First Bancorp Reports Third Quarter Results
First Bancorp (NASDAQ: FBNC) reported Q3 2024 net income of $18.7 million, or $0.45 per diluted share, down from $28.7 million ($0.70/share) in Q2 2024 and $29.9 million ($0.73/share) in Q3 2023. The decrease was primarily due to a $13.4 million impact from Hurricane Helene, including a $13 million provision for potential credit losses. Excluding hurricane impacts, adjusted net income was $29.0 million ($0.70/share). Key metrics include: tax-equivalent net interest margin increased to 2.90%, total loans of $8.0 billion, strong credit quality with NPAs at 0.38% of assets, and total deposits grew by $17.1 million to $10.5 billion. The company maintains strong capital ratios with an estimated total risk-based capital ratio of 16.44%.
First Bancorp (NASDAQ: FBNC) ha riportato un utile netto per il terzo trimestre del 2024 di 18,7 milioni di dollari, ovvero 0,45 dollari per azione diluita, in calo rispetto ai 28,7 milioni di dollari (0,70 dollari/azione) del secondo trimestre del 2024 e ai 29,9 milioni di dollari (0,73 dollari/azione) del terzo trimestre del 2023. La diminuzione è stata principalmente dovuta a un impatto di 13,4 milioni di dollari causato dall'uragano Helene, che include una previsione di 13 milioni di dollari per potenziali perdite su crediti. Escludendo gli impatti dell'uragano, l'utile netto rettificato si è attestato a 29,0 milioni di dollari (0,70 dollari/azione). Tra i principali indicatori, il margine d'interesse netto equivalente fiscale è aumentato al 2,90%, i prestiti totali ammontano a 8,0 miliardi di dollari, con una qualità creditizia solida e crediti non performanti (NPA) pari allo 0,38% degli attivi, e i depositi totali sono aumentati di 17,1 milioni di dollari a 10,5 miliardi di dollari. L'azienda mantiene solidi rapporti di capitale con un rapporto di capitale totale basato sul rischio stimato di 16,44%.
First Bancorp (NASDAQ: FBNC) reportó un ingreso neto de 18.7 millones de dólares en el tercer trimestre de 2024, o 0.45 dólares por acción diluida, una disminución respecto a 28.7 millones de dólares (0.70 dólares/acción) en el segundo trimestre de 2024 y 29.9 millones de dólares (0.73 dólares/acción) en el tercer trimestre de 2023. La disminución se debió principalmente a un impacto de 13.4 millones de dólares por el huracán Helene, que incluye una provisión de 13 millones de dólares para posibles pérdidas crediticias. Excluyendo los impactos del huracán, el ingreso neto ajustado fue de 29.0 millones de dólares (0.70 dólares/acción). Entre los indicadores clave se incluyen: el margen de interés neto equivalente fiscal aumentó al 2.90%, los préstamos totales ascendieron a 8.0 mil millones de dólares, con una calidad crediticia robusta y NPAs en el 0.38% de los activos, y los depósitos totales crecieron en 17.1 millones de dólares a 10.5 mil millones de dólares. La compañía mantiene ratios de capital sólidos con un ratio estimado de capital total basado en riesgos del 16.44%.
퍼스트 뱅코프(NASDAQ: FBNC)는 2024년 3분기에 1,870만 달러의 순이익을 보고했으며, 이는 희석주당 0.45 달러로, 2024년 2분기의 2,870만 달러 (0.70 달러/주) 및 2023년 3분기의 2,990만 달러 (0.73 달러/주)보다 감소한 수치입니다. 감소는 주로 허리케인 헬렌으로 인한 1,340만 달러의 영향 때문이며, 이에는 잠재적 신용 손실에 대한 1,300만 달러의 충당금이 포함됩니다. 허리케인 영향을 제외하면 조정된 순이익은 2,900만 달러 (0.70 달러/주)로 나타났습니다. 주요 지표로는: 세금 동등 순이자 마진이 2.90%로 증가했으며, 총 대출 잔액은 80억 달러에 도달했고, 비생산자산(NPA)은 자산의 0.38% 로 강력한 신용 품질을 유지했습니다. 총 예금은 1,710만 달러 증가하여 105억 달러에 이릅니다. 회사는 추정된 총 위험 기반 자본 비율이 16.44%인 강력한 자본 비율을 유지하고 있습니다.
First Bancorp (NASDAQ: FBNC) a annoncé un bénéfice net de 18,7 millions de dollars pour le troisième trimestre 2024, soit 0,45 dollar par action diluée, en baisse par rapport à 28,7 millions de dollars (0,70 dollar/action) au deuxième trimestre 2024 et 29,9 millions de dollars (0,73 dollar/action) au troisième trimestre 2023. La diminution est principalement due à un impact de 13,4 millions de dollars causé par l'ouragan Helene, comprenant une provision de 13 millions de dollars pour des pertes potentielles sur crédits. En excluant les impacts de l'ouragan, le bénéfice net ajusté s'élevait à 29,0 millions de dollars (0,70 dollar/action). Parmi les indicateurs clés, la marge d'intérêt nette équivalente fiscale a augmenté à 2,90%, le total des prêts a atteint 8,0 milliards de dollars, avec une qualité de crédit solide et des NPA à 0,38% des actifs, et les dépôts totaux ont augmenté de 17,1 millions de dollars pour atteindre 10,5 milliards de dollars. L'entreprise maintient des ratios de capital solides avec un ratio de capital total basé sur le risque estimé de 16,44%.
First Bancorp (NASDAQ: FBNC) berichtete für das dritte Quartal 2024 einen Nettogewinn von 18,7 Millionen Dollar, oder 0,45 Dollar pro verwässerter Aktie, was einen Rückgang von 28,7 Millionen Dollar (0,70 Dollar/Aktie) im zweiten Quartal 2024 und 29,9 Millionen Dollar (0,73 Dollar/Aktie) im dritten Quartal 2023 darstellt. Der Rückgang war hauptsächlich auf einen Einfluss von 13,4 Millionen Dollar durch den Hurrikan Helene zurückzuführen, einschließlich einer Rückstellung von 13 Millionen Dollar für potenzielle Kreditverluste. Ohne die Auswirkungen des Hurrikans lag der bereinigte Nettogewinn bei 29,0 Millionen Dollar (0,70 Dollar/Aktie). Zu den Schlüsselkennzahlen gehören: die steuerlich äquivalente Nettomarge stieg auf 2,90%, die Gesamtdarlehen beliefen sich auf 8,0 Milliarden Dollar, die Kreditqualität ist stark, mit NPA auf 0,38% der Vermögenswerte, und die Gesamteinlagen stiegen um 17,1 Millionen Dollar auf 10,5 Milliarden Dollar. Das Unternehmen hält starke Kapitalquoten mit einer geschätzten Gesamtrisikokapitalquote von 16,44%.
- Net interest margin increased to 2.90% from 2.87% in previous quarter
- Strong credit quality maintained with low NPAs at 0.38% of total assets
- Total deposits grew by $17.1 million
- Capital position strengthened with total risk-based capital ratio at 16.44%
- Customer deposits grew $56.6 million organically
- Net income decreased 34.8% to $18.7 million from $28.7 million in previous quarter
- EPS declined to $0.45 from $0.70 in previous quarter
- Loans contracted by $56.3 million during the quarter
- $13.4 million negative impact from Hurricane Helene
- Net loan charge-offs increased to 0.11% annualized
Insights
First Bancorp's Q3 2024 results show significant impact from Hurricane Helene, with net income falling to
Key positives include:
- Improved net interest margin at
2.90% , up 3 basis points quarter-over-quarter - Strong capital position with
14.34% CET1 ratio - Stable loan yields at
5.51% - Well-controlled cost of funds at
1.81%
The bank's conservative approach to potential hurricane losses, strong capital levels and stable core metrics suggest the quarterly earnings impact is temporary rather than structural. The diversified loan portfolio and stable deposit base (
The bank's proactive
The liquidity position remains robust with a
The Company announced net income of
For the third quarter, in accounting for the potential impacts of Hurricane Helene, we realized pre-tax impacts totaling
Third Quarter 2024 Highlights
- Tax equivalent net interest margin ("NIM") increased 3 basis points to
2.90% for the third quarter of 2024, up from2.87% for the linked quarter and down from2.97% in the like quarter. For the nine months ended September 30, 2024, NIM fell to2.86% from3.12% in the same period in 2023. Due to the proximity to quarter end, the Federal Reserve rate reduction in mid-September had a minimal benefit to our third quarter NIM. - Earnings per share, ("EPS") was
per diluted share for the third quarter of 2024 and$0.45 per diluted share for the nine months ended September 30, 2024. Adjusted EPS for the third quarter of 2024 remained steady from the linked quarter at$1.76 per diluted share and increased to$0.70 per diluted share for the nine months ended September 30, 2024 from$2.01 per diluted share for the nine months ended September 30, 2023. See Appendix E for components of this calculation.$1.81 - Net income was
for the third quarter of 2024 and$18.7 million for the nine months ended September 30, 2024. Adjusted net income increased to$72.7 million for the third quarter of 2024 from$29.0 million in the linked quarter and to$28.7 million for the nine months ended September 30, 2024 from$83.0 million for the nine months ended September 30, 2023. See Appendix E for components of this calculation.$74.5 million - Capital grew during the quarter with a total common equity tier 1 ratio of
14.34% (estimated) and a total risk-based capital ratio of16.44% (estimated) as of September 30, 2024, both increasing from the linked quarter. - Credit quality continues to be strong with a nonperforming assets ("NPA") to total assets ratio of
0.38% as of September 30, 2024, a 1 basis point increase from the linked quarter. - Loans totaled
at September 30, 2024, reflecting contractions of$8.0 billion and$56.3 million for the quarter and year-over-year, respectively.$13.5 million - Noninterest-bearing demand accounts were
32% of total deposits at September 30, 2024, which is consistent with historical trends. During the third quarter of 2024, customer deposits grew and brokered deposits contracted$56.6 million leading to an increase in total deposits of$39.5 million .$17.1 million - Total loan yield increased to
5.51% , up 1 basis points from the linked quarter and 19 basis points from the like quarter. - Total cost of funds remained low at
1.81% for the quarter ended September 30, 2024, consistent with the linked quarter. - The on-balance sheet liquidity ratio was
17.7% at September 30, 2024, up from16.3% for the linked quarter. Available off-balance sheet sources totaled at September 30, 2024, resulting in a total liquidity ratio of$2.4 billion 35.2% .
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2024 was
The Company's tax-equivalent NIM was
For the Three Months Ended | ||||||
YIELD INFORMATION | September 30, | June 30, 2024 | September 30, | |||
Yield on loans | 5.51 % | 5.50 % | 5.32 % | |||
Yield on securities | 1.70 % | 1.73 % | 1.75 % | |||
Yield on other earning assets | 4.90 % | 4.71 % | 4.58 % | |||
Yield on total interest-earning assets | 4.55 % | 4.52 % | 4.31 % | |||
Rate on interest-bearing deposits | 2.59 % | 2.54 % | 1.95 % | |||
Rate on borrowings | 7.97 % | 7.09 % | 5.88 % | |||
Rate on total interest-bearing liabilities | 2.66 % | 2.65 % | 2.20 % | |||
Total cost of funds | 1.81 % | 1.81 % | 1.46 % | |||
Net interest margin (1) | 2.88 % | 2.84 % | 2.95 % | |||
Net interest margin - tax-equivalent (2) | 2.90 % | 2.87 % | 2.97 % | |||
Average prime rate | 8.43 % | 8.50 % | 8.43 % |
(1) Calculated by dividing annualized net interest income by average earning assets for the period. | ||||||
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming a |
Included in interest income for the third quarter of 2024 was loan purchase accounting discount accretion of
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended | ||||||
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands) | September 30, | June 30, 2024 | September 30, | |||
Interest income - increased by accretion of loan discount on acquired loans | $ 2,003 | $ 2,303 | $ 2,766 | |||
Total interest income impact | 2,003 | 2,303 | 2,766 | |||
Interest expense - increased by discount accretion on deposits | (174) | (224) | (709) | |||
Interest expense - increased by discount accretion on borrowings | (193) | (190) | (215) | |||
Total net interest expense impact | (367) | (414) | (924) | |||
Total impact on net interest income | $ 1,636 | $ 1,889 | $ 1,842 |
Provision for Credit Losses and Credit Quality
For the three months ended September 30, 2024 and September 30, 2023, the Company recorded
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) | September 30, | June 30, 2024 | September 30, | |||
Nonperforming assets | ||||||
Nonaccrual loans | $ 34,125 | $ 33,102 | $ 26,884 | |||
Modifications to borrowers in financial distress | 10,262 | 10,495 | 10,723 | |||
Total nonperforming loans | 44,387 | 43,597 | 37,607 | |||
Foreclosed real estate | 1,519 | 1,150 | 1,235 | |||
Total nonperforming assets | $ 45,906 | $ 44,747 | $ 38,842 | |||
Asset Quality Ratios | ||||||
Quarterly net charge-offs to average loans - annualized | 0.11 % | 0.07 % | 0.11 % | |||
Nonperforming loans to total loans | 0.55 % | 0.54 % | 0.47 % | |||
Nonperforming assets to total assets | 0.38 % | 0.37 % | 0.32 % | |||
Allowance for credit losses to total loans | 1.53 % | 1.36 % | 1.35 % |
Noninterest Income
Total noninterest income for the third quarter of 2024 was
While the variance from the linked quarter was impacted by the sale of branch property, the variance from both the linked and like quarters was also impacted by the timing of the recognition of gain and loss from other investment activity, which does not include available for sale or held to maturity securities.
Noninterest Expenses
Noninterest expenses amounted to
The primary contributor to the higher noninterest expense in the third quarter of 2023 was higher Other operating expenses of
Balance Sheet
Total assets at September 30, 2024 amounted to
Quarterly average balances for key balance sheet accounts are presented below.
For the Three Months Ended | ||||||||||||
AVERAGE BALANCES ($ in thousands) | September | June 30, | December | September | Change | Change | ||||||
Total assets | 0.6 % | 1.0 % | ||||||||||
Investment securities, at amortized cost | 2,784,863 | 2,883,662 | 3,143,756 | 3,180,846 | (3.4) % | (12.4) % | ||||||
Loans | 8,019,730 | 8,070,814 | 8,087,450 | 7,939,783 | (0.6) % | 1.0 % | ||||||
Earning assets | 11,489,227 | 11,462,112 | 11,477,007 | 11,405,307 | 0.2 % | 0.7 % | ||||||
Deposits | 10,509,237 | 10,432,309 | 10,131,094 | 10,180,046 | 0.7 % | 3.2 % | ||||||
Interest-bearing liabilities | 7,230,326 | 7,249,562 | 7,204,165 | 7,071,407 | (0.3) % | 2.2 % | ||||||
Shareholders' equity | 1,445,029 | 1,378,283 | 1,280,812 | 1,303,249 | 4.8 % | 10.9 % |
Driven by improvement in the unrealized loss on available for sale securities during the third quarter, total investment securities at carrying value increased to
Total loans amounted to
The following table presents the balance and portfolio percentage by loan category for each period.
LOAN PORTFOLIO | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Commercial and industrial | $ 847,284 | 11 % | $ 863,366 | 11 % | $ 893,910 | 11 % | ||||||
Construction, development & other land loans | 760,949 | 9 % | 764,418 | 9 % | 1,008,289 | 13 % | ||||||
Commercial real estate - owner occupied | 1,226,050 | 15 % | 1,250,267 | 16 % | 1,252,259 | 16 % | ||||||
Commercial real estate - non-owner occupied | 2,572,901 | 32 % | 2,561,803 | 32 % | 2,509,317 | 31 % | ||||||
Multi-family real estate | 460,565 | 6 % | 497,187 | 6 % | 405,161 | 5 % | ||||||
Residential 1-4 family real estate | 1,737,133 | 22 % | 1,729,050 | 21 % | 1,560,140 | 19 % | ||||||
Home equity loans/lines of credit | 331,072 | 4 % | 326,411 | 4 % | 331,108 | 4 % | ||||||
Consumer loans | 76,787 | 1 % | 76,638 | 1 % | 67,169 | 1 % | ||||||
Loans, gross | 8,012,741 | 100 % | 8,069,140 | 100 % | 8,027,353 | 100 % | ||||||
Unamortized net deferred loan fees | 797 | 708 | (316) | |||||||||
Total loans | $ 8,013,538 | $ 8,069,848 | $ 8,027,037 |
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 | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Noninterest-bearing checking accounts | $ 3,350,237 | 32 % | $ 3,339,678 | 32 % | $ 3,503,050 | 34 % | ||||||
Interest-bearing checking accounts | 1,426,356 | 13 % | 1,400,071 | 13 % | 1,458,855 | 14 % | ||||||
Money market accounts | 4,189,174 | 40 % | 4,150,429 | 40 % | 3,635,523 | 36 % | ||||||
Savings accounts | 541,501 | 5 % | 558,126 | 5 % | 638,912 | 6 % | ||||||
Other time deposits | 602,148 | 6 % | 601,212 | 6 % | 626,870 | 6 % | ||||||
Time deposits > | 385,995 | 4 % | 389,281 | 4 % | 359,704 | 4 % | ||||||
Total customer deposits | 10,495,411 | 100 % | 10,438,797 | 100 % | 10,222,914 | 100 % | ||||||
Brokered deposits | 9,518 | — % | 49,032 | — % | 12,489 | — % | ||||||
Total deposits | 100 % | 100 % | 100 % |
As of September 30, 2024 and June 30, 2024, estimated insured deposits totaled
Capital
The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at September 30, 2024 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 | September 30, | June 30, 2024 | September 30, | |||
Tangible common equity to tangible assets (non-GAAP) | 8.47 % | 7.90 % | 6.64 % | |||
Common equity tier I capital ratio | 14.34 % | 13.99 % | 12.93 % | |||
Tier I leverage ratio | 11.29 % | 11.24 % | 10.72 % | |||
Tier I risk-based capital ratio | 15.16 % | 14.79 % | 13.71 % | |||
Total risk-based capital ratio | 16.44 % | 16.24 % | 15.26 % |
Liquidity
Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities and other marketable assets) and off-balance sheet (readily available lines of credit and other funding sources). The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future.
The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at September 30, 2024 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." Member FDIC, Equal Housing Lender.
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 | For the Nine Months Ended | |||||||||
($ in thousands, except per share data - unaudited) | September | June 30, | September | September | September | |||||
Interest income | ||||||||||
Interest and fees on loans | $ 111,076 | $ 110,425 | $ 106,514 | $ 331,346 | $ 308,857 | |||||
Interest on investment securities: | ||||||||||
Taxable interest income | 10,779 | 11,291 | 12,936 | 34,798 | 39,415 | |||||
Tax-exempt interest income | 1,116 | 1,117 | 1,118 | 3,350 | 3,368 | |||||
Other, principally overnight investments | 8,438 | 5,942 | 3,283 | 17,351 | 10,546 | |||||
Total interest income | 131,409 | 128,775 | 123,851 | 386,845 | 362,186 | |||||
Interest expense | ||||||||||
Interest on deposits | 46,420 | 44,744 | 32,641 | 130,299 | 78,887 | |||||
Interest on borrowings | 1,946 | 2,963 | 6,508 | 13,114 | 19,125 | |||||
Total interest expense | 48,366 | 47,707 | 39,149 | 143,413 | 98,012 | |||||
Net interest income | 83,043 | 81,068 | 84,702 | 243,432 | 264,174 | |||||
Provision for credit losses | 14,200 | 541 | — | 15,941 | 14,864 | |||||
Net interest income after provision for credit losses | 68,843 | 80,527 | 84,702 | 227,491 | 249,310 | |||||
Noninterest income | ||||||||||
Service charges on deposit accounts | 4,320 | 4,139 | 4,661 | 12,327 | 13,012 | |||||
Other service charges and fees | 5,555 | 5,361 | 5,450 | 16,439 | 16,677 | |||||
Presold mortgage loan fees and gains on sale | 690 | 588 | 325 | 1,616 | 1,288 | |||||
Commissions from sales of financial products | 1,371 | 1,377 | 1,207 | 4,068 | 3,926 | |||||
SBA loan sale gains | 1,108 | 1,336 | 1,101 | 3,339 | 2,052 | |||||
Bank-owned life insurance income | 1,205 | 1,179 | 1,104 | 3,548 | 3,216 | |||||
Securities losses, net | — | (186) | — | (1,161) | — | |||||
Other Income, net | (670) | 854 | 1,329 | 900 | 2,777 | |||||
Total noninterest income | 13,579 | 14,648 | 15,177 | 41,076 | 42,948 | |||||
Noninterest expenses | ||||||||||
Salaries incentives and commissions expense | 29,955 | 27,809 | 29,394 | 85,406 | 87,391 | |||||
Employee benefit expense | 6,495 | 6,703 | 6,539 | 19,467 | 19,097 | |||||
Total personnel expense | 36,450 | 34,512 | 35,933 | 104,873 | 106,488 | |||||
Occupancy and equipment expense | 4,856 | 4,850 | 5,003 | 15,294 | 15,042 | |||||
Merger and acquisition expenses | — | — | — | — | 13,506 | |||||
Intangibles amortization expense | 1,614 | 1,669 | 1,953 | 5,042 | 6,147 | |||||
Other operating expenses | 16,930 | 17,260 | 19,335 | 52,119 | 56,809 | |||||
Total noninterest expenses | 59,850 | 58,291 | 62,224 | 177,328 | 197,992 | |||||
Income before income taxes | 22,572 | 36,884 | 37,655 | 91,239 | 94,266 | |||||
Income tax expense | 3,892 | 8,172 | 7,762 | 18,575 | 19,809 | |||||
Net income | $ 18,680 | $ 28,712 | $ 29,893 | $ 72,664 | $ 74,457 | |||||
Earnings per common share: | ||||||||||
Basic | $ 0.45 | $ 0.70 | $ 0.73 | $ 1.76 | $ 1.82 | |||||
Diluted | 0.45 | 0.70 | 0.73 | 1.76 | 1.81 |
First Bancorp and Subsidiaries Financial Summary | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
($ in thousands - unaudited) | September 30, | June 30, 2024 | December 31, | September 30, | ||||
Assets | ||||||||
Cash and due from banks, noninterest-bearing | $ 74,034 | $ 90,468 | $ 100,891 | $ 95,257 | ||||
Due from banks, interest-bearing | 670,407 | 517,944 | 136,964 | 178,332 | ||||
Total cash and cash equivalents | 744,441 | 608,412 | 237,855 | 273,589 | ||||
Securities available for sale | 1,907,458 | 1,867,211 | 2,189,379 | 2,100,406 | ||||
Securities held to maturity | 521,801 | 523,600 | 533,678 | 535,460 | ||||
Presold mortgages and SBA loans held for sale | 9,888 | 7,247 | 2,667 | 8,060 | ||||
Loans | 8,013,538 | 8,069,848 | 8,150,102 | 8,027,037 | ||||
Allowance for credit losses on loans | (122,718) | (110,058) | (109,853) | (108,198) | ||||
Net loans | 7,890,820 | 7,959,790 | 8,040,249 | 7,918,839 | ||||
Premises and equipment, net | 144,868 | 147,110 | 150,957 | 151,981 | ||||
Accrued interest receivable | 14,146 | 14,576 | 17,063 | 17,604 | ||||
Goodwill | 503,216 | 504,830 | 508,257 | 513,629 | ||||
Other intangible assets, net | 32,890 | 35,605 | 37,351 | 34,414 | ||||
Bank-owned life insurance | 187,236 | 186,031 | 183,897 | 182,764 | ||||
Other assets | 196,666 | 206,393 | 213,589 | 241,214 | ||||
Total assets | $ 12,153,430 | $ 12,060,805 | $ 12,114,942 | $ 11,977,960 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing deposits | $ 3,350,237 | $ 3,339,678 | $ 3,379,876 | $ 3,503,050 | ||||
Interest-bearing deposits | 7,154,692 | 7,148,151 | 6,651,723 | 6,732,353 | ||||
Total deposits | 10,504,929 | 10,487,829 | 10,031,599 | 10,235,403 | ||||
Borrowings | 91,694 | 91,513 | 630,158 | 401,843 | ||||
Accrued interest payable | 5,566 | 5,728 | 5,699 | 5,511 | ||||
Other liabilities | 73,716 | 71,393 | 75,106 | 77,520 | ||||
Total liabilities | 10,675,905 | 10,656,463 | 10,742,562 | 10,720,277 | ||||
Shareholders' equity | ||||||||
Common stock | 970,450 | 967,239 | 963,990 | 962,644 | ||||
Retained earnings | 761,881 | 752,294 | 716,420 | 695,791 | ||||
Stock in rabbi trust assumed in acquisition | (1,148) | (1,139) | (1,385) | (1,375) | ||||
Rabbi trust obligation | 1,148 | 1,139 | 1,385 | 1,375 | ||||
Accumulated other comprehensive loss | (254,806) | (315,191) | (308,030) | (400,752) | ||||
Total shareholders' equity | 1,477,525 | 1,404,342 | 1,372,380 | 1,257,683 | ||||
Total liabilities and shareholders' equity | $ 12,153,430 | $ 12,060,805 | $ 12,114,942 | $ 11,977,960 |
First Bancorp and Subsidiaries Financial Summary | ||||||||||
TREND INFORMATION | ||||||||||
For the Three Months Ended | ||||||||||
September | June 30, | March 31, | December | September | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||
Return on average assets (1) | 0.61 % | 0.96 % | 0.84 % | 0.98 % | 0.99 % | |||||
Return on average common equity (2) | 5.48 % | 8.75 % | 7.78 % | 9.68 % | 9.90 % | |||||
Return on average tangible common equity (3) | 8.30 % | 13.60 % | 12.13 % | 15.76 % | 15.98 % | |||||
COMMON SHARE DATA | ||||||||||
Cash dividends declared - common | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | |||||
Book value per common share | $ 35.74 | $ 34.10 | $ 33.44 | $ 33.38 | $ 30.61 | |||||
Tangible book value per share (4) | $ 23.91 | $ 22.19 | $ 21.49 | $ 21.39 | $ 18.57 | |||||
Common shares outstanding at end of period | 41,340,099 | 41,187,943 | 41,156,286 | 41,109,987 | 40,085,498 | |||||
Weighted average shares outstanding - diluted | 41,366,743 | 41,262,091 | 41,249,636 | 41,207,945 | 41,199,058 | |||||
CAPITAL INFORMATION (estimates for current quarter) | ||||||||||
Tangible common equity to tangible assets (5) | 8.47 % | 7.90 % | 7.62 % | 7.56 % | 6.64 % | |||||
Common equity tier I capital ratio | 14.34 % | 13.99 % | 13.50 % | 13.20 % | 12.93 % | |||||
Total risk-based capital ratio | 16.44 % | 16.24 % | 15.85 % | 15.54 % | 15.26 % |
(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 components of the calculation. | ||||||||||
(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) | September | June 30, | March 31, | December | September | |||||
Net interest income - tax-equivalent (1) | $ 83,765 | $ 81,848 | $ 80,005 | $ 83,225 | $ 85,442 | |||||
Taxable equivalent adjustment (1) | 722 | 733 | 731 | 741 | 740 | |||||
Net interest income | 83,043 | 81,115 | 79,274 | 82,484 | 84,702 | |||||
Provision for credit losses | 14,200 | 541 | 1,200 | 2,950 | — | |||||
Noninterest income | 13,579 | 14,601 | 12,896 | 14,542 | 15,177 | |||||
Merger and acquisition expenses | — | — | — | 189 | — | |||||
Other noninterest expense | 59,850 | 58,291 | 59,187 | 56,197 | 62,224 | |||||
Income before income taxes | 22,572 | 36,884 | 31,783 | 37,690 | 37,655 | |||||
Income tax expense | 3,892 | 8,172 | 6,511 | 8,016 | 7,762 | |||||
Net income | 18,680 | 28,712 | 25,272 | 29,674 | 29,893 | |||||
Earnings per common share - diluted | $ 0.45 | $ 0.70 | $ 0.61 | $ 0.72 | $ 0.73 |
(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 |
First Bancorp and Subsidiaries Financial Summary | |||||||||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | ||||||||
Assets | |||||||||||||||||
Loans (1) (2) | $ 8,019,730 | 5.51 % | $ 111,076 | $ 8,070,815 | 5.50 % | $ 110,425 | $ 7,939,783 | 5.32 % | $ 106,514 | ||||||||
Taxable securities | 2,493,924 | 1.72 % | 10,779 | 2,591,617 | 1.75 % | 11,291 | 2,885,443 | 1.78 % | 12,936 | ||||||||
Non-taxable securities | 290,939 | 1.53 % | 1,116 | 292,045 | 1.54 % | 1,117 | 295,403 | 1.50 % | 1,118 | ||||||||
Short-term investments, primarily interest-bearing cash | 684,634 | 4.90 % | 8,438 | 507,635 | 4.71 % | 5,942 | 284,678 | 4.58 % | 3,283 | ||||||||
Total interest-earning assets | 11,489,227 | 4.55 % | 131,409 | 11,462,112 | 4.52 % | 128,775 | 11,405,307 | 4.31 % | 123,851 | ||||||||
Cash and due from banks | 84,060 | 84,674 | 94,963 | ||||||||||||||
Premises and equipment | 146,448 | 149,643 | 152,415 | ||||||||||||||
Other assets | 406,878 | 358,852 | 353,093 | ||||||||||||||
Total assets | $ 12,126,613 | $ 12,055,281 | $ 12,005,778 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing checking | $ 1,393,611 | 0.77 % | $ 2,688 | $ 1,397,367 | 0.70 % | $ 2,424 | $ 1,448,603 | 0.55 % | $ 2,007 | ||||||||
Money market deposits | 4,173,884 | 3.32 % | 34,878 | 4,004,175 | 3.26 % | 32,411 | 3,530,532 | 2.63 % | 23,397 | ||||||||
Savings deposits | 549,132 | 0.23 % | 317 | 570,283 | 0.22 % | 317 | 646,782 | 0.19 % | 307 | ||||||||
Other time deposits | 626,341 | 3.00 % | 4,726 | 738,290 | 3.30 % | 6,053 | 646,798 | 2.48 % | 4,037 | ||||||||
Time deposits > | 390,208 | 3.89 % | 3,811 | 371,471 | 3.83 % | 3,539 | 359,884 | 3.19 % | 2,893 | ||||||||
Total interest-bearing deposits | 7,133,176 | 2.59 % | 46,420 | 7,081,586 | 2.54 % | 44,744 | 6,632,599 | 1.95 % | 32,641 | ||||||||
Borrowings | 97,150 | 7.97 % | 1,946 | 167,976 | 7.09 % | 2,963 | 438,808 | 5.88 % | 6,508 | ||||||||
Total interest-bearing liabilities | 7,230,326 | 2.66 % | 48,366 | 7,249,562 | 2.65 % | 47,707 | 7,071,407 | 2.20 % | 39,149 | ||||||||
Noninterest-bearing checking | 3,376,061 | 3,350,723 | 3,547,447 | ||||||||||||||
Other liabilities | 75,197 | 76,713 | 83,675 | ||||||||||||||
Shareholders' equity | 1,445,029 | 1,378,283 | 1,303,249 | ||||||||||||||
Total liabilities and shareholders' equity | $ 12,126,613 | $ 12,055,281 | $ 12,005,778 | ||||||||||||||
Net yield on interest-earning assets and net interest income | 2.88 % | $ 83,043 | 2.84 % | $ 81,068 | 2.95 % | $ 84,702 | |||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | 2.90 % | $ 83,765 | 2.87 % | $ 81,801 | 2.97 % | $ 85,442 | |||||||||||
Interest rate spread | 1.89 % | 1.87 % | 2.11 % | ||||||||||||||
Average prime rate | 8.43 % | 8.50 % | 8.43 % |
(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 of |
First Bancorp and Subsidiaries Financial Summary | |||||||||||
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE | |||||||||||
For the Nine Months Ended | |||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | |||||
Assets | |||||||||||
Loans (1) (2) | $ 8,064,480 | 5.49 % | $ 331,346 | $ 7,840,344 | 5.27 % | $ 308,857 | |||||
Taxable securities | 2,633,093 | 1.77 % | 34,798 | 2,943,798 | 1.79 % | 39,415 | |||||
Non-taxable securities | 292,056 | 1.53 % | 3,350 | 296,985 | 1.52 % | 3,368 | |||||
Short-term investments, primarily interest-bearing cash | 490,782 | 4.72 % | 17,351 | 337,701 | 4.18 % | 10,546 | |||||
Total interest-earning assets | 11,480,411 | 4.50 % | 386,845 | 11,418,828 | 4.24 % | 362,186 | |||||
Cash and due from banks | 86,514 | 94,483 | |||||||||
Premises and equipment | 149,073 | 152,058 | |||||||||
Other assets | 381,806 | 369,968 | |||||||||
Total assets | $ 12,097,804 | $ 12,035,337 | |||||||||
Liabilities | |||||||||||
Interest-bearing checking | $ 1,398,137 | 0.71 % | $ 7,472 | $ 1,476,979 | 0.38 % | $ 4,205 | |||||
Money market deposits | 3,961,707 | 3.21 % | 95,102 | 3,253,840 | 2.15 % | 52,263 | |||||
Savings deposits | 567,202 | 0.22 % | 942 | 683,741 | 0.14 % | 705 | |||||
Other time deposits | 694,469 | 3.12 % | 16,235 | 773,755 | 2.56 % | 14,807 | |||||
Time deposits > | 372,561 | 3.78 % | 10,548 | 338,797 | 2.73 % | 6,907 | |||||
Total interest-bearing deposits | 6,994,076 | 2.49 % | 130,299 | 6,527,112 | 1.62 % | 78,887 | |||||
Borrowings | 280,370 | 6.25 % | 13,114 | 453,694 | 5.64 % | 19,125 | |||||
Total interest-bearing liabilities | 7,274,446 | 2.63 % | 143,413 | 6,980,806 | 1.88 % | 98,012 | |||||
Noninterest-bearing checking | 3,346,669 | 3,665,313 | |||||||||
Other liabilities | 76,922 | 91,997 | |||||||||
Shareholders' equity | 1,399,767 | 1,297,221 | |||||||||
Total liabilities and shareholders' equity | $ 12,097,804 | $ 12,035,337 | |||||||||
Net yield on interest-earning assets and net interest income | 2.83 % | $ 243,432 | 3.09 % | $ 264,174 | |||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | 2.86 % | $ 245,618 | 3.12 % | $ 266,313 | |||||||
Interest rate spread | 1.87 % | 2.36 % | |||||||||
Average prime rate | 8.48 % | 8.09 % |
(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 of |
Reconciliation of non-GAAP measures | ||||||||||
APPENDIX A: Calculation of Return on TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September | June 30, | March 31, | December | September | |||||
Net Income | $ 18,680 | $ 28,712 | $ 25,272 | $ 29,674 | $ 29,893 | |||||
Intangible asset amortization, net of taxes | 1,240 | 1,283 | 1,352 | 1,575 | 2,634 | |||||
Tangible Net income | $ 19,920 | $ 29,995 | $ 26,624 | $ 31,249 | $ 32,527 | |||||
Average common equity | $ 1,445,029 | $ 1,378,284 | $ 1,375,490 | $ 1,280,812 | $ 1,303,249 | |||||
Less: Average goodwill and other intangibles, net of related taxes | (489,987) | (491,318) | (492,733) | (494,127) | (495,743) | |||||
Average tangible common equity | $ 955,042 | $ 886,966 | $ 882,757 | $ 786,685 | $ 807,506 | |||||
Return on average common equity | 5.48 % | 8.75 % | 7.78 % | 9.68 % | 9.90 % | |||||
Return on average tangible common equity | 8.30 % | 13.60 % | 12.13 % | 15.76 % | 15.98 % | |||||
APPENDIX B: Reconciliation of Common Equity to TCE | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September | June 30, | March 31, | December | September | |||||
Total shareholders' common equity | $ 1,477,525 | $ 1,404,342 | $ 1,376,099 | $ 1,372,380 | $ 1,257,683 | |||||
Less: Goodwill and other intangibles, net of related taxes | (489,139) | (490,439) | (491,740) | (493,211) | (494,681) | |||||
Tangible common equity | $ 988,386 | $ 913,903 | $ 884,359 | $ 879,169 | $ 763,002 | |||||
APPENDIX C: Tangible Book Value Per Share | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands except per share data) | September | June 30, | March 31, | December | September | |||||
Tangible common equity (Appendix B) | $ 988,386 | $ 913,903 | $ 884,359 | $ 879,169 | $ 763,002 | |||||
Common shares outstanding | 41,340,099 | 41,187,943 | 41,156,286 | 41,109,987 | 41,085,498 | |||||
Tangible book value per common share | $ 23.91 | $ 22.19 | $ 21.49 | $ 21.39 | $ 18.57 | |||||
APPENDIX D: TCE Ratio | ||||||||||
For the Three Months Ended | ||||||||||
($ in thousands) | September | June 30, | March 31, | December | September | |||||
Tangible common equity (Appendix B) | $ 988,386 | $ 913,903 | $ 884,359 | $ 879,169 | $ 763,002 | |||||
Total assets | 12,153,430 | 12,060,805 | 12,091,597 | 12,114,942 | 11,977,960 | |||||
Less: Goodwill and other intangibles, net of related taxes | (489,139) | (490,439) | (491,740) | (493,211) | (494,681) | |||||
Tangible assets ("TA") | $ 11,664,291 | $ 11,570,366 | $ 11,599,857 | $ 11,621,731 | $ 11,483,279 | |||||
TCE to TA ratio | 8.47 % | 7.90 % | 7.62 % | 7.56 % | 6.64 % |
APPENDIX E: Adjusted EPS - diluted | ||||
For the Three | For the Nine | |||
September 30, | September 30, | |||
Net income | $ 18,680 | $ 72,664 | ||
Impact of Hurricane Helene | ||||
Provision for credit losses | 13,000 | 13,000 | ||
Building repairs and maintenance | 300 | 300 | ||
Other | 96 | 96 | ||
Total | 13,396 | 13,396 | ||
Less, tax impact | (3,102) | (3,102) | ||
After-tax impact of Hurricane Helene | 10,294 | 10,294 | ||
Adjusted net income | $ 28,974 | $ 82,958 | ||
Weighted average shares outstanding - diluted | 41,366,743 | 41,294,137 | ||
EPS - diluted | $ 0.45 | $ 1.76 | ||
Adjusted EPS - diluted | $ 0.70 | $ 2.01 |
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SOURCE First Bancorp
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