First Bancorp 8K Reports Third Quarter Results | FBNC 23 Oct 24

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


			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.


			Third Quarter 2024 Results


	For the Three Months Ended
YIELD INFORMATION	September 30, 2024	June 30, 2024	September 30, 2023

Yield on loans	5.51%	5.50%	5.32%
Yield on securities	1.70%	1.73%	1.75%
Yield on other earning assets	4.90%	4.71%	4.58%
Yield on total interest-earning assets	4.55%	4.52%	4.31%

Rate on interest-bearing deposits	2.59%	2.54%	1.95%
Rate on borrowings	7.97%	7.09%	5.88%
Rate on total interest-bearing liabilities	2.66%	2.65%	2.20%
Total cost of funds	1.81%	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 rate	8.43%	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, 2024		June 30, 2024		September 30, 2023

Interest income - increased by accretion of loan discount on acquired loans	$	2,003	$	2,303	$	2,766

Total interest income impact	2,003		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


			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, 2024			June 30, 2024			September 30, 2023

Nonperforming assets
Nonaccrual loans	$	34,125		$	33,102		$	26,884
Modifications to borrowers in financial distress	10,262			10,495			10,723
Total nonperforming loans	44,387			43,597			37,607
Foreclosed real estate	1,519			1,150			1,235
Total nonperforming assets	$	45,906		$	44,747		$	38,842

Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized	0.11		%	0.07		%	0.11		%
Nonperforming loans to total loans	0.55		%	0.54		%	0.47		%
Nonperforming assets to total assets	0.38		%	0.37		%	0.32		%
Allowance for credit losses to total loans	1.53		%	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


			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, 2024		June 30, 2024		December 31, 2023		September 30, 2023		Change 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 cost	2,784,863		2,883,662		3,143,756		3,180,846		(3.4)%	(12.4)%
Loans	8,019,730		8,070,814		8,087,450		7,939,783		(0.6)%	1.0%
Earning assets	11,489,227		11,462,112		11,477,007		11,405,307		0.2%	0.7%
Deposits	10,509,237		10,432,309		10,131,094		10,180,046		0.7%	3.2%
Interest-bearing liabilities	7,230,326		7,249,562		7,204,165		7,071,407		(0.3)%	2.2%
Shareholders’ equity	1,445,029		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.


			Third Quarter 2024 Results

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


LOAN PORTFOLIO	September 30, 2024				June 30, 2024				September 30, 2023
($ in thousands)	Amount		Percentage		Amount		Percentage		Amount		Percentage

Commercial and industrial	$	847,284	11	%	$	863,366	11	%	$	893,910	11	%
Construction, development & other land loans	760,949		9	%	764,418		9	%	1,008,289		13	%
Commercial real estate - owner occupied	1,226,050		15	%	1,250,267		16	%	1,252,259		16	%
Commercial real estate - non-owner occupied	2,572,901		32	%	2,561,803		32	%	2,509,317		31	%
Multi-family real estate	460,565		6	%	497,187		6	%	405,161		5	%
Residential 1-4 family real estate	1,737,133		22	%	1,729,050		21	%	1,560,140		19	%
Home equity loans/lines of credit	331,072		4	%	326,411		4	%	331,108		4	%
Consumer loans	76,787		1	%	76,638		1	%	67,169		1	%
Loans, gross	8,012,741		100	%	8,069,140		100	%	8,027,353		100	%
Unamortized net deferred loan fees	797				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 PORTFOLIO	September 30, 2024				June 30, 2024				September 30, 2023
($ in thousands)	Amount		Percentage		Amount		Percentage		Amount		Percentage

Noninterest-bearing checking accounts	$	3,350,237	32	%	$	3,339,678	32	%	$	3,503,050	34	%
Interest-bearing checking accounts	1,426,356		13	%	1,400,071		13	%	1,458,855		14	%
Money market accounts	4,189,174		40	%	4,150,429		40	%	3,635,523		36	%
Savings accounts	541,501		5	%	558,126		5	%	638,912		6	%
Other time deposits	602,148		6	%	601,212		6	%	626,870		6	%
Time deposits >$250,000	385,995		4	%	389,281		4	%	359,704		4	%
Total customer deposits	10,495,411		100	%	10,438,797		100	%	10,222,914		100	%
Brokered deposits	9,518		—	%	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.


			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 RATIOS	September 30, 2024 (estimated)	June 30, 2024	September 30, 2023

Tangible common equity to tangible assets (non-GAAP)	8.47%	7.90%	6.64%
Common equity tier I capital ratio	14.34%	13.99%	12.93%
Tier I leverage ratio	11.29%	11.24%	10.72%
Tier I risk-based capital ratio	15.16%	14.79%	13.71%
Total risk-based capital ratio	16.44%	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%.


			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.


			Third Quarter 2024 Results


First Bancorp and Subsidiaries Financial Summary


CONSOLIDATED INCOME STATEMENT
	For the Three Months Ended						For the Nine Months Ended
($ in thousands, except per share data - unaudited)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 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 income	10,779		11,291		12,936		34,798		39,415
Tax-exempt interest income	1,116		1,117		1,118		3,350		3,368
Other, principally overnight investments	8,438		5,942		3,283		17,351		10,546
Total interest income	131,409		128,775		123,851		386,845		362,186
Interest expense
Interest on deposits	46,420		44,744		32,641		130,299		78,887
Interest on borrowings	1,946		2,963		6,508		13,114		19,125
Total interest expense	48,366		47,707		39,149		143,413		98,012
Net interest income	83,043		81,068		84,702		243,432		264,174
Provision for credit losses	14,200		541		—		15,941		14,864
Net interest income after provision for credit losses	68,843		80,527		84,702		227,491		249,310
Noninterest income
Service charges on deposit accounts	4,320		4,139		4,661		12,327		13,012
Other service charges and fees	5,555		5,361		5,450		16,439		16,677
Presold mortgage loan fees and gains on sale	690		588		325		1,616		1,288
Commissions from sales of financial products	1,371		1,377		1,207		4,068		3,926
SBA loan sale gains	1,108		1,336		1,101		3,339		2,052
Bank-owned life insurance income	1,205		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 income	13,579		14,648		15,177		41,076		42,948
Noninterest expenses
Salaries incentives and commissions expense	29,955		27,809		29,394		85,406		87,391
Employee benefit expense	6,495		6,703		6,539		19,467		19,097
Total personnel expense	36,450		34,512		35,933		104,873		106,488
Occupancy and equipment expense	4,856		4,850		5,003		15,294		15,042
Merger and acquisition expenses	—		—		—		—		13,506
Intangibles amortization expense	1,614		1,669		1,953		5,042		6,147
Other operating expenses	16,930		17,260		19,335		52,119		56,809
Total noninterest expenses	59,850		58,291		62,224		177,328		197,992
Income before income taxes	22,572		36,884		37,655		91,239		94,266
Income tax expense	3,892		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
Diluted	0.45		0.70		0.73		1.76		1.81


			Third Quarter 2024 Results


First Bancorp and Subsidiaries Financial Summary


CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)	September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023
Assets
Cash and due from banks, noninterest-bearing	$	74,034	$	90,468	$	100,891	$	95,257
Due from banks, interest-bearing	670,407		517,944		136,964		178,332
Total cash and cash equivalents	744,441		608,412		237,855		273,589

Securities available for sale	1,907,458		1,867,211		2,189,379		2,100,406
Securities held to maturity	521,801		523,600		533,678		535,460
Presold mortgages and SBA loans held for sale	9,888		7,247		2,667		8,060

Loans	8,013,538		8,069,848		8,150,102		8,027,037
Allowance for credit losses on loans	(122,718)		(110,058)		(109,853)		(108,198)
Net loans	7,890,820		7,959,790		8,040,249		7,918,839

Premises and equipment, net	144,868		147,110		150,957		151,981
Accrued interest receivable	14,146		14,576		17,063		17,604
Goodwill	503,216		504,830		508,257		513,629
Other intangible assets, net	32,890		35,605		37,351		34,414
Bank-owned life insurance	187,236		186,031		183,897		182,764
Other assets	196,666		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 deposits	7,154,692		7,148,151		6,651,723		6,732,353
Total deposits	10,504,929		10,487,829		10,031,599		10,235,403

Borrowings	91,694		91,513		630,158		401,843
Accrued interest payable	5,566		5,728		5,699		5,511
Other liabilities	73,716		71,393		75,106		77,520
Total liabilities	10,675,905		10,656,463		10,742,562		10,720,277

Shareholders’ equity
Common stock	970,450		967,239		963,990		962,644
Retained earnings	761,881		752,294		716,420		695,791
Stock in rabbi trust assumed in acquisition	(1,148)		(1,139)		(1,385)		(1,375)
Rabbi trust obligation	1,148		1,139		1,385		1,375
Accumulated other comprehensive loss	(254,806)		(315,191)		(308,030)		(400,752)
Total shareholders’ equity	1,477,525		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


			Third Quarter 2024 Results


First Bancorp and Subsidiaries Financial Summary


TREND INFORMATION
	For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 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 period	41,340,099			41,187,943			41,156,286			41,109,987			40,085,498
Weighted average shares outstanding - diluted	41,366,743			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 ratio	14.34		%	13.99		%	13.50		%	13.20		%	12.93		%
Total risk-based capital ratio	16.44		%	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, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 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 income	83,043		81,115		79,274		82,484		84,702
Provision for credit losses	14,200		541		1,200		2,950		—
Noninterest income	13,579		14,601		12,896		14,542		15,177
Merger and acquisition expenses	—		—		—		189		—
Other noninterest expense	59,850		58,291		59,187		56,197		62,224
Income before income taxes	22,572		36,884		31,783		37,690		37,655
Income tax expense	3,892		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.


			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, 2024						June 30, 2024						September 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 securities	2,493,924		1.72	%	10,779		2,591,617		1.75	%	11,291		2,885,443		1.78	%	12,936
Non-taxable securities	290,939		1.53	%	1,116		292,045		1.54	%	1,117		295,403		1.50	%	1,118
Short-term investments, primarily interest-bearing cash	684,634		4.90	%	8,438		507,635		4.71	%	5,942		284,678		4.58	%	3,283
Total interest-earning assets	11,489,227		4.55	%	131,409		11,462,112		4.52	%	128,775		11,405,307		4.31	%	123,851

Cash and due from banks	84,060						84,674						94,963
Premises and equipment	146,448						149,643						152,415
Other assets	406,878						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 deposits	4,173,884		3.32	%	34,878		4,004,175		3.26	%	32,411		3,530,532		2.63	%	23,397
Savings deposits	549,132		0.23	%	317		570,283		0.22	%	317		646,782		0.19	%	307
Other time deposits	626,341		3.00	%	4,726		738,290		3.30	%	6,053		646,798		2.48	%	4,037
Time deposits >$250,000	390,208		3.89	%	3,811		371,471		3.83	%	3,539		359,884		3.19	%	2,893
Total interest-bearing deposits	7,133,176		2.59	%	46,420		7,081,586		2.54	%	44,744		6,632,599		1.95	%	32,641
Borrowings	97,150		7.97	%	1,946		167,976		7.09	%	2,963		438,808		5.88	%	6,508
Total interest-bearing liabilities	7,230,326		2.66	%	48,366		7,249,562		2.65	%	47,707		7,071,407		2.20	%	39,149

Noninterest-bearing checking	3,376,061						3,350,723						3,547,447
Other liabilities	75,197						76,713						83,675
Shareholders’ equity	1,445,029						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 income			2.88	%	$	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 spread			1.89	%					1.87	%					2.11	%

Average prime rate			8.43	%					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.


			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, 2024						September 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 securities	2,633,093		1.77	%	34,798		2,943,798		1.79	%	39,415
Non-taxable securities	292,056		1.53	%	3,350		296,985		1.52	%	3,368
Short-term investments, primarily interest-bearing cash	490,782		4.72	%	17,351		337,701		4.18	%	10,546
Total interest-earning assets	11,480,411		4.50	%	386,845		11,418,828		4.24	%	362,186

Cash and due from banks	86,514						94,483
Premises and equipment	149,073						152,058
Other assets	381,806						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 deposits	3,961,707		3.21	%	95,102		3,253,840		2.15	%	52,263
Savings deposits	567,202		0.22	%	942		683,741		0.14	%	705
Other time deposits	694,469		3.12	%	16,235		773,755		2.56	%	14,807
Time deposits >$250,000	372,561		3.78	%	10,548		338,797		2.73	%	6,907
Total interest-bearing deposits	6,994,076		2.49	%	130,299		6,527,112		1.62	%	78,887
Borrowings	280,370		6.25	%	13,114		453,694		5.64	%	19,125
Total interest-bearing liabilities	7,274,446		2.63	%	143,413		6,980,806		1.88	%	98,012

Noninterest-bearing checking	3,346,669						3,665,313
Other liabilities	76,922						91,997
Shareholders’ equity	1,399,767						1,297,221
Total liabilities and shareholders’ equity	$	12,097,804					$	12,035,337

Net yield on interest-earning assets and net interest income			2.83	%	$	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 spread			1.87	%					2.36	%

Average prime rate			8.48	%					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.


			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, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Net Income	$	18,680		$	28,712		$	25,272		$	29,674		$	29,893
Intangible asset amortization, net of taxes	1,240			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 equity	5.48		%	8.75		%	7.78		%	9.68		%	9.90		%
Return on average tangible common equity	8.30		%	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, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 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, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 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, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 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 ratio	8.47		%	7.90		%	7.62		%	7.56		%	6.64		%


			Third Quarter 2024 Results

APPENDIX E: Adjusted EPS - diluted


	For the Three Months Ended		For the Nine Months Ended
	September 30, 2024		September 30, 2024

Net income	$	18,680	$	72,664
Impact of Hurricane Helene
Provision for credit losses	13,000		13,000
Building repairs and maintenance	300		300
Other	96		96
Total	13,396		13,396
Less, tax impact	(3,102)		(3,102)
After-tax impact of Hurricane Helene	10,294		10,294
Adjusted net income	$	28,974	$	82,958

Weighted average shares outstanding - diluted	41,366,743		41,294,137

EPS - diluted	$	0.45	$	1.76
Adjusted EPS - diluted	$	0.70	$	2.01

First Bancorp (FBNC) 8-KFirst Bancorp Reports Third Quarter Results