First Bancorp reported fourth quarter 2024 net income of $3.6 million, or $0.08 diluted EPS, and full year 2024 net income of $76.2 million, or $1.84 diluted EPS. These results include the $13.4 million impact from Hurricane Helene and a $36.8 million securities loss from a strategic earn-back transaction. Adjusted net income for Q4 2024 was $31.7 million, or $0.76 adjusted diluted EPS, showing an increase from the linked quarter's adjusted results.
The company executed a significant securities loss-earnback transaction during the fourth quarter, selling $280 million of available-for-sale securities bearing 1.56% at a loss of approximately $36.8 million. Concurrently, the company invested $495 million in available-for-sale securities bearing a significantly higher yield of 5.27%. This strategic move is designed to enhance future net interest income and net interest margin.
Net interest income for the fourth quarter increased 7.0% to $88.8 million from $83.0 million in the linked quarter, driven by the increased yield on the securities portfolio and the company's focused efforts to manage deposit costs. The tax-equivalent net interest margin expanded by 17 basis points to 3.07%. The provision for credit losses significantly decreased to $0.5 million from $14.2 million in the prior quarter.
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