First Bancorp /NC/ Files Q2 2024 10-Q Report

TL;DR

FBNC Q2 2024 10-Q filed. Financials out.

AI Summary

First Bancorp /NC/ reported its Q2 2024 results, with the filing covering the period ending June 30, 2024. The company, based in Southern Pines, NC, operates in the commercial banking sector. Key financial data and operational details for the second quarter and the first half of the year are presented in this 10-Q filing.

Why It Matters

This filing provides investors and analysts with crucial financial performance data for First Bancorp /NC/ for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a commercial bank, First Bancorp /NC/ is subject to various financial and regulatory risks inherent in the banking industry.

Key Numbers

• Q2 2024 — Quarterly Period (Reporting period for the 10-Q filing.)
• 2024-06-30 — Period End Date (The end date of the reporting period.)
• 2024-08-07 — Filing Date (The date the report was officially filed with the SEC.)

Key Players & Entities

• FIRST BANCORP /NC/ (company) — Filer
• Southern Pines, NC (location) — Company Headquarters
• 20240630 (date) — Reporting Period End Date
• 20240807 (date) — Filing Date

FAQ

Filing Documents

• fbnc-20240630.htm (10-Q) — 3051KB
• fbnc2024-06exx311.htm (EX-31.1) — 9KB
• fbnc2024-06exx312.htm (EX-31.2) — 9KB
• fbnc2024-06exx321.htm (EX-32.1) — 4KB
• fbnc2024-06exx322.htm (EX-32.2) — 4KB
• 0000811589-24-000055.txt ( ) — 16432KB
• fbnc-20240630.xsd (EX-101.SCH) — 70KB
• fbnc-20240630_cal.xml (EX-101.CAL) — 165KB
• fbnc-20240630_def.xml (EX-101.DEF) — 471KB
• fbnc-20240630_lab.xml (EX-101.LAB) — 917KB
• fbnc-20240630_pre.xml (EX-101.PRE) — 737KB
• fbnc-20240630_htm.xml (XML) — 4006KB

Financial Information

Part I. Financial Information

- Financial Statements (unaudited)

Item 1 - Financial Statements (unaudited) Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Shareholders' Equity 7 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

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

Item 2 – Management's Discussion and Analysis of Consolidated Results of Operations and Financial Condition 39

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 54

– Controls and Procedures

Item 4 – Controls and Procedures 56

Other Information

Part II. Other Information

– Legal Proceedings

Item 1 – Legal Proceedings 57

– Risk Factors

Item 1A – Risk Factors 57

- Other Information

Item 5 - Other Information 57

– Exhibits

Item 6 – Exhibits 58

Signatures

Signatures 59 Page 2 Index

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Part I of this report 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. Further, forward-looking statements 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," "estimate," "plan," "project," or other statements concerning our opinions or judgment 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, geopolitical influences and general economic conditions. For additional information about factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of our 2023 Annual Report on Form 10-K ("2023 Annual Report") and Item 1A of Part II of this report. Page 3 Index

Financial Information

Part I. Financial Information

- Financial Statements

Item 1 - Financial Statements First Bancorp and Subsidiaries Consolidated Balance Sheets ($ in thousands - unaudited) June 30, 2024 December 31, 2023 Assets Cash and due from banks, noninterest-bearing $ 90,468 $ 100,891 Due from banks, interest-bearing 517,944 136,964 Total cash and cash equivalents 608,412 237,855 Securities available for sale (amortized cost of $ 2,277,299 and $ 2,590,099 , respectively) 1,867,211 2,189,379 Securities held to maturity (fair values of $ 431,442 and $ 449,623 , respectively) 523,600 533,678 Presold mortgages in process of settlement 7,247 2,667 Loans 8,069,848 8,150,102 Allowance for credit losses on loans ( 110,058 ) ( 109,853 ) Net loans 7,959,790 8,040,249 Premises and equipment, net 147,110 150,957 Accrued interest receivable 35,605 37,351 Goodwill 478,750 478,750 Other intangible assets, net 26,080 29,507 Bank-owned life insurance 186,031 183,897 Other assets 220,969 230,652 Total assets $ 12,060,805 $ 12,114,942 Liabilities Noninterest-bearing deposits $ 3,339,678 $ 3,379,876 Interest-bearing deposits 7,148,151 6,651,723 Total deposits 10,487,829 10,031,599 Borrowings 91,513 630,158 Accrued interest payable 5,728 5,699 Other liabilities 71,393 75,106 Total liabilities 10,656,463 10,742,562 Commitments and contingencies Shareholders' Equity Preferred stock, no par value per share. Authorized: 5,000,000 shares Issued & outstanding: none as of June 30, 2024 and December 31, 2023 — — Common stock, no par value per share. Authorized: 60,000,000 shares Issued & outstanding: 41,187,943 shares and 41,109,987 shares as of June 30, 2024 and December 31, 2023, respectively 967,239 963,990 Retained earnings 752,294 716,420 Stock in rabbi trust assumed in acquisition ( 1,139 ) ( 1,385 ) Rabbi trust obligation 1,139 1,385 Accumulated other comprehensive loss ( 315,191 ) ( 308,030 ) Total shareholders' equity 1,404,342 1,372,380 Total liabilities and shareholders' equity $ 12,060,805 $ 1

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) Note 1. Organization and Basis of Presentation The consolidated financial statements include the accounts of First Bancorp (the "Company") and its wholly owned subsidiary First Bank (the "Bank"). The Bank has three wholly owned subsidiaries that are fully consolidated, SBA Complete, Inc. ("SBA Complete"), Magnolia Financial, Inc. ("Magnolia Financial"), and First Troy SPE, LLC. All significant intercompany accounts and transactions have been eliminated. During the second quarter of 2024, SBA Complete became inactive with certain activities transitioning to the Bank. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2024, the consolidated results of income, comprehensive income and shareholders' equity for the three and six months ended June 30, 2024 and 2023, and the consolidated cash flows for the six months ended June 30, 2024 and 2023. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the 2023 Annual Report for the year ended December 31, 2023. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year. In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the c

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