First Bancorp Reports First Quarter Earnings

Apr 23, 2001, 01:00 ET from First Bancorp

    TROY, N.C., April 23 /PRNewswire Interactive News Release/ --
     First Bancorp (Nasdaq:   FBNC), the parent company of First Bank, announced
 earnings today of $3,224,000, or $0.36 per diluted share, for the three months
 ended March 31, 2001 compared to earnings recorded in the first quarter of
 2000 of $3,238,000, or $0.36 per diluted share.  The earnings for the first
 quarter of 2001 represent a return on average assets of 1.41% and a return on
 average equity of 11.73%.
     The essentially flat earnings when comparing the first quarter of 2001 to
 the same quarter of 2000 are primarily a result of virtually unchanged net
 interest income after provision for loan losses, with offsetting increases in
 noninterest income and noninterest expenses.  Net interest income for the
 first quarter of 2001 was 5.5% less than the amount of net interest income
 recorded in the fourth quarter of 2000.  The company attributes the decrease
 in net interest income on a consecutive quarter basis to the significant
 decrease in the interest rate environment that occurred in the first quarter
 of 2001.
     Noninterest income for the first quarter of 2001 increased 24.4% over the
 amount recorded in the first quarter of 2000 primarily as a result of
 increases in service charges on deposit accounts, growth in the company's
 customer base, and higher fees from presold mortgages resulting from a higher
 level of mortgage loan refinancings.  Noninterest expenses for the first
 quarter of 2001 increased 7.4% over the first quarter of 2000 as a result of
 the company's growth.
     The company's annualized net charge-off percentage remained low amounting
 to 3 basis points for the quarter.  Although the company's ratio of
 nonperforming assets to total assets of 0.50% at March 31, 2001 is in line
 with industry averages, it represents an increase from year ago and previous
 quarter end ratios.  The increase in the level of nonperforming assets is
 primarily related to $2.4 million in loans to one borrower that were placed on
 nonaccrual status during the first quarter as a result of liquidity problems
 being experienced by the borrower.  The loans related to this borrower are
 collateralized by various pieces of real estate, the aggregate value of which
 the company believes exceeds the outstanding loan balance.
     During the first quarter of 2001, the company completed its acquisition of
 four branch offices in Scotland and Robeson counties, with total deposits of
 approximately $102 million and consumer loans of approximately $17 million.
 In connection with this acquisition, the company recorded intangible assets of
 approximately $14.4 million.  The acquisition of these branches brought the
 company's total assets to over $1 billion for the first time in the company's
 history.
     During the second quarter of 2001, the company expects to complete its
 acquisition of Century Bancorp, Inc., a one branch institution with
 approximately $105 million in assets located in Thomasville, North Carolina.
     "I am pleased with the earnings being reported today," stated President
 and CEO Jimmie Garner.  "It is encouraging that the company was able to
 maintain steady earnings despite the economic slowdown and significant changes
 in the interest rate environment experienced in the first quarter."
     "The last three months were also important strategically for the company,"
 noted Mr. Garner.  "It marked the first full quarter of integrated operations
 resulting from the First Savings Bancorp merger, as well as the acquisition
 and computer conversion of the four purchased branch offices.  I would again
 like to welcome the new employees and customers of the acquired branches to
 the First Bank family."
     "I also look forward to joining forces soon with Jim Hudson, President and
 CEO of Century Bancorp, and his team of dedicated employees that have created
 such a high quality institution in Thomasville.  We firmly believe we can
 leverage each other's strengths to gain market share in this attractive
 market," added Mr. Garner.
     Mr. Garner noted that, pursuant to the company's share repurchase program
 announced in conjunction with the execution of the merger agreement with
 Century Bancorp, Inc., the company repurchased 94,627 shares of its common
 stock at an average repurchase price of $18.39 per share during the three
 months ended March 31, 2001.  Mr. Garner also noted that the share repurchase
 program has been suspended due to the pending acquisition of Century Bancorp,
 Inc.
     The financial results discussed above reflect the effects of the
 completion of the merger with First Savings Bancorp, Inc., which occurred on
 September 14, 2000.  The merger with First Savings Bancorp, Inc. was accounted
 for as a pooling-of-interests, and therefore all results reported reflect the
 combined results of First Bancorp and First Savings Bancorp, Inc.
     On October 20, 2000, First Bancorp announced the signing of a definitive
 merger agreement to acquire Century Bancorp, Inc.  Century Bancorp is the
 holding company for Home Savings, Inc., SSB, a one branch savings institution
 located in Thomasville, NC, with total assets of $105 million.   All
 regulatory approvals have been received, and this transaction is expected to
 close in the second quarter of 2001.
     First Bancorp is a bank holding company based in Troy, North Carolina.
 Its principal activity is the ownership and operation of First Bank, a state-
 chartered bank that operates 43 branch offices in a fifteen county market area
 centered in the central piedmont region of North Carolina.  First Bancorp's
 common stock is traded on the NASDAQ National Market under the symbol FBNC.
 Broker contacts for market makers of First Bancorp's common stock include Legg
 Mason (Paul Newton at 1-800-628-5770), Scott & Stringfellow, Inc.
 (Jeff O'Quinn at 1-800-763-1893), Sterne, Agee, & Leach, Inc. (Sandy Park at
 1-800-239-6921), Trident Securities (Sadler Stukes at 1-800-340-6321), and
 Wachovia Securities, Inc. (Kel Normann at 1-800-929-1019).
     Please visit our website at www.firstbancorp.com.  For additional
 financial data, please see the attached Financial Summary.  For additional
 information, please contact:
 
     Mr. James H. Garner
     President & Chief Executive Officer
     Telephone: (910) 576-6171
 
     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," 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.
     First Bancorp has filed a proxy statement/prospectus and other documents
 concerning the acquisition of Century Bancorp, Inc. with the United States
 Securities and Exchange Commission ("SEC") and the proxy statement/prospectus
 has been mailed to Century's shareholders.  These documents contain important
 information and we urge Century shareholders to read the proxy
 statement/prospectus and other documents filed with the SEC carefully.  You
 can obtain the documents free from the SEC's website, www.sec.gov.  In
 addition, you may obtain a copy for free from the Corporate Secretary of
 Century Bancorp, Inc., 22 Winston Street, Thomasville, North Carolina 27360,
 telephone (336) 475-4663.
 
 
                         First Bancorp and Subsidiaries
                               Financial Summary
 
                                        Three Months Ended
                                              March 31,               Percent
                                        2000            2001          Change
 
     ($ in thousands except per share data - unaudited)
 
     INCOME STATEMENT
 
     Interest income
      Interest and fees on loans     $16,422           14,171
      Interest on investment
       securities                      1,805            2,532
      Other interest income              197              234
       Total interest income          18,424           16,937           8.8%
 
     Interest expense
      Interest on deposits             8,581            6,833
      Interest on borrowings             524              710
       Total interest expense          9,105            7,543          20.7%
        Net interest income            9,319            9,394          -0.8%
     Provision for loan losses           220              310         -29.0%
     Net interest income after provision
      for loan losses                  9,099            9,084           0.2%
 
     Noninterest income
      Service charges on deposit
       accounts                          908              746
      Other service charges,
       commissions, and fees             580              507
      Fees from presold mortgages        138               89
      Commissions from credit
       insurance sales                   152              145
      Data processing fees                47               20
      Other gains (losses)                37              (10)
       Total noninterest income        1,862            1,497         24.4%
 
     Noninterest expenses
      Personnel expense                3,405            3,189
      Occupancy and equipment expense    775              678
      Intangibles amortization           182              158
      Other operating expenses         1,703            1,621
       Total noninterest expenses      6,065            5,646          7.4%
     Income before income taxes        4,896            4,935         -0.8%
     Income taxes                      1,672            1,697         -1.5%
     Net income                       $3,224            3,238         -0.4%
 
     Effect of nonrecurring items,
      net of taxes                       (24)               6
     Net income, excluding
      nonrecurring items              $3,200            3,244         -1.4%
 
     ADDITIONAL INCOME STATEMENT INFORMATION
 
      Intangibles amortization -
       net of tax benefit               $151              135
 
     Tax equivalent net interest income
     Net interest income, as
      recorded                        $9,319            9,394
     Tax equivalent adjustment           143              151
     Tax equivalent net interest
      income                          $9,462            9,545        -0.9%
 
 
                         First Bancorp and Subsidiaries
                           Financial Summary - page 2
 
 
                                         Three Months Ended
                                             March 31,
                                                                      Percent
     SHARE DATA                         2001            2000           Change
 
 
     Earnings per share -
      basic, as reported               $0.37            0.37             0.0%
     Earnings per share - basic,
      excluding non-recurring items     0.36            0.37            -2.7%
     Earnings per share - diluted,
      as reported                       0.36            0.36             0.0%
     Earnings per share - diluted,
      excluding non-recurring items     0.36            0.36             0.0%
     Cash dividends declared            0.22            0.17            29.4%
     Stated book value                 12.66           12.15             4.2%
     Tangible book value               10.50           11.57            -9.2%
     Common shares outstanding at
      end of period                8,755,161       8,911,475
     Weighted average shares
      outstanding - basic          8,774,877       8,865,941
     Weighted average shares
      outstanding - diluted        8,987,252       9,098,387
 
     SELECTED RATIOS
     Return on average assets,
      as reported                       1.41%           1.47%
     Return on average assets,
      excluding non-recurring items     1.40%           1.47%
     Return on average equity,
      as reported                      11.73%          11.99%
     Return on average equity,
      excluding non-recurring items    11.64%          12.01%
     Net interest margin -
      tax equivalent                    4.35%           4.56%
     Efficiency ratio -
      tax equivalent, as reported      53.56%          51.13%
     Efficiency ratio -
      tax equivalent, excluding
      non-recurring items              53.73%          51.09%
     Shareholders' equity to assets    10.73%          11.78%
 
     TREND INFORMATION
     ($ in thousands except share data)
 
                                   For the Three Months Ended
                   March 31,  Dec. 31, Sept. 30, June 30, March 31, One Year
                     2001       2000     2000      2000    2000     Change
 
     Net interest income
      - tax
      equivalent$    9,462    10,014     9,841    9,889    9,545    -0.9%
     Taxable equivalent
      adjustment       143       149       146      148      151    -5.3%
     Net interest
      income
                     9,319     9,865     9,695    9,741    9,394    -0.8%
     Provision for loan
      losses - recurring
      in nature        220       240       285      350      310   -29.0%
     Noninterest income -
      recurring in
      nature         1,825     1,469     1,451    1,419    1,507    21.1%
     Noninterest expense-
      recurring in
      nature         6,065     6,129     5,915    5,863    5,646     7.4%
     Nonrecurring
      items, net(A)     37       811    (5,614)      88      (10)    n/m
     Income (loss) before
      income taxes   4,896     5,776      (668)   5,035    4,935    -0.8%
     Income taxes    1,672     2,033       255    1,751    1,697    -1.5%
     Net income
      (loss)         3,224     3,743      (923)   3,284    3,238    -0.4%
     Nonrecurring (income)/
      expense, net
      of taxes         (24)     (492)    4,065      (54)       6     n/m
     Net income,
      excluding
      nonrecurring
      items          3,200     3,251     3,142    3,230    3,244    -1.4%
 
     Earnings (loss)
      per share - basic,
      as reported     0.37      0.42     (0.10)    0.37     0.37     0.0%
     Earnings per share -
      basic, excluding
      non-recurring
      items           0.36      0.37      0.35     0.36     0.37    -2.7%
     Earnings (loss)
      per share -
      diluted         0.36      0.41     (0.10)    0.36     0.36     0.0%
     Earnings per share -
      diluted, excluding
      non-recurring
      items           0.36      0.36      0.35     0.35     0.36     0.0%
 
      (A)  Includes gains and losses from securities sales, loan sales, fixed
           assets, other real estate, and other nonrecurring items.  The
           quarter ended September 30, 2000 also includes merger expenses
           totaling $3,188,000 and a provision for loan losses entry for
           $420,000 to conform an acquired institution's credit risk practices
           to those of First Bancorp.
 
 
                            First Bancorp and Subsidiaries
                                  Financial Summary
 
                     March 31,  Dec. 31, Sept. 30 June 30, March 31, One Year
     PERIOD END        2001       2000    2000      2000     2000     Change
      BALANCES
     Assets       $ 1,033,078    915,167 928,820  954,887   918,490    12.5%
     Securities       110,441    117,521 107,299  157,692   162,820   -32.2%
     Loans            770,749    746,089 730,134  704,714   673,089    14.5%
     Allowance for
      loan losses       8,386      7,893   7,773    7,143     6,908    21.4%
     Intangible assets 18,910      4,630   4,788    4,946     5,104   270.5%
     Deposits         887,813    770,379 769,008  752,787   731,392    21.4%
     Borrowings        26,200     26,200  41,200   84,000    70,500   -62.8%
     Shareholders'
      equity          110,802    110,684 109,961  110,700   108,244     2.4%
 
 
                                     For the Three Months Ended
          YIELD
      INFORMATION     March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
                        2001      2000     2000     2000     2000     Change(B)
     Yield on loans     8.85%      9.03%   8.97%    8.85%     8.64%    21 bp
     Yield on securities
      - tax equivalent  6.97%    6.82%     6.93%    6.43%     6.44%    53 bp
     Yield on other
      earning assets    5.37%    7.38%     6.26%    6.63%     6.14%   -77 bp
     Yield on all interest
      earning assets    8.54%    8.70%     8.57%    8.36%     8.16%    38 bp
     Rate on interest
      bearing deposits  4.94%    4.95%     4.79%    4.41%     4.20%    74 bp
     Rate on other
      interest bearing
      liabilities       6.45%    6.43%     7.17%    6.31%     5.62%    83 bp
     Rate on all interest
      bearing
      liabilities       5.00%    5.00%     4.95%    4.57%     4.30%    70 bp
     Interest rate spread -
      tax equivalent    3.54%    3.70%     3.62%    3.79%     3.86%   -32 bp
     Net interest margin
      - tax
      equivalent (A)    4.35%    4.54%     4.41%    4.56%     4.56%   -21 bp
     Average prime rate 8.64%    9.50%     9.50%    9.25%     8.69%    -5 bp
 
     (A)  Calculated by dividing annualized tax equivalent net interest income
          by average earning assets for the period.
     (B)  Expressed in terms of change in basis points from previous year.
 
 
 
      ASSET QUALITY   March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
        DATA            2001       2000     2000     2000      2000    Change
 
     Nonaccrual loans $ 3,598        626     992      738     1,199   200.1%
     Restructured loans   231        237     243      249       252    -8.3%
     Total nonperforming
      loans             3,829        863   1,235      987     1,451   163.9%
     Other real estate  1,324        893     738      767       997    32.8%
     Total nonperforming
      assets           $5,153      1,756   1,973    1,754     2,448   110.5%
     Net charge-offs to
      average loans -
      annualized         0.03%      0.06%   0.04%    0.07%     0.05%     -2 bp*
     Nonperforming loans
      to total loans     0.50%      0.12%   0.17%    0.14%     0.22%     28 bp*
     Nonperforming assets
      to total assets    0.50%      0.19%   0.21%    0.18%     0.27%     23 bp*
     Allowance for loan
      losses to total
      loans              1.09%      1.06%   1.06%    1.01%     1.03%      6 bp*
 
 
     * Expressed in terms of change in basis points from previous year.
 
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SOURCE First Bancorp
    TROY, N.C., April 23 /PRNewswire Interactive News Release/ --
     First Bancorp (Nasdaq:   FBNC), the parent company of First Bank, announced
 earnings today of $3,224,000, or $0.36 per diluted share, for the three months
 ended March 31, 2001 compared to earnings recorded in the first quarter of
 2000 of $3,238,000, or $0.36 per diluted share.  The earnings for the first
 quarter of 2001 represent a return on average assets of 1.41% and a return on
 average equity of 11.73%.
     The essentially flat earnings when comparing the first quarter of 2001 to
 the same quarter of 2000 are primarily a result of virtually unchanged net
 interest income after provision for loan losses, with offsetting increases in
 noninterest income and noninterest expenses.  Net interest income for the
 first quarter of 2001 was 5.5% less than the amount of net interest income
 recorded in the fourth quarter of 2000.  The company attributes the decrease
 in net interest income on a consecutive quarter basis to the significant
 decrease in the interest rate environment that occurred in the first quarter
 of 2001.
     Noninterest income for the first quarter of 2001 increased 24.4% over the
 amount recorded in the first quarter of 2000 primarily as a result of
 increases in service charges on deposit accounts, growth in the company's
 customer base, and higher fees from presold mortgages resulting from a higher
 level of mortgage loan refinancings.  Noninterest expenses for the first
 quarter of 2001 increased 7.4% over the first quarter of 2000 as a result of
 the company's growth.
     The company's annualized net charge-off percentage remained low amounting
 to 3 basis points for the quarter.  Although the company's ratio of
 nonperforming assets to total assets of 0.50% at March 31, 2001 is in line
 with industry averages, it represents an increase from year ago and previous
 quarter end ratios.  The increase in the level of nonperforming assets is
 primarily related to $2.4 million in loans to one borrower that were placed on
 nonaccrual status during the first quarter as a result of liquidity problems
 being experienced by the borrower.  The loans related to this borrower are
 collateralized by various pieces of real estate, the aggregate value of which
 the company believes exceeds the outstanding loan balance.
     During the first quarter of 2001, the company completed its acquisition of
 four branch offices in Scotland and Robeson counties, with total deposits of
 approximately $102 million and consumer loans of approximately $17 million.
 In connection with this acquisition, the company recorded intangible assets of
 approximately $14.4 million.  The acquisition of these branches brought the
 company's total assets to over $1 billion for the first time in the company's
 history.
     During the second quarter of 2001, the company expects to complete its
 acquisition of Century Bancorp, Inc., a one branch institution with
 approximately $105 million in assets located in Thomasville, North Carolina.
     "I am pleased with the earnings being reported today," stated President
 and CEO Jimmie Garner.  "It is encouraging that the company was able to
 maintain steady earnings despite the economic slowdown and significant changes
 in the interest rate environment experienced in the first quarter."
     "The last three months were also important strategically for the company,"
 noted Mr. Garner.  "It marked the first full quarter of integrated operations
 resulting from the First Savings Bancorp merger, as well as the acquisition
 and computer conversion of the four purchased branch offices.  I would again
 like to welcome the new employees and customers of the acquired branches to
 the First Bank family."
     "I also look forward to joining forces soon with Jim Hudson, President and
 CEO of Century Bancorp, and his team of dedicated employees that have created
 such a high quality institution in Thomasville.  We firmly believe we can
 leverage each other's strengths to gain market share in this attractive
 market," added Mr. Garner.
     Mr. Garner noted that, pursuant to the company's share repurchase program
 announced in conjunction with the execution of the merger agreement with
 Century Bancorp, Inc., the company repurchased 94,627 shares of its common
 stock at an average repurchase price of $18.39 per share during the three
 months ended March 31, 2001.  Mr. Garner also noted that the share repurchase
 program has been suspended due to the pending acquisition of Century Bancorp,
 Inc.
     The financial results discussed above reflect the effects of the
 completion of the merger with First Savings Bancorp, Inc., which occurred on
 September 14, 2000.  The merger with First Savings Bancorp, Inc. was accounted
 for as a pooling-of-interests, and therefore all results reported reflect the
 combined results of First Bancorp and First Savings Bancorp, Inc.
     On October 20, 2000, First Bancorp announced the signing of a definitive
 merger agreement to acquire Century Bancorp, Inc.  Century Bancorp is the
 holding company for Home Savings, Inc., SSB, a one branch savings institution
 located in Thomasville, NC, with total assets of $105 million.   All
 regulatory approvals have been received, and this transaction is expected to
 close in the second quarter of 2001.
     First Bancorp is a bank holding company based in Troy, North Carolina.
 Its principal activity is the ownership and operation of First Bank, a state-
 chartered bank that operates 43 branch offices in a fifteen county market area
 centered in the central piedmont region of North Carolina.  First Bancorp's
 common stock is traded on the NASDAQ National Market under the symbol FBNC.
 Broker contacts for market makers of First Bancorp's common stock include Legg
 Mason (Paul Newton at 1-800-628-5770), Scott & Stringfellow, Inc.
 (Jeff O'Quinn at 1-800-763-1893), Sterne, Agee, & Leach, Inc. (Sandy Park at
 1-800-239-6921), Trident Securities (Sadler Stukes at 1-800-340-6321), and
 Wachovia Securities, Inc. (Kel Normann at 1-800-929-1019).
     Please visit our website at www.firstbancorp.com.  For additional
 financial data, please see the attached Financial Summary.  For additional
 information, please contact:
 
     Mr. James H. Garner
     President & Chief Executive Officer
     Telephone: (910) 576-6171
 
     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," 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.
     First Bancorp has filed a proxy statement/prospectus and other documents
 concerning the acquisition of Century Bancorp, Inc. with the United States
 Securities and Exchange Commission ("SEC") and the proxy statement/prospectus
 has been mailed to Century's shareholders.  These documents contain important
 information and we urge Century shareholders to read the proxy
 statement/prospectus and other documents filed with the SEC carefully.  You
 can obtain the documents free from the SEC's website, www.sec.gov.  In
 addition, you may obtain a copy for free from the Corporate Secretary of
 Century Bancorp, Inc., 22 Winston Street, Thomasville, North Carolina 27360,
 telephone (336) 475-4663.
 
 
                         First Bancorp and Subsidiaries
                               Financial Summary
 
                                        Three Months Ended
                                              March 31,               Percent
                                        2000            2001          Change
 
     ($ in thousands except per share data - unaudited)
 
     INCOME STATEMENT
 
     Interest income
      Interest and fees on loans     $16,422           14,171
      Interest on investment
       securities                      1,805            2,532
      Other interest income              197              234
       Total interest income          18,424           16,937           8.8%
 
     Interest expense
      Interest on deposits             8,581            6,833
      Interest on borrowings             524              710
       Total interest expense          9,105            7,543          20.7%
        Net interest income            9,319            9,394          -0.8%
     Provision for loan losses           220              310         -29.0%
     Net interest income after provision
      for loan losses                  9,099            9,084           0.2%
 
     Noninterest income
      Service charges on deposit
       accounts                          908              746
      Other service charges,
       commissions, and fees             580              507
      Fees from presold mortgages        138               89
      Commissions from credit
       insurance sales                   152              145
      Data processing fees                47               20
      Other gains (losses)                37              (10)
       Total noninterest income        1,862            1,497         24.4%
 
     Noninterest expenses
      Personnel expense                3,405            3,189
      Occupancy and equipment expense    775              678
      Intangibles amortization           182              158
      Other operating expenses         1,703            1,621
       Total noninterest expenses      6,065            5,646          7.4%
     Income before income taxes        4,896            4,935         -0.8%
     Income taxes                      1,672            1,697         -1.5%
     Net income                       $3,224            3,238         -0.4%
 
     Effect of nonrecurring items,
      net of taxes                       (24)               6
     Net income, excluding
      nonrecurring items              $3,200            3,244         -1.4%
 
     ADDITIONAL INCOME STATEMENT INFORMATION
 
      Intangibles amortization -
       net of tax benefit               $151              135
 
     Tax equivalent net interest income
     Net interest income, as
      recorded                        $9,319            9,394
     Tax equivalent adjustment           143              151
     Tax equivalent net interest
      income                          $9,462            9,545        -0.9%
 
 
                         First Bancorp and Subsidiaries
                           Financial Summary - page 2
 
 
                                         Three Months Ended
                                             March 31,
                                                                      Percent
     SHARE DATA                         2001            2000           Change
 
 
     Earnings per share -
      basic, as reported               $0.37            0.37             0.0%
     Earnings per share - basic,
      excluding non-recurring items     0.36            0.37            -2.7%
     Earnings per share - diluted,
      as reported                       0.36            0.36             0.0%
     Earnings per share - diluted,
      excluding non-recurring items     0.36            0.36             0.0%
     Cash dividends declared            0.22            0.17            29.4%
     Stated book value                 12.66           12.15             4.2%
     Tangible book value               10.50           11.57            -9.2%
     Common shares outstanding at
      end of period                8,755,161       8,911,475
     Weighted average shares
      outstanding - basic          8,774,877       8,865,941
     Weighted average shares
      outstanding - diluted        8,987,252       9,098,387
 
     SELECTED RATIOS
     Return on average assets,
      as reported                       1.41%           1.47%
     Return on average assets,
      excluding non-recurring items     1.40%           1.47%
     Return on average equity,
      as reported                      11.73%          11.99%
     Return on average equity,
      excluding non-recurring items    11.64%          12.01%
     Net interest margin -
      tax equivalent                    4.35%           4.56%
     Efficiency ratio -
      tax equivalent, as reported      53.56%          51.13%
     Efficiency ratio -
      tax equivalent, excluding
      non-recurring items              53.73%          51.09%
     Shareholders' equity to assets    10.73%          11.78%
 
     TREND INFORMATION
     ($ in thousands except share data)
 
                                   For the Three Months Ended
                   March 31,  Dec. 31, Sept. 30, June 30, March 31, One Year
                     2001       2000     2000      2000    2000     Change
 
     Net interest income
      - tax
      equivalent$    9,462    10,014     9,841    9,889    9,545    -0.9%
     Taxable equivalent
      adjustment       143       149       146      148      151    -5.3%
     Net interest
      income
                     9,319     9,865     9,695    9,741    9,394    -0.8%
     Provision for loan
      losses - recurring
      in nature        220       240       285      350      310   -29.0%
     Noninterest income -
      recurring in
      nature         1,825     1,469     1,451    1,419    1,507    21.1%
     Noninterest expense-
      recurring in
      nature         6,065     6,129     5,915    5,863    5,646     7.4%
     Nonrecurring
      items, net(A)     37       811    (5,614)      88      (10)    n/m
     Income (loss) before
      income taxes   4,896     5,776      (668)   5,035    4,935    -0.8%
     Income taxes    1,672     2,033       255    1,751    1,697    -1.5%
     Net income
      (loss)         3,224     3,743      (923)   3,284    3,238    -0.4%
     Nonrecurring (income)/
      expense, net
      of taxes         (24)     (492)    4,065      (54)       6     n/m
     Net income,
      excluding
      nonrecurring
      items          3,200     3,251     3,142    3,230    3,244    -1.4%
 
     Earnings (loss)
      per share - basic,
      as reported     0.37      0.42     (0.10)    0.37     0.37     0.0%
     Earnings per share -
      basic, excluding
      non-recurring
      items           0.36      0.37      0.35     0.36     0.37    -2.7%
     Earnings (loss)
      per share -
      diluted         0.36      0.41     (0.10)    0.36     0.36     0.0%
     Earnings per share -
      diluted, excluding
      non-recurring
      items           0.36      0.36      0.35     0.35     0.36     0.0%
 
      (A)  Includes gains and losses from securities sales, loan sales, fixed
           assets, other real estate, and other nonrecurring items.  The
           quarter ended September 30, 2000 also includes merger expenses
           totaling $3,188,000 and a provision for loan losses entry for
           $420,000 to conform an acquired institution's credit risk practices
           to those of First Bancorp.
 
 
                            First Bancorp and Subsidiaries
                                  Financial Summary
 
                     March 31,  Dec. 31, Sept. 30 June 30, March 31, One Year
     PERIOD END        2001       2000    2000      2000     2000     Change
      BALANCES
     Assets       $ 1,033,078    915,167 928,820  954,887   918,490    12.5%
     Securities       110,441    117,521 107,299  157,692   162,820   -32.2%
     Loans            770,749    746,089 730,134  704,714   673,089    14.5%
     Allowance for
      loan losses       8,386      7,893   7,773    7,143     6,908    21.4%
     Intangible assets 18,910      4,630   4,788    4,946     5,104   270.5%
     Deposits         887,813    770,379 769,008  752,787   731,392    21.4%
     Borrowings        26,200     26,200  41,200   84,000    70,500   -62.8%
     Shareholders'
      equity          110,802    110,684 109,961  110,700   108,244     2.4%
 
 
                                     For the Three Months Ended
          YIELD
      INFORMATION     March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
                        2001      2000     2000     2000     2000     Change(B)
     Yield on loans     8.85%      9.03%   8.97%    8.85%     8.64%    21 bp
     Yield on securities
      - tax equivalent  6.97%    6.82%     6.93%    6.43%     6.44%    53 bp
     Yield on other
      earning assets    5.37%    7.38%     6.26%    6.63%     6.14%   -77 bp
     Yield on all interest
      earning assets    8.54%    8.70%     8.57%    8.36%     8.16%    38 bp
     Rate on interest
      bearing deposits  4.94%    4.95%     4.79%    4.41%     4.20%    74 bp
     Rate on other
      interest bearing
      liabilities       6.45%    6.43%     7.17%    6.31%     5.62%    83 bp
     Rate on all interest
      bearing
      liabilities       5.00%    5.00%     4.95%    4.57%     4.30%    70 bp
     Interest rate spread -
      tax equivalent    3.54%    3.70%     3.62%    3.79%     3.86%   -32 bp
     Net interest margin
      - tax
      equivalent (A)    4.35%    4.54%     4.41%    4.56%     4.56%   -21 bp
     Average prime rate 8.64%    9.50%     9.50%    9.25%     8.69%    -5 bp
 
     (A)  Calculated by dividing annualized tax equivalent net interest income
          by average earning assets for the period.
     (B)  Expressed in terms of change in basis points from previous year.
 
 
 
      ASSET QUALITY   March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
        DATA            2001       2000     2000     2000      2000    Change
 
     Nonaccrual loans $ 3,598        626     992      738     1,199   200.1%
     Restructured loans   231        237     243      249       252    -8.3%
     Total nonperforming
      loans             3,829        863   1,235      987     1,451   163.9%
     Other real estate  1,324        893     738      767       997    32.8%
     Total nonperforming
      assets           $5,153      1,756   1,973    1,754     2,448   110.5%
     Net charge-offs to
      average loans -
      annualized         0.03%      0.06%   0.04%    0.07%     0.05%     -2 bp*
     Nonperforming loans
      to total loans     0.50%      0.12%   0.17%    0.14%     0.22%     28 bp*
     Nonperforming assets
      to total assets    0.50%      0.19%   0.21%    0.18%     0.27%     23 bp*
     Allowance for loan
      losses to total
      loans              1.09%      1.06%   1.06%    1.01%     1.03%      6 bp*
 
 
     * Expressed in terms of change in basis points from previous year.
 
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 SOURCE  First Bancorp