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First Bancorp Reports Operating Results (10-Q)

August 10, 2009 | About:

First Bancorp (FBNC) filed Quarterly Report for the period ended 2009-06-30.

First Bancorp is a one-bank holding company. The principal activity of the Company is the ownership and operation of First Bank. They also own and operate two nonbank subsidiaries Montgomery Data Services Inc. and First Bancorp Financial Services Inc. First Bancorp has a market cap of $310.6 million; its shares were traded at around $18.67 with a P/E ratio of 18.3 and P/S ratio of 1.8. The dividend yield of First Bancorp stocks is 1.7%. First Bancorp had an annual average earning growth of 8.4% over the past 5 years.

Highlight of Business Operations:

Net income available to common shareholders for the second quarter of 2009 was $35.0 million compared to $5.3 million reported in the second quarter of 2008. Earnings per diluted common share were $2.10 in the second quarter of 2009 compared to $0.32 in the second quarter of 2008. For the six months ended June 30, 2009, net income available to common shareholders was $38.1 million compared to $10.8 million reported for the comparable period in 2008. Earnings per diluted common share were $2.29 for the six months ended June 30, 2009 compared to $0.70 for the same six months in 2008.

Excluding the Cooperative acquisition, we experienced a slight decline in loans during 2009. Internally generated loan balances declined $13 million, or 0.6%, in the second quarter of 2009 and have declined $37 million, or 1.7%, year to date. Internally generated deposit growth amounted to $24 million, or 1.1%, in the second quarter of 2009, and $88 million, or 4.3%, for the first six months of 2009.

The current economic environment has resulted in an increase in our loan losses and nonperforming assets, which has led to significantly higher provisions for loan losses. Our provision for loan losses amounted to $3,926,000 in the second quarter of 2009 compared to $2,059,000 in the second quarter of 2008. The provision for loan losses for the six months ended June 30, 2009 was $8,411,000 compared to $3,592,000 recorded in the first half of 2008.

quarter of 2009 was $4.9 million compared to $5.2 million in the second quarter of 2008, and $9.6 million for the six months ended June 30, 2009 compared to $10.3 million for the comparable period of 2008. The decreases in 2009 are attributable primarily to lower levels of nonsufficient fund charges as a result of a lower occurrence of overdrawn accounts and higher levels of securities losses and other miscellaneous losses experienced in 2009.

Net interest income is the largest component of earnings, representing the difference between interest and fees generated from earning assets and the interest costs of deposits and other funds needed to support those assets. Net interest income for the three month period ended June 30, 2009 amounted to $23,443,000, an increase of $1,942,000, or 9.0%, from the $21,501,000 recorded in the second quarter of 2008. Net interest income on a tax-equivalent basis for the three months ended June 30, 2009 amounted to $23,630,000, an increase of $1,966,000, or 9.1%, from the $21,664,000 recorded in the second quarter of 2008. We believe that analysis of net interest income on a tax-equivalent basis is useful and appropriate because it allows a comparison of net interest income amounts in different periods without taking into account the different mix of taxable versus non-taxable investments that may have existed during those periods.

Net interest income for the six months ended June 30, 2009 amounted to $45,553,000, an increase of $4,288,000, or 10.4%, from the $41,265,000 recorded in the first six months of 2008. Net interest income on a taxable equivalent basis for the six months ended June 30, 2009 amounted to $45,903,000, an increase of $4,311,000, or 10.4%, from the $41,592,000 recorded in the first six months of 2008.

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