fblogoa09a.jpg

News Release

For Immediate Release:For More Information, Contact:
July 23, 2025
Hillary Kestler
704-644-4137

First Bancorp Reports Second Quarter Results

Second Quarter 2025 Financial Data
Second Quarter 2025 Highlights
(Dollars in 000s, except per share data)Q2-2025Q1-2025Q2-2024
•Diluted earnings per share ("D-EPS") was $0.93 per share for the second quarter of 2025 compared to $0.88 for the linked quarter and $0.70 for the like quarter.
•Total loan yield expanded to 5.53%, up 1 basis point from the linked quarter and 3 basis points from the like quarter. Total cost of funds contracted 3 basis points to 1.48% for the quarter ended June 30, 2025 from 1.51% for the linked quarter and from 1.81% for the like quarter.
•The yield on securities increased 13 basis points to 2.41% for the quarter ended June 30, 2025 from 2.28% for the linked quarter. The Company purchased $127.0 million of CMOs yielding 5.16% during the second quarter.
•Average core deposits were $10.7 billion for the second quarter of 2025, an increase of $140.4 million from the linked quarter, with $147.0 million of growth in noninterest bearing deposits and $21.3 million of growth in average money market accounts, partially offset by a decline of $30.7 million in average time deposits. Total cost of deposits was 1.43%, a decrease of 3 basis points from 1.46% for the linked quarter and 29 basis points from the like quarter at 1.72%. The Company continues to maintain a low level of wholesale funding with average borrowings of $92.2 million for the quarter ended June 30, 2025.
•We continue to focus on expense management. Noninterest expenses of $59.0 million represented a $1.1 million increase from the linked quarter and $0.7 million from the like quarter. The linked quarter increase was driven by a $0.7 million increase in Other operating expenses and a $0.4 million increase in Total personnel expense.
•Total loans were $8.2 billion at June 30, 2025, reflecting growth of $122.6 million, or 6.07% annualized, for the quarter and growth of $155.8 million, or 1.93%, from June 30, 2024.
•Noninterest-bearing demand deposits were $3.5 billion, representing 33% of total deposits at June 30, 2025. During the second quarter of 2025, customer deposits grew $85.6 million driven by increases of $65.8 million in noninterest bearing deposits and $60.0 million in money market accounts.
•The on-balance sheet liquidity ratio was 20.0% at June 30, 2025, an increase from 19.8% for the linked quarter. Available off-balance sheet sources totaled $2.3 billion at June 30, 2025, resulting in a total liquidity ratio of 36.1%.
Summary Income Statement
Total interest income$136,741 $132,660 $128,822 
Total interest expense40,065 39,777 47,707 
Net interest income96,676 92,883 81,115 
Provision for credit losses2,212 1,116 541 
Noninterest income14,341 12,902 14,601 
Noninterest expenses58,983 57,893 58,291 
Income tax expense11,256 10,370 8,172 
Net income$38,566 $36,406 $28,712 
Key Metrics
Diluted EPS$0.93 $0.88 $0.70 
Book value per share37.53 36.46 34.10 
Tangible book value per share25.82 24.69 22.19 
Return on average assets1.24 %1.21 %0.96 %
Return on average common equity10.11 %10.06 %8.38 %
Return on average tangible common equity15.25 %15.54 %13.60 %
NIM3.32 %3.25 %2.84 %
NIM- T/E3.32 %3.27 %2.87 %
Quarterly net charge-offs to average loans - annualized0.06 %0.17 %0.07 %
Allowance for credit losses to total loans1.47 %1.49 %1.36 %
Capital Ratios (1)
Tangible common equity to tangible assets8.83 %8.55 %7.90 %
Common equity tier I capital ratio14.62 %14.52 %13.99 %
Total risk-based capital ratio16.87 %16.80 %16.24 %
(1) June 30, 2025 ratios are preliminary.
1


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results

SOUTHERN PINES, N.C. - First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today. The Company announced net income of $38.6 million, or $0.93 D-EPS, for the three months ended June 30, 2025 compared to $36.4 million, or $0.88 D-EPS, for the three months ended March 31, 2025 ("linked quarter") and $28.7 million, or $0.70 D-EPS, for the second quarter of 2024 ("like quarter"). For the six months ended June 30, 2025, the Company recorded net income of $75.0 million, or $1.81 per diluted common share, compared to $54.0 million, or $1.31 per diluted common share, for the six months ended June 30, 2024.

The Company continued to enhance net interest income and net interest margin ("NIM"). The Company recorded net interest income of $96.7 million for the second quarter of 2025, compared to $92.9 million for the linked quarter and $81.1 million for the like quarter. NIM for the second quarter of 2025 expanded to 3.32% from 3.25% for the linked quarter and 2.84% for the like quarter.

First Bancorp also continued to maintain expense control with noninterest expenses of $59.0 million for the second quarter of 2025, up slightly from $57.9 million for the linked quarter and $58.3 million for the like quarter. For the six months ended June 30, 2025, the Company recorded noninterest expense of $116.9 million, down from $117.5 million, for the six months ended June 30, 2024.

Richard H. Moore, Chairman and CEO of the Company, stated "First Bancorp continues to improve financial results in 2025 as second quarter net income was $38.6 million and diluted EPS was $0.93, both resulting from expanded net interest margin and disciplined expense management. We improved our liquidity position and increased our capital levels, while credit quality remains strong with low levels of charge-offs and nonperforming assets. We grew loans 6% annualized in the quarter and benefited from our favorable cost of funds and increased yields on our earning assets. Our Board also increased our quarterly dividend to $0.23 per share effective June 30, 2025. We are very pleased with the Bank's performance halfway through this year."

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2025 was $96.7 million, an increase of 4.1% from the linked quarter of $92.9 million and 19.2% from the like quarter of $81.1 million. The increase in net interest income from the linked and like quarters was primarily driven by our focused efforts to manage deposit costs while increasing loan yields after the rate cuts by the Federal Reserve in the second half of 2024 along with the increased securities yield resulting from the loss-earnback transaction executed in the fourth quarter of 2024.
The Company’s NIM for the second quarter of 2025 was 3.32%, an increase of 7 basis points from the linked quarter and 48 basis points from the like quarter. Within interest-earning assets, the purchase of $127.0 million of CMOs yielding 5.16% during the second quarter aided in the 13 basis point increase in the yield on securities as compared to the linked quarter. In addition, loan yields increased 1 basis point to 5.53%. During the quarter ended June 30, 2025, interest-bearing deposits remained consistent with the linked quarter and fell 0.40% from the like quarter, attributable to the three rate cuts by the Federal Reserve between September and December. The like quarter expansion of NIM was driven by the same factors described above resulting in an increase of 69 basis points in securities yield, an increase of 3 basis points in loan yields, and a decrease of 40 basis points in the rate on interest-bearing deposits.

2


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
For the Three Months Ended
YIELD INFORMATIONJune 30, 2025March 31, 2025June 30, 2024
Yield on loans5.53%5.52%5.50%
Yield on securities2.41%2.28%1.72%
Yield on other earning assets4.63%4.42%4.71%
Yield on total interest-earning assets4.69%4.65%4.51%
Cost of interest-bearing deposits2.14%2.14%2.54%
Cost of borrowings7.22%7.31%7.09%
Cost of total interest-bearing liabilities2.20%2.21%2.65%
Total cost of funds1.48%1.51%1.81%
Cost of total deposits1.43%1.46%1.72%
Net interest margin (1)3.32%3.25%2.84%
Net interest margin - tax-equivalent (2)3.32%3.27%2.87%
Average prime rate7.50%7.50%8.50%
(1) Calculated by dividing annualized net interest income by average earning assets for the period.
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense.

See Appendix F regarding loan purchase discount accretion and its impact on the Company's NIM.

Provision for Credit Losses and Credit Quality

For the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, the Company recorded $2.2 million, $1.1 million and $0.5 million in provision for credit losses, respectively. The provision for the second quarter of 2025 was driven by net charge-offs of $1.2 million, reserves related to loan growth of $122.6 million, and declining macro-economic projections, partially offset by the $3.5 million reduction in reserves for potential credit exposure from Hurricane Helene. Additionally, the $1.1 million provision for unfunded commitments during the quarter was the result of increased reserve rates for specifc segments of the loan portfolio and an increase in the level of available unfunded lending commitments. The June macro-economic forecasts are a key driver in the Company's CECL model and reflected declines from the prior quarter.

Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene starting late in the third quarter of 2024, the Company identified borrowers that were potentially impacted by the storm and subsequent economic impacts which represented approximately $703 million of loans outstanding as of June 30, 2025. Based upon its continuing evaluation of these potential impacts, the Company adjusted the incremental reserve for potential exposure from Hurricane Helene to $7.5 million as of June 30, 2025. The remaining incremental reserve contributes 10 basis points to the Allowance for Credit Losses at period end. The results for the second quarter of 2025 included a $3.5 million reduction to the potential impacts to the allowance for credit losses from Hurricane Helene ($2.7 million after-taxes or $0.06 per diluted share). The reconciliations from net income and D-EPS to adjusted net income and adjusted D-EPS (both non-GAAP measures) for the first and second quarters of 2025 are presented in Appendix E.

Asset quality remained strong with annualized net loan charge-offs of 0.06% for the second quarter of 2025. Total nonperforming assets ("NPAs") remained at a low level at $35.8 million at June 30, 2025, or 0.28% of total assets, up slightly from 0.27% at March 31, 2025 and consistent with June 30, 2024.
3


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results

The following table presents the summary of NPAs and asset quality ratios for each period.

ASSET QUALITY DATA
($ in thousands)
June 30, 2025March 31, 2025June 30, 2024
Nonperforming assets
Nonaccrual loans$34,625 $29,081 $33,102 
Accruing loans > 90 days past due— — — 
Total nonperforming loans34,625 29,081 33,102 
Foreclosed real estate1,218 4,769 1,150 
Total nonperforming assets$35,843 $33,850 $34,252 
Asset Quality Ratios
Quarterly net charge-offs to average loans - annualized0.06 %0.17 %0.07 %
Nonperforming loans to total loans0.42 %0.36 %0.54 %
Nonperforming assets to total assets0.28 %0.27 %0.28 %
Allowance for credit losses to total loans1.47 %1.49 %1.36 %


Noninterest Income

Total noninterest income for the second quarter of 2025 was $14.3 million, an 11.2% increase from the $12.9 million recorded in the linked quarter and a 1.8% decrease from the $14.6 million recorded for the like quarter. As compared to the linked quarter, noninterest income was higher primarily due to higher Other service charges, commissions and fees and Other income, net of $0.7 million and $0.6 million, respectively.


Noninterest Expenses

Noninterest expenses amounted to $59.0 million for the second quarter of 2025 compared to $57.9 million for the linked quarter and $58.3 million for the like quarter. The $1.1 million, or 1.9%, increase in noninterest expense from the linked quarter was driven by a $0.7 million increase in Other operating expenses and a $0.4 million increase in total personnel expenses arising from increased incentives expense.

The $0.7 million increase from the like quarter was driven by a $0.7 million increase in total personnel expenses and a $0.3 million increase in Occupancy and equipment related expenses, partially offset by declines in other expenses.


Income Taxes

Income tax expense totaled $11.3 million for the second quarter of 2025 compared to $10.4 million for the linked quarter and $8.2 million for the like quarter. These equated to effective tax rates of 22.6%, 22.2% and 22.2% for the respective periods.





4


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
Balance Sheet

Total assets at June 30, 2025 amounted to $12.6 billion, an increase of $172.0 million, or 5.5% annualized, from the linked quarter and an increase of $547.5 million, or 4.5%, from a year earlier. The increase from the linked quarter was primarily driven by loan growth and an increase in our available for sale securities portfolio as a result of $127.0 million of purchases and a decrease in the unrealized loss on those securities, partially offset by repayments.

Key period end balance sheet components are presented below.

BALANCES
($ in thousands)
June 30, 2025March 31, 2025June 30, 2024Change
2Q25 vs 1Q25		Change
2Q25 vs 2Q24
Total assets$12,608,265 $12,436,245 $12,060,805 1.4%4.5%
Loans8,225,650 8,103,033 8,069,848 1.5%1.9%
Investment securities2,661,236 2,582,781 2,390,811 3.0%11.3%
Total cash and cash equivalents711,286 772,441 608,412 (7.9)%16.9%
Noninterest-bearing deposits3,542,626 3,476,786 3,339,678 1.9%6.1%
Interest-bearing deposits7,287,754 7,267,873 7,148,151 0.3%2.0%
Borrowings92,237 92,055 91,513 0.2%0.8%
Shareholders’ equity1,556,180 1,508,176 1,404,342 3.2%10.8%

Primarily the result of securities purchases and decreased unrealized losses on the available for sale securities portfolio during the second quarter of 2025, total investment securities increased to $2.7 billion at June 30, 2025, reflecting a $78.5 million increase from the linked quarter. Total unrealized losses on available for sale investment securities was $298.9 million at June 30, 2025, as compared to $321.2 million at March 31, 2025 and $410.1 million at June 30, 2024. During the second quarter of 2025, the Company purchased $127.0 million of securities with a weighted average yield of 5.16%.
Total loans amounted to $8.2 billion at June 30, 2025, an increase of $122.6 million, or 6.1% annualized, from March 31, 2025 and an increase of $155.8 million, or 1.9%, from June 30, 2024. Please see below table for total loan portfolio mix. As of June 30, 2025, there were no notable concentrations in geographies within North Carolina and South Carolina or industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below. The Company's exposure to non-owner occupied office loans represented approximately 6.5% of the total portfolio at June 30, 2025, with the largest loan being $30.0 million and with an average loan outstanding balance of $1.4 million. Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.

5


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
The following table presents the period end balance and portfolio percentage by loan category.

LOAN PORTFOLIOJune 30, 2025March 31, 2025June 30, 2024
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Commercial and industrial$911,227 11 %$890,071 11 %$863,366 11 %
Construction, development & other land loans633,529 8 %644,439 8 %764,418 9 %
Commercial real estate - owner occupied1,254,596 15 %1,233,732 15 %1,250,267 16 %
Commercial real estate - non-owner occupied2,758,629 34 %2,701,746 34 %2,561,803 32 %
Multi-family real estate509,419 6 %512,958 6 %497,187 6 %
Residential 1-4 family real estate1,731,397 21 %1,709,593 21 %1,729,050 21 %
Home equity loans/lines of credit355,876 4 %341,240 4 %326,411 4 %
Consumer loans70,137 1 %68,115 1 %76,638 1 %
Loans, gross8,224,810 100 %8,101,894 100 %8,069,140 100 %
Unamortized net deferred loan fees840 1,139 708 
Total loans$8,225,650 $8,103,033 $8,069,848 

Total deposits were $10.8 billion at June 30, 2025, an increase of $85.7 million, or 3.2% annualized, from March 31, 2025 and an increase of $342.6 million, or 3.3%, from June 30, 2024.

The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 33% of total deposits at June 30, 2025. As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIOJune 30, 2025March 31, 2025June 30, 2024
($ in thousands)AmountPercentageAmountPercentageAmountPercentage
Noninterest-bearing checking accounts$3,542,626 33 %$3,476,786 32 %$3,339,678 32 %
Interest-bearing checking accounts1,443,010 13 %1,448,377 14 %1,400,071 13 %
Money market accounts4,446,485 41 %4,386,469 41 %4,150,429 40 %
Savings accounts536,247 5 %539,632 5 %558,126 5 %
Other time deposits514,865 5 %533,723 5 %601,212 6 %
Time deposits >$250,000337,382 3 %349,990 3 %389,281 4 %
Total customer deposits10,820,615 100 %10,734,977 100 %10,438,797 100 %
Brokered deposits9,765 — %9,682 — %49,032 — %
Total deposits$10,830,380 100 %$10,744,659 100 %$10,487,829 100 %

As of June 30, 2025 and March 31, 2025, estimated insured deposits totaled $6.5 billion, or 59.7%, and $6.5 billion, or 60.2%, respectively, of total deposits. In addition, at June 30, 2025 and March 31, 2025, there were collateralized deposits of $707.0 million and $725.9 million, respectively, such that approximately 66.3% and 66.9%, respectively, of our total deposits were insured or collateralized at those dates.

Capital

The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at June 30, 2025 of 16.87%, up from the linked quarter ratio of 16.80% and the like quarter ratio of 16.24%. The increase during the second quarter of 2025 in risk-based capital ratios was driven by earnings in excess of dividends, partially offset by an increase in risk weighted assets.
6


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital. AOCI is included in the Company’s tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 8.83% at June 30, 2025, an increase of 28 basis points from the linked quarter and 93 basis points from June 30, 2024. The second quarter increase in TCE was driven by earnings in excess of dividends and improvements in the level of unrealized losses on the available for sale securities portfolio during the quarter. Refer to Appendix B for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix D for a calculation of the TCE ratio (a non-GAAP measure).

CAPITAL RATIOSJune 30, 2025 (estimated)March 31, 2025June 30, 2024
Tangible common equity to tangible assets (non-GAAP)8.83%8.55%7.90%
Common equity tier I capital ratio14.62%14.52%13.99%
Tier I leverage ratio11.45%11.41%11.24%
Tier I risk-based capital ratio15.42%15.34%14.79%
Total risk-based capital ratio16.87%16.80%16.24%

Liquidity

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities and other marketable assets) and off-balance sheet (readily available lines of credit and other funding sources). The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future.

The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at June 30, 2025 was 20.0%. In addition, the Company had approximately $2.3 billion in available lines of credit at that date resulting in a total liquidity ratio of 36.1%.

7


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12.6 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina. Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business. First Bank also provides SBA loans to customers through its nationwide network of lenders. Member FDIC, Equal Housing Lender.

Please visit our website at www.LocalFirstBank.com for more information.

First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Caution about Forward-Looking Statements: This press release 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. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other words or phrases concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company’s customers, the Company’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K available at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements. The Company is also not responsible for changes made to this press release by wire services, internet services or other media.

Non-GAAP Measures

In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles (“GAAP”). Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance. Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted D-EPS.

8


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED INCOME STATEMENT
For the Three Months EndedFor the Six Months Ended
($ in thousands, except per share data - unaudited)June 30, 2025March 31, 2025June 30, 2024June 30, 2025June 30, 2024
Interest income
Interest and fees on loans$112,931 $110,533 $110,472 $223,464 $220,270 
Interest on investment securities:
Taxable interest income16,857 15,524 11,291 32,381 24,019 
Tax-exempt interest income1,116 1,116 1,117 2,232 2,234 
Other, principally overnight investments5,837 5,487 5,942 11,324 8,913 
Total interest income136,741 132,660 128,822 269,401 255,436 
Interest expense
Interest on deposits38,405 38,119 44,744 76,524 83,879 
Interest on borrowings1,660 1,658 2,963 3,318 11,168 
Total interest expense40,065 39,777 47,707 79,842 95,047 
Net interest income96,676 92,883 81,115 189,559 160,389 
Provision for credit losses2,212 1,116 541 3,328 1,741 
Net interest income after provision for credit losses94,464 91,767 80,574 186,231 158,648 
Noninterest income
Service charges on deposit accounts3,976 3,767 4,139 7,743 8,007 
Other service charges and fees6,595 5,883 5,314 12,478 10,884 
Presold mortgage loan fees and gains on sale315 450 588 765 926 
Commissions from sales of financial products1,388 1,408 1,377 2,796 2,697 
SBA loan sale gains151 52 1,336 203 2,231 
Bank-owned life insurance income1,221 1,228 1,179 2,449 2,343 
Securities losses, net— — (186)— (1,161)
Other Income, net695 114 854 809 1,570 
Total noninterest income14,341 12,902 14,601 27,243 27,497 
Noninterest expenses
Salaries, incentives and commissions expense29,005 28,661 27,809 57,666 55,451 
Employee benefit expense6,187 6,095 6,703 12,282 12,972 
Total personnel expense35,192 34,756 34,512 69,948 68,423 
Occupancy and equipment expense5,195 5,192 4,877 10,387 10,952 
Intangibles amortization expense1,468 1,516 1,669 2,984 3,428 
Other operating expenses17,128 16,429 17,233 33,557 34,675 
Total noninterest expenses58,983 57,893 58,291 116,876 117,478 
Income before income taxes49,822 46,776 36,884 96,598 68,667 
Income tax expense11,256 10,370 8,172 21,626 14,683 
Net income$38,566 $36,406 $28,712 $74,972 $53,984 
Earnings per common share:
Basic$0.93 $0.88 $0.70 $1.81 $1.31 
Diluted0.93 0.88 0.70 1.81 1.31 
9


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
First Bancorp and Subsidiaries
Financial Summary
CONSOLIDATED BALANCE SHEETS
($ in thousands - unaudited)June 30,
2025		March 31,
2025		June 30,
2024
Assets
Cash and due from banks, noninterest-bearing$139,486 $149,781 $90,468 
Due from banks, interest-bearing571,800 622,660 517,944 
Total cash and cash equivalents711,286 772,441 608,412 
Securities available for sale2,144,831 2,064,516 1,867,211 
Securities held to maturity516,405 518,265 523,600 
Presold mortgages and SBA loans held for sale8,928 5,166 7,247 
Loans8,225,650 8,103,033 8,069,848 
Allowance for credit losses on loans(120,545)(120,631)(110,058)
Net loans8,105,105 7,982,402 7,959,790 
Premises and equipment, net141,661 141,954 147,110 
Accrued interest receivable36,681 35,452 35,605 
Goodwill478,750 478,750 478,750 
Other intangible assets, net19,920 21,388 26,080 
Bank-owned life insurance190,817 189,597 186,031 
Other assets253,881 226,314 220,969 
Total assets$12,608,265 $12,436,245 $12,060,805 
Liabilities
Deposits:
Noninterest-bearing deposits$3,542,626 $3,476,786 $3,339,678 
Interest-bearing deposits7,287,754 7,267,873 7,148,151 
Total deposits10,830,380 10,744,659 10,487,829 
Borrowings92,237 92,055 91,513 
Accrued interest payable4,340 4,935 5,728 
Other liabilities125,128 86,420 71,393 
Total liabilities11,052,085 10,928,069 10,656,463 
Shareholders’ equity
Common stock 973,041 971,174 967,239 
Retained earnings812,657 783,630 752,294 
Stock in rabbi trust assumed in acquisition(869)(1,166)(1,139)
Rabbi trust obligation869 1,166 1,139 
Accumulated other comprehensive loss(229,518)(246,628)(315,191)
Total shareholders’ equity1,556,180 1,508,176 1,404,342 
Total liabilities and shareholders’ equity$12,608,265 $12,436,245 $12,060,805 
10


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
First Bancorp and Subsidiaries
Financial Summary
TREND INFORMATION
For the Three Months Ended
June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
PERFORMANCE RATIOS (annualized)
Return on average assets (1)
1.24 %1.21 %0.12 %0.61 %0.96 %
Return on average common equity (2)
10.11 %10.06 %0.96 %5.14 %8.38 %
Return on average tangible common equity (3)
15.25 %15.54 %1.93 %8.30 %13.60 %
COMMON SHARE DATA
Cash dividends declared - common$0.23 $0.22 $0.22 $0.22 $0.22 
Book value per common share$37.53 $36.46 $34.96 $35.74 $34.10 
Tangible book value per share (4)
$25.82 $24.69 $23.17 $23.91 $22.19 
Common shares outstanding at end of period41,468,098 41,368,828 41,347,418 41,340,099 41,187,943 
Weighted average shares outstanding - diluted41,441,393 41,406,525 41,422,973 41,366,743 41,262,091 
CAPITAL INFORMATION (preliminary for current quarter)
Tangible common equity to tangible assets (5)
8.83 %8.55 %8.22 %8.47 %7.90 %
Common equity tier I capital ratio14.62 %14.52 %14.35 %14.37 %13.99 %
Total risk-based capital ratio16.87 %16.80 %16.63 %16.65 %16.24 %
(1) Calculated by dividing annualized net income by average assets.
(2) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity. See Appendix A for the components of the calculation.
(3) Return on average tangible common equity is a non-GAAP financial measure. See Appendix A for the components of the calculation and the reconciliation of average common equity to average TCE.
(4) Tangible book value per share is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.
(5) Tangible common equity ratio is a non-GAAP financial measure. See Appendix B for a reconciliation of common equity to tangible common equity and Appendix D for the resulting calculation.
For the Three Months Ended
INCOME STATEMENT
($ in thousands except per share data)
June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
Net interest income$96,676 $92,883 $88,841 $83,043 $81,115 
Provision for credit losses2,212 1,116 507 14,200 541 
Noninterest income14,341 12,902 (23,177)13,579 14,601 
Noninterest expense58,983 57,893 58,279 59,850 58,291 
Income before income taxes49,822 46,776 6,878 22,572 36,884 
Income tax expense11,256 10,370 3,327 3,892 8,172 
Net income 38,566 36,406 3,551 18,680 28,712 
Earnings per common share - diluted$0.93 $0.88 $0.08 $0.45 $0.70 
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed assuming the expected tax rate and is reduced by the related nondeductible portion of interest expense.
11


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS
For the Three Months Ended
June 30, 2025March 31, 2025June 30, 2024
($ in thousands)Average
Volume		Interest
Earned
or Paid		Average
Rate		Average
Volume		Interest
Earned
or Paid		Average
Rate		Average
Volume		Interest
Earned
or Paid		Average
Rate
Assets
Loans (1) (2)$8,187,662 $112,931 5.53 %$8,107,394 $110,533 5.52 %$8,070,815 $110,472 5.50 %
Taxable securities2,697,338 16,857 2.50 %2,629,066 15,524 2.36 %2,591,617 11,291 1.74 %
Non-taxable securities287,848 1,116 1.55 %288,905 1,116 1.55 %292,045 1,117 1.53 %
Short-term investments, primarily interest-bearing cash505,912 5,837 4.63 %503,377 5,487 4.42 %507,635 5,942 4.71 %
Total interest-earning assets11,678,760 136,741 4.69 %11,528,742 132,660 4.65 %11,462,112 128,822 4.51 %
Cash and due from banks153,074 133,756 84,674 
Premises and equipment142,090 143,064 149,643 
Other assets484,448 421,248 358,852 
Total assets$12,458,372 $12,226,810 $12,055,281 
Liabilities
Interest-bearing checking$1,434,559 $2,426 0.68 %$1,431,556 $2,497 0.71 %$1,397,367 $2,424 0.70 %
Money market deposits4,358,877 29,947 2.76 %4,337,560 29,180 2.73 %4,004,175 32,411 3.26 %
Savings deposits538,843 252 0.19 %539,104 240 0.18 %570,283 317 0.22 %
Other time deposits534,242 3,088 2.32 %558,648 3,353 2.43 %738,290 6,053 3.30 %
Time deposits >$250,000345,916 2,692 3.12 %352,174 2,849 3.28 %371,471 3,539 3.83 %
Total interest-bearing deposits7,212,437 38,405 2.14 %7,219,042 38,119 2.14 %7,081,586 44,744 2.54 %
Borrowings92,199 1,660 7.22 %91,960 1,658 7.31 %167,976 2,963 7.09 %
Total interest-bearing liabilities7,304,636 40,065 2.20 %7,311,002 39,777 2.21 %7,249,562 47,707 2.65 %
Noninterest-bearing checking3,522,117 3,375,098 3,350,723 
Other liabilities101,069 72,839 76,713 
Shareholders’ equity1,530,550 1,467,871 1,378,283 
Total liabilities and shareholders’ equity$12,458,372 $12,226,810 $12,055,281 
Net yield on interest-earning assets and net interest income$96,676 3.32 %$92,883 3.25 %$81,115 2.84 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)$96,887 3.32 %$93,320 3.27 %$81,847 2.87 %
Interest rate spread2.49 %2.44 %1.86 %
Average prime rate7.50 %7.50 %8.50 %
(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(296,000), $(294,000) and $(414,000) for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2)   Includes accretion of discount on acquired loans of $1.5 million, $1.8 million and $2.3 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)   Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

12


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
First Bancorp and Subsidiaries
Financial Summary
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE
For the Six Months Ended
June 30, 2025June 30, 2024
($ in thousands)Average
Volume		Interest
Earned
or Paid		Average
Rate		Average
Volume		Interest
Earned
or Paid		Average
Rate
Assets
Loans (1) (2)$8,147,750 $223,464 5.52 %$8,087,101 $220,270 5.47 %
Taxable securities2,663,390 32,381 2.43 %2,703,441 24,019 1.78 %
Non-taxable securities288,373 2,232 1.55 %292,622 2,234 1.53 %
Short-term investments, primarily interest-bearing cash504,652 11,324 4.52 %392,790 8,913 4.56 %
Total interest-earning assets11,604,165 269,401 4.67 %11,475,954 255,436 4.47 %
Cash and due from banks143,469 87,754 
Premises and equipment142,574 150,401 
Other assets453,023 369,132 
Total assets$12,343,231 $12,083,241 
Liabilities
Interest-bearing checking$1,433,066 $4,923 0.69 %$1,400,425 $4,784 0.69 %
Money market deposits4,348,277 59,126 2.74 %3,854,453 60,223 3.14 %
Savings deposits538,973 493 0.18 %581,339 625 0.22 %
Other time deposits546,377 6,441 2.38 %723,904 11,509 3.20 %
Time deposits >$250,000349,028 5,541 3.20 %363,640 6,738 3.73 %
Total interest-bearing deposits7,215,721 76,524 2.14 %6,923,761 83,879 2.44 %
Borrowings92,081 3,318 7.27 %372,987 11,168 6.02 %
Total interest-bearing liabilities7,307,802 79,842 2.20 %7,296,748 95,047 2.62 %
Noninterest-bearing checking3,449,013 3,331,811 
Other liabilities87,032 77,795 
Shareholders’ equity1,499,384 1,376,887 
Total liabilities and shareholders’ equity$12,343,231 $12,083,241 
Net yield on interest-earning assets and net interest income$189,559 3.29 %$160,389 2.81 %
Net yield on interest-earning assets and net interest income – tax-equivalent (3)$190,207 3.30 %$161,852 2.83 %
Interest rate spread2.47 %1.85 %
Average prime rate7.50 %8.50 %
(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and net deferred loan (cost)/fee amortization in the amounts of $(590,000) and $(886,000) for the six months ended June 30, 2025 and June 30, 2024, respectively.
(2)   Includes accretion of discount on acquired loans of $3.2 million and $4.7 million for the six months ended June 30, 2025 and June 30, 2024, respectively.
(3)   Includes tax-equivalent adjustments to reflect the tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.
13


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
Reconciliation of non-GAAP measures

APPENDIX A: Calculation of Return on TCE
For the Three Months Ended
($ in thousands)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
Net Income
$38,566 $36,406 $3,551 $18,680 $28,712 
Intangible asset amortization, net of taxes1,123 1,159 1,195 1,240 1,283 
Tangible Net income$39,689 $37,565 $4,746 $19,920 $29,995 
Average common equity$1,530,550 $1,467,871 $1,466,181 $1,445,029 $1,378,284 
Less: Average goodwill and other intangibles, net of related taxes(486,393)(487,395)(488,624)(489,987)(491,318)
Average tangible common equity $1,044,157 $980,476 $977,557 $955,042 $886,966 
Return on average common equity10.11 %10.06 %0.96 %5.14 %8.38 %
Return on average tangible common equity15.25 %15.54 %1.93 %8.30 %13.60 %

APPENDIX B: Reconciliation of Common Equity to TCE
For the Three Months Ended
($ in thousands)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
Total shareholders' common equity
$1,556,180 $1,508,176 $1,445,611 $1,477,525 $1,404,342 
Less: Goodwill and other intangibles, net of related taxes(485,657)(486,749)(487,660)(489,139)(490,439)
Tangible common equity$1,070,523 $1,021,427 $957,951 $988,386 $913,903 

APPENDIX C: Tangible Book Value Per Share
For the Three Months Ended
($ in thousands except per share data)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
Tangible common equity (Appendix B)
$1,070,523 $1,021,427 $957,951 $988,386 $913,903 
Common shares outstanding
41,468,098 41,368,828 41,347,418 41,340,099 41,187,943 
Tangible book value per common share$25.82 $24.69 $23.17 $23.91 $22.19 

APPENDIX D: TCE Ratio
For the Three Months Ended
($ in thousands)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024
Tangible common equity (Appendix B)
$1,070,523 $1,021,427 $957,951 $988,386 $913,903 
Total assets
12,608,265 12,436,245 12,147,694 12,153,430 12,060,805 
Less: Goodwill and other intangibles, net of related taxes(485,657)(486,749)(487,660)(489,139)(490,439)
Tangible assets ("TA")$12,122,608 $11,949,496 $11,660,034 $11,664,291 $11,570,366 
TCE to TA ratio8.83 %8.55 %8.22 %8.47 %7.90 %

14


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
Reconciliation of non-GAAP measures, continued
APPENDIX E: Adjusted D-EPS
For the Three Months Ended
($ in thousands)June 30, 2025March 31, 2025June 30, 2024
Net income$38,566 $36,406 $28,712 
Impact of Hurricane Helene
Provision for (benefit from) credit losses(3,500)(2,000)— 
Total(3,500)(2,000)— 
Less, tax impact812 464 — 
After-tax impact of Hurricane Helene(2,688)(1,536)— 
Adjusted net income$35,878 $34,870 $28,712 
Weighted average shares outstanding - diluted41,441,393 41,406,525 41,262,091 
D-EPS$0.93 $0.88 $0.70 
Adjusted D-EPS$0.87 $0.84 $0.70 

15


fb_logoxwithoutmarkxbancora.gif
Second Quarter 2025 Results
Supplemental information
APPENDIX F: Loan purchase discount accretion and its impact on the Company's NIM

Included in interest income for the second quarter of 2025 was loan purchase accounting discount accretion of $1.5 million compared to $1.8 million for the linked quarter and $2.3 million for the like quarter, with the activity related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of 4 basis points, 5 basis points and 6 basis points, respectively, on the Company's NIM and NIM-T/E in the second quarter of 2025, the linked quarter and the like quarter.

The following table presents the impact to net interest income of the purchase accounting adjustments for each period.
For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS
($ in thousands)
June 30, 2025March 31, 2025June 30, 2024
Interest income - increased by accretion of loan discount on acquired loans$1,457 $1,789 $2,303 
Total interest income impact1,457 1,789 2,303 
Interest expense - increased by discount accretion on deposits(102)(103)(224)
Interest expense - increased by discount accretion on borrowings(194)(191)(190)
Total net interest expense impact(296)(294)(414)
Total impact on net interest income$1,161 $1,495 $1,889 
16