First Bancorp (FBNC) Financials

First Bancorp’s recent results show a meaningful improvement in profitability and core banking performance. In Q2 2026, net income rose to $50.5 million from $38.6 million in Q2 2025, while diluted EPS increased to $1.22 from $0.93. Total revenue increased 14.7% year over year to $127.3 million, led by a 15.1% increase in net interest income to $111.3 million.

The balance sheet has also expanded. Net loans reached $8.86 billion in Q2 2026, up 9.4% from Q2 2025 and approximately 37.6% from Q3 2022. Total assets increased to $13.04 billion, while total common equity climbed to $1.72 billion. Deposits grew more moderately, reaching $11.08 billion, suggesting that loan growth has outpaced deposit growth recently.

Cash generation improved on a year-over-year basis. Operating cash flow increased to $66.5 million in Q2 2026 from $45.7 million in Q2 2025. However, the bank continued to invest heavily in securities, producing negative investing cash flow of $173.5 million. Financing cash flow was positive because of a $72.3 million increase in deposits, but overall cash and equivalents declined by $47.7 million during the quarter.

Over the longer period represented in the data, First Bancorp’s earnings recovery is notable. Net interest income has risen from $85.3 million in Q3 2022 to $111.3 million in Q2 2026, while net income increased from $37.9 million to $50.5 million. Results were pressured during 2024 by large investment losses and elevated credit provisions, but those effects have largely subsided. Investors should still monitor funding costs, loan quality and the company’s sizable goodwill balance.

• Improved profitability: Q2 2026 net income increased 31.0% year over year, and diluted EPS rose 31.2% to $1.22.
• Stronger net interest income: Net interest income increased to $111.3 million from $96.7 million in Q2 2025 as interest income grew faster than interest expense.
• Loan growth: Net loans increased 9.4% year over year and are substantially higher than in 2022, supporting future interest revenue.
• Lower credit provisions: Provision for credit losses fell to $1.2 million in Q2 2026 from $2.2 million in Q2 2025 and $14.2 million in Q3 2024.
• Better operating cash flow: Cash generated from operating activities rose 45.4% year over year to $66.5 million.
• Growing capital base: Total common equity increased approximately 10.3% year over year to $1.72 billion, providing a larger cushion to support balance-sheet growth.
• Deposit growth is positive but slower than loan growth: Total deposits increased approximately 2.3% year over year, compared with 9.4% growth in net loans.
• Investment portfolio activity remains significant: First Bancorp purchased $234.2 million of investment securities in Q2 2026 while selling or receiving maturities of $60.3 million.
• Liquidity declined during Q2: Cash and due from banks fell to $128.4 million from $139.5 million a year earlier, while interest-bearing deposits at other banks declined to $421.9 million from $571.8 million.
• Expense growth remains a concern: Non-interest expense rose 6.5% year over year to $62.8 million, with salaries and employee benefits increasing 9.3% to $38.5 million.