TROY, N.C., July 29 /PRNewswire-FirstCall/ -- First Bancorp , the parent company of First Bank, announced today net income available to common shareholders of $2.9 million, or $0.17 per diluted common share, for the three months ended June 30, 2010 and $6.3 million, or $0.38 per diluted common share, for the six months ended June 30, 2010. For the three and six months ended June 30, 2009, the Company reported earnings of $43.5 million, or $2.61 per diluted common share, and $46.6 million, or $2.80 per diluted common share, respectively.
In the second quarter of 2009, the Company realized a $67.9 million gain related to the acquisition of Cooperative Bank in Wilmington, North Carolina. This gain resulted from the difference between the purchase price and the acquisition-date fair value of the acquired assets and liabilities. The after-tax impact of this gain was $41.1 million, or $2.46 per diluted common share.
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2010 amounted to $31.5 million, a 34.5% increase over the second quarter of 2009. Net interest income for the six months ended June 30, 2010 amounted to $62.7 million, a 37.7% increase over the comparable period of 2009. The increase in net interest income was due to balance sheet growth realized from the Cooperative Bank acquisition and a higher net interest margin.
The Company's net interest margin (tax-equivalent net interest income divided by average earnings assets) in the second quarter of 2010 was 4.35%, a 19 basis point increase from the 4.16% realized in the first quarter of 2010, and a 61 basis point increase from the 3.74% margin realized in the second quarter of 2009. The primary reason for the increase in the net interest margin is that the Company has been able to lower rates on maturing time deposits that were originated in periods of higher interest rates.
The Company's net interest income has also been impacted by certain purchase accounting adjustments related to the June 2009 acquisition of Cooperative Bank and to a lesser degree the 2008 acquisition of Great Pee Dee Bancorp. See page 5 of the Financial Summary for a table that presents the impact of the purchase accounting adjustments.
Provision for Loan Losses and Asset Quality
The Company's provision for loan losses amounted to $8.0 million in the second quarter of 2010 compared to $7.6 million in the first quarter of 2010 and $3.9 million in the second quarter of 2009. The higher provision for loan losses is a result of higher levels of classified and nonperforming assets and the impact of declining real estate values on the Company's collateral dependent real estate loans.
The increases in the provisions for loan losses are primarily attributable to the Company's "non-covered" loan portfolio, which excludes loans assumed from Cooperative Bank that are subject to loss share agreements with the FDIC. The Company does not expect to record any significant loan loss provisions in the foreseeable future related to the loan portfolio acquired from Cooperative Bank because these loans were written down to estimated fair market value in connection with recording the acquisition.
The Company's non-covered nonperforming assets amounted to $108 million at June 30, 2010, compared to $101 million at March 31, 2010 and $53 million at June 30, 2009. At June 30, 2010, the ratio of non-covered nonperforming assets to total non-covered assets was 3.89%, compared to 3.58% at March 31, 2010, and 1.82% at June 30, 2009.
The Company's ratio of annualized net charge-offs to average non-covered loans was 1.05% for the second quarter of 2010 compared to 1.01% in the first quarter of 2010 and 0.49% in the second quarter of 2009.
The Company's nonperforming assets that are covered by FDIC loss share agreements amounted to $187 million at June 30, 2010, compared to $185 million at March 31, 2010 and $91 million at June 30, 2009. The Company continues to submit reimbursement claims to the FDIC on a regular basis.
Noninterest Income
Total noninterest income was $4.5 million in the second quarter of 2010 and $10.2 million for the six months ended June 30, 2010. This compares to noninterest income of $72.8 million for the second quarter of 2009 and $77.5 million for the six months ended June 30, 2009. Each of the periods in 2009 include a $67.9 million gain related to the June 2009 acquisition of Cooperative Bank. Most other categories of noninterest income increased as a result of the larger customer base that resulted from the Cooperative Bank acquisition.
In the second quarter of 2010, the Company recorded $1.2 million in write-downs (net of FDIC reimbursable amounts) on foreclosed properties covered by FDIC loss sharing agreements, which is included in "Other gains (losses)" in the accompanying schedules. The write-downs were necessary as a result of updated appraisals obtained on these properties during the quarter.
Noninterest Expenses
Noninterest expenses amounted to $22.0 million in the second quarter of 2010, a 14.3% increase over the $19.2 million recorded in the same period of 2009. Noninterest expenses for the six months ended June 30, 2010 amounted to $44.2 million, a 25.9% increase from the $35.1 million recorded in the first six months of 2009. The increase is primarily attributable to incremental operating expenses associated with the Cooperative Bank acquisition that occurred late in the second quarter of 2009. Included in other noninterest expenses for the second quarter of 2010 are approximately $0.7 million in costs associated with collection activities on loans and foreclosed properties covered by FDIC loss sharing agreements, compared to $1 million in the first quarter of 2010 and zero for the first six months of 2009. During the first quarter of 2010, the Company was also impacted by a fraud loss of $0.6 million.
The Company's effective tax rate has declined from approximately 39% in 2009 to 36% in 2010 as a result of purchases of tax-exempt investment securities during 2010.
Balance Sheet and Capital
Total assets at June 30, 2010 amounted to $3.3 billion, a 6.0% decrease from a year earlier. Total loans at June 30, 2010 amounted to $2.6 billion, a 7.8% decrease from a year earlier, and total deposits amounted to $2.8 billion at June 30, 2010, a 2.8% decrease from a year earlier.
The Company continues to experience a general decline in loans, with loans decreasing approximately $98 million, or 3.7%, since December 31, 2009. Although the Company originates and renews a significant amount of loans each month, normal paydowns of loans are exceeding new loan growth. Overall, loan demand remains weak in most of the Company's market areas.
The Company's deposits declined by $138 million, or 4.7%, during the first six months of 2010. This decrease was primarily a result of the loss of $117 million in relatively high-cost time deposits, including $73 million in internet time deposits, that matured and were not renewed during the first six months of 2010. Brokered deposits remained at a low level at June 30, 2010, comprising just 3.3% of total deposits, with internet deposits comprising an additional 2.0%.
The Company remains well-capitalized by all regulatory standards with a Total Risk-Based Capital Ratio of 16.43% compared to the 10.00% minimum to be considered well-capitalized. The Company's tangible common equity to tangible assets ratio was 6.56% at June 30, 2010, an increase of 96 basis points from a year earlier. The Company continues to have outstanding $65 million in preferred stock that was issued to the US Treasury in January 2009.
Comments of the President and Other Business Matters
Jerry L. Ocheltree, President and CEO of First Bancorp, commented on today's report, "I am pleased to report another profitable quarter for the company. Many of the underlying trends are positive as well, including a rising net interest margin, increased capital levels, and our lowest quarterly increase in nonperforming assets since the beginning of the recession. Our strong position allows us to continue to lend money in the communities we serve."
Mr. Ocheltree noted the following other corporate developments: -- First Bank is holding 75th anniversary celebrations throughout the branch network during August. First Bank opened for business in Troy, North Carolina in 1935. -- The Company opened a branch in Christiansburg, Virginia on May 24, 2010. This branch is the Company's sixth in southwestern Virginia. -- On May 26, 2010, the Company announced a quarterly cash dividend of $0.08 cents per share payable on July 23, 2010 to shareholders of record on June 30, 2010. This is the same dividend rate as the Company declared in the second quarter of 2009. -- During the second quarter of 2010, the Company's data processing subsidiary, Montgomery Data Services, was merged into First Bank. Montgomery Data Services had ceased providing data processing services to banks other than First Bank earlier in the year, and the Company decided it no longer desired to offer these services to other banks. -- There was no stock repurchase activity during 2010.
First Bancorp is a bank holding company headquartered in Troy, North Carolina with total assets of approximately $3.3 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that now operates 92 branches, with 77 branches operating in the central Piedmont and coastal regions of North Carolina, 9 branches in South Carolina (Cheraw, Dillon, Florence, Latta, Jefferson, and Little River), and 6 branches in Virginia (Abingdon, Christiansburg, Dublin, Fort Chiswell, Radford, and Wytheville), where First Bank does business as First Bank of Virginia. First Bank also has a loan production office in Blacksburg, Virginia. First Bancorp's common stock is traded on the NASDAQ Global Select Market under the symbol "FBNC."
Please visit our website at http://www.firstbancorp.com/.
This press release contains statements that could be deemed 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.
First Bancorp and Subsidiaries Financial Summary Three Months Ended Percent June 30, -------- ($ in thousands except per share data -unaudited) 2010 2009 Change -------------------------------- ---- ---- ------ INCOME STATEMENT Interest income --------------- Interest and fees on loans $37,609 33,640 Interest on investment securities 1,988 1,874 Other interest income 121 66 --- --- Total interest income 39,718 35,580 11.6% ------ ------ Interest expense ---------------- Interest on deposits 7,671 11,224 Other, primarily borrowings 511 913 --- --- Total interest expense 8,182 12,137 (32.6%) ----- ------ Net interest income 31,536 23,443 34.5% Provision for loan losses 8,003 3,926 103.8% ----- ----- Net interest income after provision 23,533 19,517 20.6% for loan losses ------ ------ Noninterest income ------------------ Service charges on deposit accounts 3,593 3,250 Other service charges, commissions, and fees 1,378 1,205 Fees from presold mortgages 440 293 Commissions from financial product sales 340 337 Data processing fees - 36 Gain from business acquisition - 67,894 Securities gains (losses) 15 (56) Other gains (losses) (1,229) (183) ------ ---- Total noninterest income 4,537 72,776 (93.8%) ----- ------ Noninterest expenses -------------------- Personnel expense 11,324 9,552 Occupancy and equipment expense 2,815 2,110 Intangibles amortization 220 98 Acquisition expenses - 792 Other operating expenses 7,598 6,651 ----- ----- Total noninterest expenses 21,957 19,203 14.3% ------ ------ Income before income taxes 6,113 73,090 (91.6%) Income taxes 2,172 28,562 (92.4%) ----- ------ Net income $3,941 44,528 (91.1%) Preferred stock dividends and accretion (1,026) (1,022) ------ ------ Net income available to common shareholders $2,915 43,506 (93.3%) ====== ====== Earnings per common share - basic $0.17 2.62 (93.5%) Earnings per common share - diluted 0.17 2.61 (93.5%) ADDITIONAL INCOME STATEMENT INFORMATION --------------------------------------- Net interest income, as reported $31,536 23,443 Tax-equivalent adjustment (1) 331 187 --- --- Net interest income, tax-equivalent $31,867 23,630 34.9% ======= ====== (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming a 39% tax rate and is reduced by the related nondeductible portion of interest expense. First Bancorp and Subsidiaries Financial Summary - Page 2 Six Months Ended Percent June 30, -------- ($ in thousands except per share data -unaudited) 2010 2009 Change -------------------------------- ---- ---- ------ INCOME STATEMENT Interest income --------------- Interest and fees on loans $75,827 66,192 Interest on investment securities 3,872 3,806 Other interest income 328 105 --- --- Total interest income 80,027 70,103 14.2% ------ ------ Interest expense ---------------- Interest on deposits 16,231 22,649 Other, primarily borrowings 1,083 1,901 ----- ----- Total interest expense 17,314 24,550 (29.5%) ------ ------ Net interest income 62,713 45,553 37.7% Provision for loan losses 15,626 8,411 85.8% ------ ----- Net interest income after provision 47,087 37,142 26.8% for loan losses ------ ------ Noninterest income ------------------ Service charges on deposit accounts 7,058 6,224 Other service charges, commissions, and fees 2,723 2,326 Fees from presold mortgages 812 452 Commissions from financial product sales 762 831 Data processing fees 32 65 Gain from acquisition - 67,894 Securities gains (losses) 24 (119) Other gains (losses) (1,180) (151) ------ ---- Total noninterest income 10,231 77,522 (86.8%) ------ ------ Noninterest expenses -------------------- Personnel expense 22,424 18,378 Occupancy and equipment expense 5,842 4,179 Intangibles amortization 435 196 Acquisition expenses - 792 Other operating expenses 15,536 11,595 ------ ------ Total noninterest expenses 44,237 35,140 25.9% ------ ------ Income before income taxes 13,081 79,524 (83.6%) Income taxes 4,702 30,915 (84.8%) ----- ------ Net income $8,379 48,609 (82.8%) Preferred stock dividends and accretion (2,053) (1,963) ------ ------ Net income available to common shareholders $6,326 46,646 (86.4%) ====== ====== Earnings per share - basic $0.38 2.81 (86.5%) Earnings per share - diluted 0.38 2.80 (86.4%) ADDITIONAL INCOME STATEMENT INFORMATION --------------------------- Net interest income, as reported $62,713 45,553 Tax-equivalent adjustment (1) 626 350 --- --- Net interest income, tax- equivalent $63,339 45,903 38.0% ======= ====== (1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. First Bancorp and Subsidiaries Financial Summary - page 3 Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, -------- -------- PERFORMANCE RATIOS (annualized) 2010 2009 2010 2009 ---- ---- ---- ---- Return on average assets (1) 0.35% 6.40% 0.38% 3.52% Return on average common equity (2) 4.11% 76.25% 4.51% 41.61% Net interest margin - tax-equivalent (3) 4.35% 3.74% 4.25% 3.71% Efficiency ratio - tax-equivalent (3) (4) 60.31% 19.92% 60.13% 28.47% Net charge-offs to average non-covered loans 1.05% 0.49% 1.03% 0.41% COMMON SHARE DATA Cash dividends declared -common $0.08 0.08 $0.16 0.16 Stated book value - common 16.92 15.92 16.92 15.92 Tangible book value - common 12.70 11.63 12.70 11.63 Common shares outstanding at end of period 16,770,119 16,655,577 16,770,119 16,655,577 Weighted average shares outstanding - basic 16,751,962 16,636,769 16,742,240 16,622,697 Weighted average shares outstanding - diluted 16,784,126 16,672,989 16,772,969 16,658,917 CAPITAL RATIOS Tangible equity to tangible assets 8.56% 7.48% 8.56% 7.48% Tangible common equity to tangible assets 6.56% 5.60% 6.56% 5.60% Tier I leverage ratio 10.04% 11.77% 10.04% 11.77% Tier I risk-based capital ratio 15.17% 12.95% 15.17% 12.95% Total risk-based capital ratio 16.43% 14.20% 16.43% 14.20% AVERAGE BALANCES ($ in thousands) Total assets $3,316,971 2,725,214 $3,378,754 2,671,052 Loans 2,575,926 2,249,130 2,601,782 2,225,956 Earning assets 2,939,478 2,537,023 3,002,306 2,494,751 Deposits 2,818,581 2,255,374 2,864,562 2,180,899 Interest-bearing liabilities 2,664,399 2,161,671 2,731,974 2,121,214 Shareholders' equity 349,330 293,893 347,928 288,204 (1) Calculated by dividing annualized net income available to common shareholders by average assets. (2) Calculated by dividing annualized net income available to common shareholders by average common equity. (3) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. (4) Calculated by dividing noninterest expense by the sum of tax- equivalent net interest income plus noninterest income. TREND INFORMATION ($ in thousands except per share data) For the Three Months Ended -------------------------- December September June 30, March 31, 31, 30, June 30, INCOME STATEMENT 2010 2010 2009 2009 2009 ---- ---- ---- ---- ---- Net interest income - tax- equivalent (1) $31,867 31,472 31,280 30,731 23,630 Taxable equivalent adjustment (1) 331 295 247 221 187 Net interest income 31,536 31,177 31,033 30,510 23,443 Provision for loan losses 8,003 7,623 6,575 5,200 3,926 Noninterest income 4,537 5,694 6,255 5,741 72,776 Noninterest expense 21,957 22,280 22,458 20,953 19,203 Income before income taxes 6,113 6,968 8,255 10,098 73,090 Income taxes 2,172 2,530 2,987 3,716 28,562 Net income 3,941 4,438 5,268 6,382 44,528 Preferred stock dividends and accretion 1,026 1,027 1,014 995 1,022 Net income available to common shareholders 2,915 3,411 4,254 5,387 43,506 Earnings per common share - basic 0.17 0.20 0.25 0.32 2.62 Earnings per common share - diluted 0.17 0.20 0.25 0.32 2.61 ------------ ---- ---- ---- ---- ---- (1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. First Bancorp and Subsidiaries ============================== Financial Summary - page 4 ========================== At June At March 30, 31, CONSOLIDATED BALANCE SHEETS 2010 2010 ($ in thousands) ---- ---- Assets Cash and due from banks $59,944 51,827 Interest bearing deposits with banks 153,630 203,291 ------- ------- Total cash and cash equivalents 213,574 255,118 ------- ------- Investment securities 210,629 213,093 Presold mortgages 3,123 1,494 Loans - non-covered 2,099,099 2,117,873 Loans - covered by FDIC loss share agreements 455,477 488,259 ------- ------- Total loans 2,554,576 2,606,132 Allowance for loan losses (42,215) (39,690) ------- ------- Net loans 2,512,361 2,566,442 --------- --------- Premises and equipment 54,026 54,009 FDIC loss share receivable 118,072 117,003 Intangible assets 70,797 71,017 Other real estate owned - non- covered 14,690 10,818 Other real estate owned - covered 80,074 68,044 Other assets 40,996 36,150 ------ ------ Total assets $3,318,342 3,393,188 ========== ========= Liabilities Deposits: Non-interest bearing demand $293,555 282,298 NOW accounts 356,626 313,975 Money market accounts 494,979 537,296 Savings accounts 157,343 155,603 Brokered time deposits 91,195 90,061 Internet time deposits 54,535 77,209 Other time deposits > $100,000 668,044 711,231 Other time deposits 678,611 702,879 ------- ------- Total deposits 2,794,888 2,870,552 Repurchase agreements 61,766 67,394 Borrowings 76,579 76,695 Other liabilities 36,371 32,918 ------ ------ Total liabilities 2,969,604 3,047,559 --------- --------- Shareholders' equity Preferred stock 65,000 65,000 Discount on preferred stock (3,361) (3,575) Common stock 98,973 98,440 Common stock warrants 4,592 4,592 Retained earnings 186,552 184,982 Accumulated other comprehensive income (3,018) (3,810) ------ ------ Total shareholders' equity 348,738 345,629 ------- ------- Total liabilities and shareholders' equity $3,318,342 3,393,188 ========== ========= At Dec. At June 31, 30, One Year CONSOLIDATED BALANCE SHEETS 2009 2009 Change ($ in thousands) ---- ---- ------ Assets Cash and due from banks 60,071 47,761 25.5% Interest bearing deposits with banks 290,801 177,230 -13.3% ------- ------- Total cash and cash equivalents 350,872 224,991 -5.1% ------- ------- Investment securities 214,168 213,998 -1.6% Presold mortgages 3,967 8,993 -65.3% Loans - non-covered 2,132,843 2,174,422 -3.5% Loans - covered by FDIC loss share agreements 520,022 597,682 -23.8% ------- ------- Total loans 2,652,865 2,772,104 -7.8% Allowance for loan losses (37,343) (33,185) 27.2% ------- ------- Net loans 2,615,522 2,738,919 -8.3% --------- --------- Premises and equipment 54,159 52,362 3.2% FDIC loss share receivable 143,221 185,112 -36.2% Intangible assets 70,948 71,382 -0.8% Other real estate owned - non- covered 8,793 6,032 143.5% Other real estate owned - covered 47,430 12,415 545.0% Other assets 36,276 17,571 133.3% ------ ------ Total assets 3,545,356 3,531,775 -6.0% ========= ========= Liabilities Deposits: Non-interest bearing demand 272,422 271,669 8.1% NOW accounts 362,366 271,991 31.1% Money market accounts 496,940 449,007 10.2% Savings accounts 149,338 145,194 8.4% Brokered time deposits 76,332 108,933 -16.3% Internet time deposits 128,024 168,562 -67.6% Other time deposits > $100,000 704,128 673,370 -0.8% Other time deposits 743,558 786,440 -13.7% ------- ------- Total deposits 2,933,108 2,875,166 -2.8% Repurchase agreements 64,058 62,309 -0.9% Borrowings 176,811 230,099 -66.7% Other liabilities 28,996 34,059 6.8% ------ ------ Total liabilities 3,202,973 3,201,633 -7.2% --------- --------- Shareholders' equity Preferred stock 65,000 65,000 0.0% Discount on preferred stock (3,789) (4,190) -19.8% Common stock 98,099 97,409 1.6% Common stock warrants 4,592 4,592 0.0% Retained earnings 182,908 175,933 6.0% Accumulated other comprehensive income (4,427) (8,602) -64.9% ------ ------ Total shareholders' equity 342,383 330,142 5.6% ------- ------- Total liabilities and shareholders' equity 3,545,356 3,531,775 -6.0% ========= ========= First Bancorp and Subsidiaries Financial Summary - page 5 For the Three Months Ended -------------------------- June 30, March 31, YIELD INFORMATION 2010 2010 ---- ---- Yield on loans 5.86% 5.90% Yield on securities - tax-equivalent (1) 4.38% 4.13% Yield on other earning assets 0.32% 0.38% Yield on all interest earning assets 5.46% 5.37% Rate on interest bearing deposits 1.22% 1.32% Rate on other interest bearing liabilities 1.54% 1.41% Rate on all interest bearing liabilities 1.23% 1.32% Interest rate spread - tax-equivalent (1) 4.23% 4.05% Net interest margin - tax-equivalent (2) 4.35% 4.16% Average prime rate 3.25% 3.25% For the Three Months Ended -------------------------- December September 31, 30, June 30, YIELD INFORMATION 2009 2009 2009 ---- ---- ---- Yield on loans 5.97% 6.01% 6.00% Yield on securities - tax- equivalent (1) 3.97% 4.23% 4.46% Yield on other earning assets 0.36% 0.34% 0.26% Yield on all interest earning assets 5.35% 5.45% 5.65% Rate on interest bearing deposits 1.61% 1.82% 2.24% Rate on other interest bearing liabilities 1.17% 1.36% 2.40% Rate on all interest bearing liabilities 1.58% 1.78% 2.25% Interest rate spread - tax- equivalent (1) 3.77% 3.72% 3.40% Net interest margin - tax- equivalent (2) 3.92% 3.87% 3.74% Average prime rate 3.25% 3.25% 3.25% (1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. (2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. For the Three Months Ended -------------------------- NET INTEREST INCOME PURCHASE ACCOUNTING December September ADJUSTMENTS June 30, March 31, 31, 30, June 30, 2010 2010 2009 2009 2009 ---- ---- ---- ---- ---- Positive (negative) impact on net interest income Interest income - reduced by premium amortization on loans $(49) (49) (49) (49) (49) Interest income - increased by accretion of 1,659 1,484 1,469 - - loan discount Interest expense - reduced by premium amortization of deposits 731 1,184 1,639 2,072 - Interest expense - reduced by premium amortization of borrowings 116 116 116 116 116 --- --- --- --- --- Impact on net interest income $2,457 2,735 3,175 2,139 67 ====== ===== ===== ===== === First Bancorp and Subsidiaries Financial Summary - page 6 June 30, March 31, 2010 2010 ASSET QUALITY DATA ($ in thousands) --------- ---------- Non-covered nonperforming assets -------------------------------- Nonaccrual loans $73,152 63,415 Restructured loans 20,392 27,207 Accruing loans > 90 days past due - - --- --- Total non-covered nonperforming loans 93,544 90,622 Other real estate 14,690 10,818 ------ ------ Total non-covered nonperforming assets $108,234 101,440 ======== ======= Covered nonperforming assets (1) -------------------------------- Nonaccrual loans (2) $98,669 105,043 Restructured loans 8,450 11,379 Accruing loans > 90 days past due - - --- --- Total covered nonperforming loans 107,119 116,422 Other real estate 80,074 68,044 ------ ------ Total covered nonperforming assets $187,193 184,466 ======== ======= Total nonperforming assets $295,427 285,906 ======== ======= Asset Quality Ratios - All Assets --------------------------------- Net charge-offs to average loans - annualized 0.85% 0.81% Nonperforming loans to total loans 7.86% 7.94% Nonperforming assets to total assets 8.90% 8.43% Allowance for loan losses to total loans 1.65% 1.52% Allowance for loan losses to nonperforming loans 21.04% 19.17% Asset Quality Ratios - Based on Non- covered Assets only ------------------------------------ Net charge-offs to average non- covered loans - annualized 1.05% 1.01% Non-covered nonperforming loans to non-covered loans 4.46% 4.28% Non-covered nonperforming assets to total non-covered assets 3.89% 3.58% Allowance for loan losses to non- covered loans 2.01% 1.87% Allowance for loan losses to non- covered nonperforming loans 45.13% 43.80% Sept. Dec. 31, 30, June 30, 2009 2009 2009 ASSET QUALITY DATA ($ in thousands) --------- ------ --------- Non-covered nonperforming assets -------------------------------- Nonaccrual loans 62,206 51,015 43,210 Restructured loans 21,283 6,963 3,995 Accruing loans > 90 days past due - - - --- --- --- Total non-covered nonperforming loans 83,489 57,978 47,205 Other real estate 8,793 7,549 6,032 ----- ----- ----- Total non-covered nonperforming assets 92,282 65,527 53,237 ====== ====== ====== Covered nonperforming assets (1) -------------------------------- Nonaccrual loans (2) 117,916 122,308 78,413 Restructured loans - - - Accruing loans > 90 days past due - - - --- --- --- Total covered nonperforming loans 117,916 122,308 78,413 Other real estate 47,430 10,439 12,415 ------ ------ ------ Total covered nonperforming assets 165,346 132,747 90,828 ======= ======= ====== Total nonperforming assets 257,628 198,274 144,065 ======= ======= ======= Asset Quality Ratios - All Assets -------------------------- Net charge-offs to average loans - annualized 0.54% 0.57% 0.47% Nonperforming loans to total loans 7.59% 6.61% 4.53% Nonperforming assets to total assets 7.27% 5.62% 4.08% Allowance for loan losses to total loans 1.41% 1.26% 1.20% Allowance for loan losses to nonperforming loans 18.54% 19.11% 26.42% Asset Quality Ratios - Based on Non-covered Assets only ------------------------------- Net charge-offs to average non- covered loans - annualized 0.69% 0.72% 0.49% Non-covered nonperforming loans to non-covered loans 3.91% 2.70% 2.17% Non-covered nonperforming assets to total non-covered assets 3.10% 2.23% 1.82% Allowance for loan losses to non-covered loans 1.75% 1.60% 1.53% Allowance for loan losses to non-covered nonperforming loans 44.73% 59.41% 70.30% (1) Covered nonperforming assets consist of assets that are included in loss-share agreements with the FDIC. (2) At June 30, 2010, the contractual balance of the nonaccrual loans covered by the FDIC loss share agreements was $146.5 million.
First Bancorp
CONTACT: Jerry L. Ocheltree, +1-910-576-6171
Web Site: http://www.firstbancorp.com/
