First Bancorp Reports Third Quarter Results
FIRST BANCORP /NC/ (FBNC) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release For Immediate Release: For More Information, Contact: October 21, 2026 Katie Doyle 336-286-8741 First Bancorp Reports Third Quarter Results Third Quarter 2026 Financial Data (Dollars in 000s, except per share data) Q3-2026 Q2-2026 Q3-2025 Summary Income Statement Tot
How this was made
The 30-second read
Why it matters
The earnings beat and margin expansion are likely to drive short‑term buying interest, while the pending merger adds a forward‑looking catalyst.
Market read
Strong earnings and loan growth support a positive outlook for FBNC and may lift peer regional banks.
What to watch
Potential future merger expenses and credit loss provisions could weigh on earnings sustainability.
First Bancorp Reports Third Quarter Results
Net income was $ 51,276 and diluted EPS was $ 1.24, with net interest income up to $ 114,797, NIM expanding to 3.75%, loan growth of 1.3% from the linked quarter, and the efficiency ratio holding at 49.09%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total interest incomeGAAP | $154.0M | – | – |
| Total interest expenseGAAP | 39,182 | – | – |
| Net interest incomeGAAP | $114.8M | 3.2% | 12.0% |
| Provision for credit lossesGAAP | 1,300 | – | – |
| Total noninterest incomeGAAP | 15,117 | – | – |
| Total noninterest expensesGAAP | 63,991 | 2.0% | – |
| Income before income taxesGAAP | 64,623 | – | – |
| Income tax expenseGAAP | 13,347 | – | – |
| Effective tax rateGAAP | 20.7% | – | – |
| Net incomeGAAP | $51.28M | – | – |
| Adjusted net incomenon-GAAP | $51.62M | – | – |
| Diluted EPSGAAP | $ 1.24 | – | – |
| Adjusted diluted EPSnon-GAAP | 1.24 | – | – |
| Net interest marginGAAP | 3.75% | 4 basis points | 29 basis points |
| Net interest margin - tax-equivalentother | 3.76% | – | – |
| Efficiency ratioGAAP | 49.09% | – | – |
| Adjusted efficiency rationon-GAAP | 48.74% | – | – |
| ROAGAAP | 1.55 % | – | – |
| Adjusted ROAnon-GAAP | 1.56 % | – | – |
| ROCEGAAP | 11.71 % | – | – |
| ROTCEnon-GAAP | 16.48 % | – | – |
| Total assetsGAAP | $13.15B | 0.8% | 3.1% |
| LoansGAAP | 9,104,899 | 1.3% | 8.1% |
| Total depositsGAAP | 11,126,304 | – | 2.3% |
| Total cash and cash equivalentsGAAP | 451,711 | (17.9)% | (24.5)% |
| Investment securitiesGAAP | 2,494,124 | 1.9% | (6.9)% |
| BorrowingsGAAP | 74,793 | 0.1% | (19.1)% |
| Total shareholders’ equityGAAP | 1,713,145 | (0.2)% | 6.8% |
| Allowance for credit losses to total loansGAAP | 1.36 % | – | – |
| Quarterly net charge-offs to average loans - annualizedGAAP | 0.09 % | – | – |
| Total nonperforming assetsGAAP | $44.96M | – | – |
| Nonperforming assets to total assetsGAAP | 0.34 % | – | – |
| Tangible common equity to tangible assetsnon-GAAP | 9.73% | – | – |
| Common equity tier I capital ratioother | 14.26% | – | – |
| Total risk-based capital ratioother | 16.22% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Cash dividends declared - common: $ 0.24
What drove it
- Net interest income increased due to additional loan volume, increasing loan yield through originations, and one additional earning day compared with the linked quarter.
- The linked-quarter NIM expansion was driven by a $152.6 million increase in average loans and an 8 basis points expansion in loan yield.
- Taxable securities contributed an additional $1.0 million from increased balances and higher yields.
- The provision was driven by net charge-offs of $2.1 million, partially offset by improved economic factors and reversal of the remaining incremental reserve for potential Hurricane Helene exposure.
- The linked-quarter increase in noninterest expense was driven by a $1.0 million increase in Total personnel expense.
- The Company purchased $150.0 million of US Treasury securities during the quarter.
- Merger and acquisition expenses of $0.5 million related to the pending Carolina Bank acquisition were recognized during the quarter.
Concerns
- Total unrealized losses on available for sale investment securities were $263.8 million at September 30, 2026, compared with $204.5 million at June 30, 2026.
- Total cash and cash equivalents declined to 451,711 from 550,332 in the linked quarter.
- Total cost of funds increased to 1.39% from 1.34% in the linked quarter, while cost of interest-bearing deposits increased to 2.01% from 1.94%.
- Noninterest expenses increased to 63,991 from 62,761 in the linked quarter.
- Non-owner occupied office loans represented approximately 6.3% of the total portfolio at September 30, 2026.
- Capital ratios at September 30, 2026 were preliminary.
What to watch
- Loan growth and loan yield, which were 1.3% and 5.75%, respectively, in the third quarter.
- Deposit pricing and funding costs, including the 1.35% total cost of deposits and 1.39% total cost of funds.
- The trend in available-for-sale securities unrealized losses.
- Credit performance, including the 0.09% annualized quarterly net charge-off ratio and 0.49% nonperforming loans to total loans ratio.
- Expenses and the timing of the pending Carolina Bank acquisition, scheduled to close in early 2027.
Balance sheet and cash flow
- Total cash and cash equivalents: $ 451,711 at September 30, 2026.
- Total assets: $ 13,151,553 at September 30, 2026.
- Total deposits: $ 11,126,304 at September 30, 2026.
- Borrowings: $ 74,793 at September 30, 2026.
- The Company had approximately $3.7 billion in available lines of credit at September 30, 2026.
- On-balance sheet liquidity ratio was 15.1%; total liquidity ratio was 38.7% at September 30, 2026.
Analysis
First Bancorp reported third-quarter net income of $ 51,276 and diluted EPS of $ 1.24, compared with $ 50,519 and $ 1.22 in the linked quarter. Adjusted net income was $51,622 after excluding $0.5 million of merger and acquisition expenses, net of a $0.3 million after-tax impact. The year-earlier comparison includes a securities loss-earnback transaction; adjusted net income for the third quarter of 2025 was $41,796 and adjusted diluted EPS was $1.01.
Core spread income advanced. Net interest income was $ 114,797, compared with $ 111,266 in the linked quarter and $ 102,522 a year earlier, while NIM expanded to 3.75% from 3.71% and 3.46%, respectively. Management attributed linked-quarter net interest income growth to additional loan volume, higher loan yields through originations and one additional earning day. Average loans increased by $152.6 million from the linked quarter and loan yield reached 5.75%, while the cost of interest-bearing deposits increased 7 basis points.
Period-end loans were 9,104,899, up 1.3% from the linked quarter and 8.1% from a year earlier. Period-end deposits were 11,126,304, with noninterest-bearing checking accounts of $ 3,626,442 representing 33% of total deposits. Credit metrics remained contained: total nonperforming assets were $ 44,959, nonperforming loans to total loans were 0.49%, and annualized quarterly net charge-offs were 0.09%. The allowance for credit losses to total loans declined to 1.36% from 1.39% in the linked quarter.
Expenses increased to 63,991 from 62,761 in the linked quarter, driven principally by a $1.0 million increase in Total personnel expense, alongside $0.5 million of Carolina Bank acquisition costs. Nonetheless, the efficiency ratio was stable at 49.09% versus 49.12%. The company reported total unrealized losses on available-for-sale securities of $263.8 million, higher than $204.5 million in the linked quarter, and shareholders’ equity was 1,713,145, down from 1,716,460.
Capital and liquidity remained substantial in the reported period. The preliminary total risk-based capital ratio was 16.22%, up from 16.06% in the linked quarter, while tangible common equity to tangible assets was 9.73%. The company reported an on-balance sheet liquidity ratio of 15.1%, approximately $3.7 billion in available lines of credit, and a total liquidity ratio of 38.7%. No forward financial guidance was provided; management identified the Carolina Bank acquisition, scheduled to close in early 2027, as the principal strategic transaction underway.
Management, verbatim
First Bancorp delivered another strong quarter, reflecting disciplined balance sheet management, strong credit quality, loan growth and continued operating efficiency. Our performance through the first nine months of 2026 demonstrates the strength of our franchise, while liquidity and capital remain solid. We are pleased with our year-to-date results and remain confident in our ability to finish the year on a strong note. We also look forward to welcoming the Carolina Bank team and the enhancements to our South Carolina franchise.
Richard H. Moore, Chairman and CEO of the Company
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Revenue and gross margin are not applicable metrics in the reported bank financial statements.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
First Bancorp (NASDAQ:FBNC) released its unaudited Q3 2026 results, highlighting earnings per share, net interest margin, loan growth, and pending acquisition of Carolina Bank.
Ticker impact
First Bancorp filed its Q3 2026 earnings on Form 8‑K, reporting $1.24 EPS and improved net interest margin.
likely modest upside as investors price in earnings beat and higher loan growth
The report shows higher net interest income, expanding NIM, and solid loan growth, all of which are favorable for the bank's valuation.
Market effects
Banking sector may see modest uplift as regional banks report strong loan growth and margin expansion.
U.S. regional banking stocks could benefit from the earnings beat.
Limited to U.S. banking sector; no broader macro impact.
Counterpoint
If loan growth slows or credit quality deteriorates, the earnings beat may be short‑lived.
Key entities
- companyFirst Bancorp
U.S. regional bank reporting Q3 earnings.
- companyCarolina Bank
Target of pending acquisition, closing early 2027.
