THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

First Bancorp (FBNC)

3/28/2006 Proxy Information

Certain of the directors, nominees, principal shareholders and officers (and their affiliates) of the Company have deposit accounts and other transactions with First Bank, including loans in the ordinary course of business. All loans or other extensions of credit made by First Bank to directors, nominees, principal shareholders and officers of the Company and to affiliates of such persons were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with independent third parties and did not involve more than the normal risk of collectibility or present other unfavorable features. At December 31, 2005, the aggregate principal amount of loans to directors, nominees, principal shareholders and officers of the Company and to affiliates of such persons was approximately $12,857,000.

Mr. Perkins is not considered independent under NASD criteria due to a transaction between a business interest of his and the Company that occurred in 2004.

3/30/2005 Proxy Information

Mary Clara Capel is the daughter of Jesse S. Capel, an independent director of the Company.

Mr. Taylor is the son of Frederick H. Taylor, an independent director of the Company.

Certain of the directors, nominees, principal shareholders and officers (and their affiliates) of the Company have deposit accounts and other transactions with First Bank, including loans in the ordinary course of business. All loans or other extensions of credit made by First Bank to directors, nominees, principal shareholders and officers of the Company and to affiliates of such persons were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with independent third parties and did not involve more than the normal risk of collectibility or present other unfavorable features. At December 31, 2004, the aggregate principal amount of loans to directors, nominees, principal shareholders and officers of the Company and to affiliates of such persons was approximately $13,764,000.

Under the authority of the Company's share repurchase plan, the Company made the following repurchases from directors of the Company. All amounts are adjusted for the Company's November 2004 stock split. On February 23, 2004, the Company repurchased 15,000 shares from Ms. Wallace-Gainey at a price of $22.21 per share, the prevailing market value at the time of the purchase. On August 24, 2004, the Company repurchased 3,750 shares from Dr. Bruton at a price of $21.71 per share, the prevailing market value at the time of the purchase. On October 27, 2004, the Company repurchased 12,251 from Mr. Garner at a price of $24.47 per share, the prevailing market value at the time of the purchase.

On November 22, 2004, the Company purchased land located in Sanford, North Carolina from a partnership in which Mr. Perkins, a director of the Company, is a 50% owner. The purchase price of the land was $750,000. The purchase price was negotiated by Mr. Perkins and by Ms. Nixon, an executive officer of the Company, subject to board approval. The Board of Directors determined that $750,000 was a fair price for the property based on a sale of adjacent land owned by the same partnership, which had recently been sold to an independent third party, giving effect to characteristics of the land under consideration that enhanced its value. The Audit Committee also approved this transaction.