Exhibit 99(a)
First Bancorp Reports First Quarter Earnings
TROY, N.C., April 21 /PRNewswire-FirstCall/ -- First Bancorp
(Nasdaq: FBNC), the parent company of First Bank, announced today net income
for the first quarter of 2004 of $4,720,000, or $0.49 per diluted share. The
2004 earnings represent a 0.6% increase in net income and the same diluted
earnings per share as the earnings of $4,693,000, or $0.49 per diluted share,
reported for the three months ended March 31, 2003.
Key performance ratios for the first quarter of 2004 include:
* Return on average assets of 1.28%
* Return on average equity of 13.09%
* Net charge-offs to average loans of 0.07%
* Net interest margin of 4.37%
* Nonperforming assets to total assets at quarter end of 0.33%
* Efficiency ratio of 57.37%
Total assets at March 31, 2004 amounted to $1.49 billion, 12.9% higher
than a year earlier. Total loans at March 31, 2004 amounted to $1.25 billion,
a 16.8% increase from a year earlier, and total deposits amounted to
$1.29 billion at March 31, 2004, a 12.8% increase from a year earlier. The
Company's acquisition of four RBC Centura Bank branches on October 27, 2003
contributed to the year-over-year increases. As of the acquisition date, the
four RBC Centura Bank branches had $25 million in loans and $102 million in
deposits.
The increase in loans and deposits has resulted in an increase in the
Company's net interest income when comparing the first quarter of 2004 to the
first quarter of 2003. Net interest income for the first quarter of 2004
amounted to $14.8 million, a 10.7% increase over the $13.3 million recorded in
the first quarter of 2003.
The positive impact on net interest income from the increases in loans and
deposits more than offset a lower net interest margin realized in 2004
compared to 2003. The Company's net interest margin (tax-equivalent net
interest income divided by average earning assets) for the first quarter of
2004 was 4.37% compared to 4.59% for the first quarter of 2003. The Company's
net interest margin has been negatively impacted by the declining interest
rate environment and a shift towards originating more adjustable rate loans
compared to fixed rate loans to protect the Company from an expected rise in
interest rates.
The Company's provision for loan losses did not vary significantly in 2004
compared to 2003, amounting to $570,000 in the first quarter of 2004 versus
$520,000 in the first quarter of 2003. Except for fees from presold
mortgages, most components of noninterest income and noninterest expense
increased in 2004 as a result of the Company's overall growth. Fees from
presold mortgages decreased significantly in the first quarter of 2004
compared to the prior year, amounting to $188,000 in the first quarter of 2004
compared to $702,000 in the first quarter of 2003, as a result of a decline in
mortgage refinancing activity caused by higher mortgage interest rates.
The Company's asset quality ratios remained sound in the first quarter of
2004. For the three months ended March 31, 2004, net charge-offs as a
percentage of average loans amounted to 7 basis points (annualized) compared
to 11 basis points (annualized) for the first quarter of 2003. The Company's
nonperforming assets to total assets ratio of 0.33% at March 31, 2004 was the
same as at March 31, 2003, and compares favorably to a December 31, 2003 North
Carolina state bank average of 0.54%.
James H. Garner, President and CEO of First Bancorp, commented on today's
earnings report, "Like many other banks, the ongoing low commercial loan
interest rate environment, which generally tracks 'prime,' and the increasing
mortgage loan interest rate environment combined to compress interest margins,
while reducing mortgage loan fees. This made the first quarter a challenging
one to achieve earnings growth. But I believe the long-term position of our
company improved during the quarter, as we increased our loan portfolio by
$33 million and our deposit base by $41 million. Also, I am pleased that our
asset quality ratios continue to be outstanding."
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 29, 2004 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:
* On January 20, 2004, the Company opened a new branch in Abingdon,
Virginia. Abingdon is located approximately 40 miles southwest of the
Company's branch in Wytheville, Virginia. The branch is located at
102 Wall Street.
* On February 23, 2004, the Company announced a quarterly dividend of
24 cents per share payable on April 23, 2004 to shareholders of record
on March 31, 2004. The 24 cent rate represents an increase over the
previous rate of 23 cents per share paid in the first quarter of 2003.
* The Company plans to file for regulatory approval to open branches in
Radford, Virginia and Rose Hill, North Carolina. Radford is located in
Montgomery County, Virginia, 40 miles northeast of the Company's branch
in Wytheville, Virginia. Rose Hill is located in Duplin County, North
Carolina, in close proximity to the Company's existing branches in
Wallace and Kenansville.
* During the first quarter of 2004, the Company repurchased 49,942 shares
of its common stock at an average price of $33.38 per share.
First Bancorp is a bank holding company based in Troy, North Carolina with
total assets of approximately $1.5 billion. Its principal activity is the
ownership and operation of First Bank, a state-chartered community bank that
operates 58 branch offices, with 53 branches operating in a nineteen county
market area in the central piedmont region of North Carolina, 3 branches in
Dillon County, South Carolina, and 2 branches in Virginia (Wytheville and
Abingdon), where First Bank does business as First Bank of Virginia. First
Bancorp's common stock is traded on the NASDAQ National Market under the
symbol FBNC.
Please visit our website at www.firstbancorp.com . For additional
financial data, please see the attached Financial Summary.
This press release contains statements that could be deemed forward-
looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995,
which statements are inherently subject to risks and uncertainties. Forward-
looking statements are statements that include projections, predictions,
expectations or beliefs about future events or results or otherwise are not
statements of historical fact. Such statements are often characterized by the
use of qualifying words (and their derivatives) such as "expect," "believe,"
"estimate," "plan," "project," or other statements concerning opinions or
judgments of the Company and its management about future events. Factors that
could influence the accuracy of such forward-looking statements include, but
are not limited to, the financial success or changing strategies of the
Company's customers, the Company's level of success in integrating
acquisitions, actions of government regulators, the level of market interest
rates, and general economic conditions.
First Bancorp and Subsidiaries
Financial Summary
($ in thousands except
per share data - unaudited) Three Months Ended
March 31,
--------------------- Percent
2004 2003 Change
INCOME STATEMENT --------- -------- -------
Interest income
Interest and fees on loans $18,003 17,009
Interest on investment securities 1,295 1,149
Other interest income 86 306
--------- --------
Total interest income 19,384 18,464 5.0 %
--------- --------
Interest expense
Interest on deposits 3,953 4,645
Interest on borrowings 658 477
--------- --------
Total interest expense 4,611 5,122 -10.0 %
--------- --------
Net interest income 14,773 13,342 10.7 %
Provision for loan losses 570 520 9.6 %
Net interest income after provision --------- --------
for loan losses 14,203 12,822 10.8 %
--------- --------
Noninterest income
Service charges on deposit accounts 2,209 1,861
Other service charges, commissions, 896 776
and fees
Fees from presold mortgages 188 702
Commissions from financial
product sales 331 260
Data processing fees 96 73
Securities gains 92 --
Other gains -- 61
--------- --------
Total noninterest income 3,812 3,733 2.1 %
--------- --------
Noninterest expenses
Personnel expense 6,243 5,326
Occupancy and equipment expense 1,456 1,222
Intangibles amortization 95 45
Other operating expenses 2,938 2,655
--------- --------
Total noninterest expenses 10,732 9,248 16.0 %
--------- --------
Income before income taxes 7,283 7,307 -0.3 %
Income taxes 2,563 2,614 -2.0 %
--------- --------
Net income $ 4,720 4,693 0.6 %
========= ========
Earnings per share - basic $ 0.50 0.50 0.0 %
Earnings per share - diluted 0.49 0.49 0.0 %
ADDITIONAL INCOME STATEMENT
INFORMATION
Net interest income, as reported $14,773 13,342
Tax-equivalent adjustment (1) 123 141
--------- --------
Net interest income, tax-equivalent $14,896 13,483 10.5 %
========= ========
(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.
First Bancorp and Subsidiaries
Financial Summary - page 2
Three Months Ended
March 31,
-------------------- Percent
PERFORMANCE RATIOS (annualized) 2004 2003 Change
------------------------------
Return on average assets 1.28 % 1.49 %
Return on average equity 13.09 % 14.25 %
Net interest margin - tax
equivalent (1) 4.37 % 4.59 %
Efficiency ratio - tax
equivalent (1) (2) 57.37 % 53.72 %
Net charge-offs to average loans 0.07 % 0.11 %
Nonperforming assets to
total assets (period end) 0.33 % 0.33 %
SHARE DATA
Cash dividends declared $ 0.24 0.23 4.3 %
Stated book value 15.22 14.19 7.3 %
Tangible book value 9.87 10.32 -4.4 %
Common shares outstanding
at end of period 9,458,133 9,411,451
Weighted average shares
outstanding - basic 9,467,371 9,360,692
Weighted average shares
outstanding - diluted 9,649,939 9,539,351
Shareholders' equity to assets 9.63 % 10.09 %
AVERAGE BALANCES (in thousands)
Total assets $1,482,987 1,278,293 16.0 %
Loans 1,236,076 1,049,781 17.7 %
Earning assets 1,372,109 1,192,438 15.1 %
Deposits 1,260,093 1,105,333 14.0 %
Interest-bearing liabilities 1,182,884 1,021,886 15.8 %
Shareholders' equity 145,036 133,529 8.6 %
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
(2) Calculated by dividing noninterest expense by the sum of tax-
equivalent net interest income plus noninterest income.
TREND INFORMATION
($ in thousands except per share data)
For the Three Months Ended
March Dec. Sept. June March One
INCOME STATEMENT 31, 31, 30, 30, 31, Year
2004 2003 2003 2003 2003 Change
------- -------- ------- ------- ------- --------
Net interest income -
tax equivalent (1) $14,896 14,828 14,160 13,807 13,483 10.5 %
Taxable equivalent
adjustment (1) 123 125 119 133 141 -12.8 %
Net interest income 14,773 14,703 14,041 13,674 13,342 10.7 %
Provision for loan
losses 570 925 695 540 520 9.6 %
Noninterest income 3,812 3,781 3,802 3,602 3,733 2.1 %
Noninterest expense 10,732 10,091 9,273 9,352 9,248 16.0 %
Income before income
taxes 7,283 7,468 7,875 7,384 7,307 -0.3 %
Income taxes 2,563 2,611 2,819 2,573 2,614 -2.0 %
Net income 4,720 4,857 5,056 4,811 4,693 0.6 %
Earnings per share -
basic 0.50 0.52 0.54 0.51 0.50 0.0 %
Earnings per share -
diluted 0.49 0.51 0.53 0.50 0.49 0.0 %
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
First Bancorp and Subsidiaries
Financial Summary - page 3
March Dec. Sept. June March One
PERIOD END BALANCES 31, 31, 30, 30, 31, Year
(in thousands) 2004 2003 2003 2003 2003 Change
---------- --------- --------- --------- --------- ----
Assets $1,494,418 1,475,769 1,357,222 1,325,803 1,323,647 12.9%
Securities 112,915 117,661 103,825 91,869 95,814 17.8%
Loans 1,251,923 1,218,895 1,142,900 1,107,997 1,071,432 16.8%
Allowance for
loan losses 13,917 13,569 12,700 12,243 11,898 17.0%
Intangible assets 50,621 50,701 36,623 36,667 36,426 39.0%
Deposits 1,290,272 1,249,364 1,143,798 1,151,969 1,143,813 12.8%
Borrowings 51,000 76,000 66,000 31,000 36,000 41.7%
Shareholders'
equity 143,929 141,856 138,088 135,327 133,551 7.8%
For the Three Months Ended
--------------------------
March Dec. Sept. June March One
YIELD INFORMATION 31, 31, 30, 30, 31, Year
2004 2003 2003 2003 2003 Change (3)
------- ------ ------ ------ ------ -----
Yield on loans 5.86% 5.93% 6.08% 6.36% 6.57% -71 bp
Yield on securities -
tax equivalent (1) 5.05% 5.07% 5.06% 5.43% 5.84% -79 bp
Yield on other earning
assets 1.50% 1.92% 2.10% 2.00% 2.34% -84 bp
Yield on all interest
earning assets 5.72% 5.78% 5.93% 6.13% 6.33% -61 bp
Rate on interest bearing
deposits 1.43% 1.47% 1.57% 1.77% 1.90% -47 bp
Rate on other interest
bearing liabilities 3.70% 3.24% 3.86% 5.08% 5.95% -225bp
Rate on all interest
bearing liabilities 1.57% 1.56% 1.66% 1.87% 2.03% -46 bp
Interest rate
spread - tax
equivalent (1) 4.15% 4.22% 4.27% 4.26% 4.30% -15 bp
Net interest
margin - tax
equivalent (2) 4.37% 4.44% 4.52% 4.53% 4.59% -22 bp
Average prime rate 4.00% 4.00% 4.00% 4.23% 4.25% -25 bp
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-
equivalent adjustments.
(2) Calculated by dividing annualized tax equivalent net interest income
by average earning assets for the period. See footnote 1 on page 1
of Financial Summary for discussion of tax-equivalent adjustments.
(3) Expressed in terms of change in basis points from previous year.
March Dec. Sept. June March One
ASSET QUALITY DATA 31, 31, 30, 30, 31, Year
($ in thousands) 2004 2003 2003 2003 2003 Change
------- ------ ------ ------ ------ -----
Nonaccrual loans $3,383 4,274 4,343 3,741 2,941 15.0%
Restructured loans 20 21 21 22 38 -47.4%
Accruing loans > past due - - - - - -
Total nonperforming ------- ------ ------ ------ ------
loans 3,403 4,295 4,364 3,763 2,979 14.2%
Other real estate 1,585 1,398 929 1,174 1,326 19.5%
Total nonperforming ------- ------ ------ ------ ------
assets $ 4,988 5,693 5,293 4,937 4,305 15.9%
======= ======= ======= ======= =======
Net charge-offs to
average loans -
annualized 0.07% 0.13% 0.08% 0.07% 0.11% -4 bp*
Nonperforming loans to
total loans 0.27% 0.35% 0.38% 0.34% 0.28% -1 bp*
Nonperforming assets to
total assets 0.33% 0.39% 0.39% 0.37% 0.33% 0 bp*
Allowance for loan
losses to total loans 1.11% 1.11% 1.11% 1.10% 1.11% 0 bp*
* Expressed in terms of change in basis points from previous year.
SOURCE First Bancorp
-0- 04/21/2004
/CONTACT: James H. Garner of First Bancorp, +1-910-576-6171/
/Web site: http://www.firstbancorp.com /
(FBNC)
CO: First Bancorp
ST: North Carolina
IN: FIN
SU: ERN