FIRST BANCORP
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F I R S T B A N C O R P | F I N A N C I A L H I G H L I G H T S
($ in thousands except share data)
Years Ended December 31,
2008
2007
2006
Change
2007
to 2008
Change
2006
to 2007
S E L E C T E D I N C O M E S T A T E M E N T D A T A
Net interest income
Provision for loan losses
Noninterest income
Noninterest expenses
Income taxes
Net income
9,880
21,107
62,661
13,120
22,005
$ 86,559
P E R S H A R E D ATA
Earnings – basic
Earnings – diluted
Cash dividends declared
Market Price:
High
Low
Close
Book value
Tangible book value
$ 1.38
1.37
0.76
20.86
11.25
18.35
13.27
9.18
79,284
5,217
18,473
57,580
13,150
21,810
1.52
1.51
0.76
26.72
16.40
18.89
12.11
8.56
74,536
4,923
14,310
53,198
11,423
19,302
1.35
1.34
0.74
23.90
19.47
21.84
11.34
7.76
S E L E C T E D B A L A N C E S H E E T D A T A
(at year end)
Assets
Loans
Deposits
Shareholders’ equity
$2,750,567
2,211,315
2,074,791
219,868
2,317,249
1,894,295
1,838,277
174,070
2,136,624
1,740,396
1,695,679
162,705
9.2%
89.4%
14.3%
8.8%
-0.2%
0.9%
-9.2%
-9.3%
0.0%
-21.9%
-31.4%
-2.9%
9.6%
7.2%
18.7%
16.7%
12.9%
26.3%
6.4%
6.0%
29.1%
8.2%
15.1%
13.0%
12.6%
12.7%
2.7%
11.8%
-15.8%
-13.5%
6.8%
10.3%
8.5%
8.8%
8.4%
7.0%
R AT I O S
Return on average assets
Return on average equity
Net charge-offs to average loans
0.89%
10.44%
0.24%
1.02%
12.77%
0.16%
1.00%
11.83%
0.11%
-13bps
-233bps
8 bps
2 bps
94 bps
5 bps
N O N F I N A N C I A L D A T A
Shares outstanding
Number of branches
Number of employees – full/part time
16,573,826
74
612/75
14,377,981
70
574/81
14,352,884
68
579/82
F I R S T B A N C O R P | T A B L E O F C O N T E N T S
President’s Letter ......................................................................... 2
Board of Directors ..................................................................... 10
Executive Officers ....................................................................... 11
Service Area Map ........................................................................12
Local Advisory Boards ............................................................. 14
First Bancorp and Subsidiaries .............................................18
Financial Summary .....................................................................19
Financial Statements ................................................................22
Independent Auditors’ Report ..............................................24
Shareholder Information ..................................Inside Back Cover
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1of33
98%
55,000
74
SA NDLE R O ’ NE ILL 200 8 B ANK
& TH R IF T SM -ALL STA RS
SOUND ASSET QUALITY
S URCH AR GE -FR EE NAT I O NWI DE
AND UK AT MS
B RANC HE S
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F I R S T B A N C O R P | P R E S I D E N T ’ S L E T T E R
Dear Friends and Shareholders: I write to you during one of the most
difficult economic times this country has ever experienced. We are in
the midst of a recession with the economic data getting seemingly worse
with each passing day.
It appears that the housing market is at the
we have been careful to consistently follow
heart of this problem. What began with heavy
what we believe are sound credit underwriting
losses in the sub-prime mortgage market
practices for all the loans we make. We also did
expanded to become a decline in the overall
not chase the high returns of risky investments
housing market, which is having a pervasive
that have resulted in large losses at many other
effect on most aspects of our economy. Our
government has been working hard to devise
ways to bring us out of this situation, but it is
banks. Although we are not immune to general
economic conditions, we believe that our
conservative operating philosophy has helped
likely to be a gradual process.
protect us from the worst effects of the current
The financial industry has been
economic environment.
especially hard hit. Events that occurred
Because we were largely able to avoid the
during 2008 were breathtaking, including
types and magnitude of losses experienced
the demise of Fannie Mae, Bear
Stearns, Lehman Brothers, and
Wachovia. People’s confidence in
banks became so shaken that in
October 2008, the United States
Treasury concluded that it had
no other option than to begin
injecting capital into banks.
Although there have been some
criticisms with the way this was
done, I firmly believe that the actions
taken by the Treasury have been
beneficial to the financial system and
America. Although we were well-
capitalized by all regulatory definitions,
we participated in the Treasury’s capital
purchase program, which I will discuss
later in my report.
In light of all of the turmoil, First
Bancorp has been a safe-haven from
the storm. We never entered the
sub-prime mortgage market, and
by much of the industry, we reported
a very profitable year in 2008. For
the year, we made $22 million,
or $1.37 per diluted share. This
was a decrease of only 9.3% from
the $1.51 in earnings per share
that we reported for 2007. From a
performance standpoint, our 2008
return on average assets was 0.89%
and our return on average equity was
10.44%. If you are a follower of banks,
you know how strong these results are
in light of the challenges faced by the
banking industry.
From a balance sheet perspective,
we finished the year with $2.8 billion
in assets, an 18.7% increase from
2007, with loans of $2.2 billion and
deposits of $2.1 billion. Please see
the Financial Summary section of this
annual report beginning on page 19
for more discussion of our 2008 results.
Jerry L. Ocheltree, President and CEO, First Bancorp and First Bank
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From a shareholder perspective, I am proud
with us their observations and suggestions for
that our financial stability allowed us to maintain
improvement. This attention to sound loan
our dividend rate throughout 2008. We paid
underwriting has resulted in our asset quality
dividends of $0.76 per share in 2008, which
comparing favorably to peers on a consistent
was unchanged from 2007. Our intent at the
basis. Although we have experienced some
beginning of this year was to continue with the
recent deterioration in asset quality that is to
same rate for 2009. However, consistent with
be expected with the decline in the economy,
our historically conservative nature amid ever-
our asset quality remains sound and continues
worsening economic conditions, we felt it was
to compare favorably to peers. As of December
prudent to conserve capital. Thus, we declared
31, 2008, First Bancorp’s ratio of nonaccrual
a lower dividend rate for the first quarter of
loans to total loans was 1.20% compared to a
2009, amounting to an annualized rate of $0.32.
regulatory peer average of 2.20%. Sound asset
We will assess our divided rate every quarter,
quality is something that is critical these days,
and my hope is that in the near future, as
and we will continue to emphasize it.
conditions allow, we can increase it from its
I hope you agree that First Bancorp’s
new level. I am also pleased that our overall
performance was strong during 2008. In fact,
stock performance for 2008 compared favorably
our recent performance was so strong that in
to our peers. When you factor in dividends, the
September, First Bancorp was recognized by the
total return of our stock was a gain of 1.6% in
investment banking firm Sandler O’Neill as one
2008. This compares to a decline of 33.8% for
of the 33 best performing small-cap banks in the
a small company index and a decline of 15.2%
nation. We are proud to have been recognized
for a peer bank index. Stock return performance
with this honor.
has been dismal thus far in 2009, both for our
stock and the overall market. Although we
expect 2009 to be a challenging year, I am
optimistic that the American economy will
improve soon and stocks will recover.
One of the main factors impacting bank
Now I would like to discuss some of the other
accomplishments for 2008, as well as some
things we have planned for the upcoming year.
We entered 2008 working to ensure a
smooth transition for our April 1 acquisition
of Great Pee Dee Bancorp, and its banking
stocks these days is asset quality. Asset quality
subsidiary Sentry Bank & Trust, which had
concerns are what have caused so many
been announced in July 2007. Sentry Bank &
problems for the banking industry over the
Trust, with assets of $211 million, had served
past year. We devote substantial time and
the citizens of Cheraw, South Carolina since
resources to ensure that we minimize the risks
1935 and had more recently expanded to
associated with making loans. We have an
Florence, South Carolina. Both Cheraw and
experienced team of senior lenders who review
Florence are in counties that were contiguous
and approve each other’s large loans, and we
to ones we were already serving. Not only was
have an ongoing training program for all of
this merger a natural fit for us geographically,
our loan officers. Also, on a quarterly basis, we
but was also a great fit culturally. John Long,
engage a third party loan review firm to review
the President of Sentry Bank, and the rest of his
samples of our loans, with the firm then sharing
team had always treated their customers with
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the same high degree of personalized care that
by the US Treasury as a significant and growing
we emphasize at First Bank. We also welcomed
impediment to economic recovery. With no
their Chairman Jim Crawford, who
easy solution, in October of 2008 the Treasury
has been an asset to our board of directors.
announced a plan to purchase preferred stock
Another initiative that we worked on
throughout 2008 was an effort to increase the
company’s capital. We entered 2008 with capital
at a level that put us in the “well-capitalized”
category by regulatory standards, but with less
of a cushion than we were used to having and
less than we needed to finance future growth.
When this has occurred in past years (as it does
for many growing companies), we have been
able to access the capital markets and raise
capital easily. However, with the economy in
steady decline in 2008, the capital
markets ceased to operate as they
had in the past. Accordingly,
we were finding capital sources
increasingly scarce. This
situation was not just
happening to us, but was
also occurring at many
healthy banks across the
nation. Without access to
capital to finance growth,
many healthy banks,
including First Bancorp,
were faced with the
prospect of reducing their
lending activities in order
to preserve capital. When
healthy banks are not able
to lend money normally,
the entire economy is
negatively affected. As the
year progressed, the lack
of available capital and its
ramifications were identified
of healthy banks. By buying preferred stock of
healthy banks, the Treasury’s goal was to give
those banks the capital needed in order to allow
for increased lending. I keep referring to this
program as being for healthy banks because
that was the stated intent of the US Treasury.
These funds were not intended to “bail out”
unhealthy banks, but rather only to create a
lending stimulus for healthy banks, like First
Bancorp. The preferred stock was offered on
attractive terms, with a dividend rate of 5%
for the first five years, which also provides a
reasonable investment return for
the US Treasury. Additionally, as
part of the program, participating
banks were required to
issue warrants that allow
the Treasury to buy a set
amount of each bank’s
common stock based on
current stock prices for
the next 10 years.
The primary negatives
to the US Treasury’s offer
was that participating banks
cannot buy back stock or
increase their cash dividend
for three years. Additionally
there was, and continues
to be, the fear of increased
government regulation for
banks accepting these funds.
Also, until the funds can be
deployed or leveraged into
loans or other investments
Jerry L. Ocheltree, President and CEO, First Bancorp and First Bank,
at left, and David L. Burns, Chairman, First Bancorp
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yielding more than the 5% dividend rate
Also during 2008, we continued to look
(which equates to about 8.20% on a pretax
for ways to become more efficient. Although
basis), earnings per share dilution will occur.
our expense ratios compare favorably to peer
After careful deliberation, your board of
directors elected to apply for $65 million in
preferred stock sales to the US Treasury. We
were approved by the US Treasury in December
2008 and received the $65 million proceeds on
January 9, 2009. This additional capital assures
that we can continue to meet the credit needs of
the communities we serve in the same manner
as we have done for the past 74 years. If you
need a loan, I hope you will visit your nearest
First Bank branch. We are eager to serve you.
The Transaction Account Guarantee Program
announced by the FDIC in November 2008
was a related program that was designed to
provide depositors with greater confidence
in the banking system. Under this program,
all bank deposits are guaranteed by the FDIC
up to $250,000 through December 31, 2009.
Additionally, banks were given the option to
pay an additional premium to the FDIC in return
for unlimited FDIC insurance on all noninterest-
bearing transaction accounts throughout 2009.
We elected to participate in this option in order
to give our customers the maximum protection
possible. Based on conversations that I have
had with customers, these government
sponsored-programs I have just
discussed appear to have had the
desired effect of increasing
consumer confidence in
banks.
banks, we know that optimum efficiency is
especially important during these economic
times. Fortunately, technology is allowing us
to cut costs with no impact to our customers,
or sometimes a favorable impact. In 2008,
we began a pilot program for branch capture
technology, which allows our branches to
transmit teller transactions over the internet
without the expense of a courier physically
picking up the documents and driving them
to the home office for processing. We expect
significant savings related to this program upon
its complete implementation in 2009.
A similar technology is involved in our remote
deposit capture product that is available to our
business customers. Remote deposit capture
provides business customers with a method
to electronically transmit checks received from
their customers into their bank account without
having to visit a branch. This is an especially
valuable service to our customers who
are not in close proximity to one of
our branches, and it also allows
our customers to extend their
banking day by providing
same day credit for deposits
until 5 pm. Furthermore,
because the electronic
transaction is automated,
it is more efficient for
our company compared
to the customer taking
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their checks to one of our tellers and having to
of Great Pee Dee Bancorp, which had one
undergo a more manual process.
branch in Florence. The opening of a second
We also introduced new teller technology in
2008 that reduces paper by producing “virtual
tickets,” which replace internal documents and
branch should give us better market coverage
in this growing city located at the intersection of
two large interstate highways.
the cumbersome management of this inventory.
Another investment that we made in 2008
Furthermore, item processing personnel needs are
was in our ability to offer our customers
reduced due to the virtual elimination of encoding
government-sponsored FHA and VA loans.
read failures thereby significantly reducing the
These types of loans require a great deal of
need for manual processing. This technology
expertise, and we have recently made additions
further reduces our reliance on couriers, while
also reducing data processing fees.
We will continue to look for ways to become
even more efficient in 2009. One of the biggest
cost saving opportunities for us in 2009 relates
to our planned April rollout of bank statements
delivered over the internet to our customers’
e-mail accounts. This will save us significant
postage and supplies costs compared to US Postal
delivery. Also, during the second half of 2009, we
plan to introduce mobile banking capabilities to
our customers. Generally, the more things that
to our mortgage loan staff with the required
skills. We felt the addition of these products
was especially important given the growth in
military personnel that we expect in our market
areas surrounding Fort Bragg as a result of the
Base Realignment and Closure (BRAC) actions
approved by Congress in November 2005. While
some military bases in other states are closing,
the number of military personnel at Fort Bragg
is expected to increase as a result of BRAC with
a total population increase of approximately
40,000 related to this initiative. We are eager to
we can process or deliver electronically, the more
serve their banking needs.
efficient we will become.
While it is important to be efficient, we do not
want to miss opportunities for growth, and we
will continue to make investments where we
We also launched two new deposit products
in 2008. First, with deposit safety being a
concern of many customers due to the events
occurring in the financial industry, we began
believe it will benefit our shareholders.
In 2008, we opened a full service
branch in Fort Chiswell, Virginia. Fort
Chiswell is located at the intersection of
Interstates 77 & 81, and our branch there
is just a few miles away from our branch
in Wytheville. This has been a very
successful market for us and we were
pleased to make this investment.
As it relates to 2009 branch
expansion, our new branch in
Florence, South Carolina is scheduled
to open in late March. We entered the
Florence market with our acquisition
offering our customers the
ability to obtain FDIC insurance
coverage of up to $50 million
by opening a CDARS® deposit
account. Now, when a customer
deposits a large amount with
First Bank, the customer has the
option of accessing the CDARS®
network, whereby we place the
funds into certificates of deposit
issued by other banks in the same
network in increments less than
$100,000 so that both the principal
and interest is eligible for complete
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FDIC protection. As a result, our customers can
Savings Club is a fun way to teach that lesson.
receive FDIC coverage from many banks, while
still working with their local First Bank branch.
And we will also continue to provide the best
in all areas of community banking in 2009. With
Another deposit product we launched in 2008
is aimed at teaching children good savings habits.
the possibility that some of our competitors
are currently distracted with other matters, we
Our Looney Tunes Saving Club is a fun savings
believe there is an opportunity right now in
program that encourages good savings habits by
the marketplace to gain new market share by
rewarding children for positive behaviors. For
continuing to do what we have always done
example, when a child opens a Looney Tunes
best – Banking One-on-One.
savings account, they receive a New Member
Let me conclude this letter by saying farewell
Kit complete with membership cards,
stickers, pencils and other surprises.
Every time a child visits a branch and
makes a deposit of any
size, they get to select a
fun toy from the Looney
Tunes Treasure Chest.
With consumer debt rising,
it’s important that our
children and grandchildren
learn the importance of
saving. The Looney Tunes
to Jordan Washburn,
who is retiring from
our board of directors
this year. Jordan joined
our board in 1995 upon
our acquisition of Central
State Bank in High
Point, North Carolina.
Jordan was critical to the
integration of that merger
and has provided wise
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counsel in our board room ever since. Jordan
proxy statement, and I encourage you to read
is also very involved in many charitable causes
it closely. On the back of the proxy statement
in his community. We’ll miss Jordan’s presence,
is a location map for your convenience. I invite
and we wish him the best in all of his future
you to attend this meeting, which will give you
endeavors.
Accompanying the mailing of this annual
report is our SEC Form 10-K, proxy statement
and the notice of our Annual Shareholders
Meeting, which is being held at the James
an opportunity to meet the management and
board of directors of your company, as well
as, the opportunity to personally thank Jordan
Washburn for his years of service to
First Bancorp.
H. Garner Conference Center at 3:00 PM on
Your support is appreciated, and I welcome
May 7, 2009. There is important information
regarding your company contained within the
your comments and suggestions.
Sincerely,
Jerry L. Ocheltree
March 10, 2009
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F I R S T B A N C O R P | P E R F O R M A N C E
market oppo rtunit y per fom a nce
First Bancorp is the 6th largest bank
headquartered in North Carolina.
TOTAL ASSETS
Dollars in millions
$2.8
BILLION IN ASSETS
First Bancorp has paid dividends every
year since its 1987 public offering.
DIVIDENDS PER SHARE
Dollars
$.76
DOLLARS PER SHARE
First Bancorp maintained solid profitability,
despite a tumultuous year in the financial
industry.
EARNINGS PER SHARE
Dollars
9%
DECREASE
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L to R Front Row- Virginia C. Thomasson, Thomas F. Phillips, Jerry L. Ocheltree, David L. Burns, A. Jordan Washburn
Back Row- Goldie H. Wallace, George R. Perkins Jr., James G. Hudson Jr., Dennis A. Wicker, Frederick L. Taylor II,
James C. Crawford III, Jack D. Briggs, R. Walton Brown, John C. Willis, John F. Burns and Mary Clara Capel
F I R S T B A N C O R P | B O A R D O F D I R E C T O R S
Jack D. Briggs
President of J. Briggs, Inc.,
Davidson Funeral Home, Inc.,
Carter Funeral Home, Inc. and
Mountain View of Denton, Inc.,
and Secretary, Piedmont
Funeral Home
Funeral director and retail
furniture merchant
R. Walton Brown
Executive Vice President
of First Bank
David L. Burns
Chairman, First Bancorp
President, Z. V. Pate, Inc.
Holding company for agricultural,
timber, restaurant and retail sales
operations
John F. Burns
Executive Vice President
First Bancorp and First Bank
Mary Clara Capel
Director of Administration
Capel, Inc.
Rug manufacturer, importer
and exporter
James C. Crawford III
Investor
James G. Hudson Jr.
Executive Vice President
First Bank (retired)
Jerry L. Ocheltree
President and CEO
First Bancorp and First Bank
George R. Perkins Jr.
Chairman and CEO
Frontier Spinning Mills, LLC
Thomas F. Phillips
Chairman, First Bank
Owner, Phillips Ford
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Frederick L. Taylor II
President
Troy Lumber Company
Virginia C. Thomasson, CPA
Chairman, Montgomery Data
Services, Inc.
Partner, Holden, Thomasson &
Longfellow, P.C.
Goldie H. Wallace
Investor
A. Jordan Washburn
Chairman, First Bank Insurance
Services, Inc.
Retired
Dennis A. Wicker
Attorney
SZD Wicker LPA
John C. Willis
Investor
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F I R S T B A N C O R P | E X E C U T I V E O F F I C E R S
Jerry L. Ocheltree
President and CEO
First Bancorp and First Bank
David G. Grigg
President
Montgomery Data Services, Inc.
Eric P. Credle
Chief Financial Officer
Executive Vice President
Anna G. Hollers
Chief Operating Officer
Executive Vice President
Secretary
Teresa C. Nixon
Chief Lending Officer
Executive Vice President
R. Walton Brown
Executive Vice President
John F. Burns
Executive Vice President
Timothy S. Maples
Senior Vice President
Assistant Secretary
Lee C. McLaurin
Senior Vice President
Controller
F I R S T B A N K | R E G I O N A L E X E C U T I V E O F F I C E R S
Janet D. Abernethy
Senior Vice President
Roger S. Gentry Jr.
Senior Vice President
J. Bradford Mickle
Senior Vice President
Richard E. Clayton
Senior Vice President
Jimmy G. Grubbs
Senior Vice President
Jimmy R. Preslar
Senior Vice President
David C. Foushee
Senior Vice President
Michael L. Hardin
Senior Vice President
Stamey R. Taylor
Senior Vice President
John S. Long
Executive Vice President
Charles R. Vance III
Senior Vice President
A R E A E X E C U T I V E O F F I C E R S
R. Glenn Batten
Senior Vice President
Susie C. Jones
Vice President
Robert T. Patterson
Senior Vice President
Frances H. Cagle
Senior Vice President
Phillip W. Fulghum
Senior Vice President
Jerry M. Kinlaw
Senior Vice President
Frank E. Love
Senior Vice President
H. Dean Martin
Senior Vice President
Michael W. Vinson
Senior Vice President
Joseph F. Youngblood
Senior Vice President
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F I R S T B A N C O R P | S E R V I C E A R E A
M A P L E G E N D
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First Bank Main Office First Bank BranchesFirst Bank Branches operating as First Bank of VirginiaLoan Production Office First Bank Insurance Services (Troy, Southern Pines) First Bank Investment Services (Troy, Southern Pines, Albemarle) 2 0 0 8 A N N U A L R E P O R T
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2 0 0 8 A N N U A L R E P O R T
F I R S T B A N K | L O C A L A D V I S O R Y B O A R D S
14 | N O B E T T E R P L A C E T O B E
ALBEMARLE & RICHFIELDBradford BarringerRichard Clayton Sr.Tony DennisRuby FraleyWilliam HarveyAngela KrolTony LowderDean MartinDavid MullisG. T. Rabe Jr. APEXWilliam GordonJack HunterKarl LackMilton Rogers Jr. ASHEBOROBrooks HedrickKennan HillGilbert IngoldCharles SwiersBillie WilsonBobby Wright BISCOE & CANDORRalph BosticKristy GarnerLarry PreslarTim PrivettVance RichardsonHarold VanDerveer Jr.BROADWAYDonald Andrews Jr.Cecil CameronHenry GreenDonny HunterMatthew JacksonFrank McDonaldKatherine TaylorGary Thomas BRUNSWICK COUNTY (serves Shallotte and Ocean Isle)David KestersonBrad MickleJeffrey MillikenWilliam Smith CHERAW (serves Cheraw and Florence)Robert Bennett Jr.William ButlerJames Crawford IIIHenry Duvall IVMalloy Evans Jr.John LongHerbert Watts DENTONStan BinghamJack BriggsDelbert CranfordLeroy HinesleyPeggy (Dixie) KearnsWanona Smith DILLON COUNTY, SC (serves Dillion and Latta)Carroll AllenGerald Arnette Jr.Walton BrownMcKethan GaddyLafon Legette Jr.Douglas LynnMendel SmithLewis SteppCharles Vance IIIDUPLIN COUNTY (serves Kenansville, Rose Hill and Wallace)Glenn BattenDennis BeasleyAlice BrownRonald CollierRobert Frederick IIJonathan FussellJimmy JacksonRoss PowellLawrence RouseJoseph WallaceKevin Wilson FAIRMONTJames CappsWilliam Greene Jr.Hal Herring Jr.Frank McCreeRonald NyeIsiah TaylorVayda Taylor HARMONYL. A. Anderson Jr.Norman DudleyJo Ellen FoxRobert MooreTeresa Sherrow HARNETT COUNTY (serves Anderson Creek, Angier and Lillington )David AvretteEdgar BainJames BlaylockJames BurginDonald GregoryCharles GriffinDan HoneycuttReginald KellyHarold LassiterEdgar Smith Jr.Thomas StancilStamey TaylorDonald Ray TurlingtonCharles Wellons IIRay Womble Jr.Robert WombleThomas WombleThomas Wood 2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
N O B E T T E R P L A C E T O B E | 15
HIGH POINT & ARCHDALEDwight BumgarnerCaroline BurnettMichael ByrdSteve FoleyJack HendrixRyan HoskinsWarren LackeyClayton Miller Jr.Jerry OcheltreeWalter StanleyJordan WashburnJoseph Youngblood KANNAPOLISDallas CampbellMichael HurlbertJeff IsenhourRosena JohnsonBillie OvercashWayne PetreaMelvin RapeReginald Smith LOCUST & POLKTONBetty EskridgeGerald FriedmanDakeita Vanderburg-HortonTimothy HuieLeon HuneycuttRichard JonesJerry JordanAdrian MarbryRobert McCoyPeggy MorganRonald Turner LUMBERTONHerman ChavisMichael HardinEdward HickmanStaley JacksonNancy JessupSusie JonesLacy Koonce Jr.Evelyn PriceBhagirath ShahMAYODANClaude HopperLonnie SechristDennis SparksFrank Vaughn Steve Wall MOORESVILLEJanet AbernethyClyde HowardDean SteinPaul TaylorKevin Vanhoy MT. PLEASANTZeba BarringerRichard Clayton Sr.Max CruseDoris FurrLee KluttzRick LambertDavid LockhartDavid PreddyKay Scott NEW HANOVER COUNTY(serves Leland and Wilmington)Dawn CarterDonna GurganusDavid HoneycuttGerald KinlawBrad MickleDonnie NorrisChad PearsonMatt ScharfWilliam Stanfield IIIShelly WagnerHarold Wells IVNORTH MOORE (serves Bennett, Carthage, Robbins, Seagrove and Seven Lakes)Tammy BarnettStan BeckChristopher BradyFrances CagleWyanne CavinessJohn Frye Sr.James GarnerJohn GarnerRobin GarnerRebecca GilmoreKenneth HillPhyllis LawrenceBernard Routh PEMBROKETimothy BrooksRonald BrownMichael HardinDiane JonesCynthia LocklearEddie Mac LocklearWilliam Oxendine PITTSBOROWilliam ArthursDeborah BrownJoe BurkeFaye Dark David FousheeLinda HarrisJames NordanHazel PuckettRalph RiddleRouse Wilson 2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
F I R S T B A N K | L O C A L A D V I S O R Y B O A R D S
16 | N O B E T T E R P L A C E T O B E
ROCKINGHAMGeorgia CagleJim CoxJuanita CoxBryan LeggettJimmy MaskeJesse Spencer SALISBURYJanet AbernethyBradley BostDonald Bost Sr.Millie CressWilliam FurrDarrell HancockWilliam MasonJohn PorterRachel RossHarry Welch Jr.Jane Welch SANFORDRex BrownStewart ForbesDavid FousheeTeresa NixonDonald OldhamGeorge Perkins Jr.Ronald PerkinsonHal PerryAngela PooleLloyd Tice Jr.James WickerClement WilliamsJeffrey Yow SCOTLAND COUNTY (serves Laurel Hill, Laurinburg and Maxton)Clifton BuieDavid BurnsPaul DavisRonald GibsonT. G. Gibson IIIBetty HastyR. M. HendersonHyder Massey Jr.Charles Nichols Jr.Jimmy PreslarFrank Roofe IIIMichael VinsonMark WardAndrew Williamson Jr. SOUTH MOORE (serves Aberdeen, Pinebluff, Pinehurst, Southern Pines and Vass)Allan BeckHugh BinghamCharles BoyerE. E. BraffordJohn BurnsFelton CapelHenry Clayton Lori FosterBob FriesenPhilip FulghumJames GarnerRoger GentryStewart McFadyenMichael McMillanCharles McWilliamsMalcolm OwingsGeorge ParkerWilliam SamuelsRobert SpringerEdward Taws Jr.Lynette Williams ST. PAULS Tim FergusonClaude Fulghum Jr.Fred Gibson Jr.Teresa KashnerJohn OdumLloyd Williams THOMASVILLEThomas BallardJosephine CitrinHenry DarrJames Hudson Jr.John HunnicuttStuart KennedyEsmail Nikouyeh Milton Riley Jr.Michael SandersWilliam SlateJohn Todd TROYDavid BrittHilton Cochran Sr.Winston Dozier Jr.Rick HarrisJerry HolderRosemary HuntleyWilliam ManessBobby MorrisJimmy Preslar 2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
F I R S T B A N K O F V I R G I N I A
N O B E T T E R P L A C E T O B E | 17
COMMUNITY SERVICE ADVISORY BOARDFelton Capel, ChairmanJanet AbernethyRalph BosticFlorence BrownDavid BrutonJesse CapelRichard Clayton Sr. David FousheeJames GarnerRoger GentryJim GrubbsMichael HardinAndres HernandezTravis JacksonDiane JonesJohn LongLouise MackRoxanne MclverBrad MickleAnn MoffittTeresa NixonJerry OcheltreeJimmy PreslarWilliam RobertsStamey TaylorCharles Vance IIIChanaka Yatawara PRIMER BANCO ADVISORY BOARDDavid BrutonHeriberto Corral-LopezVictor DauAndres HernandezJorge Antonio Mendez- ContrerasJimmy PreslarDaniel RezaIrma RobledoIsai RobledoLuis RodriguezRicardo RomeroMatthew RothbeindJoe YoungbloodLOCAL ADVISORY BOARDSABINGDONJanet BerryJohn CarricoSusan ForknerJim GrubbsAndrew HargrovesJ. W. Kiser RADFORDWilliam Bishop Jr.Darryl GillespieFlorine GrahamBrad HarveyJeffrey IrbyJeffrey Price WYTHEVILLEDavid CarpenterRobert Fowlkes Jr.Jim GrubbsGeorge Johnstone Sr.Stanly King Jr. Lanny LindamoodThomas LovelaceJerry OcheltreeCarolyn RudzinskiBarbara ShannonAmanda Brewer-SmithPhyl SnappCharles Stanley III 2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
F I R S T B A N C O R P & S U B S I D I A R I E S
F I R S T B A N C O R P
341 N. Main Street
Troy, NC 27371-0508
Subsidiaries of First Bancorp
F I R S T B A N K
341 North Main Street
Troy, NC 27371-0508
M O N TG O M E R Y D ATA
S E R V I C E S , I N C .
355 Bilhen Street
Troy, NC 27371-0627
Subsidiary of First Bank
F I R S T B A N K I N S U R A N C E
S E R V I C E S , I N C .
580 South West Broad Street
Southern Pines, NC 28388
1030 Albemarle Road
Troy, NC 27371
David L. Burns
Chairman
Thomas F. Phillips
Chairman
Jerry L. Ocheltree
President and Chief
Executive Officer
Jerry L. Ocheltree
President and Chief
Executive Officer
Virginia C. Thomasson
Chairman
David G. Grigg
President
Fred M. Thompson
Senior Vice President
Bradley Ferree
IT Network Officer
A. Jordan Washburn
Chairman
Jerry L. Ocheltree
President
Phyllis A. Stevenson
Assistant Vice President
Stuart F. Fields
Vice President
Jeffrey A. Morris
Vice President
Bobby R. Morris
Assistant Vice President
L to R, Virginia C. Thomasson, Chairman, Montgomery Data Services, Inc., A. Jordan Washburn, Chairman,
First Bank Insurance Services, Inc., Jerry L. Ocheltree, President and CEO, First Bancorp and First Bank,
18 | N O B E T T E R P L A C E T O B E
18 | N O B E T T E R P L A C E T O B E
David L. Burns, Chairman, First Bancorp, and Thomas F. Phillips, Chairman, First Bank
2 0 0 8 A N N U A L R E P O R T
F I N A N C I A L S U M M A R Y
The following is a brief summary of our
interest income when comparing 2008 to 2007.
financial results for 2008. The final paragraph
Net interest income amounted to $86.6 million
on page 20 contains information on where to
in 2008, a 9.2% increase from 2007. Also, during
find a more detailed analysis.
the second, third and fourth quarters of 2008, we
Our net income for 2008 was $22.0 million,
or $1.37 per diluted share, compared to net
income of $21.8 million, or $1.51 per diluted
recorded non-cash net interest income purchase
accounting adjustments related to the Great Pee
Dee acquisition totaling $366,000 in each quarter,
share, reported for 2007, a decrease of 9.3% in
which increased net interest income. The largest
earnings per share. The decline in earnings per
of the adjustments relates to recording the Great
share was primarily due to a higher provision
Pee Dee time deposit portfolio at fair market
for loan losses associated with a decline in
value. This adjustment was $1.1 million and is
asset quality and a lower net interest margin
being amortized to reduce interest expense over
largely caused by the sharp decrease in interest
a total of eleven months, or $100,000 per month,
rates that occurred during the year.
until March 2009.
The 2008 earnings reflect the impact of the
The impact of the growth in loans and
acquisition of Great Pee Dee Bancorp, which
deposits on net interest income was partially
had $213 million in total assets as of the
offset by a decline in our net interest margin
acquisition date of April 1, 2008, and resulted
(tax-equivalent net interest income divided by
in the issuance of 2,059,091 shares of First
average earning assets). Our net interest margin
Bancorp common stock.
Key performance ratios for 2008 include:
• Return on average assets of 0.89%
• Return on average equity of 10.44%
• Net charge-offs to average loans of 0.24%
for 2008 was 3.74% compared to 4.00% for
2007. Our net interest margin was negatively
impacted by the Federal Reserve lowering
interest rates by a total of 500 basis points from
September 2007 to December 2008. When
interest rates are lowered, our net interest
• Nonperforming assets to total assets at
margin declines, at least temporarily, as most
period end of 1.29%
of our adjustable rate loans reprice downward
Total assets at December 31, 2008 amounted
immediately, while rates on our customer
to $2.8 billion, 18.7% higher than a year earlier.
time deposits are fixed, and thus do not adjust
Total loans at December 31, 2008 amounted
downward until they mature.
to $2.2 billion, a 16.7% increase from a year
earlier, and total deposits amounted to $2.1
During the fourth quarter of 2008, the
Federal Reserve announced a series of interest
billion at December 31, 2008, a 12.9% increase
rate cuts – a 50 basis point cut on October 8,
from a year earlier. A significant portion of
the 2008 growth was due to the acquisition
of Great Pee Dee Bancorp, which had $184
million in loans, $148 million in deposits, and
$211 million in assets on the merger date.
2008, another 50 basis point cut on October 30,
2008, and a 75 basis point cut on December 16,
2008, bringing interest rates to historic lows.
As a result of these interest rate cuts, our net
interest margin of 3.70% realized for the fourth
The growth in loans and deposits was the
quarter of 2008 was a nine basis point decrease
primary reason for the increase in our net
from the margin realized in the third quarter
N O B E T T E R P L A C E T O B E | 19
N O B E T T E R P L A C E T O B E | 19
2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
F I N A N C I A L S U M M A R Y ( C O N T. )
of 2008. As a continuing result of these rate
growth, including the April 1, 2008 acquisition
cuts, we expect that our net interest margin will
of Great Pee Dee. Additionally, we recorded
decline further in the first quarter of 2009.
FDIC insurance expense of $1,154,000 in 2008
Our provision for loan losses for 2008 was
$9,880,000 compared to $5,217,000 recorded in
2007. The higher provision in 2008 was primarily
related to negative trends in asset quality.
Although we have no sub-prime exposure,
the current economic environment has
resulted in an increase in our delinquencies
and classified assets. At December 31, 2008,
our nonperforming assets were $35.4 million
compared to $10.8 million at December 31,
2007. Our nonperforming assets to total
assets ratio was 1.29% at December 31, 2008
compared to 0.47% at the previous year end.
Our ratio of net charge-offs to average loans
was 0.24% in 2008 compared to 0.16% for 2007.
Although our asset quality ratios discussed
above reflect unfavorable trends, they compare
favorably to those typical of our peers based
on public information available.
Noninterest income for 2008 amounted to $21.1
million, a 14.3% increase over 2007. The positive
variance primarily relates to increases in service
charges on deposit accounts. These higher
service charges were primarily associated with
the expansion of the availability of the customer
overdraft protection program in the fourth quarter
of 2007 to include debit card purchases and ATM
withdrawals. Previously the overdraft protection
program, in which we charge a fee for honoring
payments on overdrawn accounts, only applied
to written checks.
compared to $100,000 in 2007 as a result of the
FDIC recently beginning to charge for FDIC
insurance again. Based on recently published
FDIC guidance, our annual FDIC insurance
expense is expected to increase by $1.8 million
in 2009. In addition to the higher annual
premiums for 2009, on February 27, 2009 the
FDIC announced plans to charge a special
one-time assessment to all banks in the second
quarter of 2009 in order to replenish its reserves.
Unless the proposal is changed, the special
assessment is expected to amount to $4 million
for our company. Also, based on preliminary
actuarial reports, we expect our pension expense
to increase by $1.3 million in 2009, primarily as
a result of investment losses experienced by the
pension plan’s assets in 2008.
During both 2007 and 2008, our effective
tax rate was approximately 37%-38%.
The foregoing discussion and financial
information in this report is only intended to
provide a general overview of our financial
position and results of operations. In order
to fully analyze and understand our financial
position and results of operations, you’ll want
to review the Form 10-K, which includes
Management’s Discussion and Analysis. For
shareholders, the Form 10-K is being mailed
with this report. For other interested parties,
you can access our Form 10-K through the
Company’s website at www.FirstBancorp.com or
through the SEC EDGAR database at www.sec.
Noninterest expenses for 2008 amounted
gov or if you’d prefer, contact investor relations
to $62.7 million, an 8.8% increase from 2007.
at First Bancorp - you’ll find contact information
This increase is primarily attributable to our
on the inside of the back cover.
20 | N O B E T T E R P L A C E T O B E
20 | N O B E T T E R P L A C E T O B E
2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
S E L E C T E D C O N S O L I D AT E D F I N A N C I A L D ATA
($ in thousands, except per share data)
Year Ended December 31,
2008
2007
2006
2005
2004
I N C O M E S TAT E M E N T D ATA
Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision
Noninterest income
Noninterest expense
Income before income taxes
Income taxes
Net income
Earnings per share – basic
Earnings per share – diluted
Shares outstanding – basic
Shares outstanding – diluted
P E R S H A R E D ATA
Cash dividends declared
Dividend payout ratio
Market price
High
Low
Close
Stated book value
Tangible book value
$ 147,862
61,303
86,559
9,880
76,679
21,107
62,661
35,125
13,120
$ 22,005
148,942
69,658
79,284
5,217
74,067
18,473
57,580
34,960
13,150
21,810
1.38
1.37
1.52
1.51
129,207
54,671
74,536
4,923
69,613
14,310
53,198
30,725
11,423
19,302
1.35
1.34
101,429
32,838
68,591
3,040
65,551
15,004
47,636
32,919
16,829
16,090
1.14
1.12
81,593
20,303
61,290
2,905
58,385
15,864
43,717
30,532
10,418
20,114
1.42
1.40
15,980,533 14,378,279
14,468,974
16,027,144
14,294,753
14,435,252
14,165,992
14,360,032
14,138,513
14,395,152
$ 0.76
55.07%
0.76
50.00%
0.74
54.81%
0.70
61.40%
0.66
46.48%
$ 20.86
11.25
18.35
13.27
9.18
26.72
16.40
18.89
12.11
8.56
S E L E C T E D B A L A N C E S H E E T D ATA ( AT Y E A R E N D )
Total assets
Loans
Allowance for loan losses
Intangible assets
Deposits
Shareholders’ equity
$ 2,750,567
2,211,315
29,256
67,780
2,074,791
219,868
2,317,249
1,894,295
21,324
51,020
1,838,277
174,070
S E L E C T E D AV E R A G E B A L A N C E S
Assets
Loans
Earning assets
Deposits
Interest-bearing liabilities
Shareholders’ equity
$2,484,296
2,117,028
2,329,025
1,985,332
2,019,256
210,810
2,139,576
1,808,219
1,998,428
1,780,265
1,726,002
170,857
23.90
19.47
21.84
11.34
7.76
2,136,624
1,740,396
18,947
51,394
1,695,679
162,705
1,922,510
1,623,188
1,793,811
1,599,575
1,537,385
163,193
27.88
19.32
20.16
10.94
7.48
29.73
18.47
27.17
10.54
7.04
1,801,050
1,482,611
15,716
49,227
1,494,577
155,728
1,638,913
1,367,053
14,717
49,330
1,388,768
148,478
1,709,380
1,422,419
1,593,554
1,460,620
1,359,744
154,871
1,545,332
1,295,682
1,434,425
1,306,404
1,232,130
146,683
A S S E T Q U A L I T Y R AT I O S
Net charge-offs to average loans
Nonperforming loans to total loans at year end
Nonperforming assets to total assets at year end
Allowance for loan losses to total loans at year end
Allowance for loan losses to nonperforming
0.24%
1.38%
1.29%
1.32%
0.16%
0.41%
0.47%
1.13%
0.11%
0.39%
0.39%
1.09%
0.14%
0.11%
0.17%
1.06%
0.14%
0.27%
0.32%
1.08%
loans at year end
95.62%
272.93%
276.11%
950.76%
395.19%
P E R F O R M A N C E A N D O T H E R R AT I O S
Return on average assets
Return on average equity
Net interest margin (taxable equivalent basis)
Efficiency ratio (taxable equivalent basis)
Shareholders’ equity to total assets at year end
Tangible common equity to tangible assets at year end
Loans to deposits at year end
0.89%
10.44%
3.74%
57.85%
7.99%
5.67%
106.58%
1.02%
12.77%
4.00%
58.57%
7.51%
5.43%
103.05%
1.00%
11.83%
4.18%
59.54%
7.62%
5.34%
102.64%
0.94%
10.39%
4.33%
56.68%
8.65%
6.08%
99.20%
1.30%
13.71%
4.31%
56.32%
9.06%
6.24%
98.44%
N O B E T T E R P L A C E T O B E | 21
2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
C O N D E N S E D C O N S O L I D AT E D B A L A N C E S H E E T S
($ in thousands)
A S S E T S
Cash and due from banks, noninterest bearing
Due from banks, interest bearing
Federal funds sold
Total cash and cash equivalents
Securities
Presold mortgages in process of settlement
Loans
Less: Allowance for loan losses
Net loans
Premises and equipment
Accrued interest receivable
Intangible assets
Other
Total assets
L I A B I L I T I E S
Deposits: Demand
Savings, NOW, and money market
Time deposits of $100,000 or more
Other time deposits
Total deposits
Repurchase agreements
Borrowings
Other liabilities
Total liabilities
S H A R E H O L D E R S ’ E Q U I T Y
Common stock
Retained earnings
Accumulated other comprehensive income (loss)
Total shareholders’ equity
Total liabilities and shareholders’ equity
December 31,
2008
2007
$ 88,015
105,191
31,574
224,780
187,183
423
2,211,315
(29,256)
2,182,059
52,259
12,653
67,780
23,430
$2,750,567
$ 229,478
664,754
592,192
588,367
2,074,791
61,140
367,275
27,493
2,530,699
96,072
131,952
(8,156)
219,868
$2,750,567
31,455
111,591
23,554
166,600
151,754
1,668
1,894,295
(21,324)
1,872,971
46,050
12,961
51,020
14,225
2,317,249
232,141
558,393
479,176
568,567
1,838,277
39,695
242,394
22,813
2,143,179
56,302
122,102
(4,334)
174,070
2,317,249
22 | N O B E T T E R P L A C E T O B E
2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
C O N D E N S E D C O N S O L I D AT E D S TAT E M E N T S O F I N C O M E
($ in thousands, except per share data)
I N T E R E S T I N C O M E
Interest and fees on loans
Interest on investment securities
Other, principally overnight investments
Total interest income
I N T E R E S T E X P E N S E
Savings, NOW and money market
Time deposits of $100,000 or more
Other time deposits
Borrowings and repurchase agreements
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
N O N I N T E R E S T I N C O M E
Service charges on deposit accounts
Other service charges, commissions and fees
Fees from presold mortgage loans
Commissions from sales of investment products
Data processing fees
Securities gains (losses)
Other gains (losses)
Total noninterest income
N O N I N T E R E S T E X P E N S E S
Personnel expense
Occupancy and equipment related expense
Intangibles amortization
Other operating expenses
Total noninterest expenses
Income before income taxes
Income taxes
Net income
E A R N I N G S P E R S H A R E :
Basic
Diluted
Weighted average common shares outstanding:
Basic
Diluted
Year Ended December 31,
2007
2006
2008
$138,878
7,973
1,011
147,862
9,736
21,308
22,197
8,062
61,303
86,559
9,880
76,679
13,535
4,842
869
1,552
167
(14)
156
21,107
35,446
8,280
416
18,519
62,661
35,125
13,120
$22,005
139,323
7,014
2,605
148,942
10,368
22,687
26,498
10,105
69,658
79,284
5,217
74,067
9,988
5,158
1,135
1,511
204
487
(10)
18,473
33,670
7,604
374
15,932
57,580
34,960
13,150
21,810
120,694
6,231
2,282
129,207
7,094
17,662
21,276
8,639
54,671
74,536
4,923
69,613
8,968
4,578
1,062
1,434
162
205
(2,099)
14,310
30,678
6,866
322
15,332
53,198
30,725
11,423
19,302
$1.38
1.37
1.52
1.51
1.35
1.34
15,980,533
16,027,144
14,378,279
14,468,974
14,294,753
14,435,252
N O B E T T E R P L A C E T O B E | 23
2 0 0 8 A N N U A L R E P O R T
I N D E P E N D E N T A U D I TO R S ’ R E P O R T
R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M
The Board of Directors
First Bancorp and Subsidiaries:
We have audited in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the consolidated balance sheets of First Bancorp and Subsidiaries as of
December 31, 2008 and 2007, and the related consolidated statements of income, comprehensive
income, shareholders’ equity and cash flows for each of the years in the three-year period ended
December 31, 2008 (not presented herein), and in our report dated March 10, 2009, we expressed
an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated balance
sheets and condensed consolidated statements of income (included on pages 22 and 23 herein) is
fairly stated, in all material respects, in relation to the consolidated financial statements from which
it has been derived.
Charlotte, North Carolina
March 10, 2009
F O R WA R D L O O K I N G S TAT E M E N T S
The discussions in this annual report contain statements that could be deemed 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,” 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 Company’s customers, the Company’s 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 Company’s most recent report on Form 10-K.
24 | N O B E T T E R P L A C E T O B E
2 0 0 8 A N N U A L R E P O R T
2 0 0 8 A N N U A L R E P O R T
S H A R E H O L D E R I N F O R M AT I O N
C O R P O R A T E O F F I C E
S H A R E H O L D E R S E R V I C E S
341 North Main Street
P. O. Box 508
Troy, NC 27371
910-576-6171
800-548-9377
Fax 910-576-0662
www.FirstBancorp.com
I N D E P E N D E N T A U D I T O R S
Elliott Davis, PLLC
Charlotte, NC
C O R P O R A T E C O U N S E L
Robinson, Bradshaw & Hinson, PA
Charlotte, NC
T R A N S F E R A G E N T
Registrar & Transfer Co., Inc.
10 Commerce Drive
Cranford, NJ 07016-3572
800-368-5948
www.rtco.com
S H A R E H O L D E R S ’ M E E T I N G
The Annual Meeting of Shareholders will be held
on May 7, 2009 at 3:00 PM at the James H. Garner
Conference Center, 211 Burnette Street, Troy,
North Carolina.
C O M M O N S T O C K I N F O R M A T I O N
The Company’s common stock is traded on the
NASDAQ Global Select Market under the symbol
FBNC. There were 16,573,826 shares outstanding
as of December 31, 2008 with 2,747 shareholders
of record and approximately 4,000 additional
shareholders that held their shares in “street name.”
First Bancorp now offers online access to your
First Bancorp Stock Account, including your
account balance, certificate history, dividend
reinvestment plan information and more. Choose
Investor Relations at www.FirstBancorp.com and
select Shareholder Login.
First Bancorp now offers online access to all
financial publications, including annual reports and
quarterly reports filed with the Securities and
Exchange Commission, at www.FirstBancorp.com.
Choose Investor Relations and select SEC Filings.
For more information or shareholder assistance,
call us toll-free at 800-548-9377 and ask for
Shareholder Services.
C O P I E S O F F O R M 1 0 - K
Copies of the First Bancorp Annual Report on Form
10-K filed with the Securities and Exchange Commission
may be obtained at no cost by contacting:
Investor Relations
Anna Hollers
P. O. Box 508
Troy, NC 27371-0508
800-548-9377
or
by visiting our corporate website at
www.FirstBancorp.com
D I V I D E N D R E I N V E S T M E N T
Registered holders of First Bancorp stock are
eligible to participate in the Company’s Dividend
Reinvestment Plan, a convenient and economical
way to purchase additional shares of First
Bancorp common stock without payment of
brokerage commissions. For an information folder
and authorization form, or to receive additional
information on this plan, contact:
D I R E C T D E P O S I T
I N V E S T O R R E L A T I O N S
With Direct Deposit, shareholders may enjoy the
convenience of having dividends directly deposited
into their checking or savings account. There is
no cost for this service. Shareholders may obtain
further information about Direct Deposit by calling
us toll-free at 800-548-9377 and asking
for Shareholder Services.
Anna Hollers
Investor Relations
800-548-9377
or
Registrar & Transfer Co., Inc.
Dividend Reinvestment Section
10 Commerce Drive
Cranford, NJ 07016-3572
800-368-5948 or info@rtco.com
N O B E T T E R P L A C E T O B E | 25
FIRST BANCORP
N O BET TER PLACE TO B E
341 NORTH MAIN STREET
POST OFFICE BOX 508
TROY, NC 27371-0508
WWW.FIRSTBANCORP.COM