NasdaqGS:FBNC

Stock Analysis Report

Executive Summary

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina.

Rewards

Trading at 40.8% below its fair value

Earnings have grown 34.1% per year over the past 5 years

Pays a high and reliable dividend of 1.88%

Risk Analysis

Earnings are forecast to decline by an average of -1.3% per year for the next 3 years



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has First Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FBNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

FBNC

-1.6%

US Banks

0.8%

US Market


1 Year Return

5.2%

FBNC

15.3%

US Banks

25.1%

US Market

Return vs Industry: FBNC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: FBNC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FBNCIndustryMarket
7 Day-1.4%-1.6%0.8%
30 Day-7.9%-2.6%3.1%
90 Day1.5%5.4%10.9%
1 Year6.8%5.2%18.6%15.3%27.7%25.1%
3 Year37.1%32.3%31.4%22.1%51.3%41.6%
5 Year134.0%118.3%85.5%64.7%77.2%57.6%

Price Volatility Vs. Market

How volatile is First Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Bancorp undervalued compared to its fair value and its price relative to the market?

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBNC ($38.32) is trading below our estimate of fair value ($64.73)

Significantly Below Fair Value: FBNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FBNC is good value based on its PE Ratio (12x) compared to the Banks industry average (12.8x).

PE vs Market: FBNC is good value based on its PE Ratio (12x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FBNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FBNC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBNC's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: FBNC's earnings are forecast to decline over the next 3 years (-1.3% per year).

High Growth Earnings: FBNC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FBNC's revenue (4.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FBNC's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBNC's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has First Bancorp performed over the past 5 years?

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBNC has high quality earnings.

Growing Profit Margin: FBNC's current net profit margins (34.2%) are higher than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: FBNC's earnings have grown significantly by 34.1% per year over the past 5 years.

Accelerating Growth: FBNC's earnings growth over the past year (19.1%) is below its 5-year average (34.1% per year).

Earnings vs Industry: FBNC earnings growth over the past year (19.1%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: FBNC's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FBNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: FBNC's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: FBNC's level of assets compared to its equity is low.

Allowance for Bad Loans: FBNC has a low allowance for bad loans.

Low Risk Liabilities: FBNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: FBNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FBNC's loans are broadly funded by customer deposits.

Level of Bad Loans: FBNC has an appropriate level of bad loans (0.67%)


Next Steps

Dividend

What is First Bancorp's current dividend yield, its reliability and sustainability?

1.91%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: FBNC's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FBNC's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: FBNC's dividends per share have been stable in the past 10 years.

Growing Dividend: FBNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), FBNC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBNC's dividends in 3 years are forecast to be well covered by earnings (17.9% payout ratio).


Next Steps

Management

What is the CEO of First Bancorp's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Richard Moore (58yo)

7.6yrs

Tenure

US$1,232,617

Compensation

Mr. Richard Hancock Moore has been the Chief Executive Officer of First BanCorp since June 11, 2012. Mr. Moore serves as the Managing Director of San Diego-based Relational Investors LLC, a Registered Inve ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.23M) is below average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.6yrs

Average Tenure

58yo

Average Age

Experienced Management: FBNC's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

62yo

Average Age

Experienced Board: FBNC's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

Insider Buying: FBNC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$30,90219 Dec 19
Thomas Phillips
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares763
Max PriceUS$40.50
SellUS$878,62517 Dec 19
Suzanne DeFerie
EntityIndividual
Shares21,641
Max PriceUS$40.60
SellUS$39,25026 Nov 19
Mary Capel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$39.25
SellUS$450,74625 Nov 19
Dennis Wicker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,758
Max PriceUS$38.34
SellUS$32,62502 Aug 19
Mary Capel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$36.25
SellUS$36,30014 Jun 19
Mary Capel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$36.30
SellUS$35,50003 Jun 19
Mary Capel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$35.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eric Credle (51yo)

    Chief Financial Officer

    • Tenure: 22.3yrs
    • Compensation: US$601.61k
  • Elsie Alvarez

    Senior Vice President of First Bank

    • Mike Mayer (58yo)

      President & Director

      • Tenure: 2.9yrs
      • Compensation: US$1.06m
    • Richard Moore (58yo)

      CEO & Director

      • Tenure: 7.6yrs
      • Compensation: US$1.23m
    • Elizabeth Bostian

      Executive VP & Secretary


      Board Members

      • Jim Crawford (63yo)

        Chairman of the Board

        • Tenure: 3yrs
        • Compensation: US$81.90k
      • Dennis Wicker (67yo)

        Independent Director

        • Tenure: 18.8yrs
        • Compensation: US$64.00k
      • Virginia Thomasson (68yo)

        Independent Director

        • Tenure: 19.8yrs
        • Compensation: US$74.00k
      • Tommy Phillips (74yo)

        Independent Director

        • Tenure: 19.8yrs
        • Compensation: US$64.00k
      • Daniel Blue (69yo)

        Independent Director

        • Tenure: 9.8yrs
        • Compensation: US$64.00k
      • Frederick Taylor (50yo)

        Independent Director

        • Tenure: 14.7yrs
        • Compensation: US$64.00k
      • Mary Capel (61yo)

        Independent Director

        • Tenure: 14.7yrs
        • Compensation: US$64.00k
      • Mike Mayer (58yo)

        President & Director

        • Tenure: 2.9yrs
        • Compensation: US$1.06m
      • Richard Moore (58yo)

        CEO & Director

        • Tenure: 7.6yrs
        • Compensation: US$1.23m
      • O. Sloan (58yo)

        Independent Director

        • Tenure: 4.7yrs
        • Compensation: US$64.00k

      Company Information

      First Bancorp's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: First Bancorp
      • Ticker: FBNC
      • Exchange: NasdaqGS
      • Founded: 1934
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$1.119b
      • Shares outstanding: 29.60m
      • Website: https://www.localfirstbank.com

      Number of Employees


      Location

      • First Bancorp
      • 300 SW Broad Street
      • Southern Pines
      • North Carolina
      • 28387
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      FBNCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1987

      Biography

      First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses primarily in North Carolina and northeastern South Carolina. It accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificates of deposit and individual retirement accounts. The company also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and SBA loans. In addition, it provides credit and debit cards, letters of credit, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and Internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, the company offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. As of December 31, 2018, it operated 101 branches, including 95 branches in North Carolina and 6 branches in South Carolina. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 23:39
      End of Day Share Price2020/01/21 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.