First Bancorp Reports Strong 2025 Earnings, Expands Net Interest Margin, and Increases Dividend
Summary
First Bancorp delivered robust financial results for 2025, with significant increases in net income and diluted EPS, driven by strong net interest income growth and an expanded net interest margin. The company also increased its quarterly dividend and reauthorized its stock repurchase program.
Key Events
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Strong Financial Performance
Net income rose to $111.0 million ($2.68 diluted EPS) in 2025 from $76.2 million ($1.84 diluted EPS) in 2024, representing a 45.7% increase in net income and a 45.6% increase in diluted EPS.
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Net Interest Margin Expansion
Net interest income increased by 19.9% to $398.2 million, and the net interest margin expanded by 51 basis points to 3.40% in 2025 from 2.89% in 2024.
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Increased Shareholder Returns
The company increased its quarterly cash dividend to $0.91 per common share for 2025, up from $0.88 in 2024. Additionally, the board reauthorized a $40.0 million stock repurchase program on January 27, 2026, following $0.991 million in repurchases during 2025.
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Stable Asset Quality and Robust Capital
The nonperforming assets to total assets ratio remained stable at 0.30% in 2025, indicating strong credit quality. Capital ratios, including a CET1 ratio of 14.10% and a total risk-based capital ratio of 16.12%, significantly exceeded regulatory minimums.
Analysis
First Bancorp's 2025 annual report highlights a period of strong financial growth and strategic positioning. The significant increase in net income and diluted EPS, coupled with a notable expansion in the net interest margin, demonstrates effective management of its core banking operations. The company's decision to increase its quarterly dividend and reauthorize a substantial stock repurchase program signals confidence in its future performance and a commitment to returning value to shareholders, especially as the stock trades near its 52-week high. While the company incurred increased securities losses from "loss-earnback transactions," these were strategic moves aimed at improving future portfolio yields. Asset quality remains stable, and capital ratios are robust, providing a solid foundation for continued operations and growth. Investors should view this report as a strong indicator of the company's health and positive outlook.
At the time of this filing, FBNC was trading at $60.21 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $34.50 to $62.64. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.