First Bancorp (FBNC) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 1.69%
• Average Volume (3M): 208.85K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.90
• Revenue Growth: -5.72%
• EPS Growth: -3.86%
• Country: US
• Employees: 1,345
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.38
• Shares Outstanding: 41,465,330
• 10 Day Avg. Volume: 282,282
• 30 Day Avg. Volume: 208,855
• 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: 0.97
• Enterprise Value/Revenue: 4.40
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 16.31
• 1Y Price Target: $61.67
• Price Target Upside: 6.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $64.00 ▲(10.48% Upside)

The score is driven primarily by strong financial fundamentals (conservative leverage and healthy margins) and supportive technical momentum (price above major moving averages with positive MACD). Valuation is a mild headwind due to a higher P/E and modest yield, while recent corporate events are modestly positive due to the dividend increase despite a leadership transition.

Positive Factors

Conservative leverage

Extremely low debt-to-equity indicates a conservative capital structure that reduces solvency risk and interest burden. Over the next 2–6 months this enhances the bank's ability to absorb shocks, support lending growth, and maintain regulatory capital ratios without urgent external financing.

Strong operating margins

High EBIT and EBITDA margins reflect efficient operations and cost control in core banking activities. Sustained margins support durable profitability through cycle, enabling reinvestment in branches, technology, and underwriting capacity which underpins competitive positioning in regional markets.

Robust free cash flow conversion

Very high conversion of earnings into free cash flow and positive FCF growth signal strong cash generation quality. This provides durable flexibility for dividends, buybacks, or loan book growth without reliance on volatile capital markets, supporting long-term shareholder returns.

Negative Factors

Declining revenue trend

Negative top-line growth suggests challenges in expanding loan volumes, deposit spreads, or fee income. If sustained, weaker revenue limits net interest income and scale benefits, pressuring long-term growth prospects and requiring strategic initiatives to restore origination or fee-based revenue streams.

Net margin compression

A measurable decline in net margin indicates rising costs or pressure on spreads. Persisting compression erodes return on equity and limits capital accumulation, making it harder to sustain dividends or absorb credit losses without cutting costs or finding higher-margin revenue sources.

Board/leadership transition risk

The exit of a long-tenured director and a family closely tied to the franchise is a structural governance change. It can affect community relationships, institutional knowledge, and strategic continuity, creating transitional risk for policy direction, local franchise strength, and stakeholder trust over months.

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 interest income from loans and investment securities, which forms the bulk of its earnings. The company earns interest on various types of loans, including commercial loans, consumer loans, and residential mortgages. Additionally, First Bancorp generates non-interest income through service fees, transaction fees, and wealth management services. Key revenue streams include net interest income, which is the difference between interest earned on loans and interest paid on deposits, and non-interest income from various fees associated with banking services. The company may also benefit from strategic partnerships with other financial institutions, community organizations, and businesses that enhance its service offerings and customer base.

First Bancorp Financial Statement Overview

Summary

Solid overall financial health supported by a strong balance sheet (very low debt-to-equity of 0.0576 and strong equity ratio) and healthy operating margins (EBIT 24.46% TTM, EBITDA 26.99% TTM). Offsetting factors include negative revenue growth (-2.82% TTM), slight net margin compression (18.69% TTM vs. 19.24% in 2023), and weaker operating cash flow conversion despite strong FCF conversion (FCF to net income 98.76% TTM).

Income Statement

First Bancorp's income statement shows a strong gross profit margin of 68.07% TTM, indicating efficient cost management. However, the net profit margin has decreased to 18.69% TTM from 19.24% in 2023, reflecting some pressure on profitability. Revenue growth has been negative at -2.82% TTM, suggesting challenges in expanding top-line revenue. Despite these challenges, EBIT and EBITDA margins remain healthy at 24.46% and 26.99% TTM, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of First Bancorp is robust with a low debt-to-equity ratio of 0.0576 TTM, indicating conservative leverage. Return on equity is moderate at 6.47% TTM, showing reasonable profitability relative to shareholder equity. The equity ratio is strong, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 6.55% TTM, indicating improved cash generation. The free cash flow to net income ratio is high at 98.76% TTM, suggesting effective conversion of earnings into cash. However, the operating cash flow to net income ratio is low, indicating potential issues in cash flow generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.14M	530.81M	541.11M	407.66M	324.90M	318.48M
Gross Profit	360.19M	327.40M	381.20M	379.16M	300.34M	263.88M
EBITDA	142.83M	116.00M	151.17M	200.55M	134.25M	116.73M
Net Income	98.89M	76.22M	104.13M	146.94M	95.64M	81.48M
Balance Sheet
Total Assets	12.75B	12.15B	12.11B	10.63B	10.51B	7.29B
Cash, Cash Equivalents and Short-Term Investments	3.24B	2.40B	2.43B	2.58B	3.09B	1.82B
Total Debt	15.10M	14.55M	321.67M	237.82M	19.50M	22.99M
Total Liabilities	11.15B	10.70B	10.74B	9.59B	9.28B	6.40B
Stockholders Equity	1.60B	1.45B	1.37B	1.03B	1.23B	893.42M
Cash Flow
Free Cash Flow	213.13M	172.12M	126.97M	225.37M	132.93M	45.97M
Operating Cash Flow	216.70M	174.78M	131.40M	230.65M	142.34M	58.33M
Investing Cash Flow	-700.69M	169.67M	-191.37M	-713.36M	-1.27B	-961.54M
Financing Cash Flow	337.52M	-74.80M	27.51M	291.86M	1.23B	1.04B

First Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 57.93 is above the 20-day moving average (MA) of 55.89, above the 50-day MA of 53.32, and above the 200-day MA of 48.73, indicating a bullish trend. The MACD of 1.49 indicates Positive momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.12 is Neutral, 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
FRME	79 Outperform	$2.30B	10.25	9.47%	3.72%	-1.76%	32.44%
NBTB	77 Outperform	$2.32B	13.34	8.87%	3.33%	11.63%	5.58%
CUBI	75 Outperform	$2.70B	12.74	11.34%	―	-0.37%	-20.30%
FBNC	74 Outperform	$2.40B	21.62	6.39%	1.69%	-5.72%	-3.86%
SYBT	74 Outperform	$2.00B	14.25	13.69%	1.88%	11.74%	26.27%
BANR	71 Outperform	$2.11B	10.96	10.28%	2.97%	6.98%	15.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Bancorp Corporate Events

First Bancorp boosts dividend and announces board transition

On January 27, 2026, First Bancorp announced that its board of directors approved a cash dividend of $0.24 per share on its common stock, payable on April 24, 2026 to shareholders of record as of March 31, 2026, representing an increase from the prior $0.23 dividend and signaling continued capital return to investors. On the same date, the company reported the immediate retirement of long-serving director and former board chair Mary Clara Capel, whose tenure since 2005 and the Capel family’s nearly 70-year association with the bank have played a significant role in First Bancorp’s governance, growth, and community banking franchise, marking a notable leadership transition for the institution and its stakeholders.

The most recent analyst rating on (FBNC) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on First Bancorp stock, see the FBNC Stock Forecast page.

First Bancorp Declares Cash Dividend for Shareholders

On December 12, 2025, First Bancorp announced a cash dividend of $0.23 per share on its common stock, payable on January 25, 2026, to shareholders of record as of December 31, 2025. CEO Richard Moore highlighted the company’s strong capital and liquidity, as well as increases in adjusted net income and EPS, emphasizing the commitment to delivering consistent shareholder value through dividends.

The most recent analyst rating on (FBNC) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on First Bancorp stock, see the FBNC Stock Forecast page.