#United States #earnings report #Southern Pines #First Bancorp #Southern Pines, NC

First Bancorp Closes 2025 on a High Note

First Bancorp, the parent company of First Bank located in Southern Pines, North Carolina, recently announced its unaudited earnings for the fourth quarter and full year of 2025. The results demonstrate the company's improved financial health and strategic adaptations in a fluctuating market.

Financial Performance

In the fourth quarter of 2025, First Bancorp recorded a net income of $15.7 million, translating to $0.38 in diluted earnings per share (D-EPS). This performance marks a decline from the previous quarter's net income of $20.4 million or $0.49 D-EPS, but represents a significant increase from the same quarter in the previous year, where it earned just $3.6 million or $0.08 D-EPS. Adjusted for the impact of a $43.7 million securities loss, the adjusted net income was reported at $49.3 million with an adjusted D-EPS of $1.19.

Overall, for the twelve months ending December 31, 2025, total net income reached $111.0 million, equating to $2.68 per diluted common share, a notable increase from $76.2 million or $1.84 per diluted common share in 2024.

Loan Growth and Interest Income

The company saw accelerated loan growth during this period, with total loans amounting to $8.7 billion as of December 31, representing a 14.3% annualized increase. This robust growth was evident as loan yields rose to 5.58%, although it saw a slight decrease from the previous quarter. The net interest income for Q4 was $106.2 million, up by 3.6% from the third quarter, amounting to gains driven by effective management of deposit costs and an increase in loan yields.

Moreover, the company executed a significant securities loss-earnback transaction during November, which included the sale and purchase of securities that favorably affected their yield.

Operational Efficiency

Despite challenges, First Bancorp maintained a disciplined approach to expense management, with noninterest expenses coming in at $62.2 million for the fourth quarter. This represented a slight uptick compared to the linked quarter, yet it highlighted the company's ongoing commitment to controlling costs amidst expanding operations.

Additionally, the total cost of funds saw a reduction to 1.36%, reflecting successful strategies in managing interest expenses.

Market Positioning

As the financial landscape continues to evolve, First Bancorp's strategic initiatives have placed it in a strong position. The company reported average core deposits of $10.8 billion, which, although decreased slightly from the linked quarter, continue to form a significant foundation for operational stability. With noninterest-bearing deposits constituting 32% of total deposits, the bank showcases its solid funding structure, which mitigates risks associated with fluctuating interest rates.

First Bancorp's Chairman and CEO, Richard H. Moore, stated, "We are closing the year with solid momentum, supported by our strategy of enhancing margins, growing our loan portfolio prudently, and maintaining strong expense management. Our liquidity and capital positions continue to be robust, and we are optimistic as we head into 2026."

Conclusion

Overall, First Bancorp's fourth quarter results indicate a successful close to 2025, showcasing resilience and forward momentum. As the company prepares for the year ahead, the strategies implemented may continue to yield favorable results, solidifying its role in the banking industry and meeting the evolving needs of customers in both North and South Carolina. As of December 31, 2025, First Bancorp remains a key player in the regional banking sector, emphasizing customer service and financial solutions tailored to local markets.

By maintaining operational efficiency alongside determined growth, First Bancorp is well-positioned to navigate the challenges ahead and seize opportunities in the changing economic landscape of the financial services industry.