Slide 1: Second Quarter Update
re, Second Quarter Update FIRST BANK 2026 rae 1 oS He eX -
Slide 2: Important information
Important information Caution Regarding Forward-Looking Statements Non-GAAP Measures This presentation contains certain forward-looking statements within the meaning of Section 21E of the This presentation contains financial information, Securities Exchange Act of 1934 and the Private Securities Lit
Slide 3: Company overview
Company overview Bank Holding Company First Bancorp Subsidiary Bank First Bank Headquarters Southern Pines, North Carolina Established 1935 as Bank of Montgomery Assets * $13.0 billion Loans * $9.0 billion Deposits * $11.1 billion Branches * 113 in NC & SC Employees * 1,396 full-time equivalent empl
Slide 4: First Bank: The Bank of the Carolinas
First Bank: The Bank of the Carolinas Pending Acquisition of Carolina Bank On July 14, 2026, First Bancorp and Carolina Bank & Trust Company announced the signing of a definitive merger agreement under which First Bancorp will acquire First Carolina in a stock and cash transaction with an aggregate
Slide 5: First Bank post acquisition
First Bank post acquisition Our mission Our locations To be the best community bank in every community we serve and through every delivery channel we offer. Our core values Carolina Bank (14) FBNC (113) Be committed to safety and soundness. Provide accurate, prompt, courteous service. Help our clien
Slide 6: National recognition
National recognition Best Employer in #23 in Forbes #14 in S&P North Carolina America’s Best Banks Top 50 Public Banks 2023, 2024, 2025 2026 2026 First Bank was named a First Bank was ranked #14 First Bank was named #23 best U.S. public bank by BEST EMPLOYER in North on Forbes’ 2026 America’s S&P Gl
Slide 7: Q2 2026 highlights
Q2 2026 highlights Q2 2026 Q1 2026 CHANGE Net income $50.5 million $46.7 million +$3.8 million Provision for Credit Losses $1.1 million $3.1 million -$2.0 million Diluted EPS $1.22 $1.13 +$0.09 ROA 1.56% 1.48% +8 bps ROCE 11.89% 11.22% +67 bps ROTCE (1) 16.88% 16.05% +83 bps Net Interest Margin (2)
Slide 8: Q2 2026 summary
Q2 2026 summary Earnings • 2Q 26 net income of $50.5 million • ROA of 1.56% $50.5 million • ROCE of 11.89% Net income • ROTCE 16.88% • Management continues to control expenses resulting in $62.8 million of NIE Margin • NIM increased 4 basis points to 3.71% $1.22 • Net Interest Income +$4.1 million t
Slide 9: Net interest margin (NIM)
Net interest margin (NIM ) Net interest margin – tax-equivalent is calculated by dividing tax-equivalent net interest income by tax-equivalent average earning assets. Core net interest margin excludes accretion from purchase accounting loan discounts 3.90% Reported Core 3.73% 3.69% 3.70% 3.60% 3.68%
Slide 10: Loan yields
Loan yields Stated Core 5.80% 5.69% 5.67% 5.70% 5.59% 5.57% 5.60% 5.53% 5.51% 5.51% 5.52% 5.60% 5.61% 5.47% 5.50% 5.45% 5.51% 5.51% 5.40% 5.44% 5.41% 5.39% 5.30% 5.37% 5.34% 5.30% 5.20% 5.10% 5.00% 4.90% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Slide 11: Asset yield trends
Total Loans, Fees, & Accretion Asset yield trends 5.80% 5.70% 5.69% 5.67% 5.59% 5.57% 5.60% 5.52% 5.53% 5.50% 5.40% 5.30% Total Securities 5.20% 3.00% 5.10% 2.69% 2.74% 2.71% 2.80% 2.55% 5.00% 2.60% 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 2.41% 2.40% 2.28% 2025 2025 2
Slide 12: Cost of funds and total cost of deposits
Cost of funds and total cost of deposits Cost of Funds Deposits 2.00% 1.81% 1.81% 1.79% 1.80% 1.62% 1.76% 1.60% 1.72% 1.51% 1.51% 1.48% 1.56% 1.57% 1.36% 1.34% 1.40% 1.31% 1.46% 1.46% 1.43% 1.32% 1.31% 1.20% 1.28% 1.00% 0.80% 0.60% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2
Slide 13: Deposit cost
Deposit cost Interest Bearing Deposits Total Cost of Deposits 2.30% 1.50% 1.46% 1.46% 2.18% 1.45% 1.43% 2.20% 2.14% 2.14% 1.40% 2.10% 1.35% 1.32% 1.31% 2.00% 1.97% 1.94% 1.30% 1.28% 1.89% 1.90% 1.25% 1.20% 1.80% 1.15% 1.70% 1.10% 1.60% 1.05% 1.50% 1.00% 1st Quarter 2nd Quarter 3rd Quarter 4th Quarte
Slide 14: Strong capital levels
Strong capital levels Capital Ratios First Bancorp maintains strong 18.00% 6 bps capital levels. Through earnings, 6 bps First Bancorp continues to 16.00% 4 bps 16.12% 16.06% increase equity and capital. The asset and loan growth in the 14.00% 14.87% 14.81% 14.13% 14.09% second quarter increas
Slide 15: Strong deposit franchise supported by thriving markets
Strong deposit franchise supported by thriving markets Deposits end-of-period ($ in millions) Total deposits ended at $11.1 8.00% $11,500 billion, an increase of $72.4 million for the quarter, or 2.6% $11,085 $11,012 annualized. Brokered deposits $10,830 $10,881 $11,000 7.00% $10,748 remain minimal
Slide 16: Diverse deposit base
Diverse deposit base Deposits End-of-Period ($ in millions) The Company benefits from a granular deposit franchise, with $10,830 $10,881 $10,748 $11,085 $11,012 the top twenty depositors representing approximately 7% of total deposits. 33% 33% 32% 33% 32% Consumer deposits represent 42% of total dep
Slide 17: Allowance for credit losses
Allowance for credit losses Allowance for Allowance for Percent of Loans credit losses (ex credit losses loans outstanding Hurricane Helene) (Hurricane Helene) outstanding Commercial and industrial $ 1,014,295 $ 19,200 $ 0 1.89% Construction, development & other land loans 847,912 15,151 0 1.79% Com
Slide 18: Asset quality trends
Asset quality trends Annualized Net Charge Offs ACL / Loans 0.30% 1.50% 1.47% 1.44% 1.45% 1.42% 1.42% 0.25% 1.39% 1.40% 0.20% 1.35% 1.30% 0.14% 0.15% 1.25% 1.20% 0.10% 1.15% 0.06% 0.05% 0.06% 0.04% 1.10% 0.05% 1.05% 0.00% 1.00% Q2 25 Q3 25 Q4 25 Q1 26 Q1 26 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Nonperformin
Slide 19: Noninterest income
Noninterest income (Dollars in thousands) Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Service charges on deposit accounts $ 3,767 $ 3,976 $ 4,225 $ 4,269 $ 3,954 $ 4,205 Other service charges and fees 5,919 6,605 6,323 5,653 5,942 5,986 Presold mortgage loan fees and gains on sale 450 315 471 583 669 660 Co
Slide 20: Noninterest expense
Noninterest expense (Dollars in thousands) Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Salaries, incentives and commissions expense $28,661 $29,005 $31,065 $30,747 $29,978 $31,529 Employee benefit expense 6,095 6,187 5,751 6,673 6,516 6,958 Total personnel expense 34,756 35,192 36,816 37,420 36,494 38,487 O
Slide 21: Investment thesis
Investment thesis Regional bank with strong culture that offers many of the product capabilities found in larger national banks but delivers those services with a local community bank focus. Capabilities include Mobile Banking, Wealth Management, Credit Card, Treasury Services, and Mortgage Banking.
Slide 22: Valuation
Valuation Price / Tangible Common Book Value 2.34x 2.22x Price to Tangible Common 2.17x 2.12x Book Value Median = 1.96x 2.02x 2.00 1.88x 1.90x Chart reflects data available through S&P Global, and 1.68x therefore the tangible book 1.60x values are as of March 31, 2026 1.50 and the stock prices are a
Slide 23: Valuation
Valuation Price / 2026 Consensus EPS - Normalized 14.9x Median – 12.8x Price to Earnings 13.8x 13.2x 13.5x 13.x Based on SNL Mean Normalized 12.6x 12.2x 2026 EPS Estimate of $4.65, the 11.8x FBNC price to earnings ratio is 11.3x 11.4x 13.8x based on July 15, 2026, closing price for FBNC stock of $64
Slide 24: North Carolina & South Carolina: Thriving states for business
North Carolina & South Carolina: Thriving states for business Growing populations North Carolina • Currently the 9th most populous state • Projected 7th by 2040 – and within 1% of 5th most populated • 4th highest net increase in population in 2024 • Projected to grow 20% over the next 20 years – 5th
Slide 25: Corporate citizenship
Corporate citizenship FIRST BANK
Slide 26: Investing in our communities
Investing in our communities A proud community partner in the Carolinas since 1935 First Bank has long been a committed partner in the communities it serves across the Carolinas. The following are just some of the investment areas made over the recent years. . Ensuring equitable Improving the lives
Slide 27: Social responsibility
Social responsibility Diversity and inclusion Financial wellness We treat customers and associates with respect, We provide financial education resources and tools to help communicate openly, and value the unique contributions of members of our communities build brighter financial futures. every ind
Slide 28: Thank you!
y FIRST BANK Thank you! 2 ee a | IIE wl sie} A -