First Carolina Financial Services (FCBM) Registration filing summary

Company overview and business model

• Operates as a diversified financial services company with commercial banking, payments, consumer banking, and wealth management lines, serving over 650,000 deposit accounts as of March 31, 2026.

• Principal subsidiary is a North Carolina state-chartered bank; acquired BM Technologies, Inc. in 2025, expanding into national digital payments and higher education disbursement services.

• Commercial banking focuses on real estate and C&I lending in the Southeast, with 85.8% of CRE and C&I clients maintaining deposit relationships.

• Payments business serves over 750 higher education campuses, holding a 73% market share in its sector, and provides a significant source of low-cost deposits.

• Consumer banking leverages the BankMobile platform for digital-first accounts, with a strategy to convert student accounts into long-term relationships.

Financial performance and metrics

• As of March 31, 2026: total assets $3.4B, total loans $2.7B, total deposits $3.0B, shareholders' equity $353.4M.

• Net income for Q1 2026 was $5.9M, up from $4.7M in Q1 2025; net interest income for Q1 2026 was $25.5M, with a net interest margin of 3.25%.

• 2025 net income was $12.2M, down from $20.9M in 2024, reflecting increased provision expense and integration costs from the BM Tech acquisition.

• Noninterest income rose sharply in 2025 to $43.2M, driven by payments and servicing fees; efficiency ratio was 84.0% in 2025, improving to 79.4% in Q1 2026.

• Asset quality remains strong: nonperforming assets at 0.65% of total assets as of Q1 2026; allowance for credit losses at 0.79% of loans.

Use of proceeds and capital allocation

• IPO expected to raise approximately $73.6M (or $85.1M if underwriters' option exercised), net of expenses, at an assumed price of $15.00 per share.

• Proceeds will be used for general corporate purposes, including organic growth, potential acquisitions, refinancing debt, and working capital.

• Management has broad discretion over capital allocation.