Third Quarter 2026 Financial Data
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(Dollars in 000s, except per share data) | Q3-2026 | Q2-2026 | Q3-2025 | ||
Summary Income Statement | |||||
Total interest income | $ 153,979 | $ 148,315 | $ 144,233 | ||
Total interest expense | 39,182 | 37,049 | 41,711 | ||
Net interest income | 114,797 | 111,266 | 102,522 | ||
Provision for credit losses | 1,300 | 1,169 | 3,442 | ||
Noninterest income | 15,117 | 16,034 | (12,952) | ||
Noninterest expenses | 63,991 | 62,761 | 60,171 | ||
Income tax expense | 13,347 | 12,851 | 5,594 | ||
Net income | $ 51,276 | $ 50,519 | $ 20,363 | ||
Key Metrics | |||||
Diluted EPS | $ 1.24 | $ 1.22 | $ 0.49 | ||
Adjusted diluted EPS (1) | 1.24 | 1.22 | 1.01 | ||
Book value per share | 41.38 | 41.49 | 38.67 | ||
Tangible book value per share | 29.77 | 29.84 | 26.98 | ||
ROA | 1.55 % | 1.56 % | 0.64 % | ||
Adjusted ROA (1) | 1.56 % | 1.56 % | 1.31 % | ||
ROCE | 11.71 % | 11.89 % | 5.14 % | ||
Adjusted ROCE (1) | 11.79 % | 11.89 % | 10.55 % | ||
ROTCE | 16.48 % | 16.88 % | 7.83 % | ||
Adjusted ROTCE (1) | 16.59 % | 16.88 % | 15.66 % | ||
NIM | 3.75 % | 3.71 % | 3.46 % | ||
NIM- T/E | 3.76 % | 3.73 % | 3.47 % | ||
Efficiency ratio | 49.09 % | 49.12 % | 66.92 % | ||
Quarterly NCO ratio | 0.09 % | 0.04 % | 0.14 % | ||
ACL ratio | 1.36 % | 1.39 % | 1.44 % | ||
Capital Ratios (2) | |||||
Tangible common equity to tangible assets | 9.73 % | 9.83 % | 9.12 % | ||
Common equity tier I capital ratio | 14.26 % | 14.09 % | 14.35 % | ||
Total risk-based capital ratio | 16.22 % | 16.06 % | 16.58 % | ||
(1) | Q3-2026 adjusted to exclude impact of merger expenses of $0.5 million (after tax $0.3 million). Q3-2025 adjusted to exclude impact of securities loss of $27.9 million (after tax $21.4 million) See Appendices D, E, F, G and I. |
(2) | September 30, 2026 ratios are preliminary. |
Third Quarter 2026 Highlights
- D-EPS was $1.24 per share for the third quarter of 2026 compared to $1.22 for the linked quarter and $0.49 for the like quarter.
- The net interest margin was 3.75% for the quarter ended September 30, 2026, an expansion of 0.04% from the linked quarter and 0.29% from the like quarter.
- The efficiency ratio for the quarter ended September 30, 2026 was 49.09%, compared to 49.12% for the linked quarter and 66.92% for the like quarter.
- Total assets were $13.2 billion at September 30, 2026.
- Total loans were $9.1 billion at September 30, 2026, representing an increase of $116.2 million, or 5.1% annualized.
- Total loan yield was 5.75%, up 8 basis points from the linked quarter and 6 basis points from the like quarter.
- The yield on securities increased 5 basis points to 2.76% from 2.71% for the linked quarter.
- Total cost of funds increased 5 basis points to 1.39% for the quarter ended September 30, 2026 from 1.34% for the linked quarter and decreased 12 basis points from the like quarter.
- Average deposits were $11.1 billion, an increase of $103.8 million for the linked quarter and $263.8 million from the like quarter. Total cost of deposits was 1.35%, an increase of 4 basis points for the linked quarter and a decrease of 11 basis points from the like quarter.
- Noninterest expenses of $64.0 million represented a $1.2 million increase from the linked quarter and a $3.8 million increase from the like quarter. The linked quarter increase was driven by a $1.0 million increase in Total personnel expense and a $0.5 million increase in Merger and acquisition expenses.
- Noninterest-bearing checking accounts were $3.6 billion, representing 33% of total deposits at September 30, 2026.
- The loan-to-deposit ratio was 81.8% as of September 30, 2026.
- The total risk-based capital ratio was 16.22% as of September 30, 2026, an increase of 0.16% from the linked quarter and a contraction of 0.36% from the like quarter.
- Related to the pending acquisition of Carolina Bank, scheduled to close in early 2027, merger expenses of $0.5 million were recognized during the quarter.
SOUTHERN PINES, N.C., Oct. 21, 2026 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ: FBNC), the parent company of First Bank, reported unaudited third quarter earnings today. The Company reported net income of $51.3 million, or $1.24 diluted earnings per share ("D-EPS"), for the three months ended September 30, 2026 compared to $50.5 million, or $1.22 D-EPS, for the three months ended June 30, 2026 ("linked quarter") and $20.4 million, or $0.49 D-EPS, for the third quarter of 2025 ("like quarter"). Adjusting for the securities loss-earnback transaction completed in the third quarter of 2025, adjusted net income was $41.8 million, or $1.01 adjusted D-EPS, for the like quarter.
The Company continued to enhance net interest income and net interest margin ("NIM") during the third quarter of 2026. The Company recorded net interest income of $114.8 million for the current quarter, compared to $111.3 million for the linked quarter and $102.5 million for the like quarter. NIM for the third quarter of 2026 expanded to 3.75% from 3.71% for the linked quarter and 3.46% for the like quarter.
Noninterest expenses were $64.0 million for the third quarter of 2026, up from $62.8 million for the linked quarter, and $60.2 million for the like quarter. Merger and acquisition expenses of $0.5 million were recognized during the third quarter of 2026 related to the pending Carolina Bank acquisition. The efficiency ratio was 49.09% for the quarter ended September 30, 2026 , compared to 49.12% for the linked quarter and 66.92% for the like quarter.
Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp delivered another strong quarter, reflecting disciplined balance sheet management, strong credit quality, loan growth and continued operating efficiency. Our performance through the first nine months of 2026 demonstrates the strength of our franchise, while liquidity and capital remain solid. We are pleased with our year-to-date results and remain confident in our ability to finish the year on a strong note. We also look forward to welcoming the Carolina Bank team and the enhancements to our South Carolina franchise."
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2026 was $114.8 million, an increase of 3.2% from the linked quarter of $111.3 million and an increase of 12.0% from the like quarter of $102.5 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. For the linked quarter, the cost of deposits increased 0.04% partially a result of the rate increase during the quarter by the Federal Reserve.
The Company's NIM for the third quarter of 2026 was 3.75%, an increase of 4 basis points from the linked quarter and 29 basis points from the like quarter.
The linked quarter expansion of NIM was driven by a $152.6 million increase in average loans along with an 8 basis points expansion in loan yield. Additionally, taxable securities contributed an additional $1.0 million from increased balances and higher yields. Offsetting these increases, the cost of interest bearing deposits increased 7 basis points on growth of $83.5 million in average balances. Driving these increases, the average balance of money market deposits increased $135.2 million while the cost of those deposits increased 7 basis points.
The like quarter expansion of NIM was driven by growth of $751.5 million in average loans, coupled with a 6 basis point yield increase as well as the cost of interest bearing deposits decreasing 17 basis points. The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.4% of average interest-earning assets to 74.3% in the current quarter, while securities contracted from 24.8% of average interest-earning assets to 22.5% and short-term investments contracted from 4.8% of average interest-earning assets to 3.1% .
For the Three Months Ended | ||||||
YIELD INFORMATION | September 30, | June 30, | September 30, | |||
Yield on loans | 5.75 % | 5.67 % | 5.69 % | |||
Yield on securities | 2.76 % | 2.71 % | 2.55 % | |||
Yield on other earning assets | 4.08 % | 3.99 % | 4.64 % | |||
Yield on all interest-earning assets | 5.02 % | 4.95 % | 4.86 % | |||
Cost of interest-bearing deposits | 2.01 % | 1.94 % | 2.18 % | |||
Cost of borrowings | 6.71 % | 6.64 % | 7.20 % | |||
Cost of total interest-bearing liabilities | 2.06 % | 1.99 % | 2.24 % | |||
Total cost of funds | 1.39 % | 1.34 % | 1.51 % | |||
Cost of total deposits | 1.35 % | 1.31 % | 1.46 % | |||
Net interest margin (1) | 3.75 % | 3.71 % | 3.46 % | |||
Net interest margin - tax-equivalent (2) | 3.76 % | 3.73 % | 3.47 % | |||
Average prime rate | 6.79 % | 6.75 % | 7.46 % | |||
(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 J 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 September 30, 2026, June 30, 2026 and September 30, 2025, the Company recorded $1.3 million, $1.2 million and $3.4 million in provision for credit losses, respectively. The provision for the third quarter of 2026 was driven by net charge-offs of $2.1 million, partially offset by improved economic factors and the reversal of the remaining incremental reserve for potential exposure from Hurricane Helene. The Allowance for Credit Losses decreased $0.7 million to $124.2 million, or 1.36% of loans. Additionally, the $124 thousand reversal of provision for unfunded commitments during the quarter was primarily the result of lower reserve rates.
Asset quality remained strong with annualized net loan charge-offs of 0.09% for the third quarter of 2026. Total nonperforming assets ("NPAs") totaled $45.0 million at September 30, 2026, or 0.34% of total assets, consistent with June 30, 2026 and up slightly from 0.31% at September 30, 2025.
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA ($ in thousands) | September 30, | June 30, | September 30, | |||
Nonperforming assets | ||||||
Nonaccrual loans | $ 44,166 | $ 44,283 | $ 37,289 | |||
Accruing loans > 90 days past due | — | — | — | |||
Total nonperforming loans | 44,166 | 44,283 | 37,289 | |||
Foreclosed real estate | $ 793 | 659 | 1,718 | |||
Total nonperforming assets | $ 44,959 | $ 44,942 | $ 39,007 | |||
Asset Quality Ratios | ||||||
Quarterly net charge-offs to average loans - annualized | 0.09 % | 0.04 % | 0.14 % | |||
Nonperforming loans to total loans | 0.49 % | 0.49 % | 0.44 % | |||
Nonperforming assets to total assets | 0.34 % | 0.34 % | 0.31 % | |||
Allowance for credit losses to total loans | 1.36 % | 1.39 % | 1.44 % |
Noninterest Income
Total noninterest income for the third quarter of 2026 was $15.1 million, a $0.9 million decrease from the linked quarter, primarily related to a $0.9 million decrease in Other income, net. Adjusting for the $27.9 million securities loss earnback transaction in the third quarter of 2025, the current quarter reflected a 1.1% increase from an adjusted $15.0 million for the like quarter.
Noninterest Expenses
Noninterest expenses amounted to $64.0 million for the third quarter of 2026 compared to $62.8 million for the linked quarter and $60.2 million for the like quarter. The $1.2 million, or 2.0%, increase in noninterest expense from the linked quarter was driven by a $1.0 million increase in Total personnel expense. The $3.8 million increase from the like quarter was driven by a $2.6 million increase in Total personnel expense. While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.09% for the quarter ended September 30, 2026, compared to 49.12% for the linked quarter and 66.92% for the like quarter. We recognized $0.5 million of Merger and acquisition expenses during the third quarter of 2026 related to the pending Carolina Bank acquisition.
Income Taxes
Income tax expense totaled $13.3 million for the third quarter of 2026 compared to $12.9 million for the linked quarter and $5.6 million for the like quarter, reflecting effective tax rates of 20.7%, 20.3% and 21.6% for the respective periods.
Balance Sheet
Total assets at September 30, 2026 were $13.2 billion, an increase of $109.9 million, or 3.3% annualized, from the linked quarter and $401.3 million, or 3.1%, from a year earlier.
Key period end balance sheet components are presented below.
BALANCES ($ in thousands) | September 30, | June 30, | September 30, | Change | Change | |||||
Total assets | $ 13,151,553 | $ 13,041,615 | $ 12,750,263 | 0.8 % | 3.1 % | |||||
Loans | 9,104,899 | 8,988,748 | 8,419,224 | 1.3 % | 8.1 % | |||||
Investment securities | 2,494,124 | 2,448,787 | 2,680,401 | 1.9 % | (6.9) % | |||||
Total cash and cash equivalents | 451,711 | 550,332 | 597,975 | (17.9) % | (24.5) % | |||||
Noninterest-bearing deposits | 3,626,442 | 3,597,565 | 3,580,560 | 0.8 % | 1.3 % | |||||
Interest-bearing deposits | 7,499,862 | 7,487,302 | 7,300,610 | 0.2 % | 2.7 % | |||||
Borrowings | 74,793 | 74,717 | 92,421 | 0.1 % | (19.1) % | |||||
Shareholders' equity | 1,713,145 | 1,716,460 | 1,603,323 | (0.2) % | 6.8 % |
Driven by the purchase of $150.0 million of US Treasury securities during the quarter, partially offset by principal paydowns and maturities and increased unrealized losses on available for sale securities, total investment securities increased to $2.5 billion at September 30, 2026, a $45.3 million increase from the linked quarter. Total unrealized losses on available for sale investment securities were $263.8 million at September 30, 2026, as compared to $204.5 million at June 30, 2026 and $251.8 million at September 30, 2025.
Total loans were $9.1 billion at September 30, 2026, an increase of $116.2 million, or 5.1% annualized, from June 30, 2026 and an increase of $685.7 million, or 8.1%, from September 30, 2025. As of September 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 6.3% of the total portfolio at September 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.5 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Commercial and industrial | $ 1,041,062 | 11 % | $ 1,014,295 | 11 % | $ 904,226 | 11 % | ||||||
Construction, development & other land loans | 932,510 | 10 % | 847,912 | 10 % | 688,302 | 8 % | ||||||
Commercial real estate - owner occupied | 1,382,601 | 15 % | 1,358,100 | 15 % | 1,337,345 | 16 % | ||||||
Commercial real estate - non-owner occupied | 2,963,696 | 33 % | 2,974,749 | 33 % | 2,773,349 | 33 % | ||||||
Multi-family real estate | 614,797 | 7 % | 619,489 | 7 % | 535,681 | 6 % | ||||||
Residential 1-4 family real estate | 1,726,802 | 19 % | 1,728,367 | 19 % | 1,743,884 | 21 % | ||||||
Home equity loans/lines of credit | 378,419 | 4 % | 377,949 | 4 % | 365,488 | 4 % | ||||||
Consumer loans | 66,060 | 1 % | 68,692 | 1 % | 70,031 | 1 % | ||||||
Loans, gross | 9,105,947 | 100 % | 8,989,553 | 100 % | 8,418,306 | 100 % | ||||||
Unamortized net deferred loan fees/(costs) | (1,048) | (805) | 918 | |||||||||
Total loans | $ 9,104,899 | $ 8,988,748 | $ 8,419,224 | |||||||||
Total deposits were $11.1 billion at September 30, 2026, an increase of $41.4 million, or 1.5% annualized, from June 30, 2026 and $245.1 million, or 2.3%, from September 30, 2025.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at September 30, 2026. As presented in the table below, our deposit mix has remained relatively consistent.
DEPOSIT PORTFOLIO | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Noninterest-bearing checking accounts | $ 3,626,442 | 33 % | $ 3,597,565 | 32 % | $ 3,580,560 | 33 % | ||||||
Interest-bearing checking accounts | 1,402,172 | 13 % | 1,422,592 | 13 % | 1,418,378 | 13 % | ||||||
Money market accounts | 4,806,229 | 43 % | 4,754,782 | 43 % | 4,527,728 | 41 % | ||||||
Savings accounts | 505,937 | 4 % | 510,392 | 5 % | 532,462 | 5 % | ||||||
Other time deposits | 466,980 | 4 % | 475,744 | 4 % | 504,942 | 5 % | ||||||
Time deposits >$250,000 | 318,544 | 3 % | 318,821 | 3 % | 312,255 | 3 % | ||||||
Total customer deposits | 11,126,304 | 100 % | 11,079,896 | 100 % | 10,876,325 | 100 % | ||||||
Brokered deposits | — | — % | 4,971 | — % | 4,845 | — % | ||||||
Total deposits | $ 11,126,304 | 100 % | $ 11,084,867 | 100 % | $ 10,881,170 | 100 % | ||||||
As of September 30, 2026 and June 30, 2026, estimated insured deposits totaled $6.6 billion, or 58.9%, and $6.5 billion, or 58.9%, of total deposits, respectively. In addition, at September 30, 2026 and June 30, 2026, there were collateralized deposits of $694.0 million and $748.7 million, respectively, such that approximately 65.2% and 65.7%, 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 September 30, 2026 of 16.22%, up from the linked quarter ratio of 16.06% and down from the like quarter ratio of 16.58%.
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 9.73% at September 30, 2026, a decrease of 10 basis points from the linked quarter and a increase of 61 basis points from September 30, 2025. The increase in TCE from the like quarter was driven by increased retained earnings. 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 | September 30, | June 30, | September 30, | |||
Tangible common equity to tangible assets (non-GAAP) | 9.73 % | 9.83 % | 9.12 % | |||
Common equity tier I capital ratio | 14.26 % | 14.09 % | 14.35 % | |||
Tier I leverage ratio | 11.79 % | 11.60 % | 11.18 % | |||
Tier I risk-based capital ratio | 14.97 % | 14.81 % | 15.14 % | |||
Total risk-based capital ratio | 16.22 % | 16.06 % | 16.58 % |
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 September 30, 2026 was 15.1%. In addition, the Company had approximately $3.7 billion in available lines of credit at that date resulting in a total liquidity ratio of 38.7%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $13.2 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 News 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 News 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, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on common equity and the adjusted efficiency ratio.
First Bancorp and Subsidiaries Financial Summary
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CONSOLIDATED INCOME STATEMENT
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For the Three Months Ended | For the Nine Months Ended | |||||||||
($ in thousands except per share data - unaudited) | September 30, | June 30, | September 30, | September 30, | September 30, | |||||
Interest income | ||||||||||
Interest and fees on loans | $ 131,056 | $ 125,845 | $ 118,855 | $ 377,648 | $ 342,273 | |||||
Interest on investment securities: | ||||||||||
Taxable interest income | 17,882 | 16,925 | 17,571 | 52,363 | 49,952 | |||||
Tax-exempt interest income | 1,113 | 1,115 | 1,114 | 3,343 | 3,346 | |||||
Other interest income | 3,928 | 4,430 | 6,693 | 11,330 | 18,017 | |||||
Total interest income | 153,979 | 148,315 | 144,233 | 444,684 | 413,588 | |||||
Interest expense | ||||||||||
Interest on deposits | 37,919 | 35,812 | 40,035 | 107,777 | 116,559 | |||||
Interest on borrowings | 1,263 | 1,237 | 1,676 | 3,728 | 4,994 | |||||
Total interest expense | 39,182 | 37,049 | 41,711 | 111,505 | 121,553 | |||||
Net interest income | 114,797 | 111,266 | 102,522 | 333,179 | 292,035 | |||||
Provision for credit losses | 1,300 | 1,169 | 3,442 | 5,552 | 6,770 | |||||
Net interest income after provision for credit losses | 113,497 | 110,097 | 99,080 | 327,627 | 285,265 | |||||
Noninterest income | ||||||||||
Service charges on deposit accounts | 4,574 | 4,205 | 4,225 | 12,733 | 11,968 | |||||
Other service charges, commissions, and fees | 5,500 | 5,986 | 6,322 | 17,428 | 18,846 | |||||
Presold mortgage loan fees and gains on sale | 379 | 660 | 471 | 1,708 | 1,236 | |||||
Commissions from sales of insurance and financial products | 1,611 | 1,707 | 1,678 | 4,810 | 4,474 | |||||
SBA loan sale gains | 924 | 529 | 869 | 2,356 | 1,072 | |||||
Bank-owned life insurance income | 1,395 | 1,358 | 1,289 | 4,093 | 3,738 | |||||
Security losses, net | — | — | (27,905) | — | (27,905) | |||||
Other income, net | 734 | 1,589 | 99 | 3,201 | 867 | |||||
Total noninterest income | 15,117 | 16,034 | (12,952) | 46,329 | 14,296 | |||||
Noninterest expenses | ||||||||||
Salaries expense | 32,652 | 31,529 | 31,065 | 94,159 | 88,731 | |||||
Employee benefit expense | 6,810 | 6,958 | 5,751 | 20,284 | 18,033 | |||||
Total personnel expense | 39,462 | 38,487 | 36,816 | 114,443 | 106,764 | |||||
Occupancy and equipment related expense | 5,253 | 4,961 | 5,145 | 15,569 | 15,532 | |||||
Merger and acquisition expenses | 450 | — | — | 450 | — | |||||
Intangibles amortization expense | 1,153 | 1,199 | 1,394 | 3,599 | 4,378 | |||||
Other operating expenses | 17,673 | 18,114 | 16,816 | 52,909 | 50,332 | |||||
Total noninterest expenses | 63,991 | 62,761 | 60,171 | 186,970 | 177,006 | |||||
Income before income taxes | 64,623 | 63,370 | 25,957 | 186,986 | 122,555 | |||||
Income tax expense | 13,347 | 12,851 | 5,594 | 38,532 | 27,220 | |||||
Net Income | $ 51,276 | $ 50,519 | $ 20,363 | $ 148,454 | $ 95,335 | |||||
Earnings per common share: | ||||||||||
Basic | $ 1.24 | $ 1.22 | $ 0.49 | $ 3.59 | $ 2.30 | |||||
Diluted | 1.24 | 1.22 | 0.49 | 3.59 | 2.30 | |||||
First Bancorp and Subsidiaries Financial Summary
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CONSOLIDATED BALANCE SHEETS
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($ in thousands - unaudited) | September 30, | June 30, | September 30, | |||
Assets | ||||||
Cash and due from banks, noninterest bearing | $ 131,879 | $ 128,424 | $ 138,369 | |||
Due from banks, interest bearing | 319,832 | 421,908 | 459,606 | |||
Total cash and cash equivalents | 451,711 | 550,332 | 597,975 | |||
Securities available for sale | 1,986,024 | 1,939,075 | 2,165,668 | |||
Securities held to maturity | 508,100 | 509,712 | 514,733 | |||
Presold mortgages and SBA loans held for sale | 2,677 | 12,304 | 4,032 | |||
Loans | 9,104,899 | 8,988,748 | 8,419,224 | |||
Allowance for credit losses on loans | (124,241) | (124,894) | (120,948) | |||
Net loans | 8,980,658 | 8,863,854 | 8,298,276 | |||
Premises and equipment, net | 140,053 | 138,129 | 141,441 | |||
Accrued interest receivable | 38,594 | 38,272 | 35,986 | |||
Goodwill | 478,750 | 478,750 | 478,750 | |||
Other intangible assets, net | 13,633 | 14,786 | 18,526 | |||
Bank-owned life insurance | 197,379 | 195,984 | 191,911 | |||
Other assets | 353,974 | 300,417 | 302,965 | |||
Total assets | $ 13,151,553 | $ 13,041,615 | $ 12,750,263 | |||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing deposits | $ 3,626,442 | $ 3,597,565 | $ 3,580,560 | |||
Interest-bearing deposits | 7,499,862 | 7,487,302 | 7,300,610 | |||
Total deposits | 11,126,304 | 11,084,867 | 10,881,170 | |||
Borrowings | 74,793 | 74,717 | 92,421 | |||
Accrued interest payable | 4,092 | 3,813 | 4,436 | |||
Other liabilities | 233,219 | 161,758 | 168,913 | |||
Total liabilities | 11,438,408 | 11,325,155 | 11,146,940 | |||
Shareholders' equity | ||||||
Common stock | 967,738 | 966,777 | 973,235 | |||
Retained earnings | 948,317 | 906,976 | 823,483 | |||
Stock in rabbi trust assumed in acquisition | (541) | (534) | (877) | |||
Rabbi trust obligation | 541 | 534 | 877 | |||
Accumulated other comprehensive (loss) income | (202,910) | (157,293) | (193,395) | |||
Total shareholders' equity | 1,713,145 | 1,716,460 | 1,603,323 | |||
Total liabilities and shareholders' equity | $ 13,151,553 | $ 13,041,615 | $ 12,750,263 | |||
First Bancorp and Subsidiaries Financial Summary
| ||||||||||
TREND INFORMATION
| ||||||||||
For the Three Months Ended | ||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||
ROA (1) | 1.55 % | 1.56 % | 1.48 % | 0.49 % | 0.64 % | |||||
Adjusted ROA (2) | 1.56 % | 1.56 % | 1.48 % | 1.54 % | 1.31 % | |||||
ROCE (3) | 11.71 % | 11.89 % | 11.22 % | 3.83 % | 5.14 % | |||||
Adjusted ROCE (4) | 11.79 % | 11.89 % | 11.22 % | 12.01 % | 10.55 % | |||||
ROTCE (5) | 16.48 % | 16.88 % | 16.05 % | 5.80 % | 7.83 % | |||||
Adjusted ROTCE (6) | 16.59 % | 16.88 % | 16.05 % | 17.45 % | 15.66 % | |||||
Efficiency ratio (7) | 49.09 % | 49.12 % | 49.05 % | 73.75 % | 66.92 % | |||||
Adjusted efficiency ratio (7) | 48.74 % | 49.12 % | 49.05 % | 48.53 % | 51.07 % | |||||
COMMON SHARE DATA | ||||||||||
Cash dividends declared - common | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.23 | $ 0.23 | |||||
Book value per common share | $ 41.38 | $ 41.49 | $ 40.68 | $ 39.89 | $ 38.67 | |||||
Tangible book value per share (8) | $ 29.77 | $ 29.84 | $ 29.01 | $ 28.23 | $ 26.98 | |||||
Common shares outstanding at end of period | 41,399,233 | 41,374,221 | 41,375,026 | 41,466,227 | 41,465,437 | |||||
Weighted average shares outstanding - diluted | 41,393,792 | 41,375,377 | 41,459,357 | 41,481,132 | 41,481,542 | |||||
CAPITAL INFORMATION (preliminary for current quarter) | ||||||||||
Tangible common equity to tangible assets (9) | 9.73 % | 9.83 % | 9.63 % | 9.61 % | 9.12 % | |||||
Common equity tier I capital ratio | 14.26 % | 14.09 % | 14.13 % | 14.10 % | 14.35 % | |||||
Total risk-based capital ratio | 16.22 % | 16.06 % | 16.12 % | 16.12 % | 16.58 % | |||||
(1) | Calculated by dividing annualized net income by average assets. |
(2) | See Appendix E 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 F for the components of the calculation. |
(4) | See Appendix F for a reconciliation of ROCE to adjusted ROCE. |
(5) | Return on average tangible common equity is a non-GAAP financial measure. See Appendix G for the components of the calculation and the reconciliation of average common equity to average TCE. |
(6) | See Appendix G for a reconciliation of ROTCE to adjusted ROTCE. |
(7) | See Appendix I 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. |
INCOME STATEMENT | For the Three Months Ended | |||||||||
($ in thousands except per share data) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Net interest income | $ 114,797 | $ 111,266 | $ 107,116 | $ 106,199 | $ 102,522 | |||||
Provision for credit losses | 1,300 | 1,169 | 3,083 | 4,732 | 3,442 | |||||
Noninterest income | 15,117 | 16,034 | 15,178 | (22,299) | (12,952) | |||||
Merger and acquisition costs | 450 | — | — | — | — | |||||
Noninterest expense | 63,541 | 62,761 | 60,218 | 62,223 | 60,171 | |||||
Income before income taxes | 64,623 | 63,370 | 58,993 | 16,945 | 25,957 | |||||
Income tax expense | 13,347 | 12,851 | 12,334 | 1,232 | 5,594 | |||||
Net Income | $ 51,276 | $ 50,519 | $ 46,659 | $ 15,713 | $ 20,363 | |||||
Earnings per common share - diluted | $ 1.24 | $ 1.22 | $ 1.13 | $ 0.38 | $ 0.49 | |||||
First Bancorp and Subsidiaries Financial Summary | |||||||||||||||||
| AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
| |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
September 30, 2026 | June 30, 2026 | September 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) | $ 9,049,189 | $ 131,056 | 5.75 % | $ 8,896,592 | $ 125,845 | 5.67 % | $ 8,297,643 | $ 118,855 | 5.69 % | ||||||||
Taxable securities | 2,464,205 | 17,882 | 2.90 % | 2,384,076 | 16,925 | 2.84 % | 2,637,711 | 17,571 | 2.66 % | ||||||||
Non-taxable securities | 282,540 | 1,113 | 1.58 % | 283,645 | 1,115 | 1.57 % | 286,750 | 1,114 | 1.56 % | ||||||||
Short-term investments, primarily interest-bearing cash | 381,784 | 3,928 | 4.08 % | 444,845 | 4,430 | 3.99 % | 571,922 | 6,693 | 4.64 % | ||||||||
Total interest-earning assets | 12,177,718 | 153,979 | 5.02 % | 12,009,158 | 148,315 | 4.95 % | 11,794,026 | 144,233 | 4.86 % | ||||||||
Cash and due from banks | 129,562 | 136,181 | 149,771 | ||||||||||||||
Premises and equipment | 139,675 | 139,177 | 141,858 | ||||||||||||||
Other assets | 651,018 | 664,823 | 554,361 | ||||||||||||||
Total assets | $ 13,097,973 | $ 12,949,339 | $ 12,640,016 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,383,578 | $ 2,159 | 0.62 % | $ 1,420,738 | $ 2,233 | 0.63 % | $ 1,403,683 | $ 2,420 | 0.68 % | ||||||||
Money market deposits | 4,801,217 | 30,306 | 2.50 % | 4,666,044 | 28,268 | 2.43 % | 4,510,662 | 31,674 | 2.79 % | ||||||||
Savings deposits | 509,584 | 261 | 0.20 % | 516,779 | 250 | 0.19 % | 535,464 | 267 | 0.20 % | ||||||||
Other time deposits | 475,896 | 2,810 | 2.34 % | 487,071 | 2,790 | 2.30 % | 514,143 | 3,029 | 2.34 % | ||||||||
Time deposits >$250,000 | 318,347 | 2,383 | 2.97 % | 314,506 | 2,271 | 2.90 % | 328,207 | 2,645 | 3.20 % | ||||||||
Total interest-bearing deposits | 7,488,622 | 37,919 | 2.01 % | 7,405,138 | 35,812 | 1.94 % | 7,292,159 | 40,035 | 2.18 % | ||||||||
Short-term borrowings | 719 | 1 | 0.61 % | 757 | 1 | 0.72 % | 785 | 1 | 0.49 % | ||||||||
Long-term borrowings | 74,038 | 1,262 | 6.76 % | 73,950 | 1,236 | 6.70 % | 91,564 | 1,675 | 7.26 % | ||||||||
Total interest-bearing liabilities | 7,563,379 | 39,182 | 2.06 % | 7,479,845 | 37,049 | 1.99 % | 7,384,508 | 41,711 | 2.24 % | ||||||||
Noninterest-bearing checking | 3,617,819 | 3,597,511 | 3,550,499 | ||||||||||||||
Other liabilities | 180,012 | 167,595 | 133,905 | ||||||||||||||
Shareholders' equity | 1,736,763 | 1,704,388 | 1,571,104 | ||||||||||||||
Total liabilities and shareholders' equity | 13,097,973 | 12,949,339 | 12,640,016 | ||||||||||||||
Net yield on interest-earning assets and net interest income | $ 114,797 | 3.75 % | $ 111,266 | 3.71 % | $ 102,522 | 3.46 % | |||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ 115,247 | 3.76 % | $ 111,732 | 3.73 % | $ 102,861 | 3.47 % | |||||||||||
Interest rate spread | 2.96 % | 2.96 % | 2.62 % | ||||||||||||||
Average prime rate | 6.79 % | 6.75 % | 7.46 % | ||||||||||||||
(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 $0.8 million, $1.1 million and $1.6 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. |
(3) | Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries Financial Summary | |||||||||||
| AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
| |||||||||||
For the Nine Months Ended | |||||||||||
September 30, 2026 | September 30, 2025 | ||||||||||
($ in thousands) | Average Volume | Interest Earned or Paid | Average Rate | Average Volume | Interest Earned or Paid | Average Rate | |||||
Assets | |||||||||||
Loans (1) (2) | $ 8,910,149 | $ 377,648 | 5.66 % | $ 8,198,263 | $ 342,273 | 5.58 % | |||||
Taxable securities | 2,430,221 | 52,363 | 2.87 % | 2,654,737 | 49,952 | 2.51 % | |||||
Non-taxable securities | 283,625 | 3,343 | 1.57 % | 287,826 | 3,346 | 1.55 % | |||||
Short-term investments, primarily interest-bearing cash | 368,086 | 11,330 | 4.12 % | 527,322 | 18,017 | 4.57 % | |||||
Total interest-earning assets | 11,992,081 | 444,684 | 4.95 % | 11,668,148 | 413,588 | 4.74 % | |||||
Cash and due from banks | 137,558 | 145,593 | |||||||||
Premises and equipment | 139,542 | 142,333 | |||||||||
Other assets | 668,755 | 487,172 | |||||||||
Total assets | $ 12,937,936 | $ 12,443,246 | |||||||||
Liabilities | |||||||||||
Interest-bearing checking | $ 1,406,851 | $ 6,621 | 0.63 % | $ 1,423,164 | $ 7,343 | 0.69 % | |||||
Money market deposits | 4,678,750 | 85,091 | 2.43 % | 4,403,000 | 90,801 | 2.76 % | |||||
Savings deposits | 516,775 | 752 | 0.19 % | 537,790 | 759 | 0.19 % | |||||
Other time deposits | 485,957 | 8,418 | 2.32 % | 535,515 | 9,470 | 2.36 % | |||||
Time deposits >$250,000 | 312,367 | 6,895 | 2.95 % | 342,011 | 8,186 | 3.20 % | |||||
Total interest-bearing deposits | 7,400,700 | 107,777 | 1.95 % | 7,241,480 | 116,559 | 2.15 % | |||||
Short-term borrowings | 740 | 4 | 0.65 % | 809 | 4 | 0.74 % | |||||
Long-term borrowings | 73,949 | 3,724 | 6.73 % | 91,362 | 4,990 | 7.30 % | |||||
Total interest-bearing liabilities | 7,475,389 | 111,505 | 1.99 % | 7,333,651 | 121,553 | 2.22 % | |||||
Noninterest-bearing checking | 3,577,272 | 3,483,214 | |||||||||
Other liabilities | 175,787 | 102,828 | |||||||||
Shareholders' equity | 1,709,488 | 1,523,553 | |||||||||
Total liabilities and shareholders' equity | 12,937,936 | 12,443,246 | |||||||||
Net yield on interest-earning assets and net interest income | $ 333,179 | 3.71 % | $ 292,035 | 3.34 % | |||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ 334,574 | 3.73 % | $ 293,022 | 3.35 % | |||||||
Interest rate spread | 2.96 % | 2.52 % | |||||||||
Average prime rate | 6.76 % | 7.49 % | |||||||||
(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 $2.9 million and $4.8 million for the nine months ended September 30, 2026 and September 30, 2025, respectively. |
(3) | Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
Reconciliation of non-GAAP measures
APPENDIX A: Reconciliation of Common Equity to Tangible Common Equity ("TCE")
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Total shareholders' common equity | $ 1,713,145 | $ 1,716,460 | $ 1,682,950 | $ 1,654,168 | $ 1,603,323 | |||||
Less: Goodwill and other intangibles, net of related taxes | (480,741) | (481,673) | (482,640) | (483,644) | (484,623) | |||||
Tangible common equity | $ 1,232,404 | $ 1,234,787 | $ 1,200,310 | $ 1,170,524 | $ 1,118,700 | |||||
APPENDIX B: Calculation of Tangible Book Value Per Share
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands except per share data) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Tangible common equity (Appendix A) | $ 1,232,404 | $ 1,234,787 | $ 1,200,310 | $ 1,170,524 | $ 1,118,700 | |||||
Common shares outstanding | 41,399,233 | 41,374,221 | 41,375,026 | 41,466,227 | 41,465,437 | |||||
Tangible book value per common share | $ 29.77 | $ 29.84 | $ 29.01 | $ 28.23 | $ 26.98 | |||||
APPENDIX C: TCE Ratio
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Tangible common equity (Appendix A) | $ 1,232,404 | $ 1,234,787 | $ 1,200,310 | $ 1,170,524 | $ 1,118,700 | |||||
Total assets | 13,151,553 | 13,041,615 | 12,947,734 | 12,668,339 | 12,750,263 | |||||
Less: Goodwill and other intangibles, net of related taxes | (480,741) | (481,673) | (482,640) | (483,644) | (484,623) | |||||
Tangible assets ("TA") | $ 12,670,812 | $ 12,559,942 | $ 12,465,094 | $ 12,184,695 | $ 12,265,640 | |||||
TCE to TA ratio | 9.73 % | 9.83 % | 9.63 % | 9.61 % | 9.12 % | |||||
APPENDIX D: Adjusted Net Income and Adjusted D-EPS
| ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
($ in thousands) | September 30, | June 30, | September 30, | September 30, | September 30, | |||||
Net income (A) | $ 51,276 | $ 50,519 | $ 20,363 | $ 148,454 | $ 95,335 | |||||
Impact of loss-earnback | ||||||||||
Securities loss from loss-earnback | — | — | 27,905 | — | 27,905 | |||||
Less, tax impact | — | — | (6,472) | — | (6,472) | |||||
After-tax impact of securities loss-earnback | — | — | 21,433 | — | 21,433 | |||||
Impact of Merger and acquisition expenses | ||||||||||
Merger and acquisition expenses | 450 | — | — | 450 | — | |||||
Less, tax impact | (104) | — | — | (104) | — | |||||
After-tax impact of merger and acquisition expenses | 346 | — | — | 346 | — | |||||
Adjusted net income (B) | $51,622 | $50,519 | $41,796 | $148,800 | $116,768 | |||||
Weighted average shares outstanding - diluted (C) | 41,393,792 | 41,375,377 | 41,481,542 | 41,409,330 | 41,443,636 | |||||
D-EPS (A/C) | $ 1.24 | $ 1.22 | $ 0.49 | $ 3.59 | $ 2.30 | |||||
Adjusted D-EPS (B/C) | $ 1.24 | $ 1.22 | $ 1.01 | $ 3.59 | $ 2.82 | |||||
NOTE: Certain merger related expenses may not be fully tax deductible. | ||||||||||
APPENDIX E: Calculation of Return on Average Assets ("ROA") and Adjusted ROA
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Net income (A) | $ 51,276 | $ 50,519 | $ 46,659 | $ 15,713 | $ 20,363 | |||||
After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||
After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||
Adjusted net income (B) | $ 51,622 | $ 50,519 | $ 46,659 | $ 49,294 | $ 41,796 | |||||
Average total assets (C) | $ 13,097,973 | $ 12,949,339 | $ 12,762,814 | $ 12,716,139 | $ 12,640,016 | |||||
ROA (A/C) | 1.55 % | 1.56 % | 1.48 % | 0.49 % | 0.64 % | |||||
Adjusted ROA (B/C) | 1.56 % | 1.56 % | 1.48 % | 1.54 % | 1.31 % | |||||
Reconciliation of non-GAAP measures, continued
APPENDIX F: Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Net income (A) | $ 51,276 | $ 50,519 | $ 46,659 | $ 15,713 | $ 20,363 | |||||
After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||
After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||
Adjusted net income (B) | $ 51,622 | $ 50,519 | $ 46,659 | $ 49,294 | $ 41,796 | |||||
Average common equity (C) | $ 1,736,763 | $ 1,704,388 | $ 1,686,763 | $ 1,627,976 | $ 1,571,104 | |||||
ROCE (A/C) | 11.71 % | 11.89 % | 11.22 % | 3.83 % | 5.14 % | |||||
Adjusted ROCE (B/C) | 11.79 % | 11.89 % | 11.22 % | 12.01 % | 10.55 % | |||||
APPENDIX G: Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
| ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Net income | $ 51,276 | $ 50,519 | $ 46,659 | $ 15,713 | $ 20,363 | |||||
Intangible asset amortization, net of taxes | 887 | 923 | 960 | 994 | 1,066 | |||||
Tangible Net income (A) | 52,163 | 51,442 | 47,619 | 16,707 | 21,429 | |||||
After-tax impact of securities loss-earnback | — | — | — | 33,581 | 21,433 | |||||
After-tax impact of merger and acquisition expenses | 346 | — | — | — | — | |||||
Adjusted tangible Net income (B) | $ 52,509 | $ 51,442 | $ 47,619 | $ 50,288 | $ 42,862 | |||||
Average Common Equity | $ 1,736,763 | $ 1,704,388 | $ 1,686,763 | $ 1,627,976 | $ 1,571,104 | |||||
Less: Average Goodwill and Other Intangibles, net of related taxes | (481,346) | (482,326) | (483,314) | (484,313) | (485,331) | |||||
Average TCE (C) | $ 1,255,417 | $ 1,222,062 | $ 1,203,449 | $ 1,143,663 | $ 1,085,773 | |||||
ROTCE (A/C) | 16.48 % | 16.88 % | 16.05 % | 5.80 % | 7.83 % | |||||
Adjusted ROTCE (B/C) | 16.59 % | 16.88 % | 16.05 % | 17.45 % | 15.66 % | |||||
APPENDIX H: Impact of Hurricane Helene
| ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
($ in thousands) | September 30, | June 30, | September 30, | September 30, | September 30, | |||||
Impact of Hurricane Helene | ||||||||||
Provision for (benefit from) credit losses | $ (1,900) | $ — | $ (4,000) | $ (1,900) | $ (9,500) | |||||
Total | (1,900) | — | (4,000) | (1,900) | (9,500) | |||||
Less, tax impact | 438 | — | 928 | 438 | 2,203 | |||||
After-tax impact of Hurricane Helene | $ (1,462) | $ — | $ (3,072) | $ (1,462) | $ (7,297) | |||||
Weighted average shares outstanding - diluted | 41,393,792 | 41,375,377 | 41,481,542 | 41,409,330 | 41,443,636 | |||||
Impact of Hurricane Helene per diluted share | $ 0.04 | $ — | $ 0.07 | $ 0.04 | $ 0.18 | |||||
APPENDIX I: Efficiency Ratio and Adjusted Efficiency Ratio
| ||||||||||
For the Three Months Ended | ||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
Noninterest expenses (A) | $ 63,991 | $ 62,761 | $ 60,218 | $ 62,043 | $ 60,171 | |||||
Merger & acquisition expenses | 450 | — | — | — | — | |||||
Adjusted noninterest expenses (B) | 63,541 | 62,761 | 60,218 | 62,043 | 60,171 | |||||
Noninterest income (C) | 15,117 | 16,034 | 15,178 | (22,479) | (12,952) | |||||
Securities losses, net | — | — | — | (43,722) | (27,905) | |||||
Adjusted noninterest income (D) | 15,117 | 16,034 | 15,178 | 21,243 | 14,953 | |||||
Net interest income - tax equivalent (E) | 115,247 | 111,732 | 107,595 | 106,601 | 102,861 | |||||
Efficiency ratio A/(C+E) | 49.09 % | 49.12 % | 49.05 % | 73.75 % | 66.92 % | |||||
Adjusted efficiency ratio B/(D+E) | 48.74 % | 49.12 % | 49.05 % | 48.53 % | 51.07 % | |||||
Supplemental information |
APPENDIX J: Loan purchase discount accretion and its impact on the Company's NIM
Included in interest income for the third quarter of 2026 was a loan purchase accounting discount accretion of $0.8 million compared to $1.1 million for the linked quarter and $1.6 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of two basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the third quarter of 2026, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended | ||||||
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands) | September 30, | June 30, | September 30, | |||
Interest income - increased by accretion of loan discount on acquired loans | $ 800 | $ 1,083 | $ 1,584 | |||
Total interest income impact | 800 | 1,083 | 1,584 | |||
Interest expense - increased by discount accretion on deposits | (43) | (62) | (77) | |||
Interest expense - increased by discount accretion on borrowings | (89) | (87) | (197) | |||
Total net interest expense impact | (132) | (149) | (274) | |||
Total impact on net interest income | $ 668 | $ 934 | $ 1,310 | |||
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SOURCE First Bancorp
