Fourth Quarter 2025 Financial Data
(Dollars in 000s, except per share data)
Q4-2025
Q3-2025
Q4-2024
Summary Income Statement
Total interest income
$ 143,634
$ 144,200
$ 132,395
Total interest expense
37,435
41,711
43,554
Net interest income
106,199
102,489
88,841
Provision for credit losses
4,732
3,442
507
Noninterest income
(22,299)
(12,879)
(23,177)
Noninterest expenses
62,223
60,211
58,279
Income tax expense
1,232
5,594
3,327
Net income
$ 15,713
$ 20,363
$ 3,551
Key Metrics
Diluted EPS
$ 0.38
$ 0.49
$ 0.08
Adjusted diluted EPS (1)
$ 1.19
$ 1.01
$ 0.76
Book value per share
39.89
38.67
34.96
Tangible book value per share
28.23
26.98
23.17
ROA
0.49 %
0.64 %
0.12 %
Adjusted ROA (1)
1.54 %
1...
Fourth Quarter 2025 Financial Data
(Dollars in 000s, except per share data)
Q4-2025
Q3-2025
Q4-2024
Summary Income Statement
Total interest income
$ 143,634
$ 144,200
$ 132,395
Total interest expense
37,435
41,711
43,554
Net interest income
106,199
102,489
88,841
Provision for credit losses
4,732
3,442
507
Noninterest income
(22,299)
(12,879)
(23,177)
Noninterest expenses
62,223
60,211
58,279
Income tax expense
1,232
5,594
3,327
Net income
$ 15,713
$ 20,363
$ 3,551
Key Metrics
Diluted EPS
$ 0.38
$ 0.49
$ 0.08
Adjusted diluted EPS (1)
$ 1.19
$ 1.01
$ 0.76
Book value per share
39.89
38.67
34.96
Tangible book value per share
28.23
26.98
23.17
ROA
0.49 %
0.64 %
0.12 %
Adjusted ROA (1)
1.54 %
1.31 %
1.03 %
ROCE
3.83 %
5.14 %
1.29 %
Adjusted ROCE (1)
12.01 %
10.55 %
8.60 %
ROTCE
5.80 %
7.83 %
1.93 %
Adjusted ROTCE (1)
17.45 %
15.66 %
13.39 %
NIM
3.58 %
3.46 %
3.05 %
NIM- T/E
3.60 %
3.47 %
3.08 %
Quarterly NCO ratio
0.05 %
0.14 %
0.04 %
ACL ratio
1.42 %
1.44 %
1.51 %
Capital Ratios (2)
Tangible common equity to tangible assets
9.61 %
9.12 %
8.22 %
Common equity tier I capital ratio
14.06 %
14.35 %
14.35 %
Total risk-based capital ratio
16.08 %
16.58 %
16.63 %
(1) Q4-2025, Q3-2025 and Q4-2024 adjusted to exclude impact of securities loss of $43.7 million (after tax $33.6 million), $27.9 million (after tax $21.4 million) and $36.8 million (after tax $28.2 million), respectively. See Appendices D, E, F and G.
(2) December 31, 2025 ratios are preliminary.
Fourth Quarter 2025 Highlights
- Diluted earnings per share ("D-EPS") was $0.38 per share for the fourth quarter of 2025 compared to $0.49 for the linked quarter and $0.08 for the like quarter.
- Excluding the impact of the $43.7 million securities loss, adjusted D-EPS was $1.19 per share for the fourth quarter of 2025.
- Loan growth accelerated in the fourth quarter, resulting in total loans of $8.7 billion at December 31, 2025, representing an increase of $303.2 million, or 14.3% annualized. Total loan yield was 5.58%, down 11 basis points from the linked quarter and up 11 basis points from the like quarter.
- The yield on securities increased 14 basis points to 2.69% for the quarter ended December 31, 2025 from 2.55% for the linked quarter. A securities loss-earnback transaction was executed during November, including the sale of $342.0 million of securities and the purchase of $228.4 million of securities with a weighted average yield of 4.36%. The increased yield on the new purchases was included for half of the fourth quarter.
- Total cost of funds decreased 15 basis points to 1.36% for the quarter ended December 31, 2025 from 1.51% for the linked quarter and 1.62% for the like quarter.
- Average core deposits were $10.8 billion for the fourth quarter of 2025, a decrease of $7.8 million from the linked quarter. Total cost of deposits was 1.32%, a decrease of 14 basis points from 1.46% for the linked quarter and a decrease of 25 basis points from the like quarter at 1.57%.
- Expense management continues to be a focus. Noninterest expenses of $62.2 million represented a $2.0 million increase from the linked quarter and $3.9 million from the like quarter. The linked quarter increase was driven by a $1.8 million increase in Other operating expenses and a $0.6 million increase in Total personnel expense.
- During the fourth quarter of 2025, the Company sold an office building and recognized a pretax gain of $4.6 million.
- Noninterest-bearing demand deposits were $3.5 billion, representing 32% of total deposits at December 31, 2025. During the fourth quarter of 2025, period end customer deposits contracted by $132.8 million.
- The loan-to-deposit ratio increased to 81.2% as of December 31, 2025.
- The Company repaid $18 million of subordinated debt during the fourth quarter. As a result, along with loan growth, certain regulatory capital ratios declined during the quarter.
, /PRNewswire/ – First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited fourth quarter and full year earnings today. The Company announced net income of $15.7 million, or $0.38 D-EPS, for the three months ended December 31, 2025 compared to $20.4 million, or $0.49 D-EPS, for the three months ended September 30, 2025 ("linked quarter") and $3.6 million, or $0.08 D-EPS, for the fourth quarter of 2024 ("like quarter"). For the twelve months ended December 31, 2025, the Company recorded net income of $111.0 million, or $2.68 per diluted common share, compared to $76.2 million, or $1.84 per diluted common share, for the twelve months ended December 31, 2024.
Adjusting for the securities loss-earnback transaction completed in November, adjusted net income was $49.3 million, or $1.19 adjusted D-EPS, for the fourth quarter of 2025. For the twelve months ended December 31, 2025, excluding the securities loss-earnback transactions in the third and fourth quarters, adjusted net income was $166.1 million, or $4.01 adjusted D-EPS.
The Company continued to enhance net interest income and net interest margin ("NIM") during the fourth quarter of 2025. The Company recorded net interest income of $106.2 million for the fourth quarter of 2025, compared to $102.5 million for the linked quarter and $88.8 million for the like quarter. NIM for the fourth quarter of 2025 expanded to 3.58% from 3.46% for the linked quarter and 3.05% for the like quarter.
First Bancorp also continued to maintain expense control with noninterest expenses of $62.2 million for the fourth quarter of 2025, up slightly from $60.2 million for the linked quarter and $58.3 million for the like quarter. For the twelve months ended December 31, 2025, the Company recorded noninterest expense of $239.3 million, up slightly from $235.6 million, for the twelve months ended December 31, 2024.
The results for the fourth quarter 2025 include a securities loss of $43.7 million ($33.6 million after-taxes, or negative $0.81 per diluted share) from the securities loss-earnback transaction that included the sale of $342.0 million of available-for-sale securities yielding of 1.67%. The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the fourth quarter of 2025 are presented in Appendix D.
The results for the fourth quarter of 2025 also include a $1.6 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($1.2 million after-taxes or $0.03 per diluted share).The reconciliations from net income and per share impact for the fourth quarter of 2025 are presented in Appendix H.
Richard H. Moore, Chairman and CEO of the Company, stated "First Bancorp closed 2025 with strong momentum, highlighted by a 51 basis-point expansion in net interest margin for the year, solid loan growth and continued expense discipline. During the quarter we grew loans at an annualized rate of more than 14% and our earnings continued to benefit from rising asset yields as higher-yielding assets replaced lower-yielding COVID-era assets. Our liquidity, capital and credit quality remain strong and we are very pleased with the Bank’s performance and its accelerating momentum as we move into 2026."
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2025 was $106.2 million, an increase of 3.6% from the linked quarter of $102.5 million and 19.5% from the like quarter of $88.8 million. The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025, while increasing loan yields through originations as well as increased securities yields resulting from the securities loss-earnback transactions executed in the fourth quarter of 2024 and the third and fourth quarters of 2025.
The Company’s NIM for the fourth quarter of 2025 was 3.58%, an increase of 12 basis points from the linked quarter and 53 basis points from the like quarter. Within interest-earning assets, average loans increased $237.8 million while loan yields decreased 11 basis points during the quarter to 5.58%, attributable to the three rate cuts by the Federal Reserve between September and December 2025. Also, we executed a securities loss-earnback transaction including the purchase of $228.4 million of securities with a weighted average yield of 4.36% that contributed to the 14 basis point increase in the yield on securities as compared to the linked quarter. During the quarter ended December 31, 2025, the cost of interest-bearing deposits decreased 21 basis points from the linked quarter and declined 34 basis points from the like quarter, attributable to the three rate cuts by the Federal Reserve between September and December 2024 and the three additional rate cuts between September and December 2025. The like quarter expansion of NIM was driven by the same factors described above resulting in an increase of 73 basis points in securities yield, an increase of 11 basis points in loan yields, and a decrease of 34 basis points in the cost of interest-bearing deposits.
For the Three Months Ended
YIELD INFORMATION
December 31, 2025
September 30, 2025
December 31, 2024
Yield on loans
5.58 %
5.69 %
5.47 %
Yield on securities
2.69 %
2.55 %
1.96 %
Yield on other earning assets
4.31 %
4.64 %
4.49 %
Yield on total interest-earning assets
4.84 %
4.86 %
4.55 %
Cost of interest-bearing deposits
1.97 %
2.18 %
2.31 %
Cost of borrowings
7.04 %
7.20 %
7.66 %
Cost of total interest-bearing liabilities
2.02 %
2.24 %
2.38 %
Total cost of funds
1.36 %
1.51 %
1.62 %
Cost of total deposits
1.32 %
1.46 %
1.57 %
Net interest margin (1)
3.58 %
3.46 %
3.05 %
Net interest margin - tax-equivalent (2)
3.60 %
3.47 %
3.08 %
Average prime rate
7.02 %
7.46 %
7.81 %
(1) Calculated by dividing annualized net interest income by average earning assets for the period.
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense.
See Appendix I regarding loan purchase discount accretion and its impact on the Company’s NIM.
Provision for Credit Losses and Credit Quality
For the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, the Company recorded $4.7 million, $3.4 million and $0.5 million in provision for credit losses, respectively. The provision for the fourth quarter of 2025 was driven by net charge-offs of $1.1 million and reserves related to $303.2 million of loan growth, partially offset by the $1.6 million reduction in reserves for potential credit exposure from Hurricane Helene. The net effect of these factors was a $2.6 million increase in the allowance for credit losses to $123.6 million, or 1.42% of loans. Additionally, the $1.0 million provision for unfunded commitments during the quarter was the result of an increase in the level of available unfunded lending commitments. The provision for the fourth quarter of 2024 was driven by loan growth and net charge offs.
Based upon its continuing evaluation of the potential impacts from Hurricane Helene, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $1.9 million as of December 31, 2025. The remaining incremental reserve contributes two basis points to the Allowance for Credit Losses at period end.
Asset quality remained strong with annualized net loan charge-offs of 0.05% for the fourth quarter of 2025. Total nonperforming assets ("NPAs") totaled $37.7 million at December 31, 2025, or 0.30% of total assets, down slightly from 0.31% at September 30, 2025 and consistent with 0.30% at December 31, 2024.
The following table presents the summary of NPAs and asset quality ratios for each period.
| **ASSET QUALITY DATA **($ in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | |||
| Nonperforming assets | ||||||
| Nonaccrual loans | $ 36,315 | $ 37,289 | $ 31,779 | |||
| Accruing loans > 90 days past due | — | — | — | |||
| Total nonperforming loans | 36,315 | 37,289 | 31,779 | |||
| Foreclosed real estate | 1,425 | 1,718 | 4,965 | |||
| Total nonperforming assets | $ 37,740 | $ 39,007 | $ 36,744 | |||
| **Asset Quality Ratios ** | ||||||
| Quarterly net charge-offs to average loans - annualized | 0.05 % | 0.14 % | 0.04 % | |||
| Nonperforming loans to total loans | 0.42 % | 0.44 % | 0.39 % | |||
| Nonperforming assets to total assets | 0.30 % | 0.31 % | 0.30 % | |||
| Allowance for credit losses to total loans | 1.42 % | 1.44 % | 1.51 % |
Noninterest Income
Total noninterest income for the fourth quarter of 2025 was negative $22.3 million, reflecting the inclusion of the $43.7 million loss on securities. Excluding the loss on securities, noninterest income totaled $21.4 million during the fourth quarter of 2025, a 42.6% increase from the $15.0 million adjusted noninterest income recorded in the linked quarter and a 57.0% increase from the $13.6 million recorded for the like quarter. As compared to the linked quarter, noninterest income, excluding the loss on securities, increased primarily due to a pretax gain of $4.6 million realized upon the sale of an office building during the quarter.
Noninterest Expenses
Noninterest expenses amounted to $62.2 million for the fourth quarter of 2025 compared to $60.2 million for the linked quarter and $58.3 million for the like quarter. The $2.0 million, or 3.3%, increase in noninterest expense from the linked quarter was driven by a $0.6 million increase in total personnel expenses arising from increased total personnel expense and incentives as well as a $1.8 million increase in other operating expenses. The $3.9 million increase from the like quarter was driven by a $2.3 million increase in total personnel expenses and a $1.7 million increase in other operating expenses. For the fourth quarter of 2025, other operating expenses included several elevated expense categories arising from increased customer-driven and seasonal activity.
Income Taxes
Income tax expense totaled $1.2 million for the fourth quarter of 2025 compared to $5.6 million for the linked quarter and $3.3 million for the like quarter. These equated to effective tax rates of 7.3%, 21.6% and 48.4% for the respective periods. The fourth quarter of 2025 included approximately $2.1 million of net discrete tax benefits, primarily arising from state taxes, including the continued NC graduated tax rate reductions.
Balance Sheet
Total assets at December 31, 2025 were $12.7 billion, a decrease of $81.9 million, or 2.5% annualized, from the linked quarter and an increase of $520.6 million, or 4.3%, from a year earlier.
Key period end balance sheet components are presented below.
| BALANCES*($ in thousands)* | December 31, 2025 | September 30, 2025 | December 31, 2024 | Change 4Q25 vs 3Q25 | Change 4Q25 vs 4Q24 | |||||
| Total assets | $ 12,668,339 | $ 12,750,263 | $ 12,147,694 | (0.6) % | 4.3 % | |||||
| Loans | 8,722,419 | 8,419,224 | 8,094,676 | 3.6 % | 7.8 % | |||||
| Investment securities | 2,561,655 | 2,680,401 | 2,563,060 | (4.4) % | (0.1) % | |||||
| Total cash and cash equivalents | 309,595 | 597,975 | 507,507 | (48.2) % | (39.0) % | |||||
| Noninterest-bearing deposits | 3,486,985 | 3,580,560 | 3,367,624 | (2.6) % | 3.5 % | |||||
| Interest-bearing deposits | 7,261,436 | 7,300,610 | 7,162,901 | (0.5) % | 1.4 % | |||||
| Borrowings | 74,569 | 92,421 | 91,876 | (19.3) % | (18.8) % | |||||
| Shareholders’ equity | 1,654,168 | 1,603,323 | 1,445,611 | 3.2 % | 14.4 % |
Driven by prepayments, maturities and sales in excess of reinvestments, total investment securities decreased to $2.6 billion at December 31, 2025, reflecting a $118.7 million decrease from the linked quarter. Total unrealized losses on available for sale investment securities was $194.1 million at December 31, 2025, as compared to $251.8 million at September 30, 2025 and $368.1 million at December 31, 2024. As part of the November securities loss-earnback transaction in the securities portfolio, $342.0 million of securities were sold at a loss of $43.7 million and $228.4 million of securities were purchased, with a weighted average yield of 4.36%.
Total loans amounted to $8.7 billion at December 31, 2025, an increase of $303.2 million, or 14.3% annualized, from September 30, 2025 and an increase of $627.7 million, or 7.8%, from December 31, 2024. Please see below table for total loan portfolio mix. As of December 31, 2025, there were no notable concentrations in geographies within North Carolina and South Carolina 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 6.3% of the total portfolio at December 31, 2025, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.
The following table presents the period end balance and portfolio percentage by loan category.
LOAN PORTFOLIO
December 31, 2025
September 30, 2025
December 31, 2024
($ in thousands)
Amount
Percentage
Amount
Percentage
Amount
Percentage
Commercial and industrial
$ 1,046,438
12 %
$ 904,226
11 %
$ 919,690
11 %
Construction, development & other land loans
753,199
9 %
688,302
8 %
647,167
8 %
Commercial real estate - owner occupied
1,353,912
15 %
1,337,345
16 %
1,248,812
16 %
Commercial real estate - non-owner occupied
2,843,555
33 %
2,773,349
33 %
2,625,554
33 %
Multi-family real estate
537,015
6 %
535,681
6 %
506,407
6 %
Residential 1-4 family real estate
1,736,453
20 %
1,743,884
21 %
1,729,322
21 %
Home equity loans/lines of credit
383,652
4 %
365,488
4 %
345,883
4 %
Consumer loans
67,458
1 %
70,031
1 %
70,653
1 %
Loans, gross
8,721,682
100 %
8,418,306
100 %
8,093,488
100 %
Unamortized net deferred loan fees
737
918
1,188
Total loans
$ 8,722,419
$ 8,419,224
$ 8,094,676
Total deposits were $10.7 billion at December 31, 2025, a decrease of $132.7 million, or 4.8% annualized, from September 30, 2025 and an increase of $217.9 million, or 2.1%, from December 31, 2024.
The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at December 31, 2025. As presented in the table below, our deposit mix has remained relatively consistent.
DEPOSIT PORTFOLIO
December 31, 2025
September 30, 2025
December 31, 2024
($ in thousands)
Amount
Percentage
Amount
Percentage
Amount
Percentage
Noninterest-bearing checking accounts
$ 3,486,985
32 %
$ 3,580,560
33 %
$ 3,367,624
32 %
Interest-bearing checking accounts
1,420,795
13 %
1,418,378
13 %
1,398,395
13 %
Money market accounts
4,510,356
42 %
4,527,728
41 %
4,285,405
41 %
Savings accounts
526,643
5 %
532,462
5 %
542,133
5 %
Other time deposits
493,282
5 %
504,942
5 %
566,514
5 %
Time deposits >$250,000
305,473
3 %
312,255
3 %
360,854
4 %
Total customer deposits
10,743,534
100 %
10,876,325
100 %
10,520,925
100 %
Brokered deposits
4,887
— %
4,845
— %
9,600
— %
Total deposits
$ 10,748,421
100 %
$ 10,881,170
100 %
$ 10,530,525
100 %
As of December 31, 2025 and September 30, 2025, estimated insured deposits totaled $6.5 billion, or 60.2% of total deposits. In addition, at December 31, 2025 and September 30, 2025, there were collateralized deposits of $730.4 million and $682.7 million, respectively, such that approximately 67.0% and 66.0%, respectively, of our total deposits were insured or collateralized at those dates.
Capital
The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at December 31, 2025 of 16.08%, down from the linked quarter ratio of 16.58% and from the like quarter ratio of 16.63%. The decrease during the fourth quarter of 2025 in risk-based capital ratios was driven by the $303.2 million of loan growth during the quarter, which carries a higher risk weight than short term investments, along with the repayment of $18.0 million of subordinated debt during the quarter.
The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital. AOCI is included in the Company’s tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 9.61% at December 31, 2025, an increase of 49 basis points from the linked quarter and 139 basis points from December 31, 2024. The fourth quarter increase in TCE was driven by improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter, partially a result of the securities loss-earnback transaction along with market improvements. Please refer to Appendix A for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix C for a calculation of the TCE ratio (a non-GAAP measure).
| CAPITAL RATIOS | December 31, 2025 (estimated) | September 30, 2025 | December 31, 2024 | |||
| Tangible common equity to tangible assets (non-GAAP) | 9.61 % | 9.12 % | 8.22 % | |||
| Common equity tier I capital ratio | 14.06 % | 14.35 % | 14.35 % | |||
| Tier I leverage ratio | 11.19 % | 11.18 % | 11.15 % | |||
| Tier I risk-based capital ratio | 14.83 % | 15.14 % | 15.17 % | |||
| Total risk-based capital ratio | 16.08 % | 16.58 % | 16.63 % |
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 December 31, 2025 was 14.9%. In addition, the Company had approximately $2.5 billion in available lines of credit at that date resulting in a total liquidity ratio of 32.8%.
About First Bancorp
First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.7 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina. Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business. First Bank also provides SBA loans to customers through its nationwide network of lenders. Member FDIC, Equal Housing Lender.
Please visit our website at www.LocalFirstBank.com for more information.
First Bancorp’s common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."
Caution about Forward-Looking Statements: This News Release release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company’s customers, the Company’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company’s most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.
Non-GAAP Measures
In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP"). Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company’s financial performance requires an understanding of the factors underlying such performance. Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted D-EPS.
First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED INCOME STATEMENT
For the Three Months Ended
For the Twelve Months Ended
($ in thousands, except per share data - unaudited)
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Interest income
Interest and fees on loans
$ 120,020
$ 118,822
$ 109,835
$ 462,306
$ 441,181
Interest on investment securities:
Taxable interest income
18,103
17,571
12,712
68,055
47,510
Tax-exempt interest income
1,115
1,114
1,116
4,461
4,466
Other, principally overnight investments
4,396
6,693
8,732
22,413
26,083
Total interest income
143,634
144,200
132,395
557,235
519,240
Interest expense
Interest on deposits
35,959
40,035
41,786
152,518
172,085
Interest on borrowings
1,476
1,676
1,768
6,470
14,882
Total interest expense
37,435
41,711
43,554
158,988
186,967
Net interest income
106,199
102,489
88,841
398,247
332,273
Provision for credit losses
4,732
3,442
507
11,502
16,448
Net interest income after provision for credit losses
101,467
99,047
88,334
386,745
315,825
Noninterest income
Service charges on deposit accounts
4,269
4,225
4,293
16,237
16,620
Other service charges and fees
5,653
6,355
5,828
24,486
22,267
Presold mortgage loan fees and gains on sale
583
471
676
1,819
2,292
Commissions from sales of financial products
1,800
1,678
1,202
6,274
5,270
SBA loan sale gains
—
869
291
1,072
3,630
Bank-owned life insurance income
1,375
1,289
1,225
5,113
4,773
Securities losses, net
(43,722)
(27,905)
(36,820)
(71,627)
(37,981)
Other Income, net
7,743
139
128
8,691
1,028
Total noninterest income
(22,299)
(12,879)
(23,177)
(7,935)
17,899
Noninterest expenses
Salaries, incentives and commissions expense
30,747
31,065
28,447
119,478
113,853
Employee benefit expense
6,673
5,751
6,702
24,706
26,169
Total personnel expense
37,420
36,816
35,149
144,184
140,022
Occupancy and equipment expense
4,903
5,145
4,700
20,435
20,535
Intangibles amortization expense
1,294
1,394
1,563
5,672
6,604
Other operating expenses
18,606
16,856
16,867
69,019
68,446
Total noninterest expenses
62,223
60,211
58,279
239,310
235,607
Income before income taxes
16,945
25,957
6,878
139,500
98,117
Income tax expense
1,232
5,594
3,327
28,452
21,902
Net income
$ 15,713
$ 20,363
$ 3,551
$ 111,048
$ 76,215
Earnings per common share:
Basic
$ 0.38
$ 0.49
$ 0.09
$ 2.68
$ 1.85
Diluted
0.38
0.49
0.08
2.68
1.84
First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)
December 31, 2025
September 30, 2025
December 31, 2024
Assets
Cash and due from banks, noninterest-bearing
$ 146,759
$ 138,369
$ 78,596
Due from banks, interest-bearing
162,836
459,606
428,911
Total cash and cash equivalents
309,595
597,975
507,507
Securities available for sale
2,048,556
2,165,668
2,043,062
Securities held to maturity
513,099
514,733
519,998
Presold mortgages and SBA loans held for sale
7,790
4,032
5,942
Loans
8,722,419
8,419,224
8,094,676
Allowance for credit losses on loans
(123,581)
(120,948)
(122,572)
Net loans
8,598,838
8,298,276
7,972,104
Premises and equipment, net
139,125
141,441
143,459
Accrued interest receivable
39,206
35,986
36,329
Goodwill
478,750
478,750
478,750
Other intangible assets, net
17,232
18,526
22,904
Bank-owned life insurance
193,286
191,911
188,460
Other assets
322,862
302,965
229,179
Total assets
$ 12,668,339
$ 12,750,263
$ 12,147,694
Liabilities
Deposits:
Noninterest-bearing deposits
$ 3,486,985
$ 3,580,560
$ 3,367,624
Interest-bearing deposits
7,261,436
7,300,610
7,162,901
Total deposits
10,748,421
10,881,170
10,530,525
Borrowings
74,569
92,421
91,876
Accrued interest payable
3,747
4,436
4,604
Other liabilities
187,434
168,913
75,078
Total liabilities
11,014,171
11,146,940
10,702,083
Shareholders’ equity
Common stock
973,884
973,235
971,313
Retained earnings
829,659
823,483
756,327
Stock in rabbi trust assumed in acquisition
(885)
(877)
(1,148)
Rabbi trust obligation
885
877
1,148
Accumulated other comprehensive loss
(149,375)
(193,395)
(282,029)
Total shareholders’ equity
1,654,168
1,603,323
1,445,611
Total liabilities and shareholders’ equity
$ 12,668,339
$ 12,750,263
$ 12,147,694
First Bancorp and Subsidiaries
Financial Summary
TREND INFORMATION
For the Three Months Ended
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
PERFORMANCE RATIOS (annualized)
ROA (1)
0.49 %
0.64 %
1.24 %
1.21 %
0.12 %
Adjusted ROA (2)
1.54 %
1.31 %
1.24 %
1.21 %
1.03 %
ROCE (3)
3.83 %
5.14 %
10.11 %
10.06 %
0.96 %
Adjusted ROCE (4)
12.01 %
10.55 %
10.11 %
10.06 %
8.60 %
ROTCE (5)
5.80 %
7.83 %
15.25 %
15.54 %
1.93 %
Adjusted ROTCE (6)
17.45 %
15.66 %
15.25 %
15.54 %
13.39 %
COMMON SHARE DATA
Cash dividends declared - common
$ 0.23
$ 0.23
$ 0.23
$ 0.22
$ 0.22
Book value per common share
$ 39.89
$ 38.67
$ 37.53
$ 36.46
$ 34.96
Tangible book value per share (7)
$ 28.23
$ 26.98
$ 25.82
$ 24.69
$ 23.17
Common shares outstanding at end of period
41,466,227
41,465,437
41,468,098
41,368,828
41,347,418
Weighted average shares outstanding - diluted
41,481,132
41,481,542
41,441,393
41,406,525
41,422,973
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (8)
9.61 %
9.12 %
8.83 %
8.55 %
8.22 %
Common equity tier I capital ratio
14.06 %
14.35 %
14.64 %
14.52 %
14.35 %
Total risk-based capital ratio
16.08 %
16.58 %
16.90 %
16.80 %
16.63 %
(1) Calculated by dividing annualized net income by average assets.
(2) See Appendix E for a reconciliation of ROA to adjusted ROA.
(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix F for the components of the calculation.
(4) See Appendix F for a reconciliation of ROCE to adjusted ROCE.
(5) Return on average tangible common equity is a non-GAAP financial measure. See Appendix G for the components of the calculation and the reconciliation of average common equity to average TCE.
(6) See Appendix G for a reconciliation of ROTCE to adjusted ROTCE.
(7) Tangible book value per share is a non-GAAP financial measure. See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.
(8) Tangible common equity ratio is a non-GAAP financial measure. See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
For the Three Months Ended
INCOME STATEMENT
($ in thousands except per share data)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net interest income
$ 106,199
$ 102,489
$ 96,676
$ 92,883
$ 88,841
Provision for credit losses
4,732
3,442
2,212
1,116
507
Noninterest income
(22,299)
(12,879)
14,341
12,902
(23,177)
Noninterest expense
62,223
60,211
58,983
57,893
58,279
Income before income taxes
16,945
25,957
49,822
46,776
6,878
Income tax expense
1,232
5,594
11,256
10,370
3,327
Net income
15,713
20,363
38,566
36,406
3,551
Earnings per common share - diluted
$ 0.38
$ 0.49
$ 0.93
$ 0.88
$ 0.08
**First Bancorp and Subsidiaries **Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
For the Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
($ in thousands)
Average
Volume
Interest
Earned
or Paid
Average
Rate
Average
Volume
Interest
Earned
or Paid
Average
Rate
Average
Volume
Interest
Earned
or Paid
Average
Rate
Assets
Loans (1) (2)
$ 8,535,422
$ 120,020
5.58 %
$ 8,297,643
$ 118,822
5.69 %
$ 7,993,671
$ 109,835
5.47 %
Taxable securities
2,566,169
18,103
2.82 %
2,637,711
17,571
2.66 %
2,535,232
12,712
2.01 %
Non-taxable securities
285,729
1,115
1.56 %
286,750
1,114
1.56 %
289,922
1,116
1.54 %
Short-term investments, primarily interest-bearing cash
404,658
4,396
4.31 %
571,922
6,693
4.64 %
773,655
8,732
4.49 %
Total interest-earning assets
11,791,978
143,634
4.84 %
11,794,026
144,200
4.86 %
11,592,480
132,395
4.55 %
Cash and due from banks
147,748
149,771
80,481
Premises and equipment
140,552
141,858
144,467
Other assets
635,861
554,361
426,343
Total assets
$ 12,716,139
$ 12,640,016
$ 12,243,771
Liabilities
Interest-bearing checking
$ 1,381,272
$ 2,100
0.60 %
$ 1,403,683
$ 2,420
0.68 %
$ 1,389,063
$ 2,438
0.70 %
Money market deposits
4,539,138
28,358
2.48 %
4,510,662
31,674
2.79 %
4,273,170
31,430
2.93 %
Savings deposits
530,147
249
0.19 %
535,464
267
0.20 %
542,861
269
0.20 %
Other time deposits
503,149
2,937
2.32 %
514,143
3,029
2.34 %
598,152
4,192
2.79 %
Time deposits >$250,000
305,844
2,315
3.00 %
328,207
2,645
3.20 %
377,693
3,457
3.64 %
Total interest-bearing deposits
7,259,550
35,959
1.97 %
7,292,159
40,035
2.18 %
7,180,939
41,786
2.31 %
Borrowings
83,117
1,476
7.04 %
92,349
1,676
7.20 %
91,789
1,768
7.66 %
Total interest-bearing liabilities
7,342,667
37,435
2.02 %
7,384,508
41,711
2.24 %
7,272,728
43,554
2.38 %
Noninterest-bearing checking
3,575,317
3,550,499
3,427,690
Other liabilities
170,179
133,905
77,172
Shareholders’ equity
1,627,976
1,571,104
1,466,181
Total liabilities and shareholders’ equity
$ 12,716,139
$ 12,640,016
$ 12,243,771
Net yield on interest-earning assets and net interest income
$ 106,199
3.58 %
$ 102,489
3.46 %
$ 88,841
3.05 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)
$ 106,601
3.60 %
$ 102,828
3.47 %
$ 89,587
3.08 %
Interest rate spread
2.82 %
2.62 %
2.17 %
Average prime rate
7.02 %
7.46 %
7.81 %
| (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 $(0.2) million, $(0.3) million and $(0.3) million for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. |
| (2) Includes accretion of discount on acquired loans of $1.3 million, $1.6 million and $2.2 million for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. |
| (3) Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
For the Twelve Months Ended
December 31, 2025
December 31, 2024
($ in thousands)
Average
Volume
Interest
Earned
or Paid
Average
Rate
Average
Volume
Interest
Earned
or Paid
Average
Rate
Assets
Loans (1) (2)
$ 8,283,246
$ 462,306
5.58 %
$ 8,046,681
$ 441,181
5.48 %
Taxable securities
2,632,412
68,055
2.59 %
2,608,494
47,510
1.82 %
Non-taxable securities
287,298
4,461
1.55 %
291,520
4,466
1.53 %
Short-term investments, primarily interest-bearing cash
496,404
22,413
4.52 %
561,886
26,083
4.64 %
Total interest-earning assets
11,699,360
557,235
4.76 %
11,508,581
519,240
4.51 %
Cash and due from banks
146,136
84,997
Premises and equipment
141,884
147,916
Other assets
524,650
393,001
Total assets
$ 12,512,030
$ 12,134,495
Liabilities
Interest-bearing checking
$ 1,412,605
$ 9,443
0.67 %
$ 1,395,856
$ 9,910
0.71 %
Money market deposits
4,437,314
119,158
2.69 %
4,039,999
126,531
3.13 %
Savings deposits
535,863
1,009
0.19 %
564,473
1,209
0.21 %
Other time deposits
527,357
12,406
2.35 %
666,868
20,429
3.06 %
Time deposits >$250,000
332,895
10,502
3.15 %
373,851
14,006
3.75 %
Total interest-bearing deposits
7,246,034
152,518
2.10 %
7,041,047
172,085
2.44 %
Borrowings
89,889
6,470
7.20 %
232,967
14,882
6.39 %
Total interest-bearing liabilities
7,335,923
158,988
2.17 %
7,274,014
186,967
2.57 %
Noninterest-bearing checking
3,506,429
3,367,035
Other liabilities
119,805
76,985
Shareholders’ equity
1,549,873
1,416,461
Total liabilities and shareholders’ equity
$ 12,512,030
$ 12,134,495
Net yield on interest-earning assets and net interest income
$ 398,247
3.40 %
$ 332,273
2.89 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)
$ 399,636
3.42 %
$ 335,256
2.93 %
Interest rate spread
2.59 %
1.94 %
Average prime rate
7.37 %
8.31 %
| (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 $(1.1) million and $(1.6) million for the twelve months ended December 31, 2025 and December 31, 2024, respectively. |
| (2) Includes accretion of discount on acquired loans of $6.1 million and $8.9 million for the twelve months ended December 31, 2025 and December 31, 2024, respectively. |
| (3) Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense. |
Reconciliation of non-GAAP measures APPENDIX A: Reconciliation of Common Equity to Tangible Common Equity ("TCE")
For the Three Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Total shareholders’ common equity
$ 1,654,168
$ 1,603,323
$ 1,556,180
$ 1,508,176
$ 1,445,611
Less: Goodwill and other intangibles, net of related taxes
(483,643)
(484,623)
(485,657)
(486,749)
(487,660)
Tangible common equity
$ 1,170,525
$ 1,118,700
$ 1,070,523
$ 1,021,427
$ 957,951
APPENDIX B: Calculation of Tangible Book Value Per Share ("TBVPS")
For the Three Months Ended
($ in thousands except per share data)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Tangible common equity (Appendix A)
$ 1,170,525
$ 1,118,700
$ 1,070,523
$ 1,021,427
$ 957,951
Common shares outstanding
41,466,227
41,465,437
41,468,098
41,368,828
41,347,418
Tangible book value per common share
$ 28.23
$ 26.98
$ 25.82
$ 24.69
$ 23.17
APPENDIX C: TCE Ratio
For the Three Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Tangible common equity (Appendix A)
$ 1,170,525
$ 1,118,700
$ 1,070,523
$ 1,021,427
$ 957,951
Total assets
12,668,339
12,750,263
12,608,265
12,436,245
12,147,694
Less: Goodwill and other intangibles, net of related taxes
(483,643)
(484,623)
(485,657)
(486,749)
(487,660)
Tangible assets ("TA")
$ 12,184,696
$ 12,265,640
$ 12,122,608
$ 11,949,496
$ 11,660,034
TCE to TA ratio
9.61 %
9.12 %
8.83 %
8.55 %
8.22 %
APPENDIX D: Adjusted Net Income and Adjusted D-EPS
For the Three Months Ended
For the Twelve Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Net income (A)
$ 15,713
$ 20,363
$ 3,551
$ 111,048
$ 76,215
Impact of loss-earnback
Securities loss from loss-earnback
43,722
27,905
36,820
71,627
36,820
Less, tax impact
(10,141)
(6,472)
(8,660)
(16,613)
(8,660)
After-tax impact of loss-earnback
33,581
21,433
28,160
55,014
28,160
Adjusted net income (B)
$ 49,294
$ 41,796
$ 31,711
$ 166,062
$ 104,375
Weighted average shares outstanding - diluted (C)
41,481,132
41,481,542
41,422,973
41,453,247
41,327,216
D-EPS (A/C)
$ 0.38
$ 0.49
$ 0.09
$ 2.68
$ 1.84
Adjusted D-EPS (B/C)
$ 1.19
$ 1.01
$ 0.77
$ 4.01
$ 2.53
APPENDIX E: Calculation of Return on Average Assets ("ROA") and Adjusted ROA
For the Three Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net income (A)
$ 15,713
$ 20,363
$ 38,566
$ 36,406
$ 3,551
After-tax impact of loss-earnback
33,581
21,433
—
—
28,160
Adjusted net income (B)
$ 49,294
$ 41,796
$ 38,566
$ 36,406
$ 31,711
Average total assets (C)
$ 12,716,139
$ 12,640,016
$ 12,458,372
$ 12,226,810
$ 12,243,771
ROA (A/C)
0.49 %
0.64 %
1.24 %
1.21 %
0.12 %
Adjusted ROA (B/C)
1.54 %
1.31 %
1.24 %
1.21 %
1.03 %
APPENDIX F: Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE
For the Three Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net income (A)
$ 15,713
$ 20,363
$ 38,566
$ 36,406
$ 3,551
After-tax impact of loss-earnback
33,581
21,433
—
—
28,160
Adjusted net income (B)
$ 49,294
$ 41,796
$ 38,566
$ 36,406
$ 31,711
Average common equity (C)
$ 1,627,976
$ 1,571,104
$ 1,530,550
$ 1,467,871
$ 1,466,181
ROCE (A/C)
3.83 %
5.14 %
10.11 %
10.06 %
0.96 %
Adjusted ROCE (B/C)
12.01 %
10.55 %
10.11 %
10.06 %
8.60 %
APPENDIX G: Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE
For the Three Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net Income
$ 15,713
$ 20,363
$ 38,566
$ 36,406
$ 3,551
Intangible asset amortization, net of taxes
994
1,066
1,123
1,159
1,195
Tangible Net income (A)
16,707
21,429
39,689
37,565
4,746
After-tax impact of loss-earnback
33,581
21,433
—
—
28,160
Adjusted tangible net income (B)
$ 50,288
$ 42,862
$ 39,689
$ 37,565
$ 32,906
Average common equity
$ 1,627,976
$ 1,571,104
$ 1,530,550
$ 1,467,871
$ 1,466,181
Less: Average goodwill and other intangibles, net of related taxes
(484,313)
(485,331)
(486,393)
(487,395)
(488,624)
Average TCE (C)
$ 1,143,663
$ 1,085,773
$ 1,044,157
$ 980,476
$ 977,557
ROTCE (A/C)
5.80 %
7.83 %
15.25 %
15.54 %
1.93 %
Adjusted ROTCE (B/C)
17.45 %
15.66 %
15.25 %
15.54 %
13.39 %
APPENDIX H: Impact of Hurricane Helene
For the Three Months Ended
For the Twelve Months Ended
($ in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Impact of Hurricane Helene
Provision for (benefit from) credit losses
$ (1,600)
$ (4,000)
$ —
$ (11,100)
$ 13,000
Building repairs and maintenance
—
—
(24)
—
276
Other
—
—
(3)
—
93
Total
(1,600)
(4,000)
(27)
(11,100)
13,369
Less, tax impact
371
928
6
2,575
(3,096)
After-tax impact of Hurricane Helene
$ (1,229)
$ (3,072)
$ (21)
$ (8,525)
$ 10,273
Weighted average shares outstanding - diluted
41,481,132
41,481,542
41,422,973
41,453,247
41,327,216
Impact of Hurricane Helene per diluted share
$ 0.03
$ 0.07
$ —
$ 0.21
$ (0.25)
Supplemental information
APPENDIX I: Loan purchase discount accretion and its impact on the Company’s NIM
Included in interest income for the fourth quarter of 2025 was loan purchase accounting discount accretion of $1.3 million compared to $1.6 million for the linked quarter and $2.2 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, four basis points and six basis points, respectively, on the Company’s NIM and NIM-T/E in the fourth quarter of 2025, the linked quarter and the like quarter.
The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended
**NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS **
($ in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
Interest income - increased by accretion of loan discount on acquired loans
$ 1,298
$ 1,584
$ 2,195
Total interest income impact
1,298
1,584
2,195
Interest expense - increased by discount accretion on deposits
(62)
(77)
(145)
Interest expense - increased by discount accretion on borrowings
(161)
(197)
(195)
Total net interest expense impact
(223)
(274)
(340)
Total impact on net interest income
$ 1,075
$ 1,310
$ 1,855
SOURCE First Bancorp
