TROY, N.C., Aug. 6 /PRNewswire-FirstCall/ -- First Bancorp (Nasdaq: FBNC), the parent company of First Bank, announced today second quarter net income available to common shareholders of $35.0 million compared to $5.3 million reported in the second quarter of 2008. Earnings per diluted common share were $2.10 in the second quarter of 2009 compared to $0.32 in the second quarter of 2008. For the six months ended June 30, 2009, the Company reported net income available to common shareholders of $38.1 million compared to $10.8 million reported for the comparable period in 2008. Earnings per diluted common share were $2.29 for the six months ended June 30, 2009 compared to $0.70 for the same six months in 2008.
Several significant factors affect the comparability of 2009 and 2008 results, including the following:
-- In the second quarter of 2009, the Company realized a $53.8 million gain
related to the acquisition of Cooperative Bank in Wilmington, North
Carolina. This gain resulted from the difference between the purchase
price and the acquisition-date fair value of the acquired assets and
liabilities. The after-tax impact of this gain was $32.8 million, or
$1.97 per diluted common share.
-- In the second quarter of 2009, the Company recorded a $1.6 million
expense related to a special assessment levied by the FDIC on all banks
in order to replenish the FDIC insurance fund. The after-tax impact of
this assessment was $976,000, or $0.06 per diluted common share.
-- In the second quarter of 2009, the Company recorded acquisition related
expenses related to Cooperative Bank of $792,000 consisting primarily of
professional fees and severance expenses. The after-tax impact of these
expenses was $483,000, or $0.03 per diluted common share.
-- The Company has recorded $1.0 million in preferred stock dividends in
both the first and second quarters of 2009 related to the January 12,
2009 issuance of preferred stock to the U.S. Treasury. These amounts
have reduced the Company's net income available to common
shareholders.
Acquisition of Cooperative Bank
On June 19, 2009, the North Carolina Commissioner of Banks issued an order providing for the closing of Cooperative Bank and appointed the FDIC as receiver. The FDIC selected First Bank to acquire all deposits (except certain brokered deposits) and borrowings, and substantially all of the assets of Cooperative Bank. Cooperative Bank operated through twenty-one branches in North Carolina and three branches in South Carolina. All deposits were assumed by First Bank with no losses to any depositor.
The following is a summary of the assets acquired and liabilities assumed:
-- $958 million in total assets at book value, which decreased to $928
million after applying purchase accounting fair market value adjustments
-- $827 million in loans at book value, which decreased to $531 million
after applying purchase accounting fair market value adjustments
-- $706 million in deposits at book value, which increased to $712 million
after applying purchase accounting fair market value adjustments
-- $153 million in borrowings at book value, which increased to $159
million after applying purchase accounting fair market value adjustments
The loans and foreclosed real estate purchased are covered by a loss share agreement between the FDIC and First Bank which affords First Bank significant loss protection. Under the loss share agreement, the FDIC will cover 80% of loan and foreclosed real estate losses up to $303 million and 95% of losses that exceed that amount. The Company has recorded an estimated receivable from the FDIC in the amount of $241.4 million, which represents the FDIC's portion of the losses that are expected to be incurred and reimbursed to the Company.
First Bank received a $123 million discount on the assets acquired and paid no deposit premium, which, after applying purchase accounting fair market value adjustments to the acquired assets and assumed deposits, resulted in a gain of $53.8 million. Also in connection with this transaction, a core deposit intangible of $3.8 million was recorded. The fair value estimates and resulting gain should be considered preliminary and are subject to change for a period of one year as information relative to closing date fair values becomes available.
The operating results of First Bancorp for the period ended June 30, 2009 include the results of the acquired assets and assumed liabilities for the 11 days subsequent to the acquisition date of June 19, 2009. The acquired loan and deposit balances have not varied materially from June 19, 2009 through today.
Balance Sheet Growth
Excluding the Cooperative acquisition, the Company has experienced a slight decline in loans during 2009. Internally generated loan balances declined $13 million, or 0.6%, in the second quarter of 2009 and have declined $40 million, or 1.8%, year to date. Internally generated deposit growth amounted to $24 million, or 1.1%, in the second quarter of 2009, and $88 million, or 4.3%, for the first six months of 2009.
Total assets at June 30, 2009, including the impact of Cooperative, amounted to $3.5 billion, 34.2% higher than a year earlier. Total loans at June 30, 2009 amounted to $2.7 billion, a 24.7% increase from a year earlier, and total deposits amounted to $2.9 billion at June 30, 2009, a 42.6% increase from a year earlier.
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2009 amounted to $23.4 million, a 9.0% increase over the second quarter of 2008. Net interest income for six months ended June 30, 2009 amounted to $45.6 million, a 10.4% increase over the second quarter of 2008. The higher net interest income was a result of higher average balances of loans and deposits as the Company's net interest margin for those periods did not vary significantly among those periods.
The Company's net interest margin (tax-equivalent net interest income divided by average earnings assets) in the second quarter of 2009 was 3.74%, a three basis point increase from the 3.71% margin realized in the second quarter of 2008 and a six basis point increase from the 3.68% margin realized in the first quarter of 2009. In the second quarter of 2009, for the second consecutive quarter, there were no changes in the interest rates set by the Federal Reserve, and the Company was able to reprice maturing time deposits at lower levels, which resulted in a higher net interest margin. During the second quarter of 2009, the Company's average yield on loans increased slightly, amounting to 6.00%, a one basis point increase from the first quarter of 2009, while the Company's average rate paid on interest-bearing liabilities was 2.25%, a 17 basis point decrease from the first quarter of 2009.
Provision for Loan Losses and Asset Quality
The current economic environment has resulted in an increase in the Company's loan losses and nonperforming assets, which has led to a significantly higher provision for loan losses. The Company's provision for loan losses amounted to $3,926,000 in the second quarter of 2009 compared to $2,059,000 in the second quarter of 2008. The provision for loan losses for the six months ended June 30, 2009 was $8,411,000 compared to $3,592,000 recorded in the first half of 2008.
The increases in the provisions for loan losses are solely attributable to the Company's "non-covered" loan portfolio, which excludes loans assumed from Cooperative that are subject to the loss share agreement with the FDIC. The Company does not expect to record any significant loan loss provisions in the foreseeable future related to Cooperative's loan portfolio because these loans were written down to estimated fair market value in connection with the recording of the acquisition.
The Company's non-covered nonperforming assets increased approximately $9 million in each of the first two quarters of 2009, amounting to $53.2 million at June 30, 2009 compared to $35.4 million at December 31, 2008 and $24.5 million at June 30, 2008. The Company's ratio of annualized net charge-offs to average non-covered loans was 0.49% for the second quarter of 2009 compared to 0.22% in the second quarter of 2008. The Company's ratio of annualized net charge-offs to average non-covered loans was 0.41% for the six months ended 2009 compared to 0.20% for the comparable period of 2008.
Although the Company's asset quality ratios discussed above reflect unfavorable trends, they compare favorably to those typical of the Company's peers based on public information available. The table below shows how the Company's ratios compare to data reported by the Federal Reserve for all bank holding companies with assets between $1 billion and $3 billion at March 31, 2009 (the most recent information available):
First Bancorp Peer Average
------------- ------------
Nonaccrual loans as percent of total
loans at March 31, 2009 1.61% 2.63%
Annualized net charge-offs to average
loans thru March 31, 2009 0.33% 0.74%
Noninterest Income
Total noninterest income was $58.7 million in the second quarter of 2009 and $63.5 million for the six months ended June 30, 2009. Total noninterest income for 2009 is not comparable to 2008 because of the previously discussed $53.8 million gain from an acquisition. Excluding that item, total noninterest income for the second quarter of 2009 was $4.8 million compared to $5.2 million in the second quarter of 2008, and $9.6 million for the six months ended June 30, 2009 compared to $10.3 million for the comparable period of 2008. The decreases in 2009 are attributable primarily to lower levels of nonsufficient fund charges as a result of a lower occurrence of overdrawn accounts and higher levels of securities losses and other miscellaneous losses experienced in 2009.
Noninterest Expenses
Noninterest expenses amounted to $19.2 million in the second quarter of 2009, an 18.9% increase over 2008. Noninterest expenses for the six months ended June 30, 2009 amounted to $35.1 million, a 14.3% increase from the $30.7 million recorded in the first six months of 2008. The increases are primarily due to higher FDIC insurance expense, higher employee insurance costs, higher pension plan costs, and acquisition-related expenses, which were partially offset by lower salaries expense, as discussed in the following paragraphs.
FDIC insurance expense amounted to $2.4 million in the second quarter of 2009 compared to $245,000 in the second quarter of 2008. For the six months ended June 30, 2009, FDIC insurance expense amounted to $3.2 million compared to $485,000 for the first six months of 2008. During the second quarter of 2009, the Company recorded a $1.6 million charge related to a special assessment levied by the FDIC on all banks. In addition to that assessment, the amount of recurring FDIC insurance expense has increased significantly in 2009 as a result of the FDIC raising quarterly insurance rates in 2009 in order to replenish its reserves.
The Company's personnel expense amounted to $9.6 million in the second quarter of 2009 compared to $9.1 million in the second quarter of 2008. For the six months ended June 30, 2009, the Company's personnel expense amounted to $18.4 million compared to $17.7 million for the six months ended June 30, 2008. The Company's quarterly pension expense has been approximately $300,000 higher in each of the first two quarters of 2009 compared to 2008, primarily as a result of investment losses experienced by the pension plan's assets in 2008. In order to manage this expense, the Company is no longer adding new participants to the plan. Also negatively impacting personnel expense for the three and six months ended June 30, 2009 was an unfavorable quarter that the Company experienced related to its employees' health care costs. Health care costs were approximately $500,000 higher than normal in the second quarter of 2009 compared to most quarters. Salaries expense related to new employees assumed in the Cooperative acquisition amounted to $200,000 in the second quarter of 2009. Partially offsetting these personnel cost increases were decreases in salaries expense of $678,000 and $930,000 for the three and six months ended June 30, 2009, respectively, compared to the same periods in 2008, as a result of the Company freezing salaries and suspending its annual incentive plan program due to the current economic environment.
In the second quarter of 2009, the Company recorded acquisition related expenses related to Cooperative Bank of $792,000 consisting primarily of professional fees and severance expenses.
The Company's effective tax rate was approximately 37%-39% for each of the three and six month periods ended June 30, 2009 and 2008.
Comments of the President and Other Business Matters
Jerry L. Ocheltree, President and CEO of First Bancorp, commented on today's report, "Although we were saddened to see the situation involving Cooperative Bank unfold, we believe that First Bank was a good fit to assume the closed branches. We are working hard to prove ourselves to our new customers and consider it a privilege to be of service."
"Although a sizeable accounting gain was recorded in connection with this transaction, it will only be a long-term success for our shareholders if we are able to retain our new customers by providing the best in community banking. I am confident that we will do that," stated Mr. Ocheltree.
Mr. Ocheltree noted the following other corporate developments:
-- The conversion of Cooperative Bank's computer systems to First Bank
is scheduled to occur in October. At that same time, it is expected
that certain branch consolidations will occur where there is currently
an overlap in branches between former Cooperative Bank branches and
existing First Bank branches. Customers of the affected branches will
be provided more information on this matter at later date.
-- In May 2009, the Company's newest branch at 2107 West Evans Street
in Florence, South Carolina held a grand opening celebration.
-- The Company has received regulatory approval to open a full-service bank
branch in Christiansburg, Virginia. Construction of a branch facility
is expected to begin soon. This will be the Company's sixth branch
in southwestern Virginia.
-- On May 28, 2009, the Company announced a quarterly cash dividend of
$0.08 cents per share payable on July 24, 2009 to shareholders of record
on June 30, 2009. The is the same dividend rate as the Company declared
in the first quarter of 2009 and is a decrease from the $0.19 rate paid
in the comparable quarter in 2008. The dividend rate was reduced in
order to conserve capital in light of current economic conditions.
-- There has been no stock repurchase activity during 2009.
First Bancorp is a bank holding company headquartered in Troy, North Carolina with total assets of approximately $3.5 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that now operates 98 branches, with 83 branches operating in the central piedmont and coastal regions of North Carolina, 10 branches in South Carolina (Cheraw, Dillon, Florence, Latta, Jefferson, Myrtle Beach and Little River), and 5 branches in Virginia (Abingdon, Dublin, Fort Chiswell, Radford, and Wytheville), where First Bank does business as First Bank of Virginia. First Bank also has a loan production office in Blacksburg, Virginia. First Bancorp's common stock is traded on the NASDAQ Global Select Market under the symbol "FBNC."
Please visit our website at www.FirstBancorp.com.
This press release contains statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other statements concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the Company's level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent report on Form 10-K.
First Bancorp and Subsidiaries
Financial Summary
Three Months Ended
June 30,
($in thousands except per share ------------------ Percent
data - unaudited) 2009 2008 Change
------------------------------------------------------------------------
INCOME STATEMENT
Interest income
---------------
Interest and fees on loans $33,640 34,814
Interest on investment
securities 1,874 2,043
Other interest income 66 276
------- -------
Total interest income 35,580 37,133 (4.2%)
------- -------
Interest expense
----------------
Interest on deposits 11,224 13,810
Other, primarily borrowings 913 1,822
------- -------
Total interest expense 12,137 15,632 (22.4%)
------- -------
Net interest income 23,443 21,501 9.0%
Provision for loan losses 3,926 2,059 90.7%
------- -------
Net interest income after
provision 19,517 19,442 0.4%
for loan losses ------- -------
Noninterest income
------------------
Service charges on deposit
accounts 3,250 3,462
Other service charges,
commissions, and fees 1,205 1,068
Fees from presold mortgages 293 260
Commissions from financial
product sales 337 356
Data processing fees 36 48
Gain from acquisition 53,830
Securities gains (losses) (56) (16)
Other gains (losses) (183) (28)
------- -------
Total noninterest income 58,712 5,150 1,040.0%
------- -------
Noninterest expenses
--------------------
Personnel expense 9,552 9,129
Occupancy and equipment expense 2,110 2,064
Intangibles amortization 98 123
Acquisition expenses 792
Other operating expenses 6,651 4,841
------- -------
Total noninterest expenses 19,203 16,157 18.9%
------- -------
Income before income taxes 59,026 8,435 599.8%
Income taxes 23,008 3,157 628.8%
------- -------
Net income 36,018 5,278 582.4%
Preferred stock dividends and
accretion (1,022) -
------- -------
Net income available to common
shareholders $34,996 5,278 563.1%
======= =======
Earnings per common share -
basic $2.10 0.32 556.3%
Earnings per common share -
diluted 2.10 0.32 556.3%
ADDITIONAL INCOME STATEMENT
INFORMATION
---------------------------
Net interest income, as reported $23,443 21,501
Tax-equivalent adjustment (1) 187 163
------- -------
Net interest income,
tax-equivalent $23,630 21,664 9.1%
======= =======
(1) This amount reflects the tax benefit that the Company receives
related to its tax-exempt loans and securities, which carry interest
rates lower than similar taxable investments due to their tax exempt
status. This amount has been computed assuming a 39% tax rate and
is reduced by the related nondeductible portion of interest expense.
First Bancorp and Subsidiaries
Financial Summary - Page 2
Six Months Ended
June 30,
($in thousands except per share ------------------ Percent
data - unaudited) 2009 2008 Change
------------------------------------------------------------------------
INCOME STATEMENT
Interest income
---------------
Interest and fees on loans $66,192 68,753
Interest on investment securities 3,806 3,968
Other interest income 105 719
------- -------
Total interest income 70,103 73,440 (4.5%)
------- -------
Interest expense
----------------
Interest on deposits 22,649 28,210
Other, primarily borrowings 1,901 3,965
------- -------
Total interest expense 24,550 32,175 (23.7%)
------- -------
Net interest income 45,553 41,265 10.4%
Provision for loan losses 8,411 3,592 134.2%
------- -------
Net interest income after
provision for loan losses 37,142 37,673 (1.4%)
------- -------
Noninterest income
------------------
Service charges on deposit
accounts 6,224 6,538
Other service charges,
commissions, and fees 2,326 2,255
Fees from presold mortgages 452 458
Commissions from financial
product sales 831 755
Data processing fees 65 98
Gain from acquisition 53,830
Securities gains (losses) (119) (16)
Other gains (losses) (151) 257
------- -------
Total noninterest income 63,458 10,345 513.4%
------- -------
Noninterest expenses
--------------------
Personnel expense 18,378 17,683
Occupancy and equipment expense 4,179 4,051
Intangibles amortization 196 202
Acquisition expenses 792
Other operating expenses 11,595 8,812
------- -------
Total noninterest expenses 35,140 30,748 14.3%
------- -------
Income before income taxes 65,460 17,270 279.0%
Income taxes 25,361 6,463 292.4%
------- -------
Net income $40,099 10,807 271.0%
Preferred stock dividends and
accretion (1,963) -
------- -------
Net income available to common
shareholders $38,136 10,807 252.9%
======= =======
Earnings per share - basic $2.29 0.70 227.1%
Earnings per share - diluted 2.29 0.70 227.1%
ADDITIONAL INCOME STATEMENT
INFORMATION
---------------------------
Net interest income, as reported $45,553 41,265
Tax-equivalent adjustment (1) 350 327
------- -------
Net interest income,
tax-equivalent $45,903 41,592 10.4%
======= =======
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments
First Bancorp and Subsidiaries
Financial Summary - page 3
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------------------
PERFORMANCE RATIOS
(annualized) 2009 2008 2009 2008
-----------------------------------------
Return on average
assets (1) 5.15% 0.85% 2.88% 0.91%
Return on average
common equity (2) 60.20% 9.75% 33.40% 10.97%
Net interest margin -
tax equivalent (3) 3.74% 3.71% 3.71% 3.75%
Efficiency ratio - tax
equivalent (3) (4) 23.32% 60.26% 32.13% 59.20%
Net charge-offs to
average non-covered
loans 0.49% 0.22% 0.41% 0.20%
COMMON SHARE DATA
Cash dividends declared
- common $0.08 0.19 $0.16 0.38
Stated book value -
common 15.66 13.14 15.66 13.14
Tangible book value -
common 11.37 9.02 11.37 9.02
Common shares
outstanding at end of
period 16,655,577 16,488,201 16,655,577 16,488,201
Weighted average shares
outstanding - basic 16,636,769 16,470,975 16,622,697 15,425,787
Weighted average shares
outstanding - diluted 16,672,989 16,535,358 16,658,917 15,497,429
CAPITAL RATIOS
Tangible equity to
tangible assets 7.26% 5.82% 7.26% 5.82%
Tangible common equity
to tangible assets 5.50% 5.82% 5.50% 5.82%
Tier I leverage ratio 11.45% 8.14% 11.45% 8.14%
Tier I risk-based
capital ratio 12.36% 9.32% 12.36% 9.32%
Total risk-based
capital ratio 13.62% 10.54% 13.62% 10.54%
AVERAGE BALANCES ($in
thousands)
Total assets $2,725,214 2,510,491 $2,671,052 2,382,457
Loans 2,249,130 2,144,694 2,225,956 2,030,011
Earning assets 2,537,023 2,350,134 2,494,751 2,231,764
Deposits 2,255,374 2,032,901 2,180,899 1,945,569
Interest-bearing
liabilities 2,136,201 2,031,497 2,108,479 1,929,330
Shareholders' equity 293,893 217,704 288,204 198,151
-------------------------------------------------------------------------
(1) Calculated by dividing annualized net income available to common
shareholders by average assets.
(2) Calculated by dividing annualized net income available to common
shareholders by average common equity.
(3) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
(4) Calculated by dividing noninterest expense by the sum of
tax-equivalent net interest income plus noninterest income.
TREND INFORMATION
($ in thousands except per share data)
For the Three Months Ended
--------------------------
June March December September June
INCOME 30, 31, 31, 30, 30,
STATEMENT 2009 2009 2008 2008 2008
------- ------- --------- --------- -------
Net interest
income - tax
equivalent (1) $23,630 22,273 22,675 22,950 21,664
Taxable
equivalent
adjustment (1) 187 163 166 165 163
Net interest
income 23,443 22,110 22,509 22,785 21,501
Provision for
loan losses 3,926 4,485 3,437 2,851 2,059
Noninterest
income 58,712 4,746 4,952 5,360 5,150
Noninterest
expense 19,203 15,937 16,067 15,396 16,157
Income before
income taxes 59,026 6,434 7,957 9,898 8,435
Income taxes 23,008 2,353 2,956 3,701 3,157
Net income 36,018 4,081 5,001 6,197 5,278
Preferred
stock
dividends
and
accretion 1,022 941
Net income
available to
common
shareholders 34,996 3,140 5,001 6,197 5,278
Earnings per
common share
- basic 2.10 0.19 0.30 0.38 0.32
Earnings per
common share
- diluted 2.10 0.19 0.30 0.37 0.32
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
First Bancorp and Subsidiaries
Financial Summary - page 4
CONSOLIDATED
BALANCE At June At March At Dec. At June One
SHEETS 30, 31, 31, 30, Year
($in 2009 2009 2008 2008 Change
thousands) ---------- -------- -------- -------- ------
Assets
Cash and due
from banks $47,761 62,760 88,015 32,255 48.1%
Interest
bearing
deposits
with banks 177,230 126,770 136,765 123,600 43.4%
---------- --------- --------- ---------
Total cash
and cash
equivalents 224,991 189,530 224,780 155,855 44.4%
---------- --------- --------- ---------
Investment
securities 213,998 184,193 187,183 172,002 24.4%
Presold
mortgages 8,993 5,014 423 2,394
Loans -
non-covered 2,174,422 2,187,466 2,211,315 2,166,840 0.3%
Loans -
covered by
FDIC loss
share
agreement 527,361 n/m
---------- --------- --------- ---------
Total loans 2,701,783 2,187,466 2,211,315 2,166,840 24.7%
Allowance for
loan losses (33,185) (31,912) (29,256) (26,061) 27.3%
---------- --------- --------- ---------
Net loans 2,668,598 2,155,554 2,182,059 2,140,779 24.7%
---------- --------- --------- ---------
Premises and
equipment 52,362 52,097 52,259 50,607 3.5%
FDIC loss
share
receivable 241,369 - - - n/m
Intangible
assets 71,382 67,682 67,780 67,995 5.0%
Other assets 36,018 37,480 36,083 31,724 13.5%
---------- --------- --------- ---------
Total assets $3,517,711 2,691,550 2,750,567 2,621,356 34.2%
========== ========= ========= =========
Liabilities
Deposits:
Non-interest
bearing
demand $271,669 231,263 229,478 240,206 13.1%
NOW accounts 271,991 209,985 198,775 200,355 35.8%
Money market
accounts 449,007 381,362 340,739 327,825 37.0%
Savings
accounts 145,194 128,914 125,240 136,229 6.6%
Brokered time
deposits 108,933 80,578 78,569 21,666 402.8%
Internet time
deposits 168,562 6,494 5,206 - n/m
Other time
deposits >
$100,000 673,370 530,895 520,198 503,575 33.7%
Other time
deposits 786,440 569,628 576,586 586,621 34.1%
--------- --------- --------- ---------
Total
deposits 2,875,166 2,139,119 2,074,791 2,016,477 42.6%
Repurchase
agreements 62,309 59,293 61,140 41,110 51.6%
Borrowings 230,099 182,159 367,275 326,006 -29.4%
Other
liabilities 28,504 25,537 27,493 21,086 35.2%
--------- --------- --------- ---------
Total
liabilities 3,196,078 2,406,108 2,530,699 2,404,679 32.9%
--------- --------- --------- ---------
Shareholders'
equity
Preferred
stock 65,000 65,000 - - n/m
Discount on
preferred
stock (4,190) (4,391) - - n/m
Common stock 97,409 96,687 96,072 94,858 2.7%
Common stock
warrants 4,592 4,592 - - n/m
Retained
earnings 167,424 133,762 131,952 127,042 31.8%
Accumulated
other
comprehensive
income (8,602) (10,208) (8,156) (5,223) 64.7%
---------- --------- --------- ---------
Total
shareholders'
equity 321,633 285,442 219,868 216,677 48.4%
---------- --------- --------- ---------
Total
liabilities
and
shareholders'
equity $3,517,711 2,691,550 2,750,567 2,621,356 34.2%
========== ========= ========= =========
First Bancorp and Subsidiaries
Financial Summary - page 5
For the Three Months Ended
--------------------------
June March December September June
30, 31, 31, 30, 30,
YIELD INFORMATION 2009 2009 2008 2008 2008
----- ----- -------- -------- -----
Yield on loans 6.00% 5.99% 6.22% 6.44% 6.53%
Yield on
securities - tax
equivalent (1) 4.46% 4.80% 4.63% 4.89% 5.39%
Yield on other
earning assets 0.26% 0.22% 0.74% 2.18% 2.72%
Yield on all
interest
earning
assets 5.65% 5.74% 6.00% 6.26% 6.38%
Rate on interest
bearing deposits 2.24% 2.47% 2.72% 2.84% 3.10%
Rate on other
interest bearing
liabilities 2.40% 1.97% 2.22% 2.92% 3.05%
Rate on all
interest
bearing
liabilities 2.25% 2.42% 2.64% 2.85% 3.09%
Interest rate
spread - tax
equivalent (1) 3.40% 3.32% 3.36% 3.41% 3.29%
Net interest
margin - tax
equivalent (2) 3.74% 3.68% 3.70% 3.79% 3.71%
Average prime
rate 3.25% 3.25% 4.06% 5.00% 5.08%
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
(2) Calculated by dividing annualized tax equivalent net interest income
by average earning assets for the period. See footnote 1 on page 1
of Financial Summary for discussion of tax-equivalent adjustments.
June March Dec. Sept. June
ASSET QUALITY DATA 30, 31, 31, 30, 30,
($in thousands) 2009 2009 2008 2008 2008
---- ---- ---- ---- ----
Nonaccrual loans -
non-covered $43,210 35,296 26,600 19,558 17,588
Nonaccrual loans -
covered by FDIC loss
share (1) 41,985 - - - -
Restructured
loans - non-covered 3,995 3,995 3,995 3,995 3,995
Accruing loans
> 90 days past due - - - - -
Total
nonperforming
loans 89,190 39,291 30,595 23,553 21,583
Other real estate -
non-covered 6,032 5,428 4,832 4,565 2,934
Other real estate -
covered by FDIC loss
share 12,415
-------- -------- -------- -------- -------
Total
nonperforming
assets $107,637 44,719 35,427 28,118 24,517
======== ======== ======== ======== ========
Total
nonperforming
assets -
non-covered $53,237 44,719 35,427 28,118 24,517
======== ======== ======== ======== ========
Asset Quality Ratios
--------------------
Net charge-offs to
average non-covered
loans - annualized 0.49% 0.34% 0.38% 0.18% 0.22%
Non-covered
nonperforming
loans to
non-covered
loans 2.17% 1.80% 1.38% 1.06% 1.00%
Non-covered
nonperforming
assets to
total assets 1.51% 1.66% 1.29% 1.04% 0.94%
Allowance for
loan losses to
non-covered
loans 1.53% 1.46% 1.32% 1.26% 1.20%
Allowance for
loan losses to
non-covered
nonperforming
loans 70.30% 81.22% 95.62% 118.58% 120.75%
(1) At June 30, 2009, the contractual balance of the nonaccrual loans
covered by the FDIC loss share agreement was $122.6 million.
SOURCE First Bancorp
For further information: Jerry L. Ocheltree, +1-910-576-6171
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