Item 2.02 - Results of Operations and Financial Condition
On
The news release includes disclosure of net interest income on a tax-equivalent basis, which is a non-GAAP performance measure used by management in operating its business. Management believes that analysis of net interest income on a tax-equivalent basis is useful and appropriate because it allows a comparison of net interest income amounts in different periods without taking into account the different mix of taxable versus non-taxable investments that may have existed during those periods.
The news release also includes disclosure of tax-equivalent net interest margin,
excluding the impact of loan discount accretion, which is a non-GAAP performance
measure. Management believes that it is useful to calculate and present the net
interest margin without the impact of loan discount accretion, for the reasons
explained in the rest of this paragraph. Loan discount accretion is a non-cash
interest income adjustment that is related to 1) the Company's acquisition of
loans and represents the portion of the fair value discount that was initially
recorded on the acquired loans, and 2) the Company's origination of SBA loans
and the subsequent sale of the guaranteed portions of the loans that results in
a discount being recorded on the retained portion of the loans. These discounts
are recognized into income over the lives of the loans. At
The Registrant cautions that non-GAAP financial measures should be considered in addition to, but not as a substitute for, the reported GAAP results. A reconciliation between the non-GAAP financial measures presented and the most directly comparable financial measure calculated in accordance with GAAP is included in the news release and financial summary attached hereto as Exhibit 99.1.
Item 8.01 - Other Events
On
Item 9.01 - Financial Statements and Exhibits (d) Exhibits
Exhibit 99.1 - News Release issued on
Disclosures About Forward Looking Statements
This news 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-
3 -------------------------------------------------------------------------------- Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
First Bancorp January 27, 2021 By: /s/ Richard H. Moore Richard H. Moore Chief Executive Officer 4
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