First Bancorp Reports $76.2 Million Net Income for Fiscal Year 2024

First Bancorp, a bank holding company based in Southern Pines, North Carolina, reported a net income of $76.2 million for the fiscal year ending December 31, 2024, translating to earnings per share of $1.84, a decrease from the previous year's net income of $104.1 million and earnings per share of $2.53. The company's total assets increased slightly to $12.1 billion, up 0.3% from the prior year, while total loans decreased by 0.7% to $8.1 billion. The return on average assets was 0.63%, down from 0.87% in 2023, and the return on average common equity fell to 5.38% from 8.05%.

The decline in profitability was attributed to several factors, including a $13 million provision for potential credit losses related to Hurricane Helene and a significant securities loss transaction of $36.8 million in the fourth quarter. Net interest income decreased by 4.2% to $332.3 million, primarily due to increased interest expenses on deposits, which rose by $57.2 million, outpacing the growth in interest income. The net interest margin on a tax-equivalent basis was 2.91%, down from 3.06% in 2023.

Strategically, First Bancorp expanded its footprint in South Carolina through the acquisition of GrandSouth Bancorporation in January 2023, which added $1.2 billion in assets and eight branches to its operations. This acquisition aligns with the company's goal to enhance its presence in high-growth markets. As of December 31, 2024, the company operated 113 branches across North Carolina and South Carolina, employing 1,371 full-time equivalent staff.

Operationally, First Bancorp maintained strong credit quality, with a nonperforming assets ratio of 0.39% and a net charge-off rate of 0.07%. The allowance for credit losses increased to $122.6 million, representing 1.51% of total loans, reflecting management's proactive approach to potential risks. The company also reported a total deposit growth of 5.0% to $10.5 billion, driven by organic growth, with noninterest-bearing deposits comprising 32% of total deposits.

Looking ahead, First Bancorp anticipates continued challenges from economic conditions, including inflation and interest rate fluctuations, which could impact loan demand and asset quality. The company remains focused on managing its interest rate risk and maintaining a strong capital position, with a common equity tier 1 capital ratio of 14.35% as of December 31, 2024, well above regulatory requirements.