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)

Group 1 - First Bancorp has a market capitalization of $1.98 billion, indicating it is a decent-sized bank [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers of Crude Value Insights have access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement [2]

Core Insights - First Bancorp (FBNC) reported revenue of $111.02 million for the quarter ended June 2025, marking a year-over-year increase of 16% and exceeding the Zacks Consensus Estimate of $108.33 million by 2.48% [1] - The company's EPS for the same period was $0.93, up from $0.70 a year ago, and also surpassed the consensus EPS estimate of $0.88 by 5.68% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.3%, higher than the estimated 2.9% by analysts [4] - Net Charge-offs remained stable at 0.1%, matching the average estimate [4] - Average Interest-Earning Assets totaled $11.68 billion, slightly below the average estimate of $11.7 billion [4] - Total Non-Interest Income was $14.34 million, exceeding the average estimate of $13.94 million [4] - Bank-Owned Life Insurance Income was $1.22 million, above the estimated $1.12 million [4] - Other service charges, commissions, and fees reached $6.6 million, surpassing the average estimate of $5.86 million [4] - Commissions from sales of insurance and financial products were $1.39 million, exceeding the estimated $1.15 million [4] - Service charges on deposit accounts were $3.98 million, slightly below the average estimate of $4.18 million [4] - Net Interest Income was reported at $96.68 million, above the average estimate of $93.78 million [4] - Fees from presold mortgage loans were $0.32 million, lower than the average estimate of $0.84 million [4] Stock Performance - Shares of First Bancorp have returned +11.2% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - First Bancorp reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and up from $0.70 per share a year ago, representing an earnings surprise of +5.68% [1] - The company posted revenues of $111.02 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.48%, compared to year-ago revenues of $95.72 million [2] - Over the last four quarters, First Bancorp has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - First Bancorp shares have increased approximately 6.6% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.91 on revenues of $110.83 million, and $3.50 on revenues of $436.57 million for the current fiscal year [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the top 14% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

News Release For Immediate Release: For More Information, Contact: July 23, 2025 Hillary Kestler 704-644-4137 First Bancorp Reports Second Quarter Results | Second Quarter 2025 | Financial | Data | | Second Quarter 2025 Highlights | | --- | --- | --- | --- | --- | | (Dollars in 000s, except per share data) | Q2-2025 | Q1-2025 | Q2-2024 | • Diluted earnings per share ("D-EPS") was $0.93 per share for the second quarter of 2025 compared to $0.88 for the linked quarter and $0.70 for the like | | Summary Income ...

Company Overview - First Bancorp (FBNC) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.88, reflecting a +25.7% change, and revenues of $108.33 million, up 13.2% from the previous year [3][12] Earnings Expectations - The earnings report is anticipated to influence the stock price significantly, with potential upward movement if results exceed expectations, while a miss could lead to a decline [2][15] - The consensus EPS estimate has been revised 0.73% lower in the last 30 days, indicating a reassessment by analysts [4][12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for First Bancorp is lower than the consensus estimate, resulting in an Earnings ESP of -0.38%, suggesting a bearish outlook [12] - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12][17] Historical Performance - First Bancorp has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters, including a +7.69% surprise in the most recent quarter [13][14] Industry Comparison - Veritex Holdings (VBTX), another player in the Southeast banking industry, is expected to report an EPS of $0.55, reflecting a +5.8% year-over-year change, with revenues projected at $109.9 million, up 2.9% [18][19] - Veritex Holdings has a positive Earnings ESP of +1.21% and a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [19][20]

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that mea ...

Group 1 - First Bank appointed Larry Jackson as the new Chief Credit Officer, effective April 2025, bringing over 21 years of experience in credit risk management [1][2] - CEO Adam Currie expressed excitement about Jackson's appointment, highlighting his expertise and leadership skills as vital for the bank's growth [2] - Jackson is relocating to Greensboro with his family and is committed to community involvement, aligning with the bank's values [2] Group 2 - First Bank, a subsidiary of First Bancorp, is headquartered in Southern Pines, North Carolina, with total assets of approximately $12.1 billion [3] - The bank operates 113 branches in North Carolina and South Carolina, focusing on tailored banking solutions and local expertise [3] - First Bancorp's common stock is traded on the NASDAQ under the symbol "FBNC" [3]

Investors might want to bet on First Bancorp (FBNC) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individu ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: First Bancorp (FBNC) - First Bancorp currently holds a Momentum Style Score of B, indicating potential as a solid momentum pick [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - FBNC shares have increased by 1.27% over the past week, while the Zacks Banks - Southeast industry has risen by 2.38% [6] - Over the past month, FBNC's price change is 14.04%, outperforming the industry's 9.03% [6] - In the last quarter, FBNC shares rose by 1.49%, and over the past year, they gained 29.85%, compared to the S&P 500's -2.26% and 13.85% respectively [7] Trading Volume - FBNC's average 20-day trading volume is 187,189 shares, which serves as a price-to-volume baseline for assessing stock momentum [8] Earnings Outlook - In the past two months, one earnings estimate for FBNC has increased, raising the consensus estimate from $3.27 to $3.47 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Considering the positive price trends and earnings outlook, FBNC is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a noteworthy candidate for near-term investment [12]