FIRST BANCORP /NC/ (FBNC) Earnings History

FIRST BANCORP /NC/ - Q4 FY2025 Earnings

Filed at: Jan 21, 2026, 4:05 PM EST|Read from source

EXECUTIVE SUMMARY

First Bancorp reported a strong finish to 2025, driven by significant net interest margin expansion and robust loan growth. The company demonstrated effective expense management and improved profitability, particularly when adjusting for a notable securities loss.

POSITIVE HIGHLIGHTS

  • •

    Net interest income increased by 19.5% year-over-year to $106.2 million.

    positive
  • •

    Net interest margin (NIM) expanded by 53 basis points year-over-year to 3.58%.

    positive
  • •

    Loan growth accelerated to 14.3% annualized in the fourth quarter, reaching $8.7 billion.

    positive
  • •

    Adjusted diluted EPS was $1.19, a significant increase from $0.76 in the prior year quarter.

    positive
  • •

    Tangible common equity to tangible assets ratio improved to 9.61% from 8.22% in the prior year.

    positive

CONCERNS & RISKS

  • •

    Reported net income of $15.7 million and diluted EPS of $0.38 were down from the linked quarter ($20.4 million and $0.49, respectively).

    attention
  • •

    Noninterest income was negative $22.3 million due to a $43.7 million securities loss.

    negative
  • •

    Total deposits decreased by $132.8 million in the fourth quarter.

    attention
  • •

    Regulatory capital ratios declined due to loan growth and debt repayment.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$106.20M
+19.5%
Prior year: $88.84M
Annual (YTD)
$398.25M
N/A
Prior year: $332.27M
Net Income
Quarterly
$15.71M
+343.6%
Prior year: $3.55M
Annual (YTD)
$111.05M
N/A
Prior year: $76.22M
EPS (Diluted)
Quarterly
$0.38
+375.0%
Prior year: $0.08
Annual (YTD)
$2.68
N/A
Prior year: $1.84
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$0.38
+322.2%
Prior year: $0.09
Annual (YTD)
$2.68
N/A
Prior year: $1.85

MARGIN ANALYSIS

Net Margin
Current Quarter
14.8%
Prior Year
4.0%
YoY Change
+1080 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Securities loss from securities loss-earnback transaction
Impacted reported net income and EPS.
+$43.7M
$0.81 per share
Q4 2025
Gain on sale of office building
Contributed to noninterest income.
+$4.6M
Q4 2025
Reduction to allowance for credit losses from Hurricane Helene
Reduced provision for credit losses.
+$1.6M
$0.03 per share
Total Impact
+$49.9M$-0.78 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Closed 2025 with strong momentum, highlighted by a 51 basis-point expansion in net interest margin for the year.

— FIRST BANCORP /NC/, Q4 FY2025 2025 Earnings Call

Grew loans at an annualized rate of more than 14% during the quarter.

— FIRST BANCORP /NC/, Q4 FY2025 2025 Earnings Call

Earnings continued to benefit from rising asset yields as higher-yielding assets replaced lower-yielding COVID-era assets.

— FIRST BANCORP /NC/, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Allowance For Credit Losses To Total Loans
1.4
Prior year: 1.5
percent
Cost Of Deposits
1.3
-16.0% YoY
Prior year: 1.6
percent
Loan Growth Annualized
14.3
percent
Loan Yield
5.6
+2.0% YoY
Prior year: 5.5
percent
Nonperforming Assets To Total Assets
0.3
Prior year: 0.3
percent
Securities Yield
2.7
+37.2% YoY
Prior year: 2.0
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.