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    How Investors Are Reacting To First Bancorp (FBNC) Joining the S&P Banks Index and Raising Dividends

    Simply Wall St·12/26/2025 02:20:54
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    • Earlier in December 2025, First Bancorp was added to the S&P Banks Select Industry Index, shortly after its Board declared a US$0.23 per-share cash dividend payable on January 25, 2026 to shareholders of record on December 31, 2025.
    • This index inclusion can increase visibility among institutional investors and index-tracking funds, potentially influencing how the market frames First Bancorp’s role within the banking sector.
    • Next, we will examine how First Bancorp’s addition to the S&P Banks Select Industry Index shapes its broader investment narrative and perceived positioning.

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    What Is First Bancorp's Investment Narrative?

    To own First Bancorp, you need to be comfortable with a regional bank that currently trades on a rich earnings multiple, but with analyst forecasts pointing to faster-than-market revenue and earnings growth. The latest index inclusion into the S&P Banks Select Industry Index, coming alongside a steady US$0.23 per-share dividend, should marginally improve liquidity and visibility, yet is unlikely by itself to transform the near term story. The more immediate catalysts still sit around sustaining net interest income momentum and proving that recent earnings growth can be repeated without eroding already modest returns on equity. At the same time, the lack of buyback execution despite an approved US$40,000,000 program, combined with valuation premiums to peers, leaves less room for error if credit quality or margins come under pressure.

    However, one growing concern is how much investors are paying for relatively low returns. Despite retreating, First Bancorp's shares might still be trading 39% above their fair value. Discover the potential downside here.

    Exploring Other Perspectives

    FBNC 1-Year Stock Price Chart
    FBNC 1-Year Stock Price Chart
    Three Simply Wall St Community fair value estimates for First Bancorp span roughly US$54 to US$85, showing how far apart individual views can be. Set that against the current premium price-to-earnings multiples and the same earnings growth expectations from earlier, and you can see why different investors may reach very different conclusions about the bank’s future performance.

    Explore 3 other fair value estimates on First Bancorp - why the stock might be worth as much as 64% more than the current price!

    Build Your Own First Bancorp Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your First Bancorp research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free First Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Bancorp's overall financial health at a glance.

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    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.