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Investing.com - Keefe, Bruyette & Woods raised its price target on First Bancorp (NASDAQ:FBNC) to $53.00 from $50.00 on Friday, while maintaining an Outperform rating on the stock.
The firm cited First Bancorp’s second-quarter 2025 operating results, which exceeded both KBW and consensus expectations, primarily due to better net interest income and provisioning. The bank’s net interest margin increased 7 basis points from the previous quarter to 3.33%. According to InvestingPro data, the company is expected to maintain its profitability trajectory, with analysts forecasting continued net income growth this year.
KBW noted that First Bancorp’s net interest margin should continue to move higher based on asset repricing and incremental growth. End-of-period loans were up 6% on a linked-quarter annualized basis, with the bank expressing optimism about sustaining this growth inflection through the second half of 2025.
The research firm highlighted First Bancorp’s strong CET1 ratio of 14.6%, which it described as a meaningful lever for pushing forward earnings per share higher. Based on these factors, KBW increased its 2025 and 2026 EPS estimates to $3.75 and $4.10, respectively.
First Bancorp is a financial holding company headquartered in Southern Pines, North Carolina, providing banking services through its wholly-owned subsidiary, First Bank (NASDAQ:FRBA). InvestingPro analysis suggests the stock is slightly undervalued at current levels, with additional insights available through the premium service.
In other recent news, First Bancorp announced an increase in its quarterly cash dividend to $0.23 per share, up from $0.22, with the dividend payable on July 25, 2025, to shareholders of record as of June 30, 2025. Additionally, Piper Sandler initiated coverage on First Bancorp with a Neutral rating and set a price target of $48. Analyst Stephen Scouten noted the bank’s potential for organic growth and mergers and acquisitions, alongside its consistent credit performance and ability to expand net interest margin. In leadership changes, First Bank appointed Larry Jackson as the new Chief Credit Officer, bringing over two decades of experience in credit risk management.
The annual shareholder meeting resulted in the election of 11 directors, the ratification of Crowe, LLP as independent auditors, and approval of executive compensation. Keefe, Bruyette & Woods projected First Bancorp to achieve a 5-6% organic growth rate in 2025, with expectations for growth to accelerate in 2026. The company is positioned for higher growth alongside other regional banks in the Southeast, amid broader economic uncertainties. These developments indicate First Bancorp’s strategic moves to maintain and potentially enhance its market position.
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