First Bancorp Hits 52-Week High on Blowout Q4 Earnings
Shares surge after the bank's adjusted earnings beat estimates by 29%, driven by robust loan growth and significant margin expansion.
Shares of First Bancorp (FBNC) jumped more than 4.7% in Tuesday trading, touching a new 52-week high of $60.50 after the company posted fourth-quarter results that significantly outpaced analyst expectations. The North Carolina-based lender demonstrated strong underlying profitability and operational momentum, reassuring investors of its health in a shifting economic landscape.
The bank holding company, with a market capitalization of $2.4 billion, reported an adjusted earnings per share of $1.19, a 29% beat compared to the consensus estimate of $0.92. While GAAP earnings of $0.38 per share were impacted by a one-time, pre-tax securities loss of $43.7 million, investors looked past the charge to focus on the bank's core operational strength.
The results were driven by a powerful combination of strong lending and margin improvements. According to its press release, Net Interest Income for the quarter grew 19.5% year-over-year to $106.2 million. More significantly, the bank’s Net Interest Margin (NIM) expanded by an impressive 53 basis points from the prior year to 3.58%. This indicates the bank is effectively managing the spread between its lending income and funding costs in a new interest rate environment.
First Bancorp’s performance comes as the regional banking sector benefits from a more favorable macroeconomic backdrop, following a series of interest rate cuts by the Federal Reserve in the latter half of 2025. These moves have helped alleviate pressure on deposit costs industry-wide.
However, First Bancorp's results show it is not just riding a sector-wide wave but is a standout performer. The bank reported total loans of $8.7 billion, reflecting a stellar annualized growth rate of 14.3%. This figure is more than double the 5.3% year-over-year loan growth seen across the broader U.S. banking industry in the same period, highlighting the bank's success in generating new business.
The bank’s leadership signaled confidence that this performance would continue. In the earnings report, the company's CEO noted "accelerating momentum as we move into 2026," suggesting a positive outlook for the year ahead.
Wall Street has taken a largely positive stance on the stock. According to data from TipRanks, First Bancorp holds a "Strong Buy" consensus rating from analysts. The average analyst price target sits at $60.20, with the stock’s recent surge pushing it past that level. The strong quarterly performance coupled with a healthy dividend yield of approximately 1.56% presents a compelling case for a bank that is executing well in a complex market.