#United States #Southern Pines #First Bancorp #Q2 2025 #NASDAQ FBNC

First Bancorp's Financial Highlights for Q2 2025

First Bancorp, the parent company of First Bank, has released its financial results for the second quarter of 2025, indicating a robust performance overall. With net income amounting to $38.6 million, equivalent to earnings per diluted share of $0.93, the company has shown a marked improvement compared to both the previous quarter and the same period last year.

Key Financial Metrics

For Q2 2025, key highlights from the report include:

• - Total Interest Income: $136.7 million, reflecting substantial growth from $132.7 million in Q1 2025.
• - Net Interest Income: The company recorded a net interest income of $96.7 million, up from $92.9 million in Q1 2025 and significantly higher than $81.1 million in Q2 2024.
• - Provision for Credit Losses: Increased to $2.2 million from $1.1 million in the previous quarter, influenced by ongoing market conditions.
• - Noninterest Income: Reached $14.3 million, a notable increase from $12.9 million in Q1 2025.
• - Total Noninterest Expenses: Were reported at $59.0 million, a slight rise from $57.9 million in the previous quarter.
• - Effective Tax Rate: For Q2 2025, the effective tax rate stood at 22.6%.

Growth in Loans and Deposits

On the lending front, First Bancorp experienced significant growth with total loans amounting to $8.2 billion by the end of June 2025. This marked an increase of $122.6 million or an annualized growth rate of 6.07% from Q1 2025. A substantial portion of this loan growth is attributed to a diversified portfolio that includes commercial real estate loans, residential real estate, and consumer loans.

Moreover, the bank's deposit base also saw a healthy increase, recording a total of $10.8 billion, reflecting an annualized growth rate of 3.2%. Notably, noninterest-bearing deposits comprised 33% of total deposits, showcasing the bank's strong foundational capital position.

Strategic Management and Cost Control

Under the leadership of Richard H. Moore, Chairman and CEO, First Bancorp continues to prioritize efficient expense management. The company reported controlling noninterest expenses effectively, with a focus on reducing operating costs. The slight increase in noninterest expenses is manageable within the context of overall financial growth.

Moore expressed confidence in the bank's performance thus far in 2025, stating that the results stem from a combination of expanded net interest margins, disciplined expense management, and a keen understanding of market dynamics. He noted that the quarter-end liquidity ratio was approximately 20%, indicating a strong cash position to meet operational needs.

Enhancing Shareholder Value

In line with its impressive financial performance, First Bancorp announced an increase in its quarterly dividend to $0.23, reflecting a commitment to shareholder returns. This decision underscores the company's strong capital position and ongoing profitability.

Conclusion

First Bancorp's Q2 2025 financial results highlight the company's steady growth trajectory, driven by disciplined cost management, an expanding loan portfolio, and robust interest income. The bank's strategy aligns with current market conditions and builds a promising outlook for the remainder of the year. Stakeholders can remain assured that First Bancorp is well-positioned to navigate future challenges and capitalize on growth opportunities effectively.