First Bancorp (NASDAQ:FBNC) Files An 8-K Results of Operations and Financial Condition
Item2.02 Results of Operations and Financial Condition
| Exhibit99.1News Release dated April 27, 2017 | Exhibit |
Item2.02 Results of Operations and Financial Condition
On April 27, 2017, First Bancorp (the Registrant or Company)
issued a news release to announce its financial results for the
three months ended March 31, 2017. The news release is attached
hereto as Exhibit 99.1.
The news release includes disclosure of net interest income on a
tax-equivalent basis, which is a non-GAAP performance measure
used by management in operating its business. Management believes
that analysis of net interest income on a tax-equivalent basis is
useful and appropriate because it allows a comparison of net
interest income amounts in different periods without taking into
account the different mix of taxable versus non-taxable
investments that may have existed during those periods.
The news release also includes disclosure of tax-equivalent net
interest margin, excluding the impact of loan discount accretion,
which is a non-GAAP performance measure. Management believes that
it is useful to calculate and present the net interest margin
without the impact of loan discount accretion, for the reasons
explained in the rest of this paragraph. Loan discount accretion
is a non-cash interest income adjustment that is related to the
Registrants acquisition of loans and represents the portion of
the fair value discount that was initially recorded on the
acquired loans that is being recognized into income over the
lives of the loans. At March 31, 2017, the Registrant had a
remaining loan discount balance of $19.6 million compared to
$14.0 million at March 31, 2016. For the related loans that
perform and pay-down over time, the loan discount will also be
reduced, with a corresponding increase to interest income.
Therefore management believes it is useful to also present this
ratio to reflect net interest margin excluding this non-cash,
temporary loan discount accretion adjustment to aid investors in
comparing financial results between periods.
The Registrant cautions that non-GAAP financial measures should
be considered in addition to, but not as a substitute for, the
reported GAAP results. A reconciliation between the non-GAAP
financial measures presented and the most directly comparable
financial measure calculated in accordance with GAAP is included
in the news release and financial summary attached hereto as
Exhibit 99.1.
The information in the preceding paragraph, as well as Exhibit
99.1 referenced therein, shall not be deemed filed for purposes
of Section 18 of the Securities Exchange Act of 1934 nor shall it
be deemed incorporated by reference in filings under the
Securities Act.
Item9.01 Financial Statements and Exhibits
| (d) | Exhibits |
| Exhibit No. | Description | |
| 99.1 | News release issued on April 27, 2017 |
Disclosures About Forward Looking Statements
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 and
the Private Securities Litigation Reform Act of 1995, 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,
anticipate, 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 Companys customers, the Companys
level of success in integrating acquisitions, actions of
government regulators, the level of market interest rates, and
general economic conditions. For additional information about the
factors that could affect the matters discussed in this
paragraph, see the Risk Factors section of the Companys most
recent annual report on Form 10-K. Forward-looking statements
speak only as of the date they are made, and the Company
undertakes no obligation to update or revise forward-looking
statements. The Company is also not responsible for changes made
to the press release by wire services, internet services or other
media.
About First Bancorp (NASDAQ:FBNC)
First Bancorp is the bank holding company for First Bank (the Bank). The Company’s principal activity is the ownership and operation of First Bank. The Company engages in a range of banking activities, including the acceptance of deposits and the making of loans. The Company offers credit cards, debit cards, letters of credit, safe deposit box rentals and electronic funds transfer services, including wire transfers. In addition, the Company offers Internet banking, mobile banking, cash management and bank-by-phone capabilities to its customers. The Company also offers a mobile check deposit feature for its mobile banking customers that allows them to deposit checks through their smartphone. The Company offers remote deposit capture for its business customers. The Company conducts business from approximately 90 branches. The Bank’s subsidiaries include First Bank Insurance Services, Inc. (First Bank Insurance) and First Troy SPE, LLC. First Bancorp (NASDAQ:FBNC) Recent Trading Information
First Bancorp (NASDAQ:FBNC) closed its last trading session down -0.88 at 30.62 with 120,277 shares trading hands.