First Bancorp (FBNC) Stock Forecast & Price Target

First Bancorp demonstrated a positive financial performance in the latest quarter, with a notable increase in the net interest margin (NIM) to 2.87%, surpassing expectations and indicating potential for further improvement in the upcoming quarter. The bank's strong deposit growth of 7% quarter-over-quarter, coupled with effective management of borrowings and brokered deposits, contributed to an enhanced core funding base and overall financial stability. Additionally, the bank is well-positioned for future growth, with avenues for increasing earnings per share (EPS) and return on assets (ROA) through cost management, loan growth, and rising fee income.

First Bancorp is projected to experience a decline in loan growth, with expectations adjusted to 3% as compared to the previously anticipated 6% annualized growth rate. The loan-to-deposit ratio has decreased to 77%, indicating a potential liquidity challenge amid a persistently difficult banking sector, characterized by net interest income pressures that are adversely affecting earnings per share estimates. Although credit quality metrics such as net charge-offs and non-performing assets appear stable, the overall financial outlook remains negative due to ongoing valuation concerns and subdued investor sentiment.