First Bancorp Reports Increased Net Income and Asset Growth for Q2 and First Half of 2025

First Bancorp (NC) reported a significant increase in its financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. The company achieved a net income of $38.6 million, or $0.93 per diluted share, for the three months ended June 30, 2025, compared to $28.7 million, or $0.70 per diluted share, for the same period in 2024. For the six months ended June 30, 2025, net income rose to $75.0 million, or $1.81 per diluted share, up from $54.0 million, or $1.31 per diluted share, in the prior year. This growth was primarily driven by a 19.2% increase in net interest income, which reached $96.7 million for the quarter, attributed to lower funding costs and higher yields on interest-earning assets.

The company’s total assets increased by 3.8% to $12.6 billion as of June 30, 2025, compared to $12.1 billion at the end of 2024. This growth was fueled by a rise in cash and cash equivalents, which grew by 40.2% to $711.3 million, and an increase in total loans, which rose by 1.6% to $8.2 billion. Total deposits also saw a boost, increasing by 2.8% to $10.8 billion, with notable growth in both noninterest-bearing and interest-bearing accounts. The company maintained a strong capital position, with a common equity Tier 1 ratio of 14.64% and a total risk-based capital ratio of 16.90%, both of which improved from the previous year.

Operationally, First Bancorp experienced a slight decline in noninterest income, which totaled $14.3 million for the second quarter, down from $14.6 million in the prior year. This decrease was primarily due to a reduction in gains from SBA loan sales, which fell by $1.2 million. However, the company reported an increase in other service charges and fees, contributing positively to its overall income. Noninterest expenses increased marginally to $59.0 million, reflecting higher personnel costs driven by increased incentives and commissions.

Looking ahead, First Bancorp remains focused on managing its interest rate risk and optimizing its asset-liability composition to enhance net interest income. The company is also closely monitoring the impact of Hurricane Helene on its loan portfolio, with an allowance for credit losses of $120.5 million as of June 30, 2025. The company’s proactive approach to managing credit risk and maintaining a diversified deposit base positions it well for future growth, despite the challenges posed by fluctuating interest rates and economic conditions.