#United States #NASDAQ #Hurricane Helene #Southern Pines #First Bancorp

First Bancorp Reports Earnings Results for Q4 and Full Year 2024

On January 29, 2025, First Bancorp (NASDAQ: FBNC), the parent company of First Bank, released its unaudited financial results for the fourth quarter and full year ended December 31, 2024. This quarter has been challenging, marked by a significant drop in net income attributed to both the impacts of Hurricane Helene and substantial securities losses.

Summary of Financial Results

For the final quarter of 2024, First Bancorp reported a net income of $3.6 million, translating to a diluted earnings per share (EPS) of $0.08. This is a stark decline compared to the previous quarter's net income of $18.7 million ($0.45 EPS) and Q4 2023's impressive $29.7 million ($0.72 EPS). Furthermore, for the ongoing fiscal year, net income totaled $76.2 million, down from $104.1 million in the previous year, which equates to an annual diluted EPS decrease from $2.53 to $1.84.

The company cited a total impact of $13.4 million related to Hurricane Helene, which significantly influenced their financial standing. Additionally, First Bancorp's securities loss-earnback transaction had a profound effect, including a $36.8 million loss (approximately $28.2 million after tax). In light of these challenges, the adjusted net income for Q4 was reported at $31.7 million or an adjusted EPS of $0.76.

Strategic Moves

Despite these setbacks, First Bancorp's CEO Richard H. Moore expressed pride in the company’s resilience and service quality, emphasizing their focus on leveraging the recent interest rate cuts to maximize profitability going into 2025. The company is confident in its strategic plans designed to navigate through turbulent economic conditions, stating, "We look forward to seeing the benefit of our hard work and strategic balance sheet initiatives that should provide tailwinds for 2025."

Key Highlights from Q4 2024

• - Net Interest Margin Improvement: The tax-equivalent net interest margin (NIM) increased by 17 basis points to 3.07%, a positive trend from 2.90% in the linked quarter.
• - Loan Performance: Total loans rose to $8.1 billion with a growth of 4.03% for the quarter, although showing a year-over-year contraction of 0.68% as the company focused on increasing liquidity, the total loan yield slightly contracted to 5.47%.
• - Cost Management: Noninterest expenses decreased to $58.3 million, driven by reductions in personnel expenses, supporting First Bancorp's commitment to prudent management amidst falling earnings.

Yearly Overview

For the total year ending December 31, 2024, First Bancorp saw a decline in adjusted net income to $114.6 million from $104.1 million. The steady rise in adjusted EPS indicates the company's effort to sustain its growth trajectory despite opposing market forces.

The Road Ahead

Going forward, First Bancorp remains optimistic about enhancing shareholder value while dealing with previous challenges, like hurricane responses and fluctuating interest rates. With proactive measures set in place, they aim to optimize performance for a financially fruitful 2025.

In conclusion, while the fourth quarter results present challenges for First Bancorp, their strategic management and commitment to financial excellence signal a cautious but determined path forward amid a fluctuating economic landscape.