) | 48.74 | % | 49.12 | % | 49.05 | % | 48.53 | % | 51.07 | % | ||||||||||||||||||||||
| COMMON SHARE DATA | ||||||||||||||||||||||||||||||||
| Cash dividends declared - common | $ | 0.24 | $ | 0.24 | $ | 0.24 | $ | 0.23 | $ | 0.23 | ||||||||||||||||||||||
| Book value per common share | $ | 41.38 | $ | 41.49 | $ | 40.68 | $ | 39.89 | $ | 38.67 | ||||||||||||||||||||||
Tangible book value per share (8) | $ | 29.77 | $ | 29.84 | $ | 29.01 | $ | 28.23 | $ | 26.98 | ||||||||||||||||||||||
| Common shares outstanding at end of period | 41,399,233 | 41,374,221 | 41,375,026 | 41,466,227 | 41,465,437 | |||||||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 41,393,792 | 41,375,377 | 41,459,357 | 41,481,132 | 41,481,542 | |||||||||||||||||||||||||||
CAPITAL INFORMATION (preliminary for current quarter) | ||||||||||||||||||||||||||||||||
Tangible common equity to tangible assets (9) | 9.73 | % | 9.83 | % | 9.63 | % | 9.61 | % | 9.12 | % | ||||||||||||||||||||||
| Common equity tier I capital ratio | 14.26 | % | 14.09 | % | 14.13 | % | 14.10 | % | 14.35 | % | ||||||||||||||||||||||
| Total risk-based capital ratio | 16.22 | % | 16.06 | % | 16.12 | % | 16.12 | % | 16.58 | % | ||||||||||||||||||||||
(1)Calculated by dividing annualized net income by average assets.
(2)See Appendix E for a reconciliation of ROA to adjusted ROA.
(3)Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix F for the components of the calculation.
(4)See Appendix F for a reconciliation of ROCE to adjusted ROCE.
(5)Return on average tangible common equity is a non-GAAP financial measure. See Appendix G for the components of the calculation and the reconciliation of average common equity to average TCE.
(6)See Appendix G for a reconciliation of ROTCE to adjusted ROTCE.
(7)See Appendix I for a reconciliation of the efficiency ratio to the adjusted efficiency ratio.
(8)Tangible book value per share is a non-GAAP financial measure. See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.
(9)Tangible common equity ratio is a non-GAAP financial measure. See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
| INCOME STATEMENT | For the Three Months Ended | |||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Net interest income | $ | 114,797 | $ | 111,266 | $ | 107,116 | $ | 106,199 | $ | 102,522 | ||||||||||||||||||||||
| Provision for credit losses | 1,300 | 1,169 | 3,083 | 4,732 | 3,442 | |||||||||||||||||||||||||||
| Noninterest income | 15,117 | 16,034 | 15,178 | (22,299) | (12,952) | |||||||||||||||||||||||||||
| Merger and acquisition costs | 450 | — | — | — | — | |||||||||||||||||||||||||||
| Noninterest expense | 63,541 | 62,761 | 60,218 | 62,223 | 60,171 | |||||||||||||||||||||||||||
| Income before income taxes | 64,623 | 63,370 | 58,993 | 16,945 | 25,957 | |||||||||||||||||||||||||||
| Income tax expense | 13,347 | 12,851 | 12,334 | 1,232 | 5,594 | |||||||||||||||||||||||||||
| Net Income | $ | 51,276 | $ | 50,519 | $ | 46,659 | $ | 15,713 | $ | 20,363 | ||||||||||||||||||||||
| Earnings per common share - diluted | $ | 1.24 | $ | 1.22 | $ | 1.13 | $ | 0.38 | $ | 0.49 | ||||||||||||||||||||||
10
| Third Quarter 2026 Results | ||||
First Bancorp and Subsidiaries Financial Summary | ||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 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) | $ | 9,049,189 | $ | 131,056 | 5.75 | % | $ | 8,896,592 | $ | 125,845 | 5.67 | % | $ | 8,297,643 | $ | 118,855 | 5.69 | % | |||||||||||||||||||||||||||||||||||
| Taxable securities | 2,464,205 | 17,882 | 2.90 | % | 2,384,076 | 16,925 | 2.84 | % | 2,637,711 | 17,571 | 2.66 | % | |||||||||||||||||||||||||||||||||||||||||
| Non-taxable securities | 282,540 | 1,113 | 1.58 | % | 283,645 | 1,115 | 1.57 | % | 286,750 | 1,114 | 1.56 | % | |||||||||||||||||||||||||||||||||||||||||
| Short-term investments, primarily interest-bearing cash | 381,784 | 3,928 | 4.08 | % | 444,845 | 4,430 | 3.99 | % | 571,922 | 6,693 | 4.64 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 12,177,718 | 153,979 | 5.02 | % | 12,009,158 | 148,315 | 4.95 | % | 11,794,026 | 144,233 | 4.86 | % | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 129,562 | 136,181 | 149,771 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and equipment | 139,675 | 139,177 | 141,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 651,018 | 664,823 | 554,361 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 13,097,973 | $ | 12,949,339 | $ | 12,640,016 | |||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 1,383,578 | $ | 2,159 | 0.62 | % | $ | 1,420,738 | $ | 2,233 | 0.63 | % | $ | 1,403,683 | $ | 2,420 | 0.68 | % | |||||||||||||||||||||||||||||||||||
| Money market deposits | 4,801,217 | 30,306 | 2.50 | % | 4,666,044 | 28,268 | 2.43 | % | 4,510,662 | 31,674 | 2.79 | % | |||||||||||||||||||||||||||||||||||||||||
| Savings deposits | 509,584 | 261 | 0.20 | % | 516,779 | 250 | 0.19 | % | 535,464 | 267 | 0.20 | % | |||||||||||||||||||||||||||||||||||||||||
| Other time deposits | 475,896 | 2,810 | 2.34 | % | 487,071 | 2,790 | 2.30 | % | 514,143 | 3,029 | 2.34 | % | |||||||||||||||||||||||||||||||||||||||||
| Time deposits >$250,000 | 318,347 | 2,383 | 2.97 | % | 314,506 | 2,271 | 2.90 | % | 328,207 | 2,645 | 3.20 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 7,488,622 | 37,919 | 2.01 | % | 7,405,138 | 35,812 | 1.94 | % | 7,292,159 | 40,035 | 2.18 | % | |||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 719 | 1 | 0.61 | % | 757 | 1 | 0.72 | % | 785 | 1 | 0.49 | % | |||||||||||||||||||||||||||||||||||||||||
| Long-term borrowings | 74,038 | 1,262 | 6.76 | % | 73,950 | 1,236 | 6.70 | % | 91,564 | 1,675 | 7.26 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 7,563,379 | 39,182 | 2.06 | % | 7,479,845 | 37,049 | 1.99 | % | 7,384,508 | 41,711 | 2.24 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing checking | 3,617,819 | 3,597,511 | 3,550,499 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 180,012 | 167,595 | 133,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,736,763 | 1,704,388 | 1,571,104 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | 13,097,973 | 12,949,339 | 12,640,016 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net yield on interest-earning assets and net interest income | $ | 114,797 | 3.75 | % | $ | 111,266 | 3.71 | % | $ | 102,522 | 3.46 | % | |||||||||||||||||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ | 115,247 | 3.76 | % | $ | 111,732 | 3.73 | % | $ | 102,861 | 3.47 | % | |||||||||||||||||||||||||||||||||||||||||
| Interest rate spread | 2.96 | % | 2.96 | % | 2.62 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Average prime rate | 6.79 | % | 6.75 | % | 7.46 | % | |||||||||||||||||||||||||||||||||||||||||||||||
(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 $0.8 million, $1.1 million and $1.6 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
(3)Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
11
| Third Quarter 2026 Results | ||||
First Bancorp and Subsidiaries Financial Summary | ||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
| For the Nine Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| ($ in thousands) | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
Loans (1) (2) | $ | 8,910,149 | $ | 377,648 | 5.66 | % | $ | 8,198,263 | $ | 342,273 | 5.58 | % | |||||||||||||||||||||||
| Taxable securities | 2,430,221 | 52,363 | 2.87 | % | 2,654,737 | 49,952 | 2.51 | % | |||||||||||||||||||||||||||
| Non-taxable securities | 283,625 | 3,343 | 1.57 | % | 287,826 | 3,346 | 1.55 | % | |||||||||||||||||||||||||||
| Short-term investments, primarily interest-bearing cash | 368,086 | 11,330 | 4.12 | % | 527,322 | 18,017 | 4.57 | % | |||||||||||||||||||||||||||
| Total interest-earning assets | 11,992,081 | 444,684 | 4.95 | % | 11,668,148 | 413,588 | 4.74 | % | |||||||||||||||||||||||||||
| Cash and due from banks | 137,558 | 145,593 | |||||||||||||||||||||||||||||||||
| Premises and equipment | 139,542 | 142,333 | |||||||||||||||||||||||||||||||||
| Other assets | 668,755 | 487,172 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 12,937,936 | $ | 12,443,246 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 1,406,851 | $ | 6,621 | 0.63 | % | $ | 1,423,164 | $ | 7,343 | 0.69 | % | |||||||||||||||||||||||
| Money market deposits | 4,678,750 | 85,091 | 2.43 | % | 4,403,000 | 90,801 | 2.76 | % | |||||||||||||||||||||||||||
| Savings deposits | 516,775 | 752 | 0.19 | % | 537,790 | 759 | 0.19 | % | |||||||||||||||||||||||||||
| Other time deposits | 485,957 | 8,418 | 2.32 | % | 535,515 | 9,470 | 2.36 | % | |||||||||||||||||||||||||||
| Time deposits >$250,000 | 312,367 | 6,895 | 2.95 | % | 342,011 | 8,186 | 3.20 | % | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 7,400,700 | 107,777 | 1.95 | % | 7,241,480 | 116,559 | 2.15 | % | |||||||||||||||||||||||||||
| Short-term borrowings | 740 | 4 | 0.65 | % | 809 | 4 | 0.74 | % | |||||||||||||||||||||||||||
| Long-term borrowings | 73,949 | 3,724 | 6.73 | % | 91,362 | 4,990 | 7.30 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 7,475,389 | 111,505 | 1.99 | % | 7,333,651 | 121,553 | 2.22 | % | |||||||||||||||||||||||||||
| Noninterest-bearing checking | 3,577,272 | 3,483,214 | |||||||||||||||||||||||||||||||||
| Other liabilities | 175,787 | 102,828 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,709,488 | 1,523,553 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | 12,937,936 | 12,443,246 | |||||||||||||||||||||||||||||||||
| Net yield on interest-earning assets and net interest income | $ | 333,179 | 3.71 | % | $ | 292,035 | 3.34 | % | |||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ | 334,574 | 3.73 | % | $ | 293,022 | 3.35 | % | |||||||||||||||||||||||||||
| Interest rate spread | 2.96 | % | 2.52 | % | |||||||||||||||||||||||||||||||
| Average prime rate | 6.76 | % | 7.49 | % | |||||||||||||||||||||||||||||||
(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 $2.9 million and $4.8 million for the nine months ended September 30, 2026 and September 30, 2025, respectively.
(3)Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
12
| Third Quarter 2026 Results | ||||
| Reconciliation of non-GAAP measures | ||
APPENDIX A: Reconciliation of Common Equity to Tangible Common Equity ("TCE")
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Total shareholders' common equity | $ | 1,713,145 | $ | 1,716,460 | $ | 1,682,950 | $ | 1,654,168 | $ | 1,603,323 | ||||||||||||||||||||||
| Less: Goodwill and other intangibles, net of related taxes | (480,741) | (481,673) | (482,640) | (483,644) | (484,623) | |||||||||||||||||||||||||||
| Tangible common equity | $ | 1,232,404 | $ | 1,234,787 | $ | 1,200,310 | $ | 1,170,524 | $ | 1,118,700 | ||||||||||||||||||||||
APPENDIX B: Calculation of Tangible Book Value Per Share
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands except per share data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
Tangible common equity (Appendix A) | $ | 1,232,404 | $ | 1,234,787 | $ | 1,200,310 | $ | 1,170,524 | $ | 1,118,700 | ||||||||||||||||||||||
| Common shares outstanding | 41,399,233 | 41,374,221 | 41,375,026 | 41,466,227 | 41,465,437 | |||||||||||||||||||||||||||
| Tangible book value per common share | $ | 29.77 | $ | 29.84 | $ | 29.01 | $ | 28.23 | $ | 26.98 | ||||||||||||||||||||||
APPENDIX C: TCE Ratio
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
Tangible common equity (Appendix A) | $ | 1,232,404 | $ | 1,234,787 | $ | 1,200,310 | $ | 1,170,524 | $ | 1,118,700 | ||||||||||||||||||||||
| Total assets | 13,151,553 | 13,041,615 | 12,947,734 | 12,668,339 | 12,750,263 | |||||||||||||||||||||||||||
| Less: Goodwill and other intangibles, net of related taxes | (480,741) | (481,673) | (482,640) | (483,644) | (484,623) | |||||||||||||||||||||||||||
| Tangible assets ("TA") | $ | 12,670,812 | $ | 12,559,942 | $ | 12,465,094 | $ | 12,184,695 | $ | 12,265,640 | ||||||||||||||||||||||
| TCE to TA ratio | 9.73 | % | 9.83 | % | 9.63 | % | 9.61 | % | 9.12 | % | ||||||||||||||||||||||
13
| Third Quarter 2026 Results | ||||
APPENDIX D: Adjusted Net Income and Adjusted D-EPS
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||
| Net income (A) | $ | 51,276 | $ | 50,519 | $ | 20,363 | $ | 148,454 | $ | 95,335 | ||||||||||||||||||||||
| Impact of loss-earnback | ||||||||||||||||||||||||||||||||
| Securities loss from loss-earnback | — | — | 27,905 | — | 27,905 | |||||||||||||||||||||||||||
| Less, tax impact | — | — | (6,472) | — | (6,472) | |||||||||||||||||||||||||||
| After-tax impact of securities loss-earnback | — | — | 21,433 | — | 21,433 | |||||||||||||||||||||||||||
| Impact of Merger and acquisition expenses | ||||||||||||||||||||||||||||||||
| Merger and acquisition expenses | 450 | — | — | 450 | — | |||||||||||||||||||||||||||
| Less, tax impact | (104) | — | — | (104) | — | |||||||||||||||||||||||||||
| After-tax impact of merger and acquisition expenses | 346 | — | — | 346 | — | |||||||||||||||||||||||||||
| Adjusted net income (B) | $51,622 | $50,519 | $41,796 | $148,800 | $116,768 | |||||||||||||||||||||||||||
| Weighted average shares outstanding - diluted (C) | 41,393,792 | 41,375,377 | 41,481,542 | 41,409,330 | 41,443,636 | |||||||||||||||||||||||||||
| D-EPS (A/C) | $ | 1.24 | $ | 1.22 | $ | 0.49 | $ | 3.59 | $ | 2.30 | ||||||||||||||||||||||
| Adjusted D-EPS (B/C) | $ | 1.24 | $ | 1.22 | $ | 1.01 | $ | 3.59 | $ | 2.82 | ||||||||||||||||||||||
APPENDIX E: Calculation of Return on Average Assets ("ROA") and Adjusted ROA
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Net income (A) | $ | 51,276 | $ | 50,519 | $ | 46,659 | $ | 15,713 | $ | 20,363 | ||||||||||||||||||||||
| After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||||||||||||||||||||||||
| After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted net income (B) | $ | 51,622 | $ | 50,519 | $ | 46,659 | $ | 49,294 | $ | 41,796 | ||||||||||||||||||||||
| Average total assets (C) | $ | 13,097,973 | $ | 12,949,339 | $ | 12,762,814 | $ | 12,716,139 | $ | 12,640,016 | ||||||||||||||||||||||
| ROA (A/C) | 1.55 | % | 1.56 | % | 1.48 | % | 0.49 | % | 0.64 | % | ||||||||||||||||||||||
| Adjusted ROA (B/C) | 1.56 | % | 1.56 | % | 1.48 | % | 1.54 | % | 1.31 | % | ||||||||||||||||||||||
14
| Third Quarter 2026 Results | ||||
| Reconciliation of non-GAAP measures, continued | ||
APPENDIX F: Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Net income (A) | $ | 51,276 | $ | 50,519 | $ | 46,659 | $ | 15,713 | $ | 20,363 | ||||||||||||||||||||||
| After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||||||||||||||||||||||||
| After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted net income (B) | $ | 51,622 | $ | 50,519 | $ | 46,659 | $ | 49,294 | $ | 41,796 | ||||||||||||||||||||||
| Average common equity (C) | $ | 1,736,763 | $ | 1,704,388 | $ | 1,686,763 | $ | 1,627,976 | $ | 1,571,104 | ||||||||||||||||||||||
| ROCE (A/C) | 11.71 | % | 11.89 | % | 11.22 | % | 3.83 | % | 5.14 | % | ||||||||||||||||||||||
| Adjusted ROCE (B/C) | 11.79 | % | 11.89 | % | 11.22 | % | 12.01 | % | 10.55 | % | ||||||||||||||||||||||
APPENDIX G: Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Net income | $ | 51,276 | $ | 50,519 | $ | 46,659 | $ | 15,713 | $ | 20,363 | ||||||||||||||||||||||
| Intangible asset amortization, net of taxes | 887 | 923 | 960 | 994 | 1,066 | |||||||||||||||||||||||||||
| Tangible Net income (A) | 52,163 | 51,442 | 47,619 | 16,707 | 21,429 | |||||||||||||||||||||||||||
| After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||||||||||||||||||||||||
| After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted tangible Net income (B) | $ | 52,509 | $ | 51,442 | $ | 47,619 | $ | 50,288 | $ | 42,862 | ||||||||||||||||||||||
| Average Common Equity | $ | 1,736,763 | $ | 1,704,388 | $ | 1,686,763 | $ | 1,627,976 | $ | 1,571,104 | ||||||||||||||||||||||
| Less: Average Goodwill and Other Intangibles, net of related taxes | (481,346) | (482,326) | (483,314) | (484,313) | (485,331) | |||||||||||||||||||||||||||
| Average TCE (C) | $ | 1,255,417 | $ | 1,222,062 | $ | 1,203,449 | $ | 1,143,663 | $ | 1,085,773 | ||||||||||||||||||||||
| ROTCE (A/C) | 16.48 | % | 16.88 | % | 16.05 | % | 5.80 | % | 7.83 | % | ||||||||||||||||||||||
| Adjusted ROTCE (B/C) | 16.59 | % | 16.88 | % | 16.05 | % | 17.45 | % | 15.66 | % | ||||||||||||||||||||||
15
| Third Quarter 2026 Results | ||||
APPENDIX H: Impact of Hurricane Helene
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
| ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||
| Impact of Hurricane Helene | ||||||||||||||||||||||||||||||||
| Provision for (benefit from) credit losses | $ | (1,900) | $ | — | $ | (4,000) | $ | (1,900) | $ | (9,500) | ||||||||||||||||||||||
| Total | (1,900) | — | (4,000) | (1,900) | (9,500) | |||||||||||||||||||||||||||
| Less, tax impact | 438 | — | 928 | 438 | 2,203 | |||||||||||||||||||||||||||
| After-tax impact of Hurricane Helene | $ | (1,462) | $ | — | $ | (3,072) | $ | (1,462) | $ | (7,297) | ||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 41,393,792 | 41,375,377 | 41,481,542 | 41,409,330 | 41,443,636 | |||||||||||||||||||||||||||
| Impact of Hurricane Helene per diluted share | $ | 0.04 | $ | — | $ | 0.07 | $ | 0.04 | $ | 0.18 | ||||||||||||||||||||||
APPENDIX I: Efficiency Ratio and Adjusted Efficiency Ratio
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||
| Noninterest expenses (A) | $ | 63,991 | $ | 62,761 | $ | 60,218 | $ | 62,043 | $ | 60,171 | ||||||||||||||||||||||
| Merger & acquisition expenses | 450 | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted noninterest expenses (B) | 63,541 | 62,761 | 60,218 | 62,043 | 60,171 | |||||||||||||||||||||||||||
| Noninterest income (C) | 15,117 | 16,034 | 15,178 | (22,479) | (12,952) | |||||||||||||||||||||||||||
| Securities losses, net | — | — | — | (43,722) | (27,905) | |||||||||||||||||||||||||||
| Adjusted noninterest income (D) | 15,117 | 16,034 | 15,178 | 21,243 | 14,953 | |||||||||||||||||||||||||||
| Net interest income - tax equivalent (E) | 115,247 | 111,732 | 107,595 | 106,601 | 102,861 | |||||||||||||||||||||||||||
| Efficiency ratio A/(C+E) | 49.09 | % | 49.12 | % | 49.05 | % | 73.75 | % | 66.92 | % | ||||||||||||||||||||||
| Adjusted efficiency ratio B/(D+E) | 48.74 | % | 49.12 | % | 49.05 | % | 48.53 | % | 51.07 | % | ||||||||||||||||||||||
| Supplemental information | ||
APPENDIX J: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the third quarter of 2026 was a loan purchase accounting discount accretion of $0.8 million compared to $1.1 million for the linked quarter and $1.6 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of two basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the third quarter of 2026, the linked quarter and the like quarter.
16
| Third Quarter 2026 Results | ||||
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
| For the Three Months Ended | ||||||||||||||||||||
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| Interest income - increased by accretion of loan discount on acquired loans | $ | 800 | $ | 1,083 | $ | 1,584 | ||||||||||||||
| Total interest income impact | 800 | 1,083 | 1,584 | |||||||||||||||||
| Interest expense - increased by discount accretion on deposits | (43) | (62) | (77) | |||||||||||||||||
| Interest expense - increased by discount accretion on borrowings | (89) | (87) | (197) | |||||||||||||||||
| Total net interest expense impact | (132) | (149) | (274) | |||||||||||||||||
| Total impact on net interest income | $ | 668 | $ | 934 | $ | 1,310 | ||||||||||||||
17
Third Quarter Update 2026
Important information Caution Regarding Forward-Looking Statements This presentation contains certain 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, including those regarding First Bancorp's expectations or predictions of future financial or business performance or conditions. The forward-looking statements are inherently subject to risks and uncertainties. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may", or by variations of such words or by similar expressions. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, expected cost savings, expected impact on future earnings, the Company's plans, objectives, expectations and intentions and other statements that are not historical facts. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. Forward-looking statements speak only as of the date they are made and you are cautioned not to place undue reliance on any forward-looking statements. We assume no duty to update forward-looking statements. In addition to factors previously disclosed in First Bancorp’s reports filed with the Securities and Exchange Commission (“SEC”), including without limitation its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, 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. This presentation contains financial information, performance measures and statements that include non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with related earnings releases and Forms 10-Q/K for the respective quarters and period ends, which provide a reconciliation of non-GAAP measures to GAAP measures. Management believes that these non-GAAP measures provide additional useful information that allows readers to evaluate the ongoing performance of First Bancorp. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of First Bancorp. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results or financial condition as reported under GAAP. Non-GAAP Measures
Company overview First BancorpBank Holding Company First BankSubsidiary Bank Southern Pines, North CarolinaHeadquarters 1935 as Bank of MontgomeryEstablished $13.2 billionAssets * $9.1 billionLoans * $11.1 billionDeposits * 113 in NC & SCBranches * 1,391 full-time equivalent employeesEmployees * 4th largest bank headquartered in NC (largest community bank)Ranking $2.5 billion – Ticker FBNCMarket Capitalization # NASDAQ Global Select Market, S&P SmallCap 600 Index, Russell 2000Stock Market/Indices 226,000 shares Daily Average Trading Volume # 1.60%Insider Ownership # 83.58%Institutional Ownership # YesMember of Russell 2000 * Data is as of 09/30/26 # Data is as of 10/16/26
First Bank: The bank of the Carolinas Deepening South Carolina franchise Increases South Carolina deposit base by over 50% and doubles branch footprint in the state(1) Top 10 pro forma deposit market share in South Carolina; #2 pro forma deposit market share in Pee Dee Region Familiar community banking cultures Carolina Bank chartered in 1936 Experienced bankers (average tenure ~17 years) serving longstanding customers (average DDA account age ~15 years) Partnering with a top financial performer Carolina Bank has a strong LTM ROA at 1.60%(2) Core funding base with favorable 1.42% 2Q’26 cost of funds and no borrowings(2) Compelling financial results Low single-digit EPS accretion; ~1% TBV dilution with less than 2-year earnback; 20%+ IRR Strong pro forma capital ratios maintain future optionality to grow the bank and increase earnings Accretive to First Bancorp operating results Additional scale improves projected Efficiency Ratio, ROA and ROTCE Grows AUM of FB Wealth Management by ~15% Data Source: S&P Global Market Intelligence, FDIC Summary of Deposits as of 6/30/25. (1) Based on FDIC Summary of Deposits as of 6/30/25 and excludes any potential branch closures following the consummation of the transaction. (2) Represents bank-level data as of and for the three months and twelve months ended 6/30/26. On July 14, 2026, First Bancorp and Carolina Bank & Trust Company announced the signing of a definitive merger agreement under which First Bancorp will acquire First Carolina in a stock and cash transaction with an aggregate value of $166 million. The merger is expected to close early in the first quarter of 2027, subject to customary closing conditions, including First Carolina shareholder approval and regulatory approval. Pending acquisition of Carolina Bank
First Bank post acquisition Our mission To be the best community bank in every community we serve and through every delivery channel we offer. Our core values Be committed to safety and soundness. Provide accurate, prompt, courteous service. Help our clients and associates build and achieve goals. Make it easy for our associates to deliver the best value to our clients, and easy for our clients to do business with us whenever, wherever, and however they choose. Our locations Carolina Bank (14) FBNC (113) $13.8B Assets $9.4B Gross Loans $11.7B Deposits 1.6% 2027E ROA 15% 2027E ROTCE 47% 2027E Eff. Ratio Pro Forma Financial Highlights
Best Employer in North Carolina 2023, 2024, 2025, 2026 First Bank was named a BEST EMPLOYER in North Carolina by Business NC. National recognition #14 in S&P Top 50 Public Banks 2026 First Bank was ranked #14 best U.S. public bank by S&P Global Market Intelligence. #23 in Forbes America’s Best Banks 2026 First Bank was named #23 on Forbes’ 2026 America’s Best Banks. America’s Greatest Workplaces in North Carolina First Bank was recognized by Newsweek as one of America’s Greatest Workplaces in North Carolina for 2026 2026
Q3 2026 highlights 1. Annualized net income divided by: average common shareholders’ equity less average total intangible assets, net. 2. Net-interest income divided by average earning assets. 3. Adjusted for $0.5 million of merger and acquisition expense. CHANGEQ2 2026Q3 2026 +$0.8 million$50.5 million$51.3 millionNet income +$0.2 million$1.1 million$1.3 millionProvision for Credit Losses +$0.02$1.22 $1.24 Diluted EPS -1 bp1.56%1.55%ROA +0 bps1.56%1.56%Adjusted ROA (3) -18 bps11.89%11.71%ROCE -10 bps11.89%11.79%Adjusted ROCE (3) -40 bps16.88%16.48%ROTCE (1) -29 bps16.88%16.59%Adjusted ROTCE (1) (3) +4 bps3.71%3.75%Net Interest Margin (2) +8 bps5.67%5.75%Loan Yield +4 bps1.31%1.35%Total Cost of Deposits +5 bps1.34%1.39%Total Cost of Funds
Q3 2026 summary 1. Preliminary • Q3 2026 net income of $51.3 million ($51.6 million on an adjusted basis) • ROA of 1.55% (Adjusted ROA of 1.56%) • ROCE of 11.71% (Adjusted ROCE of 11.79%) • ROTCE 16.48% (Adjusted ROTCE of 16.59%) • Management continues to control expenses resulting in $64.0 million of NIE Earnings • NIM increased 4 basis points to 3.75% • Net Interest Income +$3.5 million to $114.8 million • Loan Yield increased 8 bps to 5.75% • Securities yield of 2.76% (+5 bps) • Total Cost of Deposits increased 4 bps to 1.35% Margin • Total assets increased $109.9 million • Loan growth of $116.2 million • Deposits increased $41.4 million Balance Sheet • ACL coverage ratio of 1.36% down 3 bps from Q2 2026 • Annualized net charge-offs of 0.9% ($2.1 million) • Foreclosed real estate decreased to $0.8 million • Helene credit reserves reduced to $0 • NPA/Assets ratio remains low at 0.34% Credit • Capital position remains strong – o Tangible Common Equity Ratio 9.73% (-10 bps) o CET 1 Ratio 14.26%1 (+17 bps) o Total Risk-Based Capital 16.22%1 (+16 bps) o C&D and CRE concentration ratios within target range • Book value of $41.38 per share, (- $0.11) • Tangible book value of $29.77 per share, (- $0.07) Capital “We continue to benefit from the repositioning of lower- yielding assets into higher-yielding opportunities, resulting in a 4 basis-point expansion of our NIM and strong operating performance. We remain confident in our ability to deliver strong results throughout 2026.” Richard H. Moore, First Bancorp Chairman and CEO $51.3 million Net Income $51.6 million Adjusted Net Income $1.24 Diluted EPS $1.24 Adjusted Diluted EPS $114.8 million Net Interest Income 3.75% NIM 1.56% Adjusted ROA 49.1% Efficiency ratio $41.4 million, or +1.5% Linked quarter deposit growth $116.2 million, or +5.1% Linked quarter loan growth 14.26%1 CET1 ratio 1.36% ACL ratio
Net interest margin (NIM tax-equivalent ) 2.80% 2.87% 2.90% 3.08% 3.27% 3.32% 3.47% 3.60% 3.69% 3.73% 3.76% 2.69% 2.77% 2.82% 2.99% 3.19% 3.26% 3.40% 3.54% 3.64% 3.68% 3.73% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% 3.90% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Reported Core Net interest margin – tax-equivalent is calculated by dividing tax-equivalent net interest income by average earning assets. Core net interest margin excludes accretion from purchase accounting loan discounts
Loan yields 5.45% 5.51% 5.51% 5.47% 5.52% 5.53% 5.69% 5.59% 5.57% 5.67% 5.75% 5.30% 5.37% 5.39% 5.34% 5.41% 5.44% 5.60% 5.51% 5.51% 5.61% 5.71% 4.90% 5.00% 5.10% 5.20% 5.30% 5.40% 5.50% 5.60% 5.70% 5.80% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Stated Core
Asset yield trends 2.41% 2.55% 2.69% 2.74% 2.71% 2.76% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 2nd Quarter 2025 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2026 2nd Quarter 2026 3rd Quarter 2026 Total Securities 4.69% 4.86% 4.84% 4.88% 4.95% 5.02% 4.00% 4.20% 4.40% 4.60% 4.80% 5.00% 5.20% 2nd Quarter 2025 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2026 2nd Quarter 2026 3rd Quarter 2026 Interest Earning Assets 5.53% 5.69% 5.59% 5.57% 5.67% 5.75% 5.00% 5.10% 5.20% 5.30% 5.40% 5.50% 5.60% 5.70% 5.80% 2nd Quarter 2025 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2026 2nd Quarter 2026 3rd Quarter 2026 Total Loans, Fees, & Accretion
Cost of funds and total cost of deposits 1.79% 1.81% 1.81% 1.62% 1.51% 1.48% 1.51% 1.36% 1.31% 1.34% 1.39% 1.56% 1.72% 1.72% 1.57% 1.46% 1.43% 1.46% 1.32% 1.28% 1.31% 1.35% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Cost of Funds Deposits
Deposit cost 2.14% 2.18% 1.97% 1.89% 1.94% 2.01% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% 2nd Quarter 2025 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2026 2nd Quarter 2026 3rd Quarter 2026 Interest Bearing Deposits 1.43% 1.46% 1.32% 1.28% 1.31% 1.35% 1.00% 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% 1.35% 1.40% 1.45% 1.50% 2nd Quarter 2025 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2026 2nd Quarter 2026 3rd Quarter 2026 Total Cost of Deposits
Strong capital levels First Bancorp maintains strong capital levels. Through earnings, First Bancorp continues to increase equity and capital. The asset and loan growth in the second quarter increased the denominator in the capital ratios, particularly in risk-based measures as loans generally carry higher risk weights than short term investments and AFS securities. Capital levels afford management strategic flexibility. Capital ratios for Q3 2026 are preliminary and subject to change 9.83% 11.60% 14.09% 14.81% 16.06% 9.73% 11.79% 14.26% 14.97% 16.22% 4.00% 7.00% 8.50% 10.50% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% TCE Tier 1 Leverage Capital Common Equity Tier 1 Tier 1 Capital Total Capital 6/30/2026 9/30/2026 Minimum 10 bps 19 bps 16 bps 16 bps 17 bps Capital Ratios
Strong deposit franchise supported by thriving markets Total deposits ended at $11.1 billion, an increase of $41.4 million for the quarter, or 1.5% annualized. The remaining brokered deposits matured during the quarter ended September 30, 2026. Management has controlled interest expense, with total cost of deposits of 1.35% for Q3 2026, an increase of 4 basis points from the linked quarter and a decrease of 11 basis points from the like quarter. $10,881 $10,748 $11,012 $11,085 $11,126 1.46% 1.32% 1.28% 1.31% 1.35% 2.18% 1.97% 1.89% 1.94% 2.01% 4.25% 3.75% 3.75% 3.75% 4.00% $7,000 $7,500 $8,000 $8,500 $9,000 $9,500 $10,000 $10,500 $11,000 $11,500 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 3Q '25 4Q '25 1Q '26 2Q '26 3Q '26 Deposits Total cost of deposits Interest bearing deposits Fed funds Deposits end-of-period ($ in millions)
Diverse deposit base The Company benefits from a granular deposit franchise, with the top twenty depositors representing approximately 7% of total deposits. Consumer deposits represent 42% of total deposits. Business deposits represent 58% of total deposits. Uninsured and uncollateralized deposits represent approximately 35% of total deposits. 8% 8% 7% 7% 7% 0% 0% 0% 0% 0% 41% 42% 42% 43% 43% 5% 5% 5% 5% 5% 13% 13% 13% 13% 13% 33% 32% 33% 32% 32% 3Q '25 4Q '25 1Q '26 2Q '26 3Q '26 Time deposits Brokered Money market Savings NOW Nonint trans accts Deposits End-of-Period ($ in millions) $10,881 $10,748 $11,012 $11,085 $11,126
Allowance for credit losses Percent of loans outstanding Allowance for credit lossesLoans outstanding 1.4%$ 20,194$ 1,041,062Commercial and industrial 1.74%16,240932,510Construction, development & other land loans 1.30%17,9301,382,601Commercial real estate - owner occupied 0.92%27,3682,963,696 Commercial real estate - non owner occupied 0.98%5,995614,797Multi-family real estate 1.69%29,2351,726,802Residential 1-4 family real estate 0.82%3,087378,419Home equity loans/lines of credit 6.35%4,19266,060Consumer loans (1,048)Unamortized net deferred loan costs (fees) 1.36%$ 124,241$ 9,104,899Total loans
Asset quality trends 0.14% 0.05% 0.06% 0.04% 0.09% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Annualized Net Charge Offs 0.44% 0.42% 0.47% 0.49% 0.49% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Nonperforming Loan Ratio 1.44% 1.42% 1.42% 1.39% 1.36% 1.00% 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% 1.35% 1.40% 1.45% 1.50% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 ACL / Loans 0.31% 0.30% 0.32% 0.34% 0.34% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Nonperforming Asset Ratio
Noninterest income Q3 26Q2 26Q1 26Q4 25Q3 25Q2 25(Dollars in thousands) $ 4,574 $ 4,205 $ 3,954 $ 4,269 $ 4,225 $ 3,976 Service charges on deposit accounts 5,500 5,986 5,942 5,653 6,323 6,605 Other service charges and fees 379660669583 471 315 Presold mortgage loan fees and gains on sale 1,611 1,707 1,492 1,800 1,678 1,388 Commissions from sales of financial products 924 529 903 -869 151 SBA loan sale gains 1,395 1,358 1,340 1,375 1,289 1,221 Bank-owned life insurance income ---(43,722)(27,905)-Securities losses, net 734 1,589 878 7,563 99 636 Other income, net $ 15,117$ 16,034$ 15,178$ (22,479)$ (12,951)$ 14,292 Total noninterest income Our Noninterest income primarily relates to providing excellent services to our customers in the form of deposit and transaction services, mortgage financing and other financial products. These services are relatively stable across interest rate environments. Noninterest income also includes amounts related to other noninterest earning investments and gains/losses on the sales of investment securities. During the fourth quarter of 2025, the Company realized a $4.6 million gain from the sale of an office building.
Noninterest expense Q3 26Q2 26Q1 26Q4 25Q3 25Q2 25(Dollars in thousands) $32,652 $31,529 $29,978 $30,747 $31,065 $29,005 Salaries, incentives and commissions expense 6,8106,9586,5166,6735,7516,187Employee benefit expense 39,46238,48736,49437,42036,81635,192Total personnel expense 5,2534,9615,3554,9035,1455,195Occupancy and equipment expense 450-----Merger and acquisition expense 1,1531,1991,2471,2941,3941,468Intangibles amortization expense 17,67318,11417,12218,42616,81717,069Other operating expenses $63,991 $62,761 $60,218 $62,043 $60,172 $58,924 Total noninterest expenses $58,924 $60,172 $62,043 $60,218 $62,761 $63,991 53.0% 51.1% 48.5% 49.0% 49.1% 49.1% 45% 50% 55% 60% 65% $45,000 $47,500 $50,000 $52,500 $55,000 $57,500 $60,000 $62,500 $65,000 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Th o u sa n d s Non interest expense Efficiency ratio
Investment thesis Regional bank with strong culture that offers many of the product capabilities found in larger national banks but delivers those services with a local community bank focus. Capabilities include Mobile Banking, Wealth Management, Credit Card, Treasury Services, and Mortgage Banking. Centered in one of the fastest-growing regions in the U.S. and focused on high growth markets. Stable, low-cost core deposit franchise • Built over 90 years of serving our communities • Strength of rural markets • Q3 2026 total cost of deposits was 1.35% • Minimal wholesale funding Conservative Balance Sheet • Minimal credit risk in investment portfolio • Core funded • In market loan portfolio – almost no participations Market disruptions provide opportunity
Valuation Price to Tangible Common Book Value Chart reflects data available through S&P Global, and therefore the tangible book values are as of June 30, 2026 and the stock prices are as of October 16, 2026 for all companies presented. Based on September 30, 2026 amounts for tangible common book value ($29.77) and FBNC stock price ($61.11), the Price to Tangible Book was 2.05x at that date. 1.25x 1.46x 1.57x 1.65x 1.77x 1.83x 1.85x 2.02x 2.07x 2.46x - 0.50 1.00 1.50 2.00 2.50 SFST UCB TOWN FBK ABCB AUB UBSI FBNC SBCF FCBC Price / Tangible Common Book Value Median = 1.80x The above chart reflects the 10/16/2026 closing stock price and 6/30/2026 tangible common book value.
Valuation Price to Earnings Based on SNL Mean Normalized 2026 EPS Estimate of $4.72, the FBNC price to earnings ratio is 12.8x based on October 16, 2026, closing price for FBNC stock of $60.36. The above chart reflects the 10/16/2026 closing stock price and 2026 EPS Estimate as of that date. . 10.1x 11.x 11.3x 11.4x 12.x 12.x 12.7x 12.8x 12.8x 16.1x AUB FBK TOWN UCB SFST ABCB UBSI SBCF FBNC FCBC Price / 2026 Consensus EPS - Normalized Median – 12.0x
North Carolina & South Carolina: Thriving states for business Growing populations North Carolina • Currently the 9th most populous state • Projected 7th by 2040 – and within 1% of 5th most populated • 4th highest net increase in population in 2024 • Projected to grow 20% over the next 20 years – 5th highest total growth South Carolina • Currently the 23rd most populous state • The 4th fastest growing state by percentage change in 2024 • 5th highest net increase in population in 2023 and 10th highest in 2024 • Projected to increase 18% between 2024 and 2042 America’s Top States for Business • North Carolina ranked Top Five States for Business in 2024 (CNBC, Forbes, CEO Magazine, Business Facilities) • South Carolina’s economy is 12th in the nation (CNBC) Tax-friendly states – NC is phasing out corporate income tax and SC’s corporate tax rate is among the lowest in the Southeast North Carolina Pension System – Ranked strongest in the nation by Moody’s Both states have an AAA Bond Rating
Corporate citizenship
Investing in our communities A proud community partner in the Carolinas since 1935 First Bank has long been a committed partner in the communities it serves across the Carolinas. The following are just some of the investment areas made over the recent years. . Ensuring equitable access to education • Area public schools, community colleges and universities • STEAM programs • Summer camps • HBCU and college scholarships • Literacy programs and book drives • Boys and Girls Club chapters Improving the lives of neighbors in need • United Way chapters • Habitat for Humanity volunteering and Habitat loan origination program • Women’s shelters and organizations • Food banks and annual food drive • The American Red Cross • Partnership for Children • Smart Start Promoting business and economic growth • Foundations • Business incubators • Local community economic development organizations • Entrepreneurship competitions • Small business financial education seminars • Events recognizing local business leaders
Social responsibility Diversity and inclusion We treat customers and associates with respect, communicate openly, and value the unique contributions of every individual. We strive to build an inclusive organization that reflects the communities we serve. • Our Diversity Council represents associate perspectives, helps ensure diversity efforts align with our mission, and serves as an advisory and communication channel to leadership. • We promote a workplace where all views are respected and all associates have access to opportunity, growth, and advancement. • We are committed to inclusive hiring practices by maintaining diverse candidate pools, supported by recruiting partnerships with North Carolina HBCUs and participation in NCWorks to broaden visibility of open roles. Financial wellness We provide financial education resources and tools to help members of our communities build brighter financial futures. • First@Work – Through the Bank’s First@Work program, bank associates offer in-person and online financial education seminars for employees at local businesses and at events in their communities. • Educational resources – First Bank maintains many educational resources covering a range of topics like personal finance, budgeting, starting a business, buying a home, and understanding a credit score. These are frequently shared through live community events, school events, and the bank’s social media channels. • The Learning Lab – Built specifically for teens ages 12-18, the Learning Lab online modules provide financial education through fun, game-like scenarios on a variety of topics, including budgeting, savings, and investing.
Thank you!