First Bancorp NC | 8-K: FY2026 Q2 Revenue: USD 127.3 M

Revenue: As of FY2026 Q2, the actual value is USD 127.3 M.

EPS: As of FY2026 Q2, the actual value is USD 1.22, beating the estimate of USD 1.1475.

EBIT: As of FY2026 Q2, the actual value is USD 64.61 M.

Financial Performance

First Bancorp reported net income of $50.5 million for the second quarter of 2026, an increase from $46.7 million in the linked quarter (Q1-2026) and $38.6 million in the like quarter (Q2-2025). Net interest income for Q2-2026 was $111.3 million, up 3.9% from $107.1 million in the linked quarter and 15.1% from $96.7 million in the like quarter. The provision for credit losses decreased to $1.2 million in Q2-2026 from $3.1 million in Q1-2026 and $2.2 million in Q2-2025. Noninterest income increased to $16.0 million in Q2-2026, a $0.9 million increase from the linked quarter and a 12.2% increase from $14.3 million in the like quarter. Noninterest expenses were $62.8 million in Q2-2026, an increase of $2.5 million (4.2%) from $60.2 million in the linked quarter, primarily due to a $2.0 million increase in total personnel expenses, and a $3.8 million increase from $58.9 million in the like quarter. Income tax expense was $12.9 million in Q2-2026, compared to $12.3 million in Q1-2026 and $11.3 million in Q2-2025.

Operational Metrics

Net Interest Margin (NIM)

The net interest margin for Q2-2026 expanded to 3.71%, an increase of 0.04% from the linked quarter (3.67%) and 0.39% from the like quarter (3.32%). The linked quarter expansion was driven by a $114.9 million increase in average loans and a 10 basis points expansion in loan yield, partially offset by a 5 basis points increase in the cost of interest-bearing deposits.

Efficiency Ratio

The efficiency ratio for Q2-2026 was 49.12%, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Asset Quality

Annualized net loan charge-offs were 0.04% for Q2-2026, compared to 0.06% in the linked and like quarters, totaling $1.0 million. Total nonperforming assets (NPAs) were $44.9 million (0.34% of total assets) at June 30, 2026, slightly up from $41.8 million (0.32%) at March 31, 2026, and $35.8 million (0.28%) at June 30, 2025. The Allowance for Credit Losses (ACL) increased by $0.2 million to $124.9 million, or 1.39% of loans, in Q2-2026.

Balance Sheet

Total assets reached $13.0 billion at June 30, 2026, an increase of $93.9 million (2.9% annualized) from the linked quarter and $433.4 million (3.4%) from a year earlier. Total loans were $9.0 billion at June 30, 2026, an increase of $194.9 million (8.9% annualized) from March 31, 2026, and $763.1 million (9.3%) from June 30, 2025. Total deposits were $11.1 billion at June 30, 2026, increasing by $72.4 million (2.6% annualized) from March 31, 2026, and $254.5 million (2.3%) from June 30, 2025. Noninterest-bearing demand deposits were $3.6 billion, representing 32% of total deposits at June 30, 2026.

Capital

First Bancorp’s estimated total risk-based capital ratio at June 30, 2026, was 16.06%, down from 16.12% in the linked quarter and 16.90% in the like quarter. The tangible common equity to tangible assets ratio was 9.83% at June 30, 2026, an increase of 20 basis points from the linked quarter and 100 basis points from June 30, 2025.

Liquidity

First Bancorp’s on-balance sheet liquidity ratio was 15.7% at June 30, 2026, with approximately $2.4 billion in available lines of credit, resulting in a total liquidity ratio of 32.8%.

Outlook / Guidance

First Bancorp announced a definitive merger agreement to acquire Carolina Bank for $166 million, expected to close in Q4 2026 or early Q1 2027, subject to approvals. This acquisition is projected to increase First Bank’s South Carolina deposit base by over 50% and double its branch footprint. The merger is anticipated to improve First Bancorp’s projected Efficiency Ratio, ROAA, and ROATCE, while also resulting in low single-digit EPS accretion and maintaining strong pro forma capital ratios.