Profit Fan

First Bancorp: Too Much Risk For My Blood

First Bancorp (NASDAQ:FBNC) is a North Carolina bank holding company that primarily focuses on real estate lending. It has $2.85 billion in deposits, $3.28 billion in assets and a tangible book value of $217.12 million ($11.04 per share). As of today, shares trade at a 41.1% premium to tangible book value when the bank's performance, fundamentals and risks all point to a significantly lower valuation.

FBNC Tangible Book Value data by YCharts


FBNC Net Income Quarterly data by YCharts

Along with the same margin compression that all banks have been facing, First Bancorp has been, and continues to deal with problematic levels of nonperforming assets and nonaccrual loans.

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I'd like to point out that...

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