Slide 1: First Bank 2025 Third Quarter Update
FIRST BANK 2025 Third Quarter Update
Slide 2: Important Information: Caution Regarding Forward-Looking Statements
2 Important Information Caution Regarding Forward-Looking Statements This presentation contains certain 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, including those regarding First Bancor
Slide 3: Company Overview
3 Bank Holding Company First Bancorp Subsidiary Bank First Bank Headquarters Southern Pines, North Carolina Established 1935 as Bank of Montgomery Assets $12.8 billion Loans $8.4 billion Deposits $10.9 billion Branches * 113 in NC & SC Employees * 1,352 full-time equivalent employees Ranking 4th lar
Slide 4: Our Core Values, Mission and Footprint
4 Our Core Values To be the best community bank in every community we serve and through every delivery channel we offer. Safety and Soundness We ensure long term financial stability by enhancing trust and confidence and providing a safe environment. Knowledge and Accuracy Employ the best associates
Slide 5: National Recognition
5 National Recognition KBW Bank Honor Roll Top 4% of Banks Over $500 million in Assets - 2022 Included for the first time in a select group of 14 banks (4% of banking industry over $500 million) for increasing earnings per share for each of the past 10 years. Best Employer in North Carolina – 2023,
Slide 6: Q3 2025 Highlights
6 Q3 2025 Highlights Q3 2025 Q2 2025 CHANGE Net income (1) (2) $20.4 million $38.6 million -$18.2 million Provision for Credit Losses (1) $3.4 million $2.2 million -$1.2 million Diluted EPS (1) (2) $0.49 $0.93 -$0.44 Adjusted Diluted EPS $1.01 $0.93 +$0.08 ROA 0.64% 1.24% -60 bps Adjusted ROA 1.31%
Slide 7: Q3 2025 Summary
7 "We are very pleased with the Company’s continued performance improvement. We have meaningful loan and deposit growth through three quarters and we have expanded our Net Interest Margin for six consecutive quarters. ” Richard H. Moore, First Bancorp Chairman and CEO Capital Ratios Q3 2025 Summary
Slide 8: Net Interest Margin (tax-equivalent)
8 3.31% 3.08% 2.97% 2.88% 2.80% 2.87% 2.90% 3.08% 3.27% 3.32% 3.47% 3.18% 2.95% 2.86% 2.78% 2.69% 2.77% 2.82% 2.99% 3.19% 3.26% 3.40% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 Reported Core Net Interest Margin (tax-equ
Slide 9: Margin Trends
9 Margin Trends 3.32% 3.33% 3.30% 3.41% 3.42% 3.54% 3.32% 3.46% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% April 2025 May 2025 June 2025 July 2025 August 2025 September 2025 2nd Quarter 2025 3rd Quarter 2025 Net Interest Margin 3.32% 3.33% 3.30% 3.43% 3.43% 3.55% 3.32% 3.47% 2.50% 2.70% 2.90% 3.10% 3
Slide 10: Loan Yields
10 Loan Yields 5.22% 5.26% 5.32% 5.39% 5.45% 5.51% 5.51% 5.47% 5.52% 5.53% 5.69% 5.03% 5.08% 5.16% 5.25% 5.30% 5.37% 5.39% 5.34% 5.41% 5.44% 5.60% 4.90% 5.00% 5.10% 5.20% 5.30% 5.40% 5.50% 5.60% 5.70% 5.80% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 State
Slide 11: Asset Yield Trends
11 Asset Yield Trends 2.36% 2.43% 2.44% 2.45% 2.61% 2.61% 2.41% 2.55% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% April 2025 May 2025 June 2025 July 2025 August 2025 September 2025 2nd Quarter 2025 3rd Quarter 2025 Total Securities 4.70% 4.70% 4.68% 4.82% 4.84% 4.92% 4.69% 4.86% 4.00
Slide 12: Cost of Funds and Total Cost of Deposits
12 Cost of Funds and Total Cost of Deposits 0.94% 1.29% 1.46% 1.64% 1.79% 1.81% 1.81% 1.62% 1.51% 1.48% 1.51% 0.75% 1.08% 1.27% 1.41% 1.56% 1.72% 1.76% 1.57% 1.46% 1.43% 1.46% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2
Slide 13: Deposit Cost
13 Deposit Cost 2.13% 2.13% 2.15% 2.18% 2.20% 2.15% 2.14% 2.18% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% 2.10% 2.20% 2.30% April 2025 May 2025 June 2025 July 2025 August 2025 September 2025 2nd Quarter 2025 3rd Quarter 2025 Interest Bearing Deposits 1.43% 1.43% 1.44% 1.47% 1.48% 1.44% 1.43% 1.46% 1.00% 1
Slide 14: Strong Capital Levels
14 Strong Capital Levels First Bancorp maintains strong capital levels. The third quarter loan growth of $193.6 million was the driver of the decrease in regulatory capital ratios from Q2 2025 to Q3 2025, as loans have a higher risk weight than short term investments. Capital levels afford managemen
Slide 15: Strong Deposit Franchise Supported by Attractive Markets
15 $10,505 $10,531 $10,745 $10,830 $10,881 1.76% 1.57% 1.46% 1.43% 1.46% 2.59% 2.31% 2.14% 2.14% 2.18% 5.00% 4.50% 4.50% 4.50% 4.25% $7,000 $7,500 $8,000 $8,500 $9,000 $9,500 $10,000 $10,500 $11,000 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 3Q '24 4Q '24 1Q '25 2Q '25 3Q '25 Deposits Tot
Slide 16: Granular, Diverse and Relationship-focused Customer Funding Base
16 Granular, Diverse and Relationship- focused Customer Funding Base The Company benefits from a granular deposit franchise, with the top twenty depositors representing approximately 6% of total deposits. Consumer deposits represent 42% of total deposits. Business deposits represent 58% of total dep
Slide 17: Allowance for Credit Losses – 9/30/25
17 Allowance for Credit Losses – 9/30/25 Loans Outstanding Allowance for Credit Losses (ex Hurricane Helene) Allowance for Credit Losses (Hurricane Helene) % of Loans Outstanding Commercial and industrial $ 904,226 $ 18,528 $ 24 2.05% Construction, development & other land loans 688,302 9,465 199 1.
Slide 18: Asset Quality Trends
18 Asset Quality Trends 1.53% 1.51% 1.49% 1.47% 1.44% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 ACL / Loans 0.29% 0.30% 0.27% 0.28% 0.31% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Nonperforming Asset Ratio 0.11% 0.04% 0.17% 0.06
Slide 19: Noninterest Income
19 Noninterest Income (Dollars in thousands) Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Service charges on deposit accounts $4,139 $4,320 $4,293 $3,767 $3,976 $4,225 Other service charges and fees 5,314 5,555 5,828 5,883 6,595 6,355 Presold mortgage loan fees and gains on sale 588 690 676 450 315 471 Commi
Slide 20: Noninterest Expense
20 Noninterest Expense $58,291 $59,850 $58,279 $57,893 $58,983 $60,211 61.0% 61.0% 56.5% 54.2% 52.5% 50.7% 45% 50% 55% 60% 65% $45,000 $47,500 $50,000 $52,500 $55,000 $57,500 $60,000 $62,500 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Th ou sa nd s Non interest expense Efficiency ratio (Dollars in thousands
Slide 21: Investment Thesis
21 Investment Thesis Bank that offers many of the product capabilities found in larger regional banks but delivers those services with a local community bank focus • Strong culture • Mobile Banking, Wealth Management, Credit Card, Treasury Services, and Mortgage Banking Centered in one of the fastes
Slide 22: Valuation: Price to Tangible Common Book Value
22 Valuation Price to Tangible Common Book Value Chart reflects data available through S&P Global, and therefore the tangible book values are as of June 30, 2025 and the stock prices are as of October 17, 2025 for all companies presented. Based on 9/30/25 amounts for tangible common book value ($26.
Slide 23: Valuation: Price to Earnings
23 Valuation Price to Earnings Based on SNL Mean Normalized 2025 EPS Estimate of $3.61, the FBNC price to earnings ratio is 13.2x based on October 17, 2025, closing price for FBNC stock of $47.67. Source: S&P Global 10.9x 11.1x 11.3x 11.5x 12.2x 12.5x 12.6x 13.2x 13.5x 16.1x AUB UBSI UCB TOWN ABCB S
Slide 24: North Carolina & South Carolina: Great States for Business
24 North Carolina & South Carolina Great States for Business High Influx of Population North Carolina is 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 yea
Slide 25: Service Excellence Standards
25 Service Excellence Standards Convenience and Ease Our customers choose when, where, and how they do business with us. Courteous Service We treat customers and fellow associates with respect, effectively communicate, and celebrate our unique contributions. Knowledge and Accuracy We employ the best
Slide 26: Corporate Citizenship
26 Corporate Citizenship
Slide 27: Corporate Citizenship
27 Corporate Citizenship First Bank has long been a committed partner in the many communities it serves across the Carolinas. The following are just some of the investment areas made over the recent years. A proud Carolinas community partner since 1935 Ensuring Equitable Access to Education — Area p
Slide 28: Social Responsibility and Diversity Council
28 We treat customers and associates with respect, communicate effectively and celebrate the unique contributions of each individual. We strive to build an inclusive organization that represents the communities we serve. Social Responsibility Diversity Council Represent the ideas and concerns of ass
Slide 29: Thank you!
29 Thank you!