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Investing.com - Stephens raised its price target on First Bancorp (NASDAQ:FBNC) to $57.00 from $53.00 on Monday, while maintaining an Overweight rating on the stock. The bank, currently valued at $2.08 billion, is trading near its 52-week high with a P/E ratio of 19.99. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value estimates.
The price target increase follows First Bancorp’s quarterly results, which showed core pre-provision net revenue (PPNR) of $52.3 million, exceeding consensus estimates by $0.05 per share. The outperformance was driven by stronger net interest income, higher fees, and lower expenses. The bank has maintained dividend payments for 39 consecutive years, currently offering a 1.84% yield.
First Bancorp reported a net interest margin of 3.32%, expanding 5 basis points quarter-over-quarter and surpassing the Street’s expectation of 3.28%. Stephens expects the margin to continue improving due to favorable asset repricing dynamics. InvestingPro data shows strong returns over both recent months and the past decade, with additional metrics available to subscribers.
End-of-period loan growth reached 6.1% on an annualized basis, primarily in commercial lending, exceeding both consensus estimates and Stephens’ expectation of 4.5%. The firm anticipates continued momentum throughout 2025, projecting mid-single-digit growth supported by recent commercial and industrial lender additions.
Asset quality trends remained stable and below peer levels, while the bank maintains excess reserves at 1.47% and a CET-1 capital ratio of 14.6%. Based on these factors, Stephens raised its 2025 and 2026 PPNR estimates by 3.3% and 5.5%, respectively.
In other recent news, First Bancorp reported second-quarter 2025 operating results that surpassed expectations, driven by improved net interest income and provisioning. The bank’s net interest margin increased by 7 basis points to 3.33%, according to Keefe, Bruyette & Woods (KBW), which subsequently raised its price target for First Bancorp to $53 from $50 while maintaining an Outperform rating. Additionally, First Bancorp announced an increase in its quarterly cash dividend to $0.23 per share, payable on July 25, 2025, to shareholders of record as of June 30, 2025. In terms of leadership changes, Larry Jackson was appointed as the new Chief Credit Officer, bringing over two decades of experience from his previous role at PNC. Piper Sandler initiated coverage on First Bancorp with a Neutral rating and a price target of $48, noting the bank’s ability to expand its net interest margin and its potential for organic growth and mergers and acquisitions. Analyst Stephen Scouten from Piper Sandler highlighted the bank’s strong management team and consistent credit performance. Furthermore, KBW projects that First Bancorp will achieve significant growth in 2026, forecasting an 8% growth rate. These developments reflect First Bancorp’s strategic positioning and operational strengths in the current financial landscape.
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