Slide 1: Secure Trusted
SECURE TRUSTED
Slide 2: Caution Regarding Forward-Looking Statements
This report 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, which statements are inherently subject to risks and uncertainties. Forward-looking statements ar
Slide 3: NASDAQ ticker FBNC
NASDAQ ticker FBNC Headquarters Troy, NC Subsidiary Bank First Bank Established 1935 as Bank of Montgomery Assets 1 $3.3 billion Loans 1 $2.4 billion Deposits 1 $2.7 billion Branches 97 in NC, SC, VA Employees 822 full-time equivalent employees Customers 270,000 Ranking 4 th largest bank in North Ca
Slide 4: Branch Network
First Bank Branches (91) First Bank of Virginia Branches*(6) Loan Production Office *Operating as a branch of First Bank NC Branch Network
Slide 5: Company Highlights
Company Highlights • Seasoned Management and Board of Directors • High Growth Company • Organic • Acquired • Earnings • Strong Net Interest Margin • 24 consecutive years of Profitability since 1987 IPO • Asset Quality • Non-performing assets elevated compared to prior periods • Stable and Manageable
Slide 6: Experienced Executive Officers to Lead Growth Strategy
Name / Position Experience with First Bank Jerry L. Ocheltree Director, President & Chief Executive Officer 13 years (26 years Banking Experience) Anna G. Hollers EVP, Chief Operating Officer & Corporate Secretary 39 years Teresa C. Nixon EVP & Chief Lending Officer 22 years Eric P. Credle EVP & Chi
Slide 7: Board of Directors
Board of Directors Keen Vision and Diverse Experience Board Members Include: § Former State Treasurer § Former Lieutenant Governor § Former Speaker of North Carolina House of Representatives and current member of North Carolina Senate § 8 Business Executives from a wide range of industries § 1 CPA i
Slide 8: Management Structure
Management Structure Trusted Financial Professionals Provide a Suite of Services • 10 Regional Executives report to the President • Branch Managers report to Regional Managers • Regional Executives review loans with CLO and credit staff weekly • Cash management, remote deposit, online banking, mobil
Slide 9: Total Assets
Total Assets Asset Growth - June 1999 to June 2011 534% Growth
Slide 10: DeNovo Branches Opened 1999-2010
DeNovo Branches 22 New Branches Opened from 1999 - 2010 With Current Deposits of $525 Million Deposits as of 6-30-2011
Slide 11: Acquisition History 2000-2011
2000 2001 2001 2001 2001 2003 - 20083 - 2003 2006 2006 2008 2011 Acquisition History 2000 - 2011 49 Branches - $2.2 Billion Virginia North Carolina South Carolina Merger with First Savings Bancorp, Inc - Purchased Salisbury Branch = Acquired Aberdeen & Hobbs Insurance & Realty Co. ‘Acquired Century
Slide 12: Cooperative Bank
Cooperative Bank Wilmington, NC Acquisition Date: June 19, 2009 Assets: $959 million Deposits: $717 million Loans: $835 million Number offices: 21 in NC and 3 in SC Retained: 17 in NC and 2 in SC Discount Bid: $123 million Deposit Premium: 0 Bargain Purchase Gain: $68 million FDIC-Assisted Acquisiti
Slide 13: Cooperative Bank branches
Cooperative Bank 24 branches - $959 million in assets 5) ear
Slide 14: FDIC-Assisted Acquisition
FDIC-Assisted Acquisition Acquisition Date: January 21, 2011 Assets: $190 million Deposits: $192 million Loans: $154 million Number Offices: 5 Discount Bid: $23.9 million Deposit Premium: 0 Bargain Purchase Gain: $10 million Bank of Asheville Asheville, NC
Slide 15: Bank of Asheville Acquisition
Bank of Asheville Acquisition January 21, 2011
Slide 16: American Defense Corridor
American Defense Corridor Growth Opportunities in Existing Markets § North Carolina has the third largest military presence in America. § The American Defense Corridor (ADC) is an emerging defense industry in NC. By 2013 available jobs in the ADC will increase to 54,000. § We have market presence in
Slide 17: Net Income Available to Common Shareholders
Net Income Available to Common Shee ele $60,000 $50,000 $40,000 $30,000 7,239 19417 20,114 4 i 4 4 u $20,000 | $0 thousands se S e > s Ys s Return on Average Assets 1.48 1.45 1.30 1.30 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
Slide 18: See Appendix for list of Companies
% 1 See Appendix for list of Companies.
Slide 19: FBNC Deposit Mix
FBNC Deposit Mix 6-30-2011 = Non-interest bearing demand Now Money Market = Brokered Internet CDs = Other CDs > $100m 1.56.4 5.3 Other CDs Cost of Funds 2011Q2 Interest Exp / Deposits and Borrowings uFirst Bancorp «Selected SE Peer Group % 1.40 1.20 1.00 0.80 0.60 0.40 0.20 || 0.00 201192
Slide 20: Noninterest Income
Noninterest Income Core noninterest income to average assets - Generally below peer ratios Presents opportunities for improvement First Bank Insurance Services - Offers P&C insurance products Wealth Management Division - New hire starting August 15 to build out full platform
Slide 21: Non-Interest Expenses / Average Assets
Non-Interest Expenses 1 / Average Assets FBNC consistently operates more efficiently than the Peer Group 1 Non-interest expenses adjusted to exclude losses on OREO
Slide 22: Asset Quality
Asset Quality Nonperforming assets and provisions for loan losses remain at elevated levels North Carolina property values have declined significantly and unemployment rates remain high NPA’s - stable and manageable Non-covered NPA’s/Total Assets = 3.89% to 4.25% over the past 12 months Covered NPA’
Slide 23: Unemployment Rates Per County
Unemployment Rates Per County 4% - 8% 8% - 12% 12% +
Slide 24: Asset Quality: Elevated Nonperforming Assets
Asset Quality: Elevated Levels of Nonperforming Assets Compared to Prior Periods Stabilizing Over the Past Two Quarters
Slide 25: Provision for Loan Losses
Provision for Loan Losses Excluding Provisions for Loans Covered under FDIC Loss Share Agreements Ø First Bancorp has remained profitable in spite of elevated provisions
Slide 26: Loan Categories
Commercial, financial, and agricultural Real Estate - construction, land development & other land loans Real Estate - mortgage - residential (1-4 family first mortgages) Real Estate - mortgage - home equity loans Real Estate - mortgage - commercial and other Installment loans to individuals
Slide 27: Capital
Capital Capital Ratios are at/near 20+ year highs $65 million of TARP capital remains Has been leveraged for growth (two FDIC acquisitions) Insurance against an uncertain economy Provides flexibility for future growth, including M&A Applied for SBLF Preference is to repay from retained earnings, pos
Slide 28: Capital Ratios
Note: TARP equity represents approximately 3.00% of the Total Risk Based Capital Ratio and 2.00% of the Leverage Capital Ratio Capital Ratios
Slide 29: Successful Financial Performance: Tangible Book Value per Share
Successful Financial Performance FBNC Tangible Book Value per Share Tangible Book Value per Share iB eB 9.18" -12.57°12.63 As of December 31,
Slide 30: Successful Financial Performance: Cash Dividends Per Share
Successful Financial Performance FBNC Cash Dividends Per Share Cash Dividends Per Share
Slide 31: Tangible Book Value Plus Cumulative Cash Dividends
Successful Financial Performance FBNC Tangible Book Value Per Share + Cumulative Cash Dividends Since 1991 mTangible Book Value m= Cumulative Cash Dividends since 1991 25.00 20.00 15.00 10.00 5.00 0.00 1990 2000 2010 2011Q2 * Note: Dividends are shown as paid and are not assumed to be reinvested
Slide 32: First Bancorp Stock Valuation - FBNC
First Bancorp Stock Valuation - FBNC FBNC - August 4, 2011 Closing Price = $ 9.84 June 30, 2011 Tangible Book Value Common = $12.88 Consensus 2012 Diluted Earnings Per Share - Common (4 analysts) = $ 1.01 2011 Annualized Dividend Rate (Per Share) = $ 0.32 Price to Tangible Book = 0.76x Price to 2012
Slide 33: Longevity and Experienced Management Team
§ Longevity and Experienced Management Team § Solid Capital Position § Positioned as a Regional Consolidator • M&A and FDIC Assisted Deals § Diversified Markets and Revenues § Funded by Stable Core Deposits - True Retail Franchise § Effective Management of Interest Rate Risk § Resilient Net Interest
Slide 34: For Generations
FOR GENERATIONS
Slide 35: Appendix: Select SE Peer Group
Appendix Select SE Peer Group