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]

Executive Summary & Q2 2025 Highlights [Q2 2025 Financial Data](index=1&type=section&id=Q2%202025%20Financial%20Data) First Bancorp reported strong second-quarter 2025 results with significant increases in net income and diluted EPS compared to both the linked and like quarters, achieving expanded net interest income and margin, alongside disciplined expense management and improved liquidity and capital levels Q2 2025 Financial Data | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Total interest income | $136,741 | $132,660 | $128,822 | | Total interest expense | $40,065 | $39,777 | $47,707 | | Net interest income | $96,676 | $92,883 | $81,115 | | Provision for credit losses | $2,212 | $1,116 | $541 | | Noninterest income | $14,341 | $12,902 | $14,601 | | Noninterest expenses | $58,983 | $57,893 | $58,291 | | Income tax expense | $11,256 | $10,370 | $8,172 | | Net income | $38,566 | $36,406 | $28,712 | | Diluted EPS | $0.93 | $0.88 | $0.70 | | Return on average assets | 1.24% | 1.21% | 0.96% | | Return on average common equity | 10.11% | 10.06% | 8.38% | | NIM | 3.32% | 3.25% | 2.84% | | Tangible common equity to tangible assets | 8.83% | 8.55% | 7.90% | | Common equity tier I capital ratio | 14.62% | 14.52% | 13.99% | | Total risk-based capital ratio | 16.87% | 16.80% | 16.24% | [Q2 2025 Key Highlights](index=1&type=section&id=Q2%202025%20Key%20Highlights) Key highlights for Q2 2025 include significant diluted EPS growth, expanded loan yield, contracted cost of funds, increased core deposits, strong loan growth, and improved liquidity - Diluted earnings per share (D-EPS) increased to **$0.93**, up from $0.88 in Q1-2025 and $0.70 in Q2-2024[2](index=2&type=chunk)[3](index=3&type=chunk) - Total loan yield expanded to **5.53%** (up 1 bp QoQ, 3 bps YoY), while total cost of funds contracted **3 bps to 1.48%** (from 1.51% QoQ and 1.81% YoY)[2](index=2&type=chunk)[3](index=3&type=chunk) - Average core deposits reached **$10.7 billion**, an increase of **$140.4 million** from the linked quarter, driven by growth in noninterest-bearing deposits and money market accounts[3](index=3&type=chunk) - Total loans grew by **$122.6 million** (**6.07% annualized**) for the quarter, reaching **$8.2 billion** at June 30, 2025[3](index=3&type=chunk) - On-balance sheet liquidity ratio increased to **20.0%** from 19.8% in the linked quarter, with total liquidity ratio at **36.1%** including off-balance sheet sources[3](index=3&type=chunk) [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO Richard H. Moore highlighted improved financial results, expanded net interest margin, disciplined expense management, enhanced liquidity, increased capital, strong credit quality, and an approved dividend increase - Second quarter net income was **$38.6 million** and diluted EPS was **$0.93**, driven by expanded net interest margin and disciplined expense management[7](index=7&type=chunk) - The company improved its liquidity position and increased capital levels, while maintaining strong credit quality with low charge-offs and nonperforming assets[7](index=7&type=chunk) - Loan growth was **6% annualized** in the quarter, benefiting from favorable cost of funds and increased yields on earning assets[7](index=7&type=chunk) - The Board increased the quarterly dividend to **$0.23 per share**, effective June 30, 2025[7](index=7&type=chunk) Financial Performance Analysis [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income and net interest margin (NIM) significantly improved in Q2 2025, primarily due to effective management of deposit costs, increased loan yields, and higher securities yields - Net interest income for Q2 2025 was **$96.7 million**, a **4.1% increase** from the linked quarter ($92.9 million) and a **19.2% increase** from the like quarter ($81.1 million)[8](index=8&type=chunk) - NIM expanded to **3.32%** in Q2 2025, up **7 basis points** from 3.25% in the linked quarter and **48 basis points** from 2.84% in the like quarter[9](index=9&type=chunk) - The yield on securities increased by **13 basis points to 2.41%** due to the purchase of **$127.0 million** of CMOs yielding **5.16%**. Loan yields also increased by **1 basis point to 5.53%**[9](index=9&type=chunk) Yield Information (Quarterly) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Yield on loans | 5.53% | 5.52% | 5.50% | | Yield on securities | 2.41% | 2.28% | 1.72% | | Cost of interest-bearing deposits | 2.14% | 2.14% | 2.54% | | Total cost of funds | 1.48% | 1.51% | 1.81% | | Net interest margin | 3.32% | 3.25% | 2.84% | [Provision for Credit Losses and Credit Quality](index=3&type=section&id=Provision%20for%20Credit%20Losses%20and%20Credit%20Quality) The provision for credit losses increased in Q2 2025 due to net charge-offs, loan growth, and macroeconomic projections, while asset quality remained strong - Provision for credit losses was **$2.2 million** in Q2 2025, up from $1.1 million in Q1 2025 and $0.5 million in Q2 2024[13](index=13&type=chunk) - The Q2 2025 provision was influenced by **$1.2 million** in net charge-offs, reserves for **$122.6 million** in loan growth, and declining macro-economic projections, partially offset by a **$3.5 million** reduction in Hurricane Helene reserves[13](index=13&type=chunk) - Asset quality remained strong with annualized net loan charge-offs of **0.06%** for Q2 2025. Total nonperforming assets (NPAs) were **$35.8 million**, or **0.28% of total assets**, consistent with prior periods[15](index=15&type=chunk) Asset Quality Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonaccrual loans | $34,625 | $29,081 | $33,102 | | Total nonperforming assets | $35,843 | $33,850 | $34,252 | | Quarterly net charge-offs to average loans - annualized | 0.06% | 0.17% | 0.07% | | Nonperforming loans to total loans | 0.42% | 0.36% | 0.54% | | Nonperforming assets to total assets | 0.28% | 0.27% | 0.28% | | Allowance for credit losses to total loans | 1.47% | 1.49% | 1.36% | [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total noninterest income increased from the linked quarter, primarily driven by higher service charges and other income, but slightly decreased year-over-year - Total noninterest income was **$14.3 million** in Q2 2025, an **11.2% increase** from $12.9 million in the linked quarter, but a **1.8% decrease** from $14.6 million in the like quarter[18](index=18&type=chunk) - The increase from the linked quarter was mainly due to higher Other service charges, commissions and fees (up **$0.7 million**) and Other income, net (up **$0.6 million**)[18](index=18&type=chunk) [Noninterest Expenses](index=4&type=section&id=Noninterest%20Expenses) Noninterest expenses saw a modest increase from both the linked and like quarters, primarily due to higher operating and personnel expenses - Noninterest expenses totaled **$59.0 million** in Q2 2025, a **$1.1 million (1.9%) increase** from $57.9 million in the linked quarter[19](index=19&type=chunk) - The linked quarter increase was driven by a **$0.7 million** rise in Other operating expenses and a **$0.4 million** increase in total personnel expenses[19](index=19&type=chunk) - Compared to the like quarter, noninterest expenses increased by **$0.7 million**, mainly due to higher total personnel expenses and occupancy/equipment costs[20](index=20&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) Income tax expense increased in Q2 2025, with a slightly higher effective tax rate compared to prior periods - Income tax expense was **$11.3 million** in Q2 2025, up from $10.4 million in the linked quarter and $8.2 million in the like quarter[21](index=21&type=chunk) - Effective tax rates were **22.6%** for Q2 2025, compared to 22.2% for both the linked and like quarters[21](index=21&type=chunk) Balance Sheet Overview [Assets](index=5&type=section&id=Assets) Total assets grew in Q2 2025, primarily driven by loan growth and an increase in the available-for-sale securities portfolio, which also saw decreased unrealized losses - Total assets reached **$12.6 billion** at June 30, 2025, an increase of **$172.0 million (5.5% annualized)** from the linked quarter and **$547.5 million (4.5%)** from a year earlier[22](index=22&type=chunk) - Investment securities increased to **$2.7 billion**, reflecting **$78.5 million** increase from the linked quarter, due to purchases and decreased unrealized losses on available-for-sale securities[24](index=24&type=chunk) - Total unrealized losses on available for sale investment securities decreased to **$298.9 million** at June 30, 2025, from $321.2 million at March 31, 2025 and $410.1 million at June 30, 2024[24](index=24&type=chunk) Key Period End Balance Sheet Components | BALANCES ($ in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change 2Q25 vs 1Q25 | Change 2Q25 vs 2Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | $12,608,265 | $12,436,245 | $12,060,805 | 1.4% | 4.5% | | Loans | $8,225,650 | $8,103,033 | $8,069,848 | 1.5% | 1.9% | | Investment securities | $2,661,236 | $2,582,781 | $2,390,811 | 3.0% | 11.3% | | Total cash and cash equivalents | $711,286 | $772,441 | $608,412 | (7.9)% | 16.9% | | Noninterest-bearing deposits | $3,542,626 | $3,476,786 | $3,339,678 | 1.9% | 6.1% | | Interest-bearing deposits | $7,287,754 | $7,267,873 | $7,148,151 | 0.3% | 2.0% | | Shareholders' equity | $1,556,180 | $1,508,176 | $1,404,342 | 3.2% | 10.8% | [Loans Portfolio](index=5&type=section&id=Loans%20Portfolio) Total loans continued to grow, with a diversified portfolio mix and no notable concentrations in specific geographies or industries, including non-owner occupied office loans - Total loans amounted to **$8.2 billion** at June 30, 2025, an increase of **$122.6 million (6.1% annualized)** from March 31, 2025, and **$155.8 million (1.9%)** from June 30, 2024[25](index=25&type=chunk) - The loan portfolio is diversified, with no notable concentrations in North Carolina and South Carolina geographies or industries like office or hospitality[25](index=25&type=chunk) - Non-owner occupied office loans represented approximately **6.5% of the total portfolio**, primarily in non-metro markets, with the ten largest loans in this category being less than **2% of the total loan portfolio**[25](index=25&type=chunk) Loan Portfolio by Category | LOAN PORTFOLIO ($ in thousands) | June 30, 2025 Amount | June 30, 2025 Percentage | March 31, 2025 Amount | March 31, 2025 Percentage | June 30, 2024 Amount | June 30, 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial and industrial | $911,227 | 11% | $890,071 | 11% | $863,366 | 11% | | Construction, development & other land loans | $633,529 | 8% | $644,439 | 8% | $764,418 | 9% | | Commercial real estate - owner occupied | $1,254,596 | 15% | $1,233,732 | 15% | $1,250,267 | 16% | | Commercial real estate - non owner occupied | $2,758,629 | 34% | $2,701,746 | 34% | $2,561,803 | 32% | | Multi-family real estate | $509,419 | 6% | $512,958 | 6% | $497,187 | 6% | | Residential 1-4 family real estate | $1,731,397 | 21% | $1,709,593 | 21% | $1,729,050 | 21% | | Home equity loans/lines of credit | $355,876 | 4% | $341,240 | 4% | $326,411 | 4% | | Consumer loans | $70,137 | 1% | $68,115 | 1% | $76,638 | 1% | | Loans, gross | $8,224,810 | 100% | $8,101,894 | 100% | $8,069,140 | 100% | [Deposits Portfolio](index=6&type=section&id=Deposits%20Portfolio) Total deposits increased, maintaining a diversified and stable funding base with a significant portion of noninterest-bearing deposits, and a high percentage insured or collateralized - Total deposits were **$10.8 billion** at June 30, 2025, an increase of **$85.7 million (3.2% annualized)** from March 31, 2025, and **$342.6 million (3.3%)** from June 30, 2024[28](index=28&type=chunk) - Noninterest-bearing deposits comprised **33% of total deposits** at June 30, 2025, indicating a stable funding source[29](index=29&type=chunk) - Approximately **66.3% of total deposits** were insured or collateralized at June 30, 2025[30](index=30&type=chunk) Deposit Portfolio by Category | DEPOSIT PORTFOLIO ($ in thousands) | June 30, 2025 Amount | June 30, 2025 Percentage | March 31, 2025 Amount | March 31, 2025 Percentage | June 30, 2024 Amount | June 30, 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing checking accounts | $3,542,626 | 33% | $3,476,786 | 32% | $3,339,678 | 32% | | Interest-bearing checking accounts | $1,443,010 | 13% | $1,448,377 | 14% | $1,400,071 | 13% | | Money market accounts | $4,446,485 | 41% | $4,386,469 | 41% | $4,150,429 | 40% | | Savings accounts | $536,247 | 5% | $539,632 | 5% | $558,126 | 5% | | Other time deposits | $514,865 | 5% | $533,723 | 5% | $601,212 | 6% | | Time deposits >$250,000 | $337,382 | 3% | $349,990 | 3% | $389,281 | 4% | | Total customer deposits | $10,820,615 | 100% | $10,734,977 | 100% | $10,438,797 | 100% | | Brokered deposits | $9,765 | —% | $9,682 | —% | $49,032 | —% | | Total deposits | $10,830,380 | 100% | $10,744,659 | 100% | $10,487,829 | 100% | Capital and Liquidity [Capital Ratios](index=6&type=section&id=Capital%20Ratios) First Bancorp maintained capital levels well above regulatory requirements, with all key capital ratios showing improvement from both the linked and like quarters - The estimated total risk-based capital ratio at June 30, 2025, was **16.87%**, up from 16.80% in the linked quarter and 16.24% in the like quarter[31](index=31&type=chunk) - The tangible common equity (TCE) to tangible assets ratio (non-GAAP) increased to **8.83%** at June 30, 2025, up **28 basis points** from the linked quarter and **93 basis points** from June 30, 2024[32](index=32&type=chunk) - The increase in capital ratios was primarily driven by earnings exceeding dividends and improvements in unrealized losses on the available-for-sale securities portfolio[31](index=31&type=chunk)[32](index=32&type=chunk) Capital Ratios (Estimated) | CAPITAL RATIOS | June 30, 2025 (estimated) | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Tangible common equity to tangible assets (non-GAAP) | 8.83% | 8.55% | 7.90% | | Common equity tier I capital ratio | 14.62% | 14.52% | 13.99% | | Tier I leverage ratio | 11.45% | 11.41% | 11.24% | | Tier I risk-based capital ratio | 15.42% | 15.34% | 14.79% | | Total risk-based capital ratio | 16.87% | 16.80% | 16.24% | [Liquidity Position](index=7&type=section&id=Liquidity%20Position) The company maintained a strong liquidity position, with both on-balance sheet and off-balance sheet sources deemed adequate to meet operational needs - The on-balance sheet liquidity ratio was **20.0%** at June 30, 2025, an increase from 19.8% in the linked quarter[35](index=35&type=chunk) - Available off-balance sheet sources totaled approximately **$2.3 billion**, resulting in a total liquidity ratio of **36.1%**[35](index=35&type=chunk) Company Information [About First Bancorp](index=8&type=section&id=About%20First%20Bancorp) First Bancorp is a bank holding company operating First Bank, a community bank with 113 branches in North and South Carolina, offering tailored banking solutions and SBA loans - First Bancorp is headquartered in Southern Pines, North Carolina, with total assets of **$12.6 billion**[37](index=37&type=chunk) - Its principal activity is the ownership and operation of First Bank, a state-chartered community bank with **113 branches** in North Carolina and South Carolina[37](index=37&type=chunk) - First Bank provides tailored banking solutions, local expertise, technology, and SBA loans through a nationwide network[37](index=37&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties, and the company disclaims any obligation to update or revise them - Statements in the press release that are not historical facts are forward-looking and subject to risks and uncertainties, including financial success of customers, integration of acquisitions, regulatory actions, interest rates, and economic conditions[39](index=39&type=chunk) - The company undertakes no obligation to update or revise forward-looking statements and is not responsible for changes made by media[39](index=39&type=chunk) [Non-GAAP Measures Disclosure](index=8&type=section&id=Non-GAAP%20Measures%20Disclosure) The company uses non-GAAP financial measures to evaluate performance, which are not substitutes for GAAP measures and are reconciled in the appendices - Certain performance measures presented are non-GAAP and used by management to evaluate performance, excluding or including amounts not normally treated as such under GAAP[40](index=40&type=chunk) - Non-GAAP measures should not be viewed as substitutes for GAAP measures, and reconciliations are provided in the appendices[40](index=40&type=chunk) Detailed Financial Statements [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) The consolidated income statement shows strong growth in net interest income and net income for both the quarter and year-to-date periods, despite increased provision for credit losses and noninterest expenses Consolidated Income Statement (Q2 2025 vs. Q1 2025 vs. Q2 2024) | ($ in thousands, except per share data) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total interest income | $136,741 | $132,660 | $128,822 | | Total interest expense | $40,065 | $39,777 | $47,707 | | Net interest income | $96,676 | $92,883 | $81,115 | | Provision for credit losses | $2,212 | $1,116 | $541 | | Total noninterest income | $14,341 | $12,902 | $14,601 | | Total noninterest expenses | $58,983 | $57,893 | $58,291 | | Income before income taxes | $49,822 | $46,776 | $36,884 | | Income tax expense | $11,256 | $10,370 | $8,172 | | Net income | $38,566 | $36,406 | $28,712 | | Diluted EPS | $0.93 | $0.88 | $0.70 | Consolidated Income Statement (YTD June 30, 2025 vs. YTD June 30, 2024) | ($ in thousands, except per share data) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total interest income | $269,401 | $255,436 | | Total interest expense | $79,842 | $95,047 | | Net interest income | $189,559 | $160,389 | | Provision for credit losses | $3,328 | $1,741 | | Total noninterest income | $27,243 | $27,497 | | Total noninterest expenses | $116,876 | $117,478 | | Income before income taxes | $96,598 | $68,667 | | Income tax expense | $21,626 | $14,683 | | Net income | $74,972 | $53,984 | | Diluted EPS | $1.81 | $1.31 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet reflects growth in total assets, loans, and deposits, alongside an increase in shareholders' equity and a reduction in accumulated other comprehensive loss Consolidated Balance Sheets ($ in thousands) | Assets | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total cash and cash equivalents | $711,286 | $772,441 | $608,412 | | Securities available for sale | $2,144,831 | $2,064,516 | $1,867,211 | | Securities held to maturity | $516,405 | $518,265 | $523,600 | | Loans | $8,225,650 | $8,103,033 | $8,069,848 | | Allowance for credit losses on loans | $(120,545) | $(120,631) | $(110,058) | | Net loans | $8,105,105 | $7,982,402 | $7,959,790 | | Total assets | $12,608,265 | $12,436,245 | $12,060,805 | | Liabilities | | | | | Total deposits | $10,830,380 | $10,744,659 | $10,487,829 | | Borrowings | $92,237 | $92,055 | $91,513 | | Total liabilities | $11,052,085 | $10,928,069 | $10,656,463 | | Shareholders' equity | | | | | Total shareholders' equity | $1,556,180 | $1,508,176 | $1,404,342 | | Accumulated other comprehensive loss | $(229,518) | $(246,628) | $(315,191) | | Total liabilities and shareholders' equity | $12,608,265 | $12,436,245 | $12,060,805 | [Trend Information](index=11&type=section&id=Trend%20Information) Performance ratios, common share data, and capital information show positive trends across key metrics over the past five quarters, with improvements in profitability, book value, and capital strength Performance Ratios (Annualized) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets | 1.24% | 1.21% | 0.12% | 0.61% | 0.96% | | Return on average common equity | 10.11% | 10.06% | 0.96% | 5.14% | 8.38% | | Return on average tangible common equity | 15.25% | 15.54% | 1.93% | 8.30% | 13.60% | Common Share Data | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash dividends declared - common | $0.23 | $0.22 | $0.22 | $0.22 | $0.22 | | Book value per common share | $37.53 | $36.46 | $34.96 | $35.74 | $34.10 | | Tangible book value per share | $25.82 | $24.69 | $23.17 | $23.91 | $22.19 | | Common shares outstanding at end of period | 41,468,098 | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | Capital Information (Preliminary for Current Quarter) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tangible common equity to tangible assets | 8.83% | 8.55% | 8.22% | 8.47% | 7.90% | | Common equity tier I capital ratio | 14.62% | 14.52% | 14.35% | 14.37% | 13.99% | | Total risk-based capital ratio | 16.87% | 16.80% | 16.63% | 16.65% | 16.24% | [Average Balances and Net Interest Income Analysis - Quarters](index=12&type=section&id=Average%20Balances%20and%20Net%20Interest%20Income%20Analysis%20-%20Quarters) Quarterly average balance analysis shows consistent growth in interest-earning assets and net interest income, with an expanding net interest margin, driven by higher asset yields and managed liability costs Average Balances and Net Interest Income Analysis (Quarterly) | ($ in thousands) | June 30, 2025 Average Volume | June 30, 2025 Interest Earned or Paid | June 30, 2025 Average Rate | March 31, 2025 Average Volume | March 31, 2025 Interest Earned or Paid | March 31, 2025 Average Rate | June 30, 2024 Average Volume | June 30, 2024 Interest Earned or Paid | June 30, 2024 Average Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loans | $8,187,662 | $112,931 | 5.53% | $8,107,394 | $110,533 | 5.52% | $8,070,815 | $110,472 | 5.50% | | Total interest-earning assets | $11,678,760 | $136,741 | 4.69% | $11,528,742 | $132,660 | 4.65% | $11,462,112 | $128,822 | 4.51% | | Total interest-bearing deposits | $7,212,437 | $38,405 | 2.14% | $7,219,042 | $38,119 | 2.14% | $7,081,586 | $44,744 | 2.54% | | Total interest-bearing liabilities | $7,304,636 | $40,065 | 2.20% | $7,311,002 | $39,777 | 2.21% | $7,249,562 | $47,707 | 2.65% | | Net interest income | | $96,676 | 3.32% | | $92,883 | 3.25% | | $81,115 | 2.84% | | Interest rate spread | | | 2.49% | | | 2.44% | | | 1.86% | [Average Balances and Net Interest Income Analysis - Year-to-Date](index=13&type=section&id=Average%20Balances%20and%20Net%20Interest%20Income%20Analysis%20-%20Year-to-Date) Year-to-date average balance analysis demonstrates sustained growth in interest-earning assets and net interest income, with a notable expansion in net interest margin and interest rate spread compared to the prior year Average Balances and Net Interest Income Analysis (Year-to-Date) | ($ in thousands) | June 30, 2025 Average Volume | June 30, 2025 Interest Earned or Paid | June 30, 2025 Average Rate | June 30, 2024 Average Volume | June 30, 2024 Interest Earned or Paid | June 30, 2024 Average Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loans | $8,147,750 | $223,464 | 5.52% | $8,087,101 | $220,270 | 5.47% | | Total interest-earning assets | $11,604,165 | $269,401 | 4.67% | $11,475,954 | $255,436 | 4.47% | | Total interest-bearing deposits | $7,215,721 | $76,524 | 2.14% | $6,923,761 | $83,879 | 2.44% | | Total interest-bearing liabilities | $7,307,802 | $79,842 | 2.20% | $7,296,748 | $95,047 | 2.62% | | Net interest income | | $189,559 | 3.29% | | $160,389 | 2.81% | | Interest rate spread | | | 2.47% | | | 1.85% | Non-GAAP Reconciliations (Appendices) [APPENDIX A: Calculation of Return on TCE](index=14&type=section&id=APPENDIX%20A%3A%20Calculation%20of%20Return%20on%20TCE) This appendix provides the reconciliation for the calculation of Return on Tangible Common Equity (TCE), a non-GAAP measure, showing its components and trend over the past five quarters Calculation of Return on TCE ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | $38,566 | $36,406 | $3,551 | $18,680 | $28,712 | | Intangible asset amortization, net of taxes | $1,123 | $1,159 | $1,195 | $1,240 | $1,283 | | Tangible Net income | $39,689 | $37,565 | $4,746 | $19,920 | $29,995 | | Average common equity | $1,530,550 | $1,467,871 | $1,466,181 | $1,445,029 | $1,378,284 | | Less: Average goodwill and other intangibles, net of related taxes | $(486,393) | $(487,395) | $(488,624) | $(489,987) | $(491,318) | | Average tangible common equity | $1,044,157 | $980,476 | $977,557 | $955,042 | $886,966 | | Return on average common equity | 10.11% | 10.06% | 0.96% | 5.14% | 8.38% | | Return on average tangible common equity | 15.25% | 15.54% | 1.93% | 8.30% | 13.60% | [APPENDIX B: Reconciliation of Common Equity to TCE](index=14&type=section&id=APPENDIX%20B%3A%20Reconciliation%20of%20Common%20Equity%20to%20TCE) This appendix details the reconciliation from total shareholders' common equity to tangible common equity (TCE) by subtracting goodwill and other intangibles, net of related taxes Reconciliation of Common Equity to TCE ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total shareholders' common equity | $1,556,180 | $1,508,176 | $1,445,611 | $1,477,525 | $1,404,342 | | Less: Goodwill and other intangibles, net of related taxes | $(485,657) | $(486,749) | $(487,660) | $(489,139) | $(490,439) | | Tangible common equity | $1,070,523 | $1,021,427 | $957,951 | $988,386 | $913,903 | [APPENDIX C: Tangible Book Value Per Share](index=14&type=section&id=APPENDIX%20C%3A%20Tangible%20Book%20Value%20Per%20Share) This appendix presents the calculation of tangible book value per common share, a non-GAAP measure, by dividing tangible common equity by common shares outstanding Tangible Book Value Per Share ($ in thousands except per share data) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tangible common equity (Appendix B) | $1,070,523 | $1,021,427 | $957,951 | $988,386 | $913,903 | | Common shares outstanding | 41,468,098 | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | | Tangible book value per common share | $25.82 | $24.69 | $23.17 | $23.91 | $22.19 | [APPENDIX D: TCE Ratio](index=14&type=section&id=APPENDIX%20D%3A%20TCE%20Ratio) This appendix provides the calculation of the Tangible Common Equity (TCE) to Tangible Assets (TA) ratio, a non-GAAP measure, showing the company's capital strength relative to its tangible asset base TCE Ratio ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tangible common equity (Appendix B) | $1,070,523 | $1,021,427 | $957,951 | $988,386 | $913,903 | | Total assets | $12,608,265 | $12,436,245 | $12,147,694 | $12,153,430 | $12,060,805 | | Less: Goodwill and other intangibles, net of related taxes | $(485,657) | $(486,749) | $(487,660) | $(489,139) | $(490,439) | | Tangible assets ("TA") | $12,122,608 | $11,949,496 | $11,660,034 | $11,664,291 | $11,570,366 | | TCE to TA ratio | 8.83% | 8.55% | 8.22% | 8.47% | 7.90% | [APPENDIX E: Adjusted D-EPS](index=15&type=section&id=APPENDIX%20E%3A%20Adjusted%20D-EPS) This appendix provides the reconciliation of diluted earnings per share (D-EPS) to adjusted D-EPS, a non-GAAP measure, by accounting for the after-tax impact of Hurricane Helene Adjusted D-EPS ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net income | $38,566 | $36,406 | $28,712 | | Impact of Hurricane Helene: Provision for (benefit from) credit losses | $(3,500) | $(2,000) | — | | Less, tax impact | $812 | $464 | — | | After-tax impact of Hurricane Helene | $(2,688) | $(1,536) | — | | Adjusted net income | $35,878 | $34,870 | $28,712 | | Weighted average shares outstanding - diluted | 41,441,393 | 41,406,525 | 41,262,091 | | D-EPS | $0.93 | $0.88 | $0.70 | | Adjusted D-EPS | $0.87 | $0.84 | $0.70 | [APPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM](index=16&type=section&id=APPENDIX%20F%3A%20Loan%20purchase%20discount%20accretion%20and%20its%20impact%20on%20the%20Company's%20NIM) This appendix details the impact of loan purchase accounting discount accretion on net interest income and net interest margin (NIM), showing a decreasing but still positive contribution - Loan purchase accounting discount accretion included in interest income was **$1.5 million** in Q2 2025, compared to $1.8 million in the linked quarter and $2.3 million in the like quarter[62](index=62&type=chunk) - This accretion had positive impacts of **4 basis points**, **5 basis points**, and **6 basis points** on the company's NIM and NIM-T/E in Q2 2025, the linked quarter, and the like quarter, respectively[62](index=62&type=chunk) Net Interest Income Purchase Accounting Adjustments ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Interest income - increased by accretion of loan discount on acquired loans | $1,457 | $1,789 | $2,303 | | Total interest income impact | $1,457 | $1,789 | $2,303 | | Interest expense - increased by discount accretion on deposits | $(102) | $(103) | $(224) | | Interest expense - increased by discount accretion on borrowings | $(194) | $(191) | $(190) | | Total net interest expense impact | $(296) | $(294) | $(414) | | Total impact on net interest income | $1,161 | $1,495 | $1,889 |

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]

Company Overview - First Bancorp (FBNC) is headquartered in Southern Pines and operates in the Finance sector [3] - The stock has experienced a price change of 0.27% since the beginning of the year [3] Dividend Information - First Bancorp currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.09% [3] - The average dividend yield for the Banks - Southeast industry is 2.37%, while the S&P 500's yield is 1.57% [3] - The company's annualized dividend of $0.92 has increased by 4.5% from the previous year [4] - Over the last 5 years, First Bancorp has increased its dividend 2 times year-over-year, with an average annual increase of 4.32% [4] - The current payout ratio is 29%, indicating that 29% of its trailing 12-month EPS has been paid out as dividends [4] Earnings Growth - The Zacks Consensus Estimate for First Bancorp's earnings in 2025 is $3.54 per share, reflecting a year-over-year earnings growth rate of 27.80% [5] Investment Perspective - First Bancorp is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

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]

Core Viewpoint - First Bancorp (FBNC) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for First Bancorp indicate an improvement in the company's underlying business, suggesting potential for stock price appreciation [5][8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [10]. Recent Earnings Estimate Revisions - First Bancorp is projected to earn $3.47 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 25.3% [8]. - Over the past three months, the Zacks Consensus Estimate for First Bancorp has risen by 6.2% [8].

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]

FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 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) | | 300 SW Broad St., | ...