First Bancorp Reports Third Quarter Results

Oct 28, 2010, 16:00 ET from First Bancorp

TROY, N.C., Oct. 28 /PRNewswire-FirstCall/ -- First Bancorp (Nasdaq: FBNC), the parent company of First Bank, announced today net income available to common shareholders of $2.8 million, or $0.17 per diluted common share, for the three months ended September 30, 2010 and $9.1 million, or $0.54 per diluted common share, for the nine months ended September 30, 2010.  For the three and nine months ended September 30, 2009, the Company reported earnings of $5.4 million, or $0.32 per diluted common share, and $52.0 million, or $3.12 per diluted common share, respectively.

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.  The after-tax impact of this gain was $41.1 million, or $2.46 per diluted common share.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2010 amounted to $31.1 million, a 1.8% increase over the third quarter of 2009.  This increase was due to a higher net interest margin, which was partially offset by a lower level of earning assets due to a contraction of the balance sheet over the past twelve months (see below).

Net interest income for the nine months ended September 30, 2010 amounted to $93.8 million, a 23.3% increase over the comparable period of 2009.  This increase was due to a higher net interest margin, as well as balance sheet growth realized from the June 2009 Cooperative Bank acquisition.

The Company's net interest margin (tax-equivalent net interest income divided by average earnings assets) in the third quarter of 2010 was 4.30% and a 47 basis point increase from the 3.83% margin realized in the third quarter of 2009.  For the nine months ended September 30, 2010, the net interest margin was 4.27%, a 51 basis point increase compared to 3.76% for the comparable period of 2009.  The primary reason the higher net interest margins in 2010 is that the Company has been able to lower rates on maturing time deposits that were originated in periods of higher interest rates.  Also, the Company has experienced declines in higher cost deposit accounts.

The third quarter 2010 net interest margin of 4.30% was a slight decline from the 4.35% margin experienced in the second quarter of 2010.  This decline was impacted by a lower level of purchase accounting adjustments, which have increased net interest income and are primarily associated with the Cooperative Bank acquisition.  See page 5 of the Financial Summary for a table that presents the impact of purchase accounting adjustments.

Provision for Loan Losses and Asset Quality

The Company's provision for loan losses amounted to $8.4 million in the third quarter of 2010 compared to $8.0 million in the second quarter of 2010 and $5.2 million in the third quarter of 2009.  The provision for loan losses for the nine months ended September 30, 2010 was $24.0 million compared to $13.6 million for the comparable period in 2009.  

The higher provision for loan losses is a result of higher levels of classified and nonperforming assets and the impact of declining real estate values on the Company's collateral dependent real estate loans.  The increases in the provisions for loan losses are primarily attributable to the Company's "non-covered" loan portfolio, which excludes loans assumed from Cooperative Bank that are subject to loss share agreements with the FDIC and which were written down to estimated fair market value in connection with initially recording the acquisition.

The Company's non-covered nonperforming assets amounted to $118 million at September 30, 2010, compared to $108 million at June 30, 2010 and $66 million at September 30, 2009.   At September 30, 2010, the ratio of non-covered nonperforming assets to total non-covered assets was 4.16%, compared to 3.89% at June 30, 2010, and 2.23% at September 30, 2009.  

The Company's ratio of annualized net charge-offs to average non-covered loans was 1.06% for the third quarter of 2010 compared to 1.04% in the second quarter of 2010 and 0.72% in the third quarter of 2009.

The Company's nonperforming assets that are covered by FDIC loss share agreements amounted to $181 million at September 30, 2010, compared to $187 million at June 30, 2010 and $133 million at September 30, 2009.  The Company continues to submit reimbursement claims to the FDIC on a regular basis.

Noninterest Income

Total noninterest income was $4.0 million in the third quarter of 2010 compared to $5.7 million for the third quarter of 2009.  The decline in 2010 was primarily a result of a $0.5 million decline in service charges on deposits and $1.4 million in other losses (primarily write-downs, as described below).  The decline in service charges on deposits is primarily due to lower insufficient fund fee charges, which declined during the third quarter of 2010 as a result of less instances of customers overdrawing their accounts.  This was partially a result of new regulations that took effect in the third quarter of 2010 that limit the Company's ability to charge overdraft fees.

Total noninterest income for the nine months ended September 30, 2010 was $14.2 million, compared to $83.3 million for the nine months ended September 30, 2009.  The year-to-date period in 2009 includes a $67.9 million gain related to the June 2009 acquisition of Cooperative Bank.  Most other categories of noninterest income increased as a result of the larger customer base that resulted from the Cooperative Bank acquisition.  

For the three and nine months ended September 30, 2010, the Company recorded $1.3 million and $2.5 million, respectively, in write-downs (net of FDIC reimbursable amounts) on foreclosed properties covered by FDIC loss sharing agreements, which is included in "Other gains (losses)" in the accompanying schedules.   The write-downs were necessary as a result of updated appraisals obtained on foreclosed real estate properties during the respective periods.

Noninterest Expenses

Noninterest expenses amounted to $20.7 million in the third quarter of 2010, a 1.2% decrease from the $21.0 million recorded in the same period of 2009.  Noninterest expenses for the nine months ended September 30, 2010 amounted to $64.9 million, a 15.8% increase from the $56.1 million recorded in the first nine months of 2009.  This increase is attributable to incremental operating expenses associated with the Cooperative Bank acquisition that occurred in the second quarter of 2009.  Included in other operating expenses for the first nine months of 2010 are approximately $1.8 million in costs (net of FDIC reimbursements) associated with collection activities on loans and foreclosed properties covered by FDIC loss sharing agreements, compared to $0.1 million for the first nine months of 2009.  

Balance Sheet and Capital

Total assets at September 30, 2010 amounted to $3.4 billion, a 4.7% decrease from a year earlier.  Total loans at September 30, 2010 amounted to $2.5 billion, a 7.9% decrease from a year earlier, and total deposits amounted to $2.8 billion at September 30, 2010, a 5.8% decrease from a year earlier.  The contraction of the Company's balance sheet has been primarily a result of weak loan demand, which has allowed the Company to lessen its reliance on higher cost sources of funding, including internet and brokered deposits.

The Company continues to experience a general decline in loans, with loans decreasing approximately $143 million, or 5.4%, since December 31, 2009.  Although the Company originates and renews a significant amount of loans each month, normal paydowns of loans are exceeding new loan growth.  Overall, loan demand remains weak in most of the Company's market areas.

The Company's deposits declined by $182 million, or 6.2%, during the first nine months of 2010.  This decrease was primarily associated with time deposits, which are generally the highest cost source of funds for the Company.  Brokered deposits remained at a low level at September 30, 2010, comprising just 3.4% of total deposits, with internet deposits comprising an additional 1.9%.  

The Company remains well-capitalized by all regulatory standards with a Total Risk-Based Capital Ratio of 16.74% compared to the 10.00% minimum to be considered well-capitalized.  The Company's tangible common equity to tangible assets ratio was 6.55% at September 30, 2010, an increase of 75 basis points from a year earlier.  The Company continues to have outstanding $65 million in preferred stock that was issued to the US Treasury in January 2009.

Comments of the President and Other Business Matters

Jerry L. Ocheltree, President and CEO of First Bancorp, commented on today's report, "I am pleased that our company's strength and high performance allows us to continue to report profits and pay cash dividends during this prolonged period of economic weakness."

"Over the past few months, we have held celebrations throughout our branch network in recognition of First Bank's 75th anniversary.  It has been a privilege to meet so many First Bank customers and say 'thank you.'  To those customers I have not met, let me take this opportunity to say 'Thank you for your business.  We really appreciate it, and we hope we are serving you well,'" stated Mr. Ocheltree.

Mr. Ocheltree noted the following other corporate developments:

  • First Bank recently introduced Mobile Banking, which allows customers access to their bank account using their mobile phone.  Additionally, for iPhone® users, First Bank has an app available that provides one touch access.  For additional information, please visit our website at www.FirstBancorp.com.
  • On August 24, 2010, the Company announced a quarterly cash dividend of $0.08 cents per share payable on October 25, 2010 to shareholders of record on September 30, 2010.  This is the same dividend rate as the Company declared in the third quarter of 2009.
  • There was no stock repurchase activity during 2010.

First Bancorp is a bank holding company headquartered in Troy, North Carolina with total assets of approximately $3.4 billion.  Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that now operates 92 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 6 branches in Virginia (Abingdon, Christiansburg, 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 annual report on Form 10-K.

First Bancorp and Subsidiaries

Financial Summary

Three Months Ended

September 30,

Percent

($ in thousands except per share data - unaudited)

2010

2009

Change

INCOME STATEMENT

Interest income

  Interest and fees on loans

$           36,897

41,404

  Interest on investment securities

1,778

1,882

  Other interest income

135

188

     Total interest income

38,810

43,474

(10.7%)

Interest expense

  Interest on deposits

7,245

12,169

  Other, primarily borrowings

494

795

     Total interest expense

7,739

12,964

(40.3%)

       Net interest income

31,071

30,510

1.8%

Provision for loan losses

8,391

5,200

61.4%

Net interest income after provision for loan losses

22,680

25,310

(10.4%)

Noninterest income

  Service charges on deposit accounts

3,350

3,811

  Other service charges, commissions, and fees

1,325

1,216

  Fees from presold mortgages

404

395

  Commissions from financial product sales

325

333

  Data processing fees

38

  Securities gains (losses)

1

6

  Other gains (losses)

(1,448)

(58)

     Total noninterest income

3,957

5,741

(31.1%)

Noninterest expenses

  Personnel expense

11,309

11,450

  Occupancy and equipment expense

2,812

3,083

  Intangibles amortization

219

218

  Acquisition expenses

290

  Other operating expenses

6,371

5,912

     Total noninterest expenses

20,711

20,953

(1.2%)

Income before income taxes

5,926

10,098

(41.3%)

Income taxes

2,078

3,716

(44.1%)

Net income

$              3,848

6,382

(39.7%)

Preferred stock dividends and accretion

(1,027)

(995)

Net income available to common shareholders

$              2,821

5,387

(47.6%)

Earnings per common share – basic

$               0.17

0.32

(46.9%)

Earnings per common share – diluted

0.17

0.32

(46.9%)

ADDITIONAL INCOME STATEMENT INFORMATION

  Net interest income, as reported

$            31,071

30,510

  Tax-equivalent adjustment (1)

330

221

  Net interest income, tax-equivalent

$            31,401

30,731

2.2%

(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

Nine Months Ended

September 30,

Percent

($ in thousands except per share data - unaudited)

2010

2009

Change

INCOME STATEMENT

Interest income

  Interest and fees on loans

$       112,724

107,596

  Interest on investment securities

5,650

5,688

  Other interest income

463

293

     Total interest income

118,837

113,577

4.6%

Interest expense

  Interest on deposits

23,476

34,818

  Other, primarily borrowings

1,577

2,696

     Total interest expense

25,053

37,514

(33.2%)

       Net interest income

93,784

76,063

23.3%

Provision for loan losses

24,017

13,611

76.5%

Net interest income after provision

     for loan losses

69,767

62,452

11.7%

Noninterest income

  Service charges on deposit accounts

10,408

10,035

  Other service charges, commissions, and fees

4,048

3,542

  Fees from presold mortgages

1,216

847

  Commissions from financial product sales

1,087

1,164

  Data processing fees

32

103

  Gain from acquisition

67,894

  Securities gains (losses)

25

(113)

  Other gains (losses)

(2,628)

(209)

     Total noninterest income

14,188

83,263

(83.0%)

Noninterest expenses

  Personnel expense

33,733

29,828

  Occupancy and equipment expense

8,654

7,262

  Intangibles amortization

654

414

  Acquisition expenses

1,082

  Other operating expenses

21,907

17,507

     Total noninterest expenses

64,948

56,093

15.8%

Income before income taxes

19,007

89,622

(78.8%)

Income taxes

6,780

34,631

(80.4%)

Net income

$        12,227

54,991

(77.8%)

Preferred stock dividends and accretion

(3,080)

(2,958)

Net income available to common shareholders

$          9,147

52,033

(82.4%)

Earnings per share - basic

$           0.55

3.13

(82.4%)

Earnings per share - diluted

0.54

3.12

(82.7%)

ADDITIONAL INCOME STATEMENT INFORMATION

  Net interest income, as reported

$      93,784

76,063

  Tax-equivalent adjustment (1)

956

571

  Net interest income, tax-equivalent

$      94,740

76,634

23.6%

(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

September 30,

Nine Months Ended

September 30,

PERFORMANCE RATIOS (annualized)

2010

2009

2010

2009

Return on average assets (1)

0.34%

0.61%

0.37%

2.35%

Return on average common equity (2)

3.89%

7.86%

4.30%

22.85%

Net interest margin – tax-equivalent (3)

4.30%

3.83%

4.27%

3.76%

Efficiency ratio – tax-equivalent (3) (4)

58.58%

57.45%

59.62%

35.08%

Net charge-offs to average non-covered loans

1.06%

0.72%

1.04%

0.52%

COMMON SHARE DATA

Cash dividends declared - common

$         0.08

0.08

$         0.24

0.24

Stated book value - common

17.04

16.28

17.04

16.28

Tangible book value - common

12.83

12.01

12.83

12.01

Common shares outstanding at end of period

16,785,750

16,671,983

16,785,750

16,671,983

Weighted average shares outstanding - basic

16,779,554

16,664,544

16,754,678

16,636,646

Weighted average shares outstanding - diluted

16,807,135

16,805,770

16,784,032

16,674,649

CAPITAL RATIOS

Tangible equity to tangible assets

8.52%

7.68%

8.52%

7.68%

Tangible common equity to tangible assets

6.55%

5.80%

6.55%

5.80%

Tier I leverage ratio

10.25%

9.18%

10.25%

9.18%

Tier I risk-based capital ratio

15.48%

13.34%

15.48%

13.34%

Total risk-based capital ratio

16.74%

14.59%

16.74%

14.59%

AVERAGE BALANCES ($ in thousands)

Total assets

$ 3,272,161

3,525,812

$ 3,343,223

2,955,972

Loans

2,529,356

2,763,178

2,577,640

2,405,030

Earning assets

2,894,660

3,180,200

2,966,424

2,723,234

Deposits

2,777,358

2,923,300

2,835,494

2,428,366

Interest-bearing liabilities

2,613,762

2,886,799

2,692,570

2,376,409

Shareholders' equity

353,061

336,963

349,639

304,457

(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

INCOME STATEMENT

September 30, 2010

June 30, 2010

March 31, 2010

December 31, 2009

September 30, 2009

Net interest income – tax-equivalent (1)

$  31,401

31,867

31,472

31,280

30,731

Taxable equivalent adjustment (1)

330

331

295

247

221

Net interest income

31,071

31,536

31,177

31,033

30,510

Provision for loan losses

8,391

8,003

7,623

6,575

5,200

Noninterest income

3,957

4,537

5,694

6,255

5,741

Noninterest expense

20,711

21,957

22,280

22,458

20,953

Income before income taxes

5,926

6,113

6,968

8,255

10,098

Income taxes

2,078

2,172

2,530

2,987

3,716

Net income

3,848

3,941

4,438

5,268

6,382

Preferred stock dividends and accretion

1,027

1,026

1,027

1,014

995

Net income available to common shareholders

2,821

2,915

3,411

4,254

5,387

Earnings per common share – basic

0.17

0.17

0.20

0.25

0.32

Earnings per common share – diluted

0.17

0.17

0.20

0.25

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 SHEETS

($ in thousands)

At Sept. 30,

2010

At June 30,

2010

At Dec. 31,

2009

At Sept. 30,

2009

One Year

Change

Assets

Cash and due from banks

$         51,812

59,944

60,071

43,667

18.7%

Interest bearing deposits with banks

267,863

153,630

290,801

240,425

11.4%

    Total cash and cash equivalents

319,675

213,574

350,872

284,092

12.5%

Investment securities

194,708

210,629

214,168

196,607

-1.0%

Presold mortgages

3,226

3,123

3,967

8,420

-61.7%

Loans – non-covered

2,096,439

2,099,099

2,132,843

2,147,615

-2.4%

Loans – covered by FDIC loss share agreements

413,735

455,477

520,022

578,485

-28.5%

    Total loans

2,510,174

2,554,576

2,652,865

2,726,100

-7.9%

Allowance for loan losses

(44,999)

(42,215)

(37,343)

(34,444)

30.6%

    Net loans

2,465,175

2,512,361

2,615,522

2,691,656

-8.4%

Premises and equipment

54,039

54,026

54,159

52,868

2.2%

FDIC loss share receivable

93,125

118,072

143,221

187,029

-50.2%

Intangible assets

70,577

70,797

70,948

71,165

-0.8%

Other real estate owned – non-covered

17,475

14,690

8,793

6,963

151.0%

Other real estate owned – covered

101,389

80,074

47,430

10,439

871.3%

Other assets

40,948

40,996

36,276

16,255

151.9%

    Total assets

$    3,360,337

3,318,342

3,545,356

3,525,494

-4.7%

Liabilities

Deposits:

    Non-interest bearing demand

$       290,388

293,555

272,422

268,097

8.3%

    NOW accounts

370,654

356,626

362,366

264,267

40.3%

    Money market accounts

492,983

494,979

496,940

477,092

3.3%

    Savings accounts

154,955

157,343

149,338

142,391

8.8%

    Brokered time deposits

94,073

91,195

76,332

122,634

-23.3%

    Internet time deposits

53,246

54,535

128,024

158,680

-66.4%

    Other time deposits > $100,000

641,970

668,044

704,128

706,343

-9.1%

    Other time deposits

653,213

678,611

743,558

782,136

-16.5%

         Total deposits

2,751,482

2,794,888

2,933,108

2,921,640

-5.8%

Repurchase agreements

68,157

61,766

64,058

58,209

17.1%

Borrowings

158,907

76,579

176,811

176,927

-10.2%

Other liabilities

30,836

36,371

28,996

32,336

-4.6%

    Total liabilities

3,009,382

2,969,604

3,202,973

3,189,112

-5.6%

Shareholders' equity

Preferred stock

65,000

65,000

65,000

65,000

0.0%

Discount on preferred stock

(3,146)

(3,361)

(3,789)

(3,990)

-21.2%

Common stock

99,303

98,973

98,099

97,745

1.6%

Common stock warrants

4,592

4,592

4,592

4,592

0.0%

Retained earnings

188,028

186,552

182,908

179,988

4.5%

Accumulated other comprehensive income

(2,822)

(3,018)

(4,427)

(6,953)

-59.4%

    Total shareholders' equity

350,955

348,738

342,383

336,382

4.3%

Total liabilities and shareholders' equity

$    3,360,337

3,318,342

3,545,356

3,525,494

-4.7%

First Bancorp and Subsidiaries

Financial Summary - page 5

For the Three Months Ended

YIELD INFORMATION

September 30, 2010

June 30, 2010

March 31, 2010

December 31, 2009

September 30, 2009

Yield on loans

5.79%

5.86%

5.90%

5.97%

5.94%

Yield on securities – tax-equivalent (1)

4.26%

4.38%

4.13%

3.97%

4.23%

Yield on other earning assets

0.32%

0.32%

0.38%

0.36%

0.34%

  Yield on all interest earning assets

5.36%

5.46%

5.37%

5.35%

5.45%

Rate on interest bearing deposits

1.16%

1.22%

1.32%

1.61%

1.82%

Rate on other interest bearing liabilities

1.52%

1.54%

1.41%

1.17%

1.36%

  Rate on all interest bearing liabilities

1.17%

1.23%

1.32%

1.58%

1.78%

       Interest rate spread – tax-equivalent (1)

4.19%

4.23%

4.05%

3.77%

3.67%

       Net interest margin – tax-equivalent (2)

4.30%

4.35%

4.16%

3.92%

3.83%

       Average prime rate

3.25%

3.25%

3.25%

3.25%

3.25%

(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.

For the Three Months Ended

NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS

September 30, 2010

June 30, 2010

March 31, 2010

December 31, 2009

September 30, 2009

Positive (negative) impact on net interest income

Interest income – reduced by premium amortization on loans

$          (49)

(49)

(49)

(49)

(49)

Interest income – increased by accretion of loan discount

1,231

1,659

1,484

1,469

Interest expense – reduced by premium amortization of deposits

296

731

1,184

1,639

2,072

Interest expense – reduced by premium amortization of borrowings

72

116

116

116

116

    Impact on net interest income

$       1,550

2,457

2,735

3,175

2,139

First Bancorp and Subsidiaries

Financial Summary - page 6

ASSET QUALITY DATA ($ in thousands)

Sept. 30, 2010

June 30, 2010

March 31, 2010

Dec. 31, 2009

Sept. 30, 2009

Non-covered nonperforming assets

Nonaccrual loans

$     80,318

73,152

63,415

62,206

51,015

Restructured loans

20,447

20,392

27,207

21,283

6,963

Accruing loans > 90 days past due

    Total non-covered nonperforming loans

100,765

93,544

90,622

83,489

57,978

Other real estate

17,475

14,690

10,818

8,793

7,549

Total non-covered nonperforming assets

$   118,240

108,234

101,440

92,282

65,527

Covered nonperforming assets (1)

Nonaccrual loans (2)

$    75,116

98,669

105,043

117,916

122,308

Restructured loans

4,160

8,450

11,379

Accruing loans > 90 days past due

    Total covered nonperforming loans

79,276

107,119

116,422

117,916

122,308

Other real estate

101,389

80,074

68,044

47,430

10,439

Total covered nonperforming assets

$  180,665

187,193

184,466

165,346

132,747

    Total nonperforming assets

$  298,905

295,427

285,906

257,628

198,274

Asset Quality Ratios – All Assets

Net charge-offs to average loans - annualized

0.88%

0.85%

0.81%

0.54%

0.57%

Nonperforming loans to total loans

7.17%

7.86%

7.94%

7.59%

6.61%

Nonperforming assets to total assets

8.90%

8.90%

8.43%

7.27%

5.62%

Allowance for loan losses to total loans

1.79%

1.65%

1.52%

1.41%

1.26%

Allowance for loan losses to nonperforming loans

24.99%

21.04%

19.17%

18.54%

19.11%

Asset Quality Ratios – Based on Non-covered Assets only

Net charge-offs to average non-covered loans - annualized

1.06%

1.04%

1.01%

0.69%

0.72%

Non-covered nonperforming loans to non-covered loans

4.81%

4.46%

4.28%

3.91%

2.70%

Non-covered nonperforming assets to total non-covered assets

4.16%

3.89%

3.58%

3.10%

2.23%

Allowance for loan losses to non-covered loans

2.15%

2.01%

1.87%

1.75%

1.60%

Allowance for loan losses to non-covered nonperforming loans

44.66%

45.13%

43.80%

44.73%

59.41%

(1)  Covered nonperforming assets consist of assets that are included in loss-share agreements with the FDIC.

(2)  At September 30, 2010, the contractual balance of the nonaccrual loans covered by the FDIC loss share agreements was $103.9 million.

SOURCE First Bancorp



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http://www.FirstBancorp.com