First Bancorp Reports Fourth Quarter and Full Year Results

Core Viewpoint - First Bancorp reported a significant decline in net income for the fourth quarter of 2024, primarily due to a substantial securities loss and the impact of Hurricane Helene, while adjusted net income showed improvement compared to the previous quarter. Financial Performance - The company reported net income of $3.6 million, or $0.08 diluted EPS, for Q4 2024, down from $18.7 million, or $0.45 diluted EPS, in Q3 2024, and $29.7 million, or $0.72 diluted EPS, in Q4 2023 [1] - For the full year 2024, net income was $76.2 million, or $1.84 diluted EPS, compared to $104.1 million, or $2.53 diluted EPS, in 2023 [1] - Adjusted net income for Q4 2024 was $31.7 million, or $0.76 adjusted diluted EPS, up from $29.0 million, or $0.70 adjusted diluted EPS, in Q3 2024 [2] Net Interest Income and Margin - Net interest income for Q4 2024 was $88.8 million, an increase of 7.0% from Q3 2024 and 7.6% from Q4 2023 [5] - The tax-equivalent net interest margin (NIM) increased to 3.07% for Q4 2024, up from 2.90% in Q3 2024 [6][8] - The increase in net interest income was attributed to higher yields on the securities portfolio and effective management of deposit costs [5] Securities Loss and Transactions - The company executed a securities loss-earnback transaction, selling $280 million of available-for-sale securities at a loss of approximately $36.8 million [2] - The transaction aimed to capitalize on current yields, resulting in an increase in the yield on the securities portfolio by 25 basis points [8] Credit Quality - The nonperforming assets (NPA) to total assets ratio was 0.39% as of December 31, 2024, reflecting strong credit quality [15] - The company recorded net charge-offs of $0.9 million, an annualized 0.04% of average loans [15] Balance Sheet and Capital - Total assets amounted to $12.1 billion as of December 31, 2024, a slight decrease from the linked quarter [24] - The common equity tier 1 ratio was estimated at 14.33%, and the total risk-based capital ratio was 16.61%, both above regulatory minimums [32][34] - Total loans were $8.1 billion, reflecting a growth of $81.1 million, or 4.03%, from the previous quarter [27] Noninterest Income and Expenses - Total noninterest income for Q4 2024 was negative $23.2 million, primarily due to the securities loss [18] - Noninterest expenses decreased to $58.3 million, down from $59.9 million in the linked quarter, driven by a reduction in personnel expenses [19] Income Taxes - Income tax expense for Q4 2024 was $3.3 million, with an effective tax rate of 48.4%, influenced by incremental state tax-related expenses [21][23]