First Bancorp Announces $0.23 Dividend as Share Price Readies for Ex-Dividend Date Impact on 2025-09-30

Introduction

First Bancorp (FBNC) has maintained a consistent dividend policy in recent years, aligning with broader regional bank standards. The company’s latest quarterly dividend of $0.23 per share reflects stable earnings and strong capital generation. With the ex-dividend date set for September 30, 2025, investors are monitoring how the market adjusts the stock price to account for the payout. The current economic environment, marked by cautious credit growth and controlled interest expense, has supported FBNC’s ability to sustain its dividend.

Dividend Overview and Context

A cash dividend of $0.23 per share is a critical signal of a company’s financial health and confidence in its future performance. For FBNC, this represents a manageable payout relative to its net income and earnings per share (EPS). The ex-dividend date, set for 2025-09-30, marks the point at which the stock will trade without the right to the most recent dividend. Historically, the stock price often adjusts downward by approximately the dividend amount on this date, though the backtest suggests a swift and full recovery.

Backtest Analysis

The backtest of FBNC’s dividend events shows strong post-ex-dividend price resilience. Across 11 observed events, the stock demonstrates an average recovery duration of just 0.1 days, with a 91% probability of recovery within 15 days. This fast rebound suggests a high degree of market efficiency and investor confidence in FBNC’s long-term fundamentals.

The methodology assumed a dividend capture strategy over a multi-year period, with reinvestment of dividends into the stock. Key results include minimal drawdowns and a high win rate, reinforcing the effectiveness of this approach with FBNC.

Driver Analysis and Implications

FBNC’s strong operating performance in the latest quarter supports its ability to pay dividends. Total revenue stood at $187.89 million, driven by $160.39 million in net interest income and $27.49 million in noninterest income. The company reported net income of $53.98 million, with $53.60 million attributable to common shareholders.

The payout ratio — while not directly provided — can be inferred to be conservative given the $1.31 EPS and $0.23 dividend per share. This suggests FBNC is maintaining a sustainable payout while retaining capital for growth and risk management. Broader market trends, such as stable credit demand and a controlled interest expense, further support FBNC’s dividend sustainability.

Investment Strategies and Recommendations

For investors, the short-term focus could center on the ex-dividend date and the subsequent price adjustment. Given the historical recovery patterns, a dividend capture strategy may be viable, particularly for those seeking consistent income with low duration risk.

Long-term investors should consider FBNC’s strong earnings performance and capital resilience. With low exposure to volatile sectors and a balanced capital structure, the stock could serve as a reliable addition to a diversified portfolio.

Conclusion & Outlook

First Bancorp’s $0.23 dividend reflects the company’s strong earnings and disciplined capital management. The upcoming ex-dividend date offers a predictable market event with minimal risk, based on the firm's historical performance. Investors should watch for the next earnings report to gauge whether this trajectory continues, with the next quarterly report likely in early October 2025.

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