First Bank(FBNC) - 2025 Q3 - Quarterly Results

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