First Bancorp Reports Second Quarter Results

SOUTHERN PINES, N.C., July 26, 2023 /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, announced today net income of $29.4 million, or $0.71 per diluted common share, for the three months ended June 30, 2023 compared to $15.2 million, or $0.37 per diluted common share, for the three months ended March 31, 2023 ("linked quarter") and $36.6 million, or $1.03 per diluted common share, recorded in the second quarter of 2022. For the six months ended June 30, 2023, the Company recorded net income of $44.6 million, or $1.08 per diluted common share, compared to $70.6 million, or $1.98 per diluted common share, for the six months ended June 30, 2022 .

On January 1, 2023, the Company completed its acquisition of GrandSouth Bancorporation ("GrandSouth"). The results for the first quarter of 2023 include merger expenses totaling $12.2 million and an initial loan loss provision of $12.2 million for acquired loans. Comparisons for the financial periods presented are impacted by the GrandSouth acquisition which contributed $1.02 billion in loans and $1.05 billion in deposits.

Richard H. Moore, CEO and Chairman of the Company, stated, "Our team worked hard this quarter to enhance our strong balance sheet by growing loans selectively and conservatively and also attracting deposits in a competitive market. We maintained the same percentage of noninterest-bearing deposits as compared to the first quarter of 2023, and our overall deposit base remains granular, diversified and stable. Like all banks, our overall cost of deposits trended upward with the increase in market rates, but remains well below the cost of wholesale funding. We believe our credit quality, liquidity and capital will also help us to stay well-positioned for the remainder of this year."

Second Quarter 2023 Highlights

• Loans totaled $7.9 billion at June 30, 2023, with growth for the quarter of $98.7 million, an annualized growth rate of 5.1%.
• Total market deposits (exclusive of brokered deposits) grew $67.1 million for the quarter, an annualized growth rate of 2.7%.
• Noninterest-bearing demand accounts remained strong at 36% of total deposits at quarter end.
• Total loan yield increased to 5.26%, up 102 basis points from the second quarter of 2022, with accretion on purchased loans contributing 18 basis points to loan yield.
• The liquidity ratio was 17.3% at June 30, 2023 . Available off-balance sheet sources increased during the quarter to total $1.6 billion, resulting in a total liquidity ratio of 29.0%.
• Credit quality continued to be strong with a nonperforming assets ("NPA") to total assets ratio of 0.30% as of June 30, 2023, down from 0.39% for the comparable period of 2022.
• Capital remained strong with a total common equity tier 1 ratio of 12.80% (estimated) and a total risk-based capital ratio of 15.15% (estimated) as of June 30, 2023 .

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2023 was $87.0 million, an 11.1% increase from the $78.3 million recorded in the second quarter of 2022. The increase in net interest income from the prior year period was driven by higher earning assets related to both organic growth and the GrandSouth acquisition. Average interest-earning assets for the second quarter of 2023 increased 14.8% from the comparable period of the prior year, with growth primarily in loans.

Somewhat offsetting the impact of the higher average earning assets was the reduction in net interest margin ("NIM") year-over-year. The Company's tax-equivalent NIM (calculated by dividing tax-equivalent net interest income by average earning assets) for the second quarter of 2023 was 3.08% compared to 3.18% for the second quarter of 2022. The lower NIM was due to rising market interest rates driving higher cost of funds which outpaced the increase in loan yields over the same period. While loan yields rose from 4.24% for the second quarter of 2022 to 5.26% for the current period, the total cost of funds increased from 0.09% for the second quarter of 2022 to 1.29% for the quarter ended June 30, 2023. There has been some stabilization of the Company's cost of funds, but it is anticipated there may continue to be some compression in the NIM given the percentage of fixed rate loans in the Company's loan portfolio.

		For the Three Months Ended
YIELD INFORMATION		June 30, 2023		March 31, 2023		June 30, 2022
Yield on loans		5.26 %		5.22 %		4.24 %
Yield on securities		1.77 %		1.78 %		1.69 %
Yield on other earning assets		4.60 %		3.47 %		0.97 %
Yield on all interest-earning assets		4.25 %		4.16 %		3.24 %
Rate on interest bearing deposits		1.68 %		1.19 %		0.11 %
Rate on other interest-bearing liabilities		5.68 %		5.34 %		3.52 %
Rate on all interest-bearing liabilities		1.96 %		1.46 %		0.15 %
Total cost of funds		1.29 %		0.94 %		0.09 %
Net interest margin (1)		3.05 %		3.28 %		3.16 %
Net interest margin - tax-equivalent (2)		3.08 %		3.31 %		3.18 %
Average prime rate		8.16 %		7.69 %		3.94 %
(1) Calculated by dividing annualized net interest income by average earning assets for the period.
(2) Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. T he tax-equivalent 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 23% tax rate and is reduced by the related nondeductible portion of interest expense.

Included in interest income for the second quarter of 2023 was total loan discount accretion of $3 .6 million compared to $2 .3 million for the second quarter of 2022, with the increase being primarily related to the GrandSouth acquisition. Loan discount accretion had a 13 basis point positive impact on the Company's NIM in the second quarter of 2023 compared to accretion contributing 9 basis points to NIM for the prior year quarter.

The following table presents the impact to net interest income of the purchase accounting adjustments for each period.

		For the Three Months Ended
NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS ($ in thousands)		June 30, 2023		March 31, 2023		June 30, 2022
Interest income - increased by accretion of loan discount on acquired loans		$ 3,159		3,118		1,545
Interest income - increased by accretion of loan discount on retained portions of SBA loans		426		448		730
Total interest income impact		3,585		3,566		2,275
Interest expense - (increased) reduced by (discount accretion) premium amortization of deposits		(878)		(1,019)		168
Interest expense - increased by discount accretion of borrowings		(84)		(82)		(53)
Total net interest expense impact		(962)		(1,101)		115
Total impact on net interest income		$ 2,623		2,465		2,390

Provision for Credit Losses and Credit Quality

For the three months ended June 30, 2023, the Company recorded $3 .7 million in provision for loan losses while no provision was recognized for the second quarter of 2022. The provision for the current quarter was driven in part by the loan growth experienced during the quarter, combined with updated economic forecasts projecting some deterioration in the key factors utilized in our CECL model calculation, primarily the commercial real estate index.

The Company recorded a $1 .3 million reversal of the provision for unfunded commitments during the second quarter of 2023 related primarily to a reduction in the amount of available lines of credit. The reserve for unfunded commitments totaled $13 .0 million at June 30, 2023 and is included in the line item "Other Liabilities".

Asset quality remained strong with annualized net loan charge-offs of 0.04% for the second quarter of 2023. Total NPAs amounted to $35 .8 million at June 30, 2023, or 0.30% of total assets, up from $31 .1 million at the end of the linked quarter, and down from $41 .1 million, or 0.39% of total assets, at June 30, 2022. The decline from June 30, 2022 was due in part to the Company's adoption of ASU 2022-02 which eliminated the accounting methodology for troubled debt restructurings and replaced it with disclosures for loan modification to borrowers experiencing financial difficulty as presented in the following table.

ASSET QUALITY DATA ($ in thousands)		June 30, 2023		March 31, 2023		June 30, 2022
Nonperforming assets
Nonaccrual loans		$ 29,876		28,059		28,715
Troubled debt restructurings - accruing (1)		-		-		11,771
Modifications to borrowers in financial distress		4,862		2,224		-
Total nonperforming loans		34,738		30,283		40,486
Foreclosed real estate		1,077		789		658
Total nonperforming assets		$ 35,815		31,072		41,144
Asset Quality Ratios
Quarterly net charge-offs (recoveries) to average loans - annualized		0.04 %		0.09 %		(0.01) %
Nonperforming loans to total loans		0.44 %		0.39 %		0.65 %
Nonperforming assets to total assets		0.30 %		0.25 %		0.39 %
Allowance for credit losses to total loans		1.38 %		1.36 %		1.32 %
(1) The Company implemented ASU 2022-02 effective January 1, 2023 eliminating TDR accounting.

Noninterest Income

Total noninterest income for the second quarter of 2023 was $14 .2 million, a 17.5% decrease from the $17 .3 million recorded for the second quarter of 2022 and a 5.2% increase from the linked quarter. The primary factors driving fluctuations among the periods presented were as follows:

• Increases in "Service charges on deposit accounts" between periods was primarily driven by the higher number of customer accounts related to the GrandSouth acquisition and organic growth.
• The year-over-year decline in "Other service charges, commissions and fees" was related to the lower interchange fees beginning in July 2022 as a result of the Durbin Amendment limitations becoming applicable to the Company.
• Fees from presold mortgages continue to be lower in 2023 as compared to the prior year as mortgage loan refinancing and origination volumes were negatively impacted due to higher mortgage interest rates.
• SBA loan sale gains were up from the linked quarter of 2023, but continued to lag the 2022 results due primarily to slower loan originations in the current year combined with lower premiums available on SBA loan sales given the current market conditions.
• Other gains for the second quarter and year to date period of 2022 included death benefits realized on bank-owned life insurance policies. There were no large or unusual transactions in 2023 giving rise to gains or losses.

Noninterest Expenses

Noninterest expenses amounted to $61 .6 million for the second quarter of 2023 compared to $74 .2 million for the linked quarter and $49 .4 million for the second quarter of 2022. The 17.0% decrease in noninterest expenses from the linked quarter was driven by merger and acquisition expenses of $12 .2 million incurred in the first quarter of 2023 as compared to $1 .3 million in the current quarter.

The 24.7% increase in total noninterest expenses from the prior year period was primarily driven by increased salary expense and other facilities-related costs associated with the acquisition of eight GrandSouth branch locations and related branch and support personnel. Other operating expenses increased $5.4 million from the second quarter of 2022 driven by: (1) increases for data processing and software expense for the additional processing volumes, integration of core processing systems, and investments in new software systems; (2) FDIC insurance increases related to the GrandSouth acquisition; and (3) higher check fraud and other non-credit losses experienced to date in 2023.

Balance Sheet

Total assets at June 30, 2023 amounted to $12.0 billion, down $330.2 million from the linked quarter and growing 13.9% from a year earlier. The decrease from the linked quarter was related to lower cash and borrowing balances as it was not necessary to renew maturing FHLB advances during the quarter. The growth from a year earlier was driven by the acquisition of GrandSouth, combined with organic loan and deposit growth during the period. Quarterly average balances for key balance sheet accounts are presented below.

		For the Three Months Ended
AVERAGE BALANCES ($ in thousands)		June 30, 2023		December 31, 2022		June 30, 2022		Change 2Q23 vs 2Q22
Total assets		$ 12,058,336		10,579,187		10,516,748		14.7 %
Investment securities, at amortized cost		3,221,807		3,325,652		3,437,365		(6.3) %
Loans		7,850,522		6,576,415		6,149,174		27.7 %
Earning assets		11,422,667		10,161,108		9,949,658		14.8 %
Deposits		10,181,040		9,275,909		9,337,615		9.0 %
Interest-bearing liabilities		7,001,838		5,779,958		5,740,269		22.0 %
Shareholders' equity		1,314,620		1,003,031		1,091,077		20.5 %

Total investment securities were $2.8 billion at June 30, 2023, a decrease of $72.5 million from the linked quarter and $321.4 million from June 30, 2022. The investment securities portfolio continues to decline as cash flows from amortizing investments are utilized to fund loan growth and fluctuations in deposits. The unrealized loss on available for sale securities totaled $440.1 million, representing an increase of $31.4 million from the linked quarter but essentially flat from year end. The Company has the intent and ability to hold investments with unrealized losses until maturity or recovery of the amortized cost as market conditions change.

Total loans amounted to $7 .9 billion at June 30, 2023, an increase of $98.7 million from the linked quarter and $1.7 billion, or 26.5%, from June 30, 2022. Excluding the GrandSouth acquisition, organic loan growth was $212.4 million for 2023 year to date, representing an annualized growth rate of 5.5%.

As presented below, our total loan portfolio mix has remained consistent. There are no notable concentrations in geographies or industries, including in office or hospitality categories. The Company's exposure to non-owner occupied office loans represents approximately 5.7% of the total portfolio and the average size of these loans is $1.3 million . Non-owner occupied office loans are generally in non-metro markets and the top 10 loans in this category represent less than 2% of the total loan portfolio.

		June 30, 2023				March 31, 2023				June 30, 2022
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Commercial and industrial		$ 888,391		11 %		885,032		11 %		596,874		10 %
Construction, development & other land loans		1,109,769		14 %		1,092,026		14 %		824,723		13 %
Commercial real estate - owner occupied		1,222,189		16 %		1,200,744		16 %		1,014,551		16 %
Commercial real estate - non owner occupied		2,423,262		31 %		2,429,941		31 %		1,991,292		32 %
Multi-family real estate		392,120		5 %		395,573		5 %		332,479		5 %
Residential 1-4 family real estate		1,461,068		18 %		1,386,580		18 %		1,097,810		18 %
Home equity loans/lines of credit		334,566		4 %		342,287		4 %		325,617		5 %
Consumer loans		67,077		1 %		68,056		1 %		60,627		1 %
Loans, gross		7,898,442		100 %		7,800,239		100 %		6,243,973		100 %
Unamortized net deferred loan fees		(813)				(1,276)				(803)
Total loans		$ 7,897,629				7,798,963				6,243,170

Total deposits amounted to $10.2 billion at June 30, 2023, an increase of $808.8 million, or 8.6%, from June 30, 2022, primarily driven by the GrandSouth acquisition. Organic market deposit growth (excluding the acquired deposits and brokered deposits) was $67.1 million for the second quarter of 2023 and $154.0 million since year end. Quarterly organic market growth represents an annualized growth rate of 3.1%. During the second quarter of 2023, the Company had several blocks of higher-priced brokered deposits mature which were not replaced given the continued growth of core deposits.

The Company has a diversified and granular deposit base which has remained stable with continued growth in core deposits, primarily noninterest-bearing checking accounts and money market accounts. At quarter end, noninterest-bearing deposits accounted for 36% of total deposits, consistent with the linked quarter. As of June 30, 2023, the estimated total insured or collateralized deposits were approximately 71%.

Our deposit mix has remained consistent historically and has not significantly changed with the addition of GrandSouth as presented in the table below.

		June 30, 2023				March 31, 2023				June 30, 2022
($ in thousands)		Amount		Percentage		Amount		Percentage		Amount		Percentage
Noninterest-bearing checking accounts		$ 3,639,930		36 %		3,763,637		36 %		3,699,725		40 %
Interest-bearing checking accounts		1,454,489		14 %		1,526,333		15 %		1,537,487		16 %
Money market accounts		3,411,072		34 %		3,126,571		30 %		2,572,118		28 %
Savings accounts		658,473		6 %		705,669		7 %		747,272		8 %
Other time deposits		638,751		6 %		624,444		6 %		509,661		5 %
Time deposits>$250,000		353,473		4 %		342,447		3 %		293,485		3 %
Total market deposits		10,156,188		100 %		10,089,101		97 %		9,359,748		100 %
Brokered deposits		12,381		- %		283,497		3 %		-		- %
Total deposits		$ 10,168,569		100 %		10,372,598		100 %		9,359,748		100 %

Capital and Liquidity

The Company remains well-capitalized by all regulatory standards, with an estimated total risk-based capital ratio at June 30, 2023 of 15.15%, up from the linked quarter ratio of 14.88% and the 15.01% ratio reported at June 30, 2022.

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital. AOCI is included in the Company's tangible common equity to tangible assets ratio ("TCE") which was 6.79% at June 30, 2023, an increase of 19 basis points from the linked quarter and nine basis points from the prior year period. The increase in TCE for the current quarter was driven by higher earnings, while fluctuation in AOCI also impacted this ratio.

CAPITAL RATIOS		June 30, 2023 (estimated)		March 31, 2023		June 30, 2022
Tangible common equity to tangible assets (non-GAAP)		6.79 %		6.60 %		6.70 %
Common equity tier I capital ratio		12.76 %		12.53 %		12.90 %
Tier I leverage ratio		10.47 %		10.28 %		9.95 %
Tier I risk-based capital ratio		13.55 %		13.32 %		13.76 %
Total risk-based capital ratio		15.10 %		14.88 %		15.01 %

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities, and other marketable assets) and off-balance sheet (readily available lines of credit or other funding sources). The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future.

The Company's liquidity ratio (net liquid assets as a percent of net liabilities) at June 30, 2023 was 17.3%. In addition, the Company had approximately $1.6 billion in available lines of credit at that date resulting in a total liquidity ratio of 29.0%. The increase in available lines during the second quarter of 2023 was a result of additional loan and security collateral being transferred to the FHLB and Federal Reserve Bank to enhance the levels of off-balance sheet liquidity availability to meet demands, as necessary.

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $12 .0 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 118 branches in North Carolina and South Carolina. First Bank also 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.

Caution about Forward-Looking Statements: 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 words or phrases 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 this press release by wire services, internet services or other media.

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED INCOME STATEMENT ($ in thousands, except per share data)
		For the Three Months Ended						For the Six Months Ended
		June 30, 2023		March 31, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Interest income
Interest and fees on loans		$ 102,963		99,380		65,077		202,343		129,279
Interest on investment securities		14,183		14,546		14,489		28,729		28,747
Other interest income		4,015		3,248		881		7,263		1,530
Total interest income		121,161		117,174		80,447		238,335		159,556
Interest expense
Interest on deposits		27,328		18,918		1,585		46,246		3,356
Interest on borrowings		6,848		5,770		592		12,618		1,052
Total interest expense		34,176		24,688		2,177		58,864		4,408
Net interest income		86,985		92,486		78,270		179,471		155,148
Provision for loan losses		3,700		11,451		-		15,151		3,500
(Reversal of) provision for unfunded commitments		(1,339)		1,051		-		(288)		(1,500)
Total provision for credit losses		2,361		12,502		-		14,863		2,000
Net interest income after provision for credit losses		84,624		79,984		78,270		164,608		153,148
Noninterest income
Service charges on deposit accounts		4,114		3,894		3,700		8,008		7,241
Other service charges, commissions, and fees		5,650		5,920		7,882		11,570		14,887
Fees from presold mortgage loans		557		406		454		963		1,575
Commissions from sales of financial products		1,413		1,306		1,151		2,719		2,096
SBA consulting fees		409		521		704		930		1,484
SBA loan sale gains		696		255		841		951		4,102
Bank-owned life insurance income		1,066		1,046		942		2,112		1,918
Other gains, net		330		188		1,590		518		3,212
Total noninterest income		14,235		13,536		17,264		27,771		36,515
Noninterest expenses
Salaries expense		28,676		29,321		23,799		57,997		47,253
Employee benefit expense		6,165		6,393		6,310		12,558		11,888
Occupancy and equipment related expense		4,972		5,067		4,636		10,039		9,324
Merger and acquisition expenses		1,334		12,182		737		13,516		4,221
Intangibles amortization expense		2,049		2,145		953		4,194		1,970
Other operating expenses		18,397		19,067		12,963		37,464		26,207
Total noninterest expenses		61,593		74,175		49,398		135,768		100,863
Income before income taxes		37,266		19,345		46,136		56,611		88,800
Income tax expense		7,863		4,184		9,551		12,047		18,246
Net income		$ 29,403		15,161		36,585		44,564		70,554
Earnings per common share - diluted		$ 0.71		0.37		1.03		1.08		1.98

First Bancorp and Subsidiaries Financial Summary
CONSOLIDATED BALANCE SHEETS ($ in thousands)
		At June 30, 2023		At March 31, 2023		At December 31, 2022		At June 30, 2022
Assets
Cash and due from banks		$ 101,215		102,691		101,133		85,139
Interest-bearing deposits with banks		259,460		610,691		169,185		348,964
Total cash and cash equivalents		360,675		713,382		270,318		434,103
Investment securities		2,757,607		2,830,060		2,856,193		3,079,034
Presold mortgages and SBA loans held for sale		4,953		5,884		1,282		5,293
Loans		7,897,629		7,798,963		6,665,145		6,243,170
Allowance for credit losses on loans		(109,230)		(106,396)		(90,967)		(82,181)
Net loans		7,788,399		7,692,567		6,574,178		6,160,989
Premises and equipment		152,443		152,790		134,187		135,143
Operating right-of-use lease assets		18,375		18,898		18,733		19,707
Intangible assets		515,847		518,012		376,938		379,615
Bank-owned life insurance		181,659		180,730		164,592		163,831
Other assets		253,040		250,826		228,628		188,500
Total assets		$ 12,032,998		12,363,149		10,625,049		10,566,215
Liabilities
Deposits:
Noninterest-bearing checking accounts		$ 3,639,930		3,763,637		3,566,003		3,699,725
Interest-bearing deposit accounts		6,528,639		6,608,961		5,661,526		5,660,023
Total deposits		10,168,569		10,372,598		9,227,529		9,359,748
Borrowings		481,658		606,481		287,507		67,445
Operating lease liabilities		19,109		19,638		19,391		20,280
Other liabilities		66,020		64,471		59,026		56,399
Total liabilities		10,735,356		11,063,188		9,593,453		9,503,872
Shareholders' equity
Common stock		960,851		959,422		725,153		723,956
Retained earnings		674,933		654,573		648,418		587,739
Stock in rabbi trust assumed in acquisition		(1,365)		(1,608)		(1,585)		(1,573)
Rabbi trust obligation		1,365		1,608		1,585		1,573
Accumulated other comprehensive loss		(338,142)		(314,034)		(341,975)		(249,352)
Total shareholders' equity		1,297,642		1,299,961		1,031,596		1,062,343
Total liabilities and shareholders' equity		$ 12,032,998		12,363,149		10,625,049		10,566,215

First Bancorp and Subsidiaries Financial Summary
TREND INFORMATION
		For the Three Months Ended
		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
PERFORMANCE RATIOS (annualized)
Return on average assets (1)		0.98 %		0.51 %		1.44 %		1.42 %		1.40 %
Return on average common equity (2)		8.97 %		4.83 %		15.20 %		13.84 %		13.45 %
Return on average tangible common equity (3)		14.79 %		8.16 %		20.96 %		21.25 %		20.66 %
COMMON SHARE DATA
Cash dividends declared - common		$ 0.22		0.22		0.22		0.22		0.22
Stated book value - common		$ 31.59		31.72		28.89		27.57		29.77
Tangible book value - common (non-GAAP)		$ 19.03		19.08		18.34		16.98		19.13
Common shares outstanding at end of period		41,082,678		40,986,990		35,704,154		35,711,754		35,683,595
Weighted average shares outstanding - diluted		41,129,100		41,112,692		35,614,972		35,703,446		35,642,471
CAPITAL INFORMATION (estimates for current quarter)
Tangible common equity to tangible assets		6.79 %		6.60 %		6.39 %		5.98 %		6.70 %
Common equity tier I capital ratio		12.80 %		12.53 %		13.02 %		12.76 %		12.90 %
Total risk-based capital ratio		15.15 %		14.88 %		15.09 %		14.84 %		15.01 %
(1) Calculated by dividing annualized net income by average assets.
(2) Calculated by dividing annualized net income by average common equity.
(3) Calculated by dividing annualized net income by average tangible common equity.
		For the Three Months Ended
INCOME STATEMENT ($ in thousands except per share data)		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Net interest income - tax-equivalent (1)		$ 87,684		93,186		85,094		86,026		78,939
Taxable equivalent adjustment (1)		699		700		722		692		669
Net interest income		86,985		92,486		84,372		85,334		78,270
Provision for loan losses		3,700		11,451		4,000		5,100		-
(Reversal of) provision for unfunded commitments		(1,339)		1,051		1,000		300		-
Noninterest income		14,235		13,536		14,558		16,912		17,264
Merger and acquisition costs		1,334		12,182		303		548		737
Other noninterest expense		60,259		61,993		45,354		48,152		48,661
Income before income taxes		37,266		19,345		48,273		48,146		46,136
Income tax expense		7,863		4,184		9,840		10,197		9,551
Net income		29,403		15,161		38,433		37,949		36,585
Earnings per common share - diluted		$ 0.71		0.37		1.08		1.06		1.03
(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 23% tax rate and is reduced by the related nondeductible portion of interest expense.

SOURCE First Bancorp