First Bancorp Reports First Quarter Results
FBNC
SOUTHERN PINES, N.C., April 23, 2025 /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 $36.4 million, or $0.88 diluted earnings per share ("D-EPS"), for the three months ended March 31, 2025 compared to $3.6 million, or $0.08 D-EPS, for the three months ended December 31, 2024 ("linked quarter") and $25.3 million, or $0.61 D-EPS, for the first quarter of 2024 ("like quarter").
The Company continued its efforts to enhance net interest income and net interest margin. The Company recorded net interest income of $92.9 million for the first quarter of 2025, compared to $88.8 million for the linked quarter and $79.3 million for the like quarter. Tax equivalent net interest margin ("NIM-T/E") for the first quarter of 2025 expanded to 3.27% from 3.08% for the linked quarter and 2.80% for the like quarter.
First Bancorp also continued to maintain expense control with noninterest expenses contracting to $57.9 million for the first quarter of 2025, down from $58.3 million for the linked quarter and $59.2 million for the like quarter.
The results for the first quarter of 2025 include a $2.0 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($1.5 million after-taxes or $0.04 per diluted share). In addition, the results for the fourth quarter 2024 included a securities loss of $36.8 million ($28.2 million after-taxes, or $0.68 per diluted share), from the securities loss-earnback transaction that included the sale of $283.8 million of available-for-sale securities bearing 1.62%. The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the first quarter of 2025 and the fourth quarter of 2024 are presented in Appendix E.
Richard H. Moore, CEO and Chairman of the Company, stated "Our Company had a strong quarter highlighted by the execution of our succession plan elevating Adam Currie to Chief Executive Officer of First Bank. Our ability to enhance net interest income and margin as well as maintain prudent expense management bodes well for the future. We remain focused on maintaining credit quality and managing our balance sheet while continuing to provide excellent service to our customers. Our solid liquidity and excess capital will provide us strategic flexibility in the days ahead."
First Quarter 2025 Highlights
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2025 was $92.9 million, an increase of 4.5% from the linked quarter of $88.8 million and 17.2% from the like quarter of $79.3 million. The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs while increasing loan yields after the rate cuts by the Federal Reserve in the second half of 2024 along with the increased securities yield resulting from the loss-earnback transaction in the fourth quarter of 2024.
The Company's NIM-T/E for the first quarter of 2025 was 3.27%, an increase of 19 basis points from the linked quarter and 47 basis points from the like quarter. Within interest-earning assets, the loss-earnback transaction in the securities portfolio during the fourth quarter of 2024 resulted in an increase of 32 basis points as compared to the linked quarter. In addition, loan yields increased 5 basis points to 5.52%. Following the three rate cuts by the Federal Reserve between September and December, the rate on interest-bearing deposits fell 17 basis points during the quarter ended March 31, 2025. The like quarter expansion of NIM-T/E was driven by the same three factors described above resulting in an increase of 50 basis points in securities yield, an increase of 7 basis points in loan yields, and a decrease of 19 basis points in the rate on interest-bearing deposits.
For the Three Months Ended
YIELD INFORMATION
March 31, 2025
December 31, 2024
March 31, 2024
Yield on loans
5.52 %
5.47 %
5.45 %
Yield on securities
2.28 %
1.96 %
1.78 %
Yield on other earning assets
4.42 %
4.49 %
4.30 %
Yield on total interest-earning assets
4.65 %
4.55 %
4.43 %
Cost of interest-bearing deposits
2.14 %
2.31 %
2.33 %
Cost of borrowings
7.31 %
7.66 %
5.71 %
Cost of total interest-bearing liabilities
2.21 %
2.38 %
2.59 %
Total cost of funds
1.51 %
1.62 %
1.79 %
Cost of total deposits
1.46 %
1.57 %
1.56 %
Net interest margin (1)
3.25 %
3.05 %
2.77 %
Net interest margin - tax-equivalent (2)
3.27 %
3.08 %
2.80 %
Average prime rate
7.50 %
7.81 %
8.50 %
(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 F regarding loan purchase discount accretion and its impact on the Company's NIM-T/E.
Provision for Credit Losses and Credit Quality
For the three months ended March 31, 2025 and March 31, 2024, the Company recorded $1.1 million and $1.2 million in provision for credit losses, respectively. The provision for the first quarter of 2025 was driven by loan growth of $8.4 million and net charge-offs of $3.3 million partially offset by the $2.0 million reduction in reserves for potential credit exposure from Hurricane Helene as well as a reduction in the level of unfunded commitment reserves. Net charge-offs for the first quarter of 2025 included $1.3 million related to the sale of a lending relationship as the result of an accelerated resolution. The March economic forecasts, which are a key driver in the Company's CECL model, are relatively consistent with the prior quarter.
Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene starting late in the third quarter of 2024, the Company identified borrowers that were potentially impacted by the storm and subsequent economic impacts which represented approximately $722 million of loans outstanding as of March 31, 2025. Based upon its continuing evaluation of these potential impacts, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $11.0 million as of March 31, 2025, a decrease of $2.0 million from December 31, 2024. The remaining incremental reserve contributes 14 basis points to the Allowance for Credit Losses at period end.
Asset quality remained strong with annualized net loan charge-offs of 0.17% for the first quarter of 2025. Total NPAs remained at a low level at $33.9 million at March 31, 2025, or 0.27% of total assets, down slightly from 0.30% at both December 31, 2024 and March 31, 2024.
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA
($ in thousands)
March 31, 2025
December 31, 2024
March 31, 2024
Nonperforming assets
Nonaccrual loans
$ 29,081
$ 31,779
$ 35,622
Accruing loans > 90 days past due
—
—
—
Total nonperforming loans
29,081
31,779
35,622
Foreclosed real estate
4,769
4,965
926
Total nonperforming assets
$ 33,850
$ 36,744
$ 36,548
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized
0.17 %
0.04 %
0.08 %
Nonperforming loans to total loans
0.36 %
0.39 %
0.44 %
Nonperforming assets to total assets
0.27 %
0.30 %
0.30 %
Allowance for credit losses to total loans
1.49 %
1.51 %
1.36 %
Noninterest Income
Noninterest income totaled $12.9 million during the first quarter of 2025, an increase from the negative $23.2 million recorded for the linked quarter which reflected the inclusion of the $36.8 million securities loss. Excluding the loss on securities in the linked quarter, noninterest income decreased $0.7 million, or 5.4%, primarily from seasonal decreases in service charges and gains on mortgages. As compared to the like quarter, noninterest income was substantially unchanged.
Noninterest Expenses
Noninterest expenses amounted to $57.9 million for the first quarter of 2025 compared to $58.3 million for the linked quarter and $59.2 million for the like quarter. The $0.4 million, or 0.7%, decrease in noninterest expense from the linked quarter was driven by a $0.4 million decrease in total personnel expense, as the Company continues to actively manage headcount.
The $1.3 million decrease from the like quarter was driven by focused efforts to reduce controllable expenses including technology, operating and labor costs. Other operating expenses decreased $1.0 million and Occupancy and equipment related expenses decreased $0.9 million. For that same period, despite the fact that base salaries declined slightly, Salaries, incentives and commissions expense increased $1.0 million primarily driven by higher incentives and commissions from improved operating results in 2025.
Income Taxes
Income tax expense totaled $10.4 million for the first quarter of 2025 compared to $3.3 million for the linked quarter and $6.5 million for the like quarter. These equated to effective tax rates of 22.2%, 48.4% and 20.5% for the respective periods. As previously disclosed, the effective tax rate for the linked quarter was impacted by lower pretax income as well as the inclusion of $2.4 million of incremental state tax-related expense related to a variety of factors.
Balance Sheet
Total assets at March 31, 2025 amounted to $12.4 billion, an increase of $288.6 million, or 9.63% annualized, from the linked quarter and an increase of $344.6 million, or 2.85%, from a year earlier. The increase from the prior periods was primarily related to deposit growth that generated investable funds which were deployed in loans and amounts due from banks, including the Federal Reserve.
Quarterly average balances for key balance sheet components are presented below.
For the Three Months Ended
AVERAGE BALANCES
($ in thousands)
March 31, 2025
December 31, 2024
March 31, 2024
Change 1Q25 vs 4Q24
Change 1Q25 vs 1Q24
Total assets
$ 12,226,810
$ 12,243,771
$ 12,111,201
(0.1) %
1.0 %
Investment securities, at amortized cost
2,917,971
2,825,154
3,108,464
3.3 %
(6.1) %
Loans
8,107,394
7,993,671
8,103,387
1.4 %
— %
Earning assets
11,528,742
11,592,480
11,489,796
(0.5) %
0.3 %
Deposits
10,594,140
10,608,629
10,078,835
(0.1) %
5.1 %
Interest-bearing liabilities
7,311,002
7,272,728
7,343,934
0.5 %
(0.4) %
Shareholders' equity
1,467,871
1,466,181
1,375,491
0.1 %
6.7 %
Primarily the result of decreased unrealized losses on the available for sale securities portfolio, total investment securities increased to $2.6 billion at March 31, 2025, reflecting a $19.7 million increase from the linked quarter. Total unrealized loss on available for sale investment securities was $321.2 million at March 31, 2025, as compared to $368.1 million at December 31, 2024 and $418.9 million at March 31, 2024. During the fourth quarter of 2024, as part of the loss-earnback transaction in the securities portfolio, $283.8 million of securities with a weighted average yield of 1.62% were sold at a loss of $36.8 million and $494.9 million of securities were purchased, with a weighted average yield of 5.21%.
Total loans amounted to $8.1 billion at March 31, 2025, an increase of $8.4 million, or 0.4%, from December 31, 2024 and an increase of $26.5 million, or 0.3%, from March 31, 2024. Please see below table for total loan portfolio mix. As of March 31, 2025, there were no notable concentrations in geographies within North Carolina and South Carolina or industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below. The Company's exposure to non-owner occupied office loans represented approximately 6.0% of the total portfolio at March 31, 2025, with the largest loan being $26.3 million and with an average loan outstanding balance of $1.3 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO
March 31, 2025
December 31, 2024
March 31, 2024
($ in thousands)
Amount
Percentage
Amount
Percentage
Amount
Percentage
Commercial and industrial
$ 890,071
11 %
$ 919,690
11 %
$ 872,623
11 %
Construction, development & other land loans
644,439
8 %
647,167
8 %
904,216
11 %
Commercial real estate - owner occupied
1,233,732
15 %
1,248,812
16 %
1,238,759
15 %
Commercial real estate - non-owner occupied
2,701,746
34 %
2,625,554
33 %
2,524,221
31 %
Multi-family real estate
512,958
6 %
506,407
6 %
457,142
6 %
Residential 1-4 family real estate
1,709,593
21 %
1,729,322
21 %
1,684,173
21 %
Home equity loans/lines of credit
341,240
4 %
345,883
4 %
328,466
4 %
Consumer loans
68,115
1 %
70,653
1 %
66,666
1 %
Loans, gross
8,101,894
100 %
8,093,488
100 %
8,076,266
100 %
Unamortized net deferred loan fees
1,139
1,188
240
Total loans
$ 8,103,033
$ 8,094,676
$ 8,076,506
Total deposits were $10.7 billion at March 31, 2025, an increase of $214.1 million, or 8.2%, from December 31, 2024 and an increase of $441.3 million, or 4.3%, from March 31, 2024.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at March 31, 2025. As presented in the table below, our deposit mix has remained relatively consistent, with the exception of increased growth in money market accounts, partially offset by a decline in time deposits.
DEPOSIT PORTFOLIO
March 31, 2025
December 31, 2024
March 31, 2024
($ in thousands)
Amount
Percentage
Amount
Percentage
Amount
Percentage
Noninterest-bearing checking accounts
$ 3,476,786
32 %
$ 3,367,624
32 %
$ 3,362,265
33 %
Interest-bearing checking accounts
1,448,377
14 %
1,398,395
13 %
1,401,724
13 %
Money market accounts
4,386,469
41 %
4,285,405
41 %
3,787,323
37 %
Savings accounts
539,632
5 %
542,133
5 %
584,901
6 %
Other time deposits
533,723
5 %
566,514
5 %
607,359
6 %
Time deposits >$250,000
349,990
3 %
360,854
4 %
363,687
3 %
Total customer deposits
10,734,977
100 %
10,520,925
100 %
10,107,259
98 %
Brokered deposits
9,682
— %
9,600
— %
196,052
2 %
Total deposits
$ 10,744,659
100 %
$ 10,530,525
100 %
$ 10,303,311
100 %
As of March 31, 2025 and December 31, 2024, estimated insured deposits totaled $6.5 billion, or 60.2%, and $6.4 billion, or 61.0%, respectively, of total deposits. In addition, at March 31, 2025 and December 31, 2024, there were collateralized deposits of $725.9 million and $690.5 million, respectively, such that approximately 66.9% and 67.6%, 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 March 31, 2025 of 16.79%, up from the linked quarter ratio of 16.63% and the like quarter ratio of 15.85%. The increases during the first quarter of 2025 in risk-based capital ratios was driven by earnings in excess of capital uses for dividends and share repurchases during the quarter.
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 8.55% at March 31, 2025, an increase of 33 basis points from the linked quarter and 93 basis points from March 31, 2024. The first quarter increase in TCE was driven by earnings and improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter. Refer to Appendix B for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix D for a calculation of the TCE ratio (a non-GAAP meansure).
CAPITAL RATIOS
March 31, 2025 (estimated)
December 31, 2024
March 31, 2024
Tangible common equity to tangible assets (non-GAAP)
8.55 %
8.22 %
7.62 %
Common equity tier I capital ratio
14.53 %
14.35 %
13.50 %
Tier I leverage ratio
11.41 %
11.15 %
10.99 %
Tier I risk-based capital ratio
15.34 %
15.17 %
14.29 %
Total risk-based capital ratio
16.79 %
16.63 %
15.85 %
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, 2025 was 19.8%. In addition, the Company had approximately $2.4 billion in available lines of credit at that date resulting in a total liquidity ratio of 36.4%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.4 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 press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
Non-GAAP Measures
In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP"). Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance. Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted D-EPS.
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED INCOME STATEMENT
For the Three Months Ended
($ in thousands, except per share data - unaudited)
March 31, 2025
December 31, 2024
March 31, 2024
Interest income
Interest and fees on loans
$ 110,533
$ 109,835
$ 109,798
Interest on investment securities:
Taxable interest income
15,524
12,712
12,728
Tax-exempt interest income
1,116
1,116
1,117
Other, principally overnight investments
5,487
8,732
2,971
Total interest income
132,660
132,395
126,614
Interest expense
Interest on deposits
38,119
41,786
39,135
Interest on borrowings
1,658
1,768
8,205
Total interest expense
39,777
43,554
47,340
Net interest income
92,883
88,841
79,274
Provision for credit losses
1,116
507
1,200
Net interest income after provision for credit losses
91,767
88,334
78,074
Noninterest income
Service charges on deposit accounts
3,767
4,293
3,868
Other service charges and fees
5,883
5,828
5,570
Presold mortgage loan fees and gains on sale
450
676
338
Commissions from sales of financial products
1,408
1,202
1,320
SBA loan sale gains
52
291
895
Bank-owned life insurance income
1,228
1,225
1,164
Securities losses, net
—
(36,820)
(975)
Other Income, net
114
128
716
Total noninterest income
12,902
(23,177)
12,896
Noninterest expenses
Salaries incentives and commissions expense
28,661
28,447
27,642
Employee benefit expense
6,095
6,702
6,269
Total personnel expense
34,756
35,149
33,911
Occupancy and equipment expense
5,192
4,690
6,075
Intangibles amortization expense
1,516
1,563
1,759
Other operating expenses
16,429
16,877
17,442
Total noninterest expenses
57,893
58,279
59,187
Income before income taxes
46,776
6,878
31,783
Income tax expense
10,370
3,327
6,511
Net income
$ 36,406
$ 3,551
$ 25,272
Earnings per common share:
Basic
$ 0.88
$ 0.09
$ 0.61
Diluted
0.88
0.08
0.61
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)
March 31, 2025
December 31, 2024
March 31, 2024
Assets
Cash and due from banks, noninterest-bearing
$ 149,781
$ 78,596
$ 87,181
Due from banks, interest-bearing
622,660
428,911
266,661
Total cash and cash equivalents
772,441
507,507
353,842
Securities available for sale
2,064,516
2,043,062
2,088,483
Securities held to maturity
518,265
519,998
525,627
Presold mortgages and SBA loans held for sale
5,166
5,942
6,703
Loans
8,103,033
8,094,676
8,076,506
Allowance for credit losses on loans
(120,631)
(122,572)
(110,067)
Net loans
7,982,402
7,972,104
7,966,439
Premises and equipment, net
141,954
143,459
150,546
Accrued interest receivable
35,452
36,329
35,147
Goodwill
478,750
478,750
478,750
Other intangible assets, net
21,388
22,904
27,748
Bank-owned life insurance
189,597
188,460
185,061
Other assets
226,314
229,179
273,251
Total assets
$ 12,436,245
$ 12,147,694
$ 12,091,597
Liabilities
Deposits:
Noninterest-bearing deposits
$ 3,476,786
$ 3,367,624
$ 3,362,265
Interest-bearing deposits
7,267,873
7,162,901
6,941,046
Total deposits
10,744,659
10,530,525
10,303,311
Borrowings
92,055
91,876
332,335
Accrued interest payable
4,935
4,604
9,847
Other liabilities
86,420
75,078
70,005
Total liabilities
10,928,069
10,702,083
10,715,498
Shareholders' equity
Common stock
971,174
971,313
965,429
Retained earnings
783,630
756,327
732,643
Stock in rabbi trust assumed in acquisition
(1,166)
(1,148)
(1,396)
Rabbi trust obligation
1,166
1,148
1,396
Accumulated other comprehensive loss
(246,628)
(282,029)
(321,973)
Total shareholders' equity
1,508,176
1,445,611
1,376,099
Total liabilities and shareholders' equity
$ 12,436,245
$ 12,147,694
$ 12,091,597
First Bancorp and Subsidiaries
Financial Summary
TREND INFORMATION
For the Three Months Ended
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
PERFORMANCE RATIOS (annualized)
Return on average assets (1)
1.21 %
0.12 %
0.61 %
0.96 %
0.84 %
Return on average common equity (2)
10.06 %
0.96 %
5.14 %
8.38 %
7.39 %
Return on average tangible common equity (3)
15.54 %
1.93 %
8.30 %
13.60 %
12.13 %
COMMON SHARE DATA
Cash dividends declared - common
$ 0.22
$ 0.22
$ 0.22
$ 0.22
$ 0.22
Book value per common share
$ 36.46
$ 34.96
$ 35.74
$ 34.10
$ 33.44
Tangible book value per share (4)
$ 24.69
$ 23.17
$ 23.91
$ 22.19
$ 21.49
Common shares outstanding at end of period
41,368,828
41,347,418
41,340,099
41,187,943
41,156,286
Weighted average shares outstanding - diluted
41,406,525
41,422,973
41,366,743
41,262,091
41,249,636
CAPITAL INFORMATION (estimates for current quarter)
Tangible common equity to tangible assets (5)
8.55 %
8.22 %
8.47 %
7.90 %
7.62 %
Common equity tier I capital ratio
14.53 %
14.35 %
14.37 %
13.99 %
13.50 %
Total risk-based capital ratio
16.79 %
16.63 %
16.65 %
16.24 %
15.85 %
(1) Calculated by dividing annualized net income by average assets.
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for the components of the calculation.
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for the components of the calculation and the reconciliation of average common equity to average TCE.
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation.
For the Three Months Ended
INCOME STATEMENT
($ in thousands except per share data)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Net interest income - tax-equivalent (1)
$ 93,320
$ 89,587
$ 83,765
$ 81,848
$ 80,005
Taxable equivalent adjustment (1)
437
746
722
733
731
Net interest income
92,883
88,841
83,043
81,115
79,274
Provision for credit losses
1,116
507
14,200
541
1,200
Noninterest income
12,902
(23,177)
13,579
14,601
12,896
Noninterest expense
57,893
58,279
59,850
58,291
59,187
Income before income taxes
46,776
6,878
22,572
36,884
31,783
Income tax expense
10,370
3,327
3,892
8,172
6,511
Net income
36,406
3,551
18,680
28,712
25,272
Earnings per common share - diluted
$ 0.88
$ 0.08
$ 0.45
$ 0.70
$ 0.61
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming the expected tax rate and is reduced by the related nondeductible portion of interest expense.
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
For the Three Months Ended
March 31, 2025
December 31, 2024
March 31, 2024
($ in thousands)
Average
Volume
Interest
Earned
or Paid
Average
Rate
Average
Volume
Interest
Earned
or Paid
Average
Rate
Average
Volume
Interest
Earned
or Paid
Average
Rate
Assets
Loans (1) (2)
$ 8,107,394
$ 110,533
5.52 %
$ 7,993,671
$ 109,835
5.47 %
$ 8,103,387
$ 109,798
5.45 %
Taxable securities
2,629,066
15,524
2.36 %
2,535,232
12,712
2.01 %
2,815,266
12,728
1.81 %
Non-taxable securities
288,905
1,116
1.55 %
289,922
1,116
1.54 %
293,198
1,117
1.52 %
Short-term investments, primarily interest-bearing cash
503,377
5,487
4.42 %
773,655
8,732
4.49 %
277,945
2,971
4.30 %
Total interest-earning assets
11,528,742
132,660
4.65 %
11,592,480
132,395
4.55 %
11,489,796
126,614
4.43 %
Cash and due from banks
133,756
80,481
90,833
Premises and equipment
143,064
144,467
151,159
Other assets
421,248
426,343
379,413
Total assets
$ 12,226,810
$ 12,243,771
$ 12,111,201
Liabilities
Interest-bearing checking
$ 1,431,556
$ 2,497
0.71 %
$ 1,389,063
$ 2,438
0.70 %
$ 1,403,484
$ 2,359
0.68 %
Money market deposits
4,337,560
29,180
2.73 %
4,273,170
31,430
2.93 %
3,704,731
27,813
3.02 %
Savings deposits
539,104
240
0.18 %
542,861
269
0.20 %
592,395
308
0.21 %
Other time deposits
558,648
3,353
2.43 %
598,152
4,192
2.79 %
709,517
5,456
3.09 %
Time deposits >$250,000
352,174
2,849
3.28 %
377,693
3,457
3.64 %
355,809
3,199
3.62 %
Total interest-bearing deposits
7,219,042
38,119
2.14 %
7,180,939
41,786
2.31 %
6,765,936
39,135
2.33 %
Borrowings
91,960
1,658
7.31 %
91,789
1,768
7.66 %
577,998
8,205
5.71 %
Total interest-bearing liabilities
7,311,002
39,777
2.21 %
7,272,728
43,554
2.38 %
7,343,934
47,340
2.59 %
Noninterest-bearing checking
3,375,098
3,427,690
3,312,899
Other liabilities
72,839
77,172
78,877
Shareholders' equity
1,467,871
1,466,181
1,375,491
Total liabilities and shareholders' equity
$ 12,226,810
$ 12,243,771
$ 12,111,201
Net yield on interest-earning assets and net interest income
$ 92,883
3.25 %
$ 88,841
3.05 %
$ 79,274
2.77 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)
$ 93,320
3.27 %
$ 89,587
3.08 %
$ 80,005
2.80 %
Interest rate spread
2.44 %
2.17 %
1.84 %
Average prime rate
7.50 %
7.81 %
8.50 %
(1)
Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(294,000), $(340,000)and $(472,000) for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(2)
Includes accretion of discount on acquired loans of $1.8 million, $2.2 million and $2.4 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(3)
Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
Reconciliation of non-GAAP measures
APPENDIX A: Calculation of Return on TCE
For the Three Months Ended
($ in thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Net Income
$ 36,406
$ 3,551
$ 18,680
$ 28,712
$ 25,272
Intangible asset amortization, net of taxes
1,159
1,195
1,240
1,283
1,352
Tangible Net income
$ 37,565
$ 4,746
$ 19,920
$ 29,995
$ 26,624
Average common equity
$ 1,467,871
$ 1,466,181
$ 1,445,029
$ 1,378,284
$ 1,375,490
Less: Average goodwill and other intangibles, net of related taxes
(487,395)
(488,624)
(489,987)
(491,318)
(492,733)
Average tangible common equity
$ 980,476
$ 977,557
$ 955,042
$ 886,966
$ 882,757
Return on average common equity
10.06 %
0.96 %
5.14 %
8.38 %
7.39 %
Return on average tangible common equity
15.54 %
1.93 %
8.30 %
13.60 %
12.13 %
APPENDIX B: Reconciliation of Common Equity to TCE
For the Three Months Ended
($ in thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Total shareholders' common equity
$ 1,508,176
$ 1,445,611
$ 1,477,525
$ 1,404,342
$ 1,376,099
Less: Goodwill and other intangibles, net of related taxes
(486,749)
(487,660)
(489,139)
(490,439)
(491,740)
Tangible common equity
$ 1,021,427
$ 957,951
$ 988,386
$ 913,903
$ 884,359
APPENDIX C: Tangible Book Value Per Share
For the Three Months Ended
($ in thousands except per share data)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Tangible common equity (Appendix B)
$ 1,021,427
$ 957,951
$ 988,386
$ 913,903
$ 884,359
Common shares outstanding
41,368,828
41,347,418
41,340,099
41,187,943
41,156,286
Tangible book value per common share
$ 24.69
$ 23.17
$ 23.91
$ 22.19
$ 21.49
APPENDIX D: TCE Ratio
For the Three Months Ended
($ in thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Tangible common equity (Appendix B)
$ 1,021,427
$ 957,951
$ 988,386
$ 913,903
$ 884,359
Total assets
12,436,245
12,147,694
12,153,430
12,060,805
12,091,597
Less: Goodwill and other intangibles, net of related taxes
(486,749)
(487,660)
(489,139)
(490,439)
(491,740)
Tangible assets ("TA")
$ 11,949,496
$ 11,660,034
$ 11,664,291
$ 11,570,366
$ 11,599,857
TCE to TA ratio
8.55 %
8.22 %
8.47 %
7.90 %
7.62 %
Reconciliation of non-GAAP measures, continued
APPENDIX E: Adjusted EPS - diluted
For the Three Months Ended
($ in thousands)
March 31, 2025
December 31, 2024
March 31, 2024
Net income
$ 36,406
$ 3,551
$ 25,272
Impact of Hurricane Helene
Provision for (benefit from) credit losses
(2,000)
—
—
Building repairs and maintenance
—
(24)
—
Other
—
(3)
—
Total
(2,000)
(27)
—
Less, tax impact
464
6
—
After-tax impact of Hurricane Helene
(1,536)
(21)
—
Impact of loss-earnback
Securities loss from loss-earnback
—
36,820
—
Less, tax impact
—
(8,660)
—
After-tax impact of loss-earnback
—
28,160
—
Adjusted net income
$ 34,870
$ 31,690
$ 25,272
Weighted average shares outstanding - diluted
41,406,525
41,422,973
41,249,636
EPS - diluted
$ 0.88
$ 0.08
$ 0.61
Adjusted EPS - diluted
$ 0.84
$ 0.76
$ 0.61
Supplemental informationAPPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM-T/E
Included in interest income for the first quarter of 2025 was loan purchase accounting discount accretion of $1.8 million compared to $2.2 million for the linked quarter and $2.4 million for the like quarter, with the activity related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of 5 basis points, 6 basis points and 11 basis points, respectively, on the Company's NIM-T/E in the first quarter of 2025, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS
($ in thousands)
March 31, 2025
December 31, 2024
March 31, 2024
Interest income - increased by accretion of loan discount on acquired loans
$ 1,789
$ 2,195
$ 2,437
Total interest income impact
1,789
2,195
2,437
Interest expense - increased by discount accretion on deposits
(103)
(145)
(283)
Interest expense - increased by discount accretion on borrowings
(191)
(195)
(189)
Total net interest expense impact
(294)
(340)
(472)
Total impact on net interest income
$ 1,495
$ 1,855
$ 1,965
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SOURCE First Bancorp