First Bancorp Reports First Quarter Results

Rhea-AI Summary

First Bancorp reported net income of $25.3 million for Q1 2024, down from $29.7 million in Q4 2023. The company's loans decreased, but deposits and total loan yield increased. Credit quality remained strong, with low nonperforming assets. Net interest income declined, and noninterest income decreased due to bond call losses. Noninterest expenses rose, mainly due to pension plan adjustments. The balance sheet showed a slight decrease in total assets. The company remains well-capitalized and has strong liquidity.

Positive

• Net income for Q1 2024 was $25.3 million, down from $29.7 million in Q4 2023.
• Loans decreased, while deposits and total loan yield increased.
• Credit quality remained strong with low nonperforming assets.
• Net interest income declined, and noninterest income decreased due to bond call losses.
• Noninterest expenses rose, mainly due to pension plan adjustments.
• The balance sheet showed a slight decrease in total assets.
• The company remains well-capitalized with strong liquidity.

Negative

• Net interest income decreased by 14.3% from Q1 2023.
• Noninterest income saw a 4.4% decrease from Q1 2023.
• Total assets decreased by 2.2% from a year earlier.
• Unrealized losses on available for sale investment securities were $418.9 million at March 31, 2024.

Insights

Financial Analyst

The reported net income of $25.3 million, a decrease from the linked quarter's $29.7 million, reflects First Bancorp's dynamic financial stance. The reduction in net interest income by 14.3% year-over-year, despite a loan yield increase, suggests that the cost of funds, which rose significantly from 0.94% to 1.79%, exerted pressure on margins. This trend deserves attention, particularly for investors analyzing the sustainability of income in a rising interest rate environment.

The balance sheet shows a strategic shift, with a modest contraction in assets and loans, highlighting a careful approach to asset composition, emphasizing liquidity and capital adequacy over aggressive growth. The nonperforming assets ratio of 0.39% remains low but has increased from the previous year, indicating a slight uptick in credit risk, yet still reflecting solid asset quality. The common equity tier 1 capital ratio, a key indicator of financial strength, stands at a robust 13.50%, enhancing investor confidence in the bank's resilience.

Market Research Analyst

The consistency of noninterest-bearing demand accounts at 33% of total deposits is a notable marker of stability in First Bancorp's deposit base, offering predictability for cash flow management. However, the introduction of short-term brokered deposits, which contributed to the quarter's deposit increase, may suggest a need for liquidity management potentially influenced by market volatility or strategic positioning for investment opportunities.

The strategy to reduce borrowings and high-cost deposits, as mentioned by CEO Richard H. Moore, could align with the investor's interest in efficient capital management. Pivoting towards higher-yielding assets must be balanced against the risk of asset quality deterioration, a concern for investors focused on long-term value and credit stability.

Investment Securities Analyst

The decision to abstain from purchasing investment securities in the first quarter, using cash flows to support loan growth and deposit fluctuations, indicates a conservative stance in capital allocation. The unrealized loss on the available-for-sale securities portfolio, although large at $418.9 million, is set against a backdrop of increasing interest rates, affecting valuations but not necessarily the long-term investment thesis. Investors should weigh the potential impact of these paper losses against interest rate trends and the bank's efforts to restructure its investment portfolio for improved net interest income outcomes.

SOUTHERN PINES, N.C., April 24, 2024 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ: FBNC), the parent company of First Bank, announced today net income of $25.3 million, or $0.61 per diluted common share, for the three months ended March 31, 2024 compared to $29.7 million, or $0.72 per diluted common share, for the three months ended December 31, 2023 ("linked quarter") and $15.2 million, or $0.37 per diluted common share, recorded in the first quarter of 2023.

Richard H. Moore, CEO and Chairman of the Company, stated, "Your company continues to perform well with increases in our liquidity and capital.  We believe that our balance sheet composition will continue to improve during the year as we work towards reducing borrowings and high-cost deposits while deploying funds to higher yielding assets.  Our credit quality is strong with low levels of nonperforming assets and we have no significant exposure to office or hospitality commercial real estate."

First Quarter 2024 Highlights

• Loans totaled $8.1 billion at March 31, 2024, reflecting a $73.6 million contraction for the quarter, while year-over-year, loans grew $277.5 million.
• Noninterest-bearing demand accounts were 33% of total deposits at March 31, 2024, which is consistent with historical trends. Total deposits increased $271.7 million during the first quarter of 2024 consisting of market deposit growth of $88.3 million and new short-term brokered deposits totaling $183.5 million.
• Total loan yield increased to 5.45%, up 23 basis points from the first quarter of 2023, with accretion on purchased loans contributing 15 basis points to loan yield.
• While deposit and borrowing rates increased during the quarter, total cost of funds remained low at 1.79% for the quarter ended March 31, 2024.
• The on-balance sheet liquidity ratio was 15.5% at March 31, 2024, up from 14.6% for the linked quarter. Available off-balance sheet sources totaled $2.3 billion at March 31, 2024, resulting in a total liquidity ratio of 31.4%.
• Credit quality continued to be strong with a nonperforming assets ("NPA") to total assets ratio of 0.39% as of March 31, 2024.
• Capital remained strong with a total common equity tier 1 ratio of 13.50% (estimated) and a total risk-based capital ratio of 15.85% (estimated) as of March 31, 2024, both increasing from the linked quarter.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2024 was $79.2 million compared to $92.5 million recorded in the first quarter of 2023, a decrease of 14.3%.  Net interest income for the first quarter of 2024 decreased 3.9% from the $82.5 million reported for the linked quarter.  The declines in net interest income were driven by increases in cost of funds each period which more than offset the increases in earning assets. 

The Company's tax-equivalent net interest margin ("NIM") (calculated by dividing tax-equivalent net interest income by average earning assets) declined year-over-year with the first quarter of 2024 reporting a tax-equivalent NIM of 2.80% compared to 3.31% for the first quarter of 2023.  Increases in rates on liabilities driven by current market rates and competition occurred at a more rapid pace than the increase in yields on assets, which resulted in the reduction in net interest income and NIM as compared to the prior periods. While loan yields rose from 5.22% for the first quarter of 2023 to 5.45% for the first quarter of 2024, the total cost of funds increased from 0.94% for the first quarter of 2023 to 1.79% for the quarter ended March 31, 2024. 

		For the Three Months Ended
YIELD INFORMATION		March 31, 2024		December 31, 2023		March 31, 2023
Yield on loans		5.45 %		5.39 %		5.22 %
Yield on securities		1.79 %		1.76 %		1.78 %
Yield on other earning assets		4.30 %		4.49 %		3.47 %
Yield on total interest-earning assets		4.43 %		4.38 %		4.16 %
Rate on interest-bearing deposits		2.33 %		2.14 %		1.19 %
Rate on other interest-bearing liabilities		5.71 %		6.02 %		5.34 %
Rate on total interest-bearing liabilities		2.59 %		2.43 %		1.46 %
Total cost of funds		1.79 %		1.64 %		0.94 %
Net interest margin (1)		2.77 %		2.85 %		3.28 %
Net interest margin - tax-equivalent (2)		2.80 %		2.88 %		3.31 %
Average prime rate		8.50 %		8.50 %		7.69 %
(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 2024 was total loan discount accretion of $2.9 million compared to $3.6 million for the first quarter of 2023, with the decrease primarily related to the continued amortization of the loan portfolio acquired from GrandSouth Bancorporation ("GrandSouth").  Loan discount accretion had an 10 basis points positive impact on the Company's NIM in the first quarter of 2024 compared to accretion contributing 13 basis points to NIM for the prior year first 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, 2024		December 31, 2023		March 31, 2023
Interest income - increased by accretion of loan discount on acquired loans		$               2,437		2,464		3,118
Interest income - increased by accretion of loan discount on retained portions   of SBA loans		444		459		448
Total interest income impact		2,881		2,923		3,566
Interest expense - increased by discount accretion on deposits		(283)		(495)		(1,019)
Interest expense - increased by discount accretion on borrowings		(189)		(207)		(82)
Total net interest expense impact		(472)		(702)		(1,101)
Total impact on net interest income		$               2,409		2,221		2,465

Provision for Credit Losses and Credit Quality

For the three months ended March 31, 2024 and March 31, 2023, the Company recorded $1.2 million and $12.5 million in provision for credit losses, respectively.  The provision for the first quarter of 2023 was directly related to the initial provision for non-credit deteriorated loans and unfunded loan commitments acquired from GrandSouth.  The provision for the first quarter of 2024 was determined based on updated economic forecasts, which are a key assumption in the CECL model and which indicated a continued deterioration of the commercial real estate index, thus projecting a higher allowance for credit losses balance, partially offset by reductions in loan balances and the lower level of unfunded commitments. 

Asset quality remained strong with annualized net loan charge-offs of 0.08% for the first quarter of 2024.  Total NPAs remained at a low level at $47.5 million at March 31, 2024, or 0.39% of total assets.  This is compared to $31.1 million, or 0.25% of total assets, at March 31, 2023 with the increase year-over-year being attributable primarily to activity from acquired loan portfolios and the SBA loan portfolio.  The increase in nonaccrual loans from the linked quarter was primarily related to several SBA loans, all of which carry a guarantee from the SBA for a majority of the balance.

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

ASSET QUALITY DATA ($ in thousands)		March 31, 2024		December 31, 2023		March 31, 2023
Nonperforming assets
Nonaccrual loans		$          35,622		32,208		28,059
Modifications to borrowers in financial distress		10,999		11,719		2,224
Total nonperforming loans		46,621		43,927		30,283
Foreclosed real estate		926		862		789
Total nonperforming assets		$          47,547		44,789		31,072
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized		0.08 %		0.09 %		0.09 %
Nonperforming loans to total loans		0.58 %		0.54 %		0.39 %
Nonperforming assets to total assets		0.39 %		0.37 %		0.25 %
Allowance for credit losses to total loans		1.36 %		1.35 %		1.36 %

Noninterest Income

Total noninterest income for the first quarter of 2024 was $12.9 million, a 4.4% decrease from the $13.5 million recorded for the first quarter of 2023 and an 11.0% decrease from the linked quarter.  The lower noninterest income in the current quarter was primarily driven by a $1.0 million loss on the call of a bond with an unamortized premium balance.  In addition, Other gains net, decreased $0.8 million from the linked quarter due to gains recorded on the disposal of property recorded in the fourth quarter of 2023.  

Noninterest Expenses

Noninterest expenses amounted to $59.2 million for the first quarter of 2024 compared to $56.4 million for the linked quarter and $74.2 million for the first quarter of 2023.  The $2.8 million, or 5.0%, increase in noninterest expense from the linked quarter was driven by year end adjustments to the Company's pension plan recorded in the fourth quarter of 2023 which resulted in reducing expense in the linked quarter approximately $2.2 million during the period.  In addition, bonus accrual reductions were recorded in the fourth quarter of 2023 lowering the total salary expense for the linked quarter. 

The primary contributors to the higher noninterest expense in the first quarter of 2023 were merger and acquisition costs of $12.2 million related to the GrandSouth acquisition as well as overlapping expenses which were eliminated upon core processing system conversion in mid-March 2023.

Balance Sheet

Total assets at March 31, 2024 amounted to $12.1 billion, a decrease of $23.3 million, or 0.2%, from the linked quarter and a contraction of $271.6 million, or 2.2%, from a year earlier.  The decrease from the linked quarter was primarily related to intentional reductions in investment securities and loan balances, partially offset by higher interest-bearing cash balances.

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

		For the Three Months Ended
AVERAGE BALANCES ($ in thousands)		March 31, 2024		December 31, 2023		March 31, 2023		Change 1Q24 vs 1Q23
Total assets		$      12,111,201		12,026,195		12,042,298		0.6 %
Investment securities, at amortized cost		3,108,464		3,143,756		3,321,240		(6.4) %
Loans		8,103,387		8,087,450		7,728,424		4.9 %
Earning assets		11,489,796		11,477,007		11,428,789		0.5 %
Deposits		10,078,835		10,131,094		10,216,908		(1.4) %
Interest-bearing liabilities		7,343,934		7,204,165		6,866,646		7.0 %
Shareholders' equity		1,375,490		1,280,812		1,273,435		8.0 %

Total investment securities were $2.6 billion at March 31, 2024, a decrease of $108.9 million from the linked quarter and a reduction of $216.0 million from March 31, 2023.  The Company made no purchases of investment securities during the first quarter of 2024 and continues to utilize cash flows from amortizing investments to fund loan growth and fluctuations in deposits.  Total unrealized loss on available for sale investment securities was $418.9 million at March 31, 2024. 

Total loans amounted to $8.1 billion at March 31, 2024, a decrease of $73.6 million from the linked quarter and an increase of $277.5 million, or 3.6%, from March 31, 2023.  As presented below, our total loan portfolio mix has remained consistent.  As of March 31, 2024, there were no notable concentrations in geographies or industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below.  The Company's exposure to non-owner occupied office loans represented approximately 5.7% of the total portfolio at March 31, 2024, with the largest loan being $27.0 million and an average loan outstanding amount of $1.3 million.  Non-owner occupied office loans are generally in non-metro markets and the 10 largest loans in this category represent less than 2% of the total loan portfolio.

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

		March 31, 2024				December 31, 2023				March 31, 2023
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Commercial and industrial		$      872,623		11 %		905,862		11 %		885,032		11 %
Construction, development & other land    loans		904,216		11 %		992,980		12 %		1,092,026		14 %
Commercial real estate - owner occupied		1,238,759		15 %		1,259,022		16 %		1,200,744		16 %
Commercial real estate - non-owner    occupied		2,524,221		31 %		2,528,060		31 %		2,429,941		31 %
Multi-family real estate		457,142		6 %		421,376		5 %		395,573		5 %
Residential 1-4 family real estate		1,684,173		21 %		1,639,469		20 %		1,386,580		18 %
Home equity loans/lines of credit		328,466		4 %		335,068		4 %		342,287		4 %
Consumer loans		66,666		1 %		68,443		1 %		68,056		1 %
Loans, gross		8,076,266		100 %		8,150,280		100 %		7,800,239		100 %
Unamortized net deferred loan fees		240				(178)				(1,276)
Total loans		$   8,076,506				8,150,102				7,798,963

Total deposits were $10.3 billion at March 31, 2024, an increase of $271.7 million, or 2.7%, from the linked quarter and a decrease of $69.3 million, or 0.7%, from March 31, 2023. The year-to-date deposit growth is comprised of organic growth from market deposits of $88.3 million combined with additional short-term brokered deposits totaling $183.5 million.

The Company has a diversified and granular deposit base which has remained a stable source of funding with noninterest-bearing deposits comprising 33% of total deposits at March 31, 2024.  Our deposit mix has remained consistent historically and has not changed significantly, with the exception of some shift to money market accounts, as presented in the table below.

		March 31, 2024				December 31, 2023				March 31, 2023
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Noninterest-bearing checking accounts		$   3,362,265		33 %		3,379,876		34 %		3,763,637		36 %
Interest-bearing checking accounts		1,401,724		13 %		1,411,142		14 %		1,526,333		15 %
Money market accounts		3,787,323		37 %		3,653,506		36 %		3,126,571		30 %
Savings accounts		584,901		6 %		608,380		6 %		705,669		7 %
Other time deposits		607,359		6 %		610,887		6 %		624,444		6 %
Time deposits >$250,000		363,687		3 %		355,209		4 %		342,447		3 %
Total market deposits		10,107,259		98 %		10,019,000		100 %		10,089,101		97 %
Brokered deposits		196,052		2 %		12,599		— %		283,497		3 %
Total deposits		$ 10,303,311		100 %		10,031,599		100 %		10,372,598		100 %

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

Capital

The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at March 31, 2024 of 15.85%, up from the linked quarter ratio of 15.54% and 14.88% reported at March 31, 2023.  The increase in risk-based capital ratio is due in part to the shift in the balance sheet with the reduction in loans being more that offset by higher cash balances which carry a lower risk-weighting.

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital.  AOCI is included in the Company's tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 7.48% at March 31, 2024, an increase of 6 basis points from the linked quarter and an increase of 88 basis points from March 31, 2023.  The increases in TCE for the current quarter and year-over-year were driven by earnings and improvements in the level of unrealized losses on the available for sale investment portfolio for the period.  Refer to Appendix B for a reconciliation of common equity to TCE and Appendix D for a calculations of the TCE ratio.

CAPITAL RATIOS		March 31, 2024 (estimated)		December 31, 2023		March 31, 2023
Tangible common equity to tangible assets (non-GAAP)		7.48 %		7.42 %		6.60 %
Common equity tier I capital ratio		13.50 %		13.20 %		12.53 %
Tier I leverage ratio		10.99 %		10.91 %		10.28 %
Tier I risk-based capital ratio		14.29 %		13.99 %		13.32 %
Total risk-based capital ratio		15.85 %		15.54 %		14.88 %

Liquidity

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

The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at March 31, 2024 was 15.5%.  In addition, the Company had approximately $2.3 billion in available lines of credit at that date resulting in a total liquidity ratio of 31.4%.

Subsequent to quarter end, the Company has reduced short-term borrowings from liquidity resulting from increases in core deposits. In addition, we have initiated the sale of select investment securities from the available for sale portfolio in order to restructure the investment portfolio and to generate additional liquidity to pay off  wholesale funding and invest into higher earning assets. We anticipate beneficial results to our net interest income upon completion of the strategy.   

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.1 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 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
		For the Three Months Ended
($ in thousands, except per share data - unaudited)		March 31, 2024		December 31, 2023		March 31, 2023
Interest income
Interest and fees on loans		$           109,756		109,811		99,380
Interest on investment securities		13,845		13,978		14,546
Other interest income		2,971		2,784		3,248
Total interest income		126,572		126,573		117,174
Interest expense
Interest on deposits		39,135		35,979		18,918
Interest on borrowings		8,205		8,110		5,770
Total interest expense		47,340		44,089		24,688
Net interest income		79,232		82,484		92,486
Provision for credit losses		1,200		2,950		12,502
Net interest income after provision for credit losses		78,032		79,534		79,984
Noninterest income
Service charges on deposit accounts		3,868		4,413		3,894
Other service charges, commissions, and fees		5,612		4,968		5,920
Presold mortgage loan fees and gains on sale		338		325		406
Commissions from sales of financial products		1,320		1,577		1,306
SBA consulting fees		257		395		521
SBA loan sale gains		895		437		255
Bank-owned life insurance income		1,164		1,134		1,046
Securities losses, net		(975)		—		—
Other gains, net		459		1,293		188
Total noninterest income		12,938		14,542		13,536
Noninterest expenses
Salaries expense		27,642		26,985		29,321
Employee benefit expense		6,269		6,377		6,393
Occupancy and equipment related expense		5,588		5,948		5,067
Merger and acquisition expenses		—		189		12,182
Intangibles amortization expense		1,759		1,856		2,145
Other operating expenses		17,929		15,031		19,067
Total noninterest expenses		59,187		56,386		74,175
Income before income taxes		31,783		37,690		19,345
Income tax expense		6,511		8,016		4,184
Net income		$             25,272		29,674		15,161
Earnings per common share - diluted		$                 0.61		0.72		0.37

 

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)		At March 31, 2024		At December 31, 2023		At March 31, 2023
Assets
Cash and due from banks		$             87,181		100,891		102,691
Interest-bearing deposits with banks		266,661		136,964		610,691
Total cash and cash equivalents		353,842		237,855		713,382
Investment securities		2,614,110		2,723,057		2,830,060
Presold mortgages and SBA loans held for sale		6,703		2,667		5,884
Loans		8,076,506		8,150,102		7,798,963
Allowance for credit losses on loans		(110,067)		(109,853)		(106,396)
Net loans		7,966,439		8,040,249		7,692,567
Premises and equipment		150,546		150,957		152,790
Operating right-of-use lease assets		16,551		17,063		18,898
Goodwill and other intangible assets		509,636		511,608		518,012
Bank-owned life insurance		185,061		183,897		180,730
Other assets		288,709		247,589		250,826
Total assets		$      12,091,597		12,114,942		12,363,149
Liabilities
Deposits:
Noninterest-bearing checking accounts		$        3,362,265		3,379,876		3,763,637
Interest-bearing deposit accounts		6,941,046		6,651,723		6,608,961
Total deposits		10,303,311		10,031,599		10,372,598
Borrowings		332,335		630,158		606,481
Operating lease liabilities		17,343		17,833		19,638
Other liabilities		62,509		62,972		64,471
Total liabilities		10,715,498		10,742,562		11,063,188
Shareholders' equity
Common stock		965,429		963,990		959,422
Retained earnings		732,643		716,420		654,573
Stock in rabbi trust assumed in acquisition		(1,396)		(1,385)		(1,608)
Rabbi trust obligation		1,396		1,385		1,608
Accumulated other comprehensive loss		(321,973)		(308,030)		(314,034)
Total shareholders' equity		1,376,099		1,372,380		1,299,961
Total liabilities and shareholders' equity		$      12,091,597		12,114,942		12,363,149

 

First Bancorp and Subsidiaries Financial Summary
TREND INFORMATION
		For the Three Months Ended
		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
PERFORMANCE RATIOS (annualized)
Return on average assets (1)		0.84 %		0.98 %		0.99 %		0.98 %		0.51 %
Return on average common equity (2)		7.39 %		9.19 %		9.10 %		8.97 %		4.83 %
Return on average tangible common equity (3)		11.76 %		15.33 %		15.05 %		14.79 %		8.16 %
COMMON SHARE DATA
Cash dividends declared - common		$          0.22		0.22		0.22		0.22		0.22
Book value per common share		$        33.44		33.38		30.61		31.59		31.72
Tangible book value per share (4)		$        21.05		20.94		18.11		19.03		19.08
Common shares outstanding at end of period		41,156,286		41,109,987		40,085,498		41,082,678		40,986,990
Weighted average shares outstanding - diluted		41,249,636		41,207,945		41,199,058		41,129,100		41,112,692
CAPITAL INFORMATION (estimates for current quarter)
Tangible common equity to tangible assets (5)		7.48 %		7.42 %		6.49 %		6.79 %		6.60 %
Common equity tier I capital ratio		13.50 %		13.20 %		12.93 %		12.75 %		12.53 %
Total risk-based capital ratio		15.85 %		15.54 %		15.26 %		15.09 %		14.88 %
(1)  Calculated by dividing annualized net income by average assets.
(2)  Calculated by dividing annualized net income by average common equity.
(3)  Return on average tangible common equity is a non-GAAP financial measure.  See Appendix A for components of the calculation and the reconciliation of average common equity to average TCE.
(4)  Tangible book value per share is a non-GAAP financial measure.  See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
(5)  Tangible common equity ratio is a non-GAAP financial measure.  See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation.
		For the Three Months Ended
INCOME STATEMENT ($ in thousands except per share data)		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Net interest income - tax-equivalent (1)		$         79,963		83,225		85,442		87,684		93,186
Taxable equivalent adjustment (1)		731		741		740		699		700
Net interest income		79,232		82,484		84,702		86,985		92,486
Provision for credit losses		1,200		2,950		—		2,361		12,502
Noninterest income		12,938		14,542		15,177		14,235		13,536
Merger and acquisition costs		—		189		—		1,334		12,182
Other noninterest expense		59,187		56,197		62,224		60,259		61,993
Income before income taxes		31,783		37,690		37,655		37,266		19,345
Income tax expense		6,511		8,016		7,762		7,863		4,184
Net income		25,272		29,674		29,893		29,403		15,161
Earnings per common share - diluted		$             0.61		0.72		0.73		0.71		0.37
(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.

 

APPENDIX A:  Calculation of Return on TCE
		For the Three Months Ended
($ in thousands)		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Net Income		$      25,272		29,674		29,893		29,403		15,161
Average common equity		1,375,490		1,280,812		1,303,249		1,314,650		1,273,435
Less: Average goodwill and other intangibles		(510,902)		(512,876)		(515,111)		(517,201)		(519,639)
Average tangible common equity		$    864,588		767,936		788,138		797,449		753,796
Return on average common equity		7.39 %		9.19 %		9.10 %		8.97 %		4.83 %
Return on average tangible common equity		11.76 %		15.33 %		15.05 %		14.79 %		8.16 %
APPENDIX B:  Reconciliation of Common Equity to TCE
		For the Three Months Ended
($ in thousands)		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Total shareholders' common equity		$   1,376,099		1,372,380		1,257,683		1,297,642		1,299,961
Less: Goodwill and other intangibles		(509,636)		(511,608)		(513,629)		(515,847)		(518,012)
Tangible common equity		$      866,463		860,772		744,054		781,795		781,949
APPENDIX C:  Tangible Book Value Per Share
		For the Three Months Ended
($ in thousands except per share data)		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Tangible common equity (Appendix B)		$      866,463		860,772		744,054		781,795		781,949
Common shares outstanding		41,156,286		41,109,987		41,085,498		41,082,678		40,986,990
Tangible book value per common share		$           21.05		20.94		18.11		19.03		19.08
APPENDIX D:  TCE Ratio
		For the Three Months Ended
($ in thousands)		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Tangible common equity (Appendix B)		$    866,463		860,772		744,054		781,795		781,949
Total assets		12,091,597		12,114,942		11,977,960		12,032,998		12,363,149
Less: Goodwill and other  intangibles		(509,636)		(511,608)		(513,629)		(515,847)		(518,012)
Tangible assets ("TA")		$  11,581,961		11,603,334		11,464,331		11,517,151		11,845,137
TCE to TA ratio		7.48 %		7.42 %		6.49 %		6.79 %		6.60 %

 

 

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SOURCE First Bancorp

FAQ

What was First Bancorp's net income for Q1 2024?

First Bancorp reported net income of $25.3 million for the first quarter of 2024.

How did the company's total deposits change in Q1 2024?

Total deposits increased by $271.7 million in the first quarter of 2024.

What was the nonperforming assets to total assets ratio at March 31, 2024?

The nonperforming assets to total assets ratio was 0.39% at March 31, 2024.

What was the change in net interest income from Q1 2023 to Q1 2024?

Net interest income decreased by 14.3% from Q1 2023 to Q1 2024.

How did noninterest expenses change from the linked quarter to Q1 2024?

Noninterest expenses increased by $2.8 million, or 5.0%, from the linked quarter to the first quarter of 2024.