2020 Year IN Review
2020 Highlights
01
First Bancorp named to S&P SmallCap 600 Index
...we originated 2,810 PPP loans totaling $245 million for small businesses in our communities..."
Richard H. Moore
Chief Executive Officer
Dear Shareholders, Customers, and Friends,
Despite the many challenges of this past pandemic year, we were pleased to create even deeper partnerships with our customers, communities, and employees as we navigated the uncertain times together. With positive news on the vaccine, I'm hopeful that we will all return to normalcy soon.
For our shareholders, the economic uncertainty that prevailed for most of
2020 resulted in a bumpy ride for the banking industry, which I discuss further below. But by remaining focused on our core community-banking mission, I believe our company had a very successful year.
At the onset of the pandemic and on short notice, the U.S. government authorized the Paycheck Protection Program (PPP). We quickly assembled a team to assist our customers in accessing
- funding and by mid-May, we had originated 2,810 PPP loans totaling $245 million for small businesses in our communities to help them meet the challenges of the pandemic.
As COVID-19 began to spread, we closed our branch lobbies for a period of time to establish safety protocols, but were able to effectively serve our customers on a drive-through basis. By late May, we were one of the first banks to re-open our lobbies, which many of our customers greatly appreciated.
continued...
02
#1 Best-In-State Bank
in North Carolina
03
Donna Ward
named new COO
Donna has been with the Bank for more than two decades, serving in a variety of positions including director of training, branch administration manager, and director of project management. In her new role, she oversees all of the Bank's operation groups along with the teams in IT, digital banking, and our customer service centers.
2020 Year In Review | 04 | ||||
EverFi National Financial Bee | |||||
Our investment in technology over | First Bank became one of the top sponsors | ||||
of EverFi's National Financial Bee - a contest to | |||||
the past several years really paid off in | encourage high school students to learn the fundamentals | ||||
2020. With customers staying at home | of savings and financial planning. | ||||
more and using their computers and | Of the 37 sponsors, First Bank landed at | ||||
phones to transact their banking, our | |||||
10th for highest essay entries and engagement | |||||
easy-to-use banking app saw record | (more than 1,550 visitors to the page). | ||||
levels of use, reaching 1.7 million logins | The bank also sponsored four | ||||
in May 2020, which was a 70% increase | ...our easy-to-use | ||||
who entered through our | |||||
from a year earlier. The use of our app | |||||
$1,000 local scholarship winners | |||||
remains high, and its ease-of-use is | banking app saw | contest landing page. | |||
very popular with customers. | record levels of use, | ||||
reaching 1.7 million logins | |||||
In June 2020, we received a nice | in May 2020, which was a | ||||
recognition from Forbes, with First Bank | 70% increase from a | ||||
being named as the Best In-State | |||||
Bank in North Carolina. This ranking | year earlier." | ||||
was based on customer satisfaction | |||||
surveys in the areas of trust, terms | From an earnings perspective, during | For shareholders, after trading lower | |||
and conditions, branch services, | 2020, we set aside a high level of loan | as concerns about the pandemic | |||
digital services, and financial advice. | loss provision to reserve for probable | emerged, our stock price rose steadily | |||
This was our second consecutive year | losses arising from the stressed | near the end of 2020, ending the year | |||
being recognized, and we are the | economic conditions that many of our | at $33.83 per share. This resulted in | |||
only bank in those years to have our | borrowers experienced as a result of | a five-year total return on our stock | |||
headquarters in North Carolina. | the pandemic. In total, our loan loss | of 96% compared to a peer average | |||
provision was $35.0 million for the year | of 45%. In 2021, our share price has | ||||
We experienced strong balance | compared to just $2.3 million in 2019, | continued to perform well and closed | |||
sheet growth in 2020, with total assets | which was the primary reason our 2020 | at $40.93 on February 25, 2021. Due to | |||
increasing to $7.3 billion, an 18.7% | earnings of $81.5 million were down | our strong capital position, during | |||
increase from a year earlier. Driving | 11.5% from 2019. While lower than | 2020 we were able to repurchase | |||
this growth was a $1.3 billion, or 27.2%, | the prior year, our 2020 earnings were | $31 million of our stock at an average | |||
increase in deposits. | still the third-highest annual earnings | price of $28.53 per share. And I hope | |||
reported in our history. | you saw that we recently increased our | ||||
quarterly dividend payout by 11.1% to | |||||
$0.20 per share. | |||||
We believe the future of our nation | |||||
and our Bank is bright, and we look | |||||
05 | forward to continuing to serve you. | ||||
Autobooks | Sincerely, | ||||
A convenient online payments and invoicing | |||||
tool that business clients can access right | |||||
in online and mobile banking. | |||||
More than $9 million in payments have gone | |||||
through the system so far, and the annual shared | Richard H. Moore | ||||
fee income continues to increase with | |||||
each new business client added. | Chief Executive Officer | ||||
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
Commission File Number 0-15572
FIRST BANCORP
(Exact Name of Registrant as Specified in its Charter)
North Carolina | 56-1421916 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |
300 SW Broad St., Southern Pines, | North Carolina | 28387 |
(Address of Principal Executive Offices) | (Zip Code) | |
(Registrant's telephone number, including area code) | (910) 246-2500 |
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered |
Common Stock, No Par Value | FBNC | The Nasdaq Global Select Market |
Securities Registered Pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1933. ☒ Yes ☐ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☒ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files). ☒ Yes | ☐ No |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
☒ Large Accelerated Filer | ☐ Accelerated Filer | ☐ Non-Accelerated Filer |
☐ Smaller Reporting Company | ☐ Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act
(15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
The aggregate market value of the Common Stock, no par value, held by non-affiliates of the registrant, based on the closing price of the Common Stock as of June 30, 2020 as reported by The NASDAQ Global Select Market, was approximately $711,100,000.
The number of shares of the registrant's Common Stock outstanding on February 26, 2021 was 28,492,779.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's Proxy Statement to be filed pursuant to Regulation 14A are incorporated herein by reference into Part III.
TABLE OF CONTENTS | ||
Page | ||
PART I | ||
Item 1 | Business | 4 |
Item 1A | Risk Factors | 17 |
Item 1B | Unresolved Staff Comments | 27 |
Item 2 | Properties | 27 |
Item 3 | Legal Proceedings | 27 |
Item 4 | Mine Safety Disclosures | 27 |
PART II | ||
Item 5 | Market for Registrant's Common Stock, Related Shareholder Matters, and Issuer Purchases of | 27 |
Equity Securities | ||
Item 6 | Selected Consolidated Financial Data | 29 |
Item 7 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 29 |
Item 7A | Quantitative and Qualitative Disclosures about Market Risk | 59 |
Item 8 | Financial Statements and Supplementary Data: | |
Consolidated Balance Sheets as of December 31, 2020 and 2019 | 78 | |
Consolidated Statements of Income for each of the years in the three-year period ended | 79 | |
December 31, 2020 | ||
Consolidated Statements of Comprehensive Income for each of the years in the three-year | 80 | |
period ended December 31, 2020 | ||
Consolidated Statements of Shareholders' Equity for each of the years in the three-year period | 81 | |
ended December 31, 2020 | ||
Consolidated Statements of Cash Flows for each of the years in the three-year period ended | 82 | |
December 31, 2020 | ||
Notes to the Consolidated Financial Statements | 83 | |
Item 9 | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures | 140 |
Item 9A | Controls and Procedures | 140 |
Item 9B | Other Information | 140 |
PART III | ||
Item 10 | Directors, Executive Officers and Corporate Governance | 141 |
Item 11 | Executive Compensation | 141 |
Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder | 141 |
Matters | ||
Item 13 | Certain Relationships and Related Transactions, and Director Independence | 141 |
Item 14 | Principal Accountant Fees and Services | 141 |
PART IV | ||
Item 15 | Exhibits and Financial Statement Schedules | 142 |
Item 16 | Form 10-K Summary | 144 |
SIGNATURES | 145 |
- Information called for by Part III (Items 10 through 14) is incorporated herein by reference to the Registrant's definitive Proxy Statement for the 2021 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission on or before April 30, 2021.
3
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First Bancorp published this content on 22 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2021 13:48:01 UTC.