First Bancorp Reports Second Quarter Results

PR Newswire

SOUTHERN PINES, N.C., July 22, 2026

Second Quarter 2026 Financial Data

(Dollars in 000s, except
per share data)

Q2-2026


Q1-2026


Q2-2025

Summary Income Statement

Total interest income

$           148,315


$           142,390


$           136,731

Total interest expense

37,049


35,274


40,065

Net interest income

111,266


107,116


96,666

Provision for credit losses

1,169


3,083


2,212

Noninterest income

16,034


15,178


14,292

Noninterest expenses

62,761


60,218


58,924

Income tax expense

12,851


12,334


11,256

Net income

$             50,519


$             46,659


$             38,566







Key Metrics

Diluted EPS

$                 1.22


$                 1.13


$                 0.93

Book value per share

41.49


40.68


37.53

Tangible book value per
share

29.84


29.01


25.82

ROA

1.56 %


1.48 %


1.24 %

ROCE

11.89 %


11.22 %


10.11 %

ROTCE

16.88 %


16.05 %


15.25 %

NIM

3.71 %


3.67 %


3.32 %

NIM- T/E

3.73 %


3.69 %


3.32 %

Efficiency ratio

49.12 %


49.05 %


53.00 %

Quarterly NCO ratio

0.04 %


0.06 %


0.06 %

ACL ratio

1.39 %


1.42 %


1.47 %







Capital Ratios (1)

Tangible common equity
to tangible assets

9.83 %


9.63 %


8.83 %

Common equity tier I
capital ratio

14.09 %


14.13 %


14.64 %

Total risk-based capital
ratio

16.06 %


16.12 %


16.90 %

(1) June 30, 2026 ratios are preliminary.

Second Quarter 2026 Highlights

SOUTHERN PINES, N.C., July 22, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today.  The Company reported net income of $50.5 million, or $1.22 diluted earnings per share ("D-EPS"), for the three months ended June 30, 2026 compared to $46.7 million, or $1.13 D-EPS, for the three months ended March 31, 2026 ("linked quarter") and $38.6 million, or $0.93 D-EPS, for the second quarter of 2025 ("like quarter").

On July 14, 2026, the Company announced an agreement to acquire First Carolina Bancshares Corporation ("First Carolina"), and its subsidiary, Carolina Bank & Trust Company ("Carolina Bank") headquartered in Florence, South Carolina, in a 75% stock and 25% cash transaction.  This transaction is subject to regulatory approvals and approval of First Carolina's shareholders, and is expected to close in the late fourth quarter of 2026 or early first quarter of 2027. Carolina Bank operates 14 branches throughout the Pee Dee region of South Carolina and had approximately $831 million in total assets, $596 million in loans, and $714 million in deposits at June 30, 2026.

The Company continued to enhance net interest income and net interest margin ("NIM") during the second quarter of 2026. The Company recorded net interest income of $111.3 million for the current quarter, compared to $107.1 million for the linked quarter and $96.7 million for the like quarter. NIM for the second quarter of 2026 expanded to 3.71% from 3.67% for the linked quarter and 3.32% for the like quarter. 

Noninterest expenses were $62.8 million for the second quarter of 2026, up from $60.2 million for the linked quarter, and $58.9 million for the like quarter.  The efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp continued to build on its positive start to 2026 with strong second quarter financial results driven by continued margin expansion, prudent balance sheet execution, high quality loans and a controlled efficiency ratio.  Earnings continue to benefit from the repositioning of lower-yielding assets into higher-yielding opportunities, while our liquidity position, capital levels, and credit quality remain strong.  We are pleased with our performance through the first half of the year and remain confident in our ability to sustain positive momentum and deliver continued success in 2026.  We are excited about the acquisition of First Carolina which brings talented bankers and will help us accelerate our South Carolina growth expansion."

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2026 was $111.3 million, an increase of 3.9% from the linked quarter of $107.1 million and an increase of 15.1% from the like quarter of $96.7 million.  The increase in net interest income from the linked and like quarters resulted from additional loan volume and increasing loan yield through originations as well as one additional earning day compared to the linked quarter.  The increase from the like quarter also resulted from our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025.

The Company's NIM for the second quarter of 2026 was 3.71%, an increase of 4 basis points from the linked quarter and 39 basis points from the like quarter. 

The linked quarter expansion of NIM was driven a $114.9 million increase in average loans along with a 10 basis points expansion in loan yield.  Additionally, short-term investments contributed an additional $1.5 million from increased balances partially reduced by lower yields. Offsetting these increases, the cost of interest bearing deposits increased 5 basis points on growth of $98.8 million in average balances.  Driving these increases, the average balance of money market deposits increased $99.6 million while the cost of those deposits increased 8 basis points. 

The like quarter expansion of NIM was driven by growth of $708.9 million in average loans, coupled with a 14 basis point yield increase as well as the cost of interest bearing deposits decreasing 20 basis points.  The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.1% of average interest-earning assets to 74.1% in the current quarter, while securities contracted from 25.6% of average interest-earning assets to 22.3% and short-term investments contracted from 4.3% of average interest-bearing assets to 3.7%.



For the Three Months Ended

YIELD INFORMATION


June 30,
2026


March 31,
2026


June 30,
2025








Yield on loans


5.67 %


5.57 %


5.53 %

Yield on securities


2.71 %


2.74 %


2.41 %

Yield on other earning assets


3.99 %


4.36 %


4.63 %

Yield on total interest-earning assets


4.95 %


4.88 %


4.69 %








Cost of interest-bearing deposits


1.94 %


1.89 %


2.14 %

Cost of borrowings


6.64 %


6.68 %


7.22 %

Cost of total interest-bearing liabilities


1.99 %


1.94 %


2.20 %

Total cost of funds


1.34 %


1.31 %


1.48 %

Cost of total deposits


1.31 %


1.28 %


1.43 %








Net interest margin (1)


3.71 %


3.67 %


3.32 %

Net interest margin - tax-equivalent (2)


3.73 %


3.69 %


3.32 %

Average prime rate


6.75 %


6.75 %


7.50 %








(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 using the expected tax rate and is reduced by the related nondeductible portion of interest expense.

See Appendix H regarding loan purchase discount accretion and its impact on the Company's NIM.

Provision for Credit Losses and Credit Quality

For the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, the Company recorded $1.2 million, $3.1 million and $2.2 million in provision for credit losses, respectively. The provision for the second quarter of 2026 was driven by net charge-offs of $1.0 million.  The Allowance for Credit Losses increased  $0.2 million to $124.9 million, or 1.39% of loans.  Additionally, the $22 thousand provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments. 

The Company did not adjust its incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of June 30, 2026.  The remaining incremental reserve contributed two basis points to the Allowance for Credit Losses at period end. 

Asset quality remained strong with annualized net loan charge-offs of 0.04% for the second quarter of 2026.  Total nonperforming assets ("NPAs") totaled $44.9 million at June 30, 2026, or 0.34% of total assets, up slightly from 0.32% at March 31, 2026 and 0.28% at June 30, 2025.  

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

ASSET QUALITY DATA

($ in thousands)


June 30,
2026


March 31,
2026


June 30,
2025








Nonperforming assets







Nonaccrual loans


$      44,283


$      41,032


$      34,625

Accruing loans > 90 days past due


—


—


—

Total nonperforming loans


44,283


41,032


34,625

Foreclosed real estate


659


740


1,218

Total nonperforming assets


$      44,942


$      41,772


$      35,843








Asset Quality Ratios







Quarterly net charge-offs to average loans - annualized


0.04 %


0.06 %


0.06 %

Nonperforming loans to total loans


0.49 %


0.47 %


0.42 %

Nonperforming assets to total assets


0.34 %


0.32 %


0.28 %

Allowance for credit losses to total loans


1.39 %


1.42 %


1.47 %

Noninterest Income

Total noninterest income for the second quarter of 2026 was $16.0 million, a $0.9 million increase from the linked quarter, primarily related to a $0.7 million increase in Other income, net.  The current quarter reflected a 12.2% increase from $14.3 million for the like quarter, primarily related to a $1.0 million increase in Other income net.

Noninterest Expenses

Noninterest expenses amounted to $62.8 million for the second quarter of 2026 compared to $60.2 million for the linked quarter and $58.9 million for the like quarter.  The $2.5 million, or 4.2%, increase in noninterest expense from the linked quarter was driven by a $2.0 million increase in Total personnel expenses. The $3.8 million increase from the like quarter was driven by a $3.3 million increase in Total personnel expenses.  While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Income Taxes

Income tax expense totaled $12.9 million for the second quarter of 2026 compared to $12.3 million for the linked quarter and $11.3 million for the like quarter, reflecting effective tax rates of 20.3%, 20.9% and 22.6% for the respective periods.

Balance Sheet

Total assets at June 30, 2026 were $13.0 billion, an increase of $93.9 million, or 2.9% annualized, from the linked quarter and $433.4 million, or 3.4%, from a year earlier.

Key period end balance sheet components are presented below.

BALANCES

($ in thousands)


June 30,
2026


March 31,
2026


June 30,
2025


Change
2Q26 vs 1Q26


Change
2Q26 vs 2Q25












Total assets


$  13,041,615


$  12,947,734


$  12,608,265


0.7 %


3.4 %

Loans


8,988,748


8,793,814


8,225,650


2.2 %


9.3 %

Investment securities


2,448,787


2,491,035


2,661,236


(1.7) %


(8.0) %

Total cash and cash equivalents


550,332


597,991


711,286


(8.0) %


(22.6) %

Noninterest-bearing deposits


3,597,565


3,596,629


3,542,626


— %


1.6 %

Interest-bearing deposits


7,487,302


7,415,854


7,287,754


1.0 %


2.7 %

Borrowings


74,717


74,643


92,237


0.1 %


(19.0) %

Shareholders' equity


1,716,460


1,682,950


1,556,180


2.0 %


10.3 %

Driven by principal paydowns and maturities, total investment securities decreased to $2.4 billion at June 30, 2026, a $42.2 million decrease from the linked quarter.  Total unrealized losses on available for sale investment securities were $204.5 million at June 30, 2026, as compared to $197.7 million at March 31, 2026 and $298.9 million at June 30, 2025.

Total loans were $9.0 billion at June 30, 2026, an increase of $194.9 million, or 8.9% annualized, from March 31, 2026 and an increase of $763.1 million, or 9.3%, from June 30, 2025.  Adjusting for the paydown of one larger seasonal loan, loan growth for the current quarter was 10.9% annualized.  Please see the below table for total loan portfolio mix.  As of June 30, 2026, there were no notable concentrations in geographies within North Carolina or South Carolina or within 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 6.2% of the total portfolio at June 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million.  Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.

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

LOAN PORTFOLIO


June 30, 2026


March 31, 2026


June 30, 2025

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Commercial and industrial


$  1,014,295


11 %


$  1,000,037


11 %


$     911,227


11 %

Construction, development & other land
     loans


847,912


10 %


821,826


10 %


633,529


8 %

Commercial real estate - owner occupied


1,358,100


15 %


1,352,473


15 %


1,254,596


15 %

Commercial real estate - non-owner
     occupied


2,974,749


33 %


2,921,210


33 %


2,758,629


34 %

Multi-family real estate


619,489


7 %


545,586


6 %


509,419


6 %

Residential 1-4 family real estate


1,728,367


19 %


1,717,550


20 %


1,731,397


21 %

Home equity loans/lines of credit


377,949


4 %


369,062


4 %


355,876


4 %

Consumer loans


68,692


1 %


66,430


1 %


70,137


1 %

Loans, gross


8,989,553


100 %


8,794,174


100 %


8,224,810


100 %

Unamortized net deferred loan
     fees/(costs)


(805)




(360)




840



Total loans


$  8,988,748




$  8,793,814




$  8,225,650



Total deposits were $11.1 billion at June 30, 2026, an increase of $72.4 million, or 2.6% annualized, from  March 31, 2026 and $254.5 million, or 2.3%, from June 30, 2025.

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, 2026.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO


June 30, 2026


March 31, 2026


June 30, 2025

($ in thousands)


Amount


Percentage


Amount


Percentage


Amount


Percentage














Noninterest-bearing checking accounts


$   3,597,565


32 %


$   3,596,629


33 %


$   3,542,626


33 %

Interest-bearing checking accounts


1,422,592


13 %


1,462,606


13 %


1,443,010


13 %

Money market accounts


4,754,782


43 %


4,631,619


42 %


4,446,485


41 %

Savings accounts


510,392


5 %


519,266


5 %


536,247


5 %

Other time deposits


475,744


4 %


489,257


4 %


514,865


5 %

Time deposits >$250,000


318,821


3 %


308,177


3 %


337,382


3 %

Total customer deposits


11,079,896


100 %


11,007,554


100 %


10,820,615


100 %

Brokered deposits


4,971


— %


4,929


— %


9,765


— %

Total deposits


$ 11,084,867


100 %


$ 11,012,483


100 %


$ 10,830,380


100 %

As of June 30, 2026 and March 31, 2026, estimated insured deposits totaled $6.5 billion, or 58.9%, and $6.5 billion, or 59.0%, of total deposits, respectively.  In addition, at June 30, 2026 and March 31, 2026, there were collateralized deposits of $748.7 million and $723.8 million, respectively, such that approximately 65.7% and 65.6%, respectively, of our total deposits were insured or collateralized at those dates.

Capital

The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at June 30, 2026 of 16.06%, down from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.90%. 

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 9.83% at June 30, 2026, an increase of 20 basis points from the linked quarter and 100 basis points from June 30, 2025.  The increase in TCE from the like quarter was driven by improvements in the level of unrealized losses on the available for sale securities portfolio, arising from market value improvements and the 2025 securities loss-earnback transactions. Please refer to Appendix A for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix C for a calculation of the TCE ratio (a non-GAAP measure).

CAPITAL RATIOS


June 30,
2026
(estimated)


March 31,
2026


June 30,
2025








Tangible common equity to tangible assets (non-GAAP)


9.83 %


9.63 %


8.83 %

Common equity tier I capital ratio


14.09 %


14.13 %


14.64 %

Tier I leverage ratio


11.60 %


11.46 %


11.23 %

Tier I risk-based capital ratio


14.81 %


14.87 %


15.45 %

Total risk-based capital ratio


16.06 %


16.12 %


16.90 %

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 and 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, 2026 was 15.7%.  In addition, the Company had approximately $2.4 billion in available lines of credit at that date resulting in a total liquidity ratio of 32.8%. 

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $13.0 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. Member FDIC, Equal Housing Lender.

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."

Caution about Forward-Looking Statements: This News Release 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 risks and uncertainties relating to the level of success in integrating acquisitions, (including the ability to successfully integrate First Carolina into First Bank; to realize the anticipated benefits of the acquisition; deposit attrition, customer loss or other revenue loss following completed acquisitions may be greater than anticipated; and the integration of operations and personnel may require more time and expense); 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.

Non-GAAP Measures

In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP").  Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance.  Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted diluted earnings per share. 

First Bancorp and Subsidiaries

Financial Summary


CONSOLIDATED INCOME STATEMENT



For the Three Months Ended


For the Six Months Ended

($ in thousands, except per share data - unaudited)


June 30,
2026


March 31,
2026


June 30,
2025


June 30,
2026


June 30,
2025

Interest income











Interest and fees on loans


$     125,845


$     120,747


$     112,921


$     246,592


$     223,418

Interest on investment securities:











Taxable interest income


16,925


17,556


16,857


34,481


32,381

Tax-exempt interest income


1,115


1,115


1,116


2,230


2,232

Other, principally overnight investments


4,430


2,972


5,837


7,402


11,324

Total interest income


148,315


142,390


136,731


290,705


269,355

Interest expense











Interest on deposits


35,812


34,046


38,405


69,858


76,524

Interest on borrowings


1,237


1,228


1,660


2,465


3,318

Total interest expense


37,049


35,274


40,065


72,323


79,842

Net interest income


111,266


107,116


96,666


218,382


189,513

Provision for credit losses


1,169


3,083


2,212


4,252


3,328

Net interest income after provision for
credit losses


110,097


104,033


94,454


214,130


186,185

Noninterest income











Service charges on deposit accounts


4,205


3,954


3,976


8,159


7,743

Other service charges and fees


5,986


5,942


6,605


11,928


12,524

Presold mortgage loan fees and gains on sale


660


669


315


1,329


765

Commissions from sales of financial products


1,707


1,492


1,388


3,199


2,796

SBA loan sale gains


529


903


151


1,432


203

Bank-owned life insurance income


1,358


1,340


1,221


2,698


2,449

Other Income, net


1,589


878


636


2,467


768

Total noninterest income


16,034


15,178


14,292


31,212


27,248

Noninterest expenses











Salaries, incentives and commissions expense


31,529


29,978


29,005


61,507


57,666

Employee benefit expense


6,958


6,516


6,187


13,474


12,282

Total personnel expense


38,487


36,494


35,192


74,981


69,948

Occupancy and equipment expense


4,961


5,355


5,195


10,316


10,387

Intangibles amortization expense


1,199


1,247


1,468


2,446


2,984

Other operating expenses


18,114


17,122


17,069


35,236


33,516

Total noninterest expenses


62,761


60,218


58,924


122,979


116,835

Income before income taxes


63,370


58,993


49,822


122,363


96,598

Income tax expense


12,851


12,334


11,256


25,185


21,626

Net income


$       50,519


$       46,659


$       38,566


$       97,178


$       74,972

Earnings per common share:











Basic


$           1.22


$           1.13


$           0.93


$           2.35


$           1.81

Diluted


1.22


1.13


0.93


2.35


1.81

 

First Bancorp and Subsidiaries

Financial Summary


CONSOLIDATED BALANCE SHEETS

($ in thousands - unaudited)


June 30,
2026


March 31,
2026


June 30,
2025

Assets







Cash and due from banks, noninterest-bearing


$         128,424


$         135,176


$         139,486

Due from banks, interest-bearing


421,908


462,815


571,800

 Total cash and cash equivalents


550,332


597,991


711,286








Securities available for sale


1,939,075


1,979,606


2,144,831

Securities held to maturity


509,712


511,429


516,405

Presold mortgages and SBA loans held for sale


12,304


11,191


8,928








Loans


8,988,748


8,793,814


8,225,650

Allowance for credit losses on loans


(124,894)


(124,734)


(120,545)

 Net loans


8,863,854


8,669,080


8,105,105








Premises and equipment, net


138,129


139,374


141,661

Accrued interest receivable


38,272


37,296


36,681

Goodwill


478,750


478,750


478,750

Other intangible assets, net


14,786


15,985


19,920

Bank-owned life insurance


195,984


194,626


190,817

Other assets


300,417


312,406


253,881

 Total assets


$    13,041,615


$    12,947,734


$    12,608,265








Liabilities







Deposits:







Noninterest-bearing deposits


$      3,597,565


$      3,596,629


$      3,542,626

Interest-bearing deposits


7,487,302


7,415,854


7,287,754

 Total deposits


11,084,867


11,012,483


10,830,380








Borrowings


74,717


74,643


92,237

Accrued interest payable


3,813


3,733


4,340

Other liabilities


161,758


173,925


125,128

 Total liabilities


11,325,155


11,264,784


11,052,085








Shareholders' equity







Common stock


966,777


968,675


973,041

Retained earnings


906,976


866,387


812,657

Stock in rabbi trust assumed in acquisition


(534)


(893)


(869)

Rabbi trust obligation


534


893


869

Accumulated other comprehensive loss


(157,293)


(152,112)


(229,518)

 Total shareholders' equity


1,716,460


1,682,950


1,556,180

Total liabilities and shareholders' equity


$    13,041,615


$    12,947,734


$    12,608,265

 

First Bancorp and Subsidiaries

Financial Summary


TREND INFORMATION



For the Three Months Ended



June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












PERFORMANCE RATIOS (annualized)











ROA (1)


1.56 %


1.48 %


0.49 %


0.64 %


1.24 %

Adjusted ROA (2)


1.56 %


1.48 %


1.54 %


1.31 %


1.24 %

ROCE (3)


11.89 %


11.22 %


3.83 %


5.14 %


10.11 %

Adjusted ROCE (4)


11.89 %


11.22 %


12.01 %


10.55 %


10.11 %

ROTCE (5)


16.88 %


16.05 %


5.80 %


7.83 %


15.25 %

Adjusted ROTCE (6)


16.88 %


16.05 %


17.45 %


15.66 %


15.25 %

Efficiency ratio (7)


49.12 %


49.05 %


73.75 %


66.95 %


53.00 %

Adjusted efficiency ratio (7)


49.12 %


49.05 %


48.53 %


51.09 %


53.00 %












COMMON SHARE DATA











Cash dividends declared - common


$         0.24


$         0.24


$            0.23


$             0.23


$         0.23

Book value per common share


$       41.49


$       40.68


$          39.89


$           38.67


$       37.53

Tangible book value per share (8)


$       29.84


$       29.01


$          28.23


$           26.98


$       25.82

Common shares outstanding at end of period


41,374,221


41,375,026


41,466,227


41,465,437


41,468,098

Weighted average shares outstanding - diluted


41,375,377


41,459,357


41,481,132


41,481,542


41,441,393












CAPITAL INFORMATION (preliminary for current quarter)









Tangible common equity to tangible assets (9)


9.83 %


9.63 %


9.61 %


9.12 %


8.83 %

Common equity tier I capital ratio


14.09 %


14.13 %


14.10 %


14.35 %


14.64 %

Total risk-based capital ratio


16.06 %


16.12 %


16.12 %


16.58 %


16.90 %












(1)  Calculated by dividing annualized net income by average assets.

(2) See Appendix D for a reconciliation of ROA to adjusted ROA.

(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity.  See Appendix E for the components of the calculation.

(4) See Appendix E for a reconciliation of ROCE to adjusted ROCE.

(5) Return on average tangible common equity is a non-GAAP financial measure.  See Appendix F for the components of the calculation and the reconciliation of average common equity to average TCE.

(6) See Appendix F for a reconciliation of ROTCE to adjusted ROTCE.

(7)  See Appendix G for a reconciliation of the efficiency ratio to the adjusted efficiency ratio.

(8)  Tangible book value per share is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.

(9)  Tangible common equity ratio is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.

 



For the Three Months Ended

INCOME STATEMENT

($ in thousands except per share data)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Net interest income


$      111,266


$     107,116


$     106,199


$     102,489


$       96,666

Provision for credit losses


1,169


3,083


4,732


3,442


2,212

Noninterest income


16,034


15,178


(22,299)


(12,879)


14,292

Noninterest expense


62,761


60,218


62,223


60,211


58,924

Income before income taxes


63,370


58,993


16,945


25,957


49,822

Income tax expense


12,851


12,334


1,232


5,594


11,256

Net income


$       50,519


$       46,659


$       15,713


$       20,363


$       38,566












Earnings per common share - diluted


$           1.22


$           1.13


$           0.38


$           0.49


$           0.93

 

First Bancorp and Subsidiaries

Financial Summary


AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS


For the Three Months Ended


June 30, 2026


March 31, 2026


June 30, 2025

($ in thousands)

Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate

Assets


















Loans (1) (2)

$   8,896,592


$  125,845


5.67 %


$   8,781,728


$  120,747


5.57 %


$   8,187,662


$  112,921


5.53 %

Taxable securities

2,384,076


16,925


2.84 %


2,442,140


17,556


2.88 %


2,697,338


16,857


2.50 %

Non-taxable securities

283,645


1,115


1.57 %


284,712


1,115


1.57 %


287,848


1,116


1.55 %

Short-term investments, primarily interest-bearing cash

444,845


4,430


3.99 %


276,471


2,972


4.36 %


505,912


5,837


4.63 %

Total interest-earning assets

12,009,158


148,315


4.95 %


11,785,051


142,390


4.88 %


11,678,760


136,731


4.69 %

Cash and due from banks

136,181






147,124






153,074





Premises and equipment

139,177






139,775






142,090





Other assets

664,823






690,864






484,448





Total assets

$ 12,949,339






$ 12,762,814






$ 12,458,372





Liabilities


















Interest-bearing checking

$   1,420,738


$      2,233


0.63 %


$   1,416,600


$      2,230


0.64 %


$   1,434,559


$      2,426


0.68 %

Money market deposits

4,666,044


28,268


2.43 %


4,566,409


26,516


2.35 %


4,358,877


29,947


2.76 %

Savings deposits

516,779


250


0.19 %


524,123


241


0.19 %


538,843


252


0.19 %

Other time deposits

487,071


2,790


2.30 %


495,115


2,819


2.31 %


534,242


3,088


2.32 %

Time deposits >$250,000

314,506


2,271


2.90 %


304,089


2,240


2.99 %


345,916


2,692


3.12 %

Total interest-bearing deposits

7,405,138


35,812


1.94 %


7,306,336


34,046


1.89 %


7,212,437


38,405


2.14 %

Short-term borrowings

757


1


0.72 %


745


1


0.61 %


848


2


1.09 %

Long-term borrowings

73,950


1,236


6.70 %


73,858


1,227


6.74 %


91,351


1,658


7.28 %

Total interest-bearing liabilities

7,479,845


37,049


1.99 %


7,380,939


35,274


1.94 %


7,304,636


40,065


2.20 %

Noninterest-bearing checking

3,597,511






3,515,359






3,522,117





Other liabilities

167,595






179,753






101,069





Shareholders' equity

1,704,388






1,686,763






1,530,550





Total liabilities and shareholders' equity

$ 12,949,339






$ 12,762,814






$ 12,458,372





Net yield on interest-earning assets and net interest income



$  111,266


3.71 %




$  107,116


3.67 %




$    96,666


3.32 %

Net yield on interest-earning assets and net interest income –
tax-equivalent (3)



$  111,732


3.73 %




$  107,595


3.69 %




$    96,877


3.32 %

Interest rate spread





2.96 %






2.94 %






2.49 %

Average prime rate





6.75 %






6.75 %






7.50 %


(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes accretion of discount on acquired loans of $1.1 million, $1.1 million and $1.5 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

 

First Bancorp and Subsidiaries

Financial Summary


AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE



For the Six Months Ended



June 30, 2026


June 30, 2025

($ in thousands)


Average

Volume


Interest

Earned

or Paid


Average

Rate


Average

Volume


Interest

Earned

or Paid


Average

Rate

Assets













Loans (1) (2)


$   8,839,477


$  246,592


5.62 %


$   8,147,750


$  223,418


5.52 %

Taxable securities


2,412,948


34,481


2.86 %


2,663,390


32,381


2.43 %

Non-taxable securities


284,176


2,230


1.57 %


288,373


2,232


1.55 %

Short-term investments, primarily interest-bearing cash


361,123


7,402


4.13 %


504,652


11,324


4.52 %

Total interest-earning assets


11,897,724


290,705


4.92 %


11,604,165


269,355


4.67 %

Cash and due from banks


141,622






143,469





Premises and equipment


139,474






142,574





Other assets


677,771






453,023





Total assets


$ 12,856,591






$ 12,343,231





Liabilities













Interest-bearing checking


$   1,418,681


$      4,462


0.63 %


$   1,433,066


$      4,923


0.69 %

Money market deposits


4,616,502


54,785


2.39 %


4,348,277


59,126


2.74 %

Savings deposits


520,429


491


0.19 %


538,973


493


0.18 %

Other time deposits


491,071


5,609


2.30 %


546,377


6,441


2.38 %

Time deposits >$250,000


309,327


4,511


2.94 %


349,028


5,541


3.20 %

Total interest-bearing deposits


7,356,010


69,858


1.92 %


7,215,721


76,524


2.14 %

Short-term borrowings


751


2


0.66 %


822


3


0.86 %

Long-term borrowings


73,904


2,463


6.72 %


91,259


3,315


7.32 %

Total interest-bearing liabilities


7,430,665


72,323


1.96 %


7,307,802


79,842


2.20 %

Noninterest-bearing checking


3,556,662






3,449,013





Other liabilities


173,640






87,032





Shareholders' equity


1,695,624






1,499,384





Total liabilities and shareholders' equity


$ 12,856,591






$ 12,343,231





Net yield on interest-earning assets and net interest income




$  218,382


3.69 %




$  189,513


3.28 %

Net yield on interest-earning assets and net interest income – tax-equivalent (3)




$  219,327


3.71 %




$  190,161


3.30 %

Interest rate spread






2.96 %






2.47 %

Average prime rate






6.75 %






7.50 %


(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes accretion of discount on acquired loans of $2.1 million and $3.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

 

Reconciliation of non-GAAP measures


APPENDIX A:  Reconciliation of Common Equity to Tangible Common Equity ("TCE")



For the Three Months Ended

($ in thousands)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Total shareholders' common equity


$      1,716,460


$      1,682,950


$      1,654,168


$      1,603,323


$      1,556,180

Less: Goodwill and other intangibles, net of
related taxes


(481,673)


(482,640)


(483,644)


(484,623)


(485,657)

Tangible common equity


$      1,234,787


$      1,200,310


$      1,170,524


$      1,118,700


$      1,070,523


APPENDIX B:  Calculation of Tangible Book Value Per Share ("TBVPS")



For the Three Months Ended

($ in thousands except per share data)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Tangible common equity (Appendix A)


$      1,234,787


$      1,200,310


$      1,170,524


$      1,118,700


$      1,070,523












Common shares outstanding


41,374,221


41,375,026


41,466,227


41,465,437


41,468,098

Tangible book value per common share


$             29.84


$             29.01


$             28.23


$             26.98


$             25.82


APPENDIX C:  TCE Ratio



For the Three Months Ended

($ in thousands)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Tangible common equity (Appendix A)


$      1,234,787


$      1,200,310


$      1,170,524


$       1,118,700


$      1,070,523












Total assets


13,041,615


12,947,734


12,668,339


12,750,263


12,608,265

Less: Goodwill and other intangibles, net of
related taxes


(481,673)


(482,640)


(483,644)


(484,623)


(485,657)

Tangible assets ("TA")


$    12,559,942


$    12,465,094


$    12,184,695


$    12,265,640


$    12,122,608

TCE to TA ratio


9.83 %


9.63 %


9.61 %


9.12 %


8.83 %


APPENDIX D:  Calculation of Return on Average Assets ("ROA") and Adjusted ROA



For the Three Months Ended

($ in thousands)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Net income (A)


$           50,519


$           46,659


$           15,713


$           20,363


$           38,566

After-tax impact of loss-earnback


—


—


33,581


21,433


—

Adjusted net income (B)


$           50,519


$           46,659


$           49,294


$           41,796


$           38,566












Average total assets (C)


$    12,949,339


$    12,762,814


$    12,716,139


$    12,640,016


$    12,458,372












ROA (A/C)


1.56 %


1.48 %


0.49 %


0.64 %


1.24 %

Adjusted ROA (B/C)


1.56 %


1.48 %


1.54 %


1.31 %


1.24 %


APPENDIX E:  Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE



For the Three Months Ended

($ in thousands)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Net income (A)


$           50,519


$           46,659


$           15,713


$           20,363


$           38,566

After-tax impact of loss-earnback


—


—


33,581


21,433


—

Adjusted net income (B)


$           50,519


$           46,659


$           49,294


$           41,796


$           38,566












Average common equity (C)


$      1,704,388


$      1,686,763


$      1,627,976


$      1,571,104


$      1,530,550












ROCE (A/C)


11.89 %


11.22 %


3.83 %


5.14 %


10.11 %

Adjusted ROCE (B/C)


11.89 %


11.22 %


12.01 %


10.55 %


10.11 %


APPENDIX F:  Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE



For the Three Months Ended

($ in thousands)


June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Net Income


$           50,519


$           46,659


$           15,713


$           20,363


$           38,566

Intangible asset amortization, net of taxes


923


960


994


1,066


1,123

Tangible Net income  (A)


51,442


47,619


16,707


21,429


39,689

After-tax impact of loss-earnback


—


—


33,581


21,433


—

Adjusted tangible net income  (B)


$           51,442


$           47,619


$           50,288


$           42,862


$           39,689












Average common equity


$      1,704,388


$      1,686,763


$      1,627,976


$      1,571,104


$      1,530,550

Less: Average goodwill and other intangibles,
net of related taxes


(482,326)


(483,314)


(484,313)


(485,331)


(486,393)

Average TCE  (C)


$      1,222,062


$      1,203,449


$      1,143,663


$      1,085,773


$      1,044,157












ROTCE (A/C)


16.88 %


16.05 %


5.80 %


7.83 %


15.25 %

Adjusted ROTCE (B/C)


16.88 %


16.05 %


17.45 %


15.66 %


15.25 %


APPENDIX G: Efficiency Ratio and Adjusted Efficiency Ratio



For the Three Months Ended



June 30,
2026


March 31,
2026


December 31,
2025


September 30,
2025


June 30,
2025












Noninterest expenses (A)


$           62,761


$           60,218


$           62,043


$           60,171


$           58,924












Nointerest income (B)


16,034


15,178


(22,479)


(12,951)


14,292

Securities losses, net


—


—


(43,722)


(27,905)


—

Adjusted nointerest income (C)


16,034


15,178


21,243


14,954


14,292












Net interest income – tax-equivalent (D)


111,732


107,595


106,601


102,829


96,877












Efficiency ratio A/(B+D)


49.12 %


49.05 %


73.75 %


66.95 %


53.00 %

Adjusted efficiency ratio A/(C+D)


49.12 %


49.05 %


48.53 %


51.09 %


53.00 %

Supplemental information

APPENDIX H: Loan purchase discount accretion and its impact on the Company's NIM

Included in interest income for the second quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.1 million for the linked quarter and $1.5 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the second quarter of 2026, 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.



For the Three Months Ended

NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS

($ in thousands)


June 30,
2026


March 31,
2026


June 30,
2025








Interest income - increased by accretion of loan discount on acquired loans


$         1,083


$         1,065


$         1,457

Total interest income impact


1,083


1,065


1,457

Interest expense - increased by discount accretion on deposits


(62)


(61)


(102)

Interest expense - increased by discount accretion on borrowings


(87)


(86)


(194)

Total net interest expense impact


(149)


(147)


(296)

 Total impact on net interest income


$            934


$            918


$         1,161

 

Corporate holding logo

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/first-bancorp-reports-second-quarter-results-302831269.html

SOURCE First Bancorp