First Bancorp Announces Capital Raise and Planned Asset Disposition

     First Bancorp Announces Capital Raise and Planned Asset Disposition

PR Newswire

TROY, N.C., Dec. 21, 2012

TROY, N.C., Dec. 21, 2012 /PRNewswire/ -- First Bancorp (NASDAQ:FBNC), the
parent company of First Bank, has completed a $33.8 million private placement
offering to select institutional investors.

The private placement of stock consisted of an issuance of 2,656,294 shares of
common stock and 728,706 shares of preferred stock, each at the same price of
$10.00 per share. The preferred stock is entitled to the same dividend rate
as common stock and is convertible into common stock, in a like amount, upon
the occurrence of certain transfers of the preferred stock. The per share
price in the transaction is 81% of tangible book value per common share at
September 30, 2012 and 94% of tangible book value per common share as of that
same date after considering the impact of the planned asset dispositions
discussed below. No shareholder vote is required in connection with this
capital raise.

The Company will use the proceeds from the capital raise to strengthen and
remove risk from its balance sheet in anticipation of a planned disposition of
classified loans and write-down of certain real estate assets as discussed

The Company plans to sell approximately $68 million of classified loans in a
transaction expected to occur in early 2013. Additionally, the Company plans
to write down by approximately 20%-30% a portion of its portfolio of
non-covered foreclosed real estate assets that currently totals approximately
$38 million in an effort to allow for the disposal of such properties in an
accelerated time frame. The Company plans to mark down these classified loans
and real estate assets in the fourth quarter of 2012, with the loan sale
expected to be completed in January 2013 and the disposition of the foreclosed
real estate to take place over a longer period.The Company expects these
actions to result in an after-tax charge in the range of $28-$32 million,
which will be recorded in the fourth quarter of 2012.

CEO Richard Moore stated, "This capital raise and accelerated problem asset
disposition are important steps forward for our company. We are now better
positioned to grow and undertake new initiatives."

The following table presents additional information related to the Company and
this announcement.

Financial Information:
 Capital raise transaction                                                                                     $
price                    10.00
 Average closing price of First Bancorp common stock as of day prior to transaction:
 30 day                                                                                                     11.28
 90 day                                                                                                     10.84
 Tangible book value per share – common – as of September 30, 2012            12.35
 Pro forma tangible book value per share – common – as of September 30, 2012                                   10.59
 after effect of assetdisposition charge (mid-point of range)

Reconciliation of Stated Book Value to Pro Forma Tangible Book
Value – Common – After Giving Effect to Asset Disposition Charge

                                                         Dollar Amount –

                                                         In Thousands, except
                                                          per share amounts
At September 30, 2012
Total shareholders' equity                                $   342,790
Less: Preferred stock                                     (63,500)
Less: Intangible assets                                  (69,170)
Tangible book value – common                              $   210,120
Tangible book value per share – common*                   $     12.35
Tangible book value – common                              $   210,120
Less: Estimated impact of asset disposition charge**     (30,000)
Pro forma tangible book value after impact of asset       $   180,120
disposition charge
Pro forma tangible book value per share – common*         $     10.59
* Based on 17,013,008 shares outstanding at September 30, 2012
** Based on mid-point of range provided


The private placement involves the sale of securities in private transactions
that have not been registered under the Securities Act of 1933, as amended,
and will be subject to the resale restrictions under that Act. First Bancorp
has agreed to file a registration statement with the Securities and Exchange
Commission to cover resales of the securities described above. The securities
being sold in the private placement may not be offered or sold absent
registration or an applicable exemption from registration. This news release
does not constitute an offer to sell or a solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state or jurisdiction.

First Bancorp is a bank holding company headquartered in Troy, North Carolina
with total assets of approximately $3.3 billion. Its principal activity is
the ownership and operation of First Bank, a state-chartered community bank
that operates 98 branches, with 82 branches operating in North Carolina, 9
branches in South Carolina and 7 branches in Virginia, where First Bank does
business as First Bank of Virginia. First Bank also has loan production
offices in Greenville, North Carolina and Blacksburg, Virginia. First
Bancorp's common stock is traded on the NASDAQ Global Select Market under the
symbol "FBNC."

Please visit our website at

This press release contains 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,"
"anticipate," 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 annual report on Form 10-K filed with the
Securities and Exchange Commission. Additional factors that may cause
forward-looking statements to differ materially from actual results, include,
without limitation, the following: (i) the Company may not successfully
negotiate and enter into definitive with respect to, and close the, asset
sales or accelerated foreclosed properties dispositions described herein; (ii)
the asset sales or foreclosed properties dispositions may not occur within the
Company's currently expected ranges for price, timing or other terms, and the
pre- or after-tax charges associated with such sales may exceed the pre- or
after-tax charges the Company currently anticipates; and (iii) differences in
the actual amount of asset disposition charges recognized by the Company could
differ materially from the assumptions presented in the financial tables above
and could materially change the calculation of the Company's actual tangible
book value from the pro forma calculations presented in the tables above .
Forward-looking statements speak only as of the date they are made, and the
Company undertakes no obligation to update or revise forward-looking
statements. The Company is also not responsible for changes made to this
press release by wire services, Internet services or other media.

SOURCE First Bancorp

Contact: Elaine Pozarycki, +1-919-834-3090
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