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First Bancorp Reports Financial Results for Q3 2025

On October 22, 2025, First Bancorp, the parent company of First Bank, announced its unaudited financial results for the third quarter of the year, ending September 30, 2025. The results reflect both significant growth and some operational challenges faced during the quarter.

Summary of Financial Performance

For the third quarter of 2025 (Q3-2025), the company reported a net income of $20.4 million, equating to earnings of $0.49 per diluted share. In comparison, the second quarter of 2025 saw a net income of $38.6 million or $0.93 per share, and the third quarter of 2024 yielded a net income of $18.7 million at $0.45 per share.

Adjusted for a significant securities loss of $27.9 million ($21.4 million after tax), the adjusted earnings per share (D-EPS) for Q3-2025 stood at $1.01, marking a notable improvement compared to its previous quarters.

Interest Income and Expenses

The bank generated $144.2 million in total interest income, up from $136.7 million in the previous quarter. This increase can be attributed to accelerated loan growth, with total loans reaching $8.4 billion, up by $193.6 million, or 9.3% on an annualized basis. The net interest income soared to $102.5 million, representing an increase of 6% from the linked quarter and 23.4% since the same period last year.

However, the interest expense also saw a rise, totaling $41.7 million, marginally increasing from $40.1 million in Q2-2025. Despite the rise in interest expenses, the net interest margin expanded to 3.46%, up by 14 basis points from the previous quarter.

Credit Loss Provisions

The bank recorded a provision for credit losses of $3.4 million, contrasting sharply with $14.2 million during the same quarter last year. This significant decrease hints at improving credit quality and effective management of potential risks. Furthermore, the company released $4 million from its reserves connected to Hurricane Helene, reflecting confidence in the stability of its loan portfolio in affected areas.

Noninterest Income and Expenses

First Bancorp grapples with noninterest income that fell to -$12.9 million, influenced largely by the $27.9 million securities loss. Excluding this impact, the noninterest income totaled $15 million, up by 4.8% from the linked quarter, indicating operational resilience.

Noninterest expenses reached $60.2 million, marking a slight increase from both previous quarters. The rise is primarily attributed to higher personnel expenses due to increased salaries and incentives to attract and retain talent.

A Solid Balance Sheet

As of September 30, 2025, total assets were approximately $12.8 billion, reflecting a growth of 4.5% from the previous quarter and 4.9% year-over-year. The bank continues to have a robust liquidity position with an on-balance sheet liquidity ratio of 18.2%. Notably, the bank's capital ratios remain strong, with a total risk-based capital ratio of 16.58% and tangible common equity to tangible assets ratio of 9.12%.

Looking Ahead

Richard H. Moore, Chairman and CEO of First Bancorp, remarked on their continued improvement in financial results throughout 2025, with promising loan growth and stringent expense management. The company aims to leverage its strengths and address challenges through prudent risk management and operational efficiency.

As First Bancorp moves forward, it remains committed to enhancing shareholder value and navigating the complexities of the current economic landscape. Investors can expect the company to drive performance with an emphasis on maintaining liquidity and managing credit risks effectively.

For further information, please visit First Bancorp's official website.