What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 261 added, 170 removed, 805 unchanged (35% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

($ in thousands - unaudited) March 31,

($ in thousands - unaudited) June 30,

2026 December 31,

44 unchanged sentences

Consolidated Statements of Income

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands, except per share data - unaudited) 2026 2025 2026 2025

42 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands - unaudited) 2026 2025 2026 2025

15 unchanged sentences

Shares Amount

Three Months Ended March 31, 2025

Balances, January 1, 2025 41,347 $ 971,313 $ 756,327 $ ( 1,148 ) $ 1,148 $ ( 282,029 ) $ 1,445,611

Three Months Ended June 30, 2025

Balances, April 1, 2025 41,369 $ 971,174 $ 783,630 $ ( 1,166 ) $ 1,166 $ ( 246,628 ) $ 1,508,176

Net income 38,566 38,566

3 unchanged sentences

Stock options exercised 60 1,112 1,112

Stock withheld for payment of taxes ( 14 ) ( 546 ) ( 546 )

Stock-based compensation 53 1,301 1,301

Other comprehensive income 17,110 17,110

Balances, June 30, 2025 41,468 $ 973,041 $ 812,657 $ ( 869 ) $ 869 $ ( 229,518 ) $ 1,556,180

Three Months Ended June 30, 2026

Balances, April 1, 2026 41,375 $ 968,675 $ 866,387 $ ( 893 ) $ 893 $ ( 152,112 ) $ 1,682,950

Net income 50,519 50,519

Cash dividends declared ($ 0.24 per common share)

( 9,930 ) ( 9,930 )

Change in Rabbi Trust Obligation 359 ( 359 ) —

Stock options exercised 5 100 100

Stock repurchases ( 36 ) ( 2,123 ) ( 2,123 )

2 unchanged sentences

Other comprehensive income ( 5,181 ) ( 5,181 )

Balances, March 31, 2025 41,369 $ 971,174 $ 783,630 $ ( 1,166 ) $ 1,166 $ ( 246,628 ) $ 1,508,176

Three Months Ended March 31, 2026

Balances, June 30, 2026 41,374 $ 966,777 $ 906,976 $ ( 534 ) $ 534 $ ( 157,293 ) $ 1,716,460

See accompanying notes to unaudited consolidated financial statements.

First Bancorp

Consolidated Statements of Shareholders’ Equity

($ in thousands, except per share data - unaudited) Common Stock Retained

earnings Stock in rabbi trust assumed in acquisition Rabbi trust obligation Accumulated other comprehensive income (loss) Total shareholders’ equity

Shares Amount

Six Months Ended June 30, 2025

Balances, January 1, 2025 41,347 $ 971,313 $ 756,327 $ ( 1,148 ) $ 1,148 $ ( 282,029 ) $ 1,445,611

3 unchanged sentences

Change in Rabbi Trust Obligation 279 ( 279 ) —

Stock repurchases ( 25 ) ( 992 ) ( 992 )

Stock options exercised 73 1,238 1,238

Stock withheld for payment of taxes ( 22 ) ( 839 ) ( 839 )

Stock-based compensation 95 2,321 2,321

Other comprehensive income 52,511 52,511

Balances, June 30, 2025 41,468 $ 973,041 $ 812,657 $ ( 869 ) $ 869 $ ( 229,518 ) $ 1,556,180

Six Months Ended June 30, 2026

Balances, January 1, 2026 41,466 $ 973,884 $ 829,659 $ ( 885 ) $ 885 $ ( 149,375 ) $ 1,654,168

Net income 97,178 97,178

Cash dividends declared ($ 0.48 per common share)

( 19,861 ) ( 19,861 )

Change in Rabbi Trust Obligation 351 ( 351 ) —

Stock repurchases ( 129 ) ( 7,270 ) ( 7,270 )

Stock options exercised 7 136 136

Stock withheld for payment of taxes ( 33 ) ( 1,993 ) ( 1,993 )

1 unchanged sentence

Other comprehensive income ( 7,918 ) ( 7,918 )

Balances, March 31, 2026 41,375 $ 968,675 $ 866,387 $ ( 893 ) $ 893 $ ( 152,112 ) $ 1,682,950

Balances, June 30, 2026 41,374 $ 966,777 $ 906,976 $ ( 534 ) $ 534 $ ( 157,293 ) $ 1,716,460

See accompanying notes to unaudited consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands-unaudited) 2026 2025

3 unchanged sentences

Provision for credit losses 4,252 3,328

Net security premium amortization 587 1,432

Net premium amortization and discount accretion 420 ( 13 )

Deferred income taxes, net 11,995 1,654

Loan discount accretion ( 1,293 ) ( 2,193 )

Deposit and debt discount accretion, net 148 294

Foreclosed property losses (gains), net ( 52 ) ( 18 )

Other (gains) losses, net ( 825 ) ( 109 )

Bank-owned life insurance income ( 2,698 ) ( 2,449 )

Net amortization of deferred loan costs/(fees) 1,097 49

Depreciation of premises and equipment 3,282 3,457

Amortization of operating lease right-of-use assets 345 314

Repayments of lease obligations ( 329 ) ( 297 )

Stock-based compensation expense 2,020 2,321

Amortization of intangible assets 2,446 2,984

Amortization and impairment of SBA servicing assets 194 362

Gains on sale of loans ( 2,761 ) ( 968 )

1 unchanged sentence

Proceeds from sales of presold mortgage loans and SBA loans 85,977 42,357

Decrease (increase) in accrued interest receivable 1,910 877

Decrease (increase) in other assets 4,202 8,702

(Decrease) increase in accrued interest payable ( 14 ) 331

(Decrease) increase in other liabilities ( 3,708 ) ( 3,829 )

Change in other assets, other liabilities and accrued interest, net ( 3,024 ) 11,864

Other ( 2,035 ) ( 97 )

Net cash provided by (used in) operating activities 127,676 98,307

4 unchanged sentences

Purchases of Federal Reserve and FHLB stock ( 375 ) ( 359 )

Proceeds from bank owned life insurance death benefits — 91

Redemptions of Federal Reserve and FHLB stock 10 —

Purchases of other investments ( 7,500 ) ( 10,902 )

Net (increase) decrease in loans ( 286,669 ) ( 135,599 )

Proceeds from sales of foreclosed properties 524 709

Purchases of premises and equipment ( 2,890 ) ( 1,611 )

Proceeds from sales of premises and equipment 62 342

Other 1,480 5,144

Net cash (used in) provided by investing activities ( 194,642 ) ( 175,353 )

1 unchanged sentence

Net increase (decrease) in deposits 336,323 299,650

Proceeds from the issuance of FHLB and FRB borrowings 1,000 2,000

Repayment of FHLB and FRB borrowings ( 1,025 ) ( 2,024 )

7 unchanged sentences

Cash and cash equivalents, end of period $ 550,332 $ 711,286

First Bancorp

Consolidated Statements of Cash Flows

Three Months Ended March 31,

($ in thousands-unaudited) 2026 2025

Supplemental Disclosures of Cash Flow Information:

14 unchanged sentences

All significant intercompany accounts and transactions have been eliminated.

The Bank formerly operated a third subsidiary, SBA Complete, Inc.

("SBA Complete"), which specialized in providing consulting services for financial institutions across the country related to Small Business Administration (“SBA”) loan origination and servicing.

During the second quarter of 2024, SBA Complete became inactive with certain activities transitioning to the Bank.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP.

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of March 31, 2026, the consolidated results of income, comprehensive income and shareholders' equity for the three months ended March 31, 2026 and 2025, and the consolidated cash flows for the three months ended March 31, 2026 and 2025.

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2026, the consolidated results of income, comprehensive income and shareholders' equity for the three and six months ended June 30, 2026 and 2025, and the consolidated cash flows for the six months ended June 30, 2026 and 2025.

Any such adjustments were of a normal, recurring nature.

These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the 2025 Annual Report for the year ended December 31, 2025.

Operating results for interim period are not necessarily indicative of the results that may be expected for the full year.

Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year.

In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to the current presentation.

3 unchanged sentences

Accounting Standards Adopted in 2026

The Company did not adopt any accounting standards during the first three months of 2026.

The Company did not adopt any accounting standards during the first six months of 2026.

Accounting Standards Pending Adoption

7 unchanged sentences

ASU 2025-07, "Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) " amended the Derivatives and Hedging and Revenue from Contracts with Customers topics in the Accounting Standards Codification to refine derivative scope and clarify the accounting treatment of share-based noncash consideration from customers in revenue contracts.

The amendments are effective for annual reporting periods

beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is

Entities may apply the guidance prospectively or on a modified retrospective basis.

5 unchanged sentences

The Company does not expect these amendments to have a material effect on its financial statements.

The accounting for future business combinations, if any, would be impacted.

See Note 13 concerning the proposed acquisition of First Carolina Bancshares Corporation ("First Carolina").

The amendments would be adopted as of the beginning of the quarter in which the closing of the First Carolina acquisition occurs.

ASU 2025-09, "Derivatives and Hedging (Topic 815):

11 unchanged sentences

Other accounting standards that have been issued or proposed by the Financial Accounting Standards Board ("FASB") or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial statements.

The book values and approximate fair values of investment securities at March 31, 2026 and December 31, 2025 are summarized as follows:

($ in thousands) March 31, 2026 December 31, 2025

The book values and approximate fair values of investment securities at June 30, 2026 and December 31, 2025 are summarized as follows:

($ in thousands) June 30, 2026 December 31, 2025

Value Unrealized Amortized

11 unchanged sentences

Total held to maturity $ 509,712 $ 443,298 $ 9 $ ( 66,423 ) $ 513,099 $ 448,452 $ 19 $ ( 64,666 )

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSEs"), except for private mortgage-backed securities with a fair value of $ 0.7 million as of March 31, 2026 and December 31, 2025.

Accrued interest receivable on available for sale ("AFS") debt securities was $ 5.3 million and $ 5.2 million at March 31, 2026 and December 31, 2025, respectively.

Accrued interest receivable on held to maturity ("HTM") debt securities was $ 3.0 million and $ 4.2 million as of March 31, 2026 and December 31, 2025, respectively.

The following table presents information regarding all securities with unrealized losses at March 31, 2026:

Accrued interest receivable on available for sale ("AFS") debt securities was $ 5.0 million and $ 5.2 million at June 30, 2026 and December 31, 2025, respectively.

Accrued interest receivable on held to maturity ("HTM") debt securities was $ 4.2 million as of June 30, 2026 and December 31, 2025.

The following table presents information regarding all securities with unrealized losses at June 30, 2026:

Securities in an Unrealized

27 unchanged sentences

Total unrealized loss position $ 181,075 $ 769 $ 1,512,307 $ 265,224 $ 1,693,382 $ 265,993

As of March 31, 2026, the Company's securities portfolio included 573 securities of which 506 securities were in an unrealized loss position.

As of June 30, 2026, the Company's securities portfolio included 577 securities of which 517 securities were in an unrealized loss position.

As of December 31, 2025, the Company's securities portfolio included 573 securities of which 491 securities were in an unrealized loss position.

In the above tables, all of the securities that were in an unrealized loss position at March 31, 2026 and December 31, 2025 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns.

In the above tables, all of the securities that were in an unrealized loss position at June 30, 2026 and December 31, 2025 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns.

In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the severity of the impairment.

1 unchanged sentence

The Company has no significant concentrations of bond holdings from any one state or local government entity.

Substantially all of the Company's mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or SBA, each of which is a government agency or GSE and guarantees the repayment of its securities.

Substantially all of the Company's mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or Small Business Administration ("SBA"), each of which is a government agency or GSE and guarantees the repayment of its securities.

The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

At March 31, 2026 and December 31, 2025, the Company determined that expected credit losses associated with HTM securities were insignificant.

The book values and fair values of investment securities at March 31, 2026, by contractual maturity, are summarized in the table below.

At June 30, 2026 and December 31, 2025, the Company determined that expected credit losses associated with HTM securities were insignificant.

The book values and fair values of investment securities at June 30, 2026, by contractual maturity, are summarized in the table below.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

2 unchanged sentences

Value Amortized

Due within one year $ — $ — $ 992 $ 969

Due after one year but within five years $ 159,670 $ 159,609 $ 13,136 $ 12,236

3 unchanged sentences

Total securities $ 2,143,544 $ 1,939,075 $ 509,712 $ 443,298

At March 31, 2026 and December 31, 2025, investment securities with carrying values of $ 888.7 million and $ 876.8 million, respectively, were pledged as collateral for public deposits.

In addition, at March 31, 2026 and December 31, 2025, investment securities with carrying values of $ 619.8 million and $ 622.1 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

At March 31, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S.

At June 30, 2026 and December 31, 2025, investment securities with carrying values of $ 885.4 million and $ 876.8 million, respectively, were pledged as collateral for public deposits.

In addition, at June 30, 2026 and December 31, 2025, investment securities with carrying values of $ 616.3 million and $ 622.1 million, respectively, were pledged as collateral to the Federal Reserve Bank ("Federal Reserve") to secure any such borrowings.

At June 30, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S.

Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity.

There were no sales of investment securities during the three months ended March 31, 2026 or March 31, 2025.

Included in “Other assets” in the consolidated balance sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $ 42.0 million and $ 41.6 million at March 31, 2026 and December 31, 2025, respectively.

There were no sales of investment securities during the three and six months ended June 30, 2026 or June 30, 2025.

These investments do not have readily determinable fair values.

The FHLB stock had a cost of $ 8.9 million and $ 8.5 million at March 31, 2026 and December 31, 2025, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system.

The Federal Reserve stock had a cost of $ 33.1 million at March 31, 2026 and December 31, 2025, respectively, and is a requirement for Federal Reserve member bank qualification.

The FHLB stock had a cost of $ 8.9 million and $ 8.5 million at June 30, 2026 and December 31, 2025, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system.

The Federal Reserve stock had a cost of $ 33.1 million at both June 30, 2026 and December 31, 2025, and is a requirement for Federal Reserve member bank qualification.

Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost.

2 unchanged sentences

The following is a summary of the major categories of total loans outstanding:

($ in thousands) March 31, 2026 December 31, 2025

($ in thousands) June 30, 2026 December 31, 2025

Amount Percentage Amount Percentage

8 unchanged sentences

Subtotal 8,989,553 100 % 8,721,682 100 %

Unamortized net deferred loan costs/(fees) ( 360 ) 737

Unamortized net deferred loan (fees)/costs ( 805 ) 737

Total loans $ 8,988,748 $ 8,722,419

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.

($ in thousands) March 31, 2026 December 31, 2025

($ in thousands) June 30, 2026 December 31, 2025

Guaranteed portions of SBA loans included in table above $ 49,431 $ 61,501

2 unchanged sentences

Sold portions of SBA loans with servicing retained - not included in tables above $ 280,913 $ 284,649

At March 31, 2026 and December 31, 2025, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $ 2.1 million and $ 2.0 million, respectively.

At March 31, 2026 and December 31, 2025, loans in the amount of $ 7.3 billion and $ 7.1 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity.

Refer to Note 5 for further discussion.

At March 31, 2026 and December 31, 2025, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 60.2 million and $ 60.7 million, respectively.

Available credit on related party loans totaled zero and $ 0.3 million at March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, unamortized discounts on all acquired loans totaled $ 7.7 million and $ 8.8 million, respectively.

At June 30, 2026 and December 31, 2025, there were remaining unaccreted discounts of $ 2.1 million and $ 2.0 million, respectively, on the retained portion of SBA loans for which the guaranteed portion had been sold.

At June 30, 2026 and December 31, 2025, loans in the amount of $ 7.4 billion and $ 7.1 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity.

At June 30, 2026 and December 31, 2025, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $ 59.8 million and $ 60.7 million, respectively.

Available credit on related party loans totaled zero and $ 0.3 million at June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, unamortized discounts on all acquired loans totaled $ 6.6 million and $ 8.8 million, respectively.

Nonperforming assets ("NPAs") are defined as nonaccrual loans, loans past due 90 or more days and still accruing interest, and foreclosed properties.

The following table summarizes the NPAs for each date presented.

($ in thousands) March 31,

($ in thousands) June 30,

2026 December 31,

Nonaccrual loans $ 44,283 $ 36,315

Accruing loans > 90 days past due — —

Accruing loans 90 days or more past due — —

Total nonperforming loans 44,283 36,315

1 unchanged sentence

Total nonperforming assets $ 44,942 $ 37,740

At March 31, 2026 and December 31, 2025, the Company had $ 0.9 million and $ 1.0 million, respectively, in residential mortgage loans in the process of foreclosure.

At March 31, 2026 and December 31, 2025, there were commitments to lend an immaterial amount of additional funds to borrowers whose loans were nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2026:

At June 30, 2026 and December 31, 2025, the Company had $ 1.9 million and $ 1.0 million, respectively, in residential mortgage loans in the process of foreclosure.

At June 30, 2026 and December 31, 2025, there were commitments to lend an immaterial amount of additional funds to borrowers whose loans were nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2026:

($ in thousands) Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans

19 unchanged sentences

In the period that the Company places a loan on nonaccrual status, contractual interest income is reversed in the consolidated income statement.

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2026:

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2026:

($ in thousands) Accruing

30 unchanged sentences

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.

The following table presents an analysis of collateral dependent loans of the Company as of March 31, 2026:

The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2026:

($ in thousands) Commercial Property Total Collateral-Dependent Loans

12 unchanged sentences

($ in thousands) Beginning balance Charge-offs Recoveries Provisions / (Reversals) Ending balance

As of and for the three months ended March 31, 2026

As of and for the three months ended June 30, 2026

Commercial and industrial $ 19,373 $ ( 1,089 ) $ 480 $ 436 $ 19,200

7 unchanged sentences

Total $ 124,734 $ ( 1,683 ) $ 696 $ 1,147 $ 124,894

As of and for the six months ended June 30, 2026

Commercial and industrial $ 20,044 $ ( 2,502 ) $ 811 $ 847 $ 19,200

Construction, development & other land loans 11,465 — 61 3,625 15,151

Commercial real estate - owner occupied 20,298 ( 247 ) 245 ( 1,982 ) 18,314

Commercial real estate - non owner occupied 25,017 — 16 697 25,730

Multi-family real estate 5,205 — — 1,227 6,432

Residential 1-4 family real estate 34,068 ( 257 ) 80 ( 1,912 ) 31,979

Home equity loans/lines of credit 3,519 — 11 ( 186 ) 3,344

Consumer loans 3,965 ( 687 ) 84 1,382 4,744

Total $ 123,581 $ ( 3,693 ) $ 1,308 $ 3,698 $ 124,894

($ in thousands) Beginning balance Charge-offs Recoveries Provisions / (Reversals) Ending balance

As of and for the three months ended March 31, 2025

As of and for the three months ended June 30, 2025

Commercial and industrial $ 19,275 $ ( 1,416 ) $ 467 $ 180 $ 18,506

7 unchanged sentences

Total $ 120,631 $ ( 1,754 ) $ 598 $ 1,070 $ 120,545

As of and for the six months ended June 30, 2025

Commercial and industrial $ 19,474 $ ( 3,632 ) $ 964 $ 1,700 $ 18,506

Construction, development & other land loans 9,314 — 105 ( 759 ) 8,660

Commercial real estate - owner occupied 19,380 ( 450 ) 111 1,705 20,746

Commercial real estate - non owner occupied 27,768 ( 938 ) 20 ( 2,425 ) 24,425

Multi-family real estate 5,476 — — ( 731 ) 4,745

Residential 1-4 family real estate 33,552 ( 124 ) 53 2,302 35,783

Home equity loans/lines of credit 4,111 ( 68 ) 21 ( 619 ) 3,445

Consumer loans 3,497 ( 662 ) 105 1,295 4,235

Total $ 122,572 $ ( 5,874 ) $ 1,379 $ 2,468 $ 120,545

Credit Quality Indicators

5 unchanged sentences

($ in thousands) 2026 2025 2024 2023 2022 Prior Revolving Total

As of March 31, 2026

As of June 30, 2026

Commercial and industrial

112 unchanged sentences

For loans included in the “Combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

The following table presents the amortized cost basis at March 31, 2026 of the loans modified during the three month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

The following table presents the amortized cost basis at June 30, 2026 of the loans modified during the three and six month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

($ in thousands) Payment Delay Term Extension Total Percent of Total Class of Loans

As of and for the three months ended March 31, 2026

As of and for the three months ended June 30, 2026

Commercial and industrial $ — $ 221 $ 221 0.02 %

Construction, development & other land loans — 8 8 — %

Commercial real estate - owner occupied $ 1,421 $ 42 $ 1,463 0.11 %

Residential 1-4 family real estate — 88 88 0.01 %

Home equity loans/lines of credit — 119 119 0.03 %

Total $ 1,421 $ 478 $ 1,899 0.02 %

As of and for the six months ended June 30, 2026

Commercial and industrial $ — $ 221 $ 221 0.02 %

Construction, development & other land loans — 8 8 — %

Commercial real estate - owner occupied 1,421 42 1,463 0.11 %

Commercial real estate - non owner occupied — 44 44 — %

3 unchanged sentences

Total $ 1,421 $ 912 $ 2,333 0.03 %

The following table presents the amortized cost basis at March 31, 2025 of the loans modified during the three month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

The following table presents the amortized cost basis at June 30, 2025 of the loans modified during the three and six month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

($ in thousands) Payment Delay Term Extension Combination - Term Extension and Payment Delay Total Percent of Total Class of Loans

As of and for the three months ended March 31, 2025

As of and for the three months ended June 30, 2025

Commercial and industrial $ 138 $ — $ — $ 138 0.02 %

Construction, development & other land loans $ — $ 309 $ — $ 309 0.05 %

Commercial real estate - owner occupied 334 68 — 402 0.03 %

3 unchanged sentences

Total $ 472 $ 697 $ 205 $ 1,374 0.02 %

For the three months ended March 31, 2026 and March 31, 2025, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following table describes the financial effect for the three months ended March 31, 2026 of the modifications made for borrowers experiencing financial difficulty:

As of and for the six months ended June 30, 2025

Commercial and industrial $ 192 $ — $ — $ 192 0.02 %

Construction, development & other land loans — 309 — 309 0.05 %

Commercial real estate - owner occupied 334 111 — 445 0.04 %

Commercial real estate - non owner occupied 1,589 — 4,478 6,067 0.22 %

Residential 1-4 family real estate — 110 120 230 0.01 %

Home equity loans/lines of credit — 380 — 380 0.11 %

Total $ 2,115 $ 910 $ 4,598 $ 7,623 0.09 %

For the three and six months ended June 30, 2026 and June 30, 2025, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following table describes the financial effect for the three and six months ended June 30, 2026 of the modifications made for borrowers experiencing financial difficulty:

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

1 unchanged sentence

(in months) Weighted Average Term Extension

For the three months ended March 31, 2026

For the three months ended June 30, 2026

Commercial and industrial 0 8

Construction, development & other land loans 0 59

Commercial real estate - owner occupied 6 12

Residential 1-4 family real estate 0 123

Home equity loans/lines of credit 0 47

For the six months ended June 30, 2026

Commercial and industrial 0 8

Construction, development & other land loans 0 59

Commercial real estate - owner occupied 6 12

Commercial real estate - non owner occupied 0 12

2 unchanged sentences

Consumer loans 0 39

The following table describes the financial effect for the three months ended March 31, 2025 of the modifications made for borrowers experiencing financial difficulty:

The following table describes the financial effect for the three and six months ended June 30, 2025 of the modifications made for borrowers experiencing financial difficulty:

Financial Effect of Modification to Borrowers Experiencing Financial Difficulty

1 unchanged sentence

(in months) Weighted Average Term Extension

For the three months ended March 31, 2025

For the three months ended June 30, 2025

Construction, development & other land loans 0 3

Commercial real estate - owner occupied 7 148

Commercial real estate - non owner occupied 4 2

Residential 1-4 family real estate 4 29

Home equity loans/lines of credit 0 40

For the six months ended June 30, 2025

Commercial and industrial 1 0

Construction, development & other land loans 0 3

Commercial real estate - owner occupied 7 97

3 unchanged sentences

The Company closely monitors the performance of the modified loans that are to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table depicts the performance of loans that were modified in the last twelve months as of March 31, 2026:

The following table depicts the performance of loans that were modified in the last twelve months as of June 30, 2026:

Payment Status (Amortized Cost Basis)

17 unchanged sentences

$ 6,228 $ 502 $ — $ 563

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2026 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty by loan category and type of concession granted.

($ in thousands) Payment Delay Term Extension Combination - Interest Rate Reduction and Term Extension Total

Commercial and industrial $ — $ 405 $ 27 $ 432

Commercial real estate - owner occupied 324 63 — 387

Home equity loans/lines of credit — 124 — 124

Total $ 324 $ 592 $ 27 $ 943

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty by loan category and type of concession granted.

($ in thousands) Term Extension Total

Residential 1-4 family real estate $ 51 $ 51

Total $ 51 $ 51

At March 31, 2026 and December 31, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made.

During the three and six months ended June 30, 2026 and June 30, 2025, an immaterial amount of loans to borrowers experiencing financial difficulty that were modified in the twelve months prior were considered to have had a payment default.

At June 30, 2026 and December 31, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off.

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Impact of Hurricane Helene

In the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene in third

quarter of 2024, the Company identified borrowers who were potentially impacted.

During 2026, the Company

evaluated the commercial loan portfolio and adjusted risk ratings and nonaccrual status as applicable.

for those relationships, the normal reserving process for March 31, 2026 was applied.

For the potentially

impacted consumer loans, the Company applied increased reserve rates based upon severe economic factors to

the approximately $ 258 million of loans (primarily Residential 1-4 family real estate) in the most impacted path of

Hurricane Helene.

Due to the potential exposure from Hurricane Helene, the ACL on these impacted consumer

loans was $ 1.9 million as of March 31, 2026, adding 2 basis points to the overall ACL as a percent of total

loans, which was 1.42 % as of March 31, 2026.

As of December 31, 2025, the ACL on the population of

potentially impacted commercial and consumer loans was $ 1.9 million, adding 2 basis points to the overall ACL

as a percent of total loans, which was 1.42 %.

In the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene in third quarter of 2024, the Company identified borrowers who were potentially impacted.

During 2026, the Company evaluated the commercial loan portfolio and adjusted risk ratings and nonaccrual status as applicable.

Therefore, for those relationships, the normal reserving process for June 30, 2026 was applied.

For potentially impacted consumer loans, the Company applied increased reserve rates based upon severe economic factors to the approximately $ 253 million of loans (primarily Residential 1-4 family real estate) in the most impacted path of Hurricane Helene.

Due to the potential exposure from Hurricane Helene, the ACL on these impacted consumer loans was $ 1.9 million as of June 30, 2026, adding 2 basis points to the overall ACL as a percent of total loans, which was 1.39 % as of June 30, 2026.

As of December 31, 2025, the ACL on the population of potentially impacted commercial and consumer loans was $ 1.9 million, adding 2 basis points to the overall ACL as a percent of total loans, which was 1.42 %.

Allowance for Unfunded Loan Commitments

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The allowance for unfunded loan commitments was included in "Other liabilities" on the consolidated balance sheets.

The following table presents the balance and activity in the allowance for unfunded loan commitments for the three months ended March 31, 2026 and 2025:

Three months ended March 31,

The following table presents the balance and activity in the allowance for unfunded loan commitments for the three and six months ended June 30, 2026 and 2025:

Three months ended June 30, Six months ended June 30,

($ in thousands) 2026 2025 2026 2025

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The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets and the carrying amount of unamortized intangible assets as of the periods presented.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands) Gross Carrying

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Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate.

Amortization expense of all amortizable intangible assets totaled $ 1.2 million and $ 1.5 million for the three months ended March 31, 2026 and 2025, respectively.

Amortization expense of all amortizable intangible assets totaled $ 1.2 million and $ 1.5 million for the three months ended June 30, 2026 and 2025, respectively, and $ 2.4 million and $ 3.0 million for the six months ended June 30, 2026 and 2025, respectively.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year.

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No triggering events were identified during 2026 to date and, therefore, the Company did not perform interim impairment evaluations.

The Company's most recent evaluation of goodwill, which

occurred in the fourth quarter of 2025, indicated that there was no goodwill impairment.

There was no change to carrying amounts of goodwill during the three months ended March 31, 2026.

Other than the expected amortization expense recognized during the three months ended March 31, 2026, there have been no material changes to the estimated amortization expense related to amortizable intangible assets as discussed in Note 6 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The Company recorded SBA guaranteed servicing fee income of $ 0.7 million during the three months ended March 31, 2026 and 2025.

There was no impairment of SBA servicing assets at March 31, 2026 and December 31, 2025 and no significant methodology changes have been made since year end.

The Company's most recent evaluation of goodwill, which occurred in the fourth quarter of 2025, indicated that there was no goodwill impairment.

There was no change to carrying amounts of goodwill during the three months ended June 30, 2026.

Other than the expected amortization expense recognized during the six months ended June 30, 2026, there have been no material changes to the estimated amortization expense related to amortizable intangible assets as discussed in Note 6 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The Company recorded SBA guaranteed servicing fee income of $ 0.6 million and $ 0.7 million during the three months ended June 30, 2026 and 2025, respectively, and $ 1.3 million and $ 1.4 million for the six months ended June 30, 2026 and 2025, respectively.

There was no impairment of SBA servicing assets at June 30, 2026 and December 31, 2025 and no significant methodology changes have been made since year end.

The following table presents the changes in the SBA servicing assets (included in "Other assets" in the Company's consolidated balance sheet) for each period indicated:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in thousands) 2026 2025 2026 2025

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Ending balance, net $ 1,749 $ 2,029 $ 1,749 $ 2,029

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2026:

The following tables present information regarding the Company’s outstanding borrowings at June 30, 2026:

($ in thousands)

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Trust Preferred Securities 6/23/2036 Quarterly by Company 8,248 5.81 % at 6/30/26 adjustable rate 3 month CME Term SOFR + 2.11 %

Total borrowings / weighted average rate as of March 31, 2026

Total borrowings / weighted average rate as of June 30, 2026

78,052 5.88 %

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The Company enters into leases in the normal course of business.

As of March 31, 2026, the Company leased 15 bank branch offices for which the land and buildings are leased and ten branch offices for which the land is leased but the buildings are owned.

As of June 30, 2026, the Company leased 15 bank branch offices for which the land and buildings are leased and ten branch offices for which the land is leased but the buildings are owned.

The Company also leases office space for several operational departments.

All of the Company’s leases are operating leases and the lease agreements have maturity dates ranging from April 2026 through May 2076, some of which include options for multiple five-year and ten-year extensions.

The Company includes lease extension options in the lease term if, after considering relevant economic, market, and strategic factors, it is reasonably certain the Company will exercise the option.

The weighted average remaining life of the lease term for these leases was 20.3 years as of March 31, 2026 and 20.8 years as of December 31, 2025.

All of the Company’s leases are operating leases and the lease agreements have maturity dates ranging from September 2026 through May 2076, some of which include options for multiple five-year and ten-year extensions.

Company includes lease extension options in the lease term if, after considering relevant economic, market, and strategic factors, it is reasonably certain the Company will exercise the option.

The weighted average remaining life of the lease term for these leases was 20.4 years as of June 30, 2026 and 20.8 years as of December 31, 2025.

Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense.

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The short-term lease cost for each period presented was insignificant.

Leases are classified as either operating or finance leases at the lease commencement date and all of the Company's leases have been determined to be operating leases.

Leases are classified as either operating or finance leases at the lease commencement date.

All of the Company's leases have been determined to be operating leases.

Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the applicable lease term.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term;

and lease liabilities represent the Company's obligation to make lease payments arising from the lease.

Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known.

The weighted average discount rates for leases were 3.44 % and 3.41 % as of March 31, 2026 and December 31, 2025, respectively.

The right-of-use assets, included in "Other assets" on the Company's consolidated balance sheets, and lease liabilities, included in "Other liabilities" on the Company's consolidated balance sheets, were $ 13.7 million and $ 14.6 million as of March 31, 2026, respectively, and were $ 13.4 million and $ 14.2 million as of December 31, 2025, respectively.

Total operating lease expenses, included in "Other operating expenses" in the Company's consolidated statements of income, were $ 0.6 million for the three months ended March 31, 2026 and 2025.

Future undiscounted lease payments for operating leases with initial terms of greater than one year as of March 31, 2026 are as follows:

The weighted average discount rates for leases were 3.45 % and 3.41 % as of June 30, 2026 and December 31, 2025, respectively.

The right-of-use assets, included in "Other assets" on the Company's consolidated balance sheets, and lease liabilities, included in "Other liabilities" on the Company's consolidated balance sheets, were $ 13.2 million and $ 14.3 million as of June 30, 2026, respectively, and were $ 13.4 million and $ 14.2 million as of December 31, 2025, respectively.

Total operating lease expenses, included in "Other operating expenses" in the Company's consolidated statements of income, were $ 0.6 million for the three months ended June 30, 2026 and 2025, and $ 1.3 million for the six months ended June 30, 2026 and 2025.

Future undiscounted lease payments for operating leases with initial terms greater than one year as of June 30, 2026 are as follows:

($ in thousands)

April 1, 2026 to December 31, 2026 $ 1,253

July 1, 2026 to December 31, 2026 $ 802

Thereafter 15,051

9 unchanged sentences

Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at March 31, 2026:

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2026:

($ in thousands)

Description of Financial Instruments

Fair Value at March 31, 2026 Quoted Prices in Active Markets for Identical Assets

Fair Value at June 30, 2026 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other

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Most of the fair values for the Company’s Level 2 securities are determined by the Company's third-party bond accounting provider using matrix pricing.

Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on

quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

For the Company, Level 2 securities include U.S Treasury bonds, mortgage-backed securities, commercial mortgage-backed obligations, government-sponsored enterprise securities, and corporate bonds.

9 unchanged sentences

The value of real estate collateral is generally determined by third-party appraisers using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3).

The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial

statements if not considered significant.

The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant.

Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3).

6 unchanged sentences

For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the consolidated statements of income.

There were no significant changes in the reported amount of Level 3 assets and liabilities measured at fair value on either a recurring or a non-recurring basis as of March 31, 2026.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 December 31, 2025

There were no significant changes in the reported amount of Level 3 assets and liabilities measured at fair value on either a recurring or a non-recurring basis as of June 30, 2026.

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2026 and December 31, 2025 were as follows:

June 30, 2026 December 31, 2025

($ in thousands) Level in Fair

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Stock-Based Compensation

The Company recorded total stock-based compensation expense of $ 0.7 million and $ 1.0 million for the three months ended March 31, 2026 and 2025, respectively.

The Company recorded total stock-based compensation expense of $ 0.7 million and $ 1.1 million for the three months ended June 30, 2026 and 2025, respectively, and $ 1.5 million and $ 2.1 million for the six months ended June 30, 2026 and 2025, respectively.

These amounts are included in "Total personnel expense" on the accompanying consolidated statements of income.

The Company recog nized income tax benefits related to stock-based compensation expense in its income statement of $ 167,000 an d $ 238,000 for the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026, the sole equity-based compensation plan of the Company was the First Bancorp 2024 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 31, 2024.

As of March 31, 2026, the Equity Plan had 1,808,912 shares remaining available for grant.

The Company recorded director stock expense of $0.3 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, and $0.6 million and $0.3 million for the six months ended June 30, 2026 and 2025, respectively.

These amounts are included in "Other operating expenses" on the accompanying consolidated statements of income.

The Company recog nized income tax benefits related to stock-based compensation expense in its income statement of $ 172,000 an d $ 246,000 for the three months ended June 30, 2026 and 2025, respectively, and $ 339,000 and $ 484,000 for the six months ended June 30, 2026 and 2025, respectively.

At June 30, 2026, the sole equity-based compensation plan of the Company was the First Bancorp 2024 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 31, 2024.

As of June 30, 2026, the Equity Plan had 1,761,611 shares remaining available for future awards.

The Equity Plan is intended to serve as a means to attract, retain, and motivate key employees and directors and to associate the interests of the Equity Plan's participants with those of the Company and its shareholders.

The Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted and unrestricted stock, restricted performance stock, and performance units.

For the last several years, the only equity-based compensation granted by the Company has been shares of restricted stock, as it relates to employees, and unrestricted stock as it relates to non-employee directors.

The Equity Plan allows for grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted and unrestricted stock, restricted performance stock, and performance units.

For the last several

years, the only equity-based compensation granted by the Company has been shares of restricted stock, as it relates to employees, and unrestricted stock as it relates to non-employee directors.

There have been no material changes to the treatment of stock awards and equity grants as discussed in Note 15 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

In addition to employee equity awards, the Company's practice is to grant unrestricted common shares to each non-employee director (currently eleven in total) in June of each year.

The grants were valued at approximately $ 37,500 in 2025.

In addition to employee equity awards, the Company's practice is to grant unrestricted common shares to each non-employee director (currently 13 in total) in June of each year.

The individual grants were valued at approximately $ 50,000 in 2026.

Compensation expense associated with these director awards is fully recognized by the date of the award since there are no vesting conditions.

The following table presents information regarding the activity for the first three months of 2026 related to the Company’s outstanding restricted stock awards:

The following table presents information regarding the activity for the first six months of 2026 related to the Company’s outstanding restricted stock awards:

Long-Term Restricted Stock Awards

5 unchanged sentences

Forfeited or expired during the period ( 1,869 ) 40.14

Nonvested at March 31, 2026 178,570 $ 40.33

Total unrecognized compensation expense as of March 31, 2026 amounted to $ 3.6 million with a weighted average remaining term of 2.1 years.

For the nonvested awards that were outstanding at March 31, 2026, the Company expects to record $ 2.0 million in compensation expense in the next twelve months, $ 1.6 million of which is expected to be recorded in the remaining quarters of 2026.

Nonvested at June 30, 2026 178,770 $ 46.71

Total unrecognized compensation expense as of June 30, 2026 amounted to $ 5.3 million with a weighted average remaining term of 2.3 years.

For the nonvested awards that were outstanding at June 30, 2026, the Company expects to record $ 2.6 million in compensation expense in the next twelve months, $ 1.4 million of which is expected to be recorded in the remaining quarters of 2026.

Earnings Per Share

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share ("EPS"):

For the Three Months Ended March 31,

For the Three Months Ended June 30,

($ in thousands except per share amounts) Income

10 unchanged sentences

Diluted EPS per common share $ 50,519 41,375,377 $ 1.22 $ 38,566 41,441,393 $ 0.93

For the Six Months Ended June 30,

($ in thousands except per share amounts) Income

(Numerator) Shares

(Denominator) Per Share

Amount Income

(Numerator) Shares

(Denominator) Per Share

Net income $ 97,178 $ 74,972

income allocated to restricted stock ( 442 ) ( 432 )

Basic EPS per common share $ 96,736 41,217,526 $ 2.35 $ 74,540 41,149,623 $ 1.81

Net income $ 97,178 41,217,526 $ 74,972 41,149,623

Effect of dilutive securities — 199,689 — 274,440

Diluted EPS per common share $ 97,178 41,417,215 $ 2.35 $ 74,972 41,424,063 $ 1.81

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) ("AOCI") for the Company for the periods shown were as follows:

($ in thousands) March 31, 2026 December 31, 2025

($ in thousands) June 30, 2026 December 31, 2025

Unrealized loss on securities available for sale $ ( 204,469 ) $ ( 194,122 )

5 unchanged sentences

Total accumulated other comprehensive income (loss) $ ( 157,293 ) $ ( 149,375 )

The following tables disclose the changes in AOCI for the three months ended March 31, 2026 and 2025 (all amounts are net of tax):

For the Three Months Ended March 31, 2026

The following tables disclose the changes in AOCI for the three and six months ended June 30, 2026 and 2025 (all amounts are net of tax):

For the Three Months Ended June 30, 2026

($ in thousands) Unrealized Loss on

3 unchanged sentences

Other comprehensive income before reclassifications ( 5,200 ) — ( 5,200 )

Net current period other comprehensive income ( 2,757 ) 20 ( 2,737 )

Amounts reclassified from accumulated other comprehensive income — 19 19

Net current period other comprehensive (loss) income ( 5,200 ) 19 ( 5,181 )

Ending balance $ ( 157,253 ) $ ( 40 ) $ ( 157,293 )

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

($ in thousands) Unrealized Loss on

3 unchanged sentences

Other comprehensive income before reclassifications 17,110 — 17,110

Net current period other comprehensive income 35,401 — 35,401

Amounts reclassified from accumulated other comprehensive income — — —

Net current period other comprehensive income (loss) 17,110 — 17,110

Ending balance $ ( 229,603 ) $ 85 $ ( 229,518 )

For the Six Months Ended June 30, 2026

($ in thousands) Unrealized Loss on

Available for Sale Postretirement Plans Asset

(Liability) Total

Beginning balance $ ( 149,296 ) $ ( 79 ) $ ( 149,375 )

Other comprehensive income before reclassifications ( 7,957 ) — ( 7,957 )

Amounts reclassified from accumulated other comprehensive income — 39 39

Net current period other comprehensive (loss) income ( 7,957 ) 39 ( 7,918 )

Ending balance $ ( 157,253 ) $ ( 40 ) $ ( 157,293 )

For the Six Months Ended June 30, 2025

($ in thousands) Unrealized Loss on

Available for Sale Postretirement Plans Asset

(Liability) Total

Beginning balance $ ( 282,114 ) $ 85 $ ( 282,029 )

Other comprehensive loss before reclassifications 52,511 — 52,511

Amounts reclassified from accumulated other comprehensive income — — —

Net current period other comprehensive income (loss) 52,511 — 52,511

Ending balance $ ( 229,603 ) $ 85 $ ( 229,518 )

Amounts reclassified from AOCI for unrealized gain (loss) on AFS securities represent realized securities gains or losses, net of tax effects.

Amounts reclassified from AOCI for postretirement plans asset (liability) represent amortization of amounts included in AOCI, net of taxes, and are recorded in the "Other operating expenses" line item of the consolidated statements of income.

Amounts reclassified from AOCI for postretirement plans asset (liability) represent

amortization of amounts included in AOCI, net of taxes, and are recorded in the "Other operating expenses" line item of the consolidated statements of income.

Revenue from Contracts with Customers

All of the Company’s revenues that are in the scope of the “ Revenue from Contracts with Customers ” accounting standard (“ASC 606”) are recognized within noninterest income.

The following table presents the Company’s sources of noninterest income for the three months ended March 31, 2026 and 2025.

The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2026 and 2025.

Items outside the scope of ASC 606 are noted as such.

For the Three Months Ended

($ in thousands) March 31, 2026 March 31, 2025

For the Three Months Ended For the Six Months Ended

($ in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Noninterest Income in-scope of ASC 606:

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The Company is a bank holding company, whose principal activity is the ownership and management of its wholly-owned subsidiary, the Bank.

As a community focused financial institution, substantially all of the Company’s

operations involve the delivery of loan and deposit products or the provision of financial advice to customers.

As a community focused financial institution, substantially all of the Company’s operations involve the delivery of loan and deposit products or the provision of financial advice to customers.

Management makes operating decisions and assesses performance based on an ongoing review of these banking operations, which constitute the Company’s only operating segment for financial reporting purposes.

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The chief operating decision makers use the Consolidated Statements of Income and Consolidated Balance Sheets to ascertain measures or performance such as revenue, profit or loss, significant expenses and assets.

Depreciation expense amounted to $ 1.6 million and $ 1.8 million for the three months ended March 31, 2026 and 2025, respectively.

Depreciation expense amounted to $ 1.7 million for the three months ended June 30, 2026 and 2025, and $ 3.3 million and $ 3.5 million for the six months ended June 30, 2026 and 2025, respectively.

Depreciation expense is recorded in Occupancy and equipment expense on the Consolidated Statements of Income.

Subsequent Events

On July 14, 2026, the Company announced an agreement to acquire First Carolina, the parent company of Carolina Bank & Trust Company ("Carolina Bank"), headquartered in Florence, South Carolina, for approximately $ 166 million based on First Bancorp's stock price of $ 64.22 as of July 13, 2026, comprised of approximately 75 % stock and 25 % cash.

The acquisition, which is subject to customary closing conditions, including regulatory approvals and approval by First Carolina's shareholders, is expected to close by the first quarter of 2027.

consideration payable to First Carolina shareholders consists of 1,967,017 shares of First Bancorp common stock and $ 40 million in cash.

Carolina Bank currently operates 14 banking locations in South Carolina.

First Carolina reported assets of $ 831 million, gross loans of $ 596 million and deposits of $ 714 million as of March 31, 2026.

The acquisition would increase the Company's market share in the Pee Dee Region of South Carolina.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements