Exhibit 99
First Bancorp Reports 11.1% Increase in Quarterly EPS;
Year to Date EPS Up 13.8%
TROY, N.C., July 22 /PRNewswire-FirstCall/ -- First Bancorp
(Nasdaq: FBNC), the parent company of First Bank, announced second quarter
earnings today of $4,811,000, or $0.50 per diluted share, an 11.1% increase in
diluted earnings per share over the net income of $4,161,000, or $0.45 per
diluted share, recorded in the second quarter of 2002. Net income for the six
months ended June 30, 2003 amounted to $9,504,000, or $0.99 per diluted share,
a 13.8% increase in diluted earnings per share over the net income of
$8,152,000, or $0.87 per diluted share, reported for the six months ended
June 30, 2002.
Annualized key performance ratios for the quarter ended June 30, 2003
include:
* Return on average assets of 1.47%
* Return on average equity of 14.15%
* Net charge-offs to average loans of 0.07%
* Net interest margin of 4.53%
* Nonperforming assets to total assets at quarter end of 0.37%
* Efficiency ratio of 53.72%
Total assets at June 30, 2003 amounted to $1.33 billion, 10.2% higher than
a year earlier. Total loans at June 30, 2003 amounted to $1.11 billion, a
14.3% increase from a year earlier, and total deposits amounted to
$1.15 billion at June 30, 2003, a 15.0% increase from a year earlier. The
Company's January 15, 2003 acquisition of Carolina Community Bancshares, Inc.
(CCB), Dillon County, SC, contributed to the year-over-year increases. As of
the acquisition date, CCB had total assets of $70.2 million, with loans of
$47.7 million and deposits of $58.7 million.
The increase in the Company's earnings in 2003 compared to 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. The Company's net
interest margin did not vary significantly for the three or six month periods
ended June 30, 2003 compared to the same periods in 2002, while the provisions
for loan losses recorded by the Company for the three and six months ended
June 30, 2003 were slightly less than the comparable periods in 2002, due
primarily to lower loan growth experienced.
The Company's asset quality ratios have remained sound in 2003. For the
three and six months ended June 30, 2003, annualized net charge-offs as a
percentage of average loans amounted to 7 basis points and 9 basis points,
respectively, compared to 14 basis points and 9 basis points for the
comparable periods in 2002. The Company's nonperforming assets to total
assets ratio of 0.37% at June 30, 2003 is slightly higher than the same ratio
of 0.34% a year earlier, but remains significantly lower than a March 31, 2003
state bank average of 0.71%.
James H. Garner, President and CEO of First Bancorp, commented on today's
earnings report, "I am pleased with our second quarter financial results,
especially in light of the slow economy and the net interest margin pressures
caused by the historically low interest rate environment. Our good results
are a result of carefully managing our margins, our continued commitment to
high asset quality, and the hard work of our mortgage loan department in
meeting the high demand for mortgage loans during this time of low interest
rates."
"I would also like to thank our employees involved in the transition of
the Carolina Community Bank branches to First Bank branches that occurred in
May. The months of hard work paid-off with a smooth conversion that kept our
customers happy," stated Mr. Garner.
Mr. Garner also noted the following corporate developments:
* The Company has filed for regulatory approval to open its first branch
in Mayodan and its third branch in Sanford, both in North Carolina.
Mayodan is located in Rockingham County, which is north of Greensboro,
and will represent First Bank's first office in the county. Sanford is
located in Lee County, and this branch will join First Bank's existing
two branches in Sanford and the branch in Broadway in serving the
citizens of Lee County.
* On June 19, 2003, the Company announced a quarterly dividend of 23 cents
per share payable on July 25, 2003 to shareholders of record on
June 30, 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.
* During the second quarter of 2003, the Company repurchased 83,500 shares
of its own common stock at an average price of $25.90 per share. For
the six months ended June 30, 2003, the Company repurchased
200,700 shares of its own common stock at an average price of $24.76 per
share.
First Bancorp is a bank holding company based in Troy, North Carolina with
total assets of approximately $1.3 billion. Its principal activity is the
ownership and operation of First Bank, a state-chartered community bank that
operates 51 branch offices, with 47 branches operating in a sixteen county
market area in the central piedmont region of North Carolina, 3 branches in
Dillon County, South Carolina, and 1 branch in Wytheville, Virginia, where
First Bank does business as First Bank of Virginia. First Bancorp's common
stock is traded on the NASDAQ National Market under the symbol FBNC.
Please visit our website at www.firstbancorp.com. For additional
financial data, please see the attached Financial Summary.
This press release contains statements that could be deemed forward-
looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995,
which statements are inherently subject to risks and uncertainties. Forward-
looking statements are statements that include projections, predictions,
expectations or beliefs about future events or results or otherwise are not
statements of historical fact. Such statements are often characterized by the
use of qualifying words (and their derivatives) such as "expect," "believe,"
"estimate," "plan," "project," or other statements concerning opinions or
judgments of the Company and its management about future events. Factors that
could influence the accuracy of such forward-looking statements include, but
are not limited to, the financial success or changing strategies of the
Company's customers, the Company's level of success in integrating
acquisitions, actions of government regulators, the level of market interest
rates, and general economic conditions.
First Bancorp and Subsidiaries
Financial Summary
($ in thousands except per share data - unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Percent Percent
2003 2002 Change 2003 2002 Change
INCOME STATEMENT
Interest income
Interest and fees
on loans $ 17,249 16,666 $ 34,258 32,870
Interest on
investment
securities 1,086 1,522 2,235 3,124
Other interest
income 222 188 528 476
Total interest
income 18,557 18,376 1.0% 37,021 36,470 1.5%
Interest expense
Interest on
deposits 4,467 5,836 9,112 12,387
Interest on
borrowings 416 210 893 460
Total interest
expense 4,883 6,046 -19.2% 10,005 12,847 -22.1%
Net interest
income 13,674 12,330 10.9% 27,016 23,623 14.4%
Provision for
loan losses 540 775 -30.3% 1,060 1,215 -12.8%
Net interest
income after provision
for loan losses 13,134 11,555 13.7% 25,956 22,408 15.8%
Noninterest income
Service charges on
deposit accounts 1,927 1,691 3,788 3,286
Other service
charges, commissions,
and fees 633 574 1,409 1,210
Fees from presold
mortgages 651 334 1,353 780
Commissions from
financial product
sales 335 178 595 443
Data processing fees 79 100 152 156
Securities gains -- 7 -- 27
Other gains (losses) (23) 17 38 (4)
Total noninterest
income 3,602 2,901 24.2% 7,335 5,898 24.4%
Noninterest expenses
Personnel expense 5,396 4,546 10,722 9,159
Occupancy and
equipment expense 1,205 1,031 2,427 2,019
Intangibles
amortization 46 8 91 16
Other operating
expenses 2,705 2,478 5,360 4,611
Total noninterest
expenses 9,352 8,063 16.0% 18,600 15,805 17.7%
Income before income
taxes 7,384 6,393 15.5% 14,691 12,501 17.5%
Income taxes 2,573 2,232 15.3% 5,187 4,349 19.3%
Net income $ 4,811 4,161 15.6% $ 9,504 8,152 16.6%
Earnings per
share - basic $ 0.51 0.45 13.3% $ 1.01 0.89 13.5%
Earnings per share
- diluted 0.50 0.45 11.1% 0.99 0.87 13.8%
ADDITIONAL INCOME STATEMENT INFORMATION
Net interest income,
as reported $ 13,674 12,330 $ 27,016 23,623
Tax-equivalent
adjustment (1) 133 136 274 277
Net interest
income,
tax-equivalent $ 13,807 12,466 10.8% $ 27,290 23,900 14.2%
(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.
PERFORMANCE RATIOS
(annualized)
Three Months Ended Six Months Ended
June 30, June 30,
Percent Percent
2003 2002 Change 2003 2002 Change
Return on average
assets 1.47% 1.45% 1.48% 1.43%
Return on average
equity 14.15% 13.89% 14.20% 13.76%
Net interest margin
- tax equivalent (1) 4.53% 4.63% 4.56% 4.50%
Efficiency ratio
- tax equivalent
(1) (2) 53.72% 52.47% 53.72% 53.04%
Net charge-offs to
average loans 0.07% 0.14% 0.09% 0.09%
Nonperforming assets
to total assets
(period end) 0.37% 0.34% 0.37% 0.34%
SHARE DATA
Cash dividends
declared $ 0.23 0.22 4.5% $ 0.46 0.44 4.5%
Stated book value 14.45 13.11 10.2% 14.45 13.11 10.2%
Tangible book value 10.54 10.43 1.1% 10.54 10.43 1.1%
Common shares
outstanding at
end of period 9,363,404 9,120,235 9,363,404 9,120,235
Weighted average
shares outstanding
- basic 9,390,186 9,152,497 9,375,439 9,151,095
Weighted average
shares outstanding
- diluted 9,563,841 9,344,900 9,552,385 9,340,049
Shareholders'
equity to assets 10.21% 9.94% 10.21% 9.94%
AVERAGE BALANCES (in thousands)
Total assets $1,315,792 1,151,723 14.2% $1,297,043 1,145,890 13.2%
Loans 1,087,932 946,279 15.0% 1,068,857 924,781 15.6%
Earning assets 1,222,448 1,080,077 13.2% 1,207,443 1,071,391 12.7%
Deposits 1,140,309 1,004,886 13.5% 1,122,821 1,000,061 12.3%
Interest-bearing
liabilities 1,047,765 916,788 14.3% 1,034,826 915,061 13.1%
Shareholders'
equity 136,360 120,136 13.5% 134,945 119,480 12.9%
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
(2) Calculated by dividing noninterest expense by the sum of tax-
equivalent net interest income plus noninterest income.
TREND INFORMATION
($ in thousands except share data)
For the Three Months Ended
INCOME STATEMENT
June 30 March 31, Dec. 31, Sept. 30, June 30, One Year
2003 2003 2002 2002 2002 Change
Net interest income
- tax
equivalent (1) $ 13,807 13,483 12,882 13,143 12,466 10.8%
Taxable equivalent
adjustment 133 141 131 127 136 -2.2%
Net interest
income 13,674 13,342 12,751 13,016 12,330 10.9%
Provision for
loan losses 540 520 755 575 775 -30.3%
Noninterest income 3,602 3,733 3,181 2,889 2,901 24.2%
Noninterest
expense 9,352 9,248 8,363 8,133 8,063 16.0%
Income before
income taxes 7,384 7,307 6,814 7,197 6,393 15.5%
Income taxes 2,573 2,614 2,395 2,538 2,232 15.3%
Net income 4,811 4,693 4,419 4,659 4,161 15.6%
Earnings per
share - basic 0.51 0.50 0.48 0.51 0.45 13.3%
Earnings per share
- diluted 0.50 0.49 0.48 0.50 0.45 11.1%
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
PERIOD END BALANCES (in thousands)
June 30 March 31, Dec. 31, Sept. 30, June 30, One Year
2003 2003 2002 2002 2002 Change
Assets $1,325,803 1,323,647 1,218,146 1,168,875 1,203,039 10.2%
Securities 91,869 95,814 80,769 94,744 100,189 -8.3%
Loans 1,107,997 1,071,432 998,547 983,045 969,409 14.3%
Allowance for
loan losses 12,243 11,898 10,907 10,524 10,179 20.3%
Intangible
assets 36,667 36,426 25,169 24,444 24,451 50.0%
Deposits 1,151,969 1,143,813 1,055,957 1,015,318 1,002,143 15.0%
Borrowings 31,000 36,000 30,000 23,000 70,000 -55.7%
Shareholders'
equity 135,327 133,551 123,985 122,129 119,562 13.2%
YIELD INFORMATION
For the Three Months Ended
June 30 March 31, Dec. 31, Sept. 30, June 30, One Year
2003 2003 2002 2002 2002 Change(2)
Yield on loans 6.36% 6.57% 6.70% 6.94% 7.06% -70 bp
Yield on securities
- tax equivalent 5.43% 5.84% 6.06% 6.29% 6.42% -99 bp
Yield on other
earning assets 2.00% 2.34% 1.71% 3.25% 2.49% -49 bp
Yield on all
interest earning
assets 6.13% 6.33% 6.42% 6.83% 6.87% -74 bp
Rate on interest
bearing deposits 1.77% 1.90% 2.13% 2.38% 2.60% -83 bp
Rate on other
interest bearing
liabilities 5.08% 5.95% 5.88% 3.60% 5.64% -56 bp
Rate on all interest
bearing
liabilities 1.87% 2.03% 2.23% 2.42% 2.65% -78 bp
Interest rate
spread - tax
equivalent 4.26% 4.30% 4.19% 4.41% 4.22% 4 bp
Net interest
margin - tax
equivalent (1) 4.53% 4.59% 4.53% 4.78% 4.63% -10 bp
Average prime rate 4.23% 4.25% 4.45% 4.75% 4.75% -52 bp
(1) Calculated by dividing annualized tax equivalent net interest income
by average earning assets for the period. See footnote 1 on page 1 of
Financial Summary for discussion of tax-equivalent adjustments.
(2) Expressed in terms of change in basis points from previous year.
ASSET QUALITY DATA ($ in thousands)
June 30 March 31, Dec. 31, Sept. 30, June 30, One Year
2003 2003 2002 2002 2002 Change
Nonaccrual loans $ 3,741 2,941 2,976 3,009 2,755 35.8%
Restructured loans 22 38 41 73 77 -71.4%
Accruing loans >
90 days past due -- -- -- -- -- --
Total nonperforming
loans 3,763 2,979 3,017 3,082 2,832 32.9%
Other real estate 1,174 1,326 1,384 1,277 1,264 -7.1%
Total nonperforming
assets $ 4,937 4,305 4,401 4,359 4,096 20.5%
Net charge-offs
to average loans
- annualized 0.07% 0.11% 0.17% 0.09% 0.14% -7 bp*
Nonperforming loans
to total loans 0.34% 0.28% 0.30% 0.31% 0.29% 5 bp*
Nonperforming assets
to total assets 0.37% 0.33% 0.36% 0.37% 0.34% 3 bp*
Allowance for loan
losses to total
loans 1.10% 1.11% 1.09% 1.07% 1.05% 5 bp*
* Expressed in terms of change in basis points from previous year.