- First Bancorp (FBNC, Financial) reports a dramatic increase in net income to $36.4 million for Q1 2025.
- The net interest margin expanded notably to 3.27% in Q1, driven by increased loan and securities yields.
- Customer deposits showed robust growth, increasing by $214.1 million in the first quarter.
First Bancorp (FBNC) announced impressive financial results for the first quarter of 2025, with net income rising to $36.4 million, or $0.88 diluted earnings per share, a significant jump from $3.6 million in Q4 2024 and $25.3 million in Q1 2024. This sharp increase highlights the company's strong financial performance and operational efficiency.
The bank's net interest income reached $92.9 million in Q1 2025, marking a 17.2% year-over-year increase and a growth from $88.8 million in the preceding quarter. The tax-equivalent net interest margin expanded to 3.27%, significantly up from 3.08% in Q4 2024 and 2.80% in Q1 2024, aided by enhancements in loan yields, which rose by 5 basis points to 5.52%, and a decline in funding costs.
Maintaining a strong credit profile, First Bancorp upheld a nonperforming assets ratio of 0.27%. This solid credit quality was complemented by a strategic reduction in noninterest expenses to $57.9 million, emphasizing the company's commitment to cost management and operational efficiency.
The quarter also saw a noteworthy increase in customer deposits, which grew by $214.1 million. Noninterest-bearing deposits contributed $109.2 million to this growth, while money market accounts added another $101.1 million. This deposit growth reflects the bank's robust liquidity position, as demonstrated by a total liquidity ratio of 36.4%, positioning the company advantageously for future strategic opportunities.
The company effectively reduced its allowance for credit losses by $2.0 million, resulting from a re-evaluation of potential impacts from Hurricane Helene. The capital position remains strong, with a common equity tier 1 ratio of 14.53%, ensuring financial stability well above regulatory requirements.
CEO Richard H. Moore attributed this strong performance to strategic enhancements in net interest income and disciplined expense management. "Our solid liquidity and excess capital provide us strategic flexibility in the days ahead," Moore stated, suggesting First Bancorp is well-positioned for continued growth and shareholder value creation.
