Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company and Industry Summary - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1]

The First Bancorp, Inc. ( FNLC ) is the holding company of the First National Bank in Maine. The bank’s share price has been pretty flat since my previous article was published. Although the net income increased substantially, the total amountThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ide ...

Group 1 - The core focus of the research service is on identifying Asia-listed stocks that exhibit a significant gap between their market price and intrinsic value, particularly emphasizing deep value balance sheet bargains and wide moat stocks [1][2] - The service aims to provide value investors with investment opportunities in the Asian equity market, with a specific emphasis on the Hong Kong market [2] - The analyst views the latest corporate moves favorably, noting that the stock is currently valued at a substantial discount compared to other trading companies in Japan [1]

Core Insights - First Bank has appointed Bridget Welborn as the new Chief Risk Officer and Head of Legal, bringing over 15 years of experience in legal, risk, privacy, and regulatory compliance [1][2][3] - Welborn's previous roles include Senior Counsel at Wyrick Robbins and Chief Privacy & Risk Officer at State Employees' Credit Union, which has over $50 billion in assets [2][3] - The CEO of First Bank, Adam Currie, expressed confidence in Welborn's strategic vision and expertise in risk management as essential for the bank's growth and innovation [3][4] Company Overview - First Bank is a community-focused bank headquartered in Southern Pines, North Carolina, with total assets of approximately $12.8 billion and operates 113 branches in North Carolina and South Carolina [5] - The bank is a subsidiary of First Bancorp, whose common stock is traded on the NASDAQ under the symbol "FBNC" [5] Leadership Transition - Peter Seitz, the current Executive Vice President of Enterprise Risk, will collaborate with Welborn until his retirement at the end of January 2026 [4] - Seitz highlighted Welborn's experience in managing risks in a growing bank as a key factor for her leadership role [4]

Financial Performance - Net income for Q3 2025 was $20.4 million, or $0.49 diluted EPS, compared to $18.7 million, or $0.45 diluted EPS in Q3 2024, reflecting a 9.1% increase in net income year-over-year [124]. - Adjusted net income for Q3 2025, excluding a $27.9 million securities loss, was $41.8 million, or $1.01 per diluted share [124]. - Noninterest income for the nine months ended September 30, 2025, totaled $14.4 million, a decrease of $26.7 million from the prior year, primarily due to a $27.9 million securities loss [130]. - Total noninterest income for the three months ended September 30, 2025, was negative $12.9 million, primarily due to a $27.9 million loss on securities [165]. - Total noninterest income for the nine months ended September 30, 2025, was $42.3 million, slightly up from $42.2 million in 2024, despite a $2.3 million decrease in SBA loan sale gains [166]. Interest Income and Margin - Net interest income for Q3 2025 was $102.5 million, a 23.4% increase from $83.0 million in Q3 2024, driven by higher yields on interest-earning assets and lower cost of funds [128]. - The net interest margin (NIM) increased to 3.46% in Q3 2025, up 58 basis points from 2.88% in Q3 2024 [128]. - Net interest income for the nine months ended September 30, 2025, was $292.0 million, an increase of $48.6 million, or 20.0%, from the same period in 2024 [144]. - The net interest margin (NIM) increased by 51 basis points to 3.34% for the nine months ended September 30, 2025, compared to 2.83% for the same period in 2024 [153]. - The tax-equivalent net interest income for Q3 2025 was $102.8 million, compared to $83.8 million in Q3 2024 [143]. Loan and Deposit Growth - Total loans amounted to $8.4 billion at September 30, 2025, reflecting a 4.0% increase from December 31, 2024 [134]. - Average loan volumes for Q3 2025 were $8.3 billion, an increase of $277.9 million compared to Q3 2024 [145]. - Total deposits were $10.9 billion at September 30, 2025, an increase of 3.33% from December 31, 2024 [134]. - Total deposits reached $10.9 billion at September 30, 2025, an increase of $350.6 million, or 3.3%, from December 31, 2024 [179]. Credit Quality and Losses - The provision for credit losses for Q3 2025 was $3.4 million, influenced by loan growth and net charge-offs of $3.0 million [128]. - The allowance for credit losses was $120.9 million at September 30, 2025, down from $122.6 million at December 31, 2024, with the allowance as a percentage of loans at 1.44% [186]. - Nonperforming assets increased to $39.0 million at September 30, 2025, from $36.7 million at December 31, 2024, primarily due to a $5.5 million increase in nonaccrual loans [182]. - The provision for credit losses was $6.8 million for the nine months ended September 30, 2025, down from $15.9 million in the same period of 2024 [159]. Securities and Investments - The company recorded a securities loss of $27.9 million during a transaction in the third quarter of 2025, involving the sale of $194.3 million of securities [176]. - The unrealized loss on AFS securities totaled $251.8 million at September 30, 2025, attributed to interest rate factors rather than credit quality concerns [178]. - Total investment securities were $2.7 billion at September 30, 2025, an increase of $117.3 million from December 31, 2024 [176]. Capital and Liquidity - The Company’s Tier 1 capital ratio was 15.14% at September 30, 2025, slightly down from 15.17% at the end of 2024 [200]. - The tangible common equity (TCE) ratio improved to 9.12% at September 30, 2025, compared to 8.22% at December 31, 2024 [201]. - The overall on-balance sheet liquidity ratio was 18.2% at September 30, 2025, compared to 17.6% at December 31, 2024 [192]. - The total liquidity ratio, including $2.5 billion in available lines of credit, was 35.3% as of September 30, 2025 [192]. Interest Rate Risk Management - The company aims to maximize net interest income while managing interest rate risk to minimize adverse impacts from rate changes [208]. - Interest rate risk is monitored using earnings simulation modeling and economic value simulation, which provide a comprehensive view of the company's interest rate risk exposure [209]. - The company proactively manages the rates earned on assets and the rates paid on liabilities to mitigate interest rate risk [213]. - Assumptions in the net interest income sensitivity analyses are inherently uncertain, and actual results may differ from simulated results [214].

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].

Group 1 - The article does not provide any specific content related to a company or industry [1]

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)