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1. Company Snapshot

1.a. Company Description

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina.It accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts.The company also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services.


In addition, it provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services.Further, the company offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services.As of December 31, 2021, it operated 121 branches comprising 114 branch offices located in North Carolina and seven branches in South Carolina.


First Bancorp was founded in 1934 and is headquartered in Southern Pines, North Carolina.

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1.b. Last Insights on FBNC

First Bancorp's recent performance was driven by strong Q2 earnings, surpassing both revenue and earnings estimates. The company reported a diluted earnings per share of $0.93, beating the Zacks Consensus Estimate of $0.88 per share. This represents a 32.9% increase from the same period last year. The strong earnings were supported by a 3.32% net interest margin, up from 3.25% in the previous quarter. Additionally, the company's efficiency ratio improved to 58.9%, indicating better cost management. The stable asset quality and ongoing asset repricing are expected to drive further net interest income expansion and higher return on equity.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Campbell & CO Investment Adviser LLC Purchases New Position in First Bancorp $FBNC

Nov -17

Source: defenseworld.net

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Adam Currie Appointed to Board of Directors of First Bank and First Bancorp

Oct -30

Source: prnewswire.com

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First Bancorp Inc ME Has $478,000 Position in Meta Platforms, Inc. $META

Oct -29

Source: defenseworld.net

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First Bancorp Inc ME Has $1.59 Million Position in JPMorgan Chase & Co. $JPM

Oct -29

Source: defenseworld.net

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Here's What Key Metrics Tell Us About First Bancorp (FBNC) Q3 Earnings

Oct -23

Source: zacks.com

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First Bancorp (FBNC) Q3 Earnings and Revenues Surpass Estimates

Oct -22

Source: zacks.com

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First Bancorp Reports Third Quarter Results

Oct -22

Source: prnewswire.com

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First Bancorp of Indiana (OTCMKTS:FBPI) Stock Price Up 3.7% – Time to Buy?

Oct -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Banking and Related Activities

Expected Growth: 3.0%

First Bancorp's 3.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic acquisitions. Additionally, improved operational efficiency, enhanced digital banking capabilities, and a favorable interest rate environment contribute to the growth. Furthermore, a strong risk management framework and diversified revenue streams support the segment's expansion.

7. Detailed Products

Checking Accounts

Personal and business checking accounts with various features such as online banking, mobile banking, and bill pay

Savings Accounts

High-yield savings accounts with competitive interest rates and low minimum balance requirements

Loans

Personal and commercial loans for various purposes such as mortgages, auto loans, and lines of credit

Credit Cards

Personal and business credit cards with rewards programs and competitive interest rates

Investment Services

Brokerage services and investment products such as stocks, bonds, and mutual funds

Mortgage Services

Residential and commercial mortgage loans with competitive rates and terms

Treasury Management

Cash management services for businesses to manage their cash flow and optimize their financial performance

Wealth Management

Comprehensive wealth management services including financial planning, investment management, and trust services

8. First Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

First Bancorp operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

First Bancorp's customers have limited bargaining power due to the company's diversified customer base and lack of concentration. The company's strong relationships with customers also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

First Bancorp has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power in its dealings with suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. This limits the threat of new entrants and gives First Bancorp a competitive advantage.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. First Bancorp faces intense competition from other banks and financial institutions, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.55%
Debt Cost 5.33%
Equity Weight 68.45%
Equity Cost 9.11%
WACC 7.92%
Leverage 46.10%

11. Quality Control: First Bancorp passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SmartFinancial

A-Score: 6.0/10

Value: 6.6

Growth: 5.8

Quality: 6.4

Yield: 2.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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First Bank

A-Score: 5.9/10

Value: 4.8

Growth: 4.9

Quality: 6.8

Yield: 4.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
NSTS Bancorp

A-Score: 5.8/10

Value: 7.7

Growth: 5.7

Quality: 4.1

Yield: 0.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Equity Bancshares

A-Score: 5.5/10

Value: 6.1

Growth: 6.6

Quality: 5.8

Yield: 3.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
MidWestOne Financial Group

A-Score: 5.1/10

Value: 6.0

Growth: 2.1

Quality: 7.0

Yield: 7.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Live Oak Bancshares

A-Score: 4.6/10

Value: 6.0

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

51.03$

Current Price

51.03$

Potential

-0.00%

Expected Cash-Flows