18:20:31 EDT Wed 22 Apr 2026
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First Bancorp Reports First Quarter Results

2026-04-22 16:05 ET - News Release

First Bancorp Reports First Quarter Results

PR Newswire

                           
        
        First Quarter 2026 Financial Data


         (Dollars in 000s, except                                        Q1-2026 Q4-2025  Q1-2025
per share data)



        
          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 %
to tangible assets



        Common equity tier I                                            14.11 % 14.10 %  14.52 %
capital ratio


         Total risk-based capital                                        16.10 % 16.12 %  16.80 %
ratio


          (1) Q4-2025 adjusted to exclude impact of securities loss of $43.7 million
(after tax $33.6 million).  See Appendices D, E, F and G.

---


          (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,           December 31,     March 31,
                                                2026                   2025            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                         March 31, December 31,  March 31,
                                                               2026                     2025
                                                                              2025

   
            ($ in thousands)





   
            
              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             March 31,   December  March 31,       Change        Change
                                         2026    31, 2025       2025  1Q26 vs       1Q26 vs
               ($ in thousands)                                       4Q25          1Q25





 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 %
  loans



       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 %
  occupied



       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
  fees/(costs)



       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, December 31, March 31,
                                                                2026                    2025
                                                       (estimated)             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,           December 31,     March 31,
                                                                                                       2026                                  2025
                                                                                                                                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,
                                                                                           2026          2025        2025



 
            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,
                                                                                                  2026    31, 2025                   30, 2025       2025          2025





 
            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                       March 31,  December                  September   June 30,    March 31,
                                                           2026   31, 2025                   30, 2025       2025          2025

 
            ($ in thousands except per share data)





 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                  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)                                                                  $8,781,728                   $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 %
tax-equivalent (3)



          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,
                                                                                                    2026   31, 2025                   30, 2025        2025          2025





 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,
                                                                                           2026   31, 2025                   30, 2025       2025          2025





   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,
                                                                  2026    31, 2025                   30, 2025        2025          2025





     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)
taxes



     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,
                                                                         2026              31, 2025            2025





 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,
                                                                                 2026           31, 2025                   30, 2025       2025          2025





 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,
                                                                                 2026           31, 2025                   30, 2025       2025          2025





 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,
                                                                                                     2026   31, 2025                   30, 2025        2025          2025





          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)
related taxes



          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,
                                                        31, 2025                       2025





 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,
                                                                               2026              31, 2025            2025





 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            March 31,           December 31,     March 31,
                                                                                 2026                                  2025
                                                                                                          2025

 
            ($ in thousands)





 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

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SOURCE First Bancorp

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