1

August 2011

This report contains statements that could be deemed forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act, 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.  Further, forward-looking statements
are intended to speak only as of the date made.  Such statements are often
characterized by the use of qualifying words (and their derivatives) such as “expect,”
“believe,” “estimate,” “plan,” “project,” or other statements concerning our opinions or
judgment 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 our customers, our level of success in integrating acquisitions,
actions of government regulators, the level of market interest rates, and general
economic conditions.  For additional information that could affect the matters discussed
in this paragraph, see the “Risk Factors” section in Item 1A of Part I of Form 10-K filed
for the year endedDecember 31, 2010 and in Item 1A of Part II of Forms 10-Q filed
for the quarterly periods ended March 31, 2011 and June 30, 2011.

Caution Regarding Forward-Looking Statements

2

FIRST BANCORP

FIRST BANCORP

NASDAQ tickerFBNC

HeadquartersTroy, NC

Subsidiary BankFirst Bank

Established1935 as Bank of Montgomery

Assets1$3.3 billion

Loans1$2.4 billion

Deposits1$2.7 billion

Branches 97 in NC, SC, VA

Employees822 full-time equivalent employees

Customers270,000

Ranking4th largest bank in North Carolina

3

1 Note:Financial data as reported on Earnings Release for the quarter ended June 30, 2011.

FIRST BANCORP

FIRST BANCORP

4

FIRST BANCORP

FIRST BANCORP

First Bank Branches (91)

First Bank of Virginia Branches*(6)

Loan Production Office

*Operating as a branch of First Bank NC

Branch Network

5

Company Highlights

•Seasoned Management and Board of Directors

•High Growth Company

•Organic

•Acquired

•Earnings

•Strong Net Interest Margin

•24 consecutive years of Profitability since 1987 IPO

•Asset Quality

•Non-performing assets elevated compared to prior periods

•Stable and Manageable

•Capital

•Strong Capital Ratios

•Stock Valuation

•Trading at a discount compared to historical valuation

measures

FIRST BANCORP

FIRST BANCORP

6

Experienced Executive Officers to Lead Growth Strategy

Name / Position	Experience with First Bank
Jerry L. Ocheltree Director, President & Chief Executive Officer	13 years (26 years Banking Experience)
Anna G. Hollers EVP, Chief Operating Officer & Corporate Secretary	39 years
Teresa C. Nixon EVP & Chief Lending Officer	22 years
Eric P. Credle EVP & Chief Financial Officer	14 years
David C. Grigg EVP & Chief Information Officer	39 years
Lee C. McLaurin EVP & Controller	24 years
Timothy S. Maples EVP & Chief Investment Officer	11 years

FIRST BANCORP

FIRST BANCORP

7

Board of Directors

Keen Vision and Diverse Experience

Board Members Include:

§Former State Treasurer

§Former Lieutenant Governor

§Former Speaker of North Carolina House of Representatives

and current member of North Carolina Senate

§8 Business Executives from a wide range of industries

§1 CPA in public practice

§3 Former CEOs from Acquired Banks

§FBNC common stock ownership:

•Board of Directors and Executive Officers

•401(k) and pension plans

14% Ownership

FIRST BANCORP

FIRST BANCORP

8

FIRST BANCORP

FIRST BANCORP

Management Structure

Trusted Financial Professionals Provide a Suite of Services

•10 Regional Executives report to the President

•Branch Managers report to Regional Managers

•Regional Executives review loans with CLO and credit staff weekly

•Cash management, remote deposit, online banking, mobile banking and i-Phone®

app sales and support services are provided by experienced specialists

•Residential Mortgages are underwritten and processed by the Mortgage Loan

Department

•Conforming mortgages are sold with servicing released

•Department supports 33 residential mortgage specialists throughout

branch network

•Property and Casualty Insurance Services are provided by dedicated

professionals

•Wealth Management services are expanding to further complement our deposit

products

9

FIRST BANCORP

FIRST BANCORP

Total Assets

Asset Growth - June 1999 to June 2011

534% Growth

10

FIRST BANCORP

FIRST BANCORP

DeNovo Branches

22 New Branches Opened from 1999 - 2010

With Current Deposits of $525 Million

Deposits as of 6-30-2011

11

FIRST BANCORP

FIRST BANCORP

12

Cooperative Bank

Wilmington,NC

Acquisition Date:   June 19, 2009

Assets:                    $959 million

Deposits:                 $717 million

Loans:                     $835 million

Number offices: 21 in NC and 3 in SC

Retained:     17 in NC and 2 in SC

Discount Bid:           $123 million

Deposit Premium:          0

Bargain Purchase Gain:$68 million

FDIC-Assisted Acquisition

FIRST BANCORP

FIRST BANCORP

13

FIRST BANCORP

FIRST BANCORP

14

FDIC-Assisted Acquisition

Acquisition Date:     January 21, 2011

Assets:                       $190 million

Deposits:                    $192 million

Loans:                         $154 million

Number Offices:                  5

Discount Bid:              $23.9 million

Deposit Premium:             0

Bargain Purchase Gain:  $10 million

Bank of Asheville

Asheville, NC

FIRST BANCORP

FIRST BANCORP

15

Bank of Asheville Acquisition

January 21, 2011

FIRST BANCORP

FIRST BANCORP

16

American Defense Corridor

Growth Opportunities in Existing Markets

§North Carolina has the third largest

military presence in America. 

§The American Defense Corridor

(ADC) is an emerging defense

industry in NC.By 2013 available

jobs in the ADC will increase to

54,000. 

§We have market presence in 7 of

the 11 counties within the

ADC, including the

Wilmington, Jacksonville and

Morehead City areas that serve

other military installations. 

FIRST BANCORP

FIRST BANCORP

17

%

18

%

FIRST BANCORP

FIRST BANCORP

1 See Appendix for list of Companies.

19

FIRST BANCORP

FIRST BANCORP

(%)

20

Noninterest Income

Core noninterest income to average assets -

Generally below peer ratios

Presents opportunities for improvement

First Bank Insurance Services - Offers P&C insurance products

Wealth ManagementDivision - New hire starting August 15 to build

out full platform

FIRST BANCORP

FIRST BANCORP

21

Non-Interest Expenses1 / Average Assets

FBNC consistently operates more efficiently than the Peer Group

1Non-interest expenses adjusted to exclude losses on OREO

FIRST BANCORP

FIRST BANCORP

22

Asset Quality

Nonperforming assets and provisions for loan

losses remain at elevated levels

    North Carolina property values have declined significantly

    and unemployment rates remain high

NPA’s - stable and manageable

   Non-covered NPA’s/Total Assets = 3.89% to 4.25% over the

   past 12 months

Covered NPA’s (FDIC loss share assets)

Declining trend as we work through failed bank problem assets

   down from $187 million at June 30, 2010 to $164 million at

   June 30, 2011 (despite addition of Bank of Asheville)

FIRST BANCORP

FIRST BANCORP

23

Unemployment Rates Per County

FIRST BANCORP

FIRST BANCORP

4% - 8%

8% - 12%

12% +

24

Asset Quality:

Elevated Levels of Nonperforming Assets Compared to Prior Periods

Stabilizing Over the Past Two Quarters

FIRST BANCORP

FIRST BANCORP

25

Provision for Loan Losses

Excluding Provisions for Loans Covered under FDIC Loss Share Agreements

ØFirst Bancorp has remained profitable in spite of elevated provisions

25

FIRST BANCORP

FIRST BANCORP

26

Commercial, financial, and agricultural

Real Estate - construction, land development & other land loans

Real Estate - mortgage - residential (1-4 family first mortgages)

Real Estate - mortgage - home equity loans

Real Estate - mortgage - commercial and other

Installment loans to individuals

FIRST BANCORP

FIRST BANCORP

27

Capital

Capital Ratios are at/near 20+ year highs

$65 million of TARP capital remains

Has been leveraged for growth (two FDIC acquisitions)

Insurance against an uncertain economy

Provides flexibility for future growth, including M&A

Applied for SBLF

Preference is to repay from retained earnings,
possibly in installments

FIRST BANCORP

FIRST BANCORP

28

Note:TARP equity represents approximately 3.00% of the Total Risk Based Capital

Ratio and 2.00% of the Leverage Capital Ratio

Capital Ratios

FIRST BANCORP

FIRST BANCORP

29

FIRST BANCORP

FIRST BANCORP

30

31

FIRST BANCORP

FIRST BANCORP

32

First Bancorp Stock Valuation - FBNC

FBNC - August 4, 2011 Closing Price = $9.84

June 30, 2011 Tangible Book Value Common= $12.88

Consensus 2012 Diluted Earnings

Per Share - Common (4 analysts)= $1.01

2011 Annualized Dividend Rate (Per Share)= $0.32

Price to Tangible Book= 0.76x

Price to 2012 Consensus EPS= 9.7x

Dividend Yield (as of 8/4/11) = 3.23%

FIRST BANCORP

FIRST BANCORP

33

First Bancorp

§Longevity and Experienced Management Team

§Solid Capital Position

§Positioned as a Regional Consolidator

•M&A and FDIC Assisted Deals

§Diversified Markets and Revenues

§Funded by Stable Core Deposits - True Retail Franchise

§Effective Management of Interest Rate Risk

§Resilient Net Interest Margin and operating efficiencies

§Opportunities in expanding our Business Banking and

Wealth Management

FIRST BANCORP

FIRST BANCORP

34

FIRST BANCORP

FIRST BANCORP

35

FIRST BANCORP

FIRST BANCORP

Appendix

Select SE Peer Group