First Bancorp Reports Fourth Quarter and Full Year Results

First Bancorp, headquartered in Southern Pines, North Carolina, has released its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company, which operates First Bank with 113 branches across North Carolina and South Carolina, reported significant financial metrics and operational highlights in its latest SEC 8-K filing.

Financial Highlights

For the fourth quarter of 2024, First Bancorp reported a net income of $3.6 million, or $0.08 diluted earnings per share (EPS). This is a notable decrease from the $18.7 million, or $0.45 diluted EPS, reported in the previous quarter, and a significant drop from the $29.7 million, or $0.72 diluted EPS, reported in the same quarter of the previous year. For the full year 2024, net income was $76.2 million, or $1.84 diluted EPS, compared to $104.1 million, or $2.53 diluted EPS, for 2023.

The company's adjusted net income for the fourth quarter of 2024 was $31.7 million, or $0.76 adjusted diluted EPS, showing an increase from the previous quarter's adjusted net income of $29.0 million, or $0.70 adjusted diluted EPS. For the full year, adjusted net income was $114.6 million, or $2.77 adjusted diluted EPS, compared to $104.1 million, or $2.53 diluted EPS, in 2023.

Business and Operational Highlights

First Bancorp's tax equivalent net interest margin (NIM) increased to 3.07% for the fourth quarter of 2024, up from 2.90% in the previous quarter. The total loan yield contracted slightly to 5.47%, while the total cost of funds fell to 1.62%. Average deposits for the quarter were $10.6 billion, with a notable increase in noninterest-bearing deposits.

Noninterest expenses declined to $58.3 million for the fourth quarter, driven by a decrease in personnel expenses. The company also reported strong credit quality, with a nonperforming assets (NPA) to total assets ratio of 0.39% and annualized net loan charge-offs of 0.04%.

Strategic Initiatives and Corporate Developments

During the fourth quarter, First Bancorp executed a securities loss-earnback transaction, selling $280 million of available-for-sale securities at a loss of $36.8 million and investing $495 million in new securities with higher yields. This strategic move is expected to benefit the company's future financial performance.

Management's Perspective

Richard H. Moore, CEO and Chairman of First Bancorp, expressed pride in the company's results, particularly in maximizing the impact of rate cuts and supporting communities affected by Hurricane Helene. He highlighted the positive momentum going into 2025, with fourth quarter adjusted net income and adjusted diluted EPS showing meaningful increases from the third quarter.

Future Outlook

Looking ahead, First Bancorp anticipates continued positive momentum in 2025, driven by strategic balance sheet initiatives and the benefits of recent financial transactions. The company remains well-capitalized, with strong liquidity and a focus on prudent expense management.

SEC Filing: FIRST BANCORP /NC/ [ FBNC ] - 8-K - Jan. 29, 2025