Accessibility StatementSkip Navigation GREENSBORO, N.C., Nov. 20, 2025 /PRNewswire/ -- First Bank is pleased to announce Bridget Welborn joined the bank this October as its new Chief Risk Officer and Head of Legal. Welborn brings more than 15 years of experience in legal, risk, privacy, and regulatory compliance, with a proven track record advising boards, CEOs, and executive management on critical initiatives. Welborn most recently served as Senior Counsel, Banking, Privacy & Data Security at Wyrick Robb ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 Commission File Number 0-15572 FIRST BANCORP (Exact Name of Registrant as Specified in its Charter) | North Carolina | | | 56-1421916 | | --- | --- | --- | --- | | (State or Other Jurisdiction of Incorporation or Organization) | | | (I.R.S. Employer Identification Number) | | 205 SE Broad St ...

Core Viewpoint - First Bancorp has appointed G. Adam Currie as a member of the Boards of Directors for both First Bank and First Bancorp, reflecting the Board's confidence in his leadership and vision for the company's future [1][2]. Company Overview - First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.8 billion [3]. - The principal activity of First Bancorp is the ownership and operation of First Bank, which is a state-chartered community-focused bank operating 113 branches in North and South Carolina [3]. - First Bank has a legacy of service and commitment to communities since its establishment in 1935, providing tailored banking solutions and local expertise [3]. Leadership Background - G. Adam Currie has been with First Bank since 2015 and has held various leadership roles, including CEO since February 2025 [1]. - Prior to his role at First Bank, Currie held senior leadership positions at PNC Capital Markets and RBC Bank, and began his career at Bank of America [1]. - Currie holds a Bachelor of Arts in Economics from the University of North Carolina at Chapel Hill and is a graduate of the Graduate School of Banking at Louisiana State University [1].

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Core Insights - First Bancorp reported a revenue of $117.52 million for the quarter ended September 2025, marking a 21.6% increase year-over-year [1] - The earnings per share (EPS) was $1.01, up from $0.70 in the same quarter last year, exceeding the consensus EPS estimate of $0.93 by 8.6% [1] - The revenue surpassed the Zacks Consensus Estimate of $112.37 million, resulting in a surprise of 4.58% [1] Financial Metrics - Net Interest Margin was reported at 3.5%, higher than the estimated 3.3% [4] - Net Charge-offs remained stable at 0.1%, matching the average estimate [4] - Average Interest-Earning Assets totaled $11.79 billion, slightly above the estimated $11.78 billion [4] - Total Non-Interest Income reached $15.03 million, exceeding the average estimate of $14.11 million [4] - Bank-Owned Life Insurance Income was $1.29 million, compared to the estimated $1.12 million [4] - Other service charges, commissions, and fees amounted to $6.36 million, surpassing the average estimate of $5.97 million [4] - Commissions from sales of insurance and financial products were $1.68 million, exceeding the estimated $1.21 million [4] - Service charges on deposit accounts totaled $4.23 million, above the average estimate of $4.07 million [4] - Net Interest Income was reported at $102.49 million, compared to the average estimate of $97.42 million [4] Stock Performance - Shares of First Bancorp have declined by 8.3% over the past month, while the Zacks S&P 500 composite increased by 1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - First Bancorp reported quarterly earnings of $1.01 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing a year-over-year increase from $0.70 per share [1][2] Financial Performance - The company achieved revenues of $117.52 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.58%, compared to $96.62 million in the same quarter last year [2] - Over the last four quarters, First Bancorp has consistently exceeded consensus EPS estimates [2] Stock Performance - First Bancorp shares have increased approximately 11% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $114.07 million, and for the current fiscal year, it is $3.54 on revenues of $443.6 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock movements [6][5] Industry Context - The Banks - Southeast industry, to which First Bancorp belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of First Bancorp's Q3 2025 financial performance, including key metrics and CEO commentary on strategic drivers and outlook [Third Quarter 2025 Performance Overview](index=1&type=section&id=Third%20Quarter%202025%20Performance%20Overview) First Bancorp reported net income of **$20.4 million** and diluted EPS of **$0.49** for Q3 2025, with adjusted diluted EPS of **$1.01**, driven by loan growth and expanded net interest margin despite a securities loss Key Performance Metrics (in thousands) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :------------------------- | :------ | :------ | :------ | | Net income | $20,363 | $38,566 | $18,680 | | Diluted EPS | $0.49 | $0.93 | $0.45 | | Adjusted diluted EPS (1) | $1.01 | $0.93 | $0.45 | | ROA | 0.64 % | 1.24 % | 0.61 % | | Adjusted ROA (1) | 1.31 % | 1.24 % | 0.61 % | | NIM | 3.46 % | 3.32 % | 2.88 % | - Diluted earnings per share (D-EPS) was **$0.49**, down from **$0.93** in the linked quarter but up from **$0.45** in the like quarter. Adjusted D-EPS, excluding a **$27.9 million** securities loss, was **$1.01**[5](index=5&type=chunk) - Total loans grew by **$193.6 million**, or **9.3% annualized**, reaching **$8.4 billion** at September 30, 2025[5](index=5&type=chunk) - Net interest margin (NIM) expanded to **3.46%**, up **14 basis points** from the linked quarter and **58 basis points** from the like quarter[5](index=5&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The CEO highlighted improved 2025 financial results, substantial margin expansion, expense discipline, over 9% annualized loan growth, and strong liquidity, capital, and credit quality - First Bancorp continues to improve financial results in 2025 with substantial margin expansion of **14 basis points** and continued expense discipline[13](index=13&type=chunk) - Loan growth exceeded **9% annualized** in the quarter, benefiting from increased asset yields as assets originated in the COVID-era historic low interest rate environment mature or reprice[13](index=13&type=chunk) - Liquidity position, capital levels, and credit quality remain strong[13](index=13&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) This section analyzes First Bancorp's net interest income, credit quality, noninterest income, expenses, and income taxes for the quarter [Net Interest Income and Net Interest Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased to **$102.5 million**, with NIM expanding to **3.46%**, driven by managed deposit costs and increased loan and securities yields Net Interest Income and Net Interest Margin (in millions) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :-------------------------------- | :------ | :------ | :------ | | Net interest income | $102.5M | $96.7M | $83.0M | | Net interest margin (NIM) | 3.46% | 3.32% | 2.88% | | Yield on loans | 5.69% | 5.53% | 5.51% | | Yield on securities | 2.55% | 2.41% | 1.71% | | Cost of interest-bearing deposits | 2.18% | 2.14% | 2.59% | - The increase in net interest income was primarily driven by efforts to manage deposit costs after Federal Reserve rate cuts and increasing loan yields through originations, as well as increased securities yields from loss-earnback transactions[14](index=14&type=chunk) - A securities loss-earnback transaction in July involved selling **$194.3 million** of securities and purchasing **$167.4 million** of securities with a weighted average yield of **4.83%**, contributing to the increased yield on securities[5](index=5&type=chunk)[15](index=15&type=chunk) [Provision for Credit Losses and Credit Quality](index=4&type=section&id=Provision%20for%20Credit%20Losses%20and%20Credit%20Quality) Provision for credit losses was **$3.4 million**, influenced by loan growth and macro-economic projections, while asset quality remained strong with low nonperforming assets Provision for Credit Losses and Asset Quality (in millions) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :--------------------------------------- | :------ | :------ | :------ | | Provision for credit losses | $3.4M | $2.2M | $14.2M | | Allowance for credit losses to total loans | 1.44% | 1.47% | 1.53% | | Quarterly net charge-offs to average loans - annualized | 0.14% | 0.06% | 0.11% | | Nonperforming assets to total assets | 0.31% | 0.28% | 0.29% | - The Q3 2025 provision was influenced by **$3.0 million** in net charge-offs, reserves for **$193.6 million** in loan growth, and increased reserves from deteriorating macro-economic projections, offset by a **$4.0 million** reduction for Hurricane Helene impacts[20](index=20&type=chunk) - Total nonperforming assets (NPAs) were **$39.0 million**, or **0.31%** of total assets, a slight increase from **0.28%** in the linked quarter[23](index=23&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Total noninterest income was negative **$12.9 million** due to a **$27.9 million** securities loss, but increased **4.8%** excluding this loss Noninterest Income (in millions) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :-------------------------------- | :------ | :------ | :------ | | Total noninterest income | $(12.9)M | $14.3M | $13.6M | | Securities losses, net | $(27.9)M | $0 | $0 | | Noninterest income (excl. losses) | $15.0M | $14.3M | $13.6M | - Excluding the **$27.9 million** loss on securities, noninterest income increased by **4.8%** from the linked quarter and **10.7%** from the like quarter[25](index=25&type=chunk) [Noninterest Expenses](index=5&type=section&id=Noninterest%20Expenses) Noninterest expenses totaled **$60.2 million**, a **2.1%** increase from the linked quarter, primarily driven by higher personnel expenses Noninterest Expenses (in millions) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :-------------------------- | :------ | :------ | :------ | | Total noninterest expenses | $60.2M | $59.0M | $59.9M | | Total personnel expense | $36.8M | $35.2M | $36.5M | - The **$1.2 million (2.1%)** increase in noninterest expense from the linked quarter was primarily due to a **$1.6 million** increase in total personnel expenses[26](index=26&type=chunk) [Income Taxes](index=5&type=section&id=Income%20Taxes) Income tax expense was **$5.6 million**, resulting in an effective tax rate of **21.6%**, lower than the linked quarter but higher than the like quarter Income Taxes (in millions) | Metric | Q3-2025 | Q2-2025 | Q3-2024 | | :------------------ | :------ | :------ | :------ | | Income tax expense | $5.6M | $11.3M | $3.9M | | Effective tax rate | 21.6% | 22.6% | 17.2% | [Balance Sheet & Capital Structure](index=6&type=section&id=Balance%20Sheet%20%26%20Capital%20Structure) This section reviews First Bancorp's balance sheet, loan and deposit portfolios, capital ratios, and liquidity, highlighting key changes and financial strength [Balance Sheet Overview](index=6&type=section&id=Balance%20Sheet%20Overview) Total assets reached **$12.8 billion**, driven by loan growth and securities, with unrealized losses on available-for-sale securities decreasing Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Total assets | $12,750,263 | $12,608,265 | $12,153,430 | | Loans | $8,419,224 | $8,225,650 | $8,013,538 | | Investment securities | $2,680,401 | $2,661,236 | $2,429,259 | | Noninterest-bearing deposits | $3,580,560 | $3,542,626 | $3,350,237 | | Shareholders' equity | $1,603,323 | $1,556,180 | $1,477,525 | - Total assets increased by **$142.0 million (4.5% annualized)** from the linked quarter, primarily due to loan growth and an increase in the available-for-sale securities portfolio[28](index=28&type=chunk) - Total unrealized losses on available-for-sale investment securities decreased to **$251.8 million** at September 30, 2025, from **$298.9 million** at June 30, 2025[29](index=29&type=chunk) [Loan Portfolio Composition](index=6&type=section&id=Loan%20Portfolio%20Composition) Total loans grew to **$8.4 billion** at September 30, 2025, a **9.3% annualized** increase, maintaining a diversified portfolio with no significant concentrations in specific sectors Loan Portfolio Composition (in thousands) | Loan Category | Sep 30, 2025 Amount ($) | Sep 30, 2025 Percentage | | :-------------------------------- | :------------------ | :---------------------- | | Commercial and industrial | $904,226 | 11 % | | Construction, development & other | $688,302 | 8 % | | Commercial real estate - owner occupied | $1,337,345 | 16 % | | Commercial real estate - non owner occupied | $2,773,349 | 33 % | | Multi-family real estate | $535,681 | 6 % | | Residential 1-4 family real estate | $1,743,884 | 21 % | | Home equity loans/lines of credit | $365,488 | 4 % | | Consumer loans | $70,031 | 1 % | | **Total loans, gross** | **$8,418,306** | **100 %** | - Total loans increased by **$193.6 million**, or **9.3% annualized**, from June 30, 2025[30](index=30&type=chunk) - The Company's exposure to non-owner occupied office loans was approximately **6.2%** of the total portfolio, with the largest loan at **$33.0 million** and an average of **$1.4 million**, generally in non-metro markets[30](index=30&type=chunk) [Deposit Portfolio Composition](index=7&type=section&id=Deposit%20Portfolio%20Composition) Total deposits increased to **$10.9 billion**, with noninterest-bearing deposits at **33%** and approximately **66.0%** of total deposits insured or collateralized Deposit Portfolio Composition (in thousands) | Deposit Category | Sep 30, 2025 Amount ($) | Sep 30, 2025 Percentage | | :-------------------------------- | :------------------ | :---------------------- | | Noninterest-bearing checking accounts | $3,580,560 | 33 % | | Interest-bearing checking accounts | $1,418,378 | 13 % | | Money market accounts | $4,527,728 | 41 % | | Savings accounts | $532,462 | 5 % | | Other time deposits | $504,942 | 5 % | | Time deposits >$250,000 | $312,255 | 3 % | | **Total customer deposits** | **$10,876,325** | **100 %** | - Total deposits increased by **$50.8 million**, or **1.9% annualized**, from June 30, 2025[32](index=32&type=chunk) - Noninterest-bearing deposits constituted **33%** of total deposits, and approximately **66.0%** of total deposits were insured or collateralized[5](index=5&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Capital Ratios](index=7&type=section&id=Capital%20Ratios) Capital levels exceed regulatory requirements, with the total risk-based capital ratio at **16.58%** and TCE to tangible assets improving to **9.12%** Capital Ratios | Capital Ratio | Sep 30, 2025 (estimated) | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------------------- | :----------- | :----------- | | Tangible common equity to tangible assets (non-GAAP) | 9.12% | 8.83% | 8.47% | | Common equity tier I capital ratio | 14.35% | 14.64% | 14.37% | | Total risk-based capital ratio | 16.58% | 16.90% | 16.65% | - The total risk-based capital ratio decreased to **16.58%** from **16.90%** in the linked quarter, primarily due to **$193.6 million** of loan growth, which carries a higher risk weight[34](index=34&type=chunk) - The Tangible Common Equity (TCE) to tangible assets ratio increased by **29 basis points** to **9.12%**, driven by improvements in unrealized losses on the available-for-sale securities portfolio[35](index=35&type=chunk) [Liquidity Position](index=8&type=section&id=Liquidity%20Position) First Bancorp maintains strong liquidity with an on-balance sheet ratio of **18.2%** and an additional **$2.5 billion** in available off-balance sheet lines - The on-balance sheet liquidity ratio was **18.2%** at September 30, 2025, slightly down from **20.0%** for the linked quarter[5](index=5&type=chunk)[38](index=38&type=chunk) - Available off-balance sheet sources totaled **$2.5 billion**, contributing to a total liquidity ratio of **35.3%**[5](index=5&type=chunk)[38](index=38&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) This section outlines First Bancorp's operations, provides cautionary statements on forward-looking information, and explains non-GAAP financial measures [About First Bancorp](index=9&type=section&id=About%20First%20Bancorp) First Bancorp, headquartered in Southern Pines, NC, has **$12.8 billion** in assets, with its subsidiary First Bank operating **113 branches** across NC and SC - First Bancorp is headquartered in Southern Pines, North Carolina, with total assets of **$12.8 billion**[40](index=40&type=chunk) - Its subsidiary, First Bank, operates **113 branches** in North Carolina and South Carolina, providing tailored banking and SBA loans[40](index=40&type=chunk) [Caution about Forward-Looking Statements](index=9&type=section&id=Caution%20about%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties, and the company disclaims any obligation to update them - The press release contains forward-looking statements, which are inherently subject to risks and uncertainties[41](index=41&type=chunk) - Factors influencing accuracy include customer financial success, acquisition integration, government regulators' actions, market interest rates, and general economic conditions[41](index=41&type=chunk) - The Company undertakes no obligation to update or revise forward-looking statements[41](index=41&type=chunk) [Non-GAAP Measures Explanation](index=9&type=section&id=Non-GAAP%20Measures%20Explanation) This section clarifies that certain performance measures are non-GAAP, used for management evaluation, and reconciliations are provided in the appendices - Certain performance measures are calculated by methods other than GAAP and are used by management for evaluating performance[42](index=42&type=chunk) - Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP[42](index=42&type=chunk) - Reconciliations for non-GAAP measures like return on tangible common equity, tangible common equity, tangible book value per share, adjusted net income, and adjusted D-EPS are provided in the Appendices[42](index=42&type=chunk) [Financial Statements & Trend Data](index=10&type=section&id=Financial%20Statements%20%26%20Trend%20Data) This section presents First Bancorp's consolidated income statements, balance sheets, performance ratios, and detailed net interest income analysis [Consolidated Income Statement](index=10&type=section&id=Consolidated%20Income%20Statement) The consolidated income statement details financial results for Q3 2025 and YTD, showing trends in interest income, expenses, and net income, including a significant securities loss Consolidated Income Statement (in thousands) | Metric ($ in thousands) | Q3-2025 | Q2-2025 | Q3-2024 | YTD Sep 30, 2025 | YTD Sep 30, 2024 | | :-------------------------------- | :------ | :------ | :------ | :--------------- | :--------------- | | Total interest income | 144,200 | 136,741 | 131,409 | 413,601 | 386,845 | | Total interest expense | 41,711 | 40,065 | 48,366 | 121,553 | 143,413 | | Net interest income | 102,489 | 96,676 | 83,043 | 292,048 | 243,432 | | Provision for credit losses | 3,442 | 2,212 | 14,200 | 6,770 | 15,941 | | Total noninterest income | (12,879) | 14,341 | 13,579 | 14,364 | 41,076 | | Total noninterest expenses | 60,211 | 58,983 | 59,850 | 177,087 | 177,328 | | Net income | 20,363 | 38,566 | 18,680 | 95,335 | 72,664 | | Diluted EPS | 0.49 | 0.93 | 0.45 | 2.30 | 1.76 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present assets, liabilities, and shareholders' equity at key dates, detailing the company's financial position Consolidated Balance Sheets (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total assets | 12,750,263 | 12,608,265 | 12,153,430 | | Total cash and cash equivalents | 597,975 | 711,286 | 744,441 | | Securities available for sale | 2,165,668 | 2,144,831 | 1,907,458 | | Loans | 8,419,224 | 8,225,650 | 8,013,538 | | Allowance for credit losses on loans | (120,948) | (120,545) | (122,718) | | Total deposits | 10,881,170 | 10,830,380 | 10,504,929 | | Total liabilities | 11,146,940 | 11,052,085 | 10,675,905 | | Total shareholders' equity | 1,603,323 | 1,556,180 | 1,477,525 | [Performance Ratios & Common Share Data](index=12&type=section&id=Performance%20Ratios%20%26%20Common%20Share%20Data) This section provides a trend analysis of key performance ratios and common share data over five quarters, highlighting the impact of the Q3 2025 securities loss Performance Ratios and Common Share Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | ROA | 0.64 % | 1.24 % | 1.21 % | 0.12 % | 0.61 % | | Adjusted ROA | 1.31 % | 1.24 % | 1.21 % | 1.03 % | 0.61 % | | ROCE | 5.14 % | 10.11 % | 10.06 % | 0.96 % | 5.14 % | | Adjusted ROCE | 10.55 % | 10.11 % | 10.06 % | 8.60 % | 5.14 % | | ROTCE | 7.83 % | 15.25 % | 15.54 % | 1.93 % | 8.30 % | | Adjusted ROTCE | 15.66 % | 15.25 % | 15.54 % | 13.39 % | 8.30 % | | Diluted EPS | $0.49 | $0.93 | $0.88 | $0.08 | $0.45 | | Book value per common share | $38.67 | $37.53 | $36.46 | $34.96 | $35.74 | | Tangible book value per share | $26.98 | $25.82 | $24.69 | $23.17 | $23.91 | | Tangible common equity to tangible assets | 9.12 % | 8.83 % | 8.55 % | 8.22 % | 8.47 % | [Average Balances and Net Interest Income Analysis - Quarterly](index=13&type=section&id=Average%20Balances%20and%20Net%20Interest%20Income%20Analysis%20-%20Quarterly) This table details average balances for interest-earning assets and liabilities, along with interest earned/paid and average rates, for quarterly net interest income and margin analysis Average Balances and Net Interest Income Analysis - Quarterly (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Average Loans | $8,297,643 | $8,187,662 | $8,019,730 | | Average Total interest-earning assets | $11,794,026 | $11,678,760 | $11,489,227 | | Average Total interest-bearing deposits | $7,292,159 | $7,212,437 | $7,133,176 | | Average Total interest-bearing liabilities | $7,384,508 | $7,304,636 | $7,230,326 | | Net interest income | $102,489 | $96,676 | $83,043 | | Net yield on interest-earning assets | 3.46 % | 3.32 % | 2.88 % | | Interest rate spread | 2.62 % | 2.49 % | 1.90 % | [Average Balances and Net Interest Income Analysis - Year-to-Date](index=14&type=section&id=Average%20Balances%20and%20Net%20Interest%20Income%20Analysis%20-%20Year-to-Date) This table provides a year-to-date analysis of average balances for interest-earning assets and liabilities, with interest earned/paid and average rates, for broader net interest income trends Average Balances and Net Interest Income Analysis - Year-to-Date (in thousands) | Metric ($ in thousands) | YTD Sep 30, 2025 | YTD Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Average Loans | $8,198,263 | $8,064,480 | | Average Total interest-earning assets | $11,668,148 | $11,480,411 | | Average Total interest-bearing deposits | $7,241,480 | $6,994,076 | | Average Total interest-bearing liabilities | $7,333,651 | $7,274,446 | | Net interest income | $292,048 | $243,432 | | Net yield on interest-earning assets | 3.34 % | 2.83 % | | Interest rate spread | 2.52 % | 1.87 % | [Non-GAAP Reconciliations & Supplemental Information](index=15&type=section&id=Non-GAAP%20Reconciliations%20%26%20Supplemental%20Information) This section provides reconciliations for non-GAAP financial measures, including tangible common equity, adjusted net income, Hurricane Helene impact, and loan purchase discount accretion [Reconciliation of Common Equity to Tangible Common Equity (TCE)](index=15&type=section&id=Reconciliation%20of%20Common%20Equity%20to%20Tangible%20Common%20Equity%20%28TCE%29) This appendix reconciles total shareholders' common equity to tangible common equity (TCE) for the past five quarters by deducting goodwill and other intangibles Reconciliation of Common Equity to Tangible Common Equity (TCE) (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total shareholders' common equity | $1,603,323 | $1,556,180 | $1,508,176 | $1,445,611 | $1,477,525 | | Less: Goodwill and other intangibles, net of related taxes | $(484,623) | $(485,657) | $(486,749) | $(487,660) | $(489,139) | | Tangible common equity | $1,118,700 | $1,070,523 | $1,021,427 | $957,951 | $988,386 | [Calculation of Tangible Book Value Per Share (TBVPS)](index=15&type=section&id=Calculation%20of%20Tangible%20Book%20Value%20Per%20Share%20%28TBVPS%29) This appendix details the calculation of tangible book value per share (TBVPS) by dividing tangible common equity by common shares outstanding over five quarters Calculation of Tangible Book Value Per Share (TBVPS) (in thousands except per share data) | Metric ($ in thousands except per share data) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Tangible common equity | $1,118,700 | $1,070,523 | $1,021,427 | $957,951 | $988,386 | | Common shares outstanding | 41,465,437 | 41,468,098 | 41,368,828 | 41,347,418 | 41,340,099 | | Tangible book value per common share | $26.98 | $25.82 | $24.69 | $23.17 | $23.91 | [TCE Ratio Calculation](index=15&type=section&id=TCE%20Ratio%20Calculation) This appendix presents the calculation of the tangible common equity to tangible assets (TCE to TA) ratio, a non-GAAP measure, for the past five quarters TCE Ratio Calculation (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Tangible common equity | $1,118,700 | $1,070,523 | $1,021,427 | $957,951 | $988,386 | | Total assets | $12,750,263 | $12,608,265 | $12,436,245 | $12,147,694 | $12,153,430 | | Less: Goodwill and other intangibles, net of related taxes | $(484,623) | $(485,657) | $(486,749) | $(487,660) | $(489,139) | | Tangible assets ("TA") | $12,265,640 | $12,122,608 | $11,949,496 | $11,660,034 | $11,664,291 | | TCE to TA ratio | 9.12 % | 8.83 % | 8.55 % | 8.22 % | 8.47 % | [Adjusted Net Income and Adjusted D-EPS Reconciliation](index=16&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20D-EPS%20Reconciliation) This appendix reconciles GAAP net income and diluted EPS to adjusted figures, isolating the after-tax impact of the securities loss-earnback transaction Adjusted Net Income and Adjusted D-EPS Reconciliation (in thousands) | Metric ($ in thousands) | Q3-2025 | Q2-2025 | Q3-2024 | YTD Sep 30, 2025 | YTD Sep 30, 2024 | | :-------------------------------- | :------ | :------ | :------ | :--------------- | :--------------- | | Net income | $20,363 | $38,566 | $18,680 | $95,335 | $72,664 | | After-tax impact of loss-earnback | $21,433 | $0 | $0 | $21,433 | $0 | | Adjusted net income | $41,796 | $38,566 | $18,680 | $116,768 | $72,664 | | D-EPS | $0.49 | $0.93 | $0.45 | $2.30 | $1.76 | | Adjusted D-EPS | $1.01 | $0.93 | $0.45 | $2.82 | $1.76 | [Return on Average Assets (ROA) and Adjusted ROA Calculation](index=16&type=section&id=Return%20on%20Average%20Assets%20%28ROA%29%20and%20Adjusted%20ROA%20Calculation) This appendix calculates ROA and Adjusted ROA, showing the impact of the after-tax securities loss-earnback transaction on profitability relative to average total assets Return on Average Assets (ROA) and Adjusted ROA Calculation (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income | $20,363 | $38,566 | $36,406 | $3,551 | $18,680 | | After-tax impact of loss-earnback | $21,433 | $0 | $0 | $28,160 | $0 | | Adjusted net income | $41,796 | $38,566 | $36,406 | $31,711 | $18,680 | | Average total assets | $12,640,016 | $12,458,372 | $12,226,810 | $12,243,771 | $12,126,613 | | ROA | 0.64 % | 1.24 % | 1.21 % | 0.12 % | 0.61 % | | Adjusted ROA | 1.31 % | 1.24 % | 1.21 % | 1.03 % | 0.61 % | [Return on Common Equity (ROCE) and Adjusted ROCE Calculation](index=16&type=section&id=Return%20on%20Common%20Equity%20%28ROCE%29%20and%20Adjusted%20ROCE%20Calculation) This appendix calculates ROCE and Adjusted ROCE, illustrating profitability relative to common equity, adjusted for the securities loss-earnback transaction Return on Common Equity (ROCE) and Adjusted ROCE Calculation (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income | $20,363 | $38,566 | $36,406 | $3,551 | $18,680 | | After-tax impact of loss-earnback | $21,433 | $0 | $0 | $28,160 | $0 | | Adjusted net income | $41,796 | $38,566 | $36,406 | $31,711 | $18,680 | | Average common equity | $1,571,104 | $1,530,550 | $1,467,871 | $1,466,181 | $1,445,029 | | ROCE | 5.14 % | 10.11 % | 10.06 % | 0.96 % | 5.14 % | | Adjusted ROCE | 10.55 % | 10.11 % | 10.06 % | 8.60 % | 5.14 % | [Return on Tangible Common Equity (ROTCE) and Adjusted ROTCE Calculation](index=17&type=section&id=Return%20on%20Tangible%20Common%20Equity%20%28ROTCE%29%20and%20Adjusted%20ROTCE%20Calculation) This appendix calculates ROTCE and Adjusted ROTCE, showing profitability relative to tangible common equity, adjusted for intangible amortization and securities loss Return on Tangible Common Equity (ROTCE) and Adjusted ROTCE Calculation (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net Income | $20,363 | $38,566 | $36,406 | $3,551 | $18,680 | | Tangible Net income | $21,429 | $39,689 | $37,565 | $4,746 | $19,920 | | Adjusted tangible net income | $42,862 | $39,689 | $37,565 | $32,906 | $19,920 | | Average TCE | $1,085,773 | $1,044,157 | $980,476 | $977,557 | $955,042 | | ROTCE | 7.83 % | 15.25 % | 15.54 % | 1.93 % | 8.30 % | | Adjusted ROTCE | 15.66 % | 15.25 % | 15.54 % | 13.39 % | 8.30 % | [Impact of Hurricane Helene](index=17&type=section&id=Impact%20of%20Hurricane%20Helene) This appendix details the financial impact of Hurricane Helene, showing a **$4.0 million** benefit from credit losses in Q3 2025 and its after-tax impact Impact of Hurricane Helene (in thousands) | Metric ($ in thousands) | Q3-2025 | Q2-2025 | Q3-2024 | YTD Sep 30, 2025 | YTD Sep 30, 2024 | | :-------------------------------- | :------ | :------ | :------ | :--------------- | :--------------- | | Provision for (benefit from) credit losses | $(4,000) | $(3,500) | $13,000 | $(9,500) | $13,000 | | Total impact | $(4,000) | $(3,500) | $13,396 | $(9,500) | $13,396 | | After-tax impact of Hurricane Helene | $(3,072) | $(2,688) | $10,294 | $(7,296) | $10,294 | | Impact of Hurricane Helene per diluted share | $0.07 | $0.06 | $(0.25) | $0.18 | $(0.25) | - The results for Q3 2025 included a **$4.0 million** reduction to the potential impacts to the allowance for credit losses from Hurricane Helene[12](index=12&type=chunk)[22](index=22&type=chunk) [Loan Purchase Discount Accretion Impact on NIM](index=18&type=section&id=Loan%20Purchase%20Discount%20Accretion%20Impact%20on%20NIM) This appendix explains the impact of loan purchase accounting discount accretion on net interest income and NIM, contributing **4 basis points** to NIM in Q3 2025 Loan Purchase Discount Accretion Impact on NIM (in thousands) | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Interest income - increased by accretion of loan discount on acquired loans | $1,584 | $1,457 | $2,003 | | Total interest income impact | $1,584 | $1,457 | $2,003 | | Total net interest expense impact | $(274) | $(296) | $(367) | | Total impact on net interest income | $1,310 | $1,161 | $1,636 | - Loan purchase accounting discount accretion was **$1.6 million** in Q3 2025, primarily from the GrandSouth Bancorporation acquisition[68](index=68&type=chunk) - Loan discount accretion had a positive impact of **4 basis points** on the Company's NIM and NIM-T/E in Q3 2025[68](index=68&type=chunk)

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Core Points - First Bank extends its partnership with the Carolina Hurricanes for an additional three years, building on the previous season's success which raised nearly $27,000 for the Carolina Hurricanes Foundation [1][2] - The Good Goals program will see First Bank donate $100 for each goal scored by the Hurricanes during the regular season until the 2027-28 season, enhancing community engagement [2][3] - First Bank's CEO emphasizes the alignment of this partnership with the bank's mission to support local communities, while the Carolina Hurricanes Foundation expresses gratitude for the ongoing support [3][4] Company Overview - First Bank, headquartered in Southern Pines, North Carolina, has total assets of approximately $12.4 billion and operates 113 branches in North and South Carolina [5] - The bank has been recognized for its effective response to Hurricane Helene, receiving the Most Effective Recovery Award in the Americas from BCI, and is a finalist for global awards [4][5] Foundation and Team Information - The Carolina Hurricanes Foundation focuses on meeting the health and educational needs of underserved populations in the community [6] - The Carolina Hurricanes, established in 1997, have won six division championships, two Eastern Conference titles, and the 2006 Stanley Cup [7]

Part I. Financial Information [Item 1 - Financial Statements (unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(unaudited)) This section presents First Bancorp's unaudited consolidated financial statements, including Balance Sheets, Statements of Income, Comprehensive Income (Loss), Shareholders' Equity, and Cash Flows, with detailed notes on organization, accounting policies, and financial instruments [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------------- | :------------------------------ | :------------------------------- | :---------------------- | :--------- | | Total assets | 12,608,265 | 12,147,694 | 460,571 | 3.79% | | Total cash and cash equivalents | 711,286 | 507,507 | 203,779 | 40.15% | | Net loans | 8,105,105 | 7,972,104 | 133,001 | 1.67% | | Total deposits | 10,830,380 | 10,530,525 | 299,855 | 2.85% | | Total liabilities | 11,052,085 | 10,702,083 | 350,002 | 3.27% | | Total shareholders' equity | 1,556,180 | 1,445,611 | 110,569 | 7.65% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | :--------- | | Total interest income | 136,741 | 128,822 | 7,919 | 6.15% | | Total interest expense | 40,065 | 47,707 | (7,642) | -16.02% | | Net interest income | 96,676 | 81,115 | 15,561 | 19.18% | | Provision for credit losses | 2,212 | 541 | 1,671 | 308.87% | | Total noninterest income | 14,341 | 14,601 | (260) | -1.78% | | Total noninterest expenses | 58,983 | 58,291 | 692 | 1.19% | | Net income | 38,566 | 28,712 | 9,854 | 34.30% | | Basic EPS | 0.93 | 0.70 | 0.23 | 32.86% | | Diluted EPS | 0.93 | 0.70 | 0.23 | 32.86% | | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | :--------- | | Total interest income | 269,401 | 255,436 | 13,965 | 5.47% | | Total interest expense | 79,842 | 95,047 | (15,205) | -16.00% | | Net interest income | 189,559 | 160,389 | 29,170 | 18.19% | | Provision for credit losses | 3,328 | 1,741 | 1,587 | 91.15% | | Total noninterest income | 27,243 | 27,497 | (254) | -0.92% | | Total noninterest expenses | 116,876 | 117,478 | (602) | -0.51% | | Net income | 74,972 | 53,984 | 20,988 | 38.88% | | Basic EPS | 1.81 | 1.31 | 0.50 | 38.17% | | Diluted EPS | 1.81 | 1.31 | 0.50 | 38.17% | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | | Net income | 38,566 | 28,712 | 9,854 | | Other comprehensive income (loss) | 17,110 | 6,782 | 10,328 | | Comprehensive income (loss) | 55,676 | 35,494 | 20,182 | | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | | Net income | 74,972 | 53,984 | 20,988 | | Other comprehensive income (loss) | 52,511 | (7,161) | 59,672 | | Comprehensive income (loss) | 127,483 | 46,823 | 80,660 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | | Total shareholders' equity | 1,556,180 | 1,445,611 | 110,569 | | Retained earnings | 812,657 | 756,327 | 56,330 | | Accumulated other comprehensive income (loss) | (229,518) | (282,029) | 52,511 | - For the six months ended June 30, 2025, the company declared cash dividends of **$0.45 per common share**, totaling **$18.642 million**; stock repurchases amounted to **$0.992 million**[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------- | | Net cash provided by (used in) operating activities | 98,307 | 67,630 | 30,677 | | Net cash provided by (used in) investing activities | (175,353) | 403,343 | (578,696) | | Net cash provided by (used in) financing activities | 280,825 | (100,416) | 381,241 | | Increase (decrease) in cash and cash equivalents | 203,779 | 370,557 | (166,778) | | Cash and cash equivalents, end of period | 711,286 | 608,412 | 102,874 | - Cash paid for interest decreased by **$14.612 million (15.49%)** from **$94.342 million** in H1 2024 to **$79.730 million** in H1 2025[25](index=25&type=chunk) - Cash paid for income taxes decreased by **$5.546 million (38.56%)** from **$14.382 million** in H1 2024 to **$8.836 million** in H1 2025[25](index=25&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Organization and Basis of Presentation](index=11&type=section&id=Note%201.%20Organization%20and%20Basis%20of%20Presentation) - The consolidated financial statements include First Bancorp, its wholly-owned subsidiary First Bank, and First Bank's subsidiaries Magnolia Financial, Inc. and First Troy SPE, LLC, with SBA Complete, Inc. becoming inactive in Q2 2024[28](index=28&type=chunk)[29](index=29&type=chunk) - The company did not adopt any new accounting standards in the first six months of 2025, with ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) pending adoption and no significant impact expected[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 2. Securities](index=12&type=section&id=Note%202.%20Securities) | Security Type | Amortized Cost (June 30, 2025) ($ thousands) | Fair Value (June 30, 2025) ($ thousands) | Unrealized Losses (June 30, 2025) ($ thousands) | | :-------------------------- | :----------------------------- | :------------------------- | :-------------------------------- | | Securities available for sale | 2,443,724 | 2,144,831 | (303,483) | | Securities held to maturity | 516,405 | 431,420 | (84,987) | | Total unrealized loss position | 2,960,129 | 2,576,251 | (388,470) | - As of June 30, 2025, **548 out of 589 securities** were in an unrealized loss position, primarily due to interest rate factors rather than credit quality concerns, with no intent to sell before recovery of amortized cost[41](index=41&type=chunk)[42](index=42&type=chunk) - No sales of investment securities occurred during the three and six months ended June 30, 2025, contrasting with **$142.7 million** (Q2 2024) and **$148.0 million** (H1 2024) in proceeds from sales of securities and Visa Class B shares, which generated net losses of **$0.2 million** and **$1.2 million**, respectively, in the comparable 2024 periods[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 3. Loans, Allowance for Credit Losses, and Asset Quality Information](index=14&type=section&id=Note%203.%20Loans,%20Allowance%20for%20Credit%20Losses,%20and%20Asset%20Quality%20Information) | Loan Category | June 30, 2025 (Amount in thousands) | June 30, 2025 (Percentage) | December 31, 2024 (Amount in thousands) | December 31, 2024 (Percentage) | | :------------------------------------ | :---------------------------------- | :------------------------- | :------------------------------------ | :------------------------- | | Commercial and industrial | 911,227 | 11% | 919,690 | 11% | | Construction, development & other land loans | 633,529 | 8% | 647,167 | 8% | | Commercial real estate - owner occupied | 1,254,596 | 15% | 1,248,812 | 16% | | Commercial real estate - non owner occupied | 2,758,629 | 34% | 2,625,554 | 33% | | Multi-family real estate | 509,419 | 6% | 506,407 | 6% | | Residential 1-4 family real estate | 1,731,397 | 21% | 1,729,322 | 21% | | Home equity loans/lines of credit | 355,876 | 4% | 345,883 | 4% | | Consumer loans | 70,137 | 1% | 70,653 | 1% | | Total loans | 8,225,650 | 100% | 8,094,676 | 100% | | Nonperforming Asset (NPA) | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Nonaccrual loans | 34,625 | 31,779 | | Foreclosed properties | 1,218 | 4,965 | | Total nonperforming assets | 35,843 | 36,744 | | Allowance for Credit Losses (ACL) Activity | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------------- | :------------------------------------ | :------------------------------------ | | Beginning balance | 122,572 | 109,853 | | Charge-offs | (5,874) | (4,772) | | Recoveries | 1,379 | 1,727 | | Provisions / (Reversals) | 2,468 | 3,250 | | Ending balance | 120,545 | 110,058 | - Loans to borrowers in areas impacted by Hurricane Helene totaled **$703 million** as of June 30, 2025, a decrease from **$755 million** at the time of the storm, with an ACL of **$7.5 million** contributing **10 basis points** to the overall ACL as a percent of total loans (1.47%)[75](index=75&type=chunk) [Note 4. Goodwill, Other Intangible Assets and Servicing Assets](index=25&type=section&id=Note%204.%20Goodwill,%20Other%20Intangible%20Assets%20and%20Servicing%20Assets) | Intangible Asset | Net Amount (June 30, 2025) ($ thousands) | Net Amount (December 31, 2024) ($ thousands) | | :------------------------- | :---------------------------------- | :------------------------------------ | | Customer lists | 53 | 213 | | Core deposit intangibles | 19,867 | 22,691 | | Total amortizable intangible assets | 19,920 | 22,904 | | Goodwill | 478,750 | 478,750 | - Amortization expense for intangible assets was **$1.5 million** for Q2 2025 (vs. **$1.7 million** in Q2 2024) and **$3.0 million** for H1 2025 (vs. **$3.4 million** in H1 2024), with no goodwill impairment identified in 2025[80](index=80&type=chunk)[81](index=81&type=chunk) - SBA guaranteed servicing fee income was **$0.7 million** for Q2 2025 (vs. **$0.8 million** in Q2 2024) and **$1.4 million** for H1 2025 (vs. **$1.5 million** in H1 2024), with the net balance of SBA servicing assets at **$2.029 million** as of June 30, 2025[83](index=83&type=chunk)[84](index=84&type=chunk) [Note 5. Borrowings](index=26&type=section&id=Note%205.%20Borrowings) | Borrowing Type | Balance (June 30, 2025) ($ thousands) | Interest Rate (June 30, 2025) | Balance (December 31, 2024) ($ thousands) | Interest Rate (December 31, 2024) | | :-------------------------- | :--------------------------------- | :---------------------------- | :----------------------------------- | :---------------------------- | | FHLB Principal Reducing Credit | 778 | 0.00% to 1.00% fixed | 802 | 0.00% to 1.00% fixed | | Trust Preferred Securities | 77,024 | 5.95% to 7.29% adjustable | 77,024 | 6.01% to 7.61% adjustable | | Subordinated Debentures | 18,000 | 4.38% fixed (until 11/15/25) | 18,000 | 4.38% fixed (until 11/15/25) | | Total borrowings (net of discount) | 92,237 | 6.09% (weighted average) | 91,876 | 6.22% (weighted average) | [Note 6. Leases](index=27&type=section&id=Note%206.%20Leases) - The company leases **13 bank branch offices** (land and buildings) and **10 branch offices** (land only), along with other office space, all as operating leases with maturity dates ranging from April 2026 to May 2076, including extension options[87](index=87&type=chunk) | Lease Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Right-of-use assets | 14,000 | 13,800 | | Lease liabilities | 14,900 | 14,600 | | Weighted average remaining life of lease term | 20.7 years | 21.2 years | | Weighted average discount rates | 3.40% | 3.34% | | Total operating lease expenses (H1) | 1,300 | 1,200 | [Note 7. Fair Value of Financial Instruments](index=28&type=section&id=Note%207.%20Fair%20Value%20of%20Financial%20Instruments) - The company categorizes financial instruments measured at fair value into Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs), and Level 3 (significant unobservable inputs)[93](index=93&type=chunk)[94](index=94&type=chunk) | Financial Instrument (Recurring) | Fair Value (June 30, 2025) ($ thousands) | Level 1 ($ thousands) | Level 2 ($ thousands) | Level 3 ($ thousands) | | :----------------------------------- | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | | Securities available for sale | 2,144,831 | 0 | 2,142,396 | 2,435 | | Derivative financial assets | 2,714 | 0 | 2,714 | 0 | | Presold mortgages in process of settlement | 8,928 | 0 | 8,928 | 0 | | Derivative financial liabilities | 2,752 | 0 | 2,752 | 0 | | Financial Instrument (Nonrecurring) | Fair Value (June 30, 2025) ($ thousands) | Level 1 ($ thousands) | Level 2 ($ thousands) | Level 3 ($ thousands) | | :------------------------------------ | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | | Individually evaluated loans | 5,649 | 0 | 0 | 5,649 | - Valuation methodologies include matrix pricing for most Level 2 securities and discounted cash flow or asset approach for individually evaluated (Level 3) loans, primarily based on real estate collateral appraisals[96](index=96&type=chunk)[97](index=97&type=chunk)[100](index=100&type=chunk) [Note 8. Stock-Based Compensation](index=31&type=section&id=Note%208.%20Stock-Based%20Compensation) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Stock-based compensation expense | 1,100 | 900 | | Income tax benefits | 246 | 218 | | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Stock-based compensation expense | 2,100 | 1,600 | | Income tax benefits | 484 | 371 | - As of June 30, 2025, the First Bancorp 2024 Equity Plan had **1,831,944 shares available for grant**, granting restricted stock to employees and unrestricted stock to non-employee directors[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk) - Total unrecognized compensation expense for restricted stock awards was **$4.5 million** at June 30, 2025, with a weighted average remaining term of **2.5 years**[109](index=109&type=chunk) [Note 9. Earnings Per Share](index=32&type=section&id=Note%209.%20Earnings%20Per%20Share) | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Basic EPS | 0.93 | 0.70 | | Diluted EPS | 0.93 | 0.70 | | Weighted average common shares outstanding (Basic) | 41,168,260 | 40,879,684 | | Weighted average common shares outstanding (Diluted) | 41,441,393 | 41,262,091 | | EPS Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Basic EPS | 1.81 | 1.31 | | Diluted EPS | 1.81 | 1.31 | | Weighted average common shares outstanding (Basic) | 41,149,623 | 40,861,775 | | Weighted average common shares outstanding (Diluted) | 41,424,063 | 41,256,081 | [Note 10. Accumulated Other Comprehensive Income (Loss)](index=33&type=section&id=Note%2010.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) | Component of AOCI | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Net unrealized loss on securities available for sale | (229,603) | (282,114) | | Net postretirement plans asset (liability) | 85 | 85 | | Total accumulated other comprehensive income (loss) | (229,518) | (282,029) | - For the six months ended June 30, 2025, net current period other comprehensive income was **$52.511 million**, a significant improvement from a loss of **($7.161) million** in the prior year period[112](index=112&type=chunk) [Note 11. Revenue from Contracts with Customers](index=34&type=section&id=Note%2011.%20Revenue%20from%20Contracts%20with%20Customers) | Noninterest Income Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Noninterest income (in-scope of ASC 606) | 9,825 | 9,580 | | Noninterest income (out-of-scope of ASC 606) | 4,516 | 5,021 | | Total noninterest income | 14,341 | 14,601 | | Noninterest Income Category | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Noninterest income (in-scope of ASC 606) | 19,452 | 19,187 | | Noninterest income (out-of-scope of ASC 606) | 7,791 | 8,310 | | Total noninterest income | 27,243 | 27,497 | [Note 12. Segment Reporting](index=35&type=section&id=Note%2012.%20Segment%20Reporting) - First Bancorp operates as a single operating segment focused on banking operations, including loan and deposit products and financial advice, with management assessing performance and allocating resources based on pre-tax net income[115](index=115&type=chunk)[117](index=117&type=chunk) [Note 13. Subsequent Events](index=35&type=section&id=Note%2013.%20Subsequent%20Events) - In Q3 2025, the company executed a securities loss earnback transaction, selling **$194.3 million** of AFS securities at a **$27.9 million** loss and reinvesting **$167.4 million** in AFS securities bearing **4.79%**[120](index=120&type=chunk) [Item 2 – Management's Discussion and Analysis of Consolidated Results of Operations and Financial Condition](index=35&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Consolidated%20Results%20of%20Operations%20and%20Financial%20Condition) This section provides management's perspective on the company's financial performance and condition for the three and six months ended June 30, 2025, highlighting key drivers of net income, balance sheet changes, and critical accounting estimates [Overview and Highlights](index=36&type=section&id=Overview%20and%20Highlights) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------------------- | :------ | :------ | :--------- | | Net income ($ millions) | $38.6 | $28.7 | 34.5% | | Diluted EPS | $0.93 | $0.70 | 32.9% | | Adjusted net income ($ millions) | $35.9 | N/A | N/A | | Adjusted diluted EPS | $0.87 | N/A | N/A | | Net interest income ($ millions) | $96.7 | $81.1 | 19.2% | | Net interest margin (NIM) | 3.32% | 2.84% | +48 bps | | Total assets ($ billions) | $12.6 | N/A | 3.8% (vs. Dec 31, 2024) | | Total loans ($ billions) | $8.2 | N/A | 1.6% (vs. Dec 31, 2024) | | Total deposits ($ billions) | $10.8 | N/A | 2.85% (vs. Dec 31, 2024) | | Nonperforming assets to total assets | 0.28% | N/A | -2 bps (vs. Dec 31, 2024) | | On-balance sheet liquidity ratio | 20.0% | N/A | +2.4% (vs. Dec 31, 2024) | - The increase in net interest income was driven by a lower cost of funds and higher yields on interest-earning assets, partly due to Federal Reserve rate cuts in late 2024 and the securities loss-earnback transaction[122](index=122&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Capital ratios remained strong, with Common Equity Tier 1 ratio at **14.64%**, Tier 1 risk-based capital ratio at **15.45%**, and total risk-based capital ratio at **16.90%** as of June 30, 2025, all increasing from June 30, 2024[125](index=125&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) - The most subjective accounting areas are the determination of the Allowance for Credit Losses (ACL) and Allowance for Unfunded Commitments, as well as business combinations, related fair value measurements, and goodwill determination[131](index=131&type=chunk) [Current Accounting Matters](index=38&type=section&id=Current%20Accounting%20Matters) - Refer to Note 1 of the consolidated financial statements for information on recently announced or adopted accounting standards[133](index=133&type=chunk) [Results of Operations](index=39&type=section&id=RESULTS%20OF%20OPERATIONS) [Net Interest Income](index=39&type=section&id=Net%20Interest%20Income) - Net interest income for Q2 2025 increased by **$15.6 million (19.2%)** to **$96.7 million**, driven by higher yields on interest-earning assets and lower cost of funds; for H1 2025, net interest income increased by **$29.2 million (18.2%)** to **$189.6 million**[136](index=136&type=chunk)[144](index=144&type=chunk) - Net Interest Margin (NIM) improved by **48 basis points** to **3.32%** in Q2 2025 (from **2.84%** in Q2 2024) and to **3.29%** in H1 2025 (from **2.81%** in H1 2024), influenced by Federal Reserve rate cuts in late 2024, increased loan yields, and the securities loss-earnback transaction[139](index=139&type=chunk)[141](index=141&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[152](index=152&type=chunk) - Average interest-earning assets increased by **$216.6 million (1.9%)** in Q2 2025 YoY, with average loans and taxable securities growing by **$116.8 million** and **$105.7 million**, respectively; average loan volumes for H1 2025 were **$60.6 million** higher than H1 2024[137](index=137&type=chunk)[152](index=152&type=chunk) - The cost of interest-bearing deposits decreased by **40 basis points** in Q2 2025 YoY, primarily due to a **$3.0 million** decrease in Other time deposits and a **$2.5 million** decrease in Money market deposits; interest expense on borrowings decreased by **$1.3 million** in Q2 2025 YoY, largely due to the payoff of Federal Reserve Bank Term Funding Program borrowings[138](index=138&type=chunk)[145](index=145&type=chunk) [Provision for Credit Losses](index=44&type=section&id=Provision%20for%20Credit%20Losses) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Provision for credit losses | 2,200 | 500 | | Provision for loan losses (incl. Hurricane Helene reversal) | 1,100 | 1,500 | | Provision for unfunded commitments | 1,100 | (900) | | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Provision for credit losses | 3,300 | 1,700 | | Provision for unfunded commitments | 900 | (1,500) | - The Q2 2025 provision for loan losses included a **$3.5 million reversal** specifically attributed to Hurricane Helene; for H1 2025, the provision for credit losses was significantly impacted by loan growth and **$4.5 million** in net charge-offs, partially offset by a **$5.5 million** reduction in the incremental provision related to Hurricane Helene[129](index=129&type=chunk)[158](index=158&type=chunk) - The incremental reserve related to Hurricane Helene added **0.10%** to the ACL as of June 30, 2025, for approximately **$703 million** of loans in the impacted path[160](index=160&type=chunk) [Noninterest Income](index=45&type=section&id=Noninterest%20Income) | Noninterest Income Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Total noninterest income | 14,341 | 14,601 | | SBA loan sale gains | 151 | 1,336 | | Other service charges and fees - other | 4,007 | 2,955 | | Noninterest Income Category | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Total noninterest income | 27,243 | 27,497 | | SBA loan sale gains | 203 | 2,231 | | Other income, net | 809 | 1,570 | | Other service charges and fees - other | 7,563 | 6,211 | | Securities losses, net | 0 | (1,161) | - Noninterest income for Q2 2025 decreased slightly by **$0.26 million** YoY, primarily due to a **$1.2 million** decrease in SBA loan sale gains, partially offset by a **$1.1 million** increase in other service charges; for H1 2025, noninterest income decreased by **$0.254 million** YoY, mainly from lower SBA loan sale gains and other income, partially offset by increased service charges and the absence of securities losses seen in H1 2024[162](index=162&type=chunk) [Noninterest Expenses](index=45&type=section&id=Noninterest%20Expenses) | Noninterest Expense Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Total noninterest expenses | 58,983 | 58,291 | | Total personnel expense | 35,192 | 34,512 | | Noninterest Expense Category | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Total noninterest expenses | 116,876 | 117,478 | | Total personnel expense | 69,948 | 68,423 | | FDIC insurance costs | 2,822 | 3,657 | | Professional fees | 2,474 | 3,215 | - Total noninterest expenses increased by **$0.7 million (1.2%)** in Q2 2025 YoY, primarily due to a **$0.7 million** increase in total personnel costs; for H1 2025, total noninterest expenses decreased by **$0.6 million** YoY, driven by **$0.8 million** lower FDIC insurance costs and **$0.7 million** lower professional fees, partially offset by a **$1.5 million** increase in personnel costs[165](index=165&type=chunk)[166](index=166&type=chunk) [Income Taxes](index=46&type=section&id=Income%20Taxes) | Metric | Three Months Ended June 30, 2025 ($ millions) | Three Months Ended June 30, 2024 ($ millions) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Income tax expense | $11.3 | $8.2 | | Effective tax rate | 22.6% | 22.2% | | Metric | Six Months Ended June 30, 2025 ($ millions) | Six Months Ended June 30, 2024 ($ millions) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | | Income tax expense | $21.6 | $14.7 | | Effective tax rate | 22.4% | 21.4% | [Financial Condition](index=46&type=section&id=FINANCIAL%20CONDITION) [Total Assets and Loans](index=46&type=section&id=Total%20Assets%20and%20Loans) - Total assets increased by **$460.6 million (3.8%)** to **$12.6 billion** at June 30, 2025, primarily due to higher interest-bearing cash, AFS securities, and loans[170](index=170&type=chunk) - Total loans increased by **$131.0 million (1.6%)** to **$8.2 billion** at June 30, 2025, with the loan portfolio mix remaining stable and no notable concentrations in geographies or industries, including office or hospitality categories[171](index=171&type=chunk) [Investment Securities](index=46&type=section&id=Investment%20Securities) - Total investment securities increased by **$98.2 million** to **$2.7 billion** at June 30, 2025, with the company purchasing **$137.0 million** in investment securities during H1 2025 and no sales[172](index=172&type=chunk) - The unrealized loss on AFS securities totaled **$298.9 million** at June 30, 2025, determined to be temporary and primarily due to interest rate factors, not credit quality concerns[174](index=174&type=chunk)[175](index=175&type=chunk) [Deposits](index=48&type=section&id=Deposits) - Total deposits increased by **$299.9 million (2.8%)** to **$10.8 billion** at June 30, 2025, driven by organic growth in noninterest-bearing checking and money market accounts[175](index=175&type=chunk)[176](index=176&type=chunk) | Deposit Type | June 30, 2025 ($ thousands) | Percentage | December 31, 2024 ($ thousands) | Percentage | | :----------------------------------- | :------------------------------ | :--------- | :------------------------------- | :--------- | | Noninterest-bearing checking accounts | 3,542,626 | 33% | 3,367,624 | 32% | | Interest-bearing checking accounts | 1,443,010 | 13% | 1,398,395 | 13% | | Money market accounts | 4,446,485 | 41% | 4,285,405 | 41% | | Savings accounts | 536,247 | 5% | 542,133 | 5% | | Other time deposits | 514,865 | 5% | 566,514 | 5% | | Time deposits >$250,000 | 337,382 | 3% | 360,854 | 4% | | Total customer deposits | 10,820,615 | 100% | 10,520,925 | 100% | | Brokered deposits | 9,765 | 0% | 9,600 | 0% | | Total deposits | 10,830,380 | 100% | 10,530,525 | 100% | - As of June 30, 2025, **59.7% ($6.5 billion)** of total deposits were estimated insured, and an additional **$707.0 million** were collateralized, bringing the total insured or collateralized deposits to approximately **66.3%**[177](index=177&type=chunk) [Nonperforming Assets](index=48&type=section&id=Nonperforming%20Assets) | NPA Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Total nonperforming assets | 35,843 | 36,744 | | Nonaccrual loans | 34,625 | 31,779 | | Foreclosed real estate | 1,218 | 4,965 | | Nonperforming loans to total loans | 0.42% | 0.39% | | Nonperforming assets to total assets | 0.28% | 0.30% | | Allowance for credit losses to nonperforming loans | 348.14% | 385.70% | - Total NPAs decreased to **$35.8 million** at June 30, 2025, primarily due to a **$3.7 million** decrease in foreclosed real estate, partially offset by a **$2.8 million** increase in nonaccrual loans[178](index=178&type=chunk) - Commercial and industrial loans represent the largest category of nonaccrual loans (**$10.6 million**, or **30.6%**), followed by Commercial real estate - owner occupied (**$10.0 million**, or **28.9%**); nonaccrual SBA loans totaled **$17.6 million**, with **$7.3 million** guaranteed by the SBA[179](index=179&type=chunk) [Allowance for Credit Losses, Allowance for Unfunded Commitments, and Loan Loss Experience](index=49&type=section&id=Allowance%20for%20Credit%20Losses,%20Allowance%20for%20Unfunded%20Commitments,%20and%20Loan%20Loss%20Experience) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Allowance for credit losses (ACL) | 120,545 | 122,572 | | Net charge-offs (H1) | (4,495) | (6,032) | | Net charge-offs as a percent of average loans (annualized) | 0.11% | 0.07% | | ACL as a percent of loans | 1.47% | 1.51% | | Allowance for unfunded commitments | 9,900 | 9,100 | - The ACL decreased to **$120.5 million** at June 30, 2025, largely due to releases of **$3.5 million** (Q2) and **$5.5 million** (H1) of credit reserves related to Hurricane Helene; the ACL as a percent of loans was **1.47%**, with **10 basis points** attributable to Hurricane Helene[181](index=181&type=chunk)[182](index=182&type=chunk) - The allowance for unfunded commitments increased to **$9.9 million** at June 30, 2025, driven by an increase in available lines of credit, partially offset by a reduction in reserve rates[185](index=185&type=chunk) [Liquidity, Commitments, and Contingencies](index=50&type=section&id=Liquidity,%20Commitments,%20and%20Contingencies) - The company's on-balance sheet liquidity ratio was **20.0%** at June 30, 2025 (up from **17.6%** at Dec 31, 2024); total liquidity ratio, including **$2.3 billion** in available lines of credit, was **36.1%**[187](index=187&type=chunk) - Available borrowing capacity includes a **$1.3 billion** FHLB line of credit, **$265.0 million** in federal funds lines of credit, and an approximately **$761.1 million** Federal Reserve discount window line of credit[192](index=192&type=chunk) [Off-Balance Sheet Arrangements and Derivative Financial Instruments](index=51&type=section&id=Off-Balance%20Sheet%20Arrangements%20and%20Derivative%20Financial%20Instruments) - The company has no significant off-balance sheet arrangements other than letters of credit and repayment guarantees for trust preferred securities and subordinated debentures[189](index=189&type=chunk) - Derivative financial instruments consist entirely of customer back-to-back interest rate swaps, which are not designated as hedges, with changes in fair value recognized directly in earnings[191](index=191&type=chunk) [Capital Resources](index=52&type=section&id=Capital%20Resources) | Capital Ratio | June 30, 2025 | December 31, 2024 | Minimum Required | | :----------------------------------- | :------------ | :---------------- | :--------------- | | Common equity Tier 1 ratio | 14.64% | 14.35% | 7.00% | | Tier I capital ratio | 15.45% | 15.17% | 8.50% | | Total risk-based capital ratio | 16.90% | 16.63% | 10.50% | | Tier 1 capital to quarterly average total assets (Leverage ratio) | 11.23% | 11.15% | 4.00% | - The company was well-capitalized at June 30, 2025, with all capital ratios increasing from year-end 2024 due to retained earnings and shifts to lower risk-weighted assets[195](index=195&type=chunk) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Tangible Common Equity (TCE) | 1,070,523 | 957,951 | | Tangible Assets | 12,122,608 | 11,660,034 | | TCE divided by Tangible Assets | 8.83% | 8.22% | [Stock Repurchase Plans](index=54&type=section&id=Stock%20Repurchase%20Plans) - The Board of Directors authorized a **$40 million** common stock repurchase plan in January 2024, renewed in January 2025; as of June 30, 2025, **$39.0 million** remained available under the program, with no repurchases made during Q2 2025[198](index=198&type=chunk)[199](index=199&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risk, primarily interest rate risk, and the methodologies used to monitor and manage these risks, including earnings and economic value simulation analyses [Market Risk](index=54&type=section&id=Market%20Risk) - The company's market risk primarily stems from interest rate risk inherent in lending and deposit-taking activities, with no trading assets or activities[200](index=200&type=chunk) [Interest Rate Risk](index=54&type=section&id=Interest%20Rate%20Risk) - Interest rate risk is the most significant market risk, affecting net interest income due to mismatches in asset and liability repricing characteristics, with the company aiming to maximize net interest income while minimizing adverse impacts from interest rate changes[201](index=201&type=chunk)[203](index=203&type=chunk) - Interest rate risk is monitored using earnings simulation modeling and economic value simulation (net present value estimation) to measure changes across various hypothetical interest rate scenarios[204](index=204&type=chunk) [Earnings Simulation Analysis](index=54&type=section&id=Earnings%20Simulation%20Analysis) - As of June 30, 2025, the company's net interest income sensitivity indicated an asset-sensitive position over a one-year period, with immediate parallel rate shifts resulting in a **4.7% increase** in a +200 bps scenario and a **3.9% decrease** in a -200 bps scenario[208](index=208&type=chunk) [Economic Value Simulation](index=55&type=section&id=Economic%20Value%20Simulation) - As of June 30, 2025, the company's Economic Value of Equity (EVE) generally declines in rising rate scenarios (**-3.2%** in +100 bps, **-10.5%** in +200 bps) and improves in falling rate scenarios (**+3.1%** in -100 bps, **+2.7%** in -200 bps), driven by the composition of fixed-rate loans and mortgage-backed securities versus variable-rate deposits[211](index=211&type=chunk) [Inflation](index=55&type=section&id=Inflation) - Changes in interest rates generally affect the company's financial condition more than inflation, which primarily impacts operating costs, and the company reviews pricing and costs to mitigate its effects[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 4 – Controls and Procedures](index=54&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management, including the CEO and CFO, assessed the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, concluding they were effective, with no material changes to internal control over financial reporting occurring during the period - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, ensuring timely disclosure decisions for material information[216](index=216&type=chunk) - No material changes to internal control over financial reporting occurred during or subsequent to the period covered by the report[216](index=216&type=chunk) Part II. Other Information [Item 1 – Legal Proceedings](index=54&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is not involved in any pending legal proceedings that management believes are material to its consolidated financial position, with reserves established for probable and determinable losses - No material legal proceedings are pending or threatened against the company or its subsidiaries[217](index=217&type=chunk) [Item 1A – Risk Factors](index=54&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to the risk factors from the 2024 Annual Report on Form 10-K[218](index=218&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section refers to the Stock Repurchase Plans discussed in Management's Discussion and Analysis - Information regarding issuer purchases of equity securities is incorporated by reference from the Stock Repurchase Plans section of Management's Discussion and Analysis[219](index=219&type=chunk) [Item 5 - Other Information](index=56&type=section&id=Item%205%20-%20Other%20Information) No Section 16 reporting persons (directors and certain officers) maintained, adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1(c) arrangement during the quarter ended June 30, 2025 - No Section 16 reporting persons engaged in Rule 10b5-1 trading arrangements or non-Rule 10b5-1(c) arrangements during Q2 2025[220](index=220&type=chunk)[221](index=221&type=chunk) [Item 6 – Exhibits](index=55&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists all exhibits filed with the report, including articles of incorporation, bylaws, stock certificates, officer certifications, and XBRL financial information - Exhibits include Articles of Incorporation, Amended and Restated Bylaws, Form of Common Stock Certificate, CEO and CFO certifications (Sections 302(a) and 906 of Sarbanes-Oxley Act), and XBRL financial information[224](index=224&type=chunk)