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Here are 1-3 brief analogies to describe First Bancorp (FBNC):

• Think of it as a regional **Bank of America** for North and South Carolina.
• A localized version of **Wells Fargo**, focused on communities in the Carolinas.

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• Deposit Services: Provides various deposit accounts, including checking, savings, money market, and certificates of deposit, for individuals and businesses to securely manage their funds.
• Lending Services: Offers a diverse portfolio of loan products, such as commercial, real estate (residential and commercial), and consumer loans, to meet the financing needs of individuals and businesses.
• Wealth Management: Delivers financial planning, investment advisory, and trust services to help clients manage and grow their assets.
• Treasury Management Services: Supplies cash management, payment processing, and other financial solutions designed for commercial clients to optimize their financial operations.

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As a financial institution, First Bancorp (FBNC) provides a wide range of banking and financial services to a broad and diversified customer base, rather than having a few "major customers" in the traditional sense like a manufacturing or retail company. Its revenue is derived from interest and fees from a large number of individual and business clients.

Therefore, First Bancorp primarily serves the following categories of customers:

1. Retail Customers: This category includes individuals and families who utilize services such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), mortgages, home equity loans, personal loans, and wealth management services.
2. Commercial & Business Customers: This category encompasses small to mid-sized businesses and corporations. First Bancorp provides these customers with business loans, lines of credit, commercial mortgages, deposit services, treasury management solutions, and other business banking products.
3. Commercial Real Estate Developers and Investors: This specialized segment of commercial customers includes individuals and entities involved in the acquisition, development, and management of commercial properties, requiring specific financing solutions for real estate projects.

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Richard H. Moore, Chief Executive Officer, First Bancorp
Richard H. Moore has served as the Chief Executive Officer of First Bancorp since June 2012, and is also the Chairman of the Board of Directors. Prior to joining First Bancorp, he was a managing director of San Diego-based Relational Investors LLC. Mr. Moore's extensive public service career includes two terms as the State Treasurer of North Carolina and four years as the Secretary of Crime Control and Public Safety. He also chaired the North Carolina State Banking Commission for eight years and previously served as an Assistant U.S. Attorney. As State Treasurer, he managed over $70 billion in pension funds and championed a national movement for shareholder rights, leading to his appointment to the executive board of the New York Stock Exchange. During his tenure as CEO, First Bank's market capitalization has grown significantly.

Elizabeth B. Bostian, Executive Vice President & Chief Financial Officer, First Bancorp
Elizabeth B. Bostian has been the Executive Vice President and Chief Financial Officer of First Bancorp and First Bank since November 2021. She joined the company in 2012 and held roles as Senior Counsel from 2012 to 2017, and then as General Counsel from 2017 until her appointment as CFO. Prior to her time with First Bancorp, Ms. Bostian practiced as a Creditor's Rights attorney at a private law firm.

Michael G. Mayer, President, First Bancorp
Michael G. Mayer was appointed President of First Bancorp in February 2016 and served as the Chief Executive Officer of First Bank from February 2017 to February 2025. Before joining First Bancorp, Mr. Mayer was the Chief Executive Officer of 1st Financial Services Corporation, the parent company of Mountain 1st Bank & Trust, from January 2010 until its acquisition in January 2014. He also served as President and Chief Executive Officer of Carolina Commerce Bank (2009-2010) and Colony Signature Bank (2007-2009). With over 30 years in banking, he previously held senior positions in commercial lending at NCNB (which became NationsBank) and was involved in raising capital to start a bank and selling a struggling institution.

G. Adam Currie, Chief Executive Officer, First Bank
G. Adam Currie was named Chief Executive Officer of First Bank in February 2025. He joined First Bank in 2015 and previously served as President since November 2023, Chief Banking Officer, and Regional President, playing a key role in expanding the bank's presence across North and South Carolina. Prior to First Bank, Mr. Currie held senior leadership positions, including Managing Director of the Financial Institutions Group at PNC Capital Markets and Chief Operating Officer of Commercial Markets at RBC Bank. He began his banking career at Bank of America.

Christian Wilson, Executive Vice President & Chief Operating Officer, First Bank
Christian Wilson joined First Bank as Executive Vice President and Chief Operating Officer, effective May 13, 2024. He brings a decade of experience from Fiserv, where he oversaw Credit, Fraud, and Risk functions on national and global scales. Mr. Wilson also served as a team leader for the Secret Service Electronic Crimes Task Force, contributing his expertise in cyber operations, regulatory review, and risk management to his current role.

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The key risks to First Bancorp's (FBNC) business include concerns over loan quality, interest rate fluctuations, and regulatory changes.

1. Credit Risk and Loan Quality Concerns: First Bancorp, as a regional bank, faces ongoing pressure related to the quality of its loan portfolio. Persistent concerns over regional bank loan quality and potential earnings disappointments could significantly shift investor sentiment away from the company. Recent disclosures from other regional banks highlighting mounting loan quality issues have stirred broader investor anxiety about possible credit risks for the sector, including First Bancorp. This risk primarily involves the potential for borrowers to default on their loans, which can lead to losses for the bank.
2. Interest Rate Risk: Fluctuations in interest rates present a fundamental risk to First Bancorp's financial health. Changes in interest rates directly impact the bank's net interest margin, which is the difference between the interest income earned on loans and the interest paid on deposits. Significant shifts in interest rates, either upward or downward, can negatively affect the bank's earnings and capital.
3. Regulatory Changes and Compliance Costs: The financial services industry, including First Bancorp, is subject to extensive regulation at both state and federal levels. Any changes in these regulations, particularly those related to capital requirements, lending practices, or consumer protection, can materially impact the bank's operations and financial performance. Increased regulatory scrutiny or rising compliance costs have the potential to reduce profitability. Ongoing regulatory pressures and the potential for increased regulatory costs are key considerations for investors.

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First Bancorp (FBNC), like other traditional financial institutions, faces several clear emerging threats:

• Disruption from Digital-First Banks (Neobanks) and Specialized Fintech Lenders: A growing number of agile, technology-driven companies are offering banking services, often with lower fees, more personalized digital experiences, and faster transaction processing. These "neobanks" (e.g., Chime, Varo) and specialized fintech lenders are attracting customers, particularly younger demographics, who prioritize digital convenience and seamless mobile experiences over traditional branch networks. This trend poses a threat to FBNC's deposit base, loan origination volumes, and customer relationships.
• Entry of Large Technology Companies into Financial Services: Major technology firms (e.g., Apple, Google, Amazon) are increasingly leveraging their vast user bases, data analytics capabilities, and platform ubiquity to offer financial products and services. While often starting with partnerships, their ultimate potential to disintermediate traditional banks by owning the customer relationship through their integrated ecosystems represents a significant emerging threat to FBNC's core banking business.

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• Community Banking: The U.S. community banking market is estimated to be approximately $19.39 billion in 2025.
• Commercial Banking/Lending: The U.S. commercial banking market size is valued at $732.5 billion in 2025, with projections to reach $915.45 billion by 2030.
• Mortgage Services: Total outstanding residential mortgage debt in the U.S. amounted to $12.94 trillion as of the second quarter of 2025. The U.S. purchase-mortgage market is currently valued at $1,145.4 billion (or $1.1454 trillion).
• Wealth Management: The assets under management (AUM) in the U.S. wealth management market are predicted to reach $67.75 trillion by 2024, with financial advisory services alone constituting an estimated $65.87 trillion in the same year. The U.S. holds 54.2% of the total global AUM in 2025.

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• Continued Loan Portfolio Growth: The company has demonstrated consistent loan growth, with total loans reaching $8.4 billion in the third quarter of 2025, marking a 9.3% annualized increase. Growth in both residential and commercial loan portfolios, leading to higher average balances, is anticipated to contribute to increased net interest income.
• Net Interest Margin (NIM) and Net Interest Income (NII) Expansion: First Bancorp reported a net interest margin of 3.5% in Q3 2025, surpassing analyst estimates. Analyst upgrades have also cited a "meaningfully higher" net interest margin as a positive driver. Management expects further increases in net interest income to stem from ongoing loan portfolio growth.
• Expansion of Branch Network and Enhancement of Digital Services: As part of its forward-looking strategy, First Bancorp plans to expand its physical branch network and improve its digital service offerings in 2025. This initiative aims to attract new customers and strengthen relationships with existing ones, thereby supporting broader revenue growth.
• Organic Growth in Deposits and Customer Relationships: The company has a stated focus on organically growing its deposit base and deepening customer relationships. This approach has led to linked-quarter increases in average deposits and successful acquisition of new commercial clients, which is a fundamental driver for profitable growth in the banking sector.
• Growth in Noninterest Income: Excluding a significant securities loss in Q3 2025, noninterest income saw a 4.8% increase from the previous quarter and a 10.7% increase year-over-year. This was partly driven by an increase in gains from the sale of guaranteed portions of SBA loans, indicating potential for continued growth in various service charges, commissions, and fees.

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Share Repurchases

• First Bancorp repurchased common stock totaling $31.87 million in 2024.
• The company repurchased common stock amounting to $4.04 million in 2023.
• In 2022, there were no share repurchases made by the company. A stock repurchase program authorizing up to $40 million was approved in January 2024 and commenced in December 2024. Additionally, a $40 million share repurchase program was authorized in February 2022, replacing a prior 2021 program.

Share Issuance

• First Bancorp issued $4.52 million in equity shares in 2021.
• The company also issued $4.09 million in equity shares in 2020.
• As part of its acquisition strategy, First Bancorp issued 0.91 shares of its common stock for each share of GrandSouth Bancorporation common and preferred stock in the January 2023 merger. [cite: 3 (from previous turn)]
• For the October 2021 acquisition of Select Bancorp, Inc., First Bancorp issued 0.408 shares of its common stock for each Select Bancorp share. [cite: 2 (from previous turn), 3 (from previous turn)]

Outbound Investments

• First Bancorp completed the acquisition of GrandSouth Bancorporation on January 1, 2023, expanding its assets by approximately $1.2 billion and adding eight branches. [cite: 3 (from previous turn), 4 (from previous turn)]
• On October 15, 2021, the company finalized its acquisition of Select Bancorp, Inc., which increased its total assets to over $10 billion and added more than 120 branches. [cite: 2 (from previous turn), 3 (from previous turn)]

Capital Expenditures

• Capital expenditures totaled $12.17 million in 2024.
• The company's capital expenditures were $9.09 million in 2023, $4.99 million in 2022, $3.45 million in 2021, and $1.32 million in 2020.
• These expenditures generally relate to investments in premises and equipment, which are common for financial institutions for branch operations and technology infrastructure.