First Bancorp Reports Fourth Quarter and Annual Results

The net interest margins for both periods were impacted by loan discount accretion associated with acquired loan portfolios.  The Company recorded loan discount accretion amounting to $2.0 million in the fourth quarter of 2017, compared to $0.9 million in the fourth quarter of 2016.  For the full year of 2017 and 2016, loan discount accretion amounted to $7.1 million and $4.5 million, respectively.  The increase in loan discount accretion from 2016 is primarily due to the loan discounts recorded in the acquisitions of Carolina Bank and Asheville Savings Bank.  See the Financial Summary for a table that presents the impact of loan discount accretion on net interest income.

Excluding the effects of loan discount accretion, the Company's net interest margin was 3.84% for the fourth quarter of 2017, compared to 3.83% for the fourth quarter of 2016.  On a linked quarter basis, the 3.84% margin was a decline from the 3.99% margin realized for the third quarter of 2017.  The decline was caused by higher levels of low yielding interest-bearing cash as well as a lower weighted average note rate associated with the loans acquired from Asheville Savings Bank.  See the Financial Summary for a reconciliation of the Company's net interest margin to the net interest margin excluding loan discount accretion, and other information regarding this ratio.  

Provision for Loan Losses and Asset Quality

The Company recorded no provisions for loan losses in the fourth quarters of 2017 or 2016.  For the year ended December 31, 2017, the Company recorded a provision for loan losses of $0.7 million compared to a negative provision for loan losses of $23,000 in 2016. 

The low level of provision for loan losses in both years was primarily due to stable and improving loan quality.  The Company's nonperforming assets to total assets ratio was 0.96% at December 31, 2017 compared to 1.64% at December 31, 2016.  The Company experienced net loan charge-offs of $1.2 million in 2017, compared to $3.7 million in 2016.  The ratio of annualized net charge-offs to average loans for the year ended December 31, 2017 was 0.04%, compared to 0.14% for 2016.

Noninterest Income

Total noninterest income was $14.9 million and $9.5 million for the three months ended December 31, 2017 and December 31, 2016, respectively.  For the year ended December 31, 2017, noninterest income amounted to $48.9 million compared to $25.6 million for 2016.

Core noninterest income for the fourth quarter of 2017 was $15.1 million, an increase of 55.2% from the $9.7 million reported for the fourth quarter of 2016.  For 2017, core noninterest income amounted to $49.3 million, a 40.9% increase from the $35.0 million recorded in 2016.  Core noninterest income includes i) service charges on deposit accounts, ii) other service charges, commissions, and fees, iii) fees from presold mortgage loans, iv) commissions from sales of insurance and financial products, v) SBA consulting fees, vi) SBA loan sale gains, and vii) bank-owned life insurance income. 

The primary reason for the increase in core noninterest income in 2017 was the acquisition of Carolina Bank and Asheville Savings Bank, as well as income derived from the Company's SBA consulting fees and SBA loan sale gains, which began during the middle of 2016. 

Fees from presold mortgage loans increased to $1.6 million for the fourth quarter of 2017 from $0.5 million in the fourth quarter of 2016.  For the year ended December 31, 2017, fees from presold mortgage loans increased to $5.7 million from the $2.0 million recorded in 2016.  The increases were primarily due to the acquisition of Carolina Bank in March 2017, which had a significant mortgage loan operation.

Commissions from sales of insurance and financial products amounted to $2.0 million in the fourth quarter of 2017, compared to $1.0 million in the fourth quarter of 2016.  For the years ended December 31, 2017 and 2016, commissions from sales of insurance and financial products amounted to $5.3 million and $3.8 million, respectively.  The increase was primarily due to the acquisition of an insurance agency during the third quarter of 2017.

The financial results for the year ended December 31, 2016 reflect indemnification asset expense of $10.3 million, whereas none was recorded in 2017.  The FDIC loss-share agreements associated with this item of expense were terminated in September 2016, and thus all indemnification asset income/expense ceased at that time.

Other gains and losses for the 2017 periods presented represent the net effects of miscellaneous gains and losses that are non-routine in nature.  In the third quarter of 2016, the Company recorded a net gain of $1.4 million as a result of a branch exchange transaction.

Noninterest Expenses

Noninterest expenses amounted to $43.6 million in the fourth quarter of 2017 compared to $28.2 million recorded in the fourth quarter of 2016.  Noninterest expenses for the year ended December 31, 2017 amounted to $145.2 million compared to $106.8 million in 2016. 

The increase in noninterest expenses in 2017 related primarily to the Company's acquisition of Carolina Bank and Asheville Savings Bank.  The Company expects to complete the data conversion of the Asheville Savings Bank customer accounts in March 2018 and to also consolidate three overlapping branches in the Asheville market at that time.

Also impacting expenses were other growth initiatives, including continued growth of the Company's SBA consulting firm and SBA lending division, as well as the acquisition of an insurance agency during the third quarter of 2017.  Salary expense for the fourth quarter of 2017 was also impacted by approximately $1.1 million related to one-time bonuses granted to a majority of the Company's employees.

Merger and acquisition expenses amounted to $3.2 million and $0.1 million for the three months ended December 31, 2017 and 2016, respectively.  For the year ended December 31, 2017 and 2016, merger and acquisition expenses amounted to $8.1 million and $1.4 million, respectively.  Merger and acquisition expenses represent transaction related costs associated primarily with the acquisitions of Carolina Bank and Asheville Savings Bank.

Income Taxes

The Company's effective tax rate for the fourth quarter of 2017 was 29.5% compared to 33.3% in the third quarter of 2017.  The lower effective tax rate was due to the 2017 Tax Cuts and Jobs Act, which was signed into law in December 2017.  The impact to the Company of revaluing its net deferred tax liability was to reduce income tax expense by approximately $1.3 million in the fourth quarter of 2017.  The Company expects to be favorably impacted in 2018 by the reduction in the federal tax rate, with a projected effective tax rate of approximately 21%.

Balance Sheet and Capital

Total assets at December 31, 2017 amounted to $5.5 billion, a 53.5% increase from a year earlier.  Total loans at December 31, 2017 amounted to $4.0 billion, a 49.1% increase from a year earlier, and total deposits amounted to $4.4 billion at December 31, 2017, a 49.5% increase from a year earlier.

In addition to the growth realized from the acquisitions of Carolina Bank in March 2017 and Asheville Savings Bank in October 2017, the Company experienced strong organic loan and deposit growth during 2017.  For 2017, organic loan growth (i.e. excluding loan balances assumed from Carolina Bank and Asheville Savings Bank) amounted to $228.0 million, or 8.4%.  For 2017, organic deposit growth amounted to $195.1 million, or 6.6%.  The strong growth was a result of ongoing internal initiatives to enhance loan and deposit growth, including the Company's recent expansion into higher growth markets.  The loan growth noted above has been driven by the recently-entered North Carolina markets of Charlotte, Raleigh, and the Triad.

The Company remains well-capitalized by all regulatory standards, with an estimated Total Risk-Based Capital Ratio at December 31, 2017 of 12.50%, a decline from 13.36% at December 31, 2016, but still in excess of the 10.00% minimum to be considered well-capitalized.  The Company's tangible common equity to tangible assets ratio was 8.23% at December 31, 2017, an increase of seven basis points from a year earlier. 

Comments of the CEO and Other Business Matters

Richard H. Moore, CEO of First Bancorp, commented on today's report, "We are pleased to report a year of significant growth, outstanding earnings and the accomplishment of several significant strategic initiatives.  In 2018, we will remain focused on providing the best possible community banking experience to our customers."  Mr. Moore added, "In that regard, we continue to carefully plan for the upcoming data conversion of the Asheville Savings Bank customer accounts to the First Bank system and the smooth transition of those offices to the First Bank name, both of which are scheduled for the weekend of March 16, 2018."

The following is a list of business development and other miscellaneous matters affecting the Company during the fourth quarter of 2017 not previously discussed:

• On December 15, 2017, the Company announced a quarterly cash dividend of $0.08 cents per share payable on January 25, 2018 to shareholders of record on December 31, 2017.  This is the same dividend rate as the Company declared in the fourth quarter of 2016.

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of approximately $5.5 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 104 branches in North Carolina and South Carolina.  First Bank also operates six mortgage loan production offices in the central region of North Carolina.  First Bank provides SBA loans to customers through its nationwide network of lenders – for more information on First Bank's SBA lending capabilities, please visit www.firstbanksba.com.  First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Please visit our website at www.LocalFirstBank.com.

This press release contains 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 available at www.sec.gov.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.  The Company is also not responsible for changes made to the press release by wire services, internet services or other media.

First Bancorp and Subsidiaries Financial Summary – Page 1
		Three Months Ended December 31,			Percent
($ in thousands except per share data – unaudited)		2017		2016	Change
INCOME STATEMENT
Interest income
Interest and fees on loans		$           48,830		31,021
Interest on investment securities		2,888		1,998
Other interest income		1,358		271
Total interest income		53,076		33,290	59.4%
Interest expense
Interest on deposits		2,500		1,310
Interest on borrowings		1,716		687
Total interest expense		4,216		1,997	111.1%
Net interest income		48,860		31,293	56.1%
Provision for loan losses		−		−	n/m
Net interest income after provision for loan losses		48,860		31,293	56.1%
Noninterest income
Service charges on deposit accounts		3,337		2,611
Other service charges, commissions, and fees		4,415		3,044
Fees from presold mortgage loans		1,574		542 Werbung Mehr Nachrichten zur First Bancorp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 09:50 - PR Newswire Datang Intnl Pwr Gen - CHANGE OF JOINT COMPANY SECRETARY ANNOUNCEMENT 08:29 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Spirent Communications PLC 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59