FBNC 10-Q

First Bancorp /Nc/ (FBNC)

10-Q 2025-11-07 For: 2025-09-30

View Original

Added on April 09, 2026


Title of each class	Trading Symbol	Name of each exchange on which registered:
Common Stock, No Par Value	FBNC	The Nasdaq Global Select Market


			Page

Part I. Financial Information

Item 1 - Financial Statements (unaudited)
Consolidated Balance Sheets			4
Consolidated Statements of Income			5
Consolidated Statements of Comprehensive Income (Loss)			6
Consolidated Statements of Shareholders’ Equity			7
Consolidated Statements of Cash Flows			9
Notes to Consolidated Financial Statements			11
Item 2 – Management’s Discussion and Analysis of Consolidated Results of Operations and Financial Condition			34
Item 3 – Quantitative and Qualitative Disclosures About Market Risk			52
Item 4 – Controls and Procedures			54

Part II. Other Information

Item 1 – Legal Proceedings			54
Item 1A – Risk Factors			54
Item 5 - Other Information			54
Item 6 – Exhibits			55
Signatures			56


($ in thousands - unaudited)	September 30, 2025		December 31, 2024
Assets
Cash and due from banks, noninterest-bearing	$	138,369	$	78,596
Due from banks, interest-bearing	459,606		428,911
Total cash and cash equivalents	597,975		507,507

Securities available for sale (amortized cost of $2,417,434 and $2,411,117, respectively)	2,165,668		2,043,062
Securities held to maturity (fair values of $443,055 and $428,571, respectively)	514,733		519,998
Presold mortgages in process of settlement	4,032		5,942

Loans	8,419,224		8,094,676
Allowance for credit losses on loans	(120,948)		(122,572)
Net loans	8,298,276		7,972,104

Premises and equipment, net	141,441		143,459
Accrued interest receivable	35,986		36,329
Goodwill	478,750		478,750
Other intangible assets, net	18,526		22,904
Bank-owned life insurance	191,911		188,460
Other assets	302,965		229,179
Total assets	$	12,750,263	$	12,147,694

Liabilities
Deposits
Noninterest-bearing deposits	$	3,580,560	$	3,367,624
Interest-bearing deposits	7,300,610		7,162,901
Total deposits	10,881,170		10,530,525
Borrowings	92,421		91,876
Accrued interest payable	4,436		4,604
Other liabilities	168,913		75,078
Total liabilities	11,146,940		10,702,083

Commitments and contingencies

Shareholders' Equity
Preferred stock, no par value per share. Authorized: 5,000,000 shares
Issued & outstanding: none and none, respectively	—		—
Common stock, no par value per share. Authorized: 60,000,000 shares
Issued & outstanding: 41,465,437 shares and 41,347,418 shares, respectively	973,235		971,313
Retained earnings	823,483		756,327
Stock in rabbi trust assumed in acquisition	(877)		(1,148)
Rabbi trust obligation	877		1,148
Accumulated other comprehensive income (loss)	(193,395)		(282,029)
Total shareholders’ equity	1,603,323		1,445,611
Total liabilities and shareholders’ equity	$	12,750,263	$	12,147,694


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands, except per share data - unaudited)	2025		2024		2025		2024
Interest Income
Interest and fees on loans	$	118,822	$	111,076	$	342,286	$	331,346
Interest on investment securities:
Taxable interest income	17,571		10,779		49,952		34,798
Tax-exempt interest income	1,114		1,116		3,346		3,350
Other, principally overnight investments	6,693		8,438		18,017		17,351
Total interest income	144,200		131,409		413,601		386,845

Interest Expense
Interest on deposits	40,035		46,420		116,559		130,299
Interest on borrowings	1,676		1,946		4,994		13,114
Total interest expense	41,711		48,366		121,553		143,413

Net interest income	102,489		83,043		292,048		243,432
Provision for credit losses	3,442		14,200		6,770		15,941
Net interest income after provision for credit losses	99,047		68,843		285,278		227,491

Noninterest Income
Service charges on deposit accounts	4,225		4,320		11,968		12,327
Other service charges and fees	6,355		5,555		18,833		16,439
Presold mortgage loan fees and gains on sale	471		690		1,236		1,616
Commissions from sales of financial products	1,678		1,371		4,474		4,068
SBA loan sale gains	869		1,108		1,072		3,339
Bank-owned life insurance income	1,289		1,205		3,738		3,548
Securities losses, net	(27,905)		—		(27,905)		(1,161)
Other income, net	139		(670)		948		900
Total noninterest income	(12,879)		13,579		14,364		41,076

Noninterest Expense
Salaries, incentives and commissions expense	31,065		29,955		88,731		85,406
Employee benefit expense	5,751		6,495		18,033		19,467
Total personnel expense	36,816		36,450		106,764		104,873
Occupancy and equipment expense	5,145		4,884		15,532		15,835

Intangibles amortization expense	1,394		1,613		4,378		5,041
Other operating expenses	16,856		16,903		50,413		51,579
Total noninterest expenses	60,211		59,850		177,087		177,328

Income before income taxes	25,957		22,572		122,555		91,239
Income tax expense	5,594		3,892		27,220		18,575

Net income	$	20,363	$	18,680	$	95,335	$	72,664

Earnings per common share:
Basic	$	0.49	$	0.45	$	2.30	$	1.76
Diluted	0.49		0.45		2.30		1.76

Weighted average common shares outstanding:
Basic	41,237,874		40,971,520		41,179,363		40,924,822
Diluted	41,481,542		41,366,743		41,443,636		41,294,137


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands - unaudited)	2025		2024		2025		2024

Net income	$	20,363	$	18,680	$	95,335	$	72,664
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period, pretax	19,222		78,550		88,384		68,021
Tax (expense) benefit	(4,488)		(18,184)		(21,139)		(15,747)
Reclassification to realized losses	27,905		—		27,905		1,161
Tax (benefit) expense	(6,516)		—		(6,516)		(269)
Postretirement Plans:
Amortization of unrecognized net actuarial losses	—		25		—		75
Tax (expense) benefit	—		(6)		—		(17)
Other comprehensive income (loss)	36,123		60,385		88,634		53,224
Comprehensive income (loss)	$	56,486	$	79,065	$	183,969	$	125,888


($ in thousands, except per share data - unaudited)	Common Stock			Retained earnings		Stock in rabbi trust assumed in acquisition		Rabbi trust obligation		Accumulated other comprehensive income (loss)		Total shareholders’ equity
	Shares	Amount
Three Months Ended September 30, 2024
Balances, July 1, 2024	41,188	$	967,239	$	752,294	$	(1,139)	$	1,139	$	(315,191)	$	1,404,342
Net income				18,680								18,680
Cash dividends declared ($0.22 per common share)				(9,093)								(9,093)
Change in Rabbi Trust Obligation						(9)		9				—


Stock options exercised	111	2,324										2,324
Stock withheld for payment of taxes	(11)	(478)										(478)
Stock-based compensation	52	1,365										1,365
Other comprehensive income										60,385		60,385
Balances, September 30, 2024	41,340	$	970,450	$	761,881	$	(1,148)	$	1,148	$	(254,806)	$	1,477,525

Three Months Ended September 30, 2025
Balances, July 1, 2025	41,468	$	973,041	$	812,657	$	(869)	$	869	$	(229,518)	$	1,556,180
Net income				20,363								20,363
Cash dividends declared ($0.23 per common share)				(9,537)								(9,537)
Change in Rabbi Trust Obligation						(8)		8				—

Stock options exercised	6	163										163

Stock withheld for payment of taxes	(11)	(546)										(546)
Stock-based compensation	2	577										577

Other comprehensive income										36,123		36,123
Balances, September 30, 2025	41,465	$	973,235	$	823,483	$	(877)	$	877	$	(193,395)	$	1,603,323


($ and share data in thousands - unaudited)	Common Stock			Retained earnings		Stock in rabbi trust assumed in acquisition		Rabbi trust obligation		Accumulated other comprehensive income (loss)		Total shareholders’ equity
	Shares	Amount
Nine Months Ended September 30, 2024
Balances, January 1, 2024	41,110	$	963,990	$	716,420	$	(1,385)	$	1,385	$	(308,030)	$	1,372,380
Net income				72,664								72,664

Cash dividends declared ($0.66 per common share)				(27,203)								(27,203)
Change in Rabbi Trust Obligation						237		(237)				—


Stock options exercised	163	3,429										3,429
Stock withheld for payment of taxes	(15)	(604)										(604)
Stock-based compensation	82	3,635										3,635
Other comprehensive income										53,224		53,224
Balances, September 30, 2024	41,340	$	970,450	$	761,881	$	(1,148)	$	1,148	$	(254,806)	$	1,477,525

Nine Months Ended September 30, 2025
Balances, January 1, 2025	41,347	$	971,313	$	756,327	$	(1,148)	$	1,148	$	(282,029)	$	1,445,611
Net income				95,335								95,335
Cash dividends declared ($0.68 per common share)				(28,179)								(28,179)
Change in Rabbi Trust Obligation						271		(271)				—

Stock repurchases	(25)	(992)										(992)
Stock options exercised	79	1,401										1,401
Stock withheld for payment of taxes	(33)	(1,385)										(1,385)
Stock-based compensation	97	2,898										2,898
Other comprehensive income										88,634		88,634
Balances, September 30, 2025	41,465	$	973,235	$	823,483	$	(877)	$	877	$	(193,395)	$	1,603,323


	Nine Months Ended September 30,
($ in thousands-unaudited)	2025		2024
Cash Flows From Operating Activities
Net income	$	95,335	$	72,664
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses	6,770		15,941
Net security premium amortization	4,253		6,700
Deferred income taxes, net	6,838		(5,814)
Loan discount accretion	(5,850)		(8,060)
Deposit and debt discount accretion, net	864		1,253
Foreclosed property losses (gains), net	81		(214)
Securities losses, net	27,905		1,161
Other (gains) losses, net	(916)		(504)
Bank-owned life insurance income	(3,738)		(3,548)
Net amortization of deferred loan costs/(fees)	269		(975)
Depreciation of premises and equipment	5,106		5,884
Amortization of operating lease right-of-use assets	984		1,420
Repayments of lease obligations	(931)		(1,360)
Stock-based compensation expense	2,898		3,458
Amortization of intangible assets	4,378		5,041
Amortization and impairment of SBA servicing assets	897		1,248
Gains on sale of loans	(2,308)		(4,955)
Origination of presold mortgage loans and SBA loans held for sale	(68,796)		(120,281)
Proceeds from sales of presold mortgage loans and SBA loans	75,953		131,430
(Increase) decrease in accrued interest receivable	343		4,461
(Increase) decrease in other assets	(13,227)		(2,527)
(Decrease) increase in accrued interest payable	(168)		(133)
Increase (decrease) in other liabilities	11,035		3,762
Net cash provided by (used in) operating activities	147,975		106,052
Cash Flows From Investing Activities
Purchases of securities available for sale	(353,673)		—

Proceeds from maturities, calls and principal repayments of securities available for sale	152,109		204,848
Proceeds from maturities, calls and principal repayments of securities held to maturity	1,982		7,567
Proceeds from sales of securities available for sale	166,372		138,182
Proceeds from sale of VISA B shares	—		4,522
Purchases of Federal Reserve and FHLB stock	(398)		(39,553)
Redemptions of Federal Reserve and FHLB stock	—		52,810

Proceeds from bank owned life insurance death benefits	287		209
Purchases of other investments	(17,072)		(1,858)
Net (increase) decrease in loans	(330,748)		125,241
Proceeds from sales of foreclosed properties	4,241		687
Purchases of premises and equipment	(3,073)		(2,159)
Proceeds from sales of premises and equipment	863		754


Net cash (used in) provided by investing activities	(379,110)		491,250
Cash Flows From Financing Activities
Net increase (decrease) in deposits	350,363		472,649
Proceeds from the issuance of FHLB and FRB borrowings	2,000		986,000
Repayment of FHLB and FRB borrowings	(2,037)		(1,515,036)
Repayment of subordinated debentures	—		(10,000)
Cash dividends paid – common stock	(27,747)		(27,154)
Repurchases of common stock	(992)		—
Proceeds from stock option exercises	1,401		3,429
Payment of taxes related to stock withheld	(1,385)		(604)
Net cash provided by (used in) financing activities	321,603		(90,716)
Increase (decrease) in cash and cash equivalents	90,468		506,586
Cash and cash equivalents, beginning of period	507,507		237,855
Cash and cash equivalents, end of period	$	597,975	$	744,441


($ in thousands)	September 30, 2025								December 31, 2024
	Amortized Cost		Fair Value		Unrealized				Amortized Cost		Fair Value		Unrealized
					Gains		(Losses)						Gains		(Losses)
Securities available for sale:
U.S. Treasuries	$	144,944	$	147,760	$	2,816	$	—	$	121,051	$	120,581	$	—	$	(470)
Government-sponsored enterprise securities	1,966		1,738		—		(228)		11,961		9,614		—		(2,347)
Mortgage-backed securities	2,255,334		2,000,847		3,002		(257,489)		2,261,924		1,897,175		60		(364,809)
Corporate bonds	15,190		15,323		172		(39)		16,181		15,692		—		(489)
Total available for sale	$	2,417,434	$	2,165,668	$	5,990	$	(257,756)	$	2,411,117	$	2,043,062	$	60	$	(368,115)

Securities held to maturity:
Mortgage-backed securities	$	7,291	$	7,051	$	—	$	(240)	$	9,198	$	8,739	$	—	$	(459)
State and local governments	507,442		436,004		30		(71,468)		510,800		419,832		1		(90,969)
Total held to maturity	$	514,733	$	443,055	$	30	$	(71,708)	$	519,998	$	428,571	$	1	$	(91,428)


	Securities in an Unrealized Loss Position for Less than Twelve Months				Securities in an Unrealized Loss Position for More than Twelve Months				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government-sponsored enterprise securities	$	—	$	—	$	1,738	$	228	$	1,738	$	228
Mortgage-backed securities	243,236		440		1,365,028		257,289		1,608,264		257,729
Corporate bonds	3,711		39		—		—		3,711		39
State and local governments	512		8		430,580		71,460		431,092		71,468
Total unrealized loss position	$	247,459	$	487	$	1,797,346	$	328,977	$	2,044,805	$	329,464


	Securities Available for Sale				Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due after one year but within five years	$	129,260	$	131,491	$	6,015	$	5,939
Due after five years but within ten years	32,840		33,330		231,205		201,931
Due after ten years	—		—		270,222		228,134
Mortgage-backed securities	2,255,334		2,000,847		7,291		7,051
Total securities	$	2,417,434	$	2,165,668	$	514,733	$	443,055


($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans
Commercial and industrial	$	—	$	10,016	$	10,016
Construction, development & other land loans	—		148		148
Commercial real estate - owner occupied	698		11,995		12,693
Commercial real estate - non owner occupied	4,393		776		5,169

Residential 1-4 family real estate	—		7,077		7,077
Home equity loans/lines of credit	—		1,983		1,983
Consumer loans	—		203		203
Total	$	5,091	$	32,198	$	37,289


($ in thousands)	Accruing Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Nonaccrual Loans		Total Loans Receivable
Commercial and industrial	$	892,540	$	1,143	$	527	$	10,016	$	904,226
Construction, development & other land loans	687,901		253		—		148		688,302
Commercial real estate - owner occupied	1,322,791		694		1,167		12,693		1,337,345
Commercial real estate - non owner occupied	2,767,841		339		—		5,169		2,773,349
Multi-family real estate	535,681		—		—		—		535,681
Residential 1-4 family real estate	1,724,168		7,981		4,658		7,077		1,743,884
Home equity loans/lines of credit	362,306		1,199		—		1,983		365,488
Consumer loans	69,443		285		100		203		70,031
Total	$	8,362,671	$	11,894	$	6,452	$	37,289	8,418,306
Unamortized net deferred loan costs/(fees)									918
Total loans									$	8,419,224


($ in thousands)	Accruing Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Nonaccrual Loans		Total Loans Receivable
Commercial and industrial	$	906,903	$	2,442	$	541	$	9,804	$	919,690
Construction, development & other land loans	647,077		—		—		90		647,167
Commercial real estate - owner occupied	1,236,396		2,073		976		9,367		1,248,812
Commercial real estate - non owner occupied	2,614,843		9,678		146		887		2,625,554
Multi-family real estate	506,407		—		—		—		506,407
Residential 1-4 family real estate	1,699,800		12,973		7,062		9,487		1,729,322
Home equity loans/lines of credit	342,551		1,118		419		1,795		345,883
Consumer loans	69,775		317		212		349		70,653
Total	$	8,023,752	$	28,601	$	9,356	$	31,779	8,093,488
Unamortized net deferred loan costs/(fees)									1,188
Total loans									$	8,094,676


($ in thousands)	Commercial Property		Total Collateral-Dependent Loans


Commercial real estate - owner occupied	$	4,263	$	4,263
Commercial real estate - non owner occupied	4,393		4,393




Total	$	8,656	$	8,656


($ in thousands)	September 30, 2025		December 31, 2024
Guaranteed portions of SBA loans included in table above	$	54,690	$	34,095
Unguaranteed portions of SBA loans included in table above	103,083		101,356
Total SBA loans included in the table above	$	157,773	$	135,451

Sold portions of SBA loans with servicing retained - not included in tables above	$	300,537	$	330,482


	Term Loans by Year of Origination
($ in thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Total
As of September 30, 2025
Commercial and industrial
Pass	$	143,026	$	92,703	$	49,653	$	97,711	$	63,505	$	115,494	$	327,985	$	890,077
Special Mention	88		573		103		33		43		372		1,596		2,808
Classified	742		209		982		3,243		662		4,137		1,366		11,341
Total commercial and industrial	143,856		93,485		50,738		100,987		64,210		120,003		330,947		904,226
Gross charge-offs, YTD	35		399		780		903		27		590		3,255		5,989
Construction, development & other land loans
Pass	347,468		159,590		80,951		26,988		20,004		12,507		39,388		686,896
Special Mention	—		—		580		53		—		—		—		633
Classified	—		360		72		71		4		266		—		773
Total construction, development & other land loans	347,468		159,950		81,603		27,112		20,008		12,773		39,388		688,302
Gross charge-offs, YTD	—		—		—		—		—		—		—		—
Commercial real estate - owner occupied
Pass	221,605		200,134		193,271		224,333		227,539		210,127		23,802		1,300,811
Special Mention	2,266		3,033		1,825		3,075		225		6,366		1,683		18,473
Classified	134		1,432		586		2,324		614		12,971		—		18,061
Total commercial real estate - owner occupied	224,005		204,599		195,682		229,732		228,378		229,464		25,485		1,337,345
Gross charge-offs, YTD	—		420		—		17		—		903		—		1,340
Commercial real estate - non owner occupied
Pass	515,220		405,117		394,638		613,322		562,686		244,095		28,970		2,764,048
Special Mention	49		1,228		—		—		4		1,355		—		2,636
Classified	81		313		—		547		—		5,724		—		6,665
Total commercial real estate - non owner occupied	515,350		406,658		394,638		613,869		562,690		251,174		28,970		2,773,349
Gross charge-offs, YTD	—		905		—		33		—		—		—		938
Multi-family real estate
Pass	91,920		59,021		64,491		110,234		151,679		42,409		15,793		535,547
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		134		—		—		—		—		134
Total multi-family real estate	91,920		59,021		64,625		110,234		151,679		42,409		15,793		535,681
Gross charge-offs, YTD	—		—		—		—		—		—		—		—
Residential 1-4 family real estate
Pass	134,800		226,892		309,247		381,262		272,054		401,953		213		1,726,421
Special Mention	154		20		—		—		38		642		—		854
Classified	439		4,339		423		2,208		1,081		8,119		—		16,609
Total residential 1-4 family real estate	135,393		231,251		309,670		383,470		273,173		410,714		213		1,743,884
Gross charge-offs, YTD	—		—		—		—		—		127		—		127


	Term Loans by Year of Origination
($ in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
As of December 31, 2024
Commercial and industrial
Pass	$	114,786	$	81,851	$	120,769	$	82,810	$	59,218	$	70,986	$	373,850	$	904,270
Special Mention	1,076		26		190		36		259		804		1,825		4,216
Classified	266		2,496		3,254		713		1,199		2,634		642		11,204
Total commercial and industrial	116,128		84,373		124,213		83,559		60,676		74,424		376,317		919,690
Gross charge-offs, YTD	306		669		849		318		137		929		4,070		7,278
Construction, development & other land loans
Pass	355,734		124,323		60,305		29,823		12,727		5,276		57,177		645,365
Special Mention	—		605		77		8		—		2		11		703
Classified	227		449		80		—		67		276		—		1,099
Total construction, development & other land loans	355,961		125,377		60,462		29,831		12,794		5,554		57,188		647,167
Gross charge-offs, YTD	—		79		—		—		—		—		—		79
Commercial real estate - owner occupied
Pass	194,193		222,718		261,634		252,929		153,634		109,559		15,772		1,210,439
Special Mention	9,927		1,869		2,731		184		147		7,007		—		21,865
Classified	4,506		235		2,085		1,294		1,188		7,200		—		16,508
Total commercial real estate - owner occupied	208,626		224,822		266,450		254,407		154,969		123,766		15,772		1,248,812
Gross charge-offs, YTD	—		25		—		19		114		65		—		223
Commercial real estate - non owner occupied
Pass	482,433		434,713		668,168		602,028		252,260		132,316		29,922		2,601,840
Special Mention	1,648		265		189		11		331		5,721		54		8,219
Classified	12,725		429		566		—		88		1,687		—		15,495
Total commercial real estate - non owner occupied	496,806		435,407		668,923		602,039		252,679		139,724		29,976		2,625,554
Gross charge-offs, YTD	—		—		—		—		304		158		—		462
Multi-family real estate
Pass	87,803		65,508		114,627		159,038		40,940		9,926		27,630		505,472
Special Mention	—		—		—		—		—		793		—		793
Classified	—		142		—		—		—		—		—		142
Total multi-family real estate	87,803		65,650		114,627		159,038		40,940		10,719		27,630		506,407
Gross charge-offs, YTD	—		—		—		—		—		—		—		—
Residential 1-4 family real estate
Pass	216,725		347,472		404,809		278,197		166,013		296,870		2,768		1,712,854
Special Mention	74		—		10		95		61		740		—		980
Classified	3,968		227		2,558		544		1,558		6,633		—		15,488
Total residential 1-4 family real estate	220,767		347,699		407,377		278,836		167,632		304,243		2,768		1,729,322
Gross charge-offs, YTD	—		—		—		—		—		18		—		18


	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2025		2024		2025		2024
Beginning balance	$	9,926	$	9,860	$	9,066	$	11,369
Charge-offs	—				—		—
Recoveries	—				—		—
Provision for (reversal of) unfunded commitments	80		(583)		940		(2,092)
Ending balance	$	10,006	$	9,277	$	10,006	$	9,277


($ in thousands)	Payment Delay		Term Extension		Combination - Term Extension and Payment Delay		Combination - Interest Rate Reduction and Term Extension		Total		Percent of Total Class of Loans
As of and for the three months ended September 30, 2025
Commercial and industrial	$	66	$	608	$	—	$	40	$	714	0.08	%





Home equity loans/lines of credit	—		327		—		—		327		0.09	%

Total	$	66	$	935	$	—	$	40	$	1,041	0.01	%

As of and for the nine months ended September 30, 2025
Commercial and industrial	$	120	$	712	$	—	$	40	$	872	0.10	%
Construction, development & other land loans	—		309		—		—		309		0.04	%
Commercial real estate - owner occupied	734		134		—		—		868		0.06	%
Commercial real estate - non owner occupied	45		—		4,476		—		4,521		0.16	%

Residential 1-4 family real estate	—		103		118		—		221		0.01	%
Home equity loans/lines of credit	—		693		—		—		693		0.19	%

Total	$	899	$	1,951	$	4,594	$	40	$	7,484	0.09	%


		Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
	Weighted Average Interest Rate Reduction	Weighted Average Payment Delay (in months)	Weighted Average Term Extension (in months)
For the three months ended September 30, 2025
Commercial and industrial	2.24%	6	19





Home equity loans/lines of credit	—%	0	10


For the nine months ended September 30, 2025
Commercial and industrial	2.24%	6	30
Construction, development & other land loans	—%	0	6
Commercial real estate - owner occupied	—%	6	91
Commercial real estate - non owner occupied	—%	7	7

Residential 1-4 family real estate	—%	4	30
Home equity loans/lines of credit	—%	0	38


	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Commercial and industrial	$	701	$	—	$	54	$	208
Construction, development & other land loans	309		—		—		—
Commercial real estate - owner occupied	591		399		—		—
Commercial real estate - non owner occupied	130		—		—		4,393

Residential 1-4 family real estate	221		—		—		—
Home equity loans/lines of credit	693		—		—		—

	$	2,645	$	399	$	54	$	4,601


($ in thousands)	Balance
Commercial and industrial	$	15,153
Construction, development & other land loans	13,025
Commercial real estate - owner occupied	93,322
Commercial real estate - non owner occupied	252,072
Multi-family real estate	24,519
Residential 1-4 family real estate	242,214
Home equity loans/lines of credit	33,257

Total	$	673,562


($ in thousands)
October 1, 2025 to December 31, 2025	$	450
2026	1,616
2027	1,338
2028	1,251
2029	1,196
Thereafter	15,725
Total undiscounted lease payments	21,576
Less effect of discounting	(7,014)
Present value of estimated lease payments (lease liability)	$	14,562


($ in thousands) Description of Financial Instruments	Fair Value at September 30, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
U.S. Treasury	$	147,760	$	—	$	147,760	$	—
Government-sponsored enterprise securities	1,738		—		1,738		—
Mortgage-backed securities	2,000,847		—		2,000,172		675
Corporate bonds	15,323		—		14,323		1,000
Total available for sale securities	$	2,165,668	$	—	$	2,163,993	$	1,675

Derivative financial assets	$	3,993	$	—	$	3,993	$	—

Presold mortgages in process of settlement	$	4,032	$	—	$	4,032	$	—

Derivative financial liabilities	$	4,034	$	—	$	4,034	$	—

Nonrecurring
Individually evaluated loans	$	8,656	$	—	$	—	$	8,656
Foreclosed real estate	44		—		—		44


($ in thousands) Description of Financial Instruments	Fair Value at December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
US Treasury securities	$	120,581	$	—	$	120,581	$	—
Government-sponsored enterprise securities	9,614		—		9,614		—
Mortgage-backed securities	1,897,175		—		1,896,469		706
Corporate bonds	15,692		—		13,942		1,750
Total available for sale securities	$	2,043,062	$	—	$	2,040,606	$	2,456

Derivative financial assets	$	301	$	—	$	301	$	—

Presold mortgages in process of settlement	$	5,942	$	—	$	5,942	$	—

Derivative financial liabilities	$	302	$	—	$	302	$	—

Nonrecurring
Individually evaluated loans	$	879	$	—	$	—	$	879


	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2025	236,951	$	36.43
Granted during the period	89,798	41.84
Vested during the period	(101,184)	37.81
Forfeited or expired during the period	(5,324)	41.40
Nonvested at September 30, 2025	220,241	$	37.88


	For the Three Months Ended September 30, 2025
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)		Total
Beginning balance	$	(229,603)	$	85	$	(229,518)
Other comprehensive income before reclassifications	14,734		—		14,734
Amounts reclassified from accumulated other comprehensive income	21,389		—		21,389

Net current period other comprehensive income	36,123		—		36,123

Ending balance	$	(193,480)	$	85	$	(193,395)

	For the Three Months Ended September 30, 2024
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)		Total
Beginning balance	$	(315,153)	$	(38)	$	(315,191)
Other comprehensive income before reclassifications	60,366		—		60,366
Amounts reclassified from accumulated other comprehensive income	—		19		19

Net current period other comprehensive income	60,366		19		60,385

Ending balance	$	(254,787)	$	(19)	$	(254,806)


	For the Three Months Ended				For the Nine Months Ended
($ in thousands)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Noninterest Income in-scope of ASC 606:
Service charges on deposit accounts	$	4,225	$	4,320	$	11,968	$	12,327
Other service charges and fees:
Bankcard interchange income, net	2,308		2,372		7,223		7,045
Other service charges and fees	1,764		1,710		5,762		5,208
Commissions from sales of financial products	1,678		1,371		4,474		4,068
Portion of other income in-scope of ASC 606	—		—		—		312
Noninterest income (in-scope of ASC 606)	9,975		9,773		29,427		28,960
Noninterest income (out-of-scope of ASC 606)	(22,854)		3,806		(15,063)		12,116
Total noninterest income	$	(12,879)	$	13,579	$	14,364	$	41,076


Average Balances and Net Interest Income Analysis
	Three Months Ended September 30,
	2025						2024
($ in thousands)	Average Volume		Interest Earned or Paid		Average Rate		Average Volume		Interest Earned or Paid		Average Rate
Assets
Loans (1) (2)	$	8,297,643	$	118,822	5.69	%	$	8,019,730	$	111,076	5.51	%
Taxable securities	2,637,711		17,571		2.66	%	2,493,924		10,779		1.73	%
Non-taxable securities	286,750		1,114		1.56	%	290,939		1,116		1.53	%
Short-term investments, primarily interest-bearing cash	571,922		6,693		4.64	%	684,634		8,438		4.90	%
Total interest-earning assets	11,794,026		144,200		4.86	%	11,489,227		131,409		4.56	%

Cash and due from banks	149,771						84,060
Premises and equipment	141,858						146,448
Other assets	554,361						406,878
Total assets	$	12,640,016					$	12,126,613

Liabilities
Interest-bearing checking	$	1,403,683	$	2,420	0.68	%	$	1,393,611	$	2,688	0.77	%
Money market deposits	4,510,662		31,674		2.79	%	4,173,884		34,878		3.32	%
Savings deposits	535,464		267		0.20	%	552,721		315		0.23	%
Other time deposits	514,143		3,029		2.34	%	622,752		4,728		3.02	%
Time deposits >$250,000	328,207		2,645		3.20	%	390,208		3,811		3.89	%
Total interest-bearing deposits	7,292,159		40,035		2.18	%	7,133,176		46,420		2.59	%
Short-term borrowings	785		1		0.49	%	6,364		80		5.01	%
Long-term borrowings	91,564		1,675		7.26	%	90,786		1,866		8.17	%
Total interest-bearing liabilities	7,384,508		41,711		2.24	%	7,230,326		48,366		2.66	%

Noninterest-bearing checking	3,550,499						3,376,061
Other liabilities	133,905						75,197
Shareholders’ equity	1,571,104						1,445,029
Total liabilities and shareholders’ equity	$	12,640,016					$	12,126,613

Net yield on interest-earning assets and net interest income			$	102,489	3.46	%			$	83,043	2.88	%
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			$	102,828	3.47	%			$	83,765	2.91	%

Interest rate spread					2.62	%					1.90	%

Average prime rate					7.46	%					8.43	%


	For the Nine Months Ended September 30,
($ in thousands)	2025			2024
Net interest income, as reported	$	292,048		$	243,432
Tax-equivalent adjustment	987			2,186
Net interest income, tax-equivalent	$	293,035		$	245,618
Net interest margin, as reported	3.34		%	2.83		%
Net interest margin, tax-equivalent	3.35		%	2.87		%


($ in thousands)	Nine Months Ended September 30, 2025			Twelve Months Ended December 31, 2024			Nine Months Ended September 30, 2024
Loans outstanding at end of period	$	8,419,224		$	8,094,676		$	8,013,538
Average amount of loans outstanding	8,198,263			8,046,681			8,064,480
Allowance for credit losses, at period end	120,948			122,572			122,718

Total charge-offs	(9,524)			(9,587)			(7,460)
Total recoveries	2,070			3,555			2,292
Net charge-offs	$	(7,454)		$	(6,032)		$	(5,168)

Ratios:
Net charge-offs as a percent of average loans (annualized)	0.12		%	0.07		%	0.09		%
Allowance for credit losses as a percent of loans at end of period	1.44		%	1.51		%	1.53		%


	September 30, 2025		December 31, 2024		Minimum required
Risk-based capital ratios:
Common equity Tier 1 ratio	14.35	%	14.35	%	7.00	%

Tier I capital ratio	15.14	%	15.17	%	8.50	%

Total risk-based capital ratio	16.58	%	16.63	%	10.50	%

Leverage capital ratio:
Tier 1 capital to quarterly average total assets	11.18	%	11.15	%	4.00	%


3.a			Articles of Incorporation of the Company and amendments thereto were filed as Exhibits 3.a.i through 3.a.v to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2002, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibits 3.1 and 3.2 to the Company’s Current Report on Form 8-K filed on January 13, 2009, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1.b to the Company’s Registration Statement on Form S-3D filed on June 29, 2010 (Commission File No. 333-167856), and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 6, 2011, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 26, 2012, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed June 14, 2022, and are incorporated herein by reference.
3.b			Amended and Restated Bylaws of the Company were filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on February 9, 2018, and are incorporated herein by reference.
4.a			Form of Common Stock Certificate was filed as Exhibit 4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1999, and is incorporated herein by reference.
31.1			Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2			Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1			Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101			The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.


			FIRST BANCORP

November 7, 2025			BY:/s/ Richard H. Moore
			Richard H. Moore Chief Executive Officer (Principal Executive Officer), and Director


November 7, 2025			BY:/s/ Elizabeth B. Bostian
			Elizabeth B. Bostian Executive Vice President and Chief Financial Officer


November 7, 2025			BY:/s/ T. Brent Hicks
			T. Brent Hicks Executive Vice President and Chief Accounting Officer