First Bancorp Reports First Quarter Results

Rhea-AI Summary

First Bancorp (FBNC) reported a net income of $15.2 million, or $0.37 per diluted share, for Q1 2023, down from $38.4 million in Q4 2022 and $34.0 million in Q1 2022. The decline was attributed to $12.2 million in merger expenses related to the acquisition of GrandSouth Bancorporation, which contributed $1.02 billion in loans and $1.05 billion in deposits. Despite these charges, First Bancorp experienced organic loan growth of $113.7 million, and total deposits grew $95.2 million. The company maintained a strong liquidity ratio of 26.2% and an impressive capital ratio of 14.33%. Nonperforming assets decreased to 0.25% of total assets, reflecting ongoing credit quality improvements.

Positive

• Organic loan growth of $113.7 million, representing a 5.9% annualized growth rate.
• Total deposits increased by $95.2 million, showing a 3.7% annualized organic growth rate.
• Strong liquidity ratio at 26.2%, exceeding 30% when including off-balance sheet sources.
• Nonperforming assets ratio improved to 0.25%, down from 0.46% in Q1 2022.

Negative

• Net income decreased significantly from $38.4 million in Q4 2022 to $15.2 million in Q1 2023.
• Incurred $12.2 million in merger-related expenses due to GrandSouth acquisition.
• Total noninterest income declined by 29.7% compared to Q1 2022.

SOUTHERN PINES, N.C., April 26, 2023 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, announced today net income of $15.2 million, or $0.37 per diluted common share, for the three months ended March 31, 2023 compared to $38.4 million, or $1.08 per diluted common share for the three months ended December 31, 2022 ("linked quarter") and $34.0 million, or $0.95 per diluted common share, recorded in the first quarter of 2022. 

The primary driver of the reduced earnings for the first quarter of 2023 as compared to the linked quarter and the same period last year was the charges associated with the Company's acquisition of GrandSouth Bancorporation ("GrandSouth") on January 1, 2023, including merger expenses totaling $12.2 million and a one-time loan loss provision of $12.2 million to establish an initial allowance for credit losses for acquired loans in accordance with our CECL model.  Generally, comparisons for the financial periods presented are significantly impacted by the GrandSouth acquisition which contributed $1.02 billion in loans and $1.05 billion in deposits.  Eight new branch offices were added throughout South Carolina with the acquisition and core processing systems were converted during the quarter. 

Richard H. Moore, CEO and Chairman of the Company, stated, "During a quarter with heightened market volatility and the acquisition and conversion of GrandSouth, we nevertheless grew loans and deposits organically, improved our credit quality, and increased our liquidity position.  Our focus on balance sheet management has ensured that we are optimally positioned to weather the uncertain economic environment.  We continue to value the strong deposit base we have cultivated throughout our footprint over the course of our 88-year history as we welcome our newest First Bank customers in South Carolina."

First Quarter 2023 Highlights

• Loans totaled $7.8 billion at March 31, 2023, with acquired balances contributing $1.02 billion to first quarter growth; organic growth was $113.7 million for an annualized growth rate (exclusive of acquired loans) of 5.9%.
• Total deposits, exclusive of acquired balances of $1.05 billion, grew $95.2 million for the quarter, an annualized organic growth rate (exclusive of acquired deposits) of 3.7%.
• Tax equivalent net interest margin remained essentially flat with the linked quarter at 3.31% with higher loan yields and increased loan discount accretion offsetting higher cost of funds.
• Total loan yield increased to 5.22%, up 60 basis points from the linked quarter, with accretion on purchased loans contributing 21 basis points to loan yield; market rate increases and improved pricing on new loans  also contributed to the higher yields. 
• Total cost of funds increased to 0.94%, up 58 basis points from the linked quarter, with increases in both deposit costs and borrowing costs related to higher market rates.
• Liquidity ratio increased to 26.2% at March 31, 2023 and was in excess of 30% when including available off-balance sheet sources.
• Credit quality continues to be strong with decreases in nonperforming assets ("NPA") for the fifth straight quarter.  The NPA to total assets ratio declined to 0.25% as of March 31, 2023 from 0.46% for the comparable period of 2022.
• Capital remains strong with a total common equity tier 1 ratio of 12.03% and a total risk-based capital ratio of 14.33% as of March 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2023 was $92.5 million, a 20.3% increase from the $76.9 million recorded in the first quarter of 2022 and a 9.6% increase from the linked quarter.  The increase in net interest income from the prior year period was due in large part to higher earning assets related to both organic growth and the GrandSouth acquisition.  Average interest-earning assets for the first quarter of 2023 increased 16.5% from the comparable period of the prior year, with growth primarily in loans.

Also contributing to the increase in net interest income year-over-year was the higher net interest margin ("NIM").  The Company's tax-equivalent NIM (calculated by dividing tax-equivalent net interest income by average earning assets) for the first quarter of 2023 was 3.31% compared to 3.21% for the first quarter of 2022.  The higher NIM was driven by the increase in market interest rates between periods with loan yields increasing from 4.30% for the first quarter of 2022 to 5.22% for the current period. Partially offsetting the rise in asset yields was the increase in total cost of funds which was 0.94% for the quarter ended March 31, 2023, up from 0.36% in the linked quarter and 0.10% in the same period in the prior year.

	For the Three Months Ended
YIELD INFORMATION	March 31, 2023		December 31, 2022		March 31, 2022
Yield on loans	5.22 %		4.62 %		4.30 %
Yield on securities	1.78 %		1.74 %		1.76 %
Yield on other earning assets	3.47 %		3.05 %		0.55 %
Yield on all interest-earning assets	4.16 %		3.64 %		3.27 %
Rate on interest bearing deposits	1.19 %		0.44 %		0.12 %
Rate on other interest-bearing liabilities	5.34 %		4.58 %		2.77 %
Rate on all interest-bearing liabilities	1.46 %		0.60 %		0.15 %
Total cost of funds	0.94 %		0.36 %		0.10 %
Net interest margin (1)	3.28 %		3.29 %		3.18 %
Net interest margin - tax-equivalent (2)	3.31 %		3.32 %		3.21 %
Average prime rate	7.69 %		6.82 %		3.29 %
(1)  Calculated by dividing annualized net interest income by average earning assets for the period.
(2)  Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent  amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status.  This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

Included in interest income for the first quarter of 2023 was total loan discount accretion of $3.6 million, compared to $1.3 million for the linked quarter and $2.3 million for the first quarter of 2022.  The increase in loan discount accretion was related to the GrandSouth acquisition and had a 13 basis point positive impact on the Company's NIM in the first quarter of 2023 compared to accretion contributing 5 basis points and 10 basis points, respectively, to NIM for the linked quarter and the prior year 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)	March 31, 2023		December 31, 2022		March 31, 2022
Interest income - increased by accretion of loan discount on acquired loans	$             3,118		886		1,671
Interest income - increased by accretion of loan discount on retained portions of SBA loans	448		427		667
Total interest income impact	3,566		1,313		2,338
Interest expense - (increased) reduced by (discount accretion) premium amortization of deposits	(1,019)		70		234
Interest expense - increased by discount accretion of borrowings	(82)		(64)		(73)
Total net interest expense impact	(1,101)		6		161
Total impact on net interest income	$             2,465		1,319		2,499

Provision for Credit Losses and Credit Quality

For the three months ended March 31, 2023, the Company recorded $11.5 million in provision for loan losses which is compared to a provision of $3.5 million for the first quarter of 2022.  The provision for the current quarter was directly related to a one-time provision of $12.2 million for non-credit deteriorated loans acquired from GrandSouth, partially offset by fluctuations in our CECL model calculation for loan balance changes and updated economic forecasts during the first quarter of 2023. 

Also related to the GrandSouth acquisition, the Company recorded $1.1 million in provision for unfunded commitments during the first quarter of 2023.  The reserve for unfunded commitments totaled $14.4 million at March 31, 2023 and is included in the line item "Other Liabilities".

Asset quality remained strong with annualized net loan charge-offs of 0.09% for the first quarter of 2023.  Total NPAs amounted to $31.1 million at March 31, 2023, or 0.25% of total assets, down from $38.3 million at the end of the linked quarter, and $48.9 million, or 0.46% of total assets, at March 31, 2022.  The decline was due in part to the Company's adoption of ASU 2022-02 which eliminated the accounting for troubled debt restructurings and replaced it with disclosures for loan modification to borrowers experiencing financial difficulty as presented in the following table.

ASSET QUALITY DATA ($ in thousands)	March 31, 2023		December 31, 2022		March 31, 2022
Nonperforming assets
Nonaccrual loans	$            28,059		28,514		33,460
Troubled debt restructurings - accruing (1)	—		9,121		12,727
Modifications to borrowers in financial distress	2,224		—		—
Total nonperforming loans	30,283		37,635		46,187
Foreclosed real estate	789		658		2,750
Total nonperforming assets	$            31,072		38,293		48,937
Asset Quality Ratios
Quarterly net charge-offs (recoveries) to average loans - annualized	0.09 %		(0.02) %		0.01 %
Nonperforming loans to total loans	0.39 %		0.56 %		0.76 %
Nonperforming assets to total assets	0.25 %		0.36 %		0.46 %
Allowance for credit losses to total loans	1.36 %		1.36 %		1.35 %
(1)  The Company implemented ASU 2022-02 effective January 1, 2023 eliminating TDR accounting.

Noninterest Income

Total noninterest income for the first quarter of 2023 was $13.5 million, a 29.7% decrease from the $19.3 million recorded for the first quarter of 2022 and a 7.0% decrease from the linked quarter.  The primary factors driving fluctuations among the periods presented were as follows:

• Fluctuations in "Service charges on deposit accounts" between periods were driven by increases in the number of new customers and transaction accounts related to the GrandSouth acquisition, combined with continued organic growth in transaction accounts.  Partially offsetting the growth as compared to the linked quarter were lower NSF charges as the Company discontinued charging consumers for this service effective February 1, 2023.
• Fluctuations in "Other service charges, commissions and fees" were related to higher volumes of activity in each period offset by lower interchange fees beginning in July 2022 as a result of the Durbin Amendment limitations becoming applicable to the Company.
• Fees from presold mortgages amounted to $0.4 million for the first quarter of 2023, a decrease of 63.8% from the $1.1 million recorded in the first quarter of 2022 and an increase of $0.3 million over the linked quarter.  Mortgage loan refinancing and origination volumes continued to be low in the first quarter of 2023 in large part due to increases in mortgage interest rates since early 2022.
• SBA loan sale gains amounted to $0.3 million for the first quarter of 2023 compared to $3.3 million in the first quarter of 2022 and $0.5 million for the linked quarter.  The decrease was related to slower loan originations and the lower premiums available on SBA loan sales given the current market interest rates, resulting in the Company retaining a higher percentage of originations in the first quarter of 2023.
• Other gains for both the linked quarter and the prior year quarter included death benefits realized on bank-owned life insurance policies.  There were no large or unusual transactions in the first quarter of 2023 giving rise to gains or losses.

Noninterest Expenses

Noninterest expenses amounted to $74.2 million for the first quarter of 2023 compared to $45.7 million for the linked quarter and $51.5 million for the first quarter of 2022.  The 62.5% increase in noninterest expenses from the linked quarter and the 44.1% increase from the prior year period were driven by merger and acquisition expenses of $12.2 million and higher intangible amortization resulting from the GrandSouth acquisition. 

In addition to direct merger-related expenses, the Company realized higher salary and benefit expenses and occupancy expenses related to the eight acquired GrandSouth branch locations and related branch and support personnel.  Other operating expenses increased $9.0 million for the quarter ended March 31, 2023 as compared to the linked quarter and $5.8 million from the prior year quarter.  The primary factors driving increases between the periods included: 

• A one-time charge of $2.4 million for the estimated termination costs associated with the Company's pension plan which we anticipate exiting during the fourth quarter of 2023.
• Accrual adjustments in the fourth quarter of 2022 of approximately $3.6 million, primarily related to reversal of expired Mastercard Rewards Points, which reduced expenses in that period thus contributing to the increase between periods.
• Increases in the first quarter of 2023 for data processing, software expense, advertising and FDIC insurance related to the GrandSouth acquisition, including the transition of new customers and integration of core processing systems.

Balance Sheet

Total assets at March 31, 2023 amounted to $12.4 billion, growing approximately 16% from both the linked quarter and a year earlier.  The growth was driven by the acquisition of GrandSouth, combined with organic loan and deposit growth during the quarter.  Quarterly average balances for key balance sheet accounts are presented below.

	For the Three Months Ended
AVERAGE BALANCES ($ in thousands)	March 31, 2023		December 31, 2022		March 31, 2022		Change 1Q23 vs 1Q22
Total assets	$         12,042,298		10,579,187		10,564,419		14.0 %
Investment securities	3,321,240		3,325,652		3,283,845		1.1 %
Loans	7,728,424		6,576,415		6,051,487		27.7 %
Earning assets	11,428,789		10,161,108		9,814,193		16.5 %
Deposits	10,216,908		9,275,909		9,220,352		10.8 %
Interest-bearing liabilities	6,866,646		5,779,958		5,852,296		17.3 %
Shareholders' equity	1,273,435		1,003,031		1,210,122		5.2 %

Total investment securities of $2.8 billion at March 31, 2023 were fairly consistent with year end and decreased $401.1 million from March 31, 2022.  The decline in investment securities from the prior year was due in large part to the utilization of cash flows from amortizing investments to fund loan growth and fluctuations in deposits.  The unrealized loss on available for sale securities totaled $408.7 million, representing an improvement of $35.3 million from year end related to favorable movements in market rates.  The Company has the intent and ability to hold investments with unrealized losses until maturity or recovery of the amortized cost as market conditions change.

Total loans amounted to $7.8 billion at March 31, 2023, an increase of $1.7 billion, or 28.6%, from March 31, 2022, and total loan growth of $1.1 billion from year end.  Exclusive of the GrandSouth acquisition, organic growth was $113.7 million for the first quarter of 2023, representing an annualized growth rate of 5.9%.  Our total loan portfolio mix has remained fairly consistent and we have no notable concentrations in geographies or industries, including in office or hospitality categories.

	March 31, 2023				December 31, 2022				March 31, 2022
($ in thousands)	Amount		% of Total Loans		Amount		% of Total Loans		Amount		% of Total Loans
Commercial and industrial	$     885,032		11 %		641,941		9 %		603,454		10 %
Construction, land development & other land loans	1,092,026		14 %		934,176		14 %		795,886		13 %
Residential (1-4 family) first mortgages	1,386,580		18 %		1,195,785		18 %		1,045,167		17 %
Home equity loans/lines of credit	342,287		4 %		323,726		5 %		329,348		5 %
Commercial real estate - owner occupied	1,200,744		16 %		1,036,270		16 %		1,007,219		17 %
Commercial real estate - non owner occupied	2,825,514		36 %		2,473,991		37 %		2,227,730		37 %
Consumer loans	68,056		1 %		60,659		1 %		56,822		1 %
Loans, gross	7,800,239		100 %		6,666,548		100 %		6,065,626		100 %
Unamortized net deferred loan fees	(1,276)				(1,403)				(928)
Total loans	$  7,798,963				6,665,145				6,064,698

Total deposits amounted to $10.4 billion at March 31, 2023, an increase of $987.5 million, or 10.5%, from March 31, 2022 and total deposit growth of $1.1 billion from year end.  Exclusive of the GrandSouth acquisition, organic growth was $95.2 million for the first quarter of 2023, representing an annualized growth rate of 3.7%. The Company has a diversified and granular deposit base which has remained stable with continued growth in core deposits, primarily non-interest bearing checking accounts and money market accounts. 

At quarter end, non-interest bearing deposits accounted for 36% of total deposits with the change from the linked quarter related to the GrandSouth acquisition.  As of March 31, 2023, the estimated total insured or collateralized deposits were approximately 69%. 

Our deposit mix has remained fairly consistent historically and has not significantly changed with the addition of GrandSouth as presented in the table below.

	March 31, 2023				December 31, 2022				March 31, 2022
($ in thousands)	Amount		% of Total		Amount		% of Total		Amount		% of Total
Noninterest-bearing checking accounts	$      3,763,637		36 %		3,566,003		39 %		3,593,642		38 %
Interest-bearing checking accounts	1,526,333		15 %		1,514,166		16 %		1,577,197		17 %
Money market accounts	3,126,571		30 %		2,416,146		26 %		2,636,913		28 %
Savings accounts	705,669		7 %		728,641		8 %		735,659		8 %
Other time deposits	624,444		6 %		464,343		5 %		529,347		6 %
Time deposits >$250,000	342,447		3 %		276,319		3 %		312,389		3 %
Total customer deposits	10,089,101		97 %		8,965,618		97 %		9,385,147		100 %
Brokered deposits	283,497		3 %		261,911		3 %		—		— %
Total deposits	$    10,372,598		100 %		9,227,529		100 %		9,385,147		100 %

Capital and Liquidity

The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at March 31, 2023 of 14.33%, down from 14.99% reported at March 31, 2022.  This decrease related primarily to asset growth and the GrandSouth acquisition. 

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 to tangible assets ratio which was 6.60% at March 31, 2023, an increase of 21 basis points from the linked quarter.  AOCI at March 31, 2023 improved $27.9 million compared to December 31, 2022 reflecting the reduction in unrealized loss on available for sale securities from the favorable impact of interest rate changes.

	March 31, 2023 (estimated)		December 31, 2022		March 31, 2022
CAPITAL RATIOS
Tangible common equity to tangible assets (non-GAAP)	6.60 %		6.39 %		7.17 %
Common equity tier I capital ratio	12.03 %		13.02 %		12.85 %
Tier I leverage ratio	10.28 %		10.51 %		9.60 %
Tier I risk-based capital ratio	12.79 %		13.83 %		13.74 %
Total risk-based capital ratio	14.33 %		15.09 %		14.99 %

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities, and other marketable assets) and off-balance sheet (readily available lines of credit or other funding sources).  We continue to manage our liquidity sources, including unused lines of credit, at levels we believe to be adequate to meet our operating needs in the foreseeable future.  The Company's liquidity ratio (net liquid assets as a percent of net liabilities) at March 31, 2023 was in excess of 26%.  In addition, we had approximately $786 million in available lines of credit at that date resulting in a total liquidity ratio of 30.5%.

∗∗∗

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.4 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 118 branches in North Carolina and South Carolina.  First Bank also provides SBA loans to customers through its nationwide network of lenders - for more information on First Bank's SBA lending capabilities, please visit www.firstbanksba.com.  First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Please visit our website at www.LocalFirstBank.com.

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.

First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED INCOME STATEMENT ($ in thousands, except per share data)
		For the Three Months Ended
		3/31/2023 (unaudited)		12/31/2022 (unaudited)		3/31/2022 (unaudited)
Interest income
Interest and fees on loans		$               99,380		76,509		64,202
Interest on investment securities		14,546		14,611		14,258
Other interest income		3,248		1,991		649
Total interest income		117,174		93,111		79,109
Interest expense
Interest on deposits		18,918		6,145		1,771
Interest on borrowings		5,770		2,594		460
Total interest expense		24,688		8,739		2,231
Net interest income		92,486		84,372		76,878
Provision for loan losses		11,451		4,000		3,500
Provision for (reversal of)  unfunded commitments		1,051		1,000		(1,500)
Total provision for credit losses		12,502		5,000		2,000
Net interest income after provision for credit losses		79,984		79,372		74,878
Noninterest income
Service charges on deposit accounts		3,894		4,116		3,541
Other service charges, commissions, and fees		5,920		5,094		7,005
Fees from presold mortgage loans		406		151		1,121
Commissions from sales of insurance and financial products		1,306		1,708		945
SBA consulting fees		521		645		780
SBA loan sale gains		255		495		3,261
Bank-owned life insurance income		1,046		967		976
Other gains, net		188		1,382		1,622
Total noninterest income		13,536		14,558		19,251
Noninterest expenses
Salaries expense		29,321		24,652		23,454
Employee benefit expense		6,393		5,353		5,578
Occupancy and equipment related expense		5,067		4,433		4,688
Merger and acquisition expenses		12,182		303		3,484
Intangibles amortization expense		2,145		825		1,017
Foreclosed property net gains		(35)		—		(80)
Other operating expenses		19,102		10,091		13,324
Total noninterest expenses		74,175		45,657		51,465
Income before income taxes		19,345		48,273		42,664
Income tax expense		4,184		9,840		8,695
Net income		$               15,161		38,433		33,969
Earnings per common share - diluted		$                   0.37		1.08		0.95
ADDITIONAL INCOME STATEMENT INFORMATION
Net interest income, as reported		$               92,486		84,372		76,878
Tax-equivalent adjustment (1)		700		722		697
Net interest income, tax-equivalent		$               93,186		85,094		77,575

(1)

This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status.  This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

 

First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS ($ in thousands)
	At March 31, 2023 (unaudited)		At December 31, 2022 (audited)		At March 31, 2022 (unaudited)
Assets
Cash and due from banks	$             102,691		101,133		124,785
Interest-bearing deposits with banks	610,691		169,185		440,974
Total cash and cash equivalents	713,382		270,318		565,759
Investment securities	2,830,060		2,856,193		3,231,138
Presold mortgages in process of settlement	2,951		1,282		5,672
SBA loans held for sale	2,933		—		3,630
Loans	7,798,963		6,665,145		6,064,698
Allowance for credit losses on loans	(106,396)		(90,967)		(82,069)
Net loans	7,692,567		6,574,178		5,982,629
Premises and equipment	152,790		134,187		135,482
Operating right-of-use lease assets	18,898		18,733		20,380
Intangible assets	518,012		376,938		381,191
Foreclosed properties	789		658		2,750
Bank-owned life insurance	180,730		164,592		164,273
Other assets	250,037		227,970		159,156
Total assets	$        12,363,149		10,625,049		10,652,060
Liabilities
Deposits:
Noninterest-bearing checking accounts	3,763,637		3,566,003		3,593,642
Interest-bearing deposit accounts	6,608,961		5,661,526		5,791,505
Total deposits	10,372,598		9,227,529		9,385,147
Borrowings	606,481		287,507		67,415
Operating lease liabilities	19,638		19,391		20,903
Other liabilities	64,471		59,026		61,105
Total liabilities	11,063,188		9,593,453		9,534,570
Shareholders' equity
Common stock	959,422		725,153		723,441
Retained earnings	654,573		648,418		559,004
Stock in rabbi trust assumed in acquisition	(1,608)		(1,585)		(1,814)
Rabbi trust obligation	1,608		1,585		1,814
Accumulated other comprehensive loss	(314,034)		(341,975)		(164,955)
Total shareholders' equity	1,299,961		1,031,596		1,117,490
Total liabilities and shareholders' equity	$        12,363,149		10,625,049		10,652,060

 

First Bancorp and Subsidiaries
Financial Summary
	For the Three Months Ended
PERFORMANCE RATIOS (annualized)	March 31, 2023		December 31, 2022		March 31, 2022
Return on average assets (1)	0.51 %		1.44 %		1.30 %
Return on average common equity (2)	4.83 %		15.20 %		11.38 %
Return on average tangible common equity (3)	8.16 %		20.96 %		16.63 %
COMMON SHARE DATA
Cash dividends declared - common	$          0.22		0.22		0.22
Stated book value - common	31.72		28.89		31.36
Tangible book value - common (non-GAAP)	19.08		18.34		20.66
Common shares outstanding at end of period	40,986,990		35,704,154		35,639,889
Weighted average shares outstanding - diluted	41,112,692		35,710,941		35,640,978

(1)	Calculated by dividing annualized net income by average assets.
(2)	Calculated by dividing annualized net income by average common equity.
(3)	Calculated by dividing annualized net income by average tangible common equity.

 

TREND INFORMATION
	For the Three Months Ended
INCOME STATEMENT ($ in thousands except per share data)	March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022
Net interest income - tax-equivalent (1)	$       93,186		85,094		86,026		78,939		77,575
Taxable equivalent adjustment (1)	700		722		692		669		697
Net interest income	92,486		84,372		85,334		78,270		76,878
Provision for loan losses	11,451		4,000		5,100		—		3,500
Provision (reversal) for unfunded commitments	1,051		1,000		300		—		(1,500)
Noninterest income	13,536		14,558		16,912		17,264		19,251
Merger and acquisition costs	12,182		303		548		737		3,484
Other noninterest expense	61,993		45,354		48,152		48,661		47,981
Income before income taxes	19,345		48,273		48,146		46,136		42,664
Income tax expense	4,184		9,840		10,197		9,551		8,695
Net income	$       15,161		38,433		37,949		36,585		33,969
Earnings per common share - diluted	0.37		1.08		1.06		1.03		0.95
Cash dividends declared per share	0.22		0.22		0.22		0.22		0.22

(1)

This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status.  This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/first-bancorp-reports-first-quarter-results-301808558.html

SOURCE First Bancorp

FAQ

What were First Bancorp's earnings for Q1 2023?

First Bancorp reported net income of $15.2 million, or $0.37 per diluted common share, for Q1 2023.

How did the GrandSouth acquisition affect First Bancorp's financials?

The GrandSouth acquisition resulted in $12.2 million in merger expenses and contributed $1.02 billion in loans and $1.05 billion in deposits.

What is the current liquidity position of First Bancorp?

As of March 31, 2023, First Bancorp had a liquidity ratio of 26.2%, which increased to over 30% when including off-balance sheet sources.

How did First Bancorp's nonperforming assets change in Q1 2023?

Nonperforming assets decreased to 0.25% of total assets as of March 31, 2023, down from 0.46% in the same period last year.