$FCBM

First Carolina Financial Services, Inc.

CIK:0001531193|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans, including fees	$ 41,592	$ 41,174	$ 81,655	$ 81,112
Investment securities	3,786	3,001	7,478	5,255
Other interest, dividends, and short-term investments	1,468	2,183	3,454	4,400
Total interest income	46,846	46,358	92,587	90,767
Interest expense:
Deposits	19,951	21,439	39,027	40,878
Borrowings	293	233	412	435
Subordinated debt	1,014	1,157	2,033	2,139
Total interest expense	21,258	22,829	41,472	43,452
Net interest income	25,588	23,529	51,115	47,315
Provision for credit losses - loans	943	67	1,175	1,381
Provision (benefit) for credit losses - unfunded commitments	(670)	(236)	(1,300)	(1,018)
Total provision (benefit) for credit losses	273	(169)	(125)	363
Net interest income after provision for credit losses	25,315	23,698	51,240	46,952
Noninterest income:
Service charges on deposit accounts	5,538	12,095	12,363	19,929
Bank-owned life insurance income	636	348	1,190	692
Gain on sale of securities, net	0	0	108	0
Other noninterest income	501	763	655	2,273
Total noninterest income	6,675	13,206	14,316	22,894
Noninterest expense:
Compensation and benefits	11,662	15,215	24,061	27,596
Occupancy, software and equipment	4,013	3,902	8,338	6,901
Data processing	1,738	2,302	3,690	4,146
Federal deposit insurance premiums	650	795	1,700	1,590
Service fees	95	75	170	1,853
Professional fees	3,183	2,198	5,689	3,569
Supplies	182	362	638	578
Director fees	444	309	770	586
Amortization of intangibles	692	806	1,386	1,343
Consumer fraud and transaction losses	1,432	3,522	2,770	7,039
Other	1,411	1,260	2,522	2,663
Total noninterest expense	25,502	30,746	51,734	57,864
Income before income tax expense	6,488	6,158	13,822	11,982
Income tax expense	1,392	1,567	2,815	2,686
Net income	$ 5,096	$ 4,591	$ 11,007	$ 9,296
Earnings per share:
Basic (in usd per share)	$ 0.21	$ 0.18	$ 0.44	$ 0.37
Diluted (in usd per share)	$ 0.20	$ 0.18	$ 0.44	$ 0.37
Weighted average common shares outstanding:
Basic (in shares)	24,802,799	24,829,553	24,776,164	24,828,630
Diluted (in shares)	25,235,701	24,955,621	24,924,762	24,946,966

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net Income	$ 11,007	$ 9,296
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,008	966
Amortization of internally developed software	1,855	1,255
Amortization of intangible assets	1,386	1,343
Net gains on sale of securities	(108)	0
Net amortization (accretion) on securities	292	140
Amortization of subordinated debt issuance costs	53	53
Provision (recoveries) for credit losses	(125)	363
Deferred income tax expense	1,035	535
Bank-owned life insurance income	(1,190)	(692)
Stock-based compensation expense	1,978	1,677
Change in assets and liabilities
Prepaid expenses and other assets	6,864	13,191
Accrued expenses and other liabilities	(3,276)	(2,343)
Accrued interest payable	(1,376)	276
Net cash provided by operating activities	19,403	26,060
Cash flows from investing activities
Proceeds from maturities, prepayments, and calls of AFS securities	29,813	29,311
Proceeds from sales of AFS securities	86,190	0
Purchases of AFS securities	(129,228)	(195,877)
Proceeds from maturities, prepayments, and calls of HTM securities	0	14,342
Loan originations and principal payments on loans, net	(94,379)	(103,078)
Change in FHLB stock	993	2,155
Purchase of bank-owned life insurance	(9,031)	(17,207)
Net purchases of premises and equipment	(234)	(2,814)
Net cash paid in acquisition of BM Technologies, Inc.	0	(96,721)
Net cash used in investing activities	(115,876)	(369,889)
Cash flows from financing activities
Net increase in deposits	35,042	427,692
Net change in Federal Reserve advances	0	(100,000)
Net change in FHLB advances	(25,000)	0
Repurchase of common stock	(40)	0
Offering expense related to 2024 issuance of common stock	0	(8)
Net proceeds from issuance of common stock	71,176	0
Net cash provided by financing activities	81,178	327,684
Net increase (decrease) in cash and cash equivalents	(15,295)	(16,145)
Cash and cash equivalents, beginning of year	134,116	168,055
Cash and cash equivalents, end of year	118,821	151,910
Supplemental disclosures of cash flow information
Interest on deposits and other borrowings	42,848	43,176
Income taxes	903	1,783
Supplemental disclosures of noncash transactions
Change in fair value of investment securities AFS, net of tax	158	1,263
Accrued liability in connection with issuance of common stock related to IPO	1,550	0
Goodwill recognized in connection with acquisition of BM Technologies, Inc., net of measurement period increase of $3,720	0	44,474
Identified intangible assets recognized in connection with acquisition of BM Technologies, Inc.	0	26,667
Deferred tax assets recognized in connection with acquisition of BM Technologies, Inc., net of measurement period decrease of $3,720	0	20,970
Additional Assets recognized in connection with acquisition of BM Technologies, Inc.	0	14,878
Additional Liabilities recognized in connection with acquisition of BM Technologies, Inc.	0	(10,268)
Amortization of net gains and losses on investment securities transferred to HTM	$ 0	$ 5

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Cash and cash equivalents
Non-interest bearing deposits	$ 12,091	$ 7,759
Interest bearing deposits	106,730	126,357
Total cash and cash equivalents	118,821	134,116
Investment securities available-for-sale (“AFS”), at fair value (amortized cost $325,768 and $312,727, net of allowance for credit losses of $0 and $0)	325,341	312,090
Federal Home Loan Bank stock, at cost	4,739	5,732
Loans receivable	2,742,549	2,648,174
Allowance for credit losses	(22,064)	(20,893)
Net loans	2,720,485	2,627,281
Premises and equipment, net	42,077	44,707
Goodwill	46,266	46,266
Other intangible assets, net	22,743	24,129
Deferred tax assets, net	24,055	25,142
Bank-owned life insurance	68,577	58,356
Prepaid expenses and other assets	32,825	39,689
Total assets	3,405,929	3,317,508
Deposits
Non-interest bearing	563,008	533,232
Interest bearing	2,267,707	2,262,441
Total deposits	2,830,715	2,795,673
Short term borrowings	50,000	75,000
Subordinated debt, net	63,489	63,436
Allowance for credit losses on off-balance sheet credit exposures	2,494	3,794
Accrued interest payable	2,212	3,588
Accrued expenses and other liabilities	27,365	29,092
Total liabilities	2,976,275	2,970,583
Shareholders’ equity
Preferred stock, $0 par value; 10,000,000 shares authorized; 0 shares issued or outstanding	0	0
Common stock, $0.50 par value; 100,000,000 shares authorized and 31,068,852 shares issued at June 30, 2026; 100,000,000 shares authorized and 24,521,194 shares issued at December 31, 2025	15,535	12,261
Additional paid-in capital	308,195	239,903
Retained earnings	106,254	95,249
Accumulated other comprehensive loss	(330)	(488)
Total shareholders’ equity	429,654	346,925
Total liabilities and shareholders’ equity	$ 3,405,929	$ 3,317,508