false000081158900008115892024-07-242024-07-24

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________
Form 8-K
__________________
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 24, 2024
 
First Bancorp
(Exact Name of Registrant as Specified in its Charter)
     
North Carolina 0-15572 56-1421916
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
     
       300 SW Broad Street,
Southern Pines, NC  28387
(Address of Principal Executive Offices)  (Zip Code)
 
(910) 246-2500
____________________
(Registrant’s telephone number, including area code)
 
Not Applicable
___________________
(Former Name or Former Address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:

Title of each class            Trading symbol            Name of each exchange on which registered:
Common Stock, No Par Value        FBNC                The Nasdaq Global Select Market
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First Bancorp
INDEX
 
 Page
  
Item 2.02 – Results of Operations and Financial Condition3 
Item 9.01 – Financial Statements and Exhibits3 
  
Signatures3 
  
4 

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Item 2.02 - Results of Operations and Financial Condition
On July 24, 2024, First Bancorp (the “Registrant” or “Company”) issued an earnings release to announce its financial results for the three month period ended June 30, 2024. The earnings release contains forward-looking statements regarding the Company and includes cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The earnings release is furnished as Exhibit 99.1. Consequently, it is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.



Item 9.01 – Financial Statements and Exhibits
(d) Exhibits


Disclosures About Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company’s customers, the Company’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to the press release by wire services, internet services or other media.




Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
       
      First Bancorp
       
  July 24, 2024  
By:		  
/s/ Richard H. Moore
      Richard H. Moore
      Chief Executive Officer

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News Release

For Immediate Release:For More Information, Contact:
July 24, 2024
Hillary Kestler
704-644-4137

First Bancorp Reports Second Quarter Results

SOUTHERN PINES, N.C. - First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, announced today net income of $28.7 million, or $0.70 per diluted common share, for the three months ended June 30, 2024 compared to $25.3 million, or $0.61 per diluted common share, for the three months ended March 31, 2024 ("linked quarter") and $29.4 million, or $0.71 per diluted common share, for the second quarter of 2023 ("like quarter"). For the six months ended June 30, 2024, the Company recorded net income of $54.0 million, or $1.31 per diluted common share, compared to $44.6 million, or $1.08 per diluted common share, for the six months ended June 30, 2023.

Richard H. Moore, CEO and Chairman of the Company, stated, "Our company had strong performance in the second quarter with expanded net interest margin, improved liquidity and increases in all capital levels. We enhanced our funding position with growth in customer deposits and reductions of borrowings and brokered deposits. We also improved our asset yields during the quarter which contributed to the increase in NIM and will benefit us into the future. Our credit quality remains strong with historically low levels of nonperforming assets, and we continue to have no significant exposure to office or hospitality commercial real estate."

Second Quarter 2024 Highlights

•Loans totaled $8.1 billion at June 30, 2024, reflecting a $6.7 million contraction for the quarter, while year-over-year, loans grew $172.2 million.
•Noninterest-bearing demand accounts were 32% of total deposits at June 30, 2024, which is consistent with historical trends. During the second quarter of 2024, customer deposits grew $336.6 million and brokered deposits contracted $152.0 million leading to an increase in total deposits of $184.5 million.
•The tax equivalent net interest margin ("NIM") increased 7 basis points to 2.87% for the second quarter of 2024, up from 2.80% for the linked quarter and down from 3.08% in the like quarter.
•Total loan yield increased to 5.50%, up 5 basis points from the linked quarter and 24 basis points from the like quarter, with accretion on purchased loans contributing 13 basis points to loan yield in the current quarter.
•Total cost of funds remained low at 1.81% for the quarter ended June 30, 2024, up 2 basis points from the linked quarter.
•The on-balance sheet liquidity ratio was 16.3% at June 30, 2024, up from 15.5% for the linked quarter. Available off-balance sheet sources totaled $2.5 billion at June 30, 2024, resulting in a total liquidity ratio of 34.6%.
•Credit quality continued to be strong with a nonperforming assets ("NPA") to total assets ratio of 0.37% as of June 30, 2024, a 2 basis point decrease from the linked quarter.
•Capital grew during the quarter with a total common equity tier 1 ratio of 13.98% (estimated) and a total risk-based capital ratio of 16.23% (estimated) as of June 30, 2024, both increasing from the linked quarter.
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Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2024 was $81.1 million compared to $79.2 million for the linked quarter, reflecting an increase of 2.3%. Net interest income for the second quarter of 2024 decreased 6.8% from the $87.0 million for the like quarter. The increase in net interest income from the linked quarter was driven by an increase in the yields on earning assets, partially offset by an increase in the cost of funds. The decline in net interest income from the like quarter was driven by an increase in the cost of funds, partially offset by an increase in earning assets.

The Company’s tax-equivalent NIM was 2.87%, an increase of 7 basis points compared to 2.80% for the linked quarter. Increases in yields on assets and the benefit of asset mix changes and reduction in wholesale funding outpaced the increases in rates on liabilities, which resulted in the increase in net interest income and NIM as compared to the linked period. While the total cost of funds increased from 1.79% to 1.81% for the second quarter of 2024, loan yields rose from 5.45% for the linked quarter to 5.50% for the quarter ended June 30, 2024.

For the Three Months Ended
YIELD INFORMATIONJune 30, 2024March 31, 2024June 30, 2023
Yield on loans5.50%5.45%5.26%
Yield on securities1.73%1.79%1.77%
Yield on other earning assets4.71%4.30%4.60%
Yield on total interest-earning assets4.52%4.43%4.25%
Rate on interest-bearing deposits2.54%2.33%1.68%
Rate on other interest-bearing liabilities7.09%5.71%5.68%
Rate on total interest-bearing liabilities2.65%2.59%1.96%
Total cost of funds1.81%1.79%1.29%
Net interest margin (1)2.84%2.77%3.05%
Net interest margin - tax-equivalent (2)2.87%2.80%3.08%
Average prime rate8.50%8.50%8.16%
(1) Calculated by dividing annualized net interest income by average earning assets for the period.
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

Included in interest income for the second quarter of 2024 was total loan purchase accounting discount accretion of $2.3 million compared to $2.4 million for the linked quarter and $3.2 million for the like quarter, with the decreases related to the continued reduction of the loan portfolio acquired from GrandSouth Bancorporation ("GrandSouth"). Loan discount accretion had a 8 basis point, 9 basis point and 11 basis point positive impact on the Company's NIM in the second quarter of 2024, the linked quarter and the like quarter.

The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
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For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS
($ in thousands)
June 30, 2024March 31, 2024June 30, 2023
Interest income - increased by accretion of loan discount on acquired loans$2,303 $2,437 $3,159 
Total interest income impact2,303 2,437 3,159 
Interest expense - increased by discount accretion on deposits(224)(283)(878)
Interest expense - increased by discount accretion on borrowings(190)(189)(212)
Total net interest expense impact(414)(472)(1,090)
Total impact on net interest income$1,889 $1,965 $2,069 

Provision for Credit Losses and Credit Quality

For the three months ended June 30, 2024 and June 30, 2023, the Company recorded $0.5 million and $2.4 million in provision for credit losses, respectively. The provision for the second quarter of 2024 was driven by net charge-offs of $1.5 million partially offset by generally improving updated economic forecasts, which are a key driver in the Company's CECL model as well as a reduction in the level of unfunded commitments.

Asset quality remained strong with annualized net loan charge-offs of 0.07% for the second quarter of 2024. Total NPAs remained at a low level at $44.7 million at June 30, 2024, or 0.37% of total assets, a decrease from 0.39% at March 31, 2024. This is compared to $35.8 million, or 0.30% of total assets, at June 30, 2023 with the increase year-over-year being attributable primarily to activity in the SBA loan portfolio.

The following table presents the summary of NPAs and asset quality ratios for each period.

ASSET QUALITY DATA
($ in thousands)
June 30, 2024March 31, 2024June 30, 2023
Nonperforming assets
Nonaccrual loans$33,102 $35,622 $29,876 
Modifications to borrowers in financial distress10,495 10,999 4,862 
Total nonperforming loans43,597 46,621 34,738 
Foreclosed real estate1,150 926 1,077 
Total nonperforming assets$44,747 $47,547 $35,815 
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized0.07 %0.08 %0.04 %
Nonperforming loans to total loans0.54 %0.58 %0.44 %
Nonperforming assets to total assets0.37 %0.39 %0.30 %
Allowance for credit losses to total loans1.36 %1.36 %1.38 %

Noninterest Income

Total noninterest income for the second quarter of 2024 was $14.6 million, a 13.2% increase from the $12.9 million recorded in the linked quarter and a 2.9% increase from the $14.2 million recorded for the like quarter. As compared to the linked quarter, noninterest income was higher, primarily due to lower net losses on securities of $0.8 million and a $0.4 million increase in SBA loan sale gains. The higher noninterest income in the current quarter as compared to the like quarter was primarily driven by a $0.6 million increase in SBA loan sale gains.

Noninterest Expenses

Noninterest expenses amounted to $58.3 million for the second quarter of 2024 compared to $59.2 million for the linked quarter and $61.6 million for the like quarter. The $0.9 million, or 1.5%, decrease in noninterest expense from the linked quarter was driven by a $0.7 million reduction in Occupancy and equipment related
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expenses and a $0.7 million reduction in Other operating expenses, partially offset by a $0.6 million increase in Salaries and Employee benefits expenses.

The primary contributors to the higher noninterest expense in the second quarter of 2023 were merger and acquisition costs of $1.3 million related to the GrandSouth acquisition as well as Other operating expenses, which were $1.1 million higher in the second quarter of 2023 as compared to the current quarter.

Balance Sheet

Total assets at June 30, 2024 amounted to $12.1 billion, a contraction of $30.8 million, or 1.02% annualized, from the linked quarter and an increase of $27.8 million, or 0.23%, from a year earlier. The decrease from the linked quarter was primarily related to intentional reductions in investment securities, partially offset by higher interest-bearing cash balances.

Quarterly average balances for key balance sheet accounts are presented below.


For the Three Months Ended
AVERAGE BALANCES
($ in thousands)
June 30, 2024March 31, 2024December 31, 2023June 30, 2023Change
2Q24 vs 1Q24		Change
2Q24 vs 2Q23
Total assets$12,055,280 $12,111,201 $12,026,195 $12,058,336 (0.5)%—%
Investment securities, at amortized
  cost		2,883,662 3,108,464 3,143,756 3,221,807 (7.2)%(10.5)%
Loans8,070,814 8,103,387 8,087,450 7,850,522 (0.4)%2.8%
Earning assets11,462,111 11,489,796 11,477,007 11,422,667 (0.2)%0.3%
Deposits10,432,309 10,078,835 10,131,094 10,181,040 3.5%2.5%
Interest-bearing liabilities7,249,562 7,343,934 7,204,165 7,001,838 (1.3)%3.5%
Shareholders’ equity1,378,284 1,375,490 1,280,812 1,314,620 0.2%4.8%

Total investment securities were $2.4 billion at June 30, 2024, a decrease of $223.3 million from the linked quarter and a reduction of $366.8 million from June 30, 2023. During the second quarter of 2024, the Company made no purchases of investment securities. The Company sold $142.9 million of available for sale investment securities at a $4.7 million loss that was substantially offset by the $4.5 million gain on sale of the VISA B shares during the second quarter of 2024. In addition, the Company continues to utilize cash flows from investment securities to fund earning assets and repay borrowings and brokered deposits. Total unrealized loss on available for sale investment securities was $410.1 million at June 30, 2024, as compared to $418.9 million at March 31, 2024 and $440.1 million at June 30, 2023.

Total loans amounted to $8.1 billion at June 30, 2024, a decrease of $6.7 million from March 31, 2024 and an increase of $172.2 million, or 2.2%, from June 30, 2023. As presented below, our total loan portfolio mix has remained relatively consistent with the exception of Construction, development & other land loans, which, as a percentage of the loan portfolio, has fallen from 14% at June 30, 2023 to 9% at June 30, 2024. As of June 30, 2024, there were no notable concentrations in geographies or industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below. The Company's exposure to non-owner occupied office loans represented approximately 5.7% of the total portfolio at June 30, 2024, with the largest loan being $26.8 million and an average loan outstanding balance of $1.3 million. Non-owner occupied office loans are generally in non-metro markets and the 10 largest loans in this category represent less than 2% of the total loan portfolio.

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The following table presents the balance and portfolio percentage by loan category for each period.

June 30, 2024March 31, 2024June 30, 2023
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Commercial and industrial$863,366 11 %$872,623 11 %$888,391 11 %
Construction, development & other land loans764,418 9 %904,216 11 %1,109,769 14 %
Commercial real estate - owner occupied1,250,267 16 %1,238,759 15 %1,222,189 16 %
Commercial real estate - non-owner occupied2,561,803 32 %2,524,221 31 %2,423,262 31 %
Multi-family real estate497,187 6 %457,142 6 %392,120 5 %
Residential 1-4 family real estate1,729,050 21 %1,684,173 21 %1,461,068 18 %
Home equity loans/lines of credit326,411 4 %328,466 4 %334,566 4 %
Consumer loans76,638 1 %66,666 1 %67,077 1 %
Loans, gross8,069,140 100 %8,076,266 100 %7,898,442 100 %
Unamortized net deferred loan fees708 240 (813)
Total loans$8,069,848 $8,076,506 $7,897,629 

Total deposits were $10.5 billion at June 30, 2024, an increase of $184.5 million, or 7.2%, from March 31, 2024 and an increase of $319.3 million, or 3.1%, from June 30, 2023. The quarter-to-date deposit growth is comprised of organic growth of customer deposits of $336.6 million, partially offset by a contraction of $152.0 million in short-term brokered deposits.

The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at June 30, 2024. Our deposit mix has remained consistent historically and has not changed significantly, with the exception of increased growth in money market accounts, as presented in the table below.

June 30, 2024March 31, 2024June 30, 2023
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Noninterest-bearing checking accounts$3,339,678 32 %$3,362,265 33 %$3,639,930 36 %
Interest-bearing checking accounts1,400,071 13 %1,401,724 13 %1,454,489 14 %
Money market accounts4,150,429 40 %3,787,323 37 %3,411,072 34 %
Savings accounts563,143 5 %584,901 6 %658,473 6 %
Other time deposits601,212 6 %607,359 6 %638,751 6 %
Time deposits >$250,000389,281 4 %363,687 3 %353,473 4 %
Total customer deposits10,443,814 100 %10,107,259 98 %10,156,188 100 %
Brokered deposits44,015 — %196,052 2 %12,381 — %
Total deposits$10,487,829 100 %$10,303,311 100 %$10,168,569 100 %

As of June 30, 2024 and March 31, 2024, estimated insured deposits totaled $6.4 billion, or 61.3%, and $6.4 billion, or 61.8%, respectively, of total deposits. In addition, at June 30, 2024 and March 31, 2024, there were collateralized deposits of $762.2 million and $757.0 million, respectively, such that approximately 68.6% and 69.2%, respectively, of our total deposits were insured or collateralized at the current quarter end.

Capital

The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at June 30, 2024 of 16.23%, up from both the linked quarter ratio of 15.85% and like quarter ratio of 15.09%. The increase in risk-based capital ratio was driven by increased shareholders' equity with additional impact from
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shifts in the balance sheet with the reduction in loans being more than offset by higher cash balances which carry a lower risk-weighting.

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital. AOCI is included in the Company’s tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 7.76% at June 30, 2024, an increase of 28 basis points from the linked quarter and an increase of 97 basis points from June 30, 2023. The increases in TCE for the current quarter and year-over-year were driven by earnings and improvements in the level of unrealized losses on the available for sale investment portfolio for the period. Refer to Appendix B for a reconciliation of common equity to TCE and Appendix D for a calculation of the TCE ratio.

CAPITAL RATIOSJune 30, 2024 (estimated)March 31, 2024June 30, 2023
Tangible common equity to tangible assets (non-GAAP)7.76%7.48%6.79%
Common equity tier I capital ratio13.98%13.50%12.75%
Tier I leverage ratio11.24%10.99%10.47%
Tier I risk-based capital ratio14.78%14.29%13.54%
Total risk-based capital ratio16.23%15.85%15.09%

Liquidity

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities, and other marketable assets) and off-balance sheet (readily available lines of credit or other funding sources). The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future.

The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at June 30, 2024 was 16.3%. In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 34.6%.

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About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.1 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina. Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business. First Bank also provides SBA loans to customers through its nationwide network of lenders.

Please visit our website at www.LocalFirstBank.com for more information.

First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC." Member FDIC, Equal Housing Lender.

Caution about Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company’s customers, the Company’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.

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First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED INCOME STATEMENT
For the Three Months EndedFor the Six Months Ended
($ in thousands, except per share data - unaudited)June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Interest income
Interest and fees on loans$110,425 $109,756 $102,963 $220,181 $202,343 
Interest on investment securities12,408 13,845 14,183 26,253 28,729 
Other interest income5,942 2,971 4,015 8,913 7,263 
Total interest income128,775 126,572 121,161 255,347 238,335 
Interest expense
Interest on deposits44,744 39,135 27,328 83,879 46,246 
Interest on borrowings2,963 8,205 6,848 11,168 12,618 
Total interest expense47,707 47,340 34,176 95,047 58,864 
Net interest income81,068 79,232 86,985 160,300 179,471 
Provision for credit losses541 1,200 2,361 1,741 14,863 
Net interest income after provision for credit losses80,527 78,032 84,624 158,559 164,608 
Noninterest income
Service charges on deposit accounts4,139 3,868 4,114 8,007 8,008 
Other service charges, commissions, and fees5,361 5,612 5,650 10,973 11,570 
Presold mortgage loan fees and gains on sale588 338 557 926 963 
Commissions from sales of financial products1,377 1,320 1,413 2,697 2,719 
SBA loan sale gains1,336 895 696 2,231 951 
Bank-owned life insurance income1,179 1,164 1,066 2,343 2,112 
Securities losses, net(186)(975)— (1,161)— 
Other Income854 716 739 1,570 1,448 
Total noninterest income14,648 12,938 14,235 27,586 27,771 
Noninterest expenses
Salaries expense27,809 27,642 28,676 55,451 57,997 
Employee benefit expense6,703 6,269 6,165 12,972 12,558 
Occupancy and equipment expense4,850 5,588 4,972 10,438 10,039 
Merger and acquisition expenses— — 1,334 — 13,516 
Intangibles amortization expense1,669 1,759 2,049 3,428 4,194 
Other operating expenses17,260 17,929 18,397 35,189 37,464 
Total noninterest expenses58,291 59,187 61,593 117,478 135,768 
Income before income taxes36,884 31,783 37,266 68,667 56,611 
Income tax expense8,172 6,511 7,863 14,683 12,047 
Net income$28,712 $25,272 $29,403 $53,984 $44,564 
Earnings per common share - diluted$0.70 $0.61 $0.71 $1.31 $1.08 


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First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)June 30, 2024March 31, 2024December 31, 2023June 30, 2023
Assets
Cash and due from banks$90,468 $87,181 $100,891 $101,215 
Interest-bearing deposits with banks517,944 266,661 136,964 259,460 
Total cash and cash equivalents608,412 353,842 237,855 360,675 
Investment securities2,390,811 2,614,110 2,723,057 2,757,607 
Presold mortgages and SBA loans held for sale7,247 6,703 2,667 4,953 
Loans8,069,848 8,076,506 8,150,102 7,897,629 
Allowance for credit losses on loans(110,058)(110,067)(109,853)(109,230)
Net loans7,959,790 7,966,439 8,040,249 7,788,399 
Premises and equipment147,110 150,546 150,957 152,443 
Goodwill and other intangible assets504,830 506,458 508,257 512,052 
Bank-owned life insurance186,031 185,061 183,897 181,659 
Other assets256,574 308,438 268,003 275,210 
Total assets$12,060,805 $12,091,597 $12,114,942 $12,032,998 
Liabilities
Deposits:
Noninterest-bearing deposits$3,339,678 $3,362,265 $3,379,876 $3,639,930 
Interest-bearing deposits7,148,151 6,941,046 6,651,723 6,528,639 
Total deposits10,487,829 10,303,311 10,031,599 10,168,569 
Borrowings91,513 332,335 630,158 481,658 
Other liabilities77,121 79,852 80,805 85,129 
Total liabilities10,656,463 10,715,498 10,742,562 10,735,356 
Shareholders’ equity
Common stock 967,239 965,429 963,990 960,851 
Retained earnings752,294 732,643 716,420 674,933 
Stock in rabbi trust assumed in acquisition(1,139)(1,396)(1,385)(1,365)
Rabbi trust obligation1,139 1,396 1,385 1,365 
Accumulated other comprehensive loss(315,191)(321,973)(308,030)(338,142)
Total shareholders’ equity1,404,342 1,376,099 1,372,380 1,297,642 
Total liabilities and shareholders’ equity$12,060,805 $12,091,597 $12,114,942 $12,032,998 


9

First Bancorp and Subsidiaries
Financial Summary

TREND INFORMATION

For the Three Months Ended
June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
PERFORMANCE RATIOS (annualized)
Return on average assets (1)
0.96 %0.84 %0.98 %0.99 %0.98 %
Return on average common equity (2)
8.75 %7.78 %9.68 %9.90 %9.95 %
Return on average tangible common equity (3)
13.60 %12.13 %15.76 %15.98 %16.01 %
COMMON SHARE DATA
Cash dividends declared - common$0.22 $0.22 $0.22 $0.22 $0.22 
Book value per common share$34.10 $33.44 $33.38 $30.61 $31.59 
Tangible book value per share (4)
$22.19 $21.49 $21.39 $18.57 $19.51 
Common shares outstanding at end of period41,187,943 41,156,286 41,109,987 40,085,498 41,082,678 
Weighted average shares outstanding - diluted41,262,091 41,249,636 41,207,945 41,199,058 41,129,100 
CAPITAL INFORMATION (estimates for current quarter)
Tangible common equity to tangible assets (5)
7.90 %7.62 %7.56 %6.64 %6.95 %
Common equity tier I capital ratio13.98 %13.50 %13.20 %12.93 %12.75 %
Total risk-based capital ratio16.23 %15.85 %15.54 %15.26 %15.09 %
(1) Calculated by dividing annualized net income by average assets.
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for components of the calculation.
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for components of the calculation and the reconciliation of average common equity to average TCE.
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation.
For the Three Months Ended
INCOME STATEMENT
($ in thousands except per share data)
June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Net interest income - tax-equivalent (1)$81,801 $79,963 $83,225 $85,442 $87,684 
Taxable equivalent adjustment (1)733 731 741 740 699 
Net interest income81,068 79,232 82,484 84,702 86,985 
Provision for credit losses541 1,200 2,950 — 2,361 
Noninterest income14,648 12,938 14,542 15,177 14,235 
Merger and acquisition expenses— — 189 — 1,334 
Other noninterest expense58,291 59,187 56,197 62,224 60,259 
Income before income taxes36,884 31,783 37,690 37,655 37,266 
Income tax expense8,172 6,511 8,016 7,762 7,863 
Net income 28,712 25,272 29,674 29,893 29,403 
Earnings per common share - diluted$0.70 $0.61 $0.72 $0.73 $0.71 
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

10

APPENDIX A: Calculation of Return on TCE

For the Three Months Ended
($ in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Net Income
$28,712 $25,272 $29,674 $29,893 $29,403 
Intangible asset amortization, net of taxes1,283 1,352 1,575 2,634 3,223 
Tangible Net income$29,995 $26,624 $31,249 $32,527 $32,626 
Average common equity$1,378,284 $1,375,490 $1,280,812 $1,303,249 $1,314,650 
Less: Average goodwill and other intangibles, net of related taxes(491,318)(492,733)(494,127)(495,743)(497,319)
Average tangible common equity $886,966 $882,757 $786,685 $807,506 $817,331 
Return on average common equity8.75 %7.78 %9.68 %9.90 %9.95 %
Return on average tangible common equity13.60 %12.13 %15.76 %15.98 %16.01 %


APPENDIX B: Reconciliation of Common Equity to TCE

For the Three Months Ended
($ in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Total shareholders' common equity
$1,404,342 $1,376,099 $1,372,380 $1,257,683 $1,297,642 
Less: Goodwill and other intangibles, net of related taxes(490,439)(491,740)(493,211)(494,681)(496,240)
Tangible common equity$913,903 $884,359 $879,169 $763,002 $801,402 


APPENDIX C: Tangible Book Value Per Share

For the Three Months Ended
($ in thousands except per share data)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Tangible common equity (Appendix B)
$913,903 $884,359 $879,169 $763,002 $801,402 
Common shares outstanding
41,187,943 41,156,286 41,109,987 41,085,498 41,082,678 
Tangible book value per common share$22.19 $21.49 $21.39 $18.57 $19.51 


APPENDIX D: TCE Ratio

For the Three Months Ended
($ in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Tangible common equity (Appendix B)
$913,903 $884,359 $879,169 $763,002 $801,402 
Total assets
12,060,805 12,091,597 12,114,942 11,977,960 12,032,998 
Less: Goodwill and other intangibles, net of related taxes(490,439)(491,740)(493,211)(494,681)(496,240)
Tangible assets ("TA")$11,570,366 $11,599,857 $11,621,731 $11,483,279 $11,536,758 
TCE to TA ratio7.90 %7.62 %7.56 %6.64 %6.95 %
11
v3.24.2
Cover Page
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name First Bancorp
Entity Incorporation, State or Country Code NC
Entity File Number 0-15572
Entity Tax Identification Number 56-1421916
Entity Address, Address Line One 300 SW Broad Street,
Entity Address, City or Town Southern Pines,
Entity Address, State or Province NC
Entity Address, Postal Zip Code 28387
City Area Code (910)
Local Phone Number 246-2500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, No Par Value
Trading Symbol FBNC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000811589
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