fbnc-20241023
false000081158900008115892024-10-232024-10-23

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________
Form 8-K
__________________
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 23, 2024
 
First Bancorp
(Exact Name of Registrant as Specified in its Charter)
     
North Carolina 0-15572 56-1421916
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
     
       300 SW Broad Street,
Southern Pines, NC  28387
(Address of Principal Executive Offices)  (Zip Code)
 
(910) 246-2500
____________________
(Registrant’s telephone number, including area code)
 
Not Applicable
___________________
(Former Name or Former Address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:

Title of each class            Trading symbol            Name of each exchange on which registered:
Common Stock, No Par Value        FBNC                The Nasdaq Global Select Market
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First Bancorp
INDEX
 
 Page
  
Item 2.02 – Results of Operations and Financial Condition3 
Item 9.01 – Financial Statements and Exhibits3 
  
Signatures3 
  
4 

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Item 2.02 - Results of Operations and Financial Condition
On October 23, 2024, First Bancorp (the “Registrant” or “Company”) issued an earnings release to announce its financial results for the three month period ended September 30, 2024. The earnings release contains forward-looking statements regarding the Company and includes cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The earnings release is furnished as Exhibit 99.1. Consequently, it is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.



Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
Exhibit 99.1 – News Release issued on October 23, 2024


Disclosures About Forward Looking Statements
This news 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 statements 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. 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 the press release by wire services, internet services or other media.




Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
       
      First Bancorp
       
  October 23, 2024  
By:		  
/s/ Richard H. Moore
      Richard H. Moore
      Chief Executive Officer

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News Release

For Immediate Release:For More Information, Contact:
October 23, 2024
Hillary Kestler
704-644-4137

First Bancorp Reports Third Quarter Results

SOUTHERN PINES, N.C. - First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported third quarter earnings today. At the end of September, Hurricane Helene greatly impacted portions of our footprint in Western North Carolina and the upstate of South Carolina. We quickly initiated a response for our associates, customers and communities in these areas, and our most important priority was and continues to be making sure our people are taken care of during this difficult time. Our team rallied together to support our customers and the communities we serve. While some of our facilities suffered damage during the storm, we have worked to restore service for our customers as quickly and fully as possible. Richard H. Moore, CEO and Chairman of the Company, stated “I am proud of our Company and associates who responded quickly and poured out their hearts and resources to assist those who suffered devastating impacts. We are here for our teammates, customers and communities and are committed to supporting them in this tremendous time of need. In anticipation of our customers' potential challenges to recover from the storm, we took an additional $13 million in provision for credit losses during the quarter.”

The Company announced net income of $18.7 million, or $0.45 per diluted common share, for the three months ended September 30, 2024 compared to $28.7 million, or $0.70 per diluted common share, for the three months ended June 30, 2024 ("linked quarter") and $29.9 million, or $0.73 per diluted common share, for the third quarter of 2023 ("like quarter"). These results include the potential impacts of Hurricane Helene of $13.4 million ($10.3 million after-taxes). For the nine months ended September 30, 2024, the Company recorded net income of $72.7 million, or $1.76 per diluted common share, compared to $74.5 million, or $1.81 per diluted common share, for the nine months ended September 30, 2023.

For the third quarter, in accounting for the potential impacts of Hurricane Helene, we realized pre-tax impacts totaling $13.4 million, comprised of $13.0 million of provision for potential credit loss exposure in our footprint hardest hit by Helene, $300 thousand of estimated property damages and an additional $100 thousand of other impacts. After considering the tax effect of these items, our net income was reduced by $10.3 million. Before the impact from these items, our adjusted net income was $29.0 million, or $0.70 per diluted share, for the third quarter and $83.0 million, or $2.01 per diluted share, for the nine months ended September 30, 2024.

Third Quarter 2024 Highlights

•Tax equivalent net interest margin ("NIM") increased 3 basis points to 2.90% for the third quarter of 2024, up from 2.87% for the linked quarter and down from 2.97% in the like quarter. For the nine months ended September 30, 2024, NIM fell to 2.86% from 3.12% 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 $0.45 per diluted share for the third quarter of 2024 and $1.76 per diluted share for the nine months ended September 30, 2024. Adjusted EPS for the third quarter of 2024
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Third Quarter 2024 Results
remained steady from the linked quarter at $0.70 per diluted share and increased to $2.01 per diluted share for the nine months ended September 30, 2024 from $1.81 per diluted share for the nine months ended September 30, 2023. See Appendix E for components of this calculation.
•Net income was $18.7 million for the third quarter of 2024 and $72.7 million for the nine months ended September 30, 2024. Adjusted net income increased to $29.0 million for the third quarter of 2024 from $28.7 million in the linked quarter and to $83.0 million for the nine months ended September 30, 2024 from $74.5 million for the nine months ended September 30, 2023. See Appendix E for components of this calculation.
•Capital grew during the quarter with a total common equity tier 1 ratio of 14.34% (estimated) and a total risk-based capital ratio of 16.44% (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 $8.0 billion at September 30, 2024, reflecting contractions of $56.3 million and $13.5 million for the quarter and year-over-year, respectively.
•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 $56.6 million and brokered deposits contracted $39.5 million leading to an increase in total deposits of $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 from 16.3% for the linked quarter. Available off-balance sheet sources totaled $2.4 billion at September 30, 2024, resulting in a total liquidity ratio of 35.2%.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2024 was $83.0 million compared to $81.1 million for the linked quarter, reflecting an increase of 2.4%. Net interest income for the third quarter of 2024 decreased 2.0% from $84.7 million for the like quarter. The increase in net interest income from the linked quarter was driven by an increase in the yields on earning assets, partially offset by an increase in the cost of interest-bearing liabilities. The decline in net interest income from the like quarter was driven by an increase in the cost of funds, partially offset by an increase in earning assets.

The Company’s tax-equivalent NIM was 2.90%, an increase of 3 basis points compared to 2.87% for the linked quarter. Increases in yields on assets and the benefit of asset mix changes and reduction in wholesale funding outpaced the increases in rates on liabilities, which resulted in the increase in net interest income and NIM as compared to the linked period. While the total cost of funds remained consistent at 1.81% during the third quarter of 2024, loan yields rose from 5.50% for the linked quarter to 5.51% for the quarter ended September 30, 2024.

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Third Quarter 2024 Results
For the Three Months Ended
YIELD INFORMATIONSeptember 30, 2024June 30, 2024September 30, 2023
Yield on loans5.51%5.50%5.32%
Yield on securities1.70%1.73%1.75%
Yield on other earning assets4.90%4.71%4.58%
Yield on total interest-earning assets4.55%4.52%4.31%
Rate on interest-bearing deposits2.59%2.54%1.95%
Rate on borrowings7.97%7.09%5.88%
Rate on total interest-bearing liabilities2.66%2.65%2.20%
Total cost of funds1.81%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 rate8.43%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 23% tax rate and is reduced by the related nondeductible portion of interest expense.

Included in interest income for the third quarter of 2024 was loan purchase accounting discount accretion of $2.0 million compared to $2.3 million for the linked quarter and $2.8 million for the like quarter, with the decreases related to the continued reduction of the loan portfolio acquired from GrandSouth Bancorporation ("GrandSouth") in January of 2023. Loan discount accretion had positive impacts of 6 basis points, 6 basis points and 11 basis points, respectively, on the Company's NIM in the third quarter of 2024, 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)
September 30, 2024June 30, 2024September 30, 2023
Interest income - increased by accretion of loan discount on acquired loans$2,003 $2,303 $2,766 
Total interest income impact2,003 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 $14.2 million and zero in provision for credit losses, respectively. The provision for the third quarter of 2024 was driven by an incremental provision of $13.0 million related to potential loan exposure from Hurricane Helene and net charge-offs of $2.1 million partially offset by generally improving updated economic forecasts, which are a key driver in the Company's CECL model, as well as a reduction in the level of unfunded commitments. Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene, the Company
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Third Quarter 2024 Results
identified borrowers with approximately $750 million of loans outstanding. Given that the storm impacted the area just prior to September 30, 2024 and recovery continues in many communities, the Company performed analyses to identify possible impacts from the storm and has reserved accordingly based upon the information available at this time. The Company applied increased reserve rates based upon severe economic factors to the approximately $750 million of loans in the path of Helene. Additionally, the Company performed an initial evaluation of the largest commercial loans in that population and applied incremental reserves to those loans that were suspected of having higher potential property damage or economic impact from the storm. The incremental provision related to the potential exposure from Hurricane Helene added 16 basis points to the ACL as of September 30, 2024.

Asset quality remained strong with annualized net loan charge-offs of 0.11% for the third quarter of 2024. Total NPAs remained at a low level at $45.9 million at September 30, 2024, or 0.38% of total assets, up slightly from 0.37% at June 30, 2024. This is compared to $38.8 million, or 0.32% of total assets, at September 30, 2023 with the increase year-over-year being attributable primarily to activity in the SBA loan portfolio.

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

ASSET QUALITY DATA
($ in thousands)
September 30, 2024June 30, 2024September 30, 2023
Nonperforming assets
Nonaccrual loans$34,125 $33,102 $26,884 
Modifications to borrowers in financial distress10,262 10,495 10,723 
Total nonperforming loans44,387 43,597 37,607 
Foreclosed real estate1,519 1,150 1,235 
Total nonperforming assets$45,906 $44,747 $38,842 
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized0.11 %0.07 %0.11 %
Nonperforming loans to total loans0.55 %0.54 %0.47 %
Nonperforming assets to total assets0.38 %0.37 %0.32 %
Allowance for credit losses to total loans1.53 %1.36 %1.35 %

Noninterest Income

Total noninterest income for the third quarter of 2024 was $13.6 million, a 7.3% decrease from the $14.6 million recorded in the linked quarter and a 10.5% decrease from the $15.2 million recorded for the like quarter. As compared to the linked and like quarters, noninterest income was lower primarily due to lower Other income, net of $1.5 million and $2.0 million, respectively.

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 $59.9 million for the third quarter of 2024 compared to $58.3 million for the linked quarter and $62.2 million for the like quarter. The $1.6 million, or 2.7%, increase in noninterest expense from the linked quarter was driven by a $2.1 million increase in Salaries incentives and commissions expense, partially driven by variable compensation. This increase in Salaries expense was partially offset by a $0.2 million reduction in Employee benefits expense and a $0.3 million reduction in Other operating expenses. Occupancy and
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Third Quarter 2024 Results
equipment related expenses for the third quarter of 2024 included $0.3 million of expenses related to the recovery from Hurricane Helene.

The primary contributor to the higher noninterest expense in the third quarter of 2023 was higher Other operating expenses of $2.4 million.

Balance Sheet

Total assets at September 30, 2024 amounted to $12.2 billion, an increase of $92.6 million, or 3.06% annualized, from the linked quarter and an increase of $175.5 million, or 1.46%, from a year earlier. The increase from the linked quarter was primarily related to higher interest-bearing cash balances, partially offset by lower loan balances. The increase from the like quarter was primarily related to higher interest-bearing cash balances, partially offset by intentional reductions in investment securities.

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


For the Three Months Ended
AVERAGE BALANCES
($ in thousands)
September 30, 2024June 30, 2024December 31, 2023September 30, 2023Change
3Q24 vs 2Q24		Change
3Q24 vs 3Q23
Total assets$12,126,613 $12,055,281 $12,026,195 $12,005,778 0.6%1.0%
Investment securities, at amortized cost2,784,863 2,883,662 3,143,756 3,180,846 (3.4)%(12.4)%
Loans8,019,730 8,070,814 8,087,450 7,939,783 (0.6)%1.0%
Earning assets11,489,227 11,462,112 11,477,007 11,405,307 0.2%0.7%
Deposits10,509,237 10,432,309 10,131,094 10,180,046 0.7%3.2%
Interest-bearing liabilities7,230,326 7,249,562 7,204,165 7,071,407 (0.3)%2.2%
Shareholders’ equity1,445,029 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 $2.4 billion at September 30, 2024. This reflects an increase of $38.4 million from the linked quarter. Due to the intentional reductions in investment securities during the second quarter of 2024, total investment securities at carrying value fell $206.6 million from September 30, 2023. During the third quarter of 2024, the Company made no purchases or sales of investment securities. Total unrealized loss on available for sale investment securities was $331.5 million at September 30, 2024, as compared to $410.1 million at June 30, 2024 and $521.7 million at September 30, 2023.

Total loans amounted to $8.0 billion at September 30, 2024, a decrease of $56.3 million, or 2.8%, from June 30, 2024 and a decrease of $13.5 million, or 0.2%, from September 30, 2023. As presented below, our total loan portfolio mix has remained relatively consistent with the exception of Construction, development & other land loans, which, as a percentage of the loan portfolio, has fallen from 13% at September 30, 2023 to 9% at September 30, 2024 and Residential 1-4 family real estate,which, as a percentage of the loan portfolio, has increased from 19% at September 30, 2023 to 22% at September 30, 2024. As of September 30, 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 September 30, 2024, with the largest loan being $26.6 million and an average loan outstanding balance 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.

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Third Quarter 2024 Results
The following table presents the balance and portfolio percentage by loan category for each period.

LOAN PORTFOLIOSeptember 30, 2024June 30, 2024September 30, 2023
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Commercial and industrial$847,284 11 %$863,366 11 %$893,910 11 %
Construction, development & other land loans760,949 9 %764,418 9 %1,008,289 13 %
Commercial real estate - owner occupied1,226,050 15 %1,250,267 16 %1,252,259 16 %
Commercial real estate - non-owner occupied2,572,901 32 %2,561,803 32 %2,509,317 31 %
Multi-family real estate460,565 6 %497,187 6 %405,161 5 %
Residential 1-4 family real estate1,737,133 22 %1,729,050 21 %1,560,140 19 %
Home equity loans/lines of credit331,072 4 %326,411 4 %331,108 4 %
Consumer loans76,787 1 %76,638 1 %67,169 1 %
Loans, gross8,012,741 100 %8,069,140 100 %8,027,353 100 %
Unamortized net deferred loan fees797 708 (316)
Total loans$8,013,538 $8,069,848 $8,027,037 

Total deposits were $10.5 billion at September 30, 2024, an increase of $17.1 million, or 0.6%, from June 30, 2024 and an increase of $269.5 million, or 2.6%, from September 30, 2023. The quarter-to-date deposit growth is comprised of organic growth of customer deposits of $56.6 million, partially offset by a contraction of $39.5 million in brokered deposits.

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 September 30, 2024. Our deposit mix has remained relatively consistent, with the exception of increased growth in money market accounts, as presented in the table below.

DEPOSIT PORTFOLIOSeptember 30, 2024June 30, 2024September 30, 2023
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Noninterest-bearing checking accounts$3,350,237 32 %$3,339,678 32 %$3,503,050 34 %
Interest-bearing checking accounts1,426,356 13 %1,400,071 13 %1,458,855 14 %
Money market accounts4,189,174 40 %4,150,429 40 %3,635,523 36 %
Savings accounts541,501 5 %558,126 5 %638,912 6 %
Other time deposits602,148 6 %601,212 6 %626,870 6 %
Time deposits >$250,000385,995 4 %389,281 4 %359,704 4 %
Total customer deposits10,495,411 100 %10,438,797 100 %10,222,914 100 %
Brokered deposits9,518 — %49,032 — %12,489 — %
Total deposits$10,504,929 100 %$10,487,829 100 %$10,235,403 100 %

As of September 30, 2024 and June 30, 2024, estimated insured deposits totaled $6.5 billion, or 61.8%, and $6.4 billion, or 61.3%, respectively, of total deposits. In addition, at September 30, 2024 and June 30, 2024, there were collateralized deposits of $730.8 million and $762.2 million, respectively, such that approximately 68.7% and 68.6%, respectively, of our total deposits were insured or collateralized at the current quarter end.




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Third Quarter 2024 Results
Capital

The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at September 30, 2024 of 16.44%, up from both the linked quarter ratio of 16.24% and like quarter ratio of 15.26%. The increase in risk-based capital ratio was driven by increased shareholders' equity with additional impact from shifts in the balance sheet with the reduction in loans being more than 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 8.47% at September 30, 2024, an increase of 57 basis points from the linked quarter and an increase of 183 basis points from September 30, 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 calculation of the TCE ratio.

CAPITAL RATIOSSeptember 30, 2024 (estimated)June 30, 2024September 30, 2023
Tangible common equity to tangible assets (non-GAAP)8.47%7.90%6.64%
Common equity tier I capital ratio14.34%13.99%12.93%
Tier I leverage ratio11.29%11.24%10.72%
Tier I risk-based capital ratio15.16%14.79%13.71%
Total risk-based capital ratio16.44%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 17.7%. In addition, the Company had approximately $2.4 billion in available lines of credit at that date resulting in a total liquidity ratio of 35.2%.

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Third Quarter 2024 Results
About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.2 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.

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.

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Third Quarter 2024 Results
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED INCOME STATEMENT
For the Three Months EndedFor the Nine Months Ended
($ in thousands, except per share data - unaudited)September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Interest income
Interest and fees on loans$111,076 $110,425 $106,514 $331,346 $308,857 
Interest on investment securities:
Taxable interest income10,779 11,291 12,936 34,798 39,415 
Tax-exempt interest income1,116 1,117 1,118 3,350 3,368 
Other, principally overnight investments8,438 5,942 3,283 17,351 10,546 
Total interest income131,409 128,775 123,851 386,845 362,186 
Interest expense
Interest on deposits46,420 44,744 32,641 130,299 78,887 
Interest on borrowings1,946 2,963 6,508 13,114 19,125 
Total interest expense48,366 47,707 39,149 143,413 98,012 
Net interest income83,043 81,068 84,702 243,432 264,174 
Provision for credit losses14,200 541 — 15,941 14,864 
Net interest income after provision for credit losses68,843 80,527 84,702 227,491 249,310 
Noninterest income
Service charges on deposit accounts4,320 4,139 4,661 12,327 13,012 
Other service charges and fees5,555 5,361 5,450 16,439 16,677 
Presold mortgage loan fees and gains on sale690 588 325 1,616 1,288 
Commissions from sales of financial products1,371 1,377 1,207 4,068 3,926 
SBA loan sale gains1,108 1,336 1,101 3,339 2,052 
Bank-owned life insurance income1,205 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 income13,579 14,648 15,177 41,076 42,948 
Noninterest expenses
Salaries incentives and commissions expense29,955 27,809 29,394 85,406 87,391 
Employee benefit expense6,495 6,703 6,539 19,467 19,097 
Total personnel expense36,450 34,512 35,933 104,873 106,488 
Occupancy and equipment expense4,856 4,850 5,003 15,294 15,042 
Merger and acquisition expenses— — — — 13,506 
Intangibles amortization expense1,614 1,669 1,953 5,042 6,147 
Other operating expenses16,930 17,260 19,335 52,119 56,809 
Total noninterest expenses59,850 58,291 62,224 177,328 197,992 
Income before income taxes22,572 36,884 37,655 91,239 94,266 
Income tax expense3,892 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 $1.82 
Diluted0.45 0.70 0.73 1.76 1.81 
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Third Quarter 2024 Results
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)September 30, 2024June 30, 2024December 31, 2023September 30, 2023
Assets
Cash and due from banks, noninterest-bearing$74,034 $90,468 $100,891 $95,257 
Due from banks, interest-bearing670,407 517,944 136,964 178,332 
Total cash and cash equivalents744,441 608,412 237,855 273,589 
Securities available for sale1,907,458 1,867,211 2,189,379 2,100,406 
Securities held to maturity521,801 523,600 533,678 535,460 
Presold mortgages and SBA loans held for sale9,888 7,247 2,667 8,060 
Loans8,013,538 8,069,848 8,150,102 8,027,037 
Allowance for credit losses on loans(122,718)(110,058)(109,853)(108,198)
Net loans7,890,820 7,959,790 8,040,249 7,918,839 
Premises and equipment, net144,868 147,110 150,957 151,981 
Accrued interest receivable14,146 14,576 17,063 17,604 
Goodwill503,216 504,830 508,257 513,629 
Other intangible assets, net32,890 35,605 37,351 34,414 
Bank-owned life insurance187,236 186,031 183,897 182,764 
Other assets196,666 206,393 213,589 241,214 
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 deposits7,154,692 7,148,151 6,651,723 6,732,353 
Total deposits10,504,929 10,487,829 10,031,599 10,235,403 
Borrowings91,694 91,513 630,158 401,843 
Accrued interest payable5,566 5,728 5,699 5,511 
Other liabilities73,716 71,393 75,106 77,520 
Total liabilities10,675,905 10,656,463 10,742,562 10,720,277 
Shareholders’ equity
Common stock 970,450 967,239 963,990 962,644 
Retained earnings761,881 752,294 716,420 695,791 
Stock in rabbi trust assumed in acquisition(1,148)(1,139)(1,385)(1,375)
Rabbi trust obligation1,148 1,139 1,385 1,375 
Accumulated other comprehensive loss(254,806)(315,191)(308,030)(400,752)
Total shareholders’ equity1,477,525 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 
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Third Quarter 2024 Results
First Bancorp and Subsidiaries
Financial Summary
TREND INFORMATION
For the Three Months Ended
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
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 $18.57 
Common shares outstanding at end of period41,340,099 41,187,943 41,156,286 41,109,987 40,085,498 
Weighted average shares outstanding - diluted41,366,743 41,262,091 41,249,636 41,207,945 41,199,058 
CAPITAL INFORMATION (estimates for current quarter)
Tangible common equity to tangible assets (5)
8.47 %7.90 %7.62 %7.56 %6.64 %
Common equity tier I capital ratio14.34 %13.99 %13.50 %13.20 %12.93 %
Total risk-based capital ratio16.44 %16.24 %15.85 %15.54 %15.26 %
(1) Calculated by dividing annualized net income by average assets.
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for components of the calculation.
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for components of the calculation and the reconciliation of average common equity to average TCE.
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation.
For the Three Months Ended
INCOME STATEMENT
($ in thousands except per share data)
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
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 income83,043 81,115 79,274 82,484 84,702 
Provision for credit losses14,200 541 1,200 2,950 — 
Noninterest income13,579 14,601 12,896 14,542 15,177 
Merger and acquisition expenses— — — 189 — 
Other noninterest expense59,850 58,291 59,187 56,197 62,224 
Income before income taxes22,572 36,884 31,783 37,690 37,655 
Income tax expense3,892 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 $0.73 
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.
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Third Quarter 2024 Results
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
For the Three Months Ended
September 30, 2024June 30, 2024September 30, 2023
($ 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 securities2,493,924 1.72 %10,779 2,591,617 1.75 %11,291 2,885,443 1.78 %12,936 
Non-taxable securities290,939 1.53 %1,116 292,045 1.54 %1,117 295,403 1.50 %1,118 
Short-term investments, primarily interest-bearing cash684,634 4.90 %8,438 507,635 4.71 %5,942 284,678 4.58 %3,283 
Total interest-earning assets11,489,227 4.55 %131,409 11,462,112 4.52 %128,775 11,405,307 4.31 %123,851 
Cash and due from banks84,060 84,674 94,963 
Premises and equipment146,448 149,643 152,415 
Other assets406,878 358,852 353,093 
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 deposits4,173,884 3.32 %34,878 4,004,175 3.26 %32,411 3,530,532 2.63 %23,397 
Savings deposits549,132 0.23 %317 570,283 0.22 %317 646,782 0.19 %307 
Other time deposits626,341 3.00 %4,726 738,290 3.30 %6,053 646,798 2.48 %4,037 
Time deposits >$250,000390,208 3.89 %3,811 371,471 3.83 %3,539 359,884 3.19 %2,893 
Total interest-bearing deposits7,133,176 2.59 %46,420 7,081,586 2.54 %44,744 6,632,599 1.95 %32,641 
Borrowings97,150 7.97 %1,946 167,976 7.09 %2,963 438,808 5.88 %6,508 
Total interest-bearing liabilities7,230,326 2.66 %48,366 7,249,562 2.65 %47,707 7,071,407 2.20 %39,149 
Noninterest-bearing checking3,376,061 3,350,723 3,547,447 
Other liabilities75,197 76,713 83,675 
Shareholders’ equity1,445,029 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 income2.88 %$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 spread1.89 %1.87 %2.11 %
Average prime rate8.43 %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 $(342,000), $(271,000)and $52,000 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(2)   Includes accretion of discount on acquired loans of $2.0 million, $2.3 million and $3.2 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(3)   Includes tax-equivalent adjustments of $722,000, $733,000 and $740,000 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively, to reflect the tax benefit that we receive related to tax-exempt securities and tax-exempt loans, which carry interest rates lower than similar taxable investments/loans 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.

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Third Quarter 2024 Results
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
For the Nine Months Ended
September 30, 2024September 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 securities2,633,093 1.77 %34,798 2,943,798 1.79 %39,415 
Non-taxable securities292,056 1.53 %3,350 296,985 1.52 %3,368 
Short-term investments, primarily interest-bearing cash490,782 4.72 %17,351 337,701 4.18 %10,546 
Total interest-earning assets11,480,411 4.50 %386,845 11,418,828 4.24 %362,186 
Cash and due from banks86,514 94,483 
Premises and equipment149,073 152,058 
Other assets381,806 369,968 
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 deposits3,961,707 3.21 %95,102 3,253,840 2.15 %52,263 
Savings deposits567,202 0.22 %942 683,741 0.14 %705 
Other time deposits694,469 3.12 %16,235 773,755 2.56 %14,807 
Time deposits >$250,000372,561 3.78 %10,548 338,797 2.73 %6,907 
Total interest-bearing deposits6,994,076 2.49 %130,299 6,527,112 1.62 %78,887 
Borrowings280,370 6.25 %13,114 453,694 5.64 %19,125 
Total interest-bearing liabilities7,274,446 2.63 %143,413 6,980,806 1.88 %98,012 
Noninterest-bearing checking3,346,669 3,665,313 
Other liabilities76,922 91,997 
Shareholders’ equity1,399,767 1,297,221 
Total liabilities and shareholders’ equity$12,097,804 $12,035,337 
Net yield on interest-earning assets and net interest income2.83 %$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 spread1.87 %2.36 %
Average prime rate8.48 %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 $(716,000) and $458,000 for the nine months ended September 30, 2024 and September 30, 2023, respectively.
(2)   Includes accretion of discount on acquired loans of $6.7 million and $10.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
(3)   Includes tax-equivalent adjustments of $2.2 million and $2.1 million for the nine months ended September 30, 2024 and September 30, 2023, respectively, to reflect the tax benefit that we receive related to tax-exempt securities and tax-exempt loans, which carry interest rates lower than similar taxable investments/loans 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.
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Third Quarter 2024 Results
Reconciliation of non-GAAP measures

APPENDIX A: Calculation of Return on TCE
For the Three Months Ended
($ in thousands)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Net Income
$18,680 $28,712 $25,272 $29,674 $29,893 
Intangible asset amortization, net of taxes1,240 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 equity5.48 %8.75 %7.78 %9.68 %9.90 %
Return on average tangible common equity8.30 %13.60 %12.13 %15.76 %15.98 %

APPENDIX B: Reconciliation of Common Equity to TCE
For the Three Months Ended
($ in thousands)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
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 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
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 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
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 ratio8.47 %7.90 %7.62 %7.56 %6.64 %

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Third Quarter 2024 Results
APPENDIX E: Adjusted EPS - diluted
For the Three Months EndedFor the Nine Months Ended
September 30, 2024September 30, 2024
Net income$18,680 $72,664 
Impact of Hurricane Helene
Provision for credit losses13,000 13,000 
Building repairs and maintenance300 300 
Other96 96 
Total13,396 13,396 
Less, tax impact(3,102)(3,102)
After-tax impact of Hurricane Helene10,294 10,294 
Adjusted net income$28,974 $82,958 
Weighted average shares outstanding - diluted41,366,743 41,294,137 
EPS - diluted$0.45 $1.76 
Adjusted EPS - diluted$0.70 $2.01 


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