#United States #Financial Services #earnings report #First Bancorp #Southern Pines, North Carolina

First Bancorp Reports Strong Q3 2026 Results

First Bancorp, the parent company of First Bank, has released its third quarter earnings for 2026, revealing impressive financial growth and operational performance. The company reported net income of $51.3 million or $1.24 earnings per share (D-EPS), marking a slight increase from $50.5 million or $1.22 D-EPS in the previous quarter and a substantial rise from $20.4 million or $0.49 D-EPS from the same quarter in the previous year.

Financial Highlights

The key financial metrics from the third quarter of 2026 illustrate First Bancorp's robust performance despite a competitive financial landscape:

• - Total Assets: Reached $13.2 billion, representing a 3.3% annualized increase compared to the prior quarter.
• - Net Interest Income: Grew to $114.8 million, up from $111.3 million in Q2 2026 and $102.5 million in Q3 2025.
• - Net Interest Margin (NIM): Improved to 3.75%, reflecting superior asset management and effective interest income strategies.

The company also noted total loans amounting to $9.1 billion as of September 30, 2026, indicating an upward shift of $116.2 million or 5.1% annualized increase in loan volume. This growth can be attributed to both enhanced loan origination volumes and a modest rise in loan yields.

Efficiency and Cost Management

First Bancorp managed to keep its efficiency ratio at 49.09%, slight improvement from 49.12% in the previous quarter and a significant decline from 66.92% one year ago. The company’s focus on operational efficiency has led to noninterest expenses totaling $64 million, which increased from $62.8 million in the previous quarter, primarily due to merger-related expenses associated with the upcoming acquisition of Carolina Bank.

Credit Quality

The provision for credit losses stood at $1.3 million, showcasing strong credit quality with an annualized net loan charge-off ratio of just 0.09%. The allowance for credit losses reduced to 1.36% of loans, reflecting improved economic conditions and asset quality that underpins the bank’s lending operations.

Outlook

Richard H. Moore, Chairman and CEO, expressed confidence in First Bancorp's ability to maintain its momentum: "First Bancorp delivered another strong quarter, reflecting disciplined balance sheet management, strong credit quality, loan growth, and continued operating efficiency. Our performance through the first nine months of 2026 demonstrates the strength of our franchise."
He added that they look forward to successfully integrating Carolina Bank into their operations in early 2027, which is expected to bolster their presence in South Carolina.

Conclusion

First Bancorp's Q3 results highlight the company's financial resilience and strategic growth initiatives. The commitment to improving net interest income, maintaining operational efficiency, and prudent management of credit quality positions First Bancorp favorably in the financial sector, particularly as it gears up for expansion through acquisitions. With a promising financial trajectory, stakeholders are optimistic about the upcoming quarters.