First Bancorp Reports First Quarter Results
First Bancorp (FBNC) reported strong Q1 2025 financial results with net income of $36.4 million, or $0.88 diluted earnings per share, compared to $3.6 million in Q4 2024 and $25.3 million in Q1 2024. Net interest income increased to $92.9 million, with tax-equivalent net interest margin expanding to 3.27%.
Key highlights include reduced noninterest expenses to $57.9 million, strong credit quality with nonperforming assets ratio of 0.27%, and maintained excess capital with common equity tier 1 ratio at 14.53%. The company saw customer deposit growth of $214.1 million and loan growth of $8.4 million during Q1 2025.
The results include a $2.0 million reduction in allowance for credit losses related to Hurricane Helene impacts. The company maintains strong liquidity with a total liquidity ratio of 36.4% and continues to focus on expense management, reducing full-time equivalent employees from 1,371 to 1,353.
First Bancorp (FBNC) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 36,4 milioni di dollari, pari a 0,88 dollari per azione diluita, rispetto a 3,6 milioni nel quarto trimestre 2024 e 25,3 milioni nel primo trimestre 2024. Il reddito netto da interessi è salito a 92,9 milioni di dollari, con un margine netto da interessi al netto delle imposte in aumento al 3,27%.
I punti salienti includono una riduzione delle spese non legate agli interessi a 57,9 milioni di dollari, una solida qualità del credito con un rapporto di attività non performanti dello 0,27%, e il mantenimento di un capitale eccedente con un rapporto common equity tier 1 al 14,53%. L’azienda ha registrato una crescita dei depositi dei clienti di 214,1 milioni di dollari e un aumento dei prestiti di 8,4 milioni nel primo trimestre 2025.
I risultati comprendono una riduzione di 2,0 milioni di dollari nell’accantonamento per perdite su crediti legata agli impatti dell’uragano Helene. La società mantiene una forte liquidità con un rapporto totale di liquidità del 36,4% e continua a concentrarsi sulla gestione delle spese, riducendo il numero di dipendenti equivalenti a tempo pieno da 1.371 a 1.353.
First Bancorp (FBNC) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 36,4 millones de dólares, o 0,88 dólares por acción diluida, en comparación con 3,6 millones en el cuarto trimestre de 2024 y 25,3 millones en el primer trimestre de 2024. El ingreso neto por intereses aumentó a 92,9 millones de dólares, con un margen neto por intereses ajustado por impuestos que se expandió al 3,27%.
Los aspectos destacados incluyen una reducción de los gastos no relacionados con intereses a 57,9 millones de dólares, una sólida calidad crediticia con una tasa de activos improductivos del 0,27%, y el mantenimiento de capital excedente con una ratio de capital común de nivel 1 del 14,53%. La compañía experimentó un crecimiento en los depósitos de clientes de 214,1 millones de dólares y un aumento en los préstamos de 8,4 millones durante el primer trimestre de 2025.
Los resultados incluyen una reducción de 2,0 millones de dólares en la provisión para pérdidas crediticias relacionada con los impactos del huracán Helene. La empresa mantiene una sólida liquidez con una ratio total de liquidez del 36,4% y continúa enfocándose en la gestión de gastos, reduciendo el número equivalente de empleados a tiempo completo de 1.371 a 1.353.
First Bancorp (FBNC)는 2025년 1분기에 3,640만 달러의 순이익과 희석 주당순이익 0.88달러를 기록하며 강력한 재무 성과를 보고했습니다. 이는 2024년 4분기의 360만 달러 및 2024년 1분기의 2,530만 달러와 비교됩니다. 순이자수익은 9,290만 달러로 증가했으며, 세금 환산 순이자마진은 3.27%로 확대되었습니다.
주요 내용으로는 비이자 비용이 5,790만 달러로 감소했고, 부실 자산 비율이 0.27%로 신용 품질이 견고하며, 보통주 자기자본비율(Common Equity Tier 1)이 14.53%로 초과 자본을 유지했다는 점이 있습니다. 2025년 1분기 동안 고객 예금은 2억 1,410만 달러, 대출은 840만 달러 증가했습니다.
결과에는 허리케인 헬렌 영향과 관련된 신용 손실 충당금 200만 달러 감소가 포함되어 있습니다. 회사는 총 유동성 비율 36.4%로 강력한 유동성을 유지하며, 전일제 직원 수를 1,371명에서 1,353명으로 줄이는 등 비용 관리에 계속 집중하고 있습니다.
First Bancorp (FBNC) a publié de solides résultats financiers pour le premier trimestre 2025 avec un bénéfice net de 36,4 millions de dollars, soit un bénéfice dilué par action de 0,88 dollar, contre 3,6 millions au quatrième trimestre 2024 et 25,3 millions au premier trimestre 2024. Le revenu net d’intérêts a augmenté pour atteindre 92,9 millions de dollars, avec une marge nette d’intérêts équivalente fiscale en hausse à 3,27 %.
Les points clés incluent une réduction des charges hors intérêts à 57,9 millions de dollars, une forte qualité du crédit avec un ratio d’actifs non performants de 0,27 %, et le maintien d’un capital excédentaire avec un ratio de fonds propres de base de catégorie 1 à 14,53 %. L’entreprise a enregistré une croissance des dépôts clients de 214,1 millions de dollars et une augmentation des prêts de 8,4 millions au cours du premier trimestre 2025.
Les résultats intègrent une diminution de 2,0 millions de dollars de la provision pour pertes sur créances liée aux impacts de l’ouragan Helene. La société maintient une forte liquidité avec un ratio de liquidité totale de 36,4 % et continue de se concentrer sur la gestion des dépenses, réduisant le nombre d’équivalents temps plein de 1 371 à 1 353.
First Bancorp (FBNC) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 36,4 Millionen US-Dollar bzw. 0,88 US-Dollar verwässertem Gewinn je Aktie, im Vergleich zu 3,6 Millionen im vierten Quartal 2024 und 25,3 Millionen im ersten Quartal 2024. Der Zinsüberschuss stieg auf 92,9 Millionen US-Dollar, wobei die steueräquivalente Nettozinsmarge auf 3,27 % ausgeweitet wurde.
Zu den wichtigsten Highlights zählen reduzierte Zinsaufwendungen auf 57,9 Millionen US-Dollar, eine starke Kreditqualität mit einer Quote notleidender Vermögenswerte von 0,27 % sowie die Aufrechterhaltung eines Überschusskapitals mit einer Common Equity Tier 1 Ratio von 14,53 %. Das Unternehmen verzeichnete im ersten Quartal 2025 ein Wachstum der Kundeneinlagen um 214,1 Millionen US-Dollar und eine Kreditwachstum von 8,4 Millionen US-Dollar.
Die Ergebnisse beinhalten eine Reduzierung der Kreditrisikovorsorge um 2,0 Millionen US-Dollar im Zusammenhang mit den Auswirkungen des Hurrikans Helene. Das Unternehmen hält eine starke Liquidität mit einer Gesamtlagerquote von 36,4 % und konzentriert sich weiterhin auf Kostenmanagement, wobei die Vollzeitäquivalente von 1.371 auf 1.353 reduziert wurden.
- Net income increased significantly to $36.4 million from $3.6 million in previous quarter
- Net interest income grew 17.2% year-over-year to $92.9 million
- Net interest margin expanded to 3.27%, up 47 basis points year-over-year
- Customer deposits grew by $214.1 million in Q1
- Strong credit quality maintained with low 0.27% nonperforming assets ratio
- Reduced operating expenses to $57.9 million, down from $59.2 million year-over-year
- Full-time equivalent employees reduced by 18 positions
- Net charge-offs increased to $3.3 million (0.17% of average loans)
- Noninterest income decreased 5.4% quarter-over-quarter (excluding securities loss)
- Average noninterest bearing deposits declined by $52.6 million
Insights
FBNC's Q1 results show strong earnings growth, margin expansion, and expense control, with healthy credit quality and capital ratios.
First Bancorp delivered exceptional Q1 2025 results, with net income surging to
The bank's net interest margin expansion is particularly impressive - NIM-T/E widened to
FBNC has maintained disciplined expense management, with noninterest expenses decreasing to
Credit quality remains robust with nonperforming assets at just
The balance sheet shows healthy deposit growth of
The bank's strategic positioning looks favorable with its enhanced net interest income, controlled expenses, and excess capital providing flexibility for potential strategic moves in the coming quarters.
The Company continued its efforts to enhance net interest income and net interest margin. The Company recorded net interest income of
First Bancorp also continued to maintain expense control with noninterest expenses contracting to
The results for the first quarter of 2025 include a
Richard H.
First Quarter 2025 Highlights
- NIM-T/E increased 19 basis points to
3.27% for the first quarter of 2025, up from3.08% for the linked quarter and2.80% in the like quarter. The Federal Reserve rate reductions in September, November and December continue to benefit our NIM-T/E. - Total loan yield expanded to
5.52% , up 5 basis points from the linked quarter and 7 basis points from the like quarter. Total cost of funds contracted 11 basis points to1.51% for the quarter ended March 31, 2025 from1.62% for the linked quarter and from1.79% from the like quarter. - The yield on securities increased 32 basis points to
2.28% for the quarter ended March 31, 2025 from1.96% for the linked quarter. The increased yield on the new purchases from the securities loss-earnback transaction benefited less than half of the fourth quarter. - Average deposits were
$10.6 billion $14.5 million $106.9 million $52.6 million 1.46% , a decrease of 11 basis points from1.57% for the linked quarter and 10 basis points from1.56% for the like quarter. The Company continues to maintain a low level of wholesale funding with average borrowings of$92.0 million - We continue to focus on expense management. Noninterest expenses of
$57.9 million $0.4 million $1.3 million $0.7 million $0.4 million - D-EPS was
$0.88 $0.08 $0.61 $0.84 $0.76 $0.61 - Net income was
$36.4 million $34.9 million $31.7 million $25.3 million - We continued to maintain excess capital at March 31, 2025 with a linked quarter increase of 18 basis points in common equity tier 1 ratio to
14.53% (estimated) and a similar 16 basis points linked quarter increase in total risk-based capital ratio to16.79% (estimated). Both of these measures remain well above regulatory minimums or targets. During the first quarter of 2025, the Company repurchased 24,849 shares of common stock for a total cost of$1.0 million - Credit quality remained strong with a nonperforming assets ("NPA") to total assets ratio of
0.27% as of March 31, 2025, a decrease of 3 basis point from the linked quarter. During the first quarter of 2025, the Company recorded net charge offs of$3.3 million 0.17% of average loans. - Loan growth continued during the quarter, with loans totaling
$8.1 billion $8.4 million 0.42% , for the quarter and growth of$26.5 million 0.33% , from March 31, 2024. - Noninterest-bearing demand accounts were
$3.5 billion 32% of total deposits at March 31, 2025. During the first quarter of 2025, customer deposits grew$214.1 million $109.2 million $101.1 million - The on-balance sheet liquidity ratio was
19.8% at March 31, 2025, an increase from17.6% for the linked quarter. Available off-balance sheet sources totaled$2.4 billion 36.4% .
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2025 was
The Company's NIM-T/E for the first quarter of 2025 was
For the Three Months Ended | ||||||
YIELD INFORMATION | March 31, 2025 | December 31, | March 31, 2024 | |||
Yield on loans | 5.52 % | 5.47 % | 5.45 % | |||
Yield on securities | 2.28 % | 1.96 % | 1.78 % | |||
Yield on other earning assets | 4.42 % | 4.49 % | 4.30 % | |||
Yield on total interest-earning assets | 4.65 % | 4.55 % | 4.43 % | |||
Cost of interest-bearing deposits | 2.14 % | 2.31 % | 2.33 % | |||
Cost of borrowings | 7.31 % | 7.66 % | 5.71 % | |||
Cost of total interest-bearing liabilities | 2.21 % | 2.38 % | 2.59 % | |||
Total cost of funds | 1.51 % | 1.62 % | 1.79 % | |||
Cost of total deposits | 1.46 % | 1.57 % | 1.56 % | |||
Net interest margin (1) | 3.25 % | 3.05 % | 2.77 % | |||
Net interest margin - tax-equivalent (2) | 3.27 % | 3.08 % | 2.80 % | |||
Average prime rate | 7.50 % | 7.81 % | 8.50 % | |||
(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 F regarding loan purchase discount accretion and its impact on the Company's NIM-T/E.
Provision for Credit Losses and Credit Quality
For the three months ended March 31, 2025 and March 31, 2024, the Company recorded
Within the portions of Western North and
Asset quality remained strong with annualized net loan charge-offs of
The following table presents the summary of NPAs and asset quality ratios for each period.
ASSET QUALITY DATA ($ in thousands) | March 31, 2025 | December 31, | March 31, 2024 | |||
Nonperforming assets | ||||||
Nonaccrual loans | $ 29,081 | $ 31,779 | $ 35,622 | |||
Accruing loans > 90 days past due | — | — | — | |||
Total nonperforming loans | 29,081 | 31,779 | 35,622 | |||
Foreclosed real estate | 4,769 | 4,965 | 926 | |||
Total nonperforming assets | $ 33,850 | $ 36,744 | $ 36,548 | |||
Asset Quality Ratios | ||||||
Quarterly net charge-offs to average loans - annualized | 0.17 % | 0.04 % | 0.08 % | |||
Nonperforming loans to total loans | 0.36 % | 0.39 % | 0.44 % | |||
Nonperforming assets to total assets | 0.27 % | 0.30 % | 0.30 % | |||
Allowance for credit losses to total loans | 1.49 % | 1.51 % | 1.36 % |
Noninterest Income
Noninterest income totaled
Noninterest Expenses
Noninterest expenses amounted to
The
Income Taxes
Income tax expense totaled
Balance Sheet
Total assets at March 31, 2025 amounted to
Quarterly average balances for key balance sheet components are presented below.
For the Three Months Ended | ||||||||||
AVERAGE BALANCES ($ in thousands) | March 31, | December | March 31, | Change | Change | |||||
Total assets | (0.1) % | 1.0 % | ||||||||
Investment securities, at amortized cost | 2,917,971 | 2,825,154 | 3,108,464 | 3.3 % | (6.1) % | |||||
Loans | 8,107,394 | 7,993,671 | 8,103,387 | 1.4 % | — % | |||||
Earning assets | 11,528,742 | 11,592,480 | 11,489,796 | (0.5) % | 0.3 % | |||||
Deposits | 10,594,140 | 10,608,629 | 10,078,835 | (0.1) % | 5.1 % | |||||
Interest-bearing liabilities | 7,311,002 | 7,272,728 | 7,343,934 | 0.5 % | (0.4) % | |||||
Shareholders' equity | 1,467,871 | 1,466,181 | 1,375,491 | 0.1 % | 6.7 % | |||||
Primarily the result of decreased unrealized losses on the available for sale securities portfolio, total investment securities increased to
Total loans amounted to
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Commercial and industrial | $ 890,071 | 11 % | $ 919,690 | 11 % | $ 872,623 | 11 % | ||||||
Construction, development & other land loans | 644,439 | 8 % | 647,167 | 8 % | 904,216 | 11 % | ||||||
Commercial real estate - owner occupied | 1,233,732 | 15 % | 1,248,812 | 16 % | 1,238,759 | 15 % | ||||||
Commercial real estate - non-owner occupied | 2,701,746 | 34 % | 2,625,554 | 33 % | 2,524,221 | 31 % | ||||||
Multi-family real estate | 512,958 | 6 % | 506,407 | 6 % | 457,142 | 6 % | ||||||
Residential 1-4 family real estate | 1,709,593 | 21 % | 1,729,322 | 21 % | 1,684,173 | 21 % | ||||||
Home equity loans/lines of credit | 341,240 | 4 % | 345,883 | 4 % | 328,466 | 4 % | ||||||
Consumer loans | 68,115 | 1 % | 70,653 | 1 % | 66,666 | 1 % | ||||||
Loans, gross | 8,101,894 | 100 % | 8,093,488 | 100 % | 8,076,266 | 100 % | ||||||
Unamortized net deferred loan fees | 1,139 | 1,188 | 240 | |||||||||
Total loans | $ 8,103,033 | $ 8,094,676 | $ 8,076,506 | |||||||||
Total deposits were
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising
DEPOSIT PORTFOLIO | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Noninterest-bearing checking accounts | $ 3,476,786 | 32 % | $ 3,367,624 | 32 % | $ 3,362,265 | 33 % | ||||||
Interest-bearing checking accounts | 1,448,377 | 14 % | 1,398,395 | 13 % | 1,401,724 | 13 % | ||||||
Money market accounts | 4,386,469 | 41 % | 4,285,405 | 41 % | 3,787,323 | 37 % | ||||||
Savings accounts | 539,632 | 5 % | 542,133 | 5 % | 584,901 | 6 % | ||||||
Other time deposits | 533,723 | 5 % | 566,514 | 5 % | 607,359 | 6 % | ||||||
Time deposits > | 349,990 | 3 % | 360,854 | 4 % | 363,687 | 3 % | ||||||
Total customer deposits | 10,734,977 | 100 % | 10,520,925 | 100 % | 10,107,259 | 98 % | ||||||
Brokered deposits | 9,682 | — % | 9,600 | — % | 196,052 | 2 % | ||||||
Total deposits | 100 % | 100 % | 100 % | |||||||||
As of March 31, 2025 and December 31, 2024, estimated insured deposits totaled
Capital
The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at March 31, 2025 of
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
CAPITAL RATIOS | March 31, 2025 | December 31, | March 31, 2024 | |||
Tangible common equity to tangible assets (non-GAAP) | 8.55 % | 8.22 % | 7.62 % | |||
Common equity tier I capital ratio | 14.53 % | 14.35 % | 13.50 % | |||
Tier I leverage ratio | 11.41 % | 11.15 % | 10.99 % | |||
Tier I risk-based capital ratio | 15.34 % | 15.17 % | 14.29 % | |||
Total risk-based capital ratio | 16.79 % | 16.63 % | 15.85 % |
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 March 31, 2025 was
About First Bancorp
First Bancorp is a bank holding company headquartered in
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 press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
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 D-EPS.
First Bancorp and Subsidiaries | ||||||
Financial Summary | ||||||
CONSOLIDATED INCOME STATEMENT | ||||||
For the Three Months Ended | ||||||
($ in thousands, except per share data - unaudited) | March 31, 2025 | December 31, | March 31, 2024 | |||
Interest income | ||||||
Interest and fees on loans | $ 110,533 | $ 109,835 | $ 109,798 | |||
Interest on investment securities: | ||||||
Taxable interest income | 15,524 | 12,712 | 12,728 | |||
Tax-exempt interest income | 1,116 | 1,116 | 1,117 | |||
Other, principally overnight investments | 5,487 | 8,732 | 2,971 | |||
Total interest income | 132,660 | 132,395 | 126,614 | |||
Interest expense | ||||||
Interest on deposits | 38,119 | 41,786 | 39,135 | |||
Interest on borrowings | 1,658 | 1,768 | 8,205 | |||
Total interest expense | 39,777 | 43,554 | 47,340 | |||
Net interest income | 92,883 | 88,841 | 79,274 | |||
Provision for credit losses | 1,116 | 507 | 1,200 | |||
Net interest income after provision for credit losses | 91,767 | 88,334 | 78,074 | |||
Noninterest income | ||||||
Service charges on deposit accounts | 3,767 | 4,293 | 3,868 | |||
Other service charges and fees | 5,883 | 5,828 | 5,570 | |||
Presold mortgage loan fees and gains on sale | 450 | 676 | 338 | |||
Commissions from sales of financial products | 1,408 | 1,202 | 1,320 | |||
SBA loan sale gains | 52 | 291 | 895 | |||
Bank-owned life insurance income | 1,228 | 1,225 | 1,164 | |||
Securities losses, net | — | (36,820) | (975) | |||
Other Income, net | 114 | 128 | 716 | |||
Total noninterest income | 12,902 | (23,177) | 12,896 | |||
Noninterest expenses | ||||||
Salaries incentives and commissions expense | 28,661 | 28,447 | 27,642 | |||
Employee benefit expense | 6,095 | 6,702 | 6,269 | |||
Total personnel expense | 34,756 | 35,149 | 33,911 | |||
Occupancy and equipment expense | 5,192 | 4,690 | 6,075 | |||
Intangibles amortization expense | 1,516 | 1,563 | 1,759 | |||
Other operating expenses | 16,429 | 16,877 | 17,442 | |||
Total noninterest expenses | 57,893 | 58,279 | 59,187 | |||
Income before income taxes | 46,776 | 6,878 | 31,783 | |||
Income tax expense | 10,370 | 3,327 | 6,511 | |||
Net income | $ 36,406 | $ 3,551 | $ 25,272 | |||
Earnings per common share: | ||||||
Basic | $ 0.88 | $ 0.09 | $ 0.61 | |||
Diluted | 0.88 | 0.08 | 0.61 | |||
First Bancorp and Subsidiaries | ||||||
Financial Summary | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
($ in thousands - unaudited) | March 31, | December 31, | March 31, | |||
Assets | ||||||
Cash and due from banks, noninterest-bearing | $ 149,781 | $ 78,596 | $ 87,181 | |||
Due from banks, interest-bearing | 622,660 | 428,911 | 266,661 | |||
Total cash and cash equivalents | 772,441 | 507,507 | 353,842 | |||
Securities available for sale | 2,064,516 | 2,043,062 | 2,088,483 | |||
Securities held to maturity | 518,265 | 519,998 | 525,627 | |||
Presold mortgages and SBA loans held for sale | 5,166 | 5,942 | 6,703 | |||
Loans | 8,103,033 | 8,094,676 | 8,076,506 | |||
Allowance for credit losses on loans | (120,631) | (122,572) | (110,067) | |||
Net loans | 7,982,402 | 7,972,104 | 7,966,439 | |||
Premises and equipment, net | 141,954 | 143,459 | 150,546 | |||
Accrued interest receivable | 35,452 | 36,329 | 35,147 | |||
Goodwill | 478,750 | 478,750 | 478,750 | |||
Other intangible assets, net | 21,388 | 22,904 | 27,748 | |||
Bank-owned life insurance | 189,597 | 188,460 | 185,061 | |||
Other assets | 226,314 | 229,179 | 273,251 | |||
Total assets | $ 12,436,245 | $ 12,147,694 | $ 12,091,597 | |||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing deposits | $ 3,476,786 | $ 3,367,624 | $ 3,362,265 | |||
Interest-bearing deposits | 7,267,873 | 7,162,901 | 6,941,046 | |||
Total deposits | 10,744,659 | 10,530,525 | 10,303,311 | |||
Borrowings | 92,055 | 91,876 | 332,335 | |||
Accrued interest payable | 4,935 | 4,604 | 9,847 | |||
Other liabilities | 86,420 | 75,078 | 70,005 | |||
Total liabilities | 10,928,069 | 10,702,083 | 10,715,498 | |||
Shareholders' equity | ||||||
Common stock | 971,174 | 971,313 | 965,429 | |||
Retained earnings | 783,630 | 756,327 | 732,643 | |||
Stock in rabbi trust assumed in acquisition | (1,166) | (1,148) | (1,396) | |||
Rabbi trust obligation | 1,166 | 1,148 | 1,396 | |||
Accumulated other comprehensive loss | (246,628) | (282,029) | (321,973) | |||
Total shareholders' equity | 1,508,176 | 1,445,611 | 1,376,099 | |||
Total liabilities and shareholders' equity | $ 12,436,245 | $ 12,147,694 | $ 12,091,597 | |||
First Bancorp and Subsidiaries | ||||||||||
Financial Summary | ||||||||||
TREND INFORMATION | ||||||||||
For the Three Months Ended | ||||||||||
March 31, | December | September | June 30, | March 31, | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||
Return on average assets (1) | 1.21 % | 0.12 % | 0.61 % | 0.96 % | 0.84 % | |||||
Return on average common equity (2) | 10.06 % | 0.96 % | 5.14 % | 8.38 % | 7.39 % | |||||
Return on average tangible common equity (3) | 15.54 % | 1.93 % | 8.30 % | 13.60 % | 12.13 % | |||||
COMMON SHARE DATA | ||||||||||
Cash dividends declared - common | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | |||||
Book value per common share | $ 36.46 | $ 34.96 | $ 35.74 | $ 34.10 | $ 33.44 | |||||
Tangible book value per share (4) | $ 24.69 | $ 23.17 | $ 23.91 | $ 22.19 | $ 21.49 | |||||
Common shares outstanding at end of period | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | 41,156,286 | |||||
Weighted average shares outstanding - diluted | 41,406,525 | 41,422,973 | 41,366,743 | 41,262,091 | 41,249,636 | |||||
CAPITAL INFORMATION (estimates for current quarter) | ||||||||||
Tangible common equity to tangible assets (5) | 8.55 % | 8.22 % | 8.47 % | 7.90 % | 7.62 % | |||||
Common equity tier I capital ratio | 14.53 % | 14.35 % | 14.37 % | 13.99 % | 13.50 % | |||||
Total risk-based capital ratio | 16.79 % | 16.63 % | 16.65 % | 16.24 % | 15.85 % | |||||
(1) Calculated by dividing annualized net income by average assets. | ||||||||||
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for the components of the calculation. | ||||||||||
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for the components of the calculation and the reconciliation of average common equity to average TCE. | ||||||||||
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation. | ||||||||||
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation. |
For the Three Months Ended | ||||||||||
INCOME STATEMENT ($ in thousands except per share data) | March 31, | December | September | June 30, | March 31, | |||||
Net interest income - tax-equivalent (1) | $ 93,320 | $ 89,587 | $ 83,765 | $ 81,848 | $ 80,005 | |||||
Taxable equivalent adjustment (1) | 437 | 746 | 722 | 733 | 731 | |||||
Net interest income | 92,883 | 88,841 | 83,043 | 81,115 | 79,274 | |||||
Provision for credit losses | 1,116 | 507 | 14,200 | 541 | 1,200 | |||||
Noninterest income | 12,902 | (23,177) | 13,579 | 14,601 | 12,896 | |||||
Noninterest expense | 57,893 | 58,279 | 59,850 | 58,291 | 59,187 | |||||
Income before income taxes | 46,776 | 6,878 | 22,572 | 36,884 | 31,783 | |||||
Income tax expense | 10,370 | 3,327 | 3,892 | 8,172 | 6,511 | |||||
Net income | 36,406 | 3,551 | 18,680 | 28,712 | 25,272 | |||||
Earnings per common share - diluted | $ 0.88 | $ 0.08 | $ 0.45 | $ 0.70 | $ 0.61 | |||||
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming the expected tax rate and is reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries | |||||||||||||||||
Financial Summary | |||||||||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||||||
($ 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) | $ 8,107,394 | $ 110,533 | 5.52 % | $ 7,993,671 | $ 109,835 | 5.47 % | $ 8,103,387 | $ 109,798 | 5.45 % | ||||||||
Taxable securities | 2,629,066 | 15,524 | 2.36 % | 2,535,232 | 12,712 | 2.01 % | 2,815,266 | 12,728 | 1.81 % | ||||||||
Non-taxable securities | 288,905 | 1,116 | 1.55 % | 289,922 | 1,116 | 1.54 % | 293,198 | 1,117 | 1.52 % | ||||||||
Short-term investments, primarily interest-bearing cash | 503,377 | 5,487 | 4.42 % | 773,655 | 8,732 | 4.49 % | 277,945 | 2,971 | 4.30 % | ||||||||
Total interest-earning assets | 11,528,742 | 132,660 | 4.65 % | 11,592,480 | 132,395 | 4.55 % | 11,489,796 | 126,614 | 4.43 % | ||||||||
Cash and due from banks | 133,756 | 80,481 | 90,833 | ||||||||||||||
Premises and equipment | 143,064 | 144,467 | 151,159 | ||||||||||||||
Other assets | 421,248 | 426,343 | 379,413 | ||||||||||||||
Total assets | $ 12,226,810 | $ 12,243,771 | $ 12,111,201 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,431,556 | $ 2,497 | 0.71 % | $ 1,389,063 | $ 2,438 | 0.70 % | $ 1,403,484 | $ 2,359 | 0.68 % | ||||||||
Money market deposits | 4,337,560 | 29,180 | 2.73 % | 4,273,170 | 31,430 | 2.93 % | 3,704,731 | 27,813 | 3.02 % | ||||||||
Savings deposits | 539,104 | 240 | 0.18 % | 542,861 | 269 | 0.20 % | 592,395 | 308 | 0.21 % | ||||||||
Other time deposits | 558,648 | 3,353 | 2.43 % | 598,152 | 4,192 | 2.79 % | 709,517 | 5,456 | 3.09 % | ||||||||
Time deposits > | 352,174 | 2,849 | 3.28 % | 377,693 | 3,457 | 3.64 % | 355,809 | 3,199 | 3.62 % | ||||||||
Total interest-bearing deposits | 7,219,042 | 38,119 | 2.14 % | 7,180,939 | 41,786 | 2.31 % | 6,765,936 | 39,135 | 2.33 % | ||||||||
Borrowings | 91,960 | 1,658 | 7.31 % | 91,789 | 1,768 | 7.66 % | 577,998 | 8,205 | 5.71 % | ||||||||
Total interest-bearing liabilities | 7,311,002 | 39,777 | 2.21 % | 7,272,728 | 43,554 | 2.38 % | 7,343,934 | 47,340 | 2.59 % | ||||||||
Noninterest-bearing checking | 3,375,098 | 3,427,690 | 3,312,899 | ||||||||||||||
Other liabilities | 72,839 | 77,172 | 78,877 | ||||||||||||||
Shareholders' equity | 1,467,871 | 1,466,181 | 1,375,491 | ||||||||||||||
Total liabilities and shareholders' equity | $ 12,226,810 | $ 12,243,771 | $ 12,111,201 | ||||||||||||||
Net yield on interest-earning assets and net interest income | $ 92,883 | 3.25 % | $ 88,841 | 3.05 % | $ 79,274 | 2.77 % | |||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | $ 93,320 | 3.27 % | $ 89,587 | 3.08 % | $ 80,005 | 2.80 % | |||||||||||
Interest rate spread | 2.44 % | 2.17 % | 1.84 % | ||||||||||||||
Average prime rate | 7.50 % | 7.81 % | 8.50 % | ||||||||||||||
(1) | Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of |
(2) | Includes accretion of discount on acquired loans of |
(3) | Includes tax-equivalent adjustments to reflect the 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: Calculation of Return on TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Net Income | $ 36,406 | $ 3,551 | $ 18,680 | $ 28,712 | $ 25,272 | |||||
Intangible asset amortization, net of taxes | 1,159 | 1,195 | 1,240 | 1,283 | 1,352 | |||||
Tangible Net income | $ 37,565 | $ 4,746 | $ 19,920 | $ 29,995 | $ 26,624 | |||||
Average common equity | ||||||||||
Less: Average goodwill and other intangibles, net of related taxes | (487,395) | (488,624) | (489,987) | (491,318) | (492,733) | |||||
Average tangible common equity | $ 980,476 | $ 977,557 | $ 955,042 | $ 886,966 | $ 882,757 | |||||
Return on average common equity | 10.06 % | 0.96 % | 5.14 % | 8.38 % | 7.39 % | |||||
Return on average tangible common equity | 15.54 % | 1.93 % | 8.30 % | 13.60 % | 12.13 % | |||||
APPENDIX B: Reconciliation of Common Equity to TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Total shareholders' common equity | $ 1,508,176 | $ 1,445,611 | $ 1,477,525 | $ 1,404,342 | $ 1,376,099 | |||||
Less: Goodwill and other intangibles, net of related taxes | (486,749) | (487,660) | (489,139) | (490,439) | (491,740) | |||||
Tangible common equity | $ 1,021,427 | $ 957,951 | $ 988,386 | $ 913,903 | $ 884,359 | |||||
APPENDIX C: Tangible Book Value Per Share | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands except per share data) | March 31, | December | September | June 30, | March 31, | |||||
Tangible common equity (Appendix B) | $ 1,021,427 | $ 957,951 | $ 988,386 | $ 913,903 | $ 884,359 | |||||
Common shares outstanding | 41,368,828 | 41,347,418 | 41,340,099 | 41,187,943 | 41,156,286 | |||||
Tangible book value per common share | $ 24.69 | $ 23.17 | $ 23.91 | $ 22.19 | $ 21.49 | |||||
APPENDIX D: TCE Ratio | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | March 31, | December | September | June 30, | March 31, | |||||
Tangible common equity (Appendix B) | $ 957,951 | $ 988,386 | $ 913,903 | $ 884,359 | ||||||
Total assets | 12,436,245 | 12,147,694 | 12,153,430 | 12,060,805 | 12,091,597 | |||||
Less: Goodwill and other intangibles, net of related taxes | (486,749) | (487,660) | (489,139) | (490,439) | (491,740) | |||||
Tangible assets ("TA") | $ 11,949,496 | $ 11,660,034 | $ 11,664,291 | $ 11,570,366 | $ 11,599,857 | |||||
TCE to TA ratio | 8.55 % | 8.22 % | 8.47 % | 7.90 % | 7.62 % | |||||
Reconciliation of non-GAAP measures, continued | ||||||
APPENDIX E: Adjusted EPS - diluted | ||||||
For the Three Months Ended | ||||||
($ in thousands) | March 31, 2025 | December 31, | March 31, 2024 | |||
Net income | $ 36,406 | $ 3,551 | $ 25,272 | |||
Impact of Hurricane Helene | ||||||
Provision for (benefit from) credit losses | (2,000) | — | — | |||
Building repairs and maintenance | — | (24) | — | |||
Other | — | (3) | — | |||
Total | (2,000) | (27) | — | |||
Less, tax impact | 464 | 6 | — | |||
After-tax impact of Hurricane Helene | (1,536) | (21) | — | |||
Impact of loss-earnback | ||||||
Securities loss from loss-earnback | — | 36,820 | — | |||
Less, tax impact | — | (8,660) | — | |||
After-tax impact of loss-earnback | — | 28,160 | — | |||
Adjusted net income | $ 34,870 | $ 31,690 | $ 25,272 | |||
Weighted average shares outstanding - diluted | 41,406,525 | 41,422,973 | 41,249,636 | |||
EPS - diluted | $ 0.88 | $ 0.08 | $ 0.61 | |||
Adjusted EPS - diluted | $ 0.84 | $ 0.76 | $ 0.61 | |||
Supplemental information
APPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM-T/E
Included in interest income for the first quarter of 2025 was loan purchase accounting discount accretion of
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) | March 31, 2025 | December 31, | March 31, 2024 | |||
Interest income - increased by accretion of loan discount on acquired loans | $ 1,789 | $ 2,195 | $ 2,437 | |||
Total interest income impact | 1,789 | 2,195 | 2,437 | |||
Interest expense - increased by discount accretion on deposits | (103) | (145) | (283) | |||
Interest expense - increased by discount accretion on borrowings | (191) | (195) | (189) | |||
Total net interest expense impact | (294) | (340) | (472) | |||
Total impact on net interest income | $ 1,495 | $ 1,855 | $ 1,965 | |||
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SOURCE First Bancorp
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