[Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201%20-%20Financial%20Statements) The company presents its unaudited consolidated financial statements and accompanying notes for the period ended September 30, 2019 Consolidated Balance Sheets **Consolidated Balance Sheet Highlights (in thousands)** | Account | Sep 30, 2019 | Dec 31, 2018 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$6,068,911** | **$5,864,116** | **+3.5%** | | Net Loans | $4,377,284 | $4,228,025 | +3.5% | | Securities Available for Sale | $705,224 | $501,351 | +40.7% | | Total Deposits | $4,875,382 | $4,659,339 | +4.6% | | Total Liabilities | $5,233,929 | $5,099,886 | +2.6% | | **Total Shareholders' Equity** | **$834,982** | **$764,230** | **+9.3%** | Consolidated Statements of Income **Key Income Statement Data (in thousands, except per share data)** | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $53,778 | $51,845 | $161,548 | $153,584 | | Provision (reversal) for loan losses | $(1,105) | $87 | $(913) | $(4,282) | | Noninterest Income | $15,630 | $15,172 | $46,194 | $46,873 | | Noninterest Expenses | $38,920 | $39,034 | $118,630 | $121,154 | | **Net Income** | **$25,019** | **$21,991** | **$71,163** | **$65,394** | | **Diluted EPS** | **$0.84** | **$0.74** | **$2.39** | **$2.21** | | Dividends declared per share | $0.12 | $0.10 | $0.36 | $0.30 | Consolidated Statements of Comprehensive Income **Comprehensive Income (in thousands)** | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $25,019 | $21,991 | $71,163 | $65,394 | | Other Comprehensive Income (Loss) | $1,746 | $(778) | $15,595 | $(7,827) | | **Comprehensive Income** | **$26,765** | **$21,213** | **$86,758** | **$57,567** | Consolidated Statements of Shareholders' Equity - Shareholders' equity growth was driven by **+$71.2 million in net income** and **+$15.6 million in other comprehensive income**, offset by **-$10.7 million in dividends** and **-$10.0 million in stock repurchases**[26](index=26&type=chunk) Consolidated Statements of Cash Flows **Cash Flow Summary (in thousands)** | Activity | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $33,422 | $23,687 | | Net Cash from Investing Activities | $(268,428) | $(114,833) | | Net Cash from Financing Activities | $89,569 | $112,385 | | **Net Change in Cash** | **$(145,437)** | **$21,239** | Notes to Consolidated Financial Statements - The Company adopted new lease accounting guidance, recognizing **$19.4 million in lease liabilities and right-of-use assets**[34](index=34&type=chunk) - The Company is preparing for CECL adoption, which is expected to **significantly increase the allowance for loan losses**[37](index=37&type=chunk)[38](index=38&type=chunk) - The Company issued **78,353 shares valued at $3.1 million** to settle a contingent earn-out payment from a 2016 acquisition[176](index=176&type=chunk) [Management's Discussion and Analysis (MD&A)](index=47&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Consolidated%20Results%20of%20Operations%20and%20Financial%20Condition) Management discusses strong earnings growth, improved asset quality, and balance sheet changes for the first nine months of 2019 Critical Accounting Policies - The allowance for loan losses is determined using a model that combines individual impairment analysis and historical loss rates[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - Goodwill of **$234.4 million** is tested annually for impairment and was found not to be impaired as of October 31, 2018[187](index=187&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - Acquired loans are recorded at fair value, with complex estimates for purchased credit-impaired (PCI) loans impacting income[192](index=192&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) FINANCIAL OVERVIEW **Performance Highlights** | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income (millions) | $25.0 | $22.0 | $71.2 | $65.4 | | Diluted EPS | $0.84 | $0.74 | $2.39 | $2.21 | | Net Interest Margin | 3.95% | 4.03% | 4.02% | 4.09% | - Total assets grew 3.5% to **$6.1 billion**, loans grew 3.5% to **$4.4 billion**, and deposits grew 4.6% to **$4.9 billion** since year-end 2018[212](index=212&type=chunk) - The company repurchased **$10 million** of common stock in the first nine months of 2019, with **$15 million** remaining in its authorization[216](index=216&type=chunk) Components of Earnings - Net interest income increased by **3.7% in Q3 2019** and **5.2% year-to-date**, driven by growth in interest-earning assets[218](index=218&type=chunk)[219](index=219&type=chunk) - A negative provision for loan losses of **$1.1 million** was recorded in Q3 2019, reflecting strong asset quality[239](index=239&type=chunk) - Adjusted noninterest income grew **2.9% in Q3 2019**, driven by higher mortgage and service charge fees[242](index=242&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk) - Noninterest expenses decreased **2.1% year-to-date**, primarily due to a **$3.4 million reduction** in merger-related expenses[250](index=250&type=chunk)[253](index=253&type=chunk)[255](index=255&type=chunk) FINANCIAL CONDITION **Change in Loans and Deposits (Jan 1, 2019 to Sep 30, 2019, in thousands)** | Category | Beginning Balance | Net Growth | Ending Balance | % Growth | | :--- | :--- | :--- | :--- | :--- | | Total Loans | $4,249,064 | $147,480 | $4,396,544 | 3.5% | | Total Deposits | $4,659,339 | $216,043 | $4,875,382 | 4.6% | | - Noninterest bearing checking | $1,320,131 | $171,363 | $1,491,494 | 13.0% | | - Brokered Deposits | $239,875 | $(112,356) | $127,519 | (46.8)% | **Asset Quality Ratios** | Ratio | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Nonperforming loans to total loans | 0.67% | 0.85% | | Nonperforming assets to total assets | 0.56% | 0.74% | | Allowance for loan losses to total loans | 0.44% | 0.50% | - Total nonperforming assets decreased from **$43.4 million** to **$33.9 million** at September 30, 2019[270](index=270&type=chunk)[271](index=271&type=chunk) Summary of Loan Loss Experience **Loan Loss Experience (in thousands)** | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Provision (reversal) for loan losses | $(913) | $(4,282) | | Net (charge-offs) recoveries | $(866) | $1,530 | | Allowance for loan losses, at end of period | $19,260 | $20,546 | - The allowance for loan losses to total loans ratio was **0.44%**, impacted by a **$13.8 million** unaccreted discount on acquired loans[287](index=287&type=chunk)[290](index=290&type=chunk) Liquidity, Commitments, and Contingencies - The company has access to significant external liquidity, including an approximately **$1.045 billion** FHLB line and a **$130 million** Federal Reserve line[295](index=295&type=chunk) - Unused and available lines of credit amounted to **$773 million** at September 30, 2019[295](index=295&type=chunk) Capital Resources **Regulatory Capital Ratios** | Ratio | Sep 30, 2019 | Minimum Required (with buffer) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.27% | 7.00% | | Tier 1 Capital | 14.44% | 8.50% | | Total Risk-Based Capital | 14.88% | 10.50% | | Tier 1 Leverage | 11.17% | 4.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity, with recent rate cuts and a flat yield curve pressuring net interest margin - The company is slightly **asset-sensitive**, meaning net interest income is negatively impacted by falling rates in the short-term[315](index=315&type=chunk) - A flat or inverted yield curve is unfavorable, as it **narrows the spread** between loan yields and deposit rates[316](index=316&type=chunk) - Q3 2019 Federal Reserve rate cuts led to an **11 basis point decrease** in net interest margin from the preceding quarter[319](index=319&type=chunk) - The remaining loan discount on acquired loans was **$13.8 million** at September 30, 2019, with volatile accretion timing[321](index=321&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** in ensuring timely and accurate SEC reporting[323](index=323&type=chunk) [Part II. Other Information](index=67&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=67&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is not involved in any pending legal proceedings expected to be material to its financial position - There are **no material legal proceedings** pending against the Company or its subsidiaries[324](index=324&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2018 Annual Report - The report refers to the risk factors in the 2018 Form 10-K, indicating **no material changes**[325](index=325&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $3.5 million of its common stock in Q3 2019, with $15.0 million remaining under its authorization **Issuer Purchases of Equity Securities (Q3 2019)** | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2019 | — | $— | | August 2019 | 99,625 | $34.89 | | September 2019 | — | $— | | **Total** | **99,625** | **$34.89** | - As of September 30, 2019, the company had approximately **$15.0 million remaining** under its share repurchase authorization[328](index=328&type=chunk)[329](index=329&type=chunk) [Exhibits](index=69&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and financial data in XBRL format

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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) | --- | --- | --- | --- | --- | |----------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 Commission File Number 0-15572 FIRST BANCORP (Exact Name of Registrant as Specified in its Charter) | --- | --- | --- | |-------------------------------------------------------------------------------------------------|------------------------|---------------------------------| | | | | | North C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 Commission File Number 0-15572 FIRST BANCORP (Exact Name of Registrant as Specified in its Charter) | --- | --- | |-------------------------------------------------------------------|----------------------------------------------------------| | North Carolina (State of Incorporation) | 56-1421916 (I. ...