First Carolina Financial Services (FCBM) investor relations material

Executive summary

• Net income rose 11.0% year-over-year to $5.1 million ($0.20 per diluted share) for Q2 2026, reflecting solid loan growth and improved profitability.

• Completed a successful IPO, raising $69.3 million in net proceeds and listing on the NYSE, enhancing capital flexibility.

• Achieved robust commercial loan production and deposit optimization, with a strategic focus on lower-cost, non-brokered deposits.

• Integrated Payments business and expanded offerings, particularly targeting higher education clients.

Financial highlights

• Net interest income increased 8.8% year-over-year to $25.6 million, with net interest margin expanding by 18 basis points to 3.23%.

• Noninterest income declined 49.5% year-over-year due to the planned discontinuation of a banking-as-a-service partnership.

• Noninterest expense decreased 17.1% year-over-year, driven by workforce reductions and lower fraud losses.

• Book value per share at quarter-end was $13.88; tangible book value per share was $11.66.

• Return on average assets (ROAA) was 0.60%; return on average equity (ROAE) was 5.71%; ROATCE was 7.09%.

Outlook and guidance

• Management expresses confidence in continued strong shareholder returns, citing a diversified business model and emerging tailwinds.

• Strategic focus remains on expanding commercial banking, payments, and higher education verticals.