First Quarter 2026 Financial Data | |||||
(Dollars in 000s, except | Q1-2026 | Q4-2025 | Q1-2025 | ||
Summary Income Statement | |||||
Total interest income | $ 142,390 | $ 143,634 | $ 132,624 | ||
Total interest expense | 35,274 | 37,435 | 39,777 | ||
Net interest income | 107,116 | 106,199 | 92,847 | ||
Provision for credit losses | 3,083 | 4,732 | 1,116 | ||
Noninterest income | 15,178 | (22,479) | 12,956 | ||
Noninterest expenses | 60,218 | 62,043 | 57,911 | ||
Income tax expense | 12,334 | 1,232 | 10,370 | ||
Net income | $ 46,659 | $ 15,713 | $ 36,406 | ||
Key Metrics | |||||
Diluted EPS | $ 1.13 | $ 0.38 | $ 0.88 | ||
Adjusted diluted EPS (1) | 1.13 | 1.19 | 0.88 | ||
Book value per share | 40.68 | 39.89 | 36.46 | ||
Tangible book value per share | 29.01 | 28.23 | 24.69 | ||
ROA | 1.48 % | 0.49 % | 1.21 % | ||
Adjusted ROA (1) | 1.48 % | 1.54 % | 1.21 % | ||
ROCE | 11.22 % | 3.83 % | 10.06 % | ||
Adjusted ROCE (1) | 11.22 % | 12.01 % | 10.06 % | ||
ROTCE | 16.05 % | 5.80 % | 15.54 % | ||
Adjusted ROTCE (1) | 16.05 % | 17.45 % | 15.54 % | ||
NIM | 3.67 % | 3.58 % | 3.25 % | ||
NIM- T/E | 3.69 % | 3.60 % | 3.27 % | ||
Efficiency ratio | 49.05 % | 73.75 % | 54.51 % | ||
Quarterly NCO ratio | 0.06 % | 0.05 % | 0.17 % | ||
ACL ratio | 1.42 % | 1.42 % | 1.49 % | ||
Capital Ratios (2) | |||||
Tangible common equity | 9.63 % | 9.61 % | 8.55 % | ||
Common equity tier I | 14.11 % | 14.10 % | 14.52 % | ||
Total risk-based capital | 16.10 % | 16.12 % | 16.80 % | ||
(1) Q4-2025 adjusted to exclude impact of securities loss of $43.7 million | |||||
(2) March 31, 2026 ratios are preliminary. |
First Quarter 2026 Highlights
- D-EPS was $1.13 per share for the first quarter of 2026 compared to $0.38 for the linked quarter and $0.88 for the like quarter.
- The net interest margin was 3.67% for the quarter ended March 31, 2026, an expansion of 0.09% from the linked quarter and 0.42% from the like quarter.
- The efficiency ratio for the quarter ended March 31, 2026 was 49.05%, compared 73.75% for the linked quarter and 54.51% for the like quarter. See Appendix I.
- Total loans were $8.8 billion at March 31, 2026, representing an increase of $71.4 million, or 3.3% annualized. Adjusting for the paydown of one larger seasonal loan, loan growth for the quarter was 5.9% annualized.
- Total loan yield was 5.58%, down 1 basis point from the linked quarter and up 6 basis points from the like quarter.
- The yield on securities increased 5 basis points to 2.74% for the quarter ended March 31, 2026 from 2.69% for the linked quarter.
- Total cost of funds decreased 5 basis points to 1.31% for the quarter ended March 31, 2026 from 1.36% for the linked quarter and 1.51% for the like quarter.
- Average core deposits were $10.8 billion for the first quarter of 2026, a decrease of $13.2 million from the linked quarter and an increase of $227.6 million for the like quarter. Total cost of deposits was 1.28%, a decrease of 4 basis points from 1.32% for the linked quarter and a decrease of 18 basis points from the like quarter at 1.46%.
- Expense management continues to be a focus. Noninterest expenses of $60.2 million represented a $1.8 million decrease from the linked quarter and a $2.3 million increase from the like quarter. The linked quarter decrease was driven by a $1.3 million decrease in Other operating expenses and a $0.9 million decrease in Total personnel expense.
- Noninterest-bearing demand deposits were $3.6 billion, representing 33% of total deposits at March 31, 2026. During the first quarter of 2026, period end customer deposits grew $264.0 million.
- The loan-to-deposit ratio was 79.9% as of March 31, 2026.
SOUTHERN PINES, N.C., April 22, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited first quarter earnings today. The Company announced net income of $46.7 million, or $1.13 diluted earnings per share ("D-EPS"), for the three months ended March 31, 2026 compared to $15.7 million, or $0.38 D-EPS, for the three months ended December 31, 2025 ("linked quarter") and $36.4 million, or $0.88 D-EPS, for the first quarter of 2025 ("like quarter").
The Company continued to enhance net interest income and net interest margin ("NIM") during the first quarter of 2026. The Company recorded net interest income of $107.1 million for the first quarter of 2026, compared to $106.2 million for the linked quarter and $92.8 million for the like quarter. NIM for the first quarter of 2026 expanded to 3.67% from 3.58% for the linked quarter and 3.25% for the like quarter.
First Bancorp also continued to maintain expense control with noninterest expenses of $60.2 million for the first quarter of 2026, down from $62.0 million for the linked quarter, and up from $57.9 million for the like quarter. The efficiency ratio for the quarter ended March 31, 2026 was 49.05%, compared to an adjusted efficiency ratio of 48.53% for the linked quarter and an efficiency ratio of 54.51% for the like quarter. See Appendix I for a reconciliation of the efficiency ratio and the adjusted efficiency ratio.
Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp delivered a strong start to 2026 with financial performance that underscores the benefit of our balance sheet management activities, continued margin expansion, and prudent expense control. Earnings continue to benefit from the repositioning of lower-yielding assets into higher-yielding opportunities, while our liquidity, capital and credit quality remain strong. We are highly encouraged by our first quarter performance and remain confident in our ability to sustain momentum and drive continued success in 2026."
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2026 was $107.1 million, an increase of 0.9% from the linked quarter of $106.2 million, despite two fewer calendar days, and an increase of 15.4% from the like quarter of $92.8 million. The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025, while increasing loan yields through originations as well as increased securities yields resulting from the securities loss-earnback transactions executed in the third and fourth quarters of 2025.
The Company's NIM for the first quarter of 2026 was 3.67%, an increase of 9 basis points from the linked quarter and 42 basis points from the like quarter.
The linked quarter expansion of NIM was driven by a $246.3 million increase in average loans, partially offset by a 1 basis point decrease in loan yield to 5.58% while cost of interest bearing deposits decreased 8 basis points driven by the three rate cuts between September and December 2025. While average interest-earning assets contracted $6.9 million in total during the quarter, the Company saw a shift in the mix of interest-earning assets, with loans increasing from 72.4% of average interest-earning assets to 74.5%, while average securities contracted by $125.0 million and average short-term investments contracted by $128.2 million.
Due to similar factors, the like quarter expansion of NIM was driven by growth of $674.3 million in average loans, coupled with a 6 basis point yield increase while the cost of interest bearing deposits decreased 25 basis points. Loans grew to 74.5% of average interest-earning assets while securities contracted to 23.1% of average interest-bearing assets and short-term investments contracted to 2.3% of average interest-bearing assets, again reflecting the shift in the mix of interest-earning assets to higher yielding assets.
For the Three Months Ended | ||||||
YIELD INFORMATION | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
Yield on loans | 5.58 % | 5.59 % | 5.52 % | |||
Yield on securities | 2.74 % | 2.69 % | 2.28 % | |||
Yield on other earning assets | 4.36 % | 4.31 % | 4.42 % | |||
Yield on total interest-earning assets | 4.89 % | 4.84 % | 4.65 % | |||
Cost of interest-bearing deposits | 1.89 % | 1.97 % | 2.14 % | |||
Cost of borrowings | 6.68 % | 7.04 % | 7.31 % | |||
Cost of total interest-bearing liabilities | 1.94 % | 2.02 % | 2.21 % | |||
Total cost of funds | 1.31 % | 1.36 % | 1.51 % | |||
Cost of total deposits | 1.28 % | 1.32 % | 1.46 % | |||
Net interest margin (1) | 3.67 % | 3.58 % | 3.25 % | |||
Net interest margin - tax-equivalent (2) | 3.69 % | 3.60 % | 3.27 % | |||
Average prime rate | 6.75 % | 7.02 % | 7.50 % | |||
(1) Calculated by dividing annualized net interest income by average earning assets for the period. | ||||||
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense. | ||||||
See Appendix 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 March 31, 2026, December 31, 2025 and March 31, 2025, the Company recorded $3.1 million, $4.7 million and $1.1 million in provision for credit losses, respectively. The provision for the first quarter of 2026 was driven by net charge-offs of $1.4 million and reserves related to $71.4 million of net loan growth. The Allowance for Credit Losses increased $1.2 million to $124.7 million, or 1.42% of loans. Additionally, the $0.5 million provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments.
The Company did not adjust the incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of March 31, 2026. The remaining incremental reserve contributes two basis points to the Allowance for Credit Losses at period end. The impact of Hurricane Helene on net income and D-EPS for the first and fourth quarters of 2025 is presented in Appendix H.
Asset quality remained strong with annualized net loan charge-offs of 0.06% for the first quarter of 2026. Total nonperforming assets ("NPAs") totaled $41.8 million at March 31, 2026, or 0.32% of total assets, up slightly from 0.30% at December 31, 2025 and 0.27% at March 31, 2025.
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA ($ in thousands) | March 31, 2026 | December 31, | March 31, 2025 | |||
Nonperforming assets | ||||||
Nonaccrual loans | $ 41,032 | $ 36,315 | $ 29,081 | |||
Accruing loans> 90 days past due | - | - | - | |||
Total nonperforming loans | 41,032 | 36,315 | 29,081 | |||
Foreclosed real estate | 740 | 1,425 | 4,769 | |||
Total nonperforming assets | $ 41,772 | $ 37,740 | $ 33,850 | |||
Asset Quality Ratios | ||||||
Quarterly net charge-offs to average loans - annualized | 0.06 % | 0.05 % | 0.17 % | |||
Nonperforming loans to total loans | 0.47 % | 0.42 % | 0.36 % | |||
Nonperforming assets to total assets | 0.32 % | 0.30 % | 0.27 % | |||
Allowance for credit losses to total loans | 1.42 % | 1.42 % | 1.49 % |
Noninterest Income
Total noninterest income for the first quarter of 2026 was $15.2 million, a $37.7 million increase from the linked quarter, which included a $43.7 million loss on our securities loss-earnback transaction in the fourth quarter of 2025. Adjusting for the securities loss, total noninterest income decreased 28.6% from the $21.2 million adjusted noninterest income for the linked quarter. The linked quarter also included a pretax gain of $4.6 million realized upon the sale of an office building. The current quarter reflected a 17.2% increase from the $13.0 million recorded for the like quarter, primarily related to a $0.9 million increase in SBA loans sale gains and a $0.7 million increase in Other income, net.
Noninterest Expenses
Noninterest expenses amounted to $60.2 million for the first quarter of 2026 compared to $62.0 million for the linked quarter and $57.9 million for the like quarter. The $1.8 million, or 2.9%, decrease in noninterest expense from the linked quarter was driven by a $1.3 million decrease in Other operating expenses as well as a $0.9 million decrease in Total personnel expenses. The $2.3 million increase from the like quarter was driven by a $1.7 million increase in Total personnel expenses and a $0.7 million increase in Other operating expenses. For the fourth quarter of 2025, Other operating expenses included several elevated expense categories arising from increased customer-driven and seasonal activity.
Income Taxes
Income tax expense totaled $12.3 million for the first quarter of 2026 compared to $1.2 million for the linked quarter and $10.4 million for the like quarter. These equated to effective tax rates of 20.9%, 7.3% and 22.2% for the respective periods. The fourth quarter of 2025 included approximately $2.1 million of net discrete tax benefits, primarily arising from state taxes, including the continued NC graduated tax rate reductions.
Balance Sheet
Total assets at March 31, 2026 were $12.9 billion, an increase of $279.4 million, or 8.9% annualized, from the linked quarter and $511.5 million, or 4.1%, from a year earlier.
Key period end balance sheet components are presented below.
BALANCES ($ in thousands) | March 31, | December | March 31, | Change | Change | |||||
Total assets | $ 12,947,734 | $ 12,668,339 | $ 12,436,245 | 2.2 % | 4.1 % | |||||
Loans | 8,793,814 | 8,722,419 | 8,103,033 | 0.8 % | 8.5 % | |||||
Investment securities | 2,491,035 | 2,561,655 | 2,582,781 | (2.8) % | (3.6) % | |||||
Total cash and cash equivalents | 597,991 | 309,595 | 772,441 | 93.2 % | (22.6) % | |||||
Noninterest-bearing deposits | 3,596,629 | 3,486,985 | 3,476,786 | 3.1 % | 3.4 % | |||||
Interest-bearing deposits | 7,415,854 | 7,261,436 | 7,267,873 | 2.1 % | 2.0 % | |||||
Borrowings | 74,643 | 74,569 | 92,055 | 0.1 % | (18.9) % | |||||
Shareholders' equity | 1,682,950 | 1,654,168 | 1,508,176 | 1.7 % | 11.6 % |
Driven by prepayments and maturities, total investment securities decreased to $2.5 billion at March 31, 2026, reflecting a $70.6 million decrease from the linked quarter. Total unrealized losses on available for sale investment securities was $197.7 million at March 31, 2026, as compared to $194.1 million at December 31, 2025 and $321.2 million at March 31, 2025.
Total loans amounted to $8.8 billion at March 31, 2026, an increase of $71.4 million, or 3.3% annualized, from December 31, 2025 and an increase of $690.8 million, or 8.5%, from March 31, 2025. Adjusting for the paydown of one larger seasonal loan, loan growth for the quarter ended March 31, 2026 was 5.9% annualized. Please see the below table for total loan portfolio mix. As of March 31, 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 6.5% of the total portfolio at March 31, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Commercial and industrial | $ 1,000,037 | 11 % | $ 1,046,438 | 12 % | $ 890,071 | 11 % | ||||||
Construction, development & other land | 821,826 | 9 % | 753,199 | 9 % | 644,439 | 8 % | ||||||
Commercial real estate - owner occupied | 1,352,473 | 16 % | 1,353,912 | 15 % | 1,233,732 | 15 % | ||||||
Commercial real estate - non-owner | 2,921,210 | 33 % | 2,843,555 | 33 % | 2,701,746 | 34 % | ||||||
Multi-family real estate | 545,586 | 6 % | 537,015 | 6 % | 512,958 | 6 % | ||||||
Residential 1-4 family real estate | 1,717,550 | 20 % | 1,736,453 | 20 % | 1,709,593 | 21 % | ||||||
Home equity loans/lines of credit | 369,062 | 4 % | 383,652 | 4 % | 341,240 | 4 % | ||||||
Consumer loans | 66,430 | 1 % | 67,458 | 1 % | 68,115 | 1 % | ||||||
Loans, gross | 8,794,174 | 100 % | 8,721,682 | 100 % | 8,101,894 | 100 % | ||||||
Unamortized net deferred loan | (360) | 737 | 1,139 | |||||||||
Total loans | $ 8,793,814 | $ 8,722,419 | $ 8,103,033 | |||||||||
Total deposits were $11.0 billion at March 31, 2026, an increase of $264.1 million, or 10.0% annualized, from December 31, 2025 and $267.8 million, or 2.5%, from March 31, 2025.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at March 31, 2026. As presented in the table below, our deposit mix has remained relatively consistent.
DEPOSIT PORTFOLIO | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Noninterest-bearing checking accounts | $ 3,596,629 | 33 % | $ 3,486,985 | 32 % | $ 3,476,786 | 32 % | ||||||
Interest-bearing checking accounts | 1,462,606 | 13 % | 1,420,795 | 13 % | 1,448,377 | 14 % | ||||||
Money market accounts | 4,631,619 | 42 % | 4,510,356 | 42 % | 4,386,469 | 41 % | ||||||
Savings accounts | 519,266 | 5 % | 526,643 | 5 % | 539,632 | 5 % | ||||||
Other time deposits | 489,257 | 4 % | 493,282 | 5 % | 533,723 | 5 % | ||||||
Time deposits>$250,000 | 308,177 | 3 % | 305,473 | 3 % | 349,990 | 3 % | ||||||
Total customer deposits | 11,007,554 | 100 % | 10,743,534 | 100 % | 10,734,977 | 100 % | ||||||
Brokered deposits | 4,929 | - % | 4,887 | - % | 9,682 | - % | ||||||
Total deposits | $ 11,012,483 | 100 % | $ 10,748,421 | 100 % | $ 10,744,659 | 100 % | ||||||
As of March 31, 2026 and December 31, 2025, estimated insured deposits totaled $6.5 billion, or 59.0%, and $6.5 billion, or 60.2%, of total deposits, respectively. In addition, at March 31, 2026 and December 31, 2025, there were collateralized deposits of $723.8 million and $730.4 million, respectively, such that approximately 65.6% and 67.0%, 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 March 31, 2026 of 16.10%, down slightly from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.80%.
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 9.63% at March 31, 2026, an increase of 2 basis points from the linked quarter and 108 basis points from March 31, 2025. The increase in TCE from the like quarter was driven by improvements in the level of unrealized losses on the available for sale securities portfolio, partially a result of the 2025 securities loss-earnback transactions along with market improvements. 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 | March 31, 2026 | December 31, | March 31, 2025 | |||
Tangible common equity to tangible assets (non-GAAP) | 9.63 % | 9.61 % | 8.55 % | |||
Common equity tier I capital ratio | 14.11 % | 14.10 % | 14.52 % | |||
Tier I leverage ratio | 11.44 % | 11.21 % | 11.41 % | |||
Tier I risk-based capital ratio | 14.85 % | 14.87 % | 15.34 % | |||
Total risk-based capital ratio | 16.10 % | 16.12 % | 16.80 % |
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 March 31, 2026 was 16.7%. In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 34.0%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.9 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 Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
Non-GAAP Measures
In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP"). Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance. Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted diluted earnings per share.
First Bancorp and Subsidiaries Financial Summary | ||||||
CONSOLIDATED INCOME STATEMENT | ||||||
For the Three Months Ended | ||||||
($ in thousands, except per share data - unaudited) | March 31, 2026 | December 31, | March 31, 2025 | |||
Interest income | ||||||
Interest and fees on loans | $ 120,747 | $ 120,020 | $ 110,497 | |||
Interest on investment securities: | ||||||
Taxable interest income | 17,556 | 18,103 | 15,524 | |||
Tax-exempt interest income | 1,115 | 1,115 | 1,116 | |||
Other, principally overnight investments | 2,972 | 4,396 | 5,487 | |||
Total interest income | 142,390 | 143,634 | 132,624 | |||
Interest expense | ||||||
Interest on deposits | 34,046 | 35,959 | 38,119 | |||
Interest on borrowings | 1,228 | 1,476 | 1,658 | |||
Total interest expense | 35,274 | 37,435 | 39,777 | |||
Net interest income | 107,116 | 106,199 | 92,847 | |||
Provision for credit losses | 3,083 | 4,732 | 1,116 | |||
Net interest income after provision for credit losses | 104,033 | 101,467 | 91,731 | |||
Noninterest income | ||||||
Service charges on deposit accounts | 3,954 | 4,269 | 3,767 | |||
Other service charges and fees | 5,942 | 5,653 | 5,919 | |||
Presold mortgage loan fees and gains on sale | 669 | 583 | 450 | |||
Commissions from sales of financial products | 1,492 | 1,800 | 1,408 | |||
SBA loan sale gains | 903 | - | 52 | |||
Bank-owned life insurance income | 1,340 | 1,375 | 1,228 | |||
Securities losses, net | - | (43,722) | - | |||
Other Income, net | 878 | 7,563 | 132 | |||
Total noninterest income | 15,178 | (22,479) | 12,956 | |||
Noninterest expenses | ||||||
Salaries, incentives and commissions expense | 29,978 | 30,747 | 28,661 | |||
Employee benefit expense | 6,516 | 6,673 | 6,095 | |||
Total personnel expense | 36,494 | 37,420 | 34,756 | |||
Occupancy and equipment expense | 5,355 | 4,903 | 5,192 | |||
Intangibles amortization expense | 1,247 | 1,294 | 1,516 | |||
Other operating expenses | 17,122 | 18,426 | 16,447 | |||
Total noninterest expenses | 60,218 | 62,043 | 57,911 | |||
Income before income taxes | 58,993 | 16,945 | 46,776 | |||
Income tax expense | 12,334 | 1,232 | 10,370 | |||
Net income | $ 46,659 | $ 15,713 | $ 36,406 | |||
Earnings per common share: | ||||||
Basic | $ 1.13 | $ 0.38 | $ 0.88 | |||
Diluted | 1.13 | 0.38 | 0.88 | |||
First Bancorp and Subsidiaries Financial Summary | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
($ in thousands - unaudited) | March 31, | December 31, | March 31, | |||
Assets | ||||||
Cash and due from banks, noninterest-bearing | $ 135,176 | $ 146,759 | $ 149,781 | |||
Due from banks, interest-bearing | 462,815 | 162,836 | 622,660 | |||
Total cash and cash equivalents | 597,991 | 309,595 | 772,441 | |||
Securities available for sale | 1,979,606 | 2,048,556 | 2,064,516 | |||
Securities held to maturity | 511,429 | 513,099 | 518,265 | |||
Presold mortgages and SBA loans held for sale | 11,191 | 7,790 | 5,166 | |||
Loans | 8,793,814 | 8,722,419 | 8,103,033 | |||
Allowance for credit losses on loans | (124,734) | (123,581) | (120,631) | |||
Net loans | 8,669,080 | 8,598,838 | 7,982,402 | |||
Premises and equipment, net | 139,374 | 139,125 | 141,954 | |||
Accrued interest receivable | 37,296 | 39,206 | 35,452 | |||
Goodwill | 478,750 | 478,750 | 478,750 | |||
Other intangible assets, net | 15,985 | 17,232 | 21,388 | |||
Bank-owned life insurance | 194,626 | 193,286 | 189,597 | |||
Other assets | 312,406 | 322,862 | 226,314 | |||
Total assets | $ 12,947,734 | $ 12,668,339 | $ 12,436,245 | |||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing deposits | $ 3,596,629 | $ 3,486,985 | $ 3,476,786 | |||
Interest-bearing deposits | 7,415,854 | 7,261,436 | 7,267,873 | |||
Total deposits | 11,012,483 | 10,748,421 | 10,744,659 | |||
Borrowings | 74,643 | 74,569 | 92,055 | |||
Accrued interest payable | 3,733 | 3,747 | 4,935 | |||
Other liabilities | 173,925 | 187,434 | 86,420 | |||
Total liabilities | 11,264,784 | 11,014,171 | 10,928,069 | |||
Shareholders' equity | ||||||
Common stock | 968,675 | 973,884 | 971,174 | |||
Retained earnings | 866,387 | 829,659 | 783,630 | |||
Stock in rabbi trust assumed in acquisition | (893) | (885) | (1,166) | |||
Rabbi trust obligation | 893 | 885 | 1,166 | |||
Accumulated other comprehensive loss | (152,112) | (149,375) | (246,628) | |||
Total shareholders' equity | 1,682,950 | 1,654,168 | 1,508,176 | |||
Total liabilities and shareholders' equity | $ 12,947,734 | $ 12,668,339 | $ 12,436,245 | |||
First Bancorp and Subsidiaries Financial Summary | ||||||||||
TREND INFORMATION | ||||||||||
For the Three Months Ended | ||||||||||
March 31, | December | September | June 30, | March 31, | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||
ROA (1) | 1.48 % | 0.49 % | 0.64 % | 1.24 % | 1.21 % | |||||
Adjusted ROA (2) | 1.48 % | 1.54 % | 1.31 % | 1.24 % | 1.21 % | |||||
ROCE (3) | 11.22 % | 3.83 % | 5.14 % | 10.11 % | 10.06 % | |||||
Adjusted ROCE (4) | 11.22 % | 12.01 % | 10.55 % | 10.11 % | 10.06 % | |||||
ROTCE (5) | 16.05 % | 5.80 % | 7.83 % | 15.25 % | 15.54 % | |||||
Adjusted ROTCE (6) | 16.05 % | 17.45 % | 15.66 % | 15.25 % | 15.54 % | |||||
Efficiency ratio (7) | 49.05 % | 73.75 % | 66.95 % | 53.00 % | 54.51 % | |||||
Adjusted efficiency ratio (7) | 49.05 % | 48.53 % | 51.09 % | 53.00 % | 54.51 % | |||||
COMMON SHARE DATA | ||||||||||
Cash dividends declared - common | $ 0.24 | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.22 | |||||
Book value per common share | $ 40.68 | $ 39.89 | $ 38.67 | $ 37.53 | $ 36.46 | |||||
Tangible book value per share (8) | $ 29.01 | $ 28.23 | $ 26.98 | $ 25.82 | $ 24.69 | |||||
Common shares outstanding at end of period | 41,375,026 | 41,466,227 | 41,465,437 | 41,468,098 | 41,368,828 | |||||
Weighted average shares outstanding - diluted | 41,459,357 | 41,481,132 | 41,481,542 | 41,441,393 | 41,406,525 | |||||
CAPITAL INFORMATION (preliminary for current quarter) | ||||||||||
Tangible common equity to tangible assets (9) | 9.63 % | 9.61 % | 9.12 % | 8.83 % | 8.55 % | |||||
Common equity tier I capital ratio | 14.11 % | 14.10 % | 14.35 % | 14.64 % | 14.52 % | |||||
Total risk-based capital ratio | 16.10 % | 16.12 % | 16.58 % | 16.90 % | 16.80 % | |||||
(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. | ||||||||||
For the Three Months Ended | ||||||||||
INCOME STATEMENT ($ in thousands except per share data) | March 31, | December | September | June 30, | March 31, | |||||
Net interest income | $ 107,116 | $ 106,199 | $ 102,489 | $ 96,676 | $ 92,847 | |||||
Provision for credit losses | 3,083 | 4,732 | 3,442 | 2,212 | 1,116 | |||||
Noninterest income | 15,178 | (22,299) | (12,879) | 14,341 | 12,956 | |||||
Noninterest expense | 60,218 | 62,223 | 60,211 | 58,983 | 57,911 | |||||
Income before income taxes | 58,993 | 16,945 | 25,957 | 49,822 | 46,776 | |||||
Income tax expense | 12,334 | 1,232 | 5,594 | 11,256 | 10,370 | |||||
Net income | 46,659 | 15,713 | 20,363 | 38,566 | 36,406 | |||||
Earnings per common share - diluted | $ 1.13 | $ 0.38 | $ 0.49 | $ 0.93 | $ 0.88 | |||||
First Bancorp and Subsidiaries Financial Summary | |||||||||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
($ in thousands) | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | ||||||||
Assets | |||||||||||||||||
Loans (1) (2) | $ 8,781,728 | $ 120,747 | 5.58 % | $ 8,535,422 | $ 120,020 | 5.59 % | $ 8,107,394 | $ 110,497 | 5.52 % | ||||||||
Taxable securities | 2,442,140 | 17,556 | 2.88 % | 2,566,169 | 18,103 | 2.82 % | 2,629,066 | 15,524 | 2.36 % | ||||||||
Non-taxable securities | 284,712 | 1,115 | 1.57 % | 285,729 | 1,115 | 1.56 % | 288,905 | 1,116 | 1.55 % | ||||||||
Short-term investments, primarily interest-bearing cash | 276,471 | 2,972 | 4.36 % | 404,658 | 4,396 | 4.31 % | 503,377 | 5,487 | 4.42 % | ||||||||
Total interest-earning assets | 11,785,051 | 142,390 | 4.89 % | 11,791,978 | 143,634 | 4.84 % | 11,528,742 | 132,624 | 4.65 % | ||||||||
Cash and due from banks | 147,124 | 147,748 | 133,756 | ||||||||||||||
Premises and equipment | 139,775 | 140,552 | 143,064 | ||||||||||||||
Other assets | 690,864 | 635,861 | 421,248 | ||||||||||||||
Total assets | $ 12,762,814 | $ 12,716,139 | $ 12,226,810 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,416,600 | $ 2,230 | 0.64 % | $ 1,381,272 | $ 2,100 | 0.60 % | $ 1,431,556 | $ 2,497 | 0.71 % | ||||||||
Money market deposits | 4,566,409 | 26,516 | 2.35 % | 4,539,138 | 28,358 | 2.48 % | 4,337,560 | 29,180 | 2.73 % | ||||||||
Savings deposits | 524,123 | 241 | 0.19 % | 530,147 | 249 | 0.19 % | 539,104 | 240 | 0.18 % | ||||||||
Other time deposits | 495,115 | 2,819 | 2.31 % | 503,149 | 2,937 | 2.32 % | 558,648 | 3,353 | 2.43 % | ||||||||
Time deposits>$250,000 | 304,089 | 2,240 | 2.99 % | 305,844 | 2,315 | 3.00 % | 352,174 | 2,849 | 3.28 % | ||||||||
Total interest-bearing deposits | 7,306,336 | 34,046 | 1.89 % | 7,259,550 | 35,959 | 1.97 % | 7,219,042 | 38,119 | 2.14 % | ||||||||
Short-term borrowings | 745 | 1 | 0.61 % | 757 | 1 | 0.61 % | 794 | 1 | 0.60 % | ||||||||
Long-term borrowings | 73,858 | 1,227 | 6.74 % | 82,360 | 1,475 | 7.10 % | 91,166 | 1,657 | 7.37 % | ||||||||
Total interest-bearing liabilities | 7,380,939 | 35,274 | 1.94 % | 7,342,667 | 37,435 | 2.02 % | 7,311,002 | 39,777 | 2.21 % | ||||||||
Noninterest-bearing checking | 3,515,359 | 3,575,317 | 3,375,098 | ||||||||||||||
Other liabilities | 179,753 | 170,179 | 72,839 | ||||||||||||||
Shareholders' equity | 1,686,763 | 1,627,976 | 1,467,871 | ||||||||||||||
Total liabilities and shareholders' equity | $ 12,762,814 | $ 12,716,139 | $ 12,226,810 | ||||||||||||||
Net yield on interest-earning assets and net interest income | $ 107,116 | 3.67 % | $ 106,199 | 3.58 % | $ 92,847 | 3.25 % | |||||||||||
Net yield on interest-earning assets and net interest income - | $ 107,595 | 3.69 % | $ 106,601 | 3.60 % | $ 93,284 | 3.27 % | |||||||||||
Interest rate spread | 2.95 % | 2.82 % | 2.44 % | ||||||||||||||
Average prime rate | 6.75 % | 7.02 % | 7.50 % | ||||||||||||||
(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. |
(2) Includes accretion of discount on acquired loans of $1.1 million, $1.3 million and $1.8 million for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. |
(3) Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
Reconciliation of non-GAAP measures APPENDIX A:Reconciliation of Common Equity to Tangible Common Equity ("TCE") | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Total shareholders' common equity | $ 1,682,950 | $ 1,654,168 | $ 1,603,323 | $ 1,556,180 | $ 1,508,176 | |||||
Less: Goodwill and other intangibles, net of related taxes | (482,639) | (483,644) | (484,623) | (485,657) | (486,749) | |||||
Tangible common equity | $ 1,200,311 | $ 1,170,524 | $ 1,118,700 | $ 1,070,523 | $ 1,021,427 | |||||
APPENDIX B:Calculation of Tangible Book Value Per Share ("TBVPS") | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands except per share data) | March 31, | December | September | June 30, | March 31, | |||||
Tangible common equity (Appendix A) | $ 1,200,311 | $ 1,170,524 | $ 1,118,700 | $ 1,070,523 | $ 1,021,427 | |||||
Common shares outstanding | 41,375,026 | 41,466,227 | 41,465,437 | 41,468,098 | 41,368,828 | |||||
Tangible book value per common share | $ 29.01 | $ 28.23 | $ 26.98 | $ 25.82 | $ 24.69 | |||||
APPENDIX C:TCE Ratio | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Tangible common equity (Appendix A) | $ 1,200,311 | $ 1,170,524 | $ 1,118,700 | $ 1,070,523 | $ 1,021,427 | |||||
Total assets | 12,947,734 | 12,668,339 | 12,750,263 | 12,608,265 | 12,436,245 | |||||
Less: Goodwill and other intangibles, net of related | (482,639) | (483,644) | (484,623) | (485,657) | (486,749) | |||||
Tangible assets ("TA") | $ 12,465,095 | $ 12,184,695 | $ 12,265,640 | $ 12,122,608 | $ 11,949,496 | |||||
TCE to TA ratio | 9.63 % | 9.61 % | 9.12 % | 8.83 % | 8.55 % | |||||
Reconciliation of non-GAAP measures, continued APPENDIX D:Adjusted Net Income and Adjusted D-EPS | ||||||
For the Three Months Ended | ||||||
($ in thousands) | March 31, | December | March 31, | |||
Net income (A) | $ 46,659 | $ 15,713 | $ 36,406 | |||
Impact of loss-earnback | ||||||
Securities loss from loss-earnback | - | 43,722 | - | |||
Less, tax impact | - | (10,141) | - | |||
After-tax impact of loss-earnback | - | 33,581 | - | |||
Adjusted net income (B) | $ 46,659 | $ 49,294 | $ 36,406 | |||
Weighted average shares outstanding - diluted (C) | 41,459,357 | 41,481,132 | 41,406,525 | |||
D-EPS (A/C) | $ 1.13 | $ 0.38 | $ 0.88 | |||
Adjusted D-EPS (B/C) | $ 1.13 | $ 1.19 | $ 0.88 | |||
APPENDIX E:Calculation of Return on Average Assets ("ROA") and Adjusted ROA | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Net income (A) | $ 46,659 | $ 15,713 | $ 20,363 | $ 38,566 | $ 36,406 | |||||
After-tax impact of loss-earnback | - | 33,581 | 21,433 | - | - | |||||
Adjusted net income (B) | $ 46,659 | $ 49,294 | $ 41,796 | $ 38,566 | $ 36,406 | |||||
Average total assets (C) | $ 12,762,814 | $ 12,716,139 | $ 12,640,016 | $ 12,458,372 | $ 12,226,810 | |||||
ROA (A/C) | 1.48 % | 0.49 % | 0.64 % | 1.24 % | 1.21 % | |||||
Adjusted ROA (B/C) | 1.48 % | 1.54 % | 1.31 % | 1.24 % | 1.21 % | |||||
APPENDIX F:Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Net income (A) | $ 46,659 | $ 15,713 | $ 20,363 | $ 38,566 | $ 36,406 | |||||
After-tax impact of loss-earnback | - | 33,581 | 21,433 | - | - | |||||
Adjusted net income (B) | $ 46,659 | $ 49,294 | $ 41,796 | $ 38,566 | $ 36,406 | |||||
Average common equity (C) | $ 1,686,763 | $ 1,627,976 | $ 1,571,104 | $ 1,530,550 | $ 1,467,871 | |||||
ROCE (A/C) | 11.22 % | 3.83 % | 5.14 % | 10.11 % | 10.06 % | |||||
Adjusted ROCE (B/C) | 11.22 % | 12.01 % | 10.55 % | 10.11 % | 10.06 % | |||||
Reconciliation of non-GAAP measures, continued APPENDIX G:Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Net Income | $ 46,659 | $ 15,713 | $ 20,363 | $ 38,566 | $ 36,406 | |||||
Intangible asset amortization, net of taxes | 960 | 994 | 1,066 | 1,123 | 1,159 | |||||
Tangible Net income (A) | 47,619 | 16,707 | 21,429 | 39,689 | 37,565 | |||||
After-tax impact of loss-earnback | - | 33,581 | 21,433 | - | - | |||||
Adjusted tangible net income (B) | $ 47,619 | $ 50,288 | $ 42,862 | $ 39,689 | $ 37,565 | |||||
Average common equity | $ 1,686,763 | $ 1,627,976 | $ 1,571,104 | $ 1,530,550 | $ 1,467,871 | |||||
Less: Average goodwill and other intangibles, net of | (483,314) | (484,313) | (485,331) | (486,393) | (487,395) | |||||
Average TCE (C) | $ 1,203,449 | $ 1,143,663 | $ 1,085,773 | $ 1,044,157 | $ 980,476 | |||||
ROTCE (A/C) | 16.05 % | 5.80 % | 7.83 % | 15.25 % | 15.54 % | |||||
Adjusted ROTCE (B/C) | 16.05 % | 17.45 % | 15.66 % | 15.25 % | 15.54 % | |||||
APPENDIX H: Impact of Hurricane Helene | ||||
For the Three Months Ended | ||||
($ in thousands) | December | March 31, | ||
Impact of Hurricane Helene | ||||
Provision for (benefit from) credit losses | $ (1,600) | $ (2,000) | ||
Building repairs and maintenance | - | - | ||
Other | - | - | ||
Total | (1,600) | (2,000) | ||
Less, tax impact | 371 | 464 | ||
After-tax impact of Hurricane Helene | $ (1,229) | $ (1,536) | ||
Weighted average shares outstanding - diluted | 41,481,132 | 41,406,525 | ||
Impact of Hurricane Helene per diluted share | $ 0.03 | $ 0.04 | ||
APPENDIX I: Efficiency Ratio and Adjusted Efficiency Ratio | ||||||
For the Three Months Ended | ||||||
March 31, | December | March 31, | ||||
Noninterest expenses (A) | $ 60,218 | $ 62,043 | $ 57,911 | |||
Nointerest income (B) | 15,178 | (22,479) | 12,956 | |||
Securities losses, net | - | (43,722) | - | |||
Adjusted nointerest income (C) | 15,178 | 21,243 | 12,956 | |||
Net interest income - tax-equivalent (D) | 107,595 | 106,601 | 93,284 | |||
Efficiency ratio A/(B+D) | 49.05 % | 73.75 % | 54.51 % | |||
Adjusted efficiency ratio A/(C+D) | 49.05 % | 48.53 % | 54.51 % | |||
Supplemental information
APPENDIX J: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the first quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.3 million for the linked quarter and $1.8 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, three basis points and five basis points, respectively, on the Company's NIM and NIM-T/E in the first quarter of 2026, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended | ||||||
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands) | March 31, 2026 | December 31, | March 31, 2025 | |||
Interest income - increased by accretion of loan discount on acquired loans | $ 1,065 | $ 1,298 | $ 1,789 | |||
Total interest income impact | 1,065 | 1,298 | 1,789 | |||
Interest expense - increased by discount accretion on deposits | (61) | (62) | (103) | |||
Interest expense - increased by discount accretion on borrowings | (86) | (161) | (191) | |||
Total net interest expense impact | (147) | (223) | (294) | |||
Total impact on net interest income | $ 918 | $ 1,075 | $ 1,495 | |||
SOURCE First Bancorp
