Assessing First Bancorp (FBNC) Valuation After Strong 2025 Earnings And Profitability Gains

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First Bancorp (FBNC) has drawn fresh attention after releasing fourth quarter and full year 2025 results, with higher net interest income, net income, and earnings per share shaping the latest view of the bank’s performance.

For the fourth quarter, First Bancorp reported net interest income of US$106.2 million and net income of US$15.71 million, with basic and diluted earnings per share from continuing operations at US$0.38.

Across 2025, net interest income was US$398.25 million and net income reached US$111.05 million, with basic and diluted earnings per share from continuing operations of US$2.68 for the year.

See our latest analysis for First Bancorp.

Those results sit alongside a 30 day share price return of 16.58% and a 90 day share price return of 24.24%. The 1 year total shareholder return of 41.90% and 5 year total shareholder return of 94.55% point to momentum that has built over time rather than just around this quarter.

If earnings strength at a regional bank has your attention, it can be a good moment to widen your research and check out other solid balance sheet and fundamentals stocks screener (None results).

With the share price up strongly and the stock trading only about 1% below the US$61.60 analyst target, yet screening at roughly a 36% intrinsic discount, is there still a buying opportunity here or is the market already pricing in future growth?

On simple earnings terms, First Bancorp’s P/E of 22.8x sits well above both its own estimated fair level and the broader US Banks peer group. This suggests the market is paying a premium for each dollar of earnings at the current $60.95 share price.

The P/E ratio compares the share price to earnings per share and is a quick way to see how much investors are paying for current profits. For a bank like First Bancorp, it often reflects what the market is expecting from future earnings and return on equity, as well as how comfortable investors feel about the quality and stability of those earnings.

Here, the 22.8x P/E is higher than the estimated “fair” P/E of 16.3x, a level the market could potentially move toward if sentiment or expectations cool. It is also higher than both the peer average of 11.8x and the broader US Banks industry average of 12.1x, which points to a clear valuation premium compared to similar companies.

Explore the SWS fair ratio for First Bancorp

Result: Price to earnings of 22.8x (OVERVALUED)

However, that premium P/E and the stock’s strong 1 year and 5 year returns leave less room for disappointment if earnings or sentiment weaken from this point.

Find out about the key risks to this First Bancorp narrative.

The earnings based P/E of 22.8x flags First Bancorp as expensive, but our DCF model points in the opposite direction. On that view, the shares at $60.95 sit about 35.6% below an estimated fair value of $94.71, which sounds more like a potential opportunity than a premium. So which story do you trust?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out First Bancorp for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 878 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If this take does not line up with your own view, or you prefer to test the numbers yourself, you can build a custom thesis in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding First Bancorp.

You have already done the hard work understanding First Bancorp, so do not stop here when a wider set of ideas could help sharpen your next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FBNC.

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