Executive Summary

GAAP EPS was $0.08 and net income was $3.6M, driven by a deliberate $36.8M securities loss-earnback repositioning; adjusted EPS was $0.76 and adjusted net income $31.7M, reflecting core strength despite the loss .
Net interest income rose to $88.8M (+7% QoQ), and tax-equivalent NIM expanded 17 bps to 3.07%, benefiting from lower deposit costs and higher securities yields after the portfolio action .
Noninterest income was -$23.2M due to the securities loss; excluding it, noninterest income was $13.6M, essentially flat QoQ; noninterest expenses fell $1.6M QoQ to $58.3M .
Capital and credit remained strong: CET1 14.33%, total risk-based 16.61%, NPA/Assets 0.39%, net charge-offs 0.04% annualized; deposit mix stable with 32% noninterest-bearing .
Wall Street consensus from S&P Global was unavailable due to rate limits; therefore estimate comparisons are not included (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

NIM expanded 17 bps QoQ to 3.07% as deposit costs fell 28 bps and the securities portfolio yield rose 25 bps post repositioning; net interest income increased to $88.8M .
Expense discipline: noninterest expenses declined $1.6M QoQ to $58.3M, largely on lower personnel expense; FTE fell 50 YoY to 1,371 .
CEO emphasized momentum: “We have positive momentum starting 2025… adjusted diluted earnings per share of $0.76… meaningful increases from the third quarter… strategic balance sheet initiatives… tailwinds for 2025.” .

What Went Wrong

GAAP earnings were significantly impacted by the $36.8M securities loss; noninterest income printed -$23.2M in Q4 2024 .
Effective tax rate spiked to 48.4% on incremental state tax items and NC corporate tax changes, lifting tax expense to $3.3M despite lower pretax income .
Loan yields slipped 4 bps QoQ to 5.47%; while deposit cost fell, higher unrealized AFS losses (-$368.1M) and the portfolio repositioning weighed on TCE (8.22%, -25 bps QoQ) .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Diluted EPS (GAAP)	$0.72	$0.45	$0.08
Adjusted EPS (non-GAAP)	N/A	$0.70	$0.76
Net Income ($USD Millions)	$29.7	$18.7	$3.6
Net Interest Income ($USD Millions)	$82.5	$83.0	$88.8
Total Interest Income ($USD Millions)	$126.6	$131.4	$132.4
Noninterest Income ($USD Millions)	$14.5	$13.6	-$23.2
Noninterest Expenses ($USD Millions)	$56.4	$59.9	$58.3
Provision for Credit Losses ($USD Millions)	$3.0	$14.2	$0.5
Tax-Equivalent NIM (%)	2.88%	2.90%	3.07%
Yield on Loans (%)	5.39%	5.51%	5.47%
Cost on Total Deposits (%)	1.41%	1.76%	1.57%

Loan Portfolio Mix ($USD Thousands)

Category	Q4 2023 Amount	Q3 2024 Amount	Q4 2024 Amount
Commercial & Industrial	$905,862	$847,284	$919,690
Construction, Development & Land	$992,980	$760,949	$647,167
CRE – Owner Occupied	$1,259,022	$1,226,050	$1,248,812
CRE – Non‑Owner Occupied	$2,528,060	$2,572,901	$2,625,554
Multi‑family	$421,376	$460,565	$506,407
Residential 1‑4 Family	$1,639,469	$1,737,133	$1,729,322
HELOC/Lines	$335,068	$331,072	$345,883
Consumer	$68,443	$76,787	$70,653
Loans, Gross	$8,150,280	$8,012,741	$8,093,488

KPIs and Capital

KPI	Q4 2023	Q3 2024	Q4 2024
NPA/Total Assets (%)	0.37%	0.38%	0.39%
NPL/Total Loans (%)	0.54%	0.55%	0.52%
Net Charge‑offs (Annualized, %)	0.09%	0.11%	0.04%
CET1 Ratio (%)	13.20%	14.34%	14.33%
Total Risk‑Based Capital (%)	15.54%	16.44%	16.61%
TCE / Tangible Assets (%)	7.56%	8.47%	8.22%
Noninterest‑Bearing Deposits (% of Total)	34%	32%	32%
Liquidity Ratio (On‑Balance Sheet, %)	N/A	17.7%	17.6%

Guidance Changes

No formal quantitative guidance was provided in the Q4 release. The company continued its dividend policy.

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Dividend per Share	Q4 2024	$0.22 (Q2/Q3 standard)	$0.22 declared on Dec 13, 2024; payable Jan 25, 2025	Maintained
Cash Dividend per Share	Post‑Q4 (Q1 2025)	$0.22	$0.22 declared Mar 14, 2025; payable Apr 25, 2025	Maintained

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript for FBNC was not available in our document corpus; themes are derived from primary press releases and 8‑K materials.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2024)	Trend
Net Interest Margin & Balance Sheet	Q2: NIM +7 bps to 2.87%; deposit cost up slightly; securities yield steady . Q3: NIM +3 bps to 2.90%; deposit cost stable; loan yield 5.51% .	NIM +17 bps to 3.07% on lower deposit rates and higher securities yield after loss‑earnback .	Improving
Deposit Costs & Mix	Q2/Q3: Noninterest‑bearing ~32%; brokered reduced; mix shifted to money market .	Total deposit cost fell to 1.57%; noninterest‑bearing remained 32% .	Improving costs; mix stable
Credit Quality & Hurricane Helene	Q3: $13.0M incremental CECL reserve; NPA/Assets 0.38% .	Reserve for Helene remained $13.0M; NPA/Assets 0.39%; net charge‑offs 0.04% .	Stable/contained
Securities Portfolio Strategy	Q2: No purchases; selective sales; VISA B share gain offset AFS loss . Q3: No net purchases; AFS unrealized losses improved .	Sold ~$283.8M AFS at $36.8M loss; purchased $495.0M at 5.27% yield; securities yield +25 bps .	Repositioned for higher yields
Liquidity & Capital	Q2: On‑balance 16.3%; total liquidity 34.6%; CET1 13.98% . Q3: On‑balance 17.7%; total liquidity 35.2%; CET1 14.34% .	On‑balance 17.6%; total liquidity 34.9%; CET1 14.33%; TRBC 16.61% .	Stable/strong

Management Commentary

CEO on momentum and strategy: “We have positive momentum starting 2025 with fourth quarter adjusted net income of $31.7 million, and adjusted diluted earnings per share of $0.76… strategic balance sheet initiatives that should provide tailwinds for 2025.” — Richard H. Moore .
On deposit costs and asset yields: management highlighted deposit rate declines and securities yield uplift in Q4 as core drivers of NIM expansion .
On Helene impacts: $13.0M incremental reserve maintained; focused borrower analyses and higher reserve rates applied to affected geographies .

Q&A Highlights

A Q4 2024 earnings call transcript for FBNC could not be located in our filings and press release repository; therefore, Q&A details and any verbal guidance clarifications are unavailable.

Estimates Context

S&P Global consensus estimates for FBNC Q4 2024 (EPS and revenue) were unavailable due to API rate limits at the time of retrieval; as a result, explicit vs‑consensus comparisons are not provided (S&P Global data unavailable).

Key Takeaways for Investors

Core earnings power improved: adjusted EPS rose to $0.76 and net interest income increased to $88.8M, signaling underlying strength despite the deliberate securities loss .
NIM tailwinds should continue near term given lower deposit costs and higher securities yields, with deposit cost at 1.57% and tax‑equivalent NIM at 3.07% .
Credit remains a non‑issue: net charge‑offs were 0.04% annualized and NPA/Assets 0.39%, even with Helene reserves held at $13.0M .
Balance sheet repositioning raises future yield capture, though it temporarily reduced GAAP earnings and lifted unrealized losses (AFS unrealized loss $368.1M) and modestly lowered TCE (8.22%) .
Capital is robust (CET1 14.33%; TRBC 16.61%), supporting continued dividends at $0.22 per share and flexibility for growth initiatives .
Deposit franchise stability (32% noninterest‑bearing) and granular mix support funding costs and NIM resilience into 2025 .
Near‑term stock narrative hinges on recognition of core NIM expansion and credit stability versus the one‑time securities loss; watch follow‑through in Q1 trends and any commentary on further portfolio actions .

Additional Q4‑Relevant Press Releases

Dividend declaration: $0.22 per share, payable Jan 25, 2025 .
Community/CSR initiatives: partnership with Carolina Hurricanes Foundation announced Jan 16, 2025, highlighting ongoing regional engagement (post‑Q4 timing) .

Prior Quarter References (for trajectory)

Q3 2024: EPS $0.45 (adjusted $0.70); NIM 2.90%; $13.0M Helene reserve booked; NPA/Assets 0.38% .
Q2 2024: EPS $0.70; NIM 2.87%; deposit growth and brokered reduction; NPA/Assets 0.37% .

All data above is sourced from First Bancorp’s Q4 2024 8‑K and press releases and prior quarter materials, with citations attached to each fact.

FIRST BANCORP /NC/ (FBNC)·Q4 2024 Earnings Summary