First Bancorp (FBNC) AI Stock Analysis

• Market Cap: $2.30B
• Dividend Yield: 1.6%
• Average Volume (3M): 311.21K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.08
• Revenue Growth: -2.04%
• EPS Growth: -14.82%
• Country: US
• Employees: 1,345
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.93
• Shares Outstanding: 41,462,418
• 10 Day Avg. Volume: 220,444
• 30 Day Avg. Volume: 311,210
• PEG Ratio: -0.87
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 3.40
• P/FCF Ratio: 10.48
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 13.78
• 1Y Price Target: $55.50
• Price Target Upside: 0.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $52.00 ▼(-6.14% Downside)

First Bancorp's strong financial performance and robust cash flow management are the primary strengths, contributing significantly to the overall score. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock might be slightly overvalued, which tempers the overall score.

Positive Factors

Financial Performance

FBNC is well-positioned to sustain strong returns and build shareholder value over time due to its ability to deliver NIM expansion in a down-rate environment and scalable organic growth.

Net Interest Margin

The NIM expanded to 3.27%, driven by higher loan yields and lower deposit costs, reflecting benefits from securities restructuring and potential for further balance sheet restructurings.

Negative Factors

Loan Growth

Loan growth remains limited and less than a 4% annual pace.

Management Changes

CEO Retirement and Management Changes.

Stock Valuation

The shares are trading at a premium P/E today, and incremental multiple expansion seems less likely than peers, which contributes to the Neutral rating.

First Bancorp Business Overview & Revenue Model

Company Description

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina. It accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. The company also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, it provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, the company offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. As of December 31, 2021, it operated 121 branches comprising 114 branch offices located in North Carolina and seven branches in South Carolina. First Bancorp was founded in 1934 and is headquartered in Southern Pines, North Carolina.

How the Company Makes Money

First Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The company offers various loan products, including commercial loans, consumer loans, real estate loans, and mortgages, which contribute significantly to its interest income. Additionally, First Bancorp earns non-interest income through service fees on deposit accounts, mortgage origination fees, and transaction fees related to its banking services. The bank also engages in wealth management and investment services, further diversifying its revenue streams. Strategic partnerships with local businesses and community organizations enhance its market presence and customer base, contributing positively to its overall earnings.

First Bancorp Financial Statement Overview

Summary

First Bancorp exhibits strong financial health with robust profitability, stable balance sheet structure, and excellent cash flow management. Revenue and profit growth trends are positive, and the company maintains a conservative leverage position with significant liquidity. While some areas like ROE could see improvement, the overall trajectory is positive, positioning the company well for future growth and stability.

Income Statement

First Bancorp demonstrates a strong income statement with consistent revenue growth and healthy profit margins. The gross profit margin is solid at 63.63% TTM, and the net profit margin has improved to 16.22% TTM. Revenue has shown a positive growth trajectory with a 3.47% increase from the previous year. EBIT and EBITDA margins are also robust at 21.01% and 24.19% TTM respectively. While there are strengths in profitability, slight fluctuations in revenue growth could be monitored.

Balance Sheet

The balance sheet of First Bancorp is stable with a healthy equity ratio of 12.12% TTM. The debt-to-equity ratio is low at 0.01, indicating prudent leveraging, but it is important to note the substantial cash reserves contributing to negative net debt. Return on equity stands at 5.79% TTM, showing reasonable but not exceptional profitability relative to equity. The company's strong liquidity position is a key strength, though growth in stockholders' equity has been moderate.

Cash Flow

First Bancorp's cash flow statement is impressive, with a significant increase in free cash flow by 42.99% TTM. The operating cash flow to net income ratio is solid at 2.83, indicating efficient cash generation relative to profits. The free cash flow to net income ratio of 2.82 further underscores strong cash flow management and operational efficiency. The company's ability to generate cash flow consistently is a major strength, supporting its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.41M	530.81M	541.11M	407.66M	324.90M	318.48M
Gross Profit	342.64M	327.40M	381.20M	379.16M	300.34M	263.88M
EBITDA	130.25M	116.00M	151.17M	200.55M	134.25M	116.73M
Net Income	87.35M	76.22M	104.13M	146.94M	95.64M	81.48M
Balance Sheet
Total Assets	12.44B	12.15B	12.11B	10.63B	10.51B	7.29B
Cash, Cash Equivalents and Short-Term Investments	2.68B	2.40B	2.43B	2.58B	3.09B	1.82B
Total Debt	106.31M	106.43M	321.67M	237.82M	19.50M	22.99M
Total Liabilities	10.93B	10.70B	10.74B	9.59B	9.28B	6.40B
Stockholders Equity	1.51B	1.45B	1.37B	1.03B	1.23B	893.42M
Cash Flow
Free Cash Flow	246.21M	172.12M	126.97M	225.37M	132.93M	45.97M
Operating Cash Flow	247.47M	174.78M	131.40M	230.65M	142.34M	58.33M
Investing Cash Flow	7.14M	169.67M	-191.37M	-713.36M	-1.27B	-961.54M
Financing Cash Flow	163.99M	-74.80M	27.51M	291.86M	1.23B	1.04B

First Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBNC, the sentiment is Positive. The current price of 55.4 is above the 20-day moving average (MA) of 52.90, above the 50-day MA of 49.61, and above the 200-day MA of 43.88, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBNC.

First Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NIC	78 Outperform	$2.04B	15.79	11.89%	0.88%	8.38%	26.81%
FCF	76 Outperform	$1.88B	13.79	9.31%	2.96%	4.57%	-15.68%
NWBI	75 Outperform	$1.88B	11.47	8.96%	6.29%	14.86%	40.09%
FBNC	74 Outperform	$2.30B	23.26	6.53%	1.60%	-2.04%	-14.82%
MBIN	70 Outperform	$1.51B	7.25	12.43%	1.16%	3.49%	-30.76%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
CLBK	53 Neutral	$1.57B	249.75	0.57%	―	-0.90%	-67.89%

First Bancorp Corporate Events

First Bancorp Announces Increased Cash Dividend for Shareholders

On June 13, 2025, First Bancorp announced a cash dividend of $0.23 per share on its common stock, payable on July 25, 2025, to shareholders of record as of June 30, 2025. This decision reflects an increase from the previous quarter’s dividend and highlights the company’s strong first-quarter performance, with solid net income, EPS, credit quality, and capital positions, underscoring its commitment to returning capital to shareholders.