FIRST BANCORP /NC/ Files 2023 Annual Report on Form 10-K

TL;DR

<b>First Bancorp /NC/ (FBNC) has filed its 2023 10-K report detailing its financial performance and operations.</b>

AI Summary

FIRST BANCORP /NC/ (FBNC) filed a Annual Report (10-K) with the SEC on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. First Bancorp /NC/ is a commercial bank operating under SIC code 6022. The company's principal business address is 300 SW Broad Street, Southern Pines, NC 28387. The filing includes financial data for the years 2020, 2021, 2022, and 2023. The report is filed under the 1934 Securities Exchange Act.

Why It Matters

For investors and stakeholders tracking FIRST BANCORP /NC/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of First Bancorp's financial health and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the company's performance, risks, and future outlook within the commercial banking sector.

Risk Assessment

Risk Level: medium — FIRST BANCORP /NC/ shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code and the nature of a 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand FBNC's performance and potential challenges in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 2020-12-31 — Balance Sheet Date (Historical financial data point)
• 2021-12-31 — Balance Sheet Date (Historical financial data point)
• 2022-12-31 — Balance Sheet Date (Historical financial data point)

Key Players & Entities

• FIRST BANCORP /NC/ (company) — Filer name
• FBNC (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 6022 (industry_code) — Standard Industrial Classification
• NC (location) — State of incorporation and business address
• 1934 Act (regulation) — SEC Act

FAQ

Industry Context

First Bancorp /NC/ operates within the commercial banking industry, a sector characterized by its sensitivity to interest rate changes, economic conditions, and regulatory policies.

Regulatory Implications

As a commercial bank, First Bancorp /NC/ is subject to regulations from various federal and state agencies, including those governing capital requirements, lending practices, and consumer protection.

What Investors Should Do

1. Analyze the company's balance sheet and income statement for the fiscal years 2020-2023 to identify trends in assets, liabilities, revenue, and net income.
2. Investigate any disclosed risk factors or management discussion and analysis sections to understand potential challenges and strategic responses.
3. Compare FBNC's financial performance and key ratios against industry benchmarks if available in the full filing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $12.1 b — ompany had total consolidated assets of $12.1 billion, total loans of $8.2 billion, tot
• $8.2 b — assets of $12.1 billion, total loans of $8.2 billion, total deposits of $10.0 billion,
• $10.0 b — oans of $8.2 billion, total deposits of $10.0 billion, and shareholders' equity of $1.4
• $1.4 billion — .0 billion, and shareholders' equity of $1.4 billion. Our principal activity is the ownershi
• $1.2 billion — ered in Greenville, South Carolina with $1.2 billion in total assets, $1.0 billion in loans,
• $1.0 billion — lina with $1.2 billion in total assets, $1.0 billion in loans, and $1.1 billion in deposits.
• $1.1 billion — otal assets, $1.0 billion in loans, and $1.1 billion in deposits. GrandSouth operated from e
• $1.8 billion — dquartered in Dunn, North Carolina with $1.8 billion in assets, $1.3 billion in loans, and $
• $1.3 billion — h Carolina with $1.8 billion in assets, $1.3 billion in loans, and $1.6 billion in deposits.
• $1.6 billion — n in assets, $1.3 billion in loans, and $1.6 billion in deposits. Select operated from 22 br
• $798 million — rket of Asheville, North Carolina, with $798 million in assets and 13 branches located throu
• $682 million — ered in Greensboro, North Carolina with $682 million in assets and eight branches located in
• $10 million — authorities which are generally between $10 million and $15 million. When the request for a
• $15 million — h are generally between $10 million and $15 million. When the request for approval exceeds
• $25 million — the Bank's Chief Credit Officer who has $25 million in lending authority. For loans in exce

Filing Documents

• fbnc-20231231.htm (10-K) — 4734KB
• fbnc2023-12exx4bsecurities.htm (EX-4.B) — 12KB
• fbnc2023-12ex21subsidiaries.htm (EX-21) — 10KB
• fbnc2023-12exx23consentofb.htm (EX-23) — 3KB
• fbnc2023-12exx311.htm (EX-31.1) — 9KB
• fbnc2023-12exx312.htm (EX-31.2) — 9KB
• fbnc2023-12exx321.htm (EX-32.1) — 4KB
• fbnc2023-12exx322.htm (EX-32.2) — 4KB
• fbnc2023-12ex97.htm (EX-97) — 22KB
• fbnc-20231231_g1.jpg (GRAPHIC) — 93KB
• 0000811589-24-000010.txt (&nbsp;) — 25051KB
• fbnc-20231231.xsd (EX-101.SCH) — 136KB
• fbnc-20231231_cal.xml (EX-101.CAL) — 225KB
• fbnc-20231231_def.xml (EX-101.DEF) — 843KB
• fbnc-20231231_lab.xml (EX-101.LAB) — 1637KB
• fbnc-20231231_pre.xml (EX-101.PRE) — 1281KB
• fbnc-20231231_htm.xml (XML) — 5131KB

Business

Business 5 Item 1A

Risk Factors

Risk Factors 19 Item 1B Unresolved Staff Comments 31 Item 1C Cybersecurity 31 Item 2

Properties

Properties 32 Item 3

Legal Proceedings

Legal Proceedings 33 Item 4 Mine Safety Disclosures 33 PART II Item 5 Market for Registrant's Common Stock, Related Shareholder Matters, and Issuer Purchases of Equity Securities 33 Item 6 Reserved 34 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 62 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data: Consolidated Balance Sheets as of December 31, 202 3 and 20 22 66 Consolidated Statements of Income for each of the years in the three-year period ended December 31, 202 3 67 Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 20 2 3 68 Consolidated Statements of Shareholders' Equity for each of the years in the three-year period ended December 31, 20 23 69 Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 20 23 70 Notes to the Consolidated Financial Statements 72 Reports of Independent Registered Public Accounting Firm (BDO USA, P.C.; Philadelphia, PA; PCAOB ID# 243 ) 124 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 128 Item 9A

Controls and Procedures

Controls and Procedures 128 Item 9B Other Information 129

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 129 PART III Item 10 Directors, Executive Officers and Corporate Governance 130 Item 11

Executive Compensation

Executive Compensation 130 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 130 Item 13 Certain Relationships and Related Transactions, and Director Independence 130 Item 14 Principal Accountant Fees and Services 131 PART IV Item 15 Exhibits and Financial Statement Schedules 132

Form 10-K Summary

Item 16 Form 10-K Summary 133

SIGNATURES

SIGNATURES 134 * Information called for by Part III (Items 10 through 14) is incorporated herein by reference to the Registrant's definitive Proxy Statement for the 2024 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission on or before April 29, 2024. 3 MD&A and Financial Statement References In this Report: "2023 MD&A" and "2023 MD&A (Item 7)" generally refer to Management's Discussion and Analysis of Financial Condition and Results of Operations (inclusive of Glossary of Terms and Acronyms below), appearing in Item 7 within Part II of this Report; and, "2023 Financial Statements" and "2023 Financial Statements (Item 8)" generally refer to our Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows, and the Notes to the Consolidated Financial Statements, all appearing in Item 8 within Part II of this Report. Glossary of Terms and Acronyms The following terms and acronyms may be used throughout this Report, with the exception of Item 8. ACL Allowance for credit losses FDM Financial Difficulty Modifications AFS Available for sale Federal Reserve Board of Governors of the Federal Reserve System AML The Anti-Money Laundering Act of 2020 FFCB Federal Farm Credit Bank AOCI Accumulated Other Comprehensive Income/Loss FHLB Federal Home Loan Bank Annual Report or Report Annual Report on Form 10-K FHLMC Federal Home Loan Mortgage Corporation ASC FASB Accounting Standards Codification FINCEN Financial Crimes Enforcement Network ASC 326 FASB ASC Topic 326, Financial Instruments – Credit Losses FNMA Federal National Mortgage Association ASC 350 FASB ASC Topic 350, Intangibles - Goodwill and Other FOMC Federal Open Market Committee Asheville Savings ASB Bancorp, Inc. and its subsidiary Asheville Savings Bank SSB GAAP Accounting principles generally accepted in the United States of Amer

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report contains forward-looking statements within the meaning of Section 21E of the Exchange Act 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 and, further, are intended to speak only as of the date made. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "anticipate," "intend," "estimate," "plan," "project," or other qualifications concerning our opinions or judgments about future events. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of our customers, our level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about factors that could affect our actual results, see the "Risk Factors" section in Item 1A of this Report. PART I

Business

Item 1. Business General Description The Company is the fourth largest bank holding company headquartered in North Carolina. At December 31, 2023, the Company had total consolidated assets of $12.1 billion, total loans of $8.2 billion, total deposits of $10.0 billion, and shareholders' equity of $1.4 billion. Our principal activity is the ownership and operation of the Bank, a state-chartered bank with its headquarters in Southern Pines, North Carolina, through which we engage in a full range of banking activities. Our principal executive offices are located at 300 SW Broad St., Southern Pines, North Carolina 28387, and our telephone number is (910) 246-2500. The Company was incorporated in North Carolina on December 8, 1983 for the purpose of acquiring 100% of the outstanding common stock of the Bank through a stock-for-stock exchange. The Bank began banking operations in 1935 as the Bank of Montgomery, named for the county in which it operated. In 1985, its name was changed to First Bank and in September 2013, the Company and the Bank moved their headquarters and main offices to Southern Pines, North Carolina. As of December 31, 2023, the Bank had three wholly-owned subsidiaries, SBA Complete, Magnolia Financial, and First Troy SPE, LLC. SBA Complete specializes in providing consulting services for financial institutions across the country related to SBA loan origination and servicing. Magnolia Financial is a business financing company that offers accounts receivable financing and factoring, inventory financing, and purchase order financing throughout the southeastern United States. First Troy SPE, LLC is a holding entity for certain foreclosed properties. The Company is the parent of a series of statutory business trusts organized for the purpose of issuing trust preferred debt securities that qualify as regulatory capital. For purposes of the discussion below, these statutory business trusts are not included in our consolidated financial statements as they

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