First Bancorp Reports Second Quarter Results

First Bancorp, the parent company of First Bank, has released its unaudited financial results for the second quarter of 2025. The company reported a net income of $38.6 million, or $0.93 diluted earnings per share (D-EPS), marking an increase from $36.4 million, or $0.88 D-EPS, in the previous quarter and $28.7 million, or $0.70 D-EPS, in the same quarter last year.

Financial Highlights

For the second quarter of 2025, First Bancorp demonstrated strong financial performance:

• Net Interest Income: $96.7 million, up 4.1% from the previous quarter and 19.2% from the same quarter last year.
• Net Interest Margin (NIM): 3.32%, an increase from 3.25% in the previous quarter and 2.84% in the same quarter last year.
• Total Loans: $8.2 billion, reflecting a growth of $122.6 million, or 6.07% annualized, from the previous quarter.
• Noninterest Expenses: $59.0 million, a slight increase from $57.9 million in the previous quarter.
• Return on Average Assets: 1.24%, up from 1.21% in the previous quarter and 0.96% in the same quarter last year.
• Return on Average Common Equity: 10.11%, compared to 10.06% in the previous quarter and 8.38% in the same quarter last year.

Business and Operational Highlights

First Bancorp continued to enhance its net interest income and net interest margin through strategic management of deposit costs and increased loan yields. The company purchased $127.0 million of Collateralized Mortgage Obligations (CMOs) yielding 5.16% during the second quarter, contributing to a 13 basis point increase in the yield on securities.

Average core deposits grew to $10.7 billion, with significant increases in noninterest-bearing deposits and money market accounts. The company maintained a low level of wholesale funding, with average borrowings of $92.2 million for the quarter.

Strategic Initiatives and Corporate Developments

First Bancorp's Board of Directors increased the quarterly dividend to $0.23 per share, effective June 30, 2025. The company also reported improvements in its liquidity position and capital levels, with a total liquidity ratio of 36.1% and a tangible common equity to tangible assets ratio of 8.83%.

Management's Perspective

Richard H. Moore, Chairman and CEO of First Bancorp, stated, "First Bancorp continues to improve financial results in 2025 as second quarter net income was $38.6 million and diluted EPS was $0.93, both resulting from expanded net interest margin and disciplined expense management. We improved our liquidity position and increased our capital levels, while credit quality remains strong with low levels of charge-offs and nonperforming assets. We grew loans 6% annualized in the quarter and benefited from our favorable cost of funds and increased yields on our earning assets."

Future Outlook

First Bancorp remains focused on maintaining strong financial performance through disciplined expense management and strategic growth initiatives. The company aims to continue enhancing its net interest income and net interest margin while managing deposit costs and increasing loan yields.

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