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.

• Focuses on relationship-driven service, technology-forward platforms, and data-driven marketing.

• Serves over 524,000 deposit accounts, including small/medium businesses, individuals, professionals, and higher education institutions.

• Acquired BM Technologies, expanding into national payments and digital banking for higher education.

• Maintains a strong presence in Southeast U.S. markets and a national footprint via digital platforms.

Financial performance and metrics

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

• Q1 2026 net income: $5.9M, up 25.6% YoY; net interest income: $25.5M; net interest margin: 3.25%.

• FY 2025 net income: $12.2M, down from $20.9M in 2024, reflecting higher provision expense and BM Tech integration.

• Noninterest income rose to $43.2M in 2025, driven by payments and digital banking.

• Maintains strong credit quality: nonperforming loans at 0.83% of loans, allowance for credit losses at 0.79%.

• Efficiency ratio elevated during investment phase (79.4% in Q1 2026), with expectations for improvement.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for general corporate purposes: enhancing capital ratios, organic growth, potential acquisitions, refinancing debt, capital expenditures, and working capital.

• Management has broad discretion over capital allocation.