First Bancorp Reports First Quarter 2025 Results

First Bancorp, the parent company of First Bank, headquartered in Southern Pines, North Carolina, has released its unaudited financial results for the first quarter of 2025. The company reported significant improvements in key financial metrics compared to both the previous quarter and the same period last year.

Financial Highlights

For the three months ended March 31, 2025, First Bancorp reported a net income of $36.4 million, or $0.88 diluted earnings per share (D-EPS). This represents a substantial increase from the $3.6 million, or $0.08 D-EPS, reported for the fourth quarter of 2024, and the $25.3 million, or $0.61 D-EPS, reported for the first quarter of 2024.

Net interest income for the first quarter of 2025 was $92.9 million, up from $88.8 million in the previous quarter and $79.3 million in the same quarter last year. The tax equivalent net interest margin (NIM-T/E) expanded to 3.27%, compared to 3.08% in the previous quarter and 2.80% in the same quarter last year.

Noninterest expenses were controlled effectively, amounting to $57.9 million, down from $58.3 million in the previous quarter and $59.2 million in the same quarter last year.

Business and Operational Highlights

The company continued to enhance its net interest income and margin, with the total loan yield expanding to 5.52%. The yield on securities increased to 2.28%, benefiting from the securities loss-earnback transaction in the fourth quarter of 2024. Average deposits grew to $10.6 billion, with significant growth in interest-bearing checking and money market accounts.

First Bancorp maintained strong credit quality, with a nonperforming assets (NPA) to total assets ratio of 0.27% and annualized net loan charge-offs of 0.17%. The company also reported loan growth, with total loans amounting to $8.1 billion at the end of the quarter.

Strategic Initiatives and Corporate Developments

During the first quarter of 2025, First Bancorp repurchased 24,849 shares of common stock for a total cost of $1.0 million. The company also maintained excess capital, with a common equity tier 1 ratio of 14.53% and a total risk-based capital ratio of 16.79%, both well above regulatory minimums.

Management's Perspective

Richard H. Moore, CEO and Chairman of First Bancorp, highlighted the company's strong quarter and the successful execution of its succession plan, elevating Adam Currie to Chief Executive Officer of First Bank. Moore emphasized the company's focus on enhancing net interest income and margin, maintaining prudent expense management, and providing excellent service to customers.

Future Outlook

First Bancorp remains focused on maintaining credit quality and managing its balance sheet while continuing to provide excellent service to its customers. The company's solid liquidity and excess capital are expected to provide strategic flexibility in the future.

SEC Filing: FIRST BANCORP /NC/ [ FBNC ] - 8-K - Apr. 23, 2025