First Bancorp Reports Fourth Quarter and Annual Earnings
TROY, N.C., Feb. 8 /PRNewswire-FirstCall/ -- First Bancorp (Nasdaq: FBNC), the parent company of First Bank, announced today fourth quarter net income available to common shareholders of $4.3 million compared to $5.0 million reported in the fourth quarter of 2008. Earnings per diluted common share were $0.25 in the fourth quarter of 2009 compared to $0.30 in the fourth quarter of 2008. For the year ended December 31, 2009, the Company reported net income available to common shareholders of $56.3 million compared to $22.0 million reported for 2008. Earnings per diluted common share were $3.37 for the year ended December 31, 2009 compared to $1.37 for 2008.
Several significant factors affect the comparability of the 2009 and 2008 results, including the following:
- In the second quarter of 2009, the Company realized a $67.9 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 $41.1 million, or $2.46 per diluted common share.
- The Company recorded acquisition related expenses related to Cooperative Bank totaling $1,343,000, consisting primarily of professional fees. The after-tax impact of these expenses was $813,000 (or $0.05 per diluted common share).
- The Company recorded approximately $1.0 million in preferred stock dividends in each quarter of 2009 related to the January 12, 2009 issuance of preferred stock to the U.S. Treasury. For the year ended December 31, 2009, total preferred stock dividends of $4.0 million reduced the Company's net income available to common shareholders.
- FDIC insurance expense amounted to $5.5 million in 2009 compared to $1.2 million in 2008. The after-tax impact of the increase in this expense was $2.6 million (or $0.16 per diluted common share).
Update on Cooperative Bank Acquisition
On June 19, 2009, First Bank acquired substantially all of the assets and liabilities of Cooperative Bank, which had been closed earlier that day by regulatory authorities. Cooperative Bank operated through twenty-one branches in North Carolina and three branches in South Carolina. In connection with the acquisition, First Bank assumed assets with a book value of $958 million, including $829 million in loans and $706 million in deposits. 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 covers 80% of loan and foreclosed real estate losses up to $303 million and 95% of losses that exceed that amount.
First Bank received a $123 million discount on the assets acquired and paid no deposit premium, which, after applying initial estimates of purchase accounting fair market value adjustments to the acquired assets and assumed deposits, resulted in an original gain of $53.8 million.
During the third and fourth quarters of 2009, the Company obtained third-party appraisals for the majority of Cooperative's collateral dependent problem loans. Overall, the appraised values were higher than the Company's original estimates made as of the acquisition date. In addition, subsequent to June 19, the Company received payoffs related to certain loans for which losses had been anticipated. Accordingly, as required by relevant accounting rules, the Company retrospectively adjusted the fair value of the loans acquired for these factors, which resulted in the acquisition gain that was recorded in the second quarter of 2009 increasing by $8.3 million for information determined in the third quarter of 2009 and by an additional $5.8 million for information determined in the fourth quarter of 2009. Thus, the originally stated second quarter of 2009 gain of $53.8 million has been increased to $67.9 million, all on a retroactive basis. The Company continues to obtain more information regarding the fair value of the assets acquired. Fair values are subject to refinement for up to one year after the closing date of the acquisition as information relative to closing date fair values becomes available, and thus the gain could be adjusted again (up or down) in the future during the one year period.
On October 9, 2009, First Bank successfully converted Cooperative's loan and deposit records to First Bank's computer system. Also on that day, five branches were consolidated in market areas in which First Bank branches were in close proximity with former Cooperative Bank branches. On December 11, 2009, two additional branches were consolidated with existing First Bank branches.
Balance Sheet and Capital
Total assets at December 31, 2009, including the impact of Cooperative, amounted to $3.5 billion, 28.9% higher than a year earlier. Total loans at December 31, 2009 amounted to $2.7 billion, a 20.0% increase from a year earlier, and total deposits amounted to $2.9 billion at December 31, 2009, a 41.4% increase from a year earlier.
Excluding the effects of the Cooperative acquisition, the Company experienced a general decline in loans and an increase in deposits during 2009. Excluding the impact of Cooperative, loans declined approximately 4% in 2009. The Company continues to originate and renew a significant amount of loans each month, but normal paydowns of loans have exceeded new loan growth. Excluding the impact of Cooperative, the Company experienced deposit growth of approximately 7% in 2009. Additionally, the Company has steadily lessened its reliance on brokered deposits and internet deposits since the Cooperative acquisition. Brokered deposits comprised just 2.6% of total deposits at December 31, 2009, with internet deposits comprising an additional 4.4%.
The combination of lower loans and higher deposits has significantly enhanced the Company's liquidity during 2009 and lessened its reliance on borrowings. At December 31, 2009, the Company's cash balances exceeded $350 million, a 56% increase from a year earlier, while borrowings declined by approximately $190 million during the year.
The Company remains well-capitalized by all regulatory standards with a Tier I Leverage Ratio of 9.30%, a Tier I Risk-Based Capital Ratio of 13.90% and a Total Risk-Based Capital Ratio of 15.15%. The Company's tangible common equity to tangible assets ratio was 5.94% at December 31, 2009. The Company continues to have $65 million in outstanding preferred stock that was issued to the US Treasury in January 2009. The Company has no immediate plans to redeem this stock in light of the challenging economic conditions.
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2009 amounted to $31.0 million, a 37.9% increase over the fourth quarter of 2008. Net interest income for the year ended December 31, 2009 amounted to $86.9 million, a 13.3% increase from 2008.
The increases in net interest income were primarily due to 1) the higher average balances of loans and deposits previously discussed, and 2) a higher net interest margin.
The Company's net interest margin (tax-equivalent net interest income divided by average earnings assets) in the fourth quarter of 2009 was 3.92%, a five basis point increase from the 3.87% margin realized in the third quarter of 2009, and a 22 basis point increase from the 3.70% margin realized in the fourth quarter of 2008. The Company's net interest margin for 2009 was 3.81% compared to 3.74% for 2008. During 2009, there were no changes in the interest rates set by the Federal Reserve, and the Company was able to reprice at lower rates maturing time deposits that had been originated in periods of higher interest rates.
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 significantly higher provisions for loan losses. The Company's provision for loan losses amounted to $6.6 million in the fourth quarter of 2009 compared to $3.4 million in the fourth quarter of 2008. The provision for loan losses for the year ended December 31, 2009 was $20.2 million compared to $10.0 million recorded in 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 the loan portfolio acquired from Cooperative 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 at December 31, 2009 amounted to $92 million at December 31, 2009 compared to $66 million at September 30, 2009 and $35 million at December 31, 2008. At December 31, 2009, the ratio of non-covered nonperforming assets to total non-covered assets was 3.10% compared to 2.21% at September 30, 2009, and 1.29% at December 31, 2008.
Within non-covered nonperforming assets, troubled debt restructurings increased from $7 million at September 30, 2009 to $21 million at December 31, 2009. This increase was a result of the Company working with borrowers experiencing financial difficulties by modifying certain loan terms and was also impacted by the Company's analysis of the Federal Reserve's October 2009 guidance related to real estate loan workouts, which provided clarification of situations involving borrowers that should be reported as troubled debt restructurings. At December 31, 2009, all of the Company's troubled debt restructurings were performing in accordance with their restructured terms, with none of them being past due.
The Company's ratio of annualized net charge-offs to average non-covered loans was 0.69% for the fourth quarter of 2009 compared to 0.38% in the fourth quarter of 2008. For the year ended December 31, 2009, the Company's ratio of net charge-offs to average non-covered loans was 0.56% compared to 0.24% for 2008.
The Company's nonperforming assets that are covered by FDIC loss share agreements have increased from $91 million at June 30, 2009 to $165 million at December 31, 2009. The Company continues to submit claims to the FDIC on a regular basis and has received total cash reimbursements from the FDIC of approximately $40 million pursuant to the loss-share agreements since the Cooperative acquisition.
Noninterest Income
Total noninterest income was $6.3 million in the fourth quarter of 2009, a 26.1% increase from the $5.0 million recorded in the fourth quarter of 2008, with the increase being attributable to a larger customer base as a result of the Cooperative acquisition and an increase in fees received from presold mortgages. Mortgage refinance activity has increased due to a favorable interest environment.
Noninterest income for the year ended December 31, 2009 amounted to $89.5 million compared to $21.1 million for 2008. The primary reason for the increase was the $67.9 million gain realized from the Cooperative acquisition that occurred in June 2009, as discussed above.
Noninterest Expenses
Noninterest expenses amounted to $22.5 million in the fourth quarter of 2009, a 39.7% increase over the $16.1 million recorded in the same period of 2008. Noninterest expenses for the year ended December 31, 2009 amounted to $78.6 million, a 25.4% increase from the $62.7 million recorded in 2008.
Incremental operating expenses associated with the Cooperative acquisition were the primary reason for the increases in 2009. Additionally, FDIC insurance expense amounted to $1.0 million and $5.5 million for the three and twelve months ended December 31, 2009, compared to $0.3 million and $1.2 million for the comparable periods of 2008, respectively. Included in the $5.5 million in FDIC insurance expense for the year ended December 31, 2009 is $1.6 million related to a special assessment that was levied by the FDIC on all banks in the second quarter of 2009.
In the fourth quarter of 2009, the Company recorded acquisition related expenses related to Cooperative Bank of $261,000 consisting primarily of professional fees. The Company recorded $1.3 million in acquisition related expenses for the year ended December 31, 2009.
The Company's effective tax rate was approximately 36%-38% for all periods presented.
Comments of the President and Other Business Matters
Jerry L. Ocheltree, President and CEO of First Bancorp, commented on today's report, "In light of the current economic environment, I am pleased with the solid results we are reporting today. We continue to remain a profitable and sound institution that is well-positioned for the future. During the second half of 2009, we successfully integrated the Cooperative acquisition, and I would like to thank all of our employees for their hard work in continuing to take care of their customers during the transition."
Mr. Ocheltree noted the following other corporate developments:
- On September 14, 2009, the Company reported that it had been recognized for the second year in a row by investment banking firm Sandler O'Neill & Partners, L.P., as one of the top performing small-cap banks in the nation. New York-based Sandler O'Neill is one of the best-known and most highly regarded investment firms specializing in the commercial banking industry. Please contact the Company if you would like a copy of this press release.
- First Bank has elected to continue to participate in the FDIC's Transaction Account Guarantee Program. Under the program, through June 30, 2010, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under this program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.
- The Company has received regulatory approval to open a full-service bank branch in Christiansburg, Virginia. Construction of a branch facility has begun and the Company anticipates the opening the branch in the spring of 2010. This will be the Company's sixth branch in southwestern Virginia.
- On December 11, 2009, First Bank moved into a newly constructed branch office in Leland, North Carolina that was in close proximity to two existing First Bank branches. The two existing branches were closed.
- On December 11, 2009, First Bank closed its bank branch located at Market Commons in Myrtle Beach, South Carolina. Customer accounts were transferred to First Bank's branch located in Little River, South Carolina.
- On November 18, 2009, the Company announced a quarterly cash dividend of $0.08 cents per share payable on January 25, 2010 to shareholders of record on December 31, 2009. This is the same dividend rate as the Company declared in each of the first three quarters 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 was 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 91 branches, with 77 branches operating in the central piedmont and coastal regions of North Carolina, 9 branches in South Carolina (Cheraw, Dillon, Florence, Latta, Jefferson, 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.
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First Bancorp and Subsidiaries
Financial Summary
------------------------------------------------------------------------
Three Months Ended
($ in thousands except per December 31, Percent
share data -unaudited) 2009 2008 Change
-------------------------- ---- ---- ------
INCOME STATEMENT
Interest income
---------------
Interest and fees on loans $40,411 34,569
Interest on investment
securities 1,751 1,983
Other interest income 252 81
------ ------
Total interest income 42,414 36,633 15.8%
------ ------
Interest expense
----------------
Interest on deposits 10,700 12,307
Other, primarily borrowings 681 1,817
------ ------
Total interest expense 11,381 14,124 (19.4%)
------ ------
Net interest income 31,033 22,509 37.9%
Provision for loan losses 6,575 3,437 91.3%
------ ------
Net interest income after
provision for loan losses 24,458 19,072 28.2%
------ ------
Noninterest income
------------------
Service charges on deposit
accounts 3,819 3,387
Other service charges,
commissions, and fees 1,306 1,030
Fees from presold mortgages 658 212
Commissions from financial
product sales 360 378
Data processing fees 36 27
Securities gains 9 --
Other gains (losses) 67 (73)
----- -----
Total noninterest income 6,255 4,961 26.1%
----- -----
Noninterest expenses
--------------------
Personnel expense 11,760 8,856
Occupancy and equipment
expense 3,143 2,132
Intangibles amortization 216 107
Acquisition expenses 261 --
Other operating expenses 7,078 4,981
------ ------
Total noninterest expenses 22,458 16,076 39.7%
------ ------
Income before income taxes 8,255 7,957 3.7%
Income taxes 2,987 2,956 1.0%
------ -----
Net income $5,268 5,001 5.3%
Preferred stock dividends and
accretion (1,014) --
------ -----
Net income available to
common shareholders $4,254 5,001 (14.9%)
====== =====
Earnings per common share –
basic $0.25 0.30 (16.7%)
Earnings per common share –
diluted 0.25 0.30 (16.7%)
ADDITIONAL INCOME STATEMENT INFORMATION
---------------------------------------
Net interest income, as
reported $31,033 22,509
Tax-equivalent adjustment (1) 247 166
------- ------
Net interest income, tax-
equivalent $31,280 22,675 37.9%
======= ======
(1) This amount reflects the tax benefit that the Company receives
related to its tax-exempt loans and securities, which carry interest
rates lower than similar taxable investments due to their tax exempt
status. This amount has been computed assuming a 39% tax rate and is
reduced by the related nondeductible portion of interest expense.
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First Bancorp and Subsidiaries
Financial Summary - Page 2
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Twelve Months Ended
($ in thousands except per share December 31, Percent
data -unaudited) 2009 2008 Change
-------------------------------- ---- ---- ------
INCOME STATEMENT
Interest income
---------------
Interest and fees on loans $148,007 138,878
Interest on investment securities 7,439 7,973
Other interest income 545 1,011
------- -------
Total interest income 155,991 147,862 5.5%
------- -------
Interest expense
----------------
Interest on deposits 45,518 53,241
Other, primarily borrowings 3,377 8,062
------- ------
Total interest expense 48,895 61,303 (20.2%)
------- ------
Net interest income 107,096 86,559 23.7%
Provision for loan losses 20,186 9,880 104.3%
------- ------
Net interest income after
provision for loan losses 86,910 76,679 13.3%
------- ------
Noninterest income
------------------
Service charges on deposit
accounts 13,854 13,535
Other service charges,
commissions, and fees 4,848 4,842
Fees from presold mortgages 1,505 869
Commissions from financial product
sales 1,524 1,552
Data processing fees 139 167
Gain from acquisition 67,894 --
Securities gains (losses) (104) (14)
Other gains (losses) (142) 156
------ ------
Total noninterest income 89,518 21,107 324.1%
------ ------
Noninterest expenses
--------------------
Personnel expense 41,588 35,446
Occupancy and equipment expense 10,405 8,280
Intangibles amortization 630 416
Acquisition expenses 1,343 --
Other operating expenses 24,585 18,519
------ ------
Total noninterest expenses 78,551 62,661 25.4%
------ ------
Income before income taxes 97,877 35,125 178.7%
Income taxes 37,618 13,120 186.7%
------ ------
Net income $60,259 22,005 173.8%
Preferred stock dividends and
accretion (3,972) --
------ ------
Net income available to common
shareholders $56,287 22,005 155.8%
======= ======
Earnings per common share - basic $3.38 1.38 144.9%
Earnings per common share -
diluted 3.37 1.37 146.0%
ADDITIONAL INCOME STATEMENT
INFORMATION
---------------------------
Net interest income, as reported $107,096 86,559
Tax-equivalent adjustment (1) 818 658
-------- ------
Net interest income, tax-
equivalent $107,914 87,217 23.7%
======== ======
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments
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First Bancorp and Subsidiaries
Financial Summary - page 3
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Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
PERFORMANCE RATIOS
(annualized) 2009 2008 2009 2008
---- ---- ---- ----
Return on
average assets (1) 0.48% 0.76% 1.82% 0.89%
Return on
average common
equity (2) 6.15% 8.85% 22.55% 10.44%
Net interest
margin -tax
equivalent (3) 3.92% 3.70% 3.81% 3.74%
Efficiency ratio
-tax equivalent (3) (4) 59.83% 58.17% 39.79% 57.85%
Net charge-offs
to average non-
covered loans 0.69% 0.38% 0.56% 0.24%
COMMON SHARE
DATA
Cash dividends
declared -
common $0.08 0.19 $0.32 0.76
Stated book
value -common 16.62 13.27 16.62 13.27
Tangible book
value -common 12.37 9.18 12.37 9.18
Common shares
outstanding at
end of period 16,693,157 16,573,826 16,693,157 16,573,826
Weighted average
shares
outstanding -
basic 16,685,350 16,555,051 16,648,822 15,980,533
Weighted average
shares
outstanding -
diluted 16,723,524 16,584,871 16,686,880 16,027,144
CAPITAL RATIOS
Tangible equity
to tangible
assets 7.81% 5.67% 7.81% 5.67%
Tangible common
equity to
tangible assets 5.94% 5.67% 5.94% 5.67%
Tier I leverage
ratio 9.30% 8.10% 9.30% 8.10%
Tier I risk-
based capital
ratio 13.90% 9.40% 13.90% 9.40%
Total risk-
based capital
ratio 15.15% 10.65% 15.15% 10.65%
AVERAGE BALANCES
($ in thousands)
Total assets $3,520,632 2,602,205 $3,097,137 2,484,296
Loans 2,685,090 2,212,119 2,475,045 2,117,028
Earning assets 3,162,966 2,440,535 2,833,167 2,329,025
Deposits 2,913,738 2,031,877 2,549,709 1,985,332
Interest-bearing
liabilities 2,859,989 2,126,035 2,497,304 2,019,256
Shareholders'
equity 339,321 224,703 313,173 210,810
(1) Calculated by dividing annualized net income available to common
shareholders by average assets.
(2) Calculated by dividing annualized net income available to common
shareholders by average common equity.
(3) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
(4) Calculated by dividing noninterest expense by the sum of
tax-equivalent net interest income plus noninterest income.
-------------------------------------------------------------------------
TREND INFORMATION
($ in thousands except per
share data) For the Three Months Ended
--------------------------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
INCOME STATEMENT 2009 2009 2009 2009 2008
------- -------- ------- -------- -------
Net interest
income -tax
equivalent (1) $31,280 30,731 23,630 22,273 22,675
Taxable
equivalent
adjustment (1) 247 221 187 163 166
Net interest
income 31,033 30,510 23,443 22,110 22,509
Provision for
loan losses 6,575 5,200 3,926 4,485 3,437
Noninterest
income 6,255 5,741 72,776 4,746 4,961
Noninterest
expense 22,458 20,953 19,203 15,937 16,076
Income before
income taxes 8,255 10,098 73,090 6,434 7,957
Income taxes 2,987 3,716 28,562 2,353 2,956
Net income 5,268 6,382 44,528 4,081 5,001
Preferred stock
dividends and
accretion 1,014 995 1,022 941 --
Net income
available to
common
shareholders 4,254 5,387 43,506 3,140 5,001
Earnings per
common share –
basic 0.25 0.32 2.62 0.19 0.30
Earnings per
common share –
diluted 0.25 0.32 2.61 0.19 0.30
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
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First Bancorp and Subsidiaries
Financial Summary - page 4
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CONSOLIDATED
BALANCE SHEETS At Dec. 31, At Sept. 30, At Dec. 31, One Year
($ in thousands) 2009 2009 2008 Change
---------- ---------- ---------- --------
Assets
Cash and due from
banks $60,071 43,667 88,015 -31.7%
Interest bearing
deposits with
banks 290,801 240,425 136,765 112.6%
------- ------- -------
Total cash and
cash equivalents 350,872 284,092 224,780 56.1%
------- ------- -------
Investment
securities 214,168 196,607 187,183 14.4%
Presold mortgages 3,967 8,420 423
Loans – non-
covered 2,132,843 2,147,615 2,211,315 -3.5%
Loans – covered
by FDIC loss
share agreement 520,022 578,485 -− n/m
--------- --------- ---------
Total loans 2,652,865 2,726,100 2,211,315 20.0%
Allowance for
loan losses (37,343) (34,444) (29,256) 27.6%
--------- --------- ---------
Net loans 2,615,522 2,691,656 2,182,059 19.9%
--------- --------- ---------
Premises and
equipment 54,159 52,868 52,259 3.6%
FDIC loss share
receivable 143,221 187,029 -- n/m
Intangible assets 70,948 71,165 67,780 4.7%
Other assets 92,499 33,657 36,083 156.4%
---------- --------- ---------
Total assets $3,545,356 3,525,494 2,750,567 28.9%
========== ========== =========
Liabilities
Deposits:
Non-interest
bearing demand $272,422 268,097 229,478 18.7%
NOW accounts 362,366 264,267 198,775 82.3%
Money market
accounts 496,940 477,092 340,739 45.8%
Savings accounts 149,338 142,391 125,240 19.2%
Brokered time
deposits 76,332 122,634 78,569 -2.8%
Internet time
deposits 128,024 158,680 5,206 n/m
Other time
deposits >
$100,000 704,128 706,343 520,198 35.4%
Other time
deposits 743,558 782,136 576,586 29.0%
--------- --------- ---------
Total deposits 2,933,108 2,921,640 2,074,791 41.4%
Repurchase
agreements 64,058 58,209 61,140 4.8%
Borrowings 176,811 176,927 367,275 -51.9%
Other liabilities 28,996 32,336 27,493 5.5%
--------- --------- ---------
Total liabilities 3,202,973 3,189,112 2,530,699 26.6%
--------- --------- ---------
Shareholders'
equity
Preferred stock 65,000 65,000 -- n/m
Discount on
preferred stock (3,789) (3,990) -- n/m
Common stock 98,099 97,745 96,072 2.1%
Common stock
warrants 4,592 4,592 -- n/m
Retained earnings 182,908 179,988 131,952 38.6%
Accumulated other
comprehensive
income (4,427) (6,953) (8,156) 45.7%
------- ------- -------
Total
shareholders'
equity 342,383 336,382 219,868 55.7%
------- ------- -------
Total liabilities
and shareholders'
equity $3,545,356 3,525,494 2,750,567 28.9%
========== ========= =========
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First Bancorp and Subsidiaries
Financial Summary - page 5
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For the Three Months Ended
--------------------------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
YIELD INFORMATION 2009 2009 2009 2009 2008
------- -------- ------- -------- -------
Yield on
loans 5.97% 6.01% 6.00% 5.99% 6.22%
Yield on securities-
tax equivalent (1) 3.97% 4.23% 4.46% 4.80% 4.63%
Yield on other
earning assets 0.36% 0.34% 0.26% 0.22% 0.74%
Yield on all
interest earning
assets 5.35% 5.45% 5.65% 5.74% 6.00%
Rate on interest
bearing deposits 1.61% 1.82% 2.24% 2.47% 2.72%
Rate on other
interest bearing
liabilities 1.17% 1.36% 2.40% 1.97% 2.22%
Rate on all
interest bearing
liabilities 1.58% 1.78% 2.25% 2.42% 2.64%
Interest rate
spread-tax
equivalent (1) 3.77% 3.72% 3.40% 3.32% 3.36%
Net interest
margin-tax
equivalent (2) 3.92% 3.87% 3.74% 3.68% 3.70%
Average prime
rate 3.25% 3.25% 3.25% 3.25% 4.06%
(1) See footnote 1 on page 1 of Financial Summary for discussion of
tax-equivalent adjustments.
(2) Calculated by dividing annualized tax equivalent net interest income
by average earning assets for the period. See footnote 1 on page 1 of
Financial Summary for discussion of tax-equivalent adjustments.
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ASSET QUALITY DATA Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
($ in thousands) 2009 2009 2009 2009 2008
------- -------- ------- -------- -------
Nonaccrual loans –
non-covered $62,206 51,015 43,210 35,296 26,600
Nonaccrual loans –
covered by FDIC loss
share (1) 117,916 122,308 78,413 -- --
Restructured loans –
non-covered 21,283 6,963 3,995 3,995 3,995
Accruing loans > 90 days
past due –- –- -– –- -–
------- ------- ------- ------- -------
Total non-
performing loans 201,405 180,286 125,618 39,291 30,595
Other real estate –
non-covered 8,793 7,549 6,032 5,428 4,832
Other real estate –
covered by FDIC loss
share 47,430 10,439 12,415 –- -–
-------- ------- ------- ------- -------
Total non-
performing
assets $257,628 198,274 144,065 44,719 35,427
======== ======= ======= ======= =======
Total non-
performing
assets –
non-covered $92,282 65,527 53,237 44,719 35,427
======== ======= ======= ======= =======
Asset Quality Ratios –
All Assets
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Net charge-offs to
average loans -
annualized 0.54% 0.57% 0.47% 0.34% 0.38%
Nonperforming loans to
total loans 7.59% 6.68% 4.58% 1.80% 1.38%
Nonperforming assets to
total assets 7.27% 5.63% 4.09% 1.66% 1.29%
Allowance for loan
losses to total loans 1.41% 1.28% 1.21% 1.46% 1.32%
Allowance for loan
losses to nonperforming
loans 18.54% 19.11% 26.42% 81.22% 95.62%
Asset Quality Ratios –
Based on Non-covered Assets only
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Net charge-offs to
average non-covered
loans - annualized 0.69% 0.72% 0.49% 0.34% 0.38%
Non-covered nonperforming
loans to non-covered
loans 3.91% 2.70% 2.17% 1.80% 1.38%
Non-covered nonperforming
assets to total
non-covered assets 3.10% 2.21% 1.81% 1.66% 1.29%
Allowance for loan losses
to non-covered loans 1.75% 1.60% 1.53% 1.46% 1.32%
Allowance for loan losses
to non-covered
nonperforming loans 44.73% 59.41% 70.30% 81.22% 95.62%
(1) At December 31, 2009, the contractual balance of the nonaccrual
loans covered by the FDIC loss share agreement was $192.1 million.
SOURCE First Bancorp
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