Exhibit 99.1
First Bancorp Reports First Quarter Earnings Per Share Growth of 14%
TROY, N.C., April 22 /PRNewswire-FirstCall/ ---
First Bancorp (Nasdaq: FBNC), the parent company of First Bank, announced
first quarter earnings today of $4,693,000, or $0.49 per diluted share, a
14.0% increase in diluted earnings per share over the net income of
$3,991,000, or $0.43 per diluted share, recorded in the first quarter of 2002.
Annualized key performance ratios for the quarter ended March 31, 2003
include:
* Return on average assets of 1.49%
* Return on average equity of 14.25%
* Net charge-offs to average loans of 0.11%
* Net interest margin of 4.59%
* Nonperforming assets to total assets at quarter end of 0.33%
* Efficiency ratio of 53.72%
Total assets at March 31, 2003 amounted to $1.32 billion, 15.1% higher
than a year earlier. Total loans at March 31, 2003 amounted to $1.07 billion,
a 15.9% increase from a year earlier, and total deposits amounted to
$1.14 billion at March 31, 2003, a 14.0% increase from a year earlier.
As discussed in the next two paragraphs, the Company completed two
acquisitions in the first quarter of 2003. The results of each acquired
company are included in First Bancorp's first quarter results beginning on
their respective acquisition dates.
On January 2, 2003, the Company completed the acquisition of Uwharrie
Insurance Group, a property and casualty insurance agency located in Troy,
with eight employees and approximately 5,000 customers in Montgomery and
neighboring counties. Uwharrie Insurance Group was merged with the Company's
existing insurance subsidiary, First Bank Insurance Services, Inc.
On January 15, 2003, the Company completed the acquisition of Carolina
Community Bancshares, Inc. (CCB), the parent company of Carolina Community
Bank, a South Carolina community bank with three branches in Dillon County,
South Carolina. This represented the Company's first entry into South
Carolina. Dillon County, South Carolina is contiguous to Robeson County,
North Carolina, a county where the Company operates four branches. As of the
acquisition date, CCB had total assets of $70.2 million, with loans of
$47.7 million, deposits of $58.7 million, and shareholders' equity of
$8.8 million.
The increase in the Company's earnings in the first quarter of 2003
compared to the first quarter of 2002 was primarily due to the Company's
overall growth, which resulted in increases in net interest income and
noninterest income, the positive benefits of which were partially offset by
higher operating expenses. Also contributing to the increase in net interest
income was an improved net interest margin of 4.59% in the first quarter of
2003 compared to 4.36% in the first quarter of 2002. The higher first quarter
2003 net interest margin was primarily a result of the more stable interest
rate environment that has prevailed over the past several quarters compared to
the rapidly declining interest rate environment in 2001 that negatively
impacted the net interest margin in the first quarter of 2002. In the short
term, the Company's interest-sensitive assets generally reprice sooner and by
greater amounts than do its interest-sensitive liabilities, which in a
declining interest rate environment has the effect of negatively impacting the
Company's net interest margin until its interest-sensitive liabilities can
reset at lower rates.
The Company's asset quality ratios remained sound in the first quarter of
2003. Annualized net charge-offs as a percentage of average loans for the
first quarter of 2003 amounted to 11 basis points, and the Company's total
nonperforming assets as a percentage of total assets ratio of 0.33% is the
lowest the Company has had at any quarter end in over two years.
James H. Garner, President and CEO of First Bancorp, commented on today's
earnings report, "Our performance continues to be strong. In addition to the
excellent financial results, I believe our franchise value was also enhanced
with the two strategic acquisitions completed in the first quarter. These
acquisitions not only met strategic objectives of the company, but the high-
quality employees that joined us have already made us a better company."
Mr. Garner added, "I would like to invite our friends and shareholders to
our Annual Shareholders Meeting to be held at 3:00 P.M. on April 24, 2003 at
Montgomery Community College, Building 200. I think you will find the meeting
to be informative, and I really enjoy meeting and talking with my fellow
shareholders. I look forward to seeing you there."
Mr. Garner also noted the following corporate developments:
* As noted above, on January 15, 2003, the Company completed the
acquisition of Carolina Community Bancshares, Inc., the parent company
of Carolina Community Bank, a South Carolina community bank with three
branches in Dillon County, South Carolina with approximately $70 million
in total assets. It is expected that Carolina Community Bank will be
merged into First Bank in May of 2003.
* As noted above, on January 2, 2003, the Company completed the
acquisition of Uwharrie Insurance Group, a property and casualty
insurance agency serving 5,000 customers in Montgomery and neighboring
counties.
* On March 18, 2003, the Company announced a quarterly dividend of
23 cents per share payable on April 25, 2003 to shareholders of record
on March 31, 2003. The 23 cent rate represents an increase over the
previous rate of 22 cents per share paid in the comparable period a year
ago. The annualized dividend rate of 92 cents per share represents a
dividend yield of approximately 3.7% based on First Bancorp's recent
stock share price of $25.28 per share.
* The Company repurchased 117,214 shares of its own common stock at an
average price of $23.95 per share during the first quarter of 2003.
First Bancorp is a bank holding company based in Troy, North Carolina.
Its principal activity is the ownership and operation of First Bank, a state-
chartered community bank that operates 48 branch offices, with 47 branches
operating in a sixteen county market area in the central piedmont region of
North Carolina, and 1 branch in Wytheville, Virginia, where First Bank does
business as First Bank of Virginia. On January 15, 2003, First Bancorp became
the parent company of Carolina Community Bank, a community bank with three
branches located in Dillon County, South Carolina. First Bancorp's common
stock is traded on the NASDAQ National Market under the symbol FBNC.
Please visit our website at www.firstbancorp.com. For additional
financial data, please see the attached Financial Summary. For additional
information, please contact:
Mr. James H. Garner
President & Chief Executive Officer
Telephone: (910) 576-6171
This press release contains statements that could be deemed 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," 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.
First Bancorp and Subsidiaries
Financial Summary
Three Months Ended
March 31,
($ in thousands except per Percent
share data - unaudited) 2003 2002 Change
INCOME STATEMENT
Interest income
Interest and fees on loans $ 17,009 16,204
Interest on investment
securities 1,149 1,602
Other interest income 306 288
Total interest income 18,464 18,094 2.0%
Interest expense
Interest on deposits 4,645 6,551
Interest on borrowings 477 250
Total interest expense 5,122 6,801 -24.7%
Net interest income 13,342 11,293 18.1%
Provision for loan losses 520 440 18.2%
Net interest income after
provision for loan losses 12,822 10,853 18.1%
Noninterest income
Service charges on deposit
accounts 1,861 1,595
Other service charges,
commissions, and fees 776 636
Fees from presold mortgages 702 446
Commissions from financial
product sales 260 265
Data processing fees 73 56
Securities gains -- 20
Other gains (losses) 61 (21)
Total noninterest income 3,733 2,997 24.6%
Noninterest expenses
Personnel expense 5,326 4,613
Occupancy and equipment expense 1,222 988
Intangibles amortization 45 8
Other operating expenses 2,655 2,133
Total noninterest expenses 9,248 7,742 19.5%
Income before income taxes 7,307 6,108 19.6%
Income taxes 2,614 2,117 23.5%
Net income $ 4,693 3,991 17.6%
Earnings per share - basic $ 0.50 0.44 13.6%
Earnings per share - diluted 0.49 0.43 14.0%
ADDITIONAL INCOME STATEMENT INFORMATION
Net interest income, as
reported $ 13,342 11,293
Tax-equivalent adjustment (1) 141 141
Net interest income,
tax-equivalent $ 13,483 11,434 17.9%
(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 35% tax rate and is reduced
by the related nondeductible portion of interest expense.
Three Months Ended
March 31,
Percent
PERFORMANCE RATIOS (annualized) 2003 2002 Change
Return on average assets 1.49% 1.42%
Return on average equity 14.25% 13.62%
Net interest margin - tax
equivalent (1) 4.59% 4.36%
Efficiency ratio - tax
equivalent (1) 53.72% 53.65%
Net charge-offs to average
loans 0.11% 0.04%
Nonperforming assets to total
assets (period end) 0.33% 0.45%
SHARE DATA
Cash dividends declared $ 0.23 0.22 4.5%
Stated book value 14.19 12.90 10.0%
Tangible book value 10.32 10.23 0.9%
Common shares outstanding at
end of period 9,411,451 9,167,697
Weighted average shares
outstanding - basic 9,360,692 9,149,693
Weighted average shares
outstanding - diluted 9,539,351 9,338,366
Shareholders' equity to assets 10.09% 10.29%
AVERAGE BALANCES
Total assets $ 1,278,290 1,140,057 12.1%
Loans 1,049,781 903,283 16.2%
Earning assets 1,192,435 1,062,705 13.9%
Deposits 1,105,333 995,236 11.1%
Interest-bearing liabilities 1,021,886 913,334 11.9%
Shareholders' equity 133,526 118,824 12.4%
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
TREND INFORMATION
($ in thousands except share data)
For the Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
2003 2002 2002 2002 2002 Change
INCOME STATEMENT
Net interest
income - tax
equivalent(1) $ 13,483 12,882 13,143 12,466 11,434 17.9%
Taxable equivalent
adjustment 141 131 127 136 141 0.0%
Net interest
income 13,342 12,751 13,016 12,330 11,293 18.1%
Provision for
loan losses 520 755 575 775 440 18.2%
Noninterest
income 3,733 3,181 2,889 2,901 2,997 24.6%
Noninterest
expense 9,248 8,363 8,133 8,063 7,742 19.5%
Income before
income taxes 7,307 6,814 7,197 6,393 6,108 19.6%
Income taxes 2,614 2,395 2,538 2,232 2,117 23.5%
Net income 4,693 4,419 4,659 4,161 3,991 17.6%
Earnings per share
- basic 0.50 0.48 0.51 0.45 0.44 13.6%
Earnings per share
- diluted 0.49 0.48 0.50 0.45 0.43 14.0%
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
PERIOD END BALANCES (in thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
2003 2002 2002 2002 2002 Change
Assets $1,323,647 1,218,146 1,168,875 1,203,039 1,149,777 15.1%
Securities 95,814 80,769 94,744 100,189 106,852 -10.3%
Loans 1,071,432 998,547 983,045 969,409 924,107 15.9%
Allowance for
loan losses 11,898 10,907 10,524 10,179 9,729 22.3%
Intangible
assets 36,426 25,169 24,444 24,451 24,460 48.9%
Deposits 1,143,813 1,055,957 1,015,318 1,002,143 1,003,399 14.0%
Borrowings 36,000 30,000 23,000 70,000 15,000 140.0%
Shareholders'
equity 133,551 123,985 122,129 119,562 118,268 12.9%
YIELD INFORMATION
For the Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
2003 2002 2002 2002 2002 Change(2)
Yield on
loans 6.57% 6.70% 6.94% 7.06% 7.28% -71 bp
Yield on securities
- tax
equivalent 5.84% 6.06% 6.29% 6.42% 6.46% -62 bp
Yield on other
earning assets 2.34% 1.71% 3.25% 2.49% 2.33% 1 bp
Yield on all
interest earning
assets 6.33% 6.42% 6.83% 6.87% 6.96% -63 bp
Rate on interest
bearing
deposits 1.90% 2.13% 2.38% 2.60% 2.96% -106 bp
Rate on other
interest bearing
liabilities 5.95% 5.88% 3.60% 5.64% 6.76% -81 bp
Rate on all
interest bearing
liabilities 2.03% 2.23% 2.42% 2.65% 3.02% -99 bp
Interest rate
spread - tax
equivalent 4.30% 4.19% 4.41% 4.22% 3.94% 36 bp
Net interest
margin - tax
equivalent (1) 4.59% 4.53% 4.78% 4.63% 4.36% 23 bp
Average prime
rate 4.25% 4.45% 4.75% 4.75% 4.75% -50 bp
(1) Calculated by dividing annualized tax equivalent net interest income
by average earning assets for the period. See footnote 1 on page 1 of
Financial Summary for discussion of tax-equivalent adjustments.
(2) Expressed in terms of change in basis points from previous year.
ASSET QUALITY DATA ($ in thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
2003 2002 2002 2002 2002 Change
Nonaccrual
loans $ 2,941 2,976 3,009 2,755 3,343 -12.0%
Restructured
loans 38 41 73 77 79 -51.9%
Accruing loans
> 90 days past
due -- -- -- -- -- --
Total nonperforming
loans 2,979 3,017 3,082 2,832 3,422 -12.9%
Other real
estate 1,326 1,384 1,277 1,264 1,800 -26.3%
Total
nonperforming
assets $ 4,305 4,401 4,359 4,096 5,222 -17.6%
Net charge-offs
to average loans
- annualized 0.11% 0.17% 0.09% 0.14% 0.04% 7 bp*
Nonperforming loans
to total
loans 0.28% 0.30% 0.31% 0.29% 0.37% -9 bp*
Nonperforming
assets to
total assets 0.33% 0.36% 0.37% 0.34% 0.45% -12 bp*
Allowance for
loan losses to
total loans 1.11% 1.09% 1.07% 1.05% 1.05% 6 bp*
* Expressed in terms of change in basis points from previous year.