Third Quarter 2025 Financial Data(Dollars in 000s, except per share data) Q3-2025 Q2-2025 Q3-2024Summary Income StatementTotal interest income $ 144,200 $ 136,741 $ 131,409Total interest expense 41,711 40,065 48,366Net interest income 102,489 96,676 83,043Provision for credit losses 3,442 2,212 14,200Noninterest income (12,879) 14,341 13,579Noninterest expenses 60,211 58,983 59,850Income tax expense 5,594 11,256 3,892Net income $ 20,363 $ 38,566 $ 18,680Key MetricsDiluted EPS $ 0.49 $ 0.93 $ 0.45Adjusted diluted EPS (1) $ 1.01 $ 0.93 $ 0.45Book value per share 38.67 37.53 35.74Tangible book value per share 26.98 25.82 23.91ROA 0.64% 1.24% 0.61%Adjusted ROA (1) 1.31% 1.24% 0.61%ROCE 5.14% 10.11% 5.14%Adjusted ROCE (1) 10.55% 10.11% 5.14%ROTCE 7.83% 15.25% 8.30%Adjusted ROTCE (1) 15.66% 15.25% 8.30%NIM 3.46% 3.32% 2.88%NIM- T/E 3.47% 3.32% 2.91%Quarterly NCO ratio 0.14% 0.06% 0.11%ACL ratio 1.44% 1.47% 1.53%Capital Ratios (2)Tangible common equity to tangible assets 9.12% 8.83% 8.47%Common equity tier I capital ratio 14.35% 14.64% 14.37%Total risk-based capital ratio 16.58% 16.90% 16.65%(1) Q3-2025 adjusted to exclude impact of securities loss of $27.9 million (after tax $21.4 million). See Appendices D, E, F and G.(2) September30, 2025 ratios are preliminary.
Third Quarter 2025 Highlights
— Diluted earnings per share (“D-EPS”) was $0.49 per share for the third quarter of 2025 compared to $0.93 for the linked quarter and $0.45 for the like quarter.
— Excluding the impact of the $27.9 million securities loss, adjusted D-EPS was $1.01 per share for the third quarter of 2025.
— We accelerated loan growth in the third quarter, resulting in total loans of $8.4 billion at September 30, 2025, representing an increase of $193.6 million, or 9.3% annualized.
— Total loan yield expanded to 5.69%, up 16 basis point from the linked quarter and 18 basis points from the like quarter. Total cost of funds increased 3 basis points to 1.51% for the quarter ended September 30, 2025 from 1.48% for the linked quarter and contracted from 1.81% for the like quarter.
— The yield on securities increased 14 basis points to 2.55% for the quarter ended September 30, 2025 from 2.41% for the linked quarter. We executed a securities loss-earnback transaction during July, in which we sold $194.3 million of securities and we purchased $167.4 million of securities with a weighted average yield of 4.83%. The increased yield on the new purchases was included for over half of the third quarter.
— Average core deposits were $10.8 billion for the third quarter of 2025, an increase of $108.1 million from the linked quarter, with $28.4 million of growth in noninterest bearing deposits and $151.8 million of growth in average money market accounts, partially offset by a decline of $37.8 million in average time deposits. Total cost of deposits was 1.46%, an increase of 3 basis points from 1.43% for the linked quarter and a decrease of 30 basis points from the like quarter at 1.76%.
— We continue to focus on expense management. Noninterest expenses of $60.2 million represented a $1.2 million increase from the linked quarter and $0.4 million from the like quarter. The linked quarter increase was driven by a $1.6 million increase in Total personnel expense.
— During the quarter, the Company released $4.0 million of loan loss provision related to Hurricane Helene.
— Noninterest-bearing demand deposits were $3.6 billion, representing 33% of total deposits at September 30, 2025. During the third quarter of 2025, customer deposits grew $55.7 million.
— The on-balance sheet liquidity ratio was 18.2% at September 30, 2025, down slightly from 20.0% for the linked quarter. Available off-balance sheet sources totaled $2.5 billion at September 30, 2025.
First Bancorp (the “Company”) (NASDAQ – FBNC), the parent company of First Bank, reported unaudited third quarter earnings today. The Company announced net income of $20.4 million, or $0.49 D-EPS, for the three months ended September 30, 2025 compared to $38.6 million, or $0.93 D-EPS, for the three months ended June 30, 2025 (“linked quarter”) and $18.7 million, or $0.45 D-EPS, for the third quarter of 2024 (“like quarter”). For the nine months ended September 30, 2025, the Company recorded net income of $95.3 million, or $2.30 per diluted common share, compared to $72.7 million, or $1.76 per diluted common share, for the nine months ended September 30, 2024.
Adjusting for the securities loss-earnback transaction completed in July, adjusted net income was $41.8 million, or $1.01 adjusted D-EPS, for the third quarter of 2025. For the nine months ended September30, 2025, adjusted net income was $116.8 million, or $2.82 adjusted D-EPS.
The Company continued to enhance net interest income and net interest margin (“NIM”) during the third quarter of 2025. The Company recorded net interest income of $102.5 million for the third quarter of 2025, compared to $96.7 million for the linked quarter and $83.0 million for the like quarter. NIM for the third quarter of 2025 expanded to 3.46% from 3.32% for the linked quarter and 2.88% for the like quarter.
First Bancorp also continued to maintain expense control with noninterest expenses of $60.2 million for the third quarter of 2025, up slightly from $59.0 million for the linked quarter and $59.9 million for the like quarter. For the nine months ended September30, 2025, the Company recorded noninterest expense of $177.1 million, down from $177.3 million, for the nine months ended September30, 2024.
The results for the third quarter 2025 include a securities loss of $27.9 million ($21.4 million after-taxes, or negative $0.52 per diluted share) from the securities loss-earnback transaction that included the sale of $194.3 millionof available-for-sale securities yielding of 1.63%. The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the third quarter of 2025 are presented in Appendix D.
The results for the third quarter of 2025 also include a $4.0 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($3.1 million after-taxes or $0.07 per diluted share).The reconciliations from net income and per share impact for the third quarter of 2025 are presented in Appendix H.
RichardH. Moore, Chairman and CEO of the Company, stated “First Bancorp continues to improve financial results in 2025 with substantial margin expansion of 14 basis points and continued expense discipline. We grew loans over 9% annualized in the quarter and benefited from the increases in asset yields as assets originated in the COVID-era historic low interest rate environment continue to mature or reprice. Our liquidity position, capital levels and credit quality remain strong. We are very pleased with the Bank's performance through three quarters.”
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2025 was $102.5 million, an increase of 6.0% from the linked quarter of $96.7 million and 23.4% from the like quarter of $83.0 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, while increasing loan yields through originations as well as increased securities yields resulting from the securities loss-earnback transactions executed in the fourth quarter of 2024 and the third quarter of 2025.
The Company's NIM for the third quarter of 2025 was 3.46%, an increase of 14 basis points from the linked quarter and 58 basis points from the like quarter. Within interest-earning assets, loan yields increased 16 basis points to 5.69%. Also, we executed a securities loss-earnback transaction including the purchase of $167.4 million of securities with a weighted average yield of 4.83% that contributed to the 14 basis point increase in the yield on securities as compared to the linked quarter. During the quarter ended September30, 2025, the cost of interest-bearing deposits increased 4 basis points from the linked quarter and fell41 basis points from the like quarter, attributable to the three rate cuts by the Federal Reserve between September and December 2024 and the one rate cut in September 2025. The like quarter expansion of NIM was driven by the same factors described above resulting in an increase of 84 basis points in securities yield, an increase of 18 basis points in loan yields, and a decrease of 41 basis points in the cost of interest-bearing deposits.
For the Three Months EndedYIELD INFORMATION September 30, June 30, 2025 September 30, 2025 2024Yield on loans 5.69% 5.53% 5.51%Yield on securities 2.55% 2.41% 1.71%Yield on other earning assets 4.64% 4.63% 4.90%Yield on total interest-earning assets 4.86% 4.69% 4.56%Cost of interest-bearing deposits 2.18% 2.14% 2.59%Cost of borrowings 7.20% 7.22% 7.97%Cost of total interest-bearing liabilities 2.24% 2.20% 2.66%Total cost of funds 1.51% 1.48% 1.81%Cost of total deposits 1.46% 1.43% 1.76%Net interest margin (1) 3.46% 3.32% 2.88%Net interest margin – tax-equivalent (2) 3.47% 3.32% 2.91%Average prime rate 7.46% 7.50% 8.43%
(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 I regarding loan purchase discount accretion and its impact on the Company's NIM.
Provision for Credit Losses and Credit Quality
For the threemonths ended September30, 2025, June30, 2025and September30, 2024, the Company recorded $3.4million, $2.2million and $14.2million in provision for credit losses, respectively. The provision for the third quarter of 2025 was driven by net charge-offs of $3.0million, reserves related to loan growth of $193.6million, increased reserves from somewhat deteriorating macro-economic projections, partially offset by the $4.0million reduction in reserves for potential credit exposure from Hurricane Helene. The net effect of these factors was a $0.4million increase in the allowance for credit losses to $120.9million, or 1.44% of loans. Additionally, the $0.1million provision for unfunded commitments during the quarter was the result of an increase in the level of available unfunded lending commitments. Macro-economic forecasts are a key driver in the Company's CECL model and some of the September data reflected declines from the prior quarter which increased reserves. The provision for the third quarter of 2024 was driven by an incremental provision of $13.0million related to potential loan exposure from Hurricane Helene.
Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene starting late in the third quarter of 2024, the Company identified borrowers that were potentially impacted by the storm and subsequent economic impacts which represented approximately $674million of loans outstanding as of September30, 2025. Based upon its continuing evaluation of these potential impacts, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $3.5million as of September30, 2025. The remaining incremental reserve contributes 5 basis points to the Allowance for Credit Losses at period end. The results for the third quarter of 2025 included a $4.0 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene.
Asset quality remained strong with annualized net loan charge-offs of 0.14% for the third quarter of 2025. Total nonperforming assets (“NPAs”) remained at a low level at $39.0million at September30, 2025, or 0.31% of total assets, upslightlyfrom 0.28% at June30, 2025 and 0.29% at September30, 2024.
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA September 30, June 30, 2025 September 30,($ in thousands) 2025 2024Nonperforming assetsNonaccrual loans $ 37,289 $ 34,625 $ 34,125Accruing loans > 90 days past due – – -Total nonperforming loans 37,289 34,625 34,125Foreclosed real estate 1,718 1,218 1,519Total nonperforming assets $ 39,007 $ 35,843 $ 35,644Asset Quality RatiosQuarterly net charge-offs to average loans – annualized 0.14% 0.06% 0.11%Nonperforming loans to total loans 0.44% 0.42% 0.43%Nonperforming assets to total assets 0.31% 0.28% 0.29%Allowance for credit losses to total loans 1.44% 1.47% 1.53%
Noninterest Income
Total noninterest income for the third quarter of 2025 was negative $12.9million, reflecting the inclusion of the $27.9million loss on securities. Excluding the loss on securities, noninterest income totaled $15.0million during the third quarter of 2025, a 4.8% increase from the $14.3million recorded in the linked quarter and a 10.7% increase from the $13.6million recorded for the like quarter. As compared to the linked quarter, noninterest income, excluding the loss on securities, was higher primarily due to a $0.7million increase in gain on sale of the guaranteed portion of SBA loans.
Noninterest Expenses
Noninterest expenses amounted to $60.2million for the third quarter of 2025 compared to $59.0million for the linked quarter and $59.9million for the like quarter. The $1.2 million, or 2.1%, increase in noninterest expense from the linked quarter was driven by a $1.6million increase in total personnel expenses arising from increased salaries and wages expense and incentives. The $0.4million increase from the like quarter was driven by a $0.4 million increase in total personnel expenses and a $0.3million increase in Occupancy and equipment related expenses, partially offset by a $0.2 milliondecline in Intangibles amortization expense.
Income Taxes
Income tax expense totaled $5.6million for the third quarter of 2025 compared to $11.3million for the linked quarter and $3.9million for the like quarter. These equated to effective tax rates of 21.6%, 22.6% and 17.2% for the respective periods.
Balance Sheet
Total assets at September30, 2025 were $12.8billion, an increase of $142.0 million, or 4.5% annualized, from the linked quarter and an increase of $596.8 million, or 4.9%, from a year earlier. The increase from the linked quarter was primarily driven by loan growth and an increase in our available for sale securities portfolio.
Key period end balance sheet components are presented below.
BALANCES September June 30, September Change Change($ in thousands) 30, 2025 2025 30, 2024 3Q25 vs 3Q25 vs 2Q25 3Q24Total assets $ 12,750,263 $ 12,608,265 $ 12,153,430 1.1% 4.9%Loans 8,419,224 8,225,650 8,013,538 2.4% 5.1%Investment securities 2,680,401 2,661,236 2,429,259 0.7% 10.3%Total cash and cash equivalents 597,975 711,286 744,441 (15.9)% (19.7)%Noninterest-bearing deposits 3,580,560 3,542,626 3,350,237 1.1% 6.9%Interest-bearing deposits 7,300,610 7,287,754 7,154,692 0.2% 2.0%Borrowings 92,421 92,237 91,694 0.2% 0.8%Shareholders' equity 1,603,323 1,556,180 1,477,525 3.0% 8.5%
Driven by decreased unrealized losses on the available for sale securities portfolio, total investment securities increased to $2.7 billion at September 30, 2025, reflecting a $19.2 million increase from the linked quarter. Total unrealized losses on available for sale investment securities was $251.8 million at September 30, 2025, as compared to $298.9 million at June 30, 2025 and $331.5 million at September 30, 2024. As part of the July securities loss-earnback transaction in the securities portfolio, $194.3 million of securities were sold at a loss of $27.9 million and $167.4 million of securities were purchased, with a weighted average yield of 4.83%.
Total loans amounted to $8.4 billion at September 30, 2025, an increase of $193.6 million, or 9.3% annualized, from June 30, 2025 and an increase of $405.7 million, or 5.1%, from September 30, 2024. Please see below table for total loan portfolio mix. As of September 30, 2025, there were no notable concentrations in geographies within North Carolina and South Carolina or industries, including in office or hospitality categories, which are included in the “commercial real estate – non-owner occupied” category in the table below. The Company's exposure to non-owner occupied office loans represented approximately 6.2% of the total portfolio at September 30, 2025, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO September 30, 2025 June 30, 2025 September 30, 2024($ in thousands) Amount Percentage Amount Percentage Amount PercentageCommercial and industrial $ 904,226 11% $ 911,227 11% $ 847,284 11%Construction, development & other land loans 688,302 8% 633,529 8% 760,949 9%Commercial real estate – owner occupied 1,337,345 16% 1,254,596 15% 1,226,050 15%Commercial real estate – non-owner occupied 2,773,349 33% 2,758,629 34% 2,572,901 32%Multi-family real estate 535,681 6% 509,419 6% 460,565 6%Residential 1-4 family real estate 1,743,884 21% 1,731,397 21% 1,737,133 22%Home equity loans/lines of credit 365,488 4% 355,876 4% 331,072 4%Consumer loans 70,031 1% 70,137 1% 76,787 1%Loans, gross 8,418,306 100% 8,224,810 100% 8,012,741 100%Unamortized net deferred loan fees 918 840 797Total loans $ 8,419,224 $ 8,225,650 $ 8,013,538
Total deposits were $10.9billion at September30, 2025, an increase of $50.8million, or 1.9% annualized, from June30, 2025 and an increase of $376.2million, or 3.6%, from September30, 2024.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at September30, 2025. As presented in the table below, our deposit mix has remained relatively consistent.
DEPOSIT PORTFOLIO September 30, 2025 June 30, 2025 September 30, 2024($ in thousands) Amount Percentage Amount Percentage Amount PercentageNoninterest-bearing checking accounts $ 3,580,560 33% $ 3,542,626 33% $ 3,350,237 32%Interest-bearing checking accounts 1,418,378 13% 1,443,010 13% 1,426,356 13%Money market accounts 4,527,728 41% 4,446,485 41% 4,189,174 40%Savings accounts 532,462 5% 536,247 5% 541,501 5%Other time deposits 504,942 5% 514,865 5% 602,148 6%Time deposits >$250,000 312,255 3% 337,382 3% 385,995 4%Total customer deposits 10,876,325 100% 10,820,615 100% 10,495,411 100%Brokered deposits 4,845 -% 9,765 -% 9,518 -%Total deposits $ 10,881,170 100% $ 10,830,380 100% $ 10,504,929 100%
As of September30, 2025 and June30, 2025, estimated insured deposits totaled $6.5 billion, or 59.7% of total deposits. In addition, at September30, 2025 and June30, 2025, there were collateralized deposits of $682.7 million and $707.0 million, respectively, such that approximately 66.0% and 66.3%, 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, 2025 of 16.58%, down from the linked quarter ratio of 16.90% and from the like quarter ratio of 16.65%. The decrease during the third quarter of 2025 in risk-based capital ratios was driven by the $193.6 million of loan growth during the quarter, which carries a higher risk weight than short term investments.
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 9.12% at September30, 2025, an increase of 29 basis points from the linked quarter and 65 basis points from September30, 2024. The third quarter increase in TCE was driven by improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter, partially a result of the securities loss-earnback transaction 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 September 30, June 30, 2025 September 30, 2025 2024 (estimated)Tangible common equity to tangible assets (non-GAAP) 9.12% 8.83% 8.47%Common equity tier I capital ratio 14.35% 14.64% 14.37%Tier I leverage ratio 11.18% 11.23% 11.29%Tier I risk-based capital ratio 15.14% 15.45% 15.19%Total risk-based capital ratio 16.58% 16.90% 16.65%
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 September30, 2025 was 18.2%. In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 35.3%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.8billion. 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 press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
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 D-EPS.
First Bancorp and SubsidiariesFinancial SummaryCONSOLIDATED INCOME STATEMENT For the Three Months Ended For the Nine Months Ended($ in thousands, except per share data – unaudited) September June 30, September September September 30, 2025 2025 30, 2024 30, 2025 30, 2024Interest incomeInterest and fees on loans $ 118,822 $ 112,931 $ 111,076 $ 342,286 $ 331,346Interest on investment securities:Taxable interest income 17,571 16,857 10,779 49,952 34,798Tax-exempt interest income 1,114 1,116 1,116 3,346 3,350Other, principally overnight investments 6,693 5,837 8,438 18,017 17,351Total interest income 144,200 136,741 131,409 413,601 386,845Interest expenseInterest on deposits 40,035 38,405 46,420 116,559 130,299Interest on borrowings 1,676 1,660 1,946 4,994 13,114Total interest expense 41,711 40,065 48,366 121,553 143,413Net interest income 102,489 96,676 83,043 292,048 243,432Provision for credit losses 3,442 2,212 14,200 6,770 15,941Net interest income after provision for credit losses 99,047 94,464 68,843 285,278 227,491Noninterest incomeService charges on deposit accounts 4,225 3,976 4,320 11,968 12,327Other service charges and fees 6,355 6,595 5,555 18,833 16,439Presold mortgage loan fees and gains on sale 471 315 690 1,236 1,616Commissions from sales of financial products 1,678 1,388 1,371 4,474 4,068SBA loan sale gains 869 151 1,108 1,072 3,339Bank-owned life insurance income 1,289 1,221 1,205 3,738 3,548Securities losses, net (27,905) – – (27,905) (1,161)Other Income, net 139 695 (670) 948 900Total noninterest income (12,879) 14,341 13,579 14,364 41,076Noninterest expensesSalaries, incentives and commissions expense 31,065 29,005 29,955 88,731 85,406Employee benefit expense 5,751 6,187 6,495 18,033 19,467Total personnel expense 36,816 35,192 36,450 106,764 104,873Occupancy and equipment expense 5,145 5,195 4,884 15,532 15,835Intangibles amortization expense 1,394 1,468 1,613 4,378 5,041Other operating expenses 16,856 17,128 16,903 50,413 51,579Total noninterest expenses 60,211 58,983 59,850 177,087 177,328Income before income taxes 25,957 49,822 22,572 122,555 91,239Income tax expense 5,594 11,256 3,892 27,220 18,575Net income $ 20,363 $ 38,566 $ 18,680 $ 95,335 $ 72,664Earnings per common share:Basic $ 0.49 $ 0.93 $ 0.45 $ 2.30 $ 1.76Diluted 0.49 0.93 0.45 2.30 1.76
First Bancorp and SubsidiariesFinancial SummaryCONSOLIDATED BALANCE SHEETS($ in thousands – unaudited) September 30, June 30, 2025 September 30, 2025 2024AssetsCash and due from banks, noninterest-bearing $ 138,369 $ 139,486 $ 74,034Due from banks, interest-bearing 459,606 571,800 670,407Total cash and cash equivalents 597,975 711,286 744,441Securities available for sale 2,165,668 2,144,831 1,907,458Securities held to maturity 514,733 516,405 521,801Presold mortgages and SBA loans held for sale 4,032 8,928 9,888Loans 8,419,224 8,225,650 8,013,538Allowance for credit losses on loans (120,948) (120,545) (122,718)Net loans 8,298,276 8,105,105 7,890,820Premises and equipment, net 141,441 141,661 144,868Accrued interest receivable 35,986 36,681 32,890Goodwill 478,750 478,750 478,750Other intangible assets, net 18,526 19,920 24,466Bank-owned life insurance 191,911 190,817 187,236Other assets 302,965 253,881 210,812Total assets $ 12,750,263 $ 12,608,265 $ 12,153,430LiabilitiesDeposits:Noninterest-bearing deposits $ 3,580,560 $ 3,542,626 $ 3,350,237Interest-bearing deposits 7,300,610 7,287,754 7,154,692Total deposits 10,881,170 10,830,380 10,504,929Borrowings 92,421 92,237 91,694Accrued interest payable 4,436 4,340 5,566Other liabilities 168,913 125,128 73,716Total liabilities 11,146,940 11,052,085 10,675,905Shareholders' equityCommon stock 973,235 973,041 970,450Retained earnings 823,483 812,657 761,881Stock in rabbi trust assumed in acquisition (877) (869) (1,148)Rabbi trust obligation 877 869 1,148Accumulated other comprehensive loss (193,395) (229,518) (254,806)Total shareholders' equity 1,603,323 1,556,180 1,477,525Total liabilities and shareholders' equity $ 12,750,263 $ 12,608,265 $ 12,153,430
First Bancorp and SubsidiariesFinancial SummaryTREND INFORMATION For the Three Months Ended September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024PERFORMANCE RATIOS (annualized)ROA (1) 0.64% 1.24% 1.21% 0.12% 0.61%Adjusted ROA (2) 1.31% 1.24% 1.21% 1.03% 0.61%ROCE (3) 5.14% 10.11% 10.06% 0.96% 5.14%Adjusted ROCE (4) 10.55% 10.11% 10.06% 8.60% 5.14%ROTCE (5) 7.83% 15.25% 15.54% 1.93% 8.30%Adjusted ROTCE (6) 15.66% 15.25% 15.54% 13.39% 8.30%COMMON SHARE DATACash dividends declared – common $ 0.23 $ 0.23 $ 0.22 $ 0.22 $ 0.22Book value per common share $ 38.67 $ 37.53 $ 36.46 $ 34.96 $ 35.74Tangible book value per share (7) $ 26.98 $ 25.82 $ 24.69 $ 23.17 $ 23.91Common shares outstanding at end of period 41,465,437 41,468,098 41,368,828 41,347,418 41,340,099Weighted average shares outstanding – diluted 41,481,542 41,441,393 41,406,525 41,422,973 41,366,743CAPITAL INFORMATION (preliminary for current quarter)Tangible common equity to tangible assets (8) 9.12% 8.83% 8.55% 8.22% 8.47%Common equity tier I capital ratio 14.35% 14.64% 14.52% 14.35% 14.37%Total risk-based capital ratio 16.58% 16.90% 16.80% 16.63% 16.65%
(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. SeeAppendix 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) 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.(8) 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 EndedINCOME STATEMENT September June 30, March 31, December September($ in thousands except per share data) 30, 2025 2025 2025 31, 2024 30, 2024Net interest income $ 102,489 $ 96,676 $ 92,883 $ 88,841 $ 83,043Provision for credit losses 3,442 2,212 1,116 507 14,200Noninterest income (12,879) 14,341 12,902 (23,177) 13,579Noninterest expense 60,211 58,983 57,893 58,279 59,850Income before income taxes 25,957 49,822 46,776 6,878 22,572Income tax expense 5,594 11,256 10,370 3,327 3,892Net income 20,363 38,566 36,406 3,551 18,680Earnings per common share – diluted $ 0.49 $ 0.93 $ 0.88 $ 0.08 $ 0.45
First Bancorp and SubsidiariesFinancial SummaryAVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS – QUARTERS For the Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024($ in thousands) Average Interest Average Average Interest Average Average Interest Average Volume Earned Rate Volume Earned Rate Volume Earned Rate or Paid or Paid or PaidAssetsLoans (1) (2) $ 8,297,643 $ 118,822 5.69% $ 8,187,662 $ 112,931 5.53% $ 8,019,730 $ 111,076 5.51%Taxable securities 2,637,711 17,571 2.66% 2,697,338 16,857 2.50% 2,493,924 10,779 1.73%Non-taxable securities 286,750 1,114 1.56% 287,848 1,116 1.55% 290,939 1,116 1.53%Short-term investments, primarily interest-bearing cash 571,922 6,693 4.64% 505,912 5,837 4.63% 684,634 8,438 4.90%Total interest-earning assets 11,794,026 144,200 4.86% 11,678,760 136,741 4.69% 11,489,227 131,409 4.56%Cash and due from banks 149,771 153,074 84,060Premises and equipment 141,858 142,090 146,448Other assets 554,361 484,448 406,878Total assets $ 12,640,016 $ 12,458,372 $ 12,126,613LiabilitiesInterest-bearing checking $ 1,403,683 $ 2,420 0.68% $ 1,434,559 $ 2,426 0.68% $ 1,393,611 $ 2,688 0.77%Money market deposits 4,510,662 31,674 2.79% 4,358,877 29,947 2.76% 4,173,884 34,878 3.32%Savings deposits 535,464 267 0.20% 538,843 252 0.19% 552,721 315 0.23%Other time deposits 514,143 3,029 2.34% 534,242 3,088 2.32% 622,752 4,728 3.02%Time deposits >$250,000 328,207 2,645 3.20% 345,916 2,692 3.12% 390,208 3,811 3.89%Total interest-bearing deposits 7,292,159 40,035 2.18% 7,212,437 38,405 2.14% 7,133,176 46,420 2.59%Borrowings 92,349 1,676 7.20% 92,199 1,660 7.22% 97,150 1,946 7.97%Total interest-bearing liabilities 7,384,508 41,711 2.24% 7,304,636 40,065 2.20% 7,230,326 48,366 2.66%Noninterest-bearing checking 3,550,499 3,522,117 3,376,061Other liabilities 133,905 101,069 75,197Shareholders' equity 1,571,104 1,530,550 1,445,029Total liabilities and shareholders' equity $ 12,640,016 $ 12,458,372 $ 12,126,613Net yield on interest-earning assets and net interest income $ 102,489 3.46% $ 96,676 3.32% $ 83,043 2.88%Net yield on interest-earning assets and net interest income – $ 102,828 3.47% $ 96,887 3.32% $ 83,765 2.91%tax-equivalent (3)Interest rate spread 2.62% 2.49% 1.90%Average prime rate 7.46% 7.50% 8.43%
(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(274,000), $(296,000) and $(367,000) for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.(2) Includes accretion of discount on acquired loans of $1.6 million, $1.5 million and $2.0 million for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.(3) Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
First Bancorp and SubsidiariesFinancial SummaryAVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS – YEAR-TO-DATE For the Nine Months Ended September 30, 2025 September 30, 2024($ in thousands) Average Interest Average Average Interest Average Volume Earned Rate Volume Earned Rate or Paid or PaidAssetsLoans (1) (2) $ 8,198,263 $ 342,286 5.58% $ 8,064,480 $ 331,346 5.49%Taxable securities 2,654,737 49,952 2.51% 2,633,093 34,798 1.76%Non-taxable securities 287,826 3,346 1.55% 292,056 3,350 1.53%Short-term investments, primarily interest-bearing cash 527,322 18,017 4.57% 490,782 17,351 4.72%Total interest-earning assets 11,668,148 413,601 4.74% 11,480,411 386,845 4.50%Cash and due from banks 145,593 86,514Premises and equipment 142,333 149,073Other assets 487,172 381,806Total assets $ 12,443,246 $ 12,097,804LiabilitiesInterest-bearing checking $ 1,423,164 $ 7,343 0.69% $ 1,398,137 $ 7,472 0.71%Money market deposits 4,403,000 90,801 2.76% 3,961,707 95,102 3.21%Savings deposits 537,790 759 0.19% 571,730 940 0.22%Other time deposits 535,515 9,470 2.36% 689,941 16,237 3.14%Time deposits >$250,000 342,011 8,186 3.20% 372,561 10,548 3.78%Total interest-bearing deposits 7,241,480 116,559 2.15% 6,994,076 130,299 2.49%Borrowings 92,171 4,994 7.24% 280,370 13,114 6.25%Total interest-bearing liabilities 7,333,651 121,553 2.22% 7,274,446 143,413 2.63%Noninterest-bearing checking 3,483,214 3,346,669Other liabilities 102,828 76,922Shareholders' equity 1,523,553 1,399,767Total liabilities and shareholders' equity $ 12,443,246 $ 12,097,804Net yield on interest-earning assets and net interest income $ 292,048 3.34% $ 243,432 2.83%Net yield on interest-earning assets and net interest income – tax-equivalent (3) $ 293,035 3.35% $ 245,618 2.87%Interest rate spread 2.52% 1.87%Average prime rate 7.49% 8.48%
(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(864,000) and $(1,253,000) for the nine months ended September 30, 2025 and September 30, 2024, respectively.(2) Includes accretion of discount on acquired loans of $4.8 million and $6.7 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.(3) Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
Reconciliation of non-GAAP measuresAPPENDIX A: Reconciliation of Common Equity to Tangible Common Equity (“TCE”) For the Three Months Ended($ in thousands) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Total shareholders' common equity $ 1,603,323 $ 1,556,180 $ 1,508,176 $ 1,445,611 $ 1,477,525Less: Goodwill and other intangibles, net of related taxes (484,623) (485,657) (486,749) (487,660) (489,139)Tangible common equity $ 1,118,700 $ 1,070,523 $ 1,021,427 $ 957,951 $ 988,386
APPENDIX B: Calculation of Tangible Book Value Per Share (“TBVPS”) For the Three Months Ended($ in thousands except per share data) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Tangible common equity (Appendix A) $ 1,118,700 $ 1,070,523 $ 1,021,427 $ 957,951 $ 988,386Common shares outstanding 41,465,437 41,468,098 41,368,828 41,347,418 41,340,099Tangible book value per common share $ 26.98 $ 25.82 $ 24.69 $ 23.17 $ 23.91
APPENDIX C: TCE Ratio For the Three Months Ended($ in thousands) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Tangible common equity (Appendix A) $ 1,118,700 $ 1,070,523 $ 1,021,427 $ 957,951 $ 988,386Total assets 12,750,263 12,608,265 12,436,245 12,147,694 12,153,430Less: Goodwill and other intangibles, net of related taxes (484,623) (485,657) (486,749) (487,660) (489,139)Tangible assets (“TA”) $ 12,265,640 $ 12,122,608 $ 11,949,496 $ 11,660,034 $ 11,664,291TCE to TA ratio 9.12% 8.83% 8.55% 8.22% 8.47%
Reconciliation of non-GAAP measures, continuedAPPENDIX D: Adjusted Net Income and Adjusted D-EPS For the Three Months Ended For the Nine Months Ended($ in thousands) September June 30, September September September 30, 2025 2025 30, 2024 30, 2025 30, 2024Net income (A) $ 20,363 $ 38,566 $ 18,680 $ 95,335 $ 72,664Impact of loss-earnbackSecurities loss from loss-earnback 27,905 – – 27,905 -Less, tax impact (6,472) – – (6,472) -After-tax impact of loss-earnback 21,433 – – 21,433 -Adjusted net income (B) $ 41,796 $ 38,566 $ 18,680 $ 116,768 $ 72,664Weighted average shares outstanding – diluted (C) 41,481,542 41,441,393 41,366,743 41,443,636 41,294,137D-EPS (A/C) $ 0.49 $ 0.93 $ 0.45 $ 2.30 $ 1.76Adjusted D-EPS (B/C) $ 1.01 $ 0.93 $ 0.45 $ 2.82 $ 1.76
APPENDIX E: Calculation of Return on Average Assets (“ROA”) and Adjusted ROA For the Three Months Ended($ in thousands) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Net income (A) $ 20,363 $ 38,566 $ 36,406 $ 3,551 $ 18,680After-tax impact of loss-earnback 21,433 – – 28,160 -Adjusted net income (B) $ 41,796 $ 38,566 $ 36,406 $ 31,711 $ 18,680Average total assets (C) $ 12,640,016 $ 12,458,372 $ 12,226,810 $ 12,243,771 $ 12,126,613ROA (A/C) 0.64% 1.24% 1.21% 0.12% 0.61%Adjusted ROA (B/C) 1.31% 1.24% 1.21% 1.03% 0.61%
APPENDIX F: Calculation of Return on Common Equity (“ROCE”) and Adjusted ROCE For the Three Months Ended($ in thousands) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Net income (A) $ 20,363 $ 38,566 $ 36,406 $ 3,551 $ 18,680After-tax impact of loss-earnback 21,433 – – 28,160 -Adjusted net income (B) $ 41,796 $ 38,566 $ 36,406 $ 31,711 $ 18,680Average common equity (C) $ 1,571,104 $ 1,530,550 $ 1,467,871 $ 1,466,181 $ 1,445,029ROCE (A/C) 5.14% 10.11% 10.06% 0.96% 5.14%Adjusted ROCE (B/C) 10.55% 10.11% 10.06% 8.60% 5.14%
Reconciliation of non-GAAP measures, continuedAPPENDIX G: Calculation of Return on TCE (“ROTCE”) and Adjusted ROTCE For the Three Months Ended($ in thousands) September June 30, March 31, December September 30, 2025 2025 2025 31, 2024 30, 2024Net Income $ 20,363 $ 38,566 $ 36,406 $ 3,551 $ 18,680Intangible asset amortization, net of taxes 1,066 1,123 1,159 1,195 1,240Tangible Net income (A) 21,429 39,689 37,565 4,746 19,920After-tax impact of loss-earnback 21,433 – – 28,160 -Adjusted tangible net income (B) $ 42,862 $ 39,689 $ 37,565 $ 32,906 $ 19,920Average common equity $ 1,571,104 $ 1,530,550 $ 1,467,871 $ 1,466,181 $ 1,445,029Less: Average goodwill and other intangibles, net of (485,331) (486,393) (487,395) (488,624) (489,987)related taxesAverage TCE (C) $ 1,085,773 $ 1,044,157 $ 980,476 $ 977,557 $ 955,042ROTCE (A/C) 7.83% 15.25% 15.54% 1.93% 8.30%Adjusted ROTCE (B/C) 15.66% 15.25% 15.54% 13.39% 8.30%
Appendix H: Impact of Hurricane Helene For the Three Months Ended For the Nine Months Ended($ in thousands) September June 30, 2025 September September September 30, 2025 30, 2024 30, 2025 30, 2024Impact of Hurricane HeleneProvision for (benefit from) credit losses $ (4,000) $ (3,500) $ 13,000 $ (9,500) $ 13,000Building repairs and maintenance – – 300 – 300Other – – 96 – 96Total (4,000) (3,500) 13,396 (9,500) 13,396Less, tax impact 928 812 (3,102) 2,204 (3,102)After-tax impact of Hurricane Helene $ (3,072) $ (2,688) $ 10,294 $ (7,296) $ 10,294Weighted average shares outstanding – diluted 41,481,542 41,441,393 41,366,743 41,443,636 41,294,137Impact of Hurricane Helene per diluted share $ 0.07 $ 0.06 $ (0.25) $ 0.18 $ (0.25)
Supplemental information APPENDIX I: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the third quarter of 2025 was loan purchase accounting discount accretion of $1.6million compared to $1.5million for the linked quarter and $2.0million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of 4 basis points, 4 basis points and 6 basis points, respectively, on the Company'sNIM and NIM-T/E in the third quarter of 2025, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months EndedNET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS September 30, June 30, 2025 September 30,($ in thousands) 2025 2024Interest income – increased by accretion of loan discount on acquired loans $ 1,584 $ 1,457 $ 2,003Total interest income impact 1,584 1,457 2,003Interest expense – increased by discount accretion on deposits (77) (102) (174)Interest expense – increased by discount accretion on borrowings (197) (194) (193)Total net interest expense impact (274) (296) (367)Total impact on net interest income $ 1,310 $ 1,161 $ 1,636
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