Item 1.01. Entry into a Material Definitive Agreement.

On January 23, 2013, First Bank (the "Bank"), a wholly-owned subsidiary of First Bancorp (the "Company") entered into and consummated a Loan Purchase Agreement (the "Agreement") by and between the Bank and Violet Portfolio, LLC. Pursuant to the Agreement, the Bank sold a portfolio of classified loans with a pre-transaction book value of $66.4 million for a total purchase price of $29.1 million, subject to certain adjustments as provided in the Agreement. The foregoing description of the Agreement is a summary and is qualified in its entirety by reference to the full Agreement, a copy of which is attached as Exhibit 10.1 hereto.

Item 2.06. Material Impairments.

In connection with the Agreement described above under Item 1.01, the Company determined, pursuant to generally accepted accounting principles, it would record a fourth quarter of 2012 non-cash charge of $33.6 million attributable to the loan sale transaction contemplated by the Agreement. This charge is net of the impact that the loan sale had on several factors impacting the Company's calculation of the allowance for loan losses, with the most significant factor being the effect of pre-established reserves associated with the sold loans.

On January 17, 2013, the Company's board of directors approved the recording of a fourth quarter of 2012 non-cash charge of $10.6 million related to the write-down of certain foreclosed real estate in connection with efforts to accelerate the disposal of these assets.

In connection with these actions, the total charge to be reflected in the Company's fourth quarter financials will be $44.2 million on a pre-tax basis. The total after-tax charge is expected to be approximately $27.0 million based on an assumed overall tax rate of 39%.

ITEM 9.01. Financial Statements and Exhibits

(d) Exhibits

The following exhibits are filed or furnished herewith as part of this Current Report on Form 8-K:

Exhibit Number Description of Exhibit
10.1 Loan Purchase Agreement By and Between First Bank and Violet Portfolio, LLC Dated as of January 23, 2013