First Bancorp Reports $20.4 Million Net Income for Q3 2025, Driven by Increased Net Interest Income

First Bancorp (NC) reported a net income of $20.4 million, or $0.49 per diluted share, for the third quarter of 2025, marking an increase from $18.7 million, or $0.45 per diluted share, in the same period last year. The company's net interest income rose to $102.5 million, a 23.4% increase from $83.0 million in the third quarter of 2024, primarily driven by higher yields on interest-earning assets and a lower cost of funds. The net interest margin (NIM) improved to 3.46%, up from 2.88% in the prior year, reflecting the favorable interest rate environment.

For the nine months ended September 30, 2025, First Bancorp's net income reached $95.3 million, or $2.30 per diluted share, compared to $72.7 million, or $1.76 per diluted share, for the same period in 2024. The increase in net interest income for the nine-month period was $48.6 million, or 20.0%, totaling $292.0 million, attributed to higher yields on interest-earning assets and a decrease in the cost of funds. The NIM for this period also increased to 3.34% from 2.83% in the previous year.

The company experienced a significant change in its noninterest income, which totaled a negative $12.9 million for the third quarter of 2025, primarily due to a $27.9 million loss from a securities loss-earnback transaction. This was a notable decline from $13.6 million in the same quarter of 2024. For the nine months ended September 30, 2025, noninterest income decreased to $14.4 million from $41.1 million in the prior year, again largely impacted by the aforementioned securities loss.

Operationally, First Bancorp's total assets increased by 5.0% to $12.8 billion as of September 30, 2025, driven by growth in loans and investment securities. Total loans rose to $8.4 billion, a 4.0% increase from the end of 2024, while total deposits reached $10.9 billion, up 3.3%. The company maintained a strong capital position, with a common equity Tier 1 ratio of 14.35% and a total risk-based capital ratio of 16.58%, both of which are above regulatory minimums.

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 continues to evaluate the potential impacts of economic conditions, including the ongoing recovery from Hurricane Helene, on its credit quality and overall financial performance.