First Bancorp

FBNC

Market cap $2.12B

First Bancorp (FBNC) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

SOUTHERN PINES, N.C. , Sept. 12, 2025 /PRNewswire/ -- The Board of Directors of First Bancorp (NASDAQ: FBNC) (the "Company"), the parent company of First Bank, has declared a cash dividend on its common stock of $0.23 per share payable on October 25, 2025 to shareholders of record as of September 30, 2025.

First Bancorp has grown deposits and improved asset quality, but revenue and profit growth have been inconsistent over recent years. Recent improvements in net interest income is positive, but years of weak performance temper my enthusiasm. The stock remains expensive on a price-to-earnings basis, even with improved forecasts, making it less attractive for value investors like myself.

The headline numbers for First Bancorp (FBNC) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

First Bancorp (FBNC) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.7 per share a year ago.

Second Quarter 2025 Financial Data (Dollars in 000s, except per share data) Q2-2025 Q1-2025 Q2-2024 Summary Income Statement Total interest income $  136,741 $  132,660 $  128,822 Total interest expense 40,065 39,777 47,707 Net interest income 96,676 92,883 81,115 Provision for credit losses 2,212 1,116 541 Noninterest income 14,341 12,902 14,601 Noninterest expenses 58,983 57,893 58,291 Income tax expense 11,256 10,370 8,172 Net income $ 38,566 $ 36,406 $ 28,712 Key Metrics Diluted EPS $     0.93 $     0.88 $     0.70 Book value per share 37.53 36.46 34.10 Tangible book value per share 25.82 24.69 22.19 Return on average assets 1.24 % 1.21 % 0.96 % Return on average common equity 10.11 % 10.06 % 8.38 % Return on average tangible common equity 15.25 % 15.54 % 13.60 % NIM 3.32 % 3.25 % 2.84 % NIM- T/E 3.32 % 3.27 % 2.87 % Quarterly net charge-offsto average loans - annualized 0.06 % 0.17 % 0.07 % Allowance for credit lossesto total loans 1.47 % 1.49 % 1.36 % Capital Ratios (1) Tangible common equity to tangible assets 8.83 % 8.55 % 7.90 % Common equity tier I capital ratio 14.62 % 14.52 % 13.99 % Total risk-based capital ratio 16.87 % 16.80 % 16.24 % (1) June 30, 2025 ratios are preliminary. Second Quarter 2025 Highlights Diluted earnings per share ("D-EPS") was $0.93 per share for the second quarter of 2025 compared to $0.88 for the linked quarter and $0.70 for the like quarter.

First Bancorp (FBNC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

First BanCorp offers an attractive entry point, with near-term NIM tailwinds and stable asset quality supporting a buy rating, despite geographic concentration risks. Recent results show strong NII growth, improved efficiency ratio, and deposit resilience, offsetting modest loan book contraction and a one-off NPA increase. Ongoing asset repricing should drive further NIM expansion and higher ROE, enhancing profitability as efficiency initiatives take hold.

Does First Bancorp (FBNC) have what it takes to be a top stock pick for momentum investors? Let's find out.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does First Bancorp (FBNC) have what it takes?