Filed by: First Bancorp
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: First Bancorp
Commission File No. 0-15572
THE FOLLOWING IS A PRESS RELEASE THAT WAS DISSEMINATED TO THE PUBLIC ON APRIL
13, 2000.
First Bancorp Reports 24.8%
Increase in Quarterly Earnings
Thursday, April 13, 2000 (For Immediate Release)
- ------------------------
TROY, N.C. - First Bancorp (NASDAQ - FBNC), the parent company of First Bank,
announced record quarterly earnings today of $1,842,000, a 24.8% increase over
the $1,476,000 earned in the first quarter of 1999. Earnings per share on a
diluted basis increased 25.0% to $0.40 per share for the first quarter of 2000
from the $0.32 reported for the first quarter of 1999.
The earnings reported for the first quarter of 2000 represent a return on
average assets of 1.33% and a return on average equity of 16.50%.
The Company said that strong growth in loans and deposits continues to be the
driving force for the increases in earnings. Comparing March 31, 2000 to March
31, 1999, loans have increased 20.1% and deposits have increased 13.9%. Also
contributing to the 17.0% increase in net interest income was a higher net
interest margin. The Company's net interest margin of 5.03% for the first
quarter of 2000 was slightly higher than the 4.97% yield realized in the first
quarter of 1999. Noninterest income increased 5.7%, while noninterest expenses
increased 9.6% when comparing the first quarter of 2000 to the first quarter of
1999. The Company's effective tax rate decreased from 35.2% in the first quarter
of 1999 to 33.2% in the first quarter of 2000, primarily due to the favorable
state tax treatment realized by a subsidiary of the Company that was
incorporated in the second quarter of 1999.
The Company's asset quality ratios remain strong with an annualized net
charge-off to average loans percentage of 0.07% and a nonperforming loans to
total loans percentage of 0.15%.
"We had a very successful quarter. I think the numbers speak pretty well for
themselves," stated President and CEO Jimmie Garner. "I'd like to congratulate
our employees for the attainment of another milestone in reaching $500 million
in deposits during the first quarter," added Mr. Garner.
Mr. Garner also commented on First Bancorp's pending acquisition of First
Savings Bancorp, Inc., a savings institution with six branch offices in Moore
County and total assets of approximately $330 million. "We are moving forward
with the process necessary to effectuate this transaction," noted Mr. Garner.
"We anticipate the consummation of this merger taking place in the next 2 to 3
months. We are eager to begin business with our new partner," added Mr. Garner.
The transaction with First Savings Bancorp, Inc. was announced in a joint press
release on December 16, 1999. Interested parties can obtain a copy of the press
release by contacting First Bancorp at the number noted below.
Mr. Garner also noted the opening of First Bank's newest branch in Pittsboro,
Chatham County, on March 25, 2000. This is First Bank's second branch in Chatham
County and brings the total First Bank network to 35 branches.
The Company reported that in light of market conditions a total of 43,900 shares
of its stock were repurchased by the Company during the first quarter of 2000 at
an average cost of $15.86 per share.
Share data for 1999 has been adjusted to reflect the 3-for-2 stock split that
was paid on September 13, 1999 to shareholders of record as of August 30, 1999.
First Bancorp is a bank holding company based in Troy, North Carolina. Its
principal activity is the ownership and operation of First Bank, a
state-chartered bank that operates 35 branch offices in a fourteen county market
area centered in Troy. First Bancorp's common stock is traded on the NASDAQ
National Market under the symbol FBNC. Broker contacts for market makers of
First Bancorp's common stock include J.C. Bradford & Co. (Clay Young at
1-800-830-6071), Legg Mason (Paul Newton at 1-800-628-5770), Scott &
Stringfellow, Inc. (Jeff O'Quinn at 1-800-763-1893, or Alan Tilley at
1-800-476-1824), Trident Securities (Sadler Stukes at 1-800-340-6321), and
Wachovia Securities, Inc. (Kel Normann at 1-800-929-1019).
Please visit our website at www.firstbancorp.com. For additional financial data,
please see the attached Financial Summary. For additional information, please
contact:
Mr. James H. Garner
President & Chief Executive Officer
Telephone: (910) 576-6171
This press release 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 are
statements that include projections, predictions, expectations or beliefs about
future events or results or otherwise are not statements of historical fact.
Such statements are often characterized by the use of qualifying words (and
their derivatives) such as "expect," "believe," "estimate," "plan," "project,"
or other statements concerning opinions or judgments of the Company and its
management about future events. Factors that could influence the accuracy of
such forward-looking statements include, but are not limited to, the financial
success or changing strategies of the Company's customers, actions of government
regulators, the level of market interest rates, and general economic conditions.
Investors and security holders are advised to read the joint proxy
statement/prospectus regarding the merger referenced in the foregoing
information when it becomes available, because it will contain important
information. The joint proxy statement/prospectus will be filed with the
Securities and Exchange Commission by First Bancorp. Investors and security
holders may obtain a free copy of the joint proxy statement/prospectus (when
available) and other documents filed by First Bancorp at the Commission's
website at www.sec.gov. The joint proxy statement/prospectus and other relevant
documents may also be obtained from First Bancorp by directing such request to
First Bancorp, 341 North Main Street, Troy, North Carolina 27371-0508,
Attention: Anna G. Hollers, telephone: (910) 576-6171.
<PAGE>
================================================================================
First Bancorp and Subsidiaries
Financial Summary
================================================================================
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------- Percent
($ in thousands except per share data -unaudited) 2000 1999 Change
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCOME STATEMENT
Interest income
- ---------------
Interest and fees on loans $ 9,693 7,919
Interest on investment securities 1,076 1,035
Other interest income 209 204
-------- -------
Total interest income 10,978 9,158 19.9%
------- -------
Interest expense
- ----------------
Interest on deposits 4,338 3,677
Interest on short-term borrowings 269 35
------- -------
Total interest expense 4,607 3,712 24.1%
------- -------
Net interest income 6,371 5,446 17.0%
Provision for loan losses 310 200 55.0%
------- -------
Net interest income after provision
for loan losses 6,061 5,246 15.5%
------- -------
Noninterest income
- -----------------
Service charges on deposit accounts 695 664
Other service charges, commissions, and fees 446 371
Fees from presold mortgages 86 171
Commissions from insurance sales 145 87
Data processing fees 20 10
Securities gains - 5
Other gains (losses) (10) -
------- -------
Total noninterest income 1,382 1,308 5.7%
------- -------
Noninterest expenses
- --------------------
Personnel expense 2,680 2,345
Occupancy and equipment expense 597 552
Other operating expenses 1,408 1,378
------- -------
Total noninterest expenses 4,685 4,275 9.6%
------- -------
Income before income taxes 2,758 2,279 21.0%
Income taxes 916 803 14.1%
------- -------
Net income $ 1,842 1,476 24.8%
======== =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADDITIONAL INCOME STATEMENT INFORMATION
- ---------------------------------------
<S> <C> <C> <C>
Noncash expenses - pretax
Goodwill amortization $ 158 159
Premises and equipment depreciation 244 212
------- -------
Total noncash expenses, pretax $ 402 371 8.4%
======== =======
Tax equivalent net interest income
Net interest income, as recorded $ 6,371 5,446
Tax equivalent adjustment 142 152
------- -------
Tax equivalent net interest income $ 6,513 5,598 16.3%
======== =======
</TABLE>
<PAGE>
================================================================================
First Bancorp and Subsidiaries
Financial Summary - page 2
================================================================================
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------- Percent
SHARE DATA 2000 1999 (1) Change
-------- ---------- -------
<S> <C> <C> <C>
Earnings per share - basic $ 0.41 0.33 24.2%
Earnings per share - diluted 0.40 0.32 25.0%
Cash dividends declared 0.13 0.1133 14.7%
Stated book value 9.85 9.08 8.5%
Tangible book value 8.72 7.83 11.4%
Common shares outstanding at end of period 4,520,851 4,517,792
Weighted average shares outstanding - basic 4,537,300 4,523,076
Weighted average shares outstanding - diluted 4,612,265 4,629,944
SELECTED RATIOS
Return on average assets 1.33% 1.22%
Return on average equity 16.50% 14.51%
Net interest margin - tax equivalent 5.03% 4.97%
Efficiency ratio - tax equivalent 59.34% 61.90%
Shareholders' equity to assets 7.54% 8.11%
Tier I risk-based capital 9.32% 9.71%
Total risk based capital 10.44% 10.83%
Tier I leverage capital 7.38% 7.34%
</TABLE>
(1) Share data has been adjusted to reflect the 3-for-2 stock split paid on
September 13, 1999.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREND INFORMATION
($ in thousands except share data)
For the Three Months Ended
---------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
INCOME STATEMENT 2000 1999 1999 1999 (2) 1999 (2) Change
----------- ------------ ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net interest income - tax equivalent $ 6,513 6,347 6,221 5,892 5,598 16.3%
Taxable equivalent adjustment 142 130 143 149 152 -6.6%
Net interest income 6,371 6,217 6,078 5,743 5,446 17.0%
Provision for loan losses 310 245 205 260 200 55.0%
Core noninterest income 1,392 1,247 1,239 1,293 1,303 6.8%
Non-core noninterest income (loss), net (1) (10) 14 3 17 5 -300.0%
Noninterest expense 4,685 4,628 4,606 4,307 4,275 9.6%
Income before income taxes 2,758 2,605 2,509 2,486 2,279 21.0%
Income taxes 916 828 771 858 803 14.1%
Net income 1,842 1,777 1,738 1,628 1,476 24.8%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Earnings per share - basic 0.41 0.39 0.38 0.36 0.33 24.2%
Earnings per share - diluted 0.40 0.38 0.37 0.35 0.32 25.0%
</TABLE>
(1) Includes gains and losses from securities sales, loan sales, fixed assets,
other real estate and other nonrecurring items.
(2) Share data has been adjusted to reflect the 3-for-2 stock split paid on
September 13, 1999.
<PAGE>
================================================================================
First Bancorp and Subsidiaries
Financial Summary - page 3
================================================================================
<TABLE>
<CAPTION>
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
PERIOD END BALANCES 2000 1999 1999 1999 1999 Change
----------- ------------ ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Assets $ 591,155 559,447 535,149 526,287 505,862 16.9%
Securities 74,194 71,808 71,463 73,100 77,380 -4.1%
Loans 442,728 419,163 400,574 387,755 368,511 20.1%
Allowance for loan losses 6,313 6,078 5,988 5,822 5,671 11.3%
Intangible assets 5,104 5,261 5,366 5,525 5,684 -10.2%
Deposits 500,724 480,023 456,085 451,356 439,466 13.9%
Short-term borrowings 40,000 30,000 30,000 28,000 20,000 100.0%
Shareholders' equity 44,547 43,942 42,880 41,728 41,036 8.6%
</TABLE>
<TABLE>
<CAPTION>
For the Three Months Ended
---------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
YIELD INFORMATION 2000 1999 1999 1999 1999 Change (2)
----------- ------------ ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Yield on loans 9.03% 8.93% 8.83% 8.74% 8.81% 22 bp
Yield on securities - tax equivalent 6.57% 6.34% 6.38% 6.30% 6.31% 26 bp
Yield on other earning assets 5.80% 5.38% 5.71% 5.21% 5.07% 73 bp
Yield on all interest earning assets 8.59% 8.32% 8.37% 8.25% 8.26% 33 bp
Rate on interest bearing deposits 4.09% 3.91% 3.76% 3.80% 3.90% 19 bp
Rate on other interest bearing liabilities 5.95% 5.71% 5.44% 5.12% 4.63% 132 bp
Rate on all interest bearing liabilities 4.17% 4.02% 3.80% 3.81% 3.91% 26 bp
Interest rate spread - tax equivalent 4.42% 4.30% 4.57% 4.44% 4.35% 7 bp
Net interest margin - tax equivalent (1) 5.03% 4.88% 5.16% 5.04% 4.97% 6 bp
Average prime rate 8.69% 8.37% 8.10% 7.75% 7.75% 94 bp
</TABLE>
(1) Calculated by dividing annualized tax equivalent net interest income by
average earning assets for the period.
(2) Expressed in terms of change in basis points from previous year.
<PAGE>
<TABLE>
<CAPTION>
March 31, Dec. 31, Sept. 30, June 30, March 31, One Year
2000 1999 1999 1999 1999 Change
----------- ------------ ----------- ------------ ----------- -----------
ASSET QUALITY DATA
<S> <C> <C> <C> <C> <C> <C>
Nonaccrual loans $ 429 595 535 621 596 -28.0%
Restructured loans 252 257 260 254 258 -2.3%
-------- ----- ----- ----- ----- ------
Total nonperforming loans 681 852 795 875 854 -20.3%
Other real estate 888 906 855 546 525 69.1%
-------- ----- ----- ----- ----- ------
Total nonperforming assets $ 1,569 1,758 1,650 1,421 1,379 13.8%
======== ===== ===== ===== ===== ======
Net charge-offs to average loans - annualized 0.07% 0.15% 0.04% 0.11% 0.04% 3 bp*
Nonperforming loans to total loans 0.15% 0.20% 0.20% 0.23% 0.23% -8 bp*
Nonperforming assets to total assets 0.27% 0.31% 0.31% 0.27% 0.27% 0 bp*
Allowance for loan losses to total loans 1.43% 1.45% 1.49% 1.50% 1.54% -11 bp*
</TABLE>
* Expressed in terms of change in basis points from previous year.
