SOUTHERN
PINES, N.C., April 24,
2024 /PRNewswire/ -- First Bancorp (the "Company")
(NASDAQ: FBNC), the parent company of First Bank, announced today
net income of $25.3 million, or
$0.61 per diluted common share, for
the three months ended March 31, 2024
compared to $29.7 million, or
$0.72 per diluted common share, for
the three months ended December 31,
2023 ("linked quarter") and $15.2
million, or $0.37 per diluted
common share, recorded in the first quarter of 2023.
Richard H. Moore, CEO and
Chairman of the Company, stated, "Your company continues to perform
well with increases in our liquidity and capital. We believe
that our balance sheet composition will continue to improve during
the year as we work towards reducing borrowings and high-cost
deposits while deploying funds to higher yielding assets. Our
credit quality is strong with low levels of nonperforming assets
and we have no significant exposure to office or hospitality
commercial real estate."
First Quarter 2024 Highlights
- Loans totaled $8.1 billion at
March 31, 2024, reflecting a
$73.6 million contraction for the
quarter, while year-over-year, loans grew $277.5 million.
- Noninterest-bearing demand accounts were 33% of total deposits
at March 31, 2024, which is
consistent with historical trends. Total deposits increased
$271.7 million during the first
quarter of 2024 consisting of market deposit growth of $88.3 million and new short-term brokered
deposits totaling $183.5
million.
- Total loan yield increased to 5.45%, up 23 basis points from
the first quarter of 2023, with accretion on purchased loans
contributing 15 basis points to loan yield.
- While deposit and borrowing rates increased during the quarter,
total cost of funds remained low at 1.79% for the quarter ended
March 31, 2024.
- The on-balance sheet liquidity ratio was 15.5% at March 31, 2024, up from 14.6% for the linked
quarter. Available off-balance sheet sources totaled $2.3 billion at March 31,
2024, resulting in a total liquidity ratio of 31.4%.
- Credit quality continued to be strong with a nonperforming
assets ("NPA") to total assets ratio of 0.39% as of March 31, 2024.
- Capital remained strong with a total common equity tier 1 ratio
of 13.50% (estimated) and a total risk-based capital ratio of
15.85% (estimated) as of March 31,
2024, both increasing from the linked quarter.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2024 was
$79.2 million compared to
$92.5 million recorded in the first
quarter of 2023, a decrease of 14.3%. Net interest income for
the first quarter of 2024 decreased 3.9% from the $82.5 million reported for the linked
quarter. The declines in net interest income were driven by
increases in cost of funds each period which more than offset the
increases in earning assets.
The Company's tax-equivalent net interest margin ("NIM")
(calculated by dividing tax-equivalent net interest income by
average earning assets) declined year-over-year with the first
quarter of 2024 reporting a tax-equivalent NIM of 2.80% compared to
3.31% for the first quarter of 2023. Increases in rates on
liabilities driven by current market rates and competition occurred
at a more rapid pace than the increase in yields on assets, which
resulted in the reduction in net interest income and NIM as
compared to the prior periods. While loan yields rose from 5.22%
for the first quarter of 2023 to 5.45% for the first quarter of
2024, the total cost of funds increased from 0.94% for the first
quarter of 2023 to 1.79% for the quarter ended March 31,
2024.
|
|
For the Three Months
Ended
|
YIELD
INFORMATION
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
Yield on
loans
|
|
5.45 %
|
|
5.39 %
|
|
5.22 %
|
Yield on
securities
|
|
1.79 %
|
|
1.76 %
|
|
1.78 %
|
Yield on other earning
assets
|
|
4.30 %
|
|
4.49 %
|
|
3.47 %
|
Yield on
total interest-earning assets
|
|
4.43 %
|
|
4.38 %
|
|
4.16 %
|
|
|
|
|
|
|
|
Rate on
interest-bearing deposits
|
|
2.33 %
|
|
2.14 %
|
|
1.19 %
|
Rate on other
interest-bearing liabilities
|
|
5.71 %
|
|
6.02 %
|
|
5.34 %
|
Rate on
total interest-bearing liabilities
|
|
2.59 %
|
|
2.43 %
|
|
1.46 %
|
Total cost of
funds
|
|
1.79 %
|
|
1.64 %
|
|
0.94 %
|
|
|
|
|
|
|
|
Net
interest margin (1)
|
|
2.77 %
|
|
2.85 %
|
|
3.28 %
|
Net
interest margin - tax-equivalent (2)
|
|
2.80 %
|
|
2.88 %
|
|
3.31 %
|
Average
prime rate
|
|
8.50 %
|
|
8.50 %
|
|
7.69 %
|
|
|
|
|
|
|
|
(1) Calculated by
dividing annualized net interest income by average earning assets
for the period.
|
|
(2) Calculated by
dividing annualized tax-equivalent net interest income by average
earning assets for the period. The tax-equivalent
amount reflects the tax benefit that the Company receives related
to its tax-exempt loans and securities, which carry interest rates
lower than similar taxable investments due to their tax-exempt
status. This amount has been computed assuming a 23% tax rate
and is reduced by the related nondeductible portion of interest
expense.
|
Included in interest income for the first quarter of 2024 was
total loan discount accretion of $2.9 million compared to $3.6 million for the first quarter of 2023,
with the decrease primarily related to the continued amortization
of the loan portfolio acquired from GrandSouth Bancorporation
("GrandSouth"). Loan discount accretion had an 10 basis
points positive impact on the Company's NIM in the first quarter of
2024 compared to accretion contributing 13 basis points to NIM for
the prior year first quarter.
The following table presents the impact to net interest income
of the purchase accounting adjustments for each period.
|
|
For the Three Months
Ended
|
NET INTEREST INCOME
PURCHASE ACCOUNTING ADJUSTMENTS
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
Interest income -
increased by accretion of loan discount on acquired
loans
|
|
$
2,437
|
|
2,464
|
|
3,118
|
Interest income -
increased by accretion of loan discount on retained
portions
of SBA loans
|
|
444
|
|
459
|
|
448
|
Total interest income
impact
|
|
2,881
|
|
2,923
|
|
3,566
|
Interest expense -
increased by discount accretion on deposits
|
|
(283)
|
|
(495)
|
|
(1,019)
|
Interest expense -
increased by discount accretion on borrowings
|
|
(189)
|
|
(207)
|
|
(82)
|
Total net interest
expense impact
|
|
(472)
|
|
(702)
|
|
(1,101)
|
Total impact on net interest
income
|
|
$
2,409
|
|
2,221
|
|
2,465
|
Provision for Credit Losses and Credit Quality
For the three months ended March 31,
2024 and March 31, 2023, the Company recorded
$1.2 million and $12.5 million in provision for credit
losses, respectively. The provision for the first quarter of
2023 was directly related to the initial provision for non-credit
deteriorated loans and unfunded loan commitments acquired from
GrandSouth. The provision for the first quarter of 2024 was
determined based on updated economic forecasts, which are a key
assumption in the CECL model and which indicated a continued
deterioration of the commercial real estate index, thus projecting
a higher allowance for credit losses balance, partially offset by
reductions in loan balances and the lower level of unfunded
commitments.
Asset quality remained strong with annualized net loan
charge-offs of 0.08% for the first quarter of 2024. Total
NPAs remained at a low level at $47.5 million at March 31, 2024, or
0.39% of total assets. This is compared to $31.1 million, or 0.25% of total assets, at
March 31, 2023 with the increase year-over-year being
attributable primarily to activity from acquired loan portfolios
and the SBA loan portfolio. The increase in nonaccrual loans
from the linked quarter was primarily related to several SBA loans,
all of which carry a guarantee from the SBA for a majority of the
balance.
The following table presents the summary of NPAs and asset
quality ratios for each period.
ASSET QUALITY
DATA
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
35,622
|
|
32,208
|
|
28,059
|
Modifications to
borrowers in financial distress
|
|
10,999
|
|
11,719
|
|
2,224
|
Total nonperforming
loans
|
|
46,621
|
|
43,927
|
|
30,283
|
Foreclosed real
estate
|
|
926
|
|
862
|
|
789
|
Total nonperforming
assets
|
|
$
47,547
|
|
44,789
|
|
31,072
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
Quarterly net
charge-offs to average loans - annualized
|
|
0.08 %
|
|
0.09 %
|
|
0.09 %
|
Nonperforming loans to
total loans
|
|
0.58 %
|
|
0.54 %
|
|
0.39 %
|
Nonperforming assets to
total assets
|
|
0.39 %
|
|
0.37 %
|
|
0.25 %
|
Allowance for credit
losses to total loans
|
|
1.36 %
|
|
1.35 %
|
|
1.36 %
|
Noninterest Income
Total noninterest income for the first quarter of 2024 was
$12.9 million, a 4.4% decrease
from the $13.5 million recorded
for the first quarter of 2023 and an 11.0% decrease from the linked
quarter. The lower noninterest income in the current quarter
was primarily driven by a $1.0 million loss on the call of a bond with
an unamortized premium balance. In addition, Other gains net,
decreased $0.8 million from the
linked quarter due to gains recorded on the disposal of property
recorded in the fourth quarter of 2023.
Noninterest Expenses
Noninterest expenses amounted to $59.2 million for the first quarter of 2024
compared to $56.4 million for
the linked quarter and $74.2 million for the first quarter of
2023. The $2.8 million, or
5.0%, increase in noninterest expense from the linked quarter was
driven by year end adjustments to the Company's pension plan
recorded in the fourth quarter of 2023 which resulted in reducing
expense in the linked quarter approximately $2.2 million during the period. In
addition, bonus accrual reductions were recorded in the fourth
quarter of 2023 lowering the total salary expense for the linked
quarter.
The primary contributors to the higher noninterest expense in
the first quarter of 2023 were merger and acquisition costs of
$12.2 million related to
the GrandSouth acquisition as well as overlapping expenses which
were eliminated upon core processing system conversion in
mid-March 2023.
Balance Sheet
Total assets at March 31, 2024 amounted to $12.1 billion, a decrease of $23.3 million, or 0.2%, from the linked
quarter and a contraction of $271.6
million, or 2.2%, from a year earlier. The decrease
from the linked quarter was primarily related to intentional
reductions in investment securities and loan balances, partially
offset by higher interest-bearing cash balances.
Quarterly average balances for key balance sheet accounts are
presented below.
|
|
For the Three Months
Ended
|
AVERAGE
BALANCES
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
Change
1Q24 vs 1Q23
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ 12,111,201
|
|
12,026,195
|
|
12,042,298
|
|
0.6 %
|
Investment securities,
at amortized cost
|
|
3,108,464
|
|
3,143,756
|
|
3,321,240
|
|
(6.4) %
|
Loans
|
|
8,103,387
|
|
8,087,450
|
|
7,728,424
|
|
4.9 %
|
Earning
assets
|
|
11,489,796
|
|
11,477,007
|
|
11,428,789
|
|
0.5 %
|
Deposits
|
|
10,078,835
|
|
10,131,094
|
|
10,216,908
|
|
(1.4) %
|
Interest-bearing
liabilities
|
|
7,343,934
|
|
7,204,165
|
|
6,866,646
|
|
7.0 %
|
Shareholders'
equity
|
|
1,375,490
|
|
1,280,812
|
|
1,273,435
|
|
8.0 %
|
Total investment securities were $2.6 billion at March 31, 2024, a
decrease of $108.9 million from
the linked quarter and a reduction of $216.0
million from March 31, 2023. The Company made no
purchases of investment securities during the first quarter of 2024
and continues to utilize cash flows from amortizing investments to
fund loan growth and fluctuations in deposits. Total
unrealized loss on available for sale investment securities was
$418.9 million at March 31,
2024.
Total loans amounted to $8.1 billion at March 31, 2024, a
decrease of $73.6 million from the
linked quarter and an increase of $277.5
million, or 3.6%, from March 31, 2023. As
presented below, our total loan portfolio mix has remained
consistent. As of March 31, 2024, there were no notable
concentrations in geographies or industries, including in office or
hospitality categories, which are included in the "commercial real
estate - non-owner occupied" category in the table below. The
Company's exposure to non-owner occupied office loans represented
approximately 5.7% of the total portfolio at March 31, 2024,
with the largest loan being $27.0
million and an average loan outstanding amount of
$1.3 million. Non-owner
occupied office loans are generally in non-metro markets and the 10
largest loans in this category represent less than 2% of the total
loan portfolio.
The following table presents the balance and portfolio
percentage by loan category for each period.
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
($ in
thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$ 872,623
|
|
11 %
|
|
905,862
|
|
11 %
|
|
885,032
|
|
11 %
|
Construction,
development & other land
loans
|
|
904,216
|
|
11 %
|
|
992,980
|
|
12 %
|
|
1,092,026
|
|
14 %
|
Commercial real estate
- owner occupied
|
|
1,238,759
|
|
15 %
|
|
1,259,022
|
|
16 %
|
|
1,200,744
|
|
16 %
|
Commercial real estate
- non-owner
occupied
|
|
2,524,221
|
|
31 %
|
|
2,528,060
|
|
31 %
|
|
2,429,941
|
|
31 %
|
Multi-family real
estate
|
|
457,142
|
|
6 %
|
|
421,376
|
|
5 %
|
|
395,573
|
|
5 %
|
Residential 1-4 family
real estate
|
|
1,684,173
|
|
21 %
|
|
1,639,469
|
|
20 %
|
|
1,386,580
|
|
18 %
|
Home equity loans/lines
of credit
|
|
328,466
|
|
4 %
|
|
335,068
|
|
4 %
|
|
342,287
|
|
4 %
|
Consumer
loans
|
|
66,666
|
|
1 %
|
|
68,443
|
|
1 %
|
|
68,056
|
|
1 %
|
Loans,
gross
|
|
8,076,266
|
|
100 %
|
|
8,150,280
|
|
100 %
|
|
7,800,239
|
|
100 %
|
Unamortized net
deferred loan fees
|
|
240
|
|
|
|
(178)
|
|
|
|
(1,276)
|
|
|
Total loans
|
|
$
8,076,506
|
|
|
|
8,150,102
|
|
|
|
7,798,963
|
|
|
Total deposits were $10.3 billion at March 31, 2024, an
increase of $271.7 million, or
2.7%, from the linked quarter and a decrease of $69.3 million, or 0.7%, from March 31,
2023. The year-to-date deposit growth is comprised of organic
growth from market deposits of $88.3
million combined with additional short-term brokered
deposits totaling $183.5 million.
The Company has a diversified and granular deposit base which
has remained a stable source of funding with noninterest-bearing
deposits comprising 33% of total deposits at March 31, 2024. Our deposit mix has
remained consistent historically and has not changed significantly,
with the exception of some shift to money market accounts, as
presented in the table below.
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
($ in
thousands)
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
checking accounts
|
|
$
3,362,265
|
|
33 %
|
|
3,379,876
|
|
34 %
|
|
3,763,637
|
|
36 %
|
Interest-bearing
checking accounts
|
|
1,401,724
|
|
13 %
|
|
1,411,142
|
|
14 %
|
|
1,526,333
|
|
15 %
|
Money market
accounts
|
|
3,787,323
|
|
37 %
|
|
3,653,506
|
|
36 %
|
|
3,126,571
|
|
30 %
|
Savings
accounts
|
|
584,901
|
|
6 %
|
|
608,380
|
|
6 %
|
|
705,669
|
|
7 %
|
Other time
deposits
|
|
607,359
|
|
6 %
|
|
610,887
|
|
6 %
|
|
624,444
|
|
6 %
|
Time deposits
>$250,000
|
|
363,687
|
|
3 %
|
|
355,209
|
|
4 %
|
|
342,447
|
|
3 %
|
Total market
deposits
|
|
10,107,259
|
|
98 %
|
|
10,019,000
|
|
100 %
|
|
10,089,101
|
|
97 %
|
Brokered
deposits
|
|
196,052
|
|
2 %
|
|
12,599
|
|
— %
|
|
283,497
|
|
3 %
|
Total
deposits
|
|
$ 10,303,311
|
|
100 %
|
|
10,031,599
|
|
100 %
|
|
10,372,598
|
|
100 %
|
As of March 31, 2024, the estimated insured deposits
totaled $6.4 billion or 61.8% of
total deposits. In addition, there were collateralized
deposits at that date of $757.0
million such that approximately 69.2% of our total deposits
were insured or collateralized at the current quarter end.
Capital
The Company remains well-capitalized by all regulatory
standards, with an estimated total risk-based capital ratio at
March 31, 2024 of 15.85%, up from the linked quarter ratio of
15.54% and 14.88% reported at March 31, 2023. The
increase in risk-based capital ratio is due in part to the shift in
the balance sheet with the reduction in loans being more that
offset by higher cash balances which carry a lower
risk-weighting.
The Company has elected to exclude accumulated other
comprehensive income ("AOCI") related primarily to available for
sale securities from common equity tier 1 capital. AOCI is
included in the Company's tangible common equity ("TCE") to
tangible assets ratio (a non-GAAP financial measure) which was
7.48% at March 31, 2024, an increase of 6 basis points from
the linked quarter and an increase of 88 basis points from
March 31, 2023. The increases in TCE for the current
quarter and year-over-year were driven by earnings and improvements
in the level of unrealized losses on the available for sale
investment portfolio for the period. Refer to Appendix B for
a reconciliation of common equity to TCE and Appendix D for a
calculations of the TCE ratio.
CAPITAL
RATIOS
|
|
March 31, 2024
(estimated)
|
|
December 31,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (non-GAAP)
|
|
7.48 %
|
|
7.42 %
|
|
6.60 %
|
Common equity tier I
capital ratio
|
|
13.50 %
|
|
13.20 %
|
|
12.53 %
|
Tier I leverage
ratio
|
|
10.99 %
|
|
10.91 %
|
|
10.28 %
|
Tier I risk-based
capital ratio
|
|
14.29 %
|
|
13.99 %
|
|
13.32 %
|
Total risk-based
capital ratio
|
|
15.85 %
|
|
15.54 %
|
|
14.88 %
|
Liquidity
Liquidity is evaluated as both on-balance sheet (primarily cash
and cash-equivalents, unpledged securities, and other marketable
assets) and off-balance sheet (readily available lines of credit or
other funding sources). The Company continues to manage
liquidity sources, including unused lines of credit, at levels
believed to be adequate to meet its operating needs for the
foreseeable future.
The Company's on-balance sheet liquidity ratio (net liquid
assets as a percent of net liabilities) at March 31, 2024 was
15.5%. In addition, the Company had approximately
$2.3 billion in available lines of
credit at that date resulting in a total liquidity ratio of
31.4%.
Subsequent to quarter end, the Company has reduced short-term
borrowings from liquidity resulting from increases in core
deposits. In addition, we have initiated the sale of select
investment securities from the available for sale portfolio in
order to restructure the investment portfolio and to generate
additional liquidity to pay off wholesale funding and invest
into higher earning assets. We anticipate beneficial results to our
net interest income upon completion of the
strategy.
About First Bancorp
First Bancorp is a bank holding company headquartered in
Southern Pines, North Carolina,
with total assets of $12.1 billion. Its principal activity is the
ownership and operation of First Bank, a state-chartered community
bank that operates 118 branches in North
Carolina and South Carolina. First Bank also provides
SBA loans to customers through its nationwide network of lenders -
for more information on First Bank's SBA lending capabilities,
please visit www.firstbanksba.com. First Bancorp's common
stock is traded on The NASDAQ Global Select Market under the symbol
"FBNC."
Please visit our website at www.LocalFirstBank.com.
Caution about Forward-Looking Statements: This press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995, which statements are
inherently subject to risks and uncertainties.
Forward-looking statements are statements that include projections,
predictions, expectations or beliefs about future events or results
or otherwise are not statements of historical fact. Such
statements are often characterized by the use of qualifying words
(and their derivatives) such as "expect," "believe," "estimate,"
"plan," "project," "anticipate," or other words or phrases
concerning opinions or judgments of the Company and its management
about future events. Factors that could influence the
accuracy of such forward-looking statements include, but are not
limited to, the financial success or changing strategies of the
Company's customers, the Company's level of success in integrating
acquisitions, actions of government regulators, the level of market
interest rates, and general economic conditions. For
additional information about the factors that could affect the
matters discussed in this paragraph, see the "Risk Factors" section
of the Company's most recent Annual Report on Form 10-K available
at www.sec.gov. Forward-looking statements speak only as of
the date they are made, and the Company undertakes no obligation to
update or revise forward-looking statements. The Company is
also not responsible for changes made to this press release by wire
services, internet services or other media.
First Bancorp and
Subsidiaries
Financial
Summary
|
|
CONSOLIDATED INCOME
STATEMENT
|
|
|
|
For the Three Months
Ended
|
($ in thousands,
except per share data - unaudited)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
Interest
income
|
|
|
|
|
|
|
Interest
and fees on loans
|
|
$
109,756
|
|
109,811
|
|
99,380
|
Interest
on investment securities
|
|
13,845
|
|
13,978
|
|
14,546
|
Other
interest income
|
|
2,971
|
|
2,784
|
|
3,248
|
Total interest
income
|
|
126,572
|
|
126,573
|
|
117,174
|
Interest
expense
|
|
|
|
|
|
|
Interest
on deposits
|
|
39,135
|
|
35,979
|
|
18,918
|
Interest
on borrowings
|
|
8,205
|
|
8,110
|
|
5,770
|
Total interest
expense
|
|
47,340
|
|
44,089
|
|
24,688
|
Net
interest income
|
|
79,232
|
|
82,484
|
|
92,486
|
Provision for credit
losses
|
|
1,200
|
|
2,950
|
|
12,502
|
Net
interest income after provision for credit losses
|
|
78,032
|
|
79,534
|
|
79,984
|
Noninterest
income
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
3,868
|
|
4,413
|
|
3,894
|
Other
service charges, commissions, and fees
|
|
5,612
|
|
4,968
|
|
5,920
|
Presold
mortgage loan fees and gains on sale
|
|
338
|
|
325
|
|
406
|
Commissions from sales of financial products
|
|
1,320
|
|
1,577
|
|
1,306
|
SBA
consulting fees
|
|
257
|
|
395
|
|
521
|
SBA loan
sale gains
|
|
895
|
|
437
|
|
255
|
Bank-owned
life insurance income
|
|
1,164
|
|
1,134
|
|
1,046
|
Securities
losses, net
|
|
(975)
|
|
—
|
|
—
|
Other
gains, net
|
|
459
|
|
1,293
|
|
188
|
Total noninterest
income
|
|
12,938
|
|
14,542
|
|
13,536
|
Noninterest
expenses
|
|
|
|
|
|
|
Salaries
expense
|
|
27,642
|
|
26,985
|
|
29,321
|
Employee
benefit expense
|
|
6,269
|
|
6,377
|
|
6,393
|
Occupancy
and equipment related expense
|
|
5,588
|
|
5,948
|
|
5,067
|
Merger and
acquisition expenses
|
|
—
|
|
189
|
|
12,182
|
Intangibles amortization expense
|
|
1,759
|
|
1,856
|
|
2,145
|
Other
operating expenses
|
|
17,929
|
|
15,031
|
|
19,067
|
Total noninterest
expenses
|
|
59,187
|
|
56,386
|
|
74,175
|
Income before income
taxes
|
|
31,783
|
|
37,690
|
|
19,345
|
Income tax
expense
|
|
6,511
|
|
8,016
|
|
4,184
|
Net income
|
|
$
25,272
|
|
29,674
|
|
15,161
|
|
|
|
|
|
|
|
Earnings per common
share - diluted
|
|
$
0.61
|
|
0.72
|
|
0.37
|
First Bancorp and
Subsidiaries
Financial
Summary
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
($ in thousands -
unaudited)
|
|
At March 31,
2024
|
|
At December
31,
2023
|
|
At March 31,
2023
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
87,181
|
|
100,891
|
|
102,691
|
Interest-bearing
deposits with banks
|
|
266,661
|
|
136,964
|
|
610,691
|
Total cash and cash
equivalents
|
|
353,842
|
|
237,855
|
|
713,382
|
|
|
|
|
|
|
|
Investment
securities
|
|
2,614,110
|
|
2,723,057
|
|
2,830,060
|
Presold mortgages and
SBA loans held for sale
|
|
6,703
|
|
2,667
|
|
5,884
|
|
|
|
|
|
|
|
Loans
|
|
8,076,506
|
|
8,150,102
|
|
7,798,963
|
Allowance for credit
losses on loans
|
|
(110,067)
|
|
(109,853)
|
|
(106,396)
|
Net loans
|
|
7,966,439
|
|
8,040,249
|
|
7,692,567
|
|
|
|
|
|
|
|
Premises and
equipment
|
|
150,546
|
|
150,957
|
|
152,790
|
Operating right-of-use
lease assets
|
|
16,551
|
|
17,063
|
|
18,898
|
Goodwill and other
intangible assets
|
|
509,636
|
|
511,608
|
|
518,012
|
Bank-owned life
insurance
|
|
185,061
|
|
183,897
|
|
180,730
|
Other assets
|
|
288,709
|
|
247,589
|
|
250,826
|
Total assets
|
|
$ 12,091,597
|
|
12,114,942
|
|
12,363,149
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing checking
accounts
|
|
$
3,362,265
|
|
3,379,876
|
|
3,763,637
|
Interest-bearing deposit
accounts
|
|
6,941,046
|
|
6,651,723
|
|
6,608,961
|
Total deposits
|
|
10,303,311
|
|
10,031,599
|
|
10,372,598
|
|
|
|
|
|
|
|
Borrowings
|
|
332,335
|
|
630,158
|
|
606,481
|
Operating lease
liabilities
|
|
17,343
|
|
17,833
|
|
19,638
|
Other
liabilities
|
|
62,509
|
|
62,972
|
|
64,471
|
Total liabilities
|
|
10,715,498
|
|
10,742,562
|
|
11,063,188
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common stock
|
|
965,429
|
|
963,990
|
|
959,422
|
Retained
earnings
|
|
732,643
|
|
716,420
|
|
654,573
|
Stock in rabbi trust
assumed in acquisition
|
|
(1,396)
|
|
(1,385)
|
|
(1,608)
|
Rabbi trust
obligation
|
|
1,396
|
|
1,385
|
|
1,608
|
Accumulated other
comprehensive loss
|
|
(321,973)
|
|
(308,030)
|
|
(314,034)
|
Total shareholders'
equity
|
|
1,376,099
|
|
1,372,380
|
|
1,299,961
|
Total liabilities and
shareholders' equity
|
|
$ 12,091,597
|
|
12,114,942
|
|
12,363,149
|
First Bancorp and
Subsidiaries
Financial
Summary
|
|
TREND
INFORMATION
|
|
|
|
For the Three Months
Ended
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS (annualized)
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
0.84 %
|
|
0.98 %
|
|
0.99 %
|
|
0.98 %
|
|
0.51 %
|
Return on average
common equity (2)
|
|
7.39 %
|
|
9.19 %
|
|
9.10 %
|
|
8.97 %
|
|
4.83 %
|
Return on average
tangible common equity (3)
|
|
11.76 %
|
|
15.33 %
|
|
15.05 %
|
|
14.79 %
|
|
8.16 %
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
- common
|
|
$
0.22
|
|
0.22
|
|
0.22
|
|
0.22
|
|
0.22
|
Book value per common
share
|
|
$
33.44
|
|
33.38
|
|
30.61
|
|
31.59
|
|
31.72
|
Tangible book value per
share (4)
|
|
$
21.05
|
|
20.94
|
|
18.11
|
|
19.03
|
|
19.08
|
Common shares
outstanding at end of period
|
|
41,156,286
|
|
41,109,987
|
|
40,085,498
|
|
41,082,678
|
|
40,986,990
|
Weighted average shares
outstanding - diluted
|
|
41,249,636
|
|
41,207,945
|
|
41,199,058
|
|
41,129,100
|
|
41,112,692
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL INFORMATION
(estimates for current quarter)
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (5)
|
|
7.48 %
|
|
7.42 %
|
|
6.49 %
|
|
6.79 %
|
|
6.60 %
|
Common equity tier I
capital ratio
|
|
13.50 %
|
|
13.20 %
|
|
12.93 %
|
|
12.75 %
|
|
12.53 %
|
Total risk-based
capital ratio
|
|
15.85 %
|
|
15.54 %
|
|
15.26 %
|
|
15.09 %
|
|
14.88 %
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated by
dividing annualized net income by average assets.
|
(2) Calculated by
dividing annualized net income by average common equity.
|
(3) Return on
average tangible common equity is a non-GAAP financial
measure. See Appendix A for components of the calculation and
the reconciliation of average common equity to average
TCE.
|
(4) Tangible book
value per share is a non-GAAP financial measure. See Appendix
B for a reconciliation of common equity to tangible common equity
and Appendix C for the resulting calculation.
|
(5) Tangible
common equity ratio is a non-GAAP financial measure. See
Appendix B for a reconciliation of common equity to tangible common
equity and Appendix D for the resulting calculation.
|
|
|
|
For the Three Months
Ended
|
INCOME
STATEMENT
($ in thousands
except per share data)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
tax-equivalent (1)
|
|
$
79,963
|
|
83,225
|
|
85,442
|
|
87,684
|
|
93,186
|
Taxable equivalent
adjustment (1)
|
|
731
|
|
741
|
|
740
|
|
699
|
|
700
|
Net interest
income
|
|
79,232
|
|
82,484
|
|
84,702
|
|
86,985
|
|
92,486
|
Provision for credit
losses
|
|
1,200
|
|
2,950
|
|
—
|
|
2,361
|
|
12,502
|
Noninterest
income
|
|
12,938
|
|
14,542
|
|
15,177
|
|
14,235
|
|
13,536
|
Merger and acquisition
costs
|
|
—
|
|
189
|
|
—
|
|
1,334
|
|
12,182
|
Other noninterest
expense
|
|
59,187
|
|
56,197
|
|
62,224
|
|
60,259
|
|
61,993
|
Income before income
taxes
|
|
31,783
|
|
37,690
|
|
37,655
|
|
37,266
|
|
19,345
|
Income tax
expense
|
|
6,511
|
|
8,016
|
|
7,762
|
|
7,863
|
|
4,184
|
Net income
|
|
25,272
|
|
29,674
|
|
29,893
|
|
29,403
|
|
15,161
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted
|
|
$
0.61
|
|
0.72
|
|
0.73
|
|
0.71
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
(1) This amount
reflects the tax benefit that the Company receives related to its
tax-exempt loans and securities, which carry interest rates lower
than similar taxable investments due to their tax-exempt
status. This amount has been computed assuming a 23% tax rate
and is reduced by the related nondeductible portion of interest
expense.
|
APPENDIX A:
Calculation of Return on TCE
|
|
|
|
For the Three Months
Ended
|
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 25,272
|
|
29,674
|
|
29,893
|
|
29,403
|
|
15,161
|
|
|
|
|
|
|
|
|
|
|
|
Average common
equity
|
|
1,375,490
|
|
1,280,812
|
|
1,303,249
|
|
1,314,650
|
|
1,273,435
|
Less: Average goodwill and other intangibles
|
|
(510,902)
|
|
(512,876)
|
|
(515,111)
|
|
(517,201)
|
|
(519,639)
|
Average tangible common
equity
|
|
$
864,588
|
|
767,936
|
|
788,138
|
|
797,449
|
|
753,796
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity
|
|
7.39 %
|
|
9.19 %
|
|
9.10 %
|
|
8.97 %
|
|
4.83 %
|
Return on average
tangible common equity
|
|
11.76 %
|
|
15.33 %
|
|
15.05 %
|
|
14.79 %
|
|
8.16 %
|
|
APPENDIX B:
Reconciliation of Common Equity to TCE
|
|
|
|
For the Three Months
Ended
|
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
common equity
|
|
$
1,376,099
|
|
1,372,380
|
|
1,257,683
|
|
1,297,642
|
|
1,299,961
|
Less: Goodwill and
other intangibles
|
|
(509,636)
|
|
(511,608)
|
|
(513,629)
|
|
(515,847)
|
|
(518,012)
|
Tangible common
equity
|
|
$ 866,463
|
|
860,772
|
|
744,054
|
|
781,795
|
|
781,949
|
|
APPENDIX C:
Tangible Book Value Per Share
|
|
|
|
For the Three Months
Ended
|
($ in thousands
except per share data)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
(Appendix B)
|
|
$ 866,463
|
|
860,772
|
|
744,054
|
|
781,795
|
|
781,949
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
41,156,286
|
|
41,109,987
|
|
41,085,498
|
|
41,082,678
|
|
40,986,990
|
Tangible book value per
common share
|
|
$
21.05
|
|
20.94
|
|
18.11
|
|
19.03
|
|
19.08
|
|
APPENDIX D:
TCE Ratio
|
|
|
|
For the Three Months
Ended
|
($ in
thousands)
|
|
March 31,
2024
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
(Appendix B)
|
|
$
866,463
|
|
860,772
|
|
744,054
|
|
781,795
|
|
781,949
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
12,091,597
|
|
12,114,942
|
|
11,977,960
|
|
12,032,998
|
|
12,363,149
|
Less: Goodwill and
other intangibles
|
|
(509,636)
|
|
(511,608)
|
|
(513,629)
|
|
(515,847)
|
|
(518,012)
|
Tangible assets
("TA")
|
|
$
11,581,961
|
|
11,603,334
|
|
11,464,331
|
|
11,517,151
|
|
11,845,137
|
TCE to TA
ratio
|
|
7.48 %
|
|
7.42 %
|
|
6.49 %
|
|
6.79 %
|
|
6.60 %
|
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multimedia:https://www.prnewswire.com/news-releases/first-bancorp-reports-first-quarter-results-302124730.html
SOURCE First Bancorp