Second Quarter 2026 Financial Data
(Dollars in 000s, except Q2-2026 Q1-2026 Q2-2025
per share data)
Summary Income Statement
Total interest income $148,315 $142,390 $136,731
Total interest expense 37,049 35,274 40,065
Net interest income 111,266 107,116 96,666
Provision for credit losses 1,169 3,083 2,212
Noninterest income 16,034 15,178 14,292
Noninterest expenses 62,761 60,218 58,924
Income tax expense 12,851 12,334 11,256
Net income $50,519 $46,659 $38,566
Key Metrics
Diluted EPS $1.22 $1.13 $0.93
Book value per share 41.49 40.68 37.53
Tangible book value per 29.84 29.01 25.82
share
ROA 1.56 % 1.48 % 1.24 %
ROCE 11.89 % 11.22 % 10.11 %
ROTCE 16.88 % 16.05 % 15.25 %
NIM 3.71 % 3.67 % 3.32 %
NIM- T/E 3.73 % 3.69 % 3.32 %
Efficiency ratio 49.12 % 49.05 % 53.00 %
Quarterly NCO ratio 0.04 % 0.06 % 0.06 %
ACL ratio 1.39 % 1.42 % 1.47 %
Capital Ratios (1)
Tangible common equity 9.83 % 9.63 % 8.83 %
to tangible assets
Common equity tier I 14.09 % 14.13 % 14.64 %
capital ratio
Total risk-based capital 16.06 % 16.12 % 16.90 %
ratio
(1) June 30, 2026 ratios are preliminary.
Second Quarter 2026 Highlights
- D-EPS was $1.22 per share for the second quarter of 2026 compared to $1.13 for the linked quarter and $0.93 for the like quarter.
- The net interest margin was 3.71% for the quarter ended June 30, 2026, an expansion of 0.04% from the linked quarter and 0.39% from the like quarter.
- The efficiency ratio for the quarter ended June 30, 2026 was 49.12%, compared to 49.05% for the linked quarter and 53.00% for the like quarter.
- Total assets exceeded $13 billion at June 30, 2026, the highest level in First Bancorp's history.
- Total loans were $9.0 billion at June 30, 2026, representing an increase of $194.9 million, or 8.9% annualized.
- Total loan yield was 5.67%, up 10 basis points from the linked quarter and 14 basis points from the like quarter.
- The yield on securities decreased 3 basis points to 2.71% from 2.74% for the linked quarter.
- Total cost of funds increased 3 basis points to 1.34% for the quarter ended June 30, 2026 from 1.31% for the linked quarter and decreased 14 basis points from the like quarter.
- Average core deposits were $11.0 billion, an increase of $181.0 million for the linked quarter and $268.1 million from the like quarter. Total cost of deposits was 1.31%, an increase of 3 basis points for the linked quarter and a decrease of 12 basis points from the like quarter.
- Noninterest expenses of $62.8 million represented a $2.5 million increase from the linked quarter and a $3.8 million increase from the like quarter. The linked quarter increase was driven by a $2.0 million increase in Total personnel expense.
- Noninterest-bearing demand deposits were $3.6 billion, representing 32% of total deposits at June 30, 2026. During the second quarter of 2026, period end customer deposits grew by 2.6% annualized.
- The loan-to-deposit ratio was 81.1% as of June 30, 2026.
- On July 14, 2026, First Bancorp announced its pending acquisition of First Carolina Bancshares Corporation, scheduled to close in late 2026 or early 2027.
SOUTHERN PINES, N.C., July 22, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today. The Company reported net income of $50.5 million, or $1.22 diluted earnings per share ("D-EPS"), for the three months ended June 30, 2026 compared to $46.7 million, or $1.13 D-EPS, for the three months ended March 31, 2026 ("linked quarter") and $38.6 million, or $0.93 D-EPS, for the second quarter of 2025 ("like quarter").
On July 14, 2026, the Company announced an agreement to acquire First Carolina Bancshares Corporation ("First Carolina"), and its subsidiary, Carolina Bank & Trust Company ("Carolina Bank") headquartered in Florence, South Carolina, in a 75% stock and 25% cash transaction. This transaction is subject to regulatory approvals and approval of First Carolina's shareholders, and is expected to close in the late fourth quarter of 2026 or early first quarter of 2027. Carolina Bank operates 14 branches throughout the Pee Dee region of South Carolina and had approximately $831 million in total assets, $596 million in loans, and $714 million in deposits at June 30, 2026.
The Company continued to enhance net interest income and net interest margin ("NIM") during the second quarter of 2026. The Company recorded net interest income of $111.3 million for the current quarter, compared to $107.1 million for the linked quarter and $96.7 million for the like quarter. NIM for the second quarter of 2026 expanded to 3.71% from 3.67% for the linked quarter and 3.32% for the like quarter.
Noninterest expenses were $62.8 million for the second quarter of 2026, up from $60.2 million for the linked quarter, and $58.9 million for the like quarter. The efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.
Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp continued to build on its positive start to 2026 with strong second quarter financial results driven by continued margin expansion, prudent balance sheet execution, high quality loans and a controlled efficiency ratio. Earnings continue to benefit from the repositioning of lower-yielding assets into higher-yielding opportunities, while our liquidity position, capital levels, and credit quality remain strong. We are pleased with our performance through the first half of the year and remain confident in our ability to sustain positive momentum and deliver continued success in 2026. We are excited about the acquisition of First Carolina which brings talented bankers and will help us accelerate our South Carolina growth expansion."
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2026 was $111.3 million, an increase of 3.9% from the linked quarter of $107.1 million and an increase of 15.1% from the like quarter of $96.7 million. The increase in net interest income from the linked and like quarters resulted from additional loan volume and increasing loan yield through originations as well as one additional earning day compared to the linked quarter. The increase from the like quarter also resulted from our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025.
The Company's NIM for the second quarter of 2026 was 3.71%, an increase of 4 basis points from the linked quarter and 39 basis points from the like quarter.
The linked quarter expansion of NIM was driven a $114.9 million increase in average loans along with a 10 basis points expansion in loan yield. Additionally, short-term investments contributed an additional $1.5 million from increased balances partially reduced by lower yields. Offsetting these increases, the cost of interest bearing deposits increased 5 basis points on growth of $98.8 million in average balances. Driving these increases, the average balance of money market deposits increased $99.6 million while the cost of those deposits increased 8 basis points.
The like quarter expansion of NIM was driven by growth of $708.9 million in average loans, coupled with a 14 basis point yield increase as well as the cost of interest bearing deposits decreasing 20 basis points. The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.1% of average interest-earning assets to 74.1% in the current quarter, while securities contracted from 25.6% of average interest-earning assets to 22.3% and short-term investments contracted from 4.3% of average interest-bearing assets to 3.7%.
For the Three Months Ended
YIELD INFORMATION June 30, March 31, June 30,
2026 2026 2025
Yield on loans 5.67 % 5.57 % 5.53 %
Yield on securities 2.71 % 2.74 % 2.41 %
Yield on other earning assets 3.99 % 4.36 % 4.63 %
Yield on total interest-earning assets 4.95 % 4.88 % 4.69 %
Cost of interest-bearing deposits 1.94 % 1.89 % 2.14 %
Cost of borrowings 6.64 % 6.68 % 7.22 %
Cost of total interest-bearing liabilities 1.99 % 1.94 % 2.20 %
Total cost of funds 1.34 % 1.31 % 1.48 %
Cost of total deposits 1.31 % 1.28 % 1.43 %
Net interest margin (1) 3.71 % 3.67 % 3.32 %
Net interest margin - tax-equivalent (2) 3.73 % 3.69 % 3.32 %
Average prime rate 6.75 % 6.75 % 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 H 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 June 30, 2026, March 31, 2026 and June 30, 2025, the Company recorded $1.2 million, $3.1 million and $2.2 million in provision for credit losses, respectively. The provision for the second quarter of 2026 was driven by net charge-offs of $1.0 million. The Allowance for Credit Losses increased $0.2 million to $124.9 million, or 1.39% of loans. Additionally, the $22 thousand provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments.
The Company did not adjust its incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of June 30, 2026. The remaining incremental reserve contributed two basis points to the Allowance for Credit Losses at period end.
Asset quality remained strong with annualized net loan charge-offs of 0.04% for the second quarter of 2026. Total nonperforming assets ("NPAs") totaled $44.9 million at June 30, 2026, or 0.34% of total assets, up slightly from 0.32% at March 31, 2026 and 0.28% at June 30, 2025.
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA June 30, March 31, June 30,
2026 2026 2025
($ in thousands)
Nonperforming assets
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Nonaccrual loans $44,283 $41,032 $34,625
Accruing loans > 90 days past due
Total nonperforming loans 44,283 41,032 34,625
Foreclosed real estate 659 740 1,218
Total nonperforming assets $44,942 $41,772 $35,843
Asset Quality Ratios
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Quarterly net charge-offs to average loans - annualized 0.04 % 0.06 % 0.06 %
Nonperforming loans to total loans 0.49 % 0.47 % 0.42 %
Nonperforming assets to total assets 0.34 % 0.32 % 0.28 %
Allowance for credit losses to total loans 1.39 % 1.42 % 1.47 %
Noninterest Income
Total noninterest income for the second quarter of 2026 was $16.0 million, a $0.9 million increase from the linked quarter, primarily related to a $0.7 million increase in Other income, net. The current quarter reflected a 12.2% increase from $14.3 million for the like quarter, primarily related to a $1.0 million increase in Other income net.
Noninterest Expenses
Noninterest expenses amounted to $62.8 million for the second quarter of 2026 compared to $60.2 million for the linked quarter and $58.9 million for the like quarter. The $2.5 million, or 4.2%, increase in noninterest expense from the linked quarter was driven by a $2.0 million increase in Total personnel expenses. The $3.8 million increase from the like quarter was driven by a $3.3 million increase in Total personnel expenses. While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.
Income Taxes
Income tax expense totaled $12.9 million for the second quarter of 2026 compared to $12.3 million for the linked quarter and $11.3 million for the like quarter, reflecting effective tax rates of 20.3%, 20.9% and 22.6% for the respective periods.
Balance Sheet
Total assets at June 30, 2026 were $13.0 billion, an increase of $93.9 million, or 2.9% annualized, from the linked quarter and $433.4 million, or 3.4%, from a year earlier.
Key period end balance sheet components are presented below.
BALANCES June 30, March 31, June 30, Change Change
2026 2026 2025 2Q26 vs 1Q26 2Q26 vs 2Q25
($ in thousands)
Total assets $13,041,615 $12,947,734 $12,608,265 0.7 % 3.4 %
Loans 8,988,748 8,793,814 8,225,650 2.2 % 9.3 %
Investment securities 2,448,787 2,491,035 2,661,236 (1.7) % (8.0) %
Total cash and cash equivalents 550,332 597,991 711,286 (8.0) % (22.6) %
Noninterest-bearing deposits 3,597,565 3,596,629 3,542,626 - % 1.6 %
Interest-bearing deposits 7,487,302 7,415,854 7,287,754 1.0 % 2.7 %
Borrowings 74,717 74,643 92,237 0.1 % (19.0) %
Shareholders' equity 1,716,460 1,682,950 1,556,180 2.0 % 10.3 %
Driven by principal paydowns and maturities, total investment securities decreased to $2.4 billion at June 30, 2026, a $42.2 million decrease from the linked quarter. Total unrealized losses on available for sale investment securities were $204.5 million at June 30, 2026, as compared to $197.7 million at March 31, 2026 and $298.9 million at June 30, 2025.
Total loans were $9.0 billion at June 30, 2026, an increase of $194.9 million, or 8.9% annualized, from March 31, 2026 and an increase of $763.1 million, or 9.3%, from June 30, 2025. Adjusting for the paydown of one larger seasonal loan, loan growth for the current quarter was 10.9% annualized. Please see the below table for total loan portfolio mix. As of June 30, 2026, there were no notable concentrations in geographies within North Carolina or South Carolina or within industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below. The Company's exposure to non-owner occupied office loans represented approximately 6.2% of the total portfolio at June 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO
June 30, 2026
March 31, 2026
June 30, 2025
($ in thousands) Amount Percentage Amount Percentage Amount Percentage
Commercial and industrial $1,014,295 11 % $1,000,037 11 % $911,227 11 %
Construction, development & other land 847,912 10 % 821,826 10 % 633,529 8 %
loans
Commercial real estate - owner occupied 1,358,100 15 % 1,352,473 15 % 1,254,596 15 %
Commercial real estate - non-owner 2,974,749 33 % 2,921,210 33 % 2,758,629 34 %
occupied
Multi-family real estate 619,489 7 % 545,586 6 % 509,419 6 %
Residential 1-4 family real estate 1,728,367 19 % 1,717,550 20 % 1,731,397 21 %
Home equity loans/lines of credit 377,949 4 % 369,062 4 % 355,876 4 %
Consumer loans 68,692 1 % 66,430 1 % 70,137 1 %
Loans, gross 8,989,553 100 % 8,794,174 100 % 8,224,810 100 %
Unamortized net deferred loan (805) (360) 840
fees/(costs)
Total loans $8,988,748 $8,793,814 $8,225,650
Total deposits were $11.1 billion at June 30, 2026, an increase of $72.4 million, or 2.6% annualized, from March 31, 2026 and $254.5 million, or 2.3%, from June 30, 2025.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at June 30, 2026. As presented in the table below, our deposit mix has remained relatively consistent.
DEPOSIT PORTFOLIO
June 30, 2026
March 31, 2026
June 30, 2025
($ in thousands) Amount Percentage Amount Percentage Amount Percentage
Noninterest-bearing checking accounts $3,597,565 32 % $3,596,629 33 % $3,542,626 33 %
Interest-bearing checking accounts 1,422,592 13 % 1,462,606 13 % 1,443,010 13 %
Money market accounts 4,754,782 43 % 4,631,619 42 % 4,446,485 41 %
Savings accounts 510,392 5 % 519,266 5 % 536,247 5 %
Other time deposits 475,744 4 % 489,257 4 % 514,865 5 %
Time deposits >$250,000 318,821 3 % 308,177 3 % 337,382 3 %
Total customer deposits 11,079,896 100 % 11,007,554 100 % 10,820,615 100 %
Brokered deposits 4,971 - % 4,929 - % 9,765 - %
Total deposits $11,084,867 100 % $11,012,483 100 % $10,830,380 100 %
As of June 30, 2026 and March 31, 2026, estimated insured deposits totaled $6.5 billion, or 58.9%, and $6.5 billion, or 59.0%, of total deposits, respectively. In addition, at June 30, 2026 and March 31, 2026, there were collateralized deposits of $748.7 million and $723.8 million, respectively, such that approximately 65.7% and 65.6%, 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 June 30, 2026 of 16.06%, down from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.90%.
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 9.83% at June 30, 2026, an increase of 20 basis points from the linked quarter and 100 basis points from June 30, 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, arising from market value improvements and the 2025 securities loss-earnback transactions. 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 June 30, March 31, June 30,
2026 2026 2025
(estimated)
Tangible common equity to tangible assets (non-GAAP) 9.83 % 9.63 % 8.83 %
Common equity tier I capital ratio 14.09 % 14.13 % 14.64 %
Tier I leverage ratio 11.60 % 11.46 % 11.23 %
Tier I risk-based capital ratio 14.81 % 14.87 % 15.45 %
Total risk-based capital ratio 16.06 % 16.12 % 16.90 %
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 June 30, 2026 was 15.7%. In addition, the Company had approximately $2.4 billion in available lines of credit at that date resulting in a total liquidity ratio of 32.8%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $13.0 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina. Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business. First Bank also provides SBA loans to customers through its nationwide network of lenders. Member FDIC, Equal Housing Lender.
Please visit our website at www.LocalFirstBank.com for more information.
First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."
Caution about Forward-Looking Statements: This News Release release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the risks and uncertainties relating to the level of success in integrating acquisitions, (including the ability to successfully integrate First Carolina into First Bank; to realize the anticipated benefits of the acquisition; deposit attrition, customer loss or other revenue loss following completed acquisitions may be greater than anticipated; and the integration of operations and personnel may require more time and expense); actions of government regulators; the level of market interest rates; and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
Non-GAAP Measures
In this 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 For the Six Months
Ended
($ in thousands, except per share data - unaudited) June 30, March 31, June 30, June 30, June 30,
2026 2026 2025 2026 2025
Interest income
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Interest and fees on loans $125,845 $120,747 $112,921 $246,592 $223,418
Interest on investment securities:
Taxable interest income 16,925 17,556 16,857 34,481 32,381
Tax-exempt interest income 1,115 1,115 1,116 2,230 2,232
Other, principally overnight investments 4,430 2,972 5,837 7,402 11,324
Total interest income 148,315 142,390 136,731 290,705 269,355
Interest expense
---
Interest on deposits 35,812 34,046 38,405 69,858 76,524
Interest on borrowings 1,237 1,228 1,660 2,465 3,318
Total interest expense 37,049 35,274 40,065 72,323 79,842
Net interest income 111,266 107,116 96,666 218,382 189,513
Provision for credit losses 1,169 3,083 2,212 4,252 3,328
Net interest income after provision for 110,097 104,033 94,454 214,130 186,185
credit losses
Noninterest income
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Service charges on deposit accounts 4,205 3,954 3,976 8,159 7,743
Other service charges and fees 5,986 5,942 6,605 11,928 12,524
Presold mortgage loan fees and gains on sale 660 669 315 1,329 765
Commissions from sales of financial products 1,707 1,492 1,388 3,199 2,796
SBA loan sale gains 529 903 151 1,432 203
Bank-owned life insurance income 1,358 1,340 1,221 2,698 2,449
Other Income, net 1,589 878 636 2,467 768
Total noninterest income 16,034 15,178 14,292 31,212 27,248
Noninterest expenses
---
Salaries, incentives and commissions expense 31,529 29,978 29,005 61,507 57,666
Employee benefit expense 6,958 6,516 6,187 13,474 12,282
Total personnel expense 38,487 36,494 35,192 74,981 69,948
Occupancy and equipment expense 4,961 5,355 5,195 10,316 10,387
Intangibles amortization expense 1,199 1,247 1,468 2,446 2,984
Other operating expenses 18,114 17,122 17,069 35,236 33,516
Total noninterest expenses 62,761 60,218 58,924 122,979 116,835
Income before income taxes 63,370 58,993 49,822 122,363 96,598
Income tax expense 12,851 12,334 11,256 25,185 21,626
Net income $50,519 $46,659 $38,566 $97,178 $74,972
Earnings per common share:
Basic $1.22 $1.13 $0.93 $2.35 $1.81
Diluted 1.22 1.13 0.93 2.35 1.81
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited) June 30, March 31, June 30,
2026 2026 2025
Assets
Cash and due from banks, noninterest-bearing $128,424 $135,176 $139,486
Due from banks, interest-bearing 421,908 462,815 571,800
Total cash and cash equivalents 550,332 597,991 711,286
Securities available for sale 1,939,075 1,979,606 2,144,831
Securities held to maturity 509,712 511,429 516,405
Presold mortgages and SBA loans held for sale 12,304 11,191 8,928
Loans 8,988,748 8,793,814 8,225,650
Allowance for credit losses on loans (124,894) (124,734) (120,545)
Net loans 8,863,854 8,669,080 8,105,105
Premises and equipment, net 138,129 139,374 141,661
Accrued interest receivable 38,272 37,296 36,681
Goodwill 478,750 478,750 478,750
Other intangible assets, net 14,786 15,985 19,920
Bank-owned life insurance 195,984 194,626 190,817
Other assets 300,417 312,406 253,881
Total assets $13,041,615 $12,947,734 $12,608,265
Liabilities
Deposits:
Noninterest-bearing deposits $3,597,565 $3,596,629 $3,542,626
Interest-bearing deposits 7,487,302 7,415,854 7,287,754
Total deposits 11,084,867 11,012,483 10,830,380
Borrowings 74,717 74,643 92,237
Accrued interest payable 3,813 3,733 4,340
Other liabilities 161,758 173,925 125,128
Total liabilities 11,325,155 11,264,784 11,052,085
Shareholders' equity
Common stock 966,777 968,675 973,041
Retained earnings 906,976 866,387 812,657
Stock in rabbi trust assumed in acquisition (534) (893) (869)
Rabbi trust obligation 534 893 869
Accumulated other comprehensive loss (157,293) (152,112) (229,518)
Total shareholders' equity 1,716,460 1,682,950 1,556,180
Total liabilities and shareholders' equity $13,041,615 $12,947,734 $12,608,265
First Bancorp and Subsidiaries
Financial Summary
TREND INFORMATION
For the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
PERFORMANCE RATIOS (annualized)
ROA (1) 1.56 % 1.48 % 0.49 % 0.64 % 1.24 %
Adjusted ROA (2) 1.56 % 1.48 % 1.54 % 1.31 % 1.24 %
ROCE (3) 11.89 % 11.22 % 3.83 % 5.14 % 10.11 %
Adjusted ROCE (4) 11.89 % 11.22 % 12.01 % 10.55 % 10.11 %
ROTCE (5) 16.88 % 16.05 % 5.80 % 7.83 % 15.25 %
Adjusted ROTCE (6) 16.88 % 16.05 % 17.45 % 15.66 % 15.25 %
Efficiency ratio (7) 49.12 % 49.05 % 73.75 % 66.95 % 53.00 %
Adjusted efficiency ratio (7) 49.12 % 49.05 % 48.53 % 51.09 % 53.00 %
COMMON SHARE DATA
Cash dividends declared - common $0.24 $0.24 $0.23 $0.23 $0.23
Book value per common share $41.49 $40.68 $39.89 $38.67 $37.53
Tangible book value per share (8) $29.84 $29.01 $28.23 $26.98 $25.82
Common shares outstanding at end of period 41,374,221 41,375,026 41,466,227 41,465,437 41,468,098
Weighted average shares outstanding - diluted 41,375,377 41,459,357 41,481,132 41,481,542 41,441,393
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (9) 9.83 % 9.63 % 9.61 % 9.12 % 8.83 %
Common equity tier I capital ratio 14.09 % 14.13 % 14.10 % 14.35 % 14.64 %
Total risk-based capital ratio 16.06 % 16.12 % 16.12 % 16.58 % 16.90 %
(1) Calculated by dividing annualized net income by average assets.
(2) See Appendix D for a reconciliation of ROA to adjusted ROA.
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(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix E for the components of the calculation.
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(4) See Appendix E for a reconciliation of ROCE to adjusted ROCE.
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(5) Return on average tangible common equity is a non-GAAP financial measure. See Appendix F for the components of the calculation and the reconciliation of average common equity to average TCE.
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(6) See Appendix F for a reconciliation of ROTCE to adjusted ROTCE.
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(7) See Appendix G for a reconciliation of the efficiency ratio to the adjusted efficiency ratio.
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(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.
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(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.
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For the Three Months Ended
INCOME STATEMENT June 30, March 31, December 31, September
30, June 30,
2026 2026 2025 2025 2025
($ in thousands except per share data)
Net interest income $111,266 $107,116 $106,199 $102,489 $96,666
Provision for credit losses 1,169 3,083 4,732 3,442 2,212
Noninterest income 16,034 15,178 (22,299) (12,879) 14,292
Noninterest expense 62,761 60,218 62,223 60,211 58,924
Income before income taxes 63,370 58,993 16,945 25,957 49,822
Income tax expense 12,851 12,334 1,232 5,594 11,256
Net income $50,519 $46,659 $15,713 $20,363 $38,566
Earnings per common share - diluted $1.22 $1.13 $0.38 $0.49 $0.93
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
For the Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
($ 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 Paid
Assets
Loans (1) (2) $8,896,592 $125,845 5.67 % $8,781,728 $120,747 5.57 % $8,187,662 $112,921 5.53 %
Taxable securities 2,384,076 16,925 2.84 % 2,442,140 17,556 2.88 % 2,697,338 16,857 2.50 %
Non-taxable securities 283,645 1,115 1.57 % 284,712 1,115 1.57 % 287,848 1,116 1.55 %
Short-term investments, primarily interest-bearing cash 444,845 4,430 3.99 % 276,471 2,972 4.36 % 505,912 5,837 4.63 %
Total interest-earning assets 12,009,158 148,315 4.95 % 11,785,051 142,390 4.88 % 11,678,760 136,731 4.69 %
Cash and due from banks 136,181 147,124 153,074
Premises and equipment 139,177 139,775 142,090
Other assets 664,823 690,864 484,448
Total assets $12,949,339 $12,762,814 $12,458,372
Liabilities
Interest-bearing checking $1,420,738 $2,233 0.63 % $1,416,600 $2,230 0.64 % $1,434,559 $2,426 0.68 %
Money market deposits 4,666,044 28,268 2.43 % 4,566,409 26,516 2.35 % 4,358,877 29,947 2.76 %
Savings deposits 516,779 250 0.19 % 524,123 241 0.19 % 538,843 252 0.19 %
Other time deposits 487,071 2,790 2.30 % 495,115 2,819 2.31 % 534,242 3,088 2.32 %
Time deposits >$250,000 314,506 2,271 2.90 % 304,089 2,240 2.99 % 345,916 2,692 3.12 %
Total interest-bearing deposits 7,405,138 35,812 1.94 % 7,306,336 34,046 1.89 % 7,212,437 38,405 2.14 %
Short-term borrowings 757 1 0.72 % 745 1 0.61 % 848 2 1.09 %
Long-term borrowings 73,950 1,236 6.70 % 73,858 1,227 6.74 % 91,351 1,658 7.28 %
Total interest-bearing liabilities 7,479,845 37,049 1.99 % 7,380,939 35,274 1.94 % 7,304,636 40,065 2.20 %
Noninterest-bearing checking 3,597,511 3,515,359 3,522,117
Other liabilities 167,595 179,753 101,069
Shareholders' equity 1,704,388 1,686,763 1,530,550
Total liabilities and shareholders' equity $12,949,339 $12,762,814 $12,458,372
Net yield on interest-earning assets and net interest income $111,266 3.71 % $107,116 3.67 % $96,666 3.32 %
Net yield on interest-earning assets and net interest income - $111,732 3.73 % $107,595 3.69 % $96,877 3.32 %
tax-equivalent (3)
Interest rate spread 2.96 % 2.94 % 2.49 %
Average prime rate 6.75 % 6.75 % 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, $1.1 million and $1.5 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
For the Six Months Ended
June 30, 2026
June 30, 2025
($ in thousands) Average Interest Average Average Interest Average
Volume Earned Rate Volume Earned Rate
or Paid or Paid
Assets
Loans (1) (2) $8,839,477 $246,592 5.62 % $8,147,750 $223,418 5.52 %
Taxable securities 2,412,948 34,481 2.86 % 2,663,390 32,381 2.43 %
Non-taxable securities 284,176 2,230 1.57 % 288,373 2,232 1.55 %
Short-term investments, primarily interest-bearing cash 361,123 7,402 4.13 % 504,652 11,324 4.52 %
Total interest-earning assets 11,897,724 290,705 4.92 % 11,604,165 269,355 4.67 %
Cash and due from banks 141,622 143,469
Premises and equipment 139,474 142,574
Other assets 677,771 453,023
Total assets $12,856,591 $12,343,231
Liabilities
Interest-bearing checking $1,418,681 $4,462 0.63 % $1,433,066 $4,923 0.69 %
Money market deposits 4,616,502 54,785 2.39 % 4,348,277 59,126 2.74 %
Savings deposits 520,429 491 0.19 % 538,973 493 0.18 %
Other time deposits 491,071 5,609 2.30 % 546,377 6,441 2.38 %
Time deposits >$250,000 309,327 4,511 2.94 % 349,028 5,541 3.20 %
Total interest-bearing deposits 7,356,010 69,858 1.92 % 7,215,721 76,524 2.14 %
Short-term borrowings 751 2 0.66 % 822 3 0.86 %
Long-term borrowings 73,904 2,463 6.72 % 91,259 3,315 7.32 %
Total interest-bearing liabilities 7,430,665 72,323 1.96 % 7,307,802 79,842 2.20 %
Noninterest-bearing checking 3,556,662 3,449,013
Other liabilities 173,640 87,032
Shareholders' equity 1,695,624 1,499,384
Total liabilities and shareholders' equity $12,856,591 $12,343,231
Net yield on interest-earning assets and net interest income $218,382 3.69 % $189,513 3.28 %
Net yield on interest-earning assets and net interest income - tax-equivalent (3) $219,327 3.71 % $190,161 3.30 %
Interest rate spread 2.96 % 2.47 %
Average prime rate 6.75 % 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 $2.1 million and $3.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively.
(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
Reconciliation of non-GAAP measures
APPENDIX A: Reconciliation of Common Equity to Tangible Common Equity ("TCE")
For the Three Months Ended
($ in thousands) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Total shareholders' common equity $1,716,460 $1,682,950 $1,654,168 $1,603,323 $1,556,180
Less: Goodwill and other intangibles, net of (481,673) (482,640) (483,644) (484,623) (485,657)
related taxes
Tangible common equity $1,234,787 $1,200,310 $1,170,524 $1,118,700 $1,070,523
APPENDIX B: Calculation of Tangible Book Value Per Share ("TBVPS")
For the Three Months Ended
($ in thousands except per share data) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Tangible common equity (Appendix A) $1,234,787 $1,200,310 $1,170,524 $1,118,700 $1,070,523
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Common shares outstanding 41,374,221 41,375,026 41,466,227 41,465,437 41,468,098
Tangible book value per common share $29.84 $29.01 $28.23 $26.98 $25.82
APPENDIX C: TCE Ratio
For the Three Months Ended
($ in thousands) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Tangible common equity (Appendix A) $1,234,787 $1,200,310 $1,170,524 $1,118,700 $1,070,523
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Total assets 13,041,615 12,947,734 12,668,339 12,750,263 12,608,265
Less: Goodwill and other intangibles, net of (481,673) (482,640) (483,644) (484,623) (485,657)
related taxes
Tangible assets ("TA") $12,559,942 $12,465,094 $12,184,695 $12,265,640 $12,122,608
TCE to TA ratio 9.83 % 9.63 % 9.61 % 9.12 % 8.83 %
APPENDIX D: Calculation of Return on Average Assets ("ROA") and Adjusted ROA
For the Three Months Ended
($ in thousands) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Net income (A) $50,519 $46,659 $15,713 $20,363 $38,566
After-tax impact of loss-earnback 33,581 21,433
Adjusted net income (B) $50,519 $46,659 $49,294 $41,796 $38,566
Average total assets (C) $12,949,339 $12,762,814 $12,716,139 $12,640,016 $12,458,372
ROA (A/C) 1.56 % 1.48 % 0.49 % 0.64 % 1.24 %
Adjusted ROA (B/C) 1.56 % 1.48 % 1.54 % 1.31 % 1.24 %
APPENDIX E: Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
For the Three Months Ended
($ in thousands) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Net income (A) $50,519 $46,659 $15,713 $20,363 $38,566
After-tax impact of loss-earnback 33,581 21,433
Adjusted net income (B) $50,519 $46,659 $49,294 $41,796 $38,566
Average common equity (C) $1,704,388 $1,686,763 $1,627,976 $1,571,104 $1,530,550
ROCE (A/C) 11.89 % 11.22 % 3.83 % 5.14 % 10.11 %
Adjusted ROCE (B/C) 11.89 % 11.22 % 12.01 % 10.55 % 10.11 %
APPENDIX F: Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
For the Three Months Ended
($ in thousands) June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Net Income $50,519 $46,659 $15,713 $20,363 $38,566
Intangible asset amortization, net of taxes 923 960 994 1,066 1,123
Tangible Net income (A) 51,442 47,619 16,707 21,429 39,689
After-tax impact of loss-earnback 33,581 21,433
Adjusted tangible net income (B) $51,442 $47,619 $50,288 $42,862 $39,689
Average common equity $1,704,388 $1,686,763 $1,627,976 $1,571,104 $1,530,550
Less: Average goodwill and other intangibles, (482,326) (483,314) (484,313) (485,331) (486,393)
net of related taxes
Average TCE (C) $1,222,062 $1,203,449 $1,143,663 $1,085,773 $1,044,157
ROTCE (A/C) 16.88 % 16.05 % 5.80 % 7.83 % 15.25 %
Adjusted ROTCE (B/C) 16.88 % 16.05 % 17.45 % 15.66 % 15.25 %
APPENDIX G: Efficiency Ratio and Adjusted Efficiency Ratio
For the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025
Noninterest expenses (A) $62,761 $60,218 $62,043 $60,171 $58,924
Nointerest income (B) 16,034 15,178 (22,479) (12,951) 14,292
Securities losses, net (43,722) (27,905)
Adjusted nointerest income (C) 16,034 15,178 21,243 14,954 14,292
Net interest income - tax-equivalent (D) 111,732 107,595 106,601 102,829 96,877
Efficiency ratio A/(B+D) 49.12 % 49.05 % 73.75 % 66.95 % 53.00 %
Adjusted efficiency ratio A/(C+D) 49.12 % 49.05 % 48.53 % 51.09 % 53.00 %
Supplemental information
APPENDIX H: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the second quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.1 million for the linked quarter and $1.5 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the second quarter of 2026, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS June 30, March 31, June 30,
2026 2026 2025
($ in thousands)
Interest income - increased by accretion of loan discount on acquired loans $1,083 $1,065 $1,457
Total interest income impact 1,083 1,065 1,457
Interest expense - increased by discount accretion on deposits (62) (61) (102)
Interest expense - increased by discount accretion on borrowings (87) (86) (194)
Total net interest expense impact (149) (147) (296)
Total impact on net interest income $934 $918 $1,161
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SOURCE First Bancorp
