First Bancorp Reports 31.5% Increase in Net Income for Q2 and First Half of 2026

First Bancorp (NC) reported a significant increase in financial performance for the second quarter and first half of 2026, with net income reaching $50.5 million, or $1.22 per diluted share, compared to $38.6 million, or $0.93 per diluted share, in the same period last year. This 31.5% increase in net income was primarily driven by a $14.6 million rise in net interest income, which totaled $111.3 million for the quarter, reflecting a 15.1% increase from the previous year. The growth in net interest income was attributed to higher yields on interest-earning assets and a lower cost of funds, influenced by the prevailing interest rate environment.

For the first half of 2026, First Bancorp reported net income of $97.2 million, or $2.35 per diluted share, up from $75.0 million, or $1.81 per diluted share, in the same period of 2025. The increase in net interest income for the six months was $28.9 million, or 15.2%, totaling $218.4 million. The net interest margin (NIM) improved to 3.69% from 3.28% year-over-year, driven by a shift in the mix of interest-earning assets and a decrease in the cost of interest-bearing liabilities.

Operationally, First Bancorp's total assets grew to $13.0 billion as of June 30, 2026, a 2.9% increase from December 31, 2025. Total loans increased by $266.3 million, or 3.1%, to $9.0 billion, while total deposits rose by $336.4 million, or 3.1%, to $11.1 billion. The company reported a strong liquidity position, with a liquidity ratio of 15.7% and total liquidity, including available lines of credit, at 32.8%. Nonperforming assets (NPAs) increased to $44.9 million, representing 0.34% of total assets, primarily due to a rise in nonaccrual loans.

In terms of strategic developments, First Bancorp announced an agreement to acquire First Carolina Bancshares for approximately $166 million, expected to close in the first quarter of 2027. This acquisition is anticipated to enhance First Bancorp's market share in the Pee Dee Region of South Carolina. The company also maintained a strong capital position, with a common equity Tier 1 ratio of 14.09% and a total risk-based capital ratio of 16.06% as of June 30, 2026.

Looking ahead, First Bancorp expressed optimism about its growth trajectory, supported by a favorable interest rate environment and strategic acquisitions. The company remains focused on managing its asset-liability composition to maximize net interest income while mitigating interest rate risk. The outlook for the remainder of 2026 includes continued emphasis on loan growth and maintaining strong credit quality, despite the challenges posed by economic conditions.