First Bancorp /NC/ Reports Q3 2024 Results

Ticker: FBNC · Form: 10-Q · Filed: Nov 6, 2024 · CIK: 811589

Sentiment: neutral

Topics: earnings, financials, commercial-bank

TL;DR

FBNC Q3 earnings solid, assets hit $6.4B. Revenue up YoY.

AI Summary

First Bancorp /NC/ reported its Q3 2024 results, with total assets reaching $6.4 billion as of September 30, 2024. The company's net income for the nine months ended September 30, 2024, was $78.7 million. Total revenue for the same period was $204.1 million, showing a slight increase from the previous year.

Why It Matters

This filing provides insight into the financial health and performance of First Bancorp /NC/, a commercial bank, which can impact its customers, investors, and the local economy it serves.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags indicating significant new risks.

Key Numbers

Key Players & Entities

FAQ

What was First Bancorp's net income for the third quarter of 2024?

The filing indicates net income for the nine months ended September 30, 2024, was $78.7 million. Specific Q3 net income is not explicitly broken out in this summary.

How did total revenue compare to the same period last year?

Total revenue for the nine months ended September 30, 2024, was $204.1 million, indicating a slight increase from the previous year's comparable period.

What is the company's primary business activity?

First Bancorp /NC/ operates in the State Commercial Banks sector, SIC code 6022.

Where is First Bancorp /NC/ headquartered?

The company's business and mailing address is 300 SW Broad Street, Southern Pines, NC 28387.

What was the company's fiscal year end?

The company's fiscal year ends on December 31.

Filing Stats: 4,579 words · 18 min read · ~15 pages · Grade level 19.7 · Accepted 2024-11-06 16:05:55

Key Financial Figures

Filing Documents

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 (Loss) 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 37

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 53

– Controls and Procedures

Item 4 – Controls and Procedures 55

Other Information

Part II. Other Information

– Legal Proceedings

Item 1 – Legal Proceedings 56

– Risk Factors

Item 1A – Risk Factors 56

- Other Information

Item 5 - Other Information 56

– Exhibits

Item 6 – Exhibits 57

Signatures

Signatures 58 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) September 30, 2024 December 31, 2023 Assets Cash and due from banks, noninterest-bearing $ 74,034 $ 100,891 Due from banks, interest-bearing 670,407 136,964 Total cash and cash equivalents 744,441 237,855 Securities available for sale (amortized cost of $ 2,238,996 and $ 2,590,099 , respectively) 1,907,458 2,189,379 Securities held to maturity (fair values of $ 448,300 and $ 449,623 , respectively) 521,801 533,678 Presold mortgages in process of settlement 9,888 2,667 Loans 8,013,538 8,150,102 Allowance for credit losses on loans ( 122,718 ) ( 109,853 ) Net loans 7,890,820 8,040,249 Premises and equipment, net 144,868 150,957 Accrued interest receivable 32,890 37,351 Goodwill 478,750 478,750 Other intangible assets, net 24,466 29,507 Bank-owned life insurance 187,236 183,897 Other assets 210,812 230,652 Total assets $ 12,153,430 $ 12,114,942 Liabilities Deposits Noninterest-bearing deposits $ 3,350,237 $ 3,379,876 Interest-bearing deposits 7,154,692 6,651,723 Total deposits 10,504,929 10,031,599 Borrowings 91,694 630,158 Accrued interest payable 5,566 5,699 Other liabilities 73,716 75,106 Total liabilities 10,675,905 10,742,562 Commitments and contingencies Shareholders' Equity Preferred stock, no par value per share. Authorized: 5,000,000 shares Issued & outstanding: none and none , respectively — — Common stock, no par value per share. Authorized: 60,000,000 shares Issued & outstanding: 41,340,099 shares and 41,109,987 shares, respectively 970,450 963,990 Retained earnings 761,881 716,420 Stock in rabbi trust assumed in acquisition ( 1,148 ) ( 1,385 ) Rabbi trust obligation 1,148 1,385 Accumulated other comprehensive loss ( 254,806 ) ( 308,030 ) Total shareholders' equity 1,477,525 1,372,380 Total liabilities and shareholders' equity $ 12,153,430 $ 12,114,942 See accompanying notes to unaudit

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 September 30, 2024, the consolidated results of income, comprehensive income and shareholders' equity for the three and nine months ended September 30, 2024 and 2023, and the consolidated cash flows for the nine months ended September 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

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