First Carolina Financial（FCBM）Q3 2026 净利 790 万美元、EPS $0.26，环比大增 55%，NIM 扩张至 3.38%

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM
8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 27, 2026
___________________________________
First Carolina Financial Services, Inc.
(Exact name of registrant as specified in its charter)
___________________________________
North Carolina
(State or other jurisdiction of incorporation)
001-43359
(Commission File Number)
27-2136973
(IRS Employer Identification Number)
2626 Glenwood Avenue
,
Suite 520
Raleigh
,
North Carolina
,
27608
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (
252
)
937-2152
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.50 per share
FCBM
NYSE
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2026,
First Carolina Financial Services, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2026 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).
The information contained in Item 2.02, including Exhibit 99.1 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
d)    Exhibits.
Exhibit Number
Description of Exhibit
99.1
Press release dated October 27, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
First Carolina Financial Services, Inc.
Date: October 27, 2026
By:
/s/ Steven G. Deaton
Steven G. Deaton Chief Financial Officer

----- exhibit991fcfsq32026earnin.htm -----
EX-99.1
2
exhibit991fcfsq32026earnin.htm
EX-99.1
Document
FOR IMMEDIATE RELEASE:
First Carolina Financial Services Reports Net Income of $7.9 Million, or $0.26 Per Diluted Share, for the Third Quarter of 2026
RALEIGH, N.C. (October 27, 2026
) – First Carolina Financial Services, Inc. (NYSE: FCBM) (“First Carolina,” the “Company,” “we,” “our,” or “us”), today reported net income of $7.9 million, or $0.26 per diluted share, for the third quarter of 2026, compared to a loss of $2.0 million, or a loss of $0.08 per diluted share, for the third quarter of 2025. These results reflect a $9.9 million increase in net income compared to the third quarter of 2025. All per share data has been adjusted to reflect the two-for-one stock split completed on June 17, 2026.
“This was a pivotal quarter for First Carolina,” said Ron Day, Chairman, President, and Chief Executive Officer. “Last quarter we strengthened our core funding base, and this quarter we demonstrated what that foundation makes possible. On a linked-quarter basis, net income was up $2.8 million, or 55%. Our net interest margin expanded to 3.38% for the quarter, driven by continued loan repricing, higher yields on new originations, and well-managed funding costs even as rates have risen. Deepening treasury management relationships with our commercial clients continues to drive valuable operating deposit growth, which supports our discipline on funding costs. We also redeemed our 2019 subordinated debt issuance in early September, which should positively impact interest expense in coming periods. Most importantly, we have done all of this while keeping our eye on credit quality, and nonperforming assets held steady.”
“In payments, we are making significant progress in expanding our service offerings. At the end of the quarter, we began offering prepaid cards as a payment modality for universities participating in our pilot program, which gives our higher-education clients and their students a broader set of disbursement options. We continue penetrating the broader banking opportunity in higher education, which remains a strategic growth vertical for us. More broadly, we feel demand for First Carolina has never been higher. Customers have responded well to our becoming a public company, and the strength and range of our Commercial Banking, Payments, Consumer Banking and Wealth Management businesses position us to meet that demand across every stage of our clients’ financial journeys. We are very pleased with these accomplishments and believe they reflect the durable earnings power of our franchise as we head into the remainder of the year.”
Third Quarter 2026 Performance Highlights:
•
Net income of $7.9 million, an increase of $9.9 million from the third quarter of 2025.
•
Generated $154.1 million of loan growth in the quarter, representing an annualized growth rate of 22.3%.
•
Expanded net interest margin by 32 basis points on a year-over-year comparative-quarter basis to 3.38%.
•
Increased third quarter net interest income by 10.0% compared to the third quarter of 2025.
•
Decreased third quarter non-interest expense by 19.6%, or $6.3 million compared to the third quarter of 2025.
•
Reduced higher-cost certificates of deposit by 15.7% during the quarter and 58.8% over the past year, supporting funding cost improvements.
•
Brokered deposits declined to 14.3% of total deposits at September 30, 2026 compared to 31.0% of total deposits a year ago.
•
Continued strong capital levels with average shareholders' equity representing 12.33% of average assets.
•
Nonperforming assets declined to 0.60% of total assets compared to 0.63% a year ago.
•
Ended the quarter with book value per share of $13.93 and tangible book value per share
1
of $11.73.
•
Return on average assets (“ROAA”) of 0.89%.
•
Return on average equity (“ROAE”) of 7.24%; Return on average tangible common equity (“ROATCE”)
1
of 8.61%.
(1)
Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in the financial tables section of the press release.
1
Operating Highlights
Net interest income totaled $28.1 million for the third quarter of 2026, an increase of $2.6 million, or 10.0%, over the third quarter of 2025, reflecting continued balance sheet strength and revenue generation. The Company's net interest margin was 3.38% for the third quarter of 2026, representing a 32 basis point improvement over the prior year period, driven primarily by lower interest-bearing deposit costs. Net interest margin increased by 15 basis points from the second quarter of 2026, largely attributable to the seasonality in deposits generated by the Company’s Payments business. Noninterest-bearing deposits in the Payments business regularly increase in the third quarter of each fiscal year from the preceding second quarter period, primarily due to the educational calendar. Beyond these areas, deposit repricing initiatives and stronger yields on loans remain meaningful drivers of the Company’s performance.
The yield on average interest-earning assets was 5.97% for the third quarter of 2026, compared to 6.02% for the third quarter of 2025, a decrease of 5 basis points, primarily reflecting lower yield on the securities port
folio and short-term, floating rate inv
estments. The yield on average interest-earning assets increased to 5.97% in the third quarter of 2026, from 5.92% in the second quarter of 2026, primarily driven by higher loan yields. The improvement reflects the strength of the Company's lending franchise and its disciplined approach to loan pricing, and it more than offset the decline in the yield on securities available for sale. As a result, the Company delivered meaningful growth in net interest income and year-over-year expansion in net interest margin.
The Company’s total cost of funds was 2.81% for the third quarter of 2026, a decrease of 31 basis points compared to the third quarter of 2025. Deposit costs were 2.71% for the third quarter of 2026, compared to 3.04% for the third quarter of 2025, a decrease of 33 basis points, and compared to 2.75% for the second quarter of 2026, a decrease of 4 basis points. The cost of interest-bearing liabilities was 3.58% for the third quarter of 2026, a decrease of 39 basis points compared to 3.97% for the third quarter of 2025, and no change compared to 3.58% for the second quarter of 2026, reflecting the strategic shift of deposits from time deposits to money market and savings accounts. Management believes the year-over-year decrease in total cost of funds, deposit costs, and cost of interest-bearing liabilities in the third quarter of 2026 versus the third quarter of 2025 are particularly meaningful, as this comparison eliminates the impact of the seasonal deposit flows in the Payments business that affect linked-quarter comparisons.
Noninterest income totaled $6.7 million for the third quarter of 2026, a decrease of $6.2 million, or 48.0%, from the third quarter of 2025. The decrease primarily reflects the planned discontinuation of a banking-as-a-service partnership inherited through the BM Technologies’ acquisition that was not consistent with the Company's long-term strategic focus and accounts for $3.6 million of the decrease from the third quarter of 2025. The decrease also reflects the non-recurring nature of the $1.7 million in net gains on sale of securities in the third quarter of 2025. Accordingly, results for the third quarter of 2026 are not directly comparable to those for the third quarter of 2025. Noninterest expense totaled $25.8 million for the third quarter of 2026, a decrease of $6.3 million, or 19.6%, from the third quarter of 2025. The decrease reflects lower salaries and employee benefits expense following the post-acquisition realignment of BM Technologies’ workforce, along with lower data processing costs and other professional fees. These results demonstrate the Company's ongoing commitment to disciplined cost control and operational efficiency.
The Company's effective tax rate was 20.7% for the third quarter of 2026, compared to 18.6% for the third quarter of 2025 and 21.5% for the second quarter of 2026. The higher effective tax rate compared to the prior-year quarter was primarily attributable to a higher state income effective tax rate due to a change in allocation of income before taxes between the Company, the Bank, and BM Technologies.
Balance Sheet Trends
Total assets were $3.67 billion at September 30, 2026, reflecting an increase of $154.1 million, or 4.4%, compared to September 30, 2025. Gross loans were $2.90 billion at September 30, 2026, an increase of $201.3 million, or 7.5%, compared to September 30, 2025, and an increase of $154.1 million, or 5.6%, from $2.74 billion at June 30, 2026.
2
Total deposits were $3.16 billion at September 30, 2026, reflecting an increase of $92.6 million, or 3.0%, compared to September 30, 2025. The Company continues to shift its deposit mix away from higher-cost certificates of deposit (brokered and non-brokered) and toward lower-cost core deposits. Certificates of deposit were $571.7 million at September 30, 2026, a $815.3 million, or 58.8%, decrease compared to September 30, 2025, and a $106.6 million, or 15.7%, decrease compared to June 30, 2026.
Credit Quality
During the third quarter of 2026, the Company recorded a net release of the provision for credit losses of $1.0 million, compared to a provision for credit losses of $9.4 million in the third quarter of 2025, and a provision for credit losses of $273 thousand during the second quarter of 2026. The release recorded during the third quarter of 2026 was primarily attributable to the migration of construction loans to permanent financing, which carry lower expected loss rates, the reduction in unfunded commitments, an improvement in economic factors, and limited loan charge-offs for the period. The provision for credit losses in the third quarter of 2025 was impacted by the charge-off of a held-to-maturity security with an amortized cost basis of $5.8 million and a $1.9 million charge-off on a commercial loan. The Company's annualized net charge-offs to average loans held for investment ratio was 0.01% for the third quarter of 2026, 0.00% for the preceding quarter, and 0.07% one year prior.
Nonperforming assets totaled $21.9 million, or 0.60% of total assets, at September 30, 2026, compared to $22.3 million, or 0.63% of total assets, at September 30, 2025, and $22.3 million, or 0.65% of total assets at June 30, 2026.
About First Carolina Financial Services, Inc.
First Carolina Financial Services, Inc. (NYSE: FCBM) operates as a bank holding company for First Carolina Bank that provides financial services for businesses, higher education institutions, and individuals. First Carolina offers a range of deposit and loan products and trust services. First Carolina is headquartered in Raleigh, North Carolina with full-service banking offices in Rocky Mount, Raleigh, Wilmington, Cary, and Reidsville, North Carolina; Virginia Beach, Virginia; Columbia and Greenville, South Carolina; and Atlanta, Georgia. For more information, please visit firstcarolinabank.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this press release. The inclusion of our website address in this press release is only as an inactive textual reference.
Company Note Regarding Forward-Looking Statements
This press release contains, and future oral and written statements by us and our management may contain, forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include discussion of plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, statements that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “see,” “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phrases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control and could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: adverse developments in our borrowers’ industries and, in particular, declines in real estate values; our ability to maintain compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed by our business; our ability to manage growth; the loss of any of our key employees; changes in the interest rates affecting our deposits, loans, and securities portfolio; our ability to maintain adequate liquidity and control our cost of funds; the strength of the economy in our current and future market areas, as well as general economic, market, or business conditions; negative developments in the financial industry and credit markets; an insufficient allowance for credit losses as a result of inaccurate assumptions or otherwise; the ability of our current and any future markets to weather a downturn in the economy; our potential growth, including loans, deposits, and our entrance or expansion into new markets or products, including our prepaid card offering being piloted at certain universities; the opportunities that may be presented to and pursued by us and the need for sufficient capital to support that growth; changes in our competitive position, competitive actions by other financial institutions and the competitive nature of the financial services industry and our ability to compete effectively against other financial institutions in our banking markets; changes in laws, regulations and the policies of federal or state regulators and agencies
3
or interpretations thereof; governmental monetary and fiscal policies, including the policies of the Federal Reserve; our ability to maintain internal control over financial reporting and an effective risk management framework; our effective use of technology or an interruption or breach in security of our information systems; our reliance on secondary sources, such as FHLB advances, sales of securities and loans, federal funds lines of credit from correspondent banks and out-of-market time deposits, to meet our liquidity needs; inaccurate or incomplete information about our clients; our ability to assess and manage our asset quality; natural disasters, pandemics or other public health crises, war, terrorist activities or civil unrest and their effects on the economic and business environments in which we operate; risks associated with unauthorized access, cyber-crime and other threats to data security; and other risks and uncertainties described under “Risk Factors” of our Registration Statement on Form S-1 and subsequent filings with the U.S. Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.
Investor Relations Contact:
Kristen Brabble
Chief Operating Officer
252-451-2964
investorrelations@firstcarolinabank.com
4
FIRST CAROLINA FINANCIAL SERVICES, INC.
QUARTER END BALANCE SHEETS
(dollars in thousands)
September 30,
2026
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
(unaudited)
(unaudited)
(unaudited)
(audited)
(unaudited)
Assets
Cash and cash equivalents
$
237,374
$
118,821
$
190,323
$
134,116
$
297,177
Investment securities, available for sale
319,145
325,341
331,641
312,090
310,833
Investment securities, held to maturity
-
-
-
-
250
Federal Home Loan Bank stock, at cost
2,364
4,739
2,364
5,732
2,143
Loans receivable
2,896,606
2,742,549
2,684,469
2,648,174
2,695,350
Allowance for credit losses
(21,280)
(22,064)
(21,121)
(20,893)
(23,492)
Net loans
2,875,326
2,720,485
2,663,348
2,627,281
2,671,858
Premises and equipment, net
41,059
42,077
43,531
44,707
45,086
Goodwill and intangible assets, net
68,318
69,009
69,702
70,395
68,080
Deferred tax asset
25,740
24,055
24,092
25,142
27,706
Bank-owned life insurance
69,258
68,577
58,910
58,356
57,798
Prepaid expenses and other assets
32,038
32,825
34,466
39,689
35,591
Total assets
$
3,670,622
$
3,405,929
$
3,418,377
$
3,317,508
$
3,516,522
Liabilities and shareholders' equity
Liabilities
Deposits
Noninterest bearing DDA
$
805,226
$
563,008
$
658,707
$
533,232
$
792,736
Interest bearing DDA
509,985
572,971
479,032
376,537
313,754
Savings and money market
1,276,158
1,016,471
931,271
759,197
576,962
Certificates of deposit
571,661
678,265
897,584
1,126,707
1,387,002
Total deposits
3,163,030
2,830,715
2,966,594
2,795,673
3,070,454
Federal Home Loan Bank advances
-
50,000
-
75,000
-
Subordinated debt, net
31,654
63,489
63,463
63,436
63,409
Allowance for credit losses
on off-balance sheet credit exposures
2,234
2,494
3,164
3,794
3,249
Accrued expenses and other liabilities
41,034
29,577
31,802
32,680
39,796
Total liabilities
3,237,952
2,976,275
3,065,023
2,970,583
3,176,908
Shareholders' equity
Common stock
15,535
15,535
12,307
12,261
12,261
Additional paid-in capital
309,186
308,195
240,684
239,903
239,014
Retained earnings
114,151
106,254
101,160
95,249
90,346
Accumulated other comprehensive loss
(6,202)
(330)
(797)
(488)
(2,007)
Total shareholders' equity
432,670
429,654
353,354
346,925
339,614
Total liabilities and shareholders' equity
$
3,670,622
$
3,405,929
$
3,418,377
$
3,317,508
$
3,516,522
5
FIRST CAROLINA FINANCIAL SERVICES, INC.
STATEMENTS OF OPERATIONS (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Interest income
Interest on cash and due from banks
$
1,525
$
1,424
$
3,337
$
4,890
$
7,614
Loans, including fees
44,156
41,592
42,781
125,810
123,893
Investment securities
3,822
3,786
4,017
11,300
9,272
Other interest and dividends
59
44
55
148
178
Total interest income
49,562
46,846
50,190
142,148
140,957
Interest expense
Deposits
20,076
19,951
23,606
59,103
64,484
Borrowings
1,423
1,307
1,071
3,867
3,645
Total interest expense
21,499
21,258
24,677
62,970
68,129
Net interest income
28,063
25,588
25,513
79,178
72,828
Provision (recovery) for credit losses
(1,029)
273
9,350
(1,155)
9,713
Net interest income after provision for credit losses
29,092
25,315
16,163
80,333
63,115
Noninterest income
Service charges on deposit accounts
5,875
5,538
10,540
18,237
30,470
Gain on sale of securities, net
-
-
1,721
108
1,721
Bank-owned life insurance
681
636
559
1,871
1,250
Other noninterest income
161
501
110
816
2,382
Total noninterest income
6,717
6,675
12,930
21,032
35,823
Noninterest expense
Salaries and employee benefits
12,376
11,662
14,456
36,436
42,052
Occupancy and equipment
4,125
4,013
4,442
12,463
11,343
Data processing
1,651
1,738
2,179
5,342
6,325
Other professional fees
3,300
3,183
6,025
8,989
9,594
Service fees
82
95
74
252
1,928
Federal deposit insurance premiums
450
650
795
2,150
2,385
Consumer fraud and transaction losses
1,226
1,432
1,717
3,996
8,754
Other noninterest expense
2,597
2,729
2,421
7,913
7,592
Total noninterest expense
25,807
25,502
32,109
77,541
89,973
Net income before taxes
10,002
6,488
(3,016)
23,824
8,965
Income tax expense
2,106
1,392
(1,016)
4,921
1,669
Net income (loss)
$
7,896
$
5,096
$
(2,000)
$
18,903
$
7,296
6
FIRST CAROLINA FINANCIAL SERVICES, INC.
FINANCIAL TABLES
Financial Highlights (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands except per share amounts)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Selected Operating Data:
Interest income
$
49,562
$
46,846
$
50,190
$
142,148
$
140,957
Interest expense
21,499
21,258
24,677
62,970
68,129
Net interest income
28,063
25,588
25,513
79,178
72,828
Provision (recovery) for credit losses
(1,029)
273
9,350
(1,155)
9,713
Noninterest income
6,717
6,675
12,930
21,032
35,823
Noninterest expense
25,807
25,502
32,109
77,541
89,973
Income tax expense
2,106
1,392
(1,016)
4,921
1,669
Net income (loss)
7,896
5,096
(2,000)
18,903
7,296
Share and Per Share Data:
Basic earnings per share
$
0.26
$
0.21
$
(0.08)
$
0.71
$
0.29
Diluted earnings per share
$
0.26
$
0.20
$
(0.08)
$
0.71
$
0.29
Book value per share (at period end)
$
13.93
$
13.83
$
13.85
$
13.93
$
13.85
Tangible book value per share
1
$
11.73
$
11.61
$
11.07
$
11.73
$
11.07
Shares of common stock outstanding
31,069,852
31,068,852
24,521,854
31,069,852
24,521,854
Weighted average basic shares outstanding
30,838,326
24,802,799
24,537,037
26,810,808
24,808,766
Weighted average diluted shares outstanding
30,838,326
25,235,701
24,537,037
26,810,808
24,808,766
Selected Balance Sheet Data:
Total assets
$
3,670,622
$
3,405,929
$
3,516,522
$
3,670,622
$
3,516,522
Securities available-for-sale, at fair value
319,145
325,341
310,833
319,145
310,833
Securities held-to-maturity, at fair value
-
-
250
-
250
Gross loans held for investment (LHFI)
2,896,606
2,742,549
2,695,350
2,896,606
2,695,350
Allowance for credit losses
21,280
22,064
23,492
21,280
23,492
Goodwill and other intangible assets
68,318
69,009
68,080
68,318
68,080
Deposits
3,163,030
2,830,715
3,070,454
3,163,030
3,070,454
Sub debt
31,654
63,489
63,409
31,654
63,409
Other borrowings
-
50,000
-
-
-
Total shareholders' equity
432,670
429,654
339,614
432,670
339,614
1
Considered non-GAAP financial measure - See "Non-GAAP Financial Measures.”
7
FIRST CAROLINA FINANCIAL SERVICES, INC.
FINANCIAL TABLES
Financial Highlights - continued (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Performance Ratios:
Pre-tax pre-provision return (PPR)
1
$
8,973
$
6,761
$
6,334
$
22,669
$
18,678
Return on average assets (ROAA)
2
0.89
%
0.60
%
(0.22)
%
0.73
%
0.29
%
Return on average equity
2
7.24
5.71
(2.29)
6.63
2.84
Return on average tangible common equity (ROATCE)
1
8.61
7.09
(2.85)
8.11
3.45
Net interest margin
3.38
3.23
3.06
3.29
3.11
Efficiency ratio
1
74.20
79.04
87.44
77.46
84.14
Noninterest income to average total assets
0.76
0.79
1.45
0.82
1.44
Noninterest income to total revenue
19.31
20.69
33.63
20.99
32.97
Noninterest expense to average total assets
2.92
3.01
3.61
3.01
3.61
Average interest-earning assets to average interest-bearing liabilities
138.02
133.15
134.14
136.84
137.62
Average equity to average total assets
12.33
10.53
9.79
11.09
10.30
Asset Quality Data:
Nonperforming assets to total assets
0.60
%
0.65
%
0.63
%
0.60
%
0.63
%
Nonperforming loans to gross LHFI
0.76
0.81
0.83
0.76
0.83
Total allowance for credit losses to nonperforming loans
97.15
99.07
105.26
97.15
105.26
Total allowance for credit losses to total LHFI
0.73
0.80
0.87
0.73
0.87
Net charge-offs to average LHFI
0.01
0.00
0.07
0.01
0.07
Balance Sheet and Capital Ratios:
Loan-to-deposit ratio
91.58
%
96.89
%
87.78
%
91.58
%
87.78
%
Noninterest bearing deposits to total deposits
25.46
19.89
25.82
25.46
25.82
Total shareholders' equity to total assets
11.79
12.61
9.66
11.79
9.66
Tangible common equity to tangible assets
1
10.11
10.81
7.87
10.11
7.87
Other:
Number of branches
9
9
9
9
9
Number of full-time equivalent employees
271
269
297
271
297
1
Considered non-GAAP financial measure - See "Non-GAAP Financial Measures.”
2
Annualized calculations shown for quarterly periods presented.
8
FIRST CAROLINA FINANCIAL SERVICES, INC.
FINANCIAL TABLES
QTD Average Balances and Yields/Rates (unaudited)
As of and for the Three Months Ended
September 30, 2026
June 30, 2026
September 30, 2025
(dollars in thousands)
Average balance
Interest income/expense
Average yields earned/rates paid
Average balance
Interest income/expense
Average yields earned/rates paid
Average balance
Interest income/expense
Average yields earned/rates paid
Assets:
Loans
$
2,805,567
$
44,156
6.24
%
$
2,688,901
$
41,592
6.20
%
$
2,701,520
$
42,781
6.28
%
Securities, available for sale
325,152
3,822
4.66
%
328,941
3,786
4.62
%
273,130
3,656
5.31
%
Securities, held to maturity
-
-
0.00
%
-
-
0.00
%
29,304
361
4.89
%
Deposits in banks and short-term investments
160,902
1,584
3.91
%
156,891
1,468
3.75
%
302,170
3,392
4.45
%
Total interest earning assets
3,291,621
49,562
5.97
%
3,174,733
46,846
5.92
%
3,306,124
50,190
6.02
%
Noninterest-earning assets
219,303
223,606
225,782
Total assets
$
3,510,924
$
3,398,339
$
3,531,906
Liabilities and shareholders’ equity
Transaction accounts
$
536,191
$
4,798
3.55
%
$
517,257
$
4,373
3.39
%
$
300,417
$
2,863
3.78
%
Money market and savings
1,149,202
9,603
3.32
%
972,528
7,654
3.16
%
620,330
5,447
3.48
%
Time deposits
599,421
5,675
3.76
%
799,742
7,924
3.97
%
1,480,550
15,296
4.10
%
Total interest-bearing deposits
2,284,814
20,076
3.49
%
2,289,527
19,951
3.50
%
2,401,297
23,606
3.90
%
Sub debt
56,234
993
7.01
%
63,480
1,014
6.41
%
63,400
1,070
6.70
%
Borrowings
43,777
430
3.90
%
31,348
293
3.75
%
61
1
6.50
%
Total interest-bearing liabilities
2,384,825
21,499
3.58
%
2,384,355
21,258
3.58
%
2,464,758
24,677
3.97
%
Noninterest-bearing demand deposits
655,744
620,825
675,808
Other liabilities
37,542
35,442
45,509
Shareholders’ equity
432,813
357,717
345,831
Total liabilities and shareholders’ equity
$
3,510,924
$
3,398,339
$
3,531,906
Net interest spread
2.40
%
2.34
%
2.05
%
Net interest income and spread
$
28,063
$
25,588
$
25,513
Net interest income/margin
3.38
%
3.23
%
3.06
%
Cost of total deposits
2.71
%
2.75
%
3.04
%
Cost of total funding
2.81
%
2.84
%
3.12
%
9
FIRST CAROLINA FINANCIAL SERVICES, INC.
FINANCIAL TABLES
YTD Average Balances and Yields/Rates (unaudited)
As of and for the Nine Months Ended
September 30, 2026
September 30, 2025
(dollars in thousands)
Average balance
Interest
income/
expense
Average yields earned/rates paid
Average balance
Interest
income/
expense
Average yields earned/rates paid
Assets:
Loans
$
2,717,556
$
125,810
6.19
%
$
2,670,523
$
123,893
6.20
%
Securities, available for sale
324,684
11,300
4.65
%
194,069
7,703
5.31
%
Securities, held to maturity
-
-
0.00
%
39,656
1,569
5.29
%
Deposits in banks and short-term investments
175,940
5,038
3.83
%
227,251
7,792
4.58
%
Total interest earning assets
3,218,180
142,148
5.91
%
3,131,499
140,957
6.02
%
Noninterest-earning assets
220,975
204,382
Total assets
$
3,439,155
$
3,335,881
Liabilities and shareholders’ equity
Transaction accounts
$
481,590
$
12,310
3.42
%
$
299,776
$
8,624
3.85
%
Money market and savings
990,745
23,550
3.18
%
607,946
15,780
3.47
%
Time deposits
789,101
23,243
3.94
%
1,290,090
40,080
4.15
%
Total interest-bearing deposits
2,261,436
59,103
3.49
%
2,197,812
64,484
3.92
%
Sub debt
61,029
3,025
6.63
%
63,374
3,209
6.77
%
Borrowings
29,334
842
3.84
%
14,246
436
4.09
%
Total interest-bearing liabilities
2,351,799
62,970
3.58
%
2,275,432
68,129
4.00
%
Non-interest-bearing demand deposits
669,017
671,150
Other liabilities
37,108
45,777
Shareholders’ equity
381,231
343,522
Total liabilities and shareholders’ equity
$
3,439,155
$
3,335,881
Net interest spread
2.33
%
2.02
%
Net interest income and spread
$
79,178
$
72,828
Net interest income/margin
3.29
%
3.11
%
Cost of total deposits
2.70
%
3.01
%
Cost of total funding
2.79
%
3.09
%
10
FIRST CAROLINA FINANCIAL SERVICES, INC.
FINANCIAL TABLES
Loan Data (unaudited)
As of the Quarter Ended
September 30,
2026
June 30,
2026
September 30,
2025
(dollars in thousands)
Amount
% of
Loans
Amount
% of
Loans
Amount
% of
Loans
Construction, land & land development
$
249,744
8.6
%
$
325,384
11.9
%
$
315,488
11.7
%
Other commercial real estate
1,640,357
56.6
%
1,475,934
53.8
%
1,448,761
53.8
%
Owner-occupied real estate
317,752
11.0
%
270,838
9.9
%
296,887
11.0
%
Commercial, industrial & agricultural
314,855
10.9
%
313,056
11.4
%
322,688
12.0
%
Residential real estate
372,783
12.9
%
355,291
13.0
%
309,869
11.5
%
Consumer
1,115
0.0
%
2,046
0.1
%
1,657
0.1
%
Gross loans held for investment
$
2,896,606
$
2,742,549
$
2,695,350
Allowance for credit losses on LHFI
(21,280)
(22,064)
(23,492)
Net loans held for investment
$
2,875,326
$
2,720,485
$
2,671,858
Nonperforming Assets (unaudited)
As of the Quarter Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
Nonaccrual loans
$
21,905
$
22,272
$
22,318
Past due loans 90 days and still accruing
-
-
-
Total nonperforming loans
$
21,905
$
22,272
$
22,318
Other nonperforming assets
-
-
-
Other real estate owned
-
-
-
Total nonperforming assets
$
21,905
$
22,272
$
22,318
Nonperforming loans to gross loans
0.76
%
0.81
%
0.83
%
Nonaccrual loans to gross loans
0.76
%
0.81
%
0.83
%
Nonaccrual loans to total assets
0.60
%
0.65
%
0.63
%
Nonperforming assets to total assets
0.60
%
0.65
%
0.63
%
11
Non-GAAP Financial Measures
Some of the financial measures discussed or presented in this press release or the accompanying financial tables are not measures recognized under accounting principles generally accepted in the United States of America (“GAAP”) and therefore are considered non-GAAP financial measures. In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP.
Our accounting and reporting policies conform to GAAP and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional non-GAAP financial measures. Management uses these non-GAAP financial measures because it believes they may provide useful supplemental information for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures may also provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as a comparison to financial results for prior periods. These non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies.
Tangible common equity
is defined as total shareholders’ equity less goodwill and other intangible assets.
Tangible book value per share
is defined as tangible common equity divided by total common shares outstanding. We believe this measure is important because it shows changes from period to period in book value per share exclusive of changes in intangible assets.
Tangible common equity to tangible assets
is defined as the ratio of tangible common equity divided by total tangible assets. We believe this measure is important because it shows relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.
Return on average tangible common equity (ROATCE)
is defined as the ratio of net income to average tangible common equity (as defined above).
Efficiency ratio
is defined as total noninterest expense divided by the sum of net interest income and noninterest income, excluding only gains from securities transactions. We believe this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
Pre-tax pre-provision return (PPR)
is defined as net income plus income tax expense plus provision (minus recovery) for credit losses.
We believe that these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP. However, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be considered as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those we disclose for the non-GAAP financial measures, but may calculate them differently.
12
FIRST CAROLINA FINANCIAL SERVICES, INC.
NON-GAAP RECONCILIATION
Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)
As of the Quarter Ended
(dollars in thousands, except per share data)
September 30,
2026
June 30,
2026
September 30,
2025
Total shareholders' equity (GAAP)
$
432,670
$
429,654
$
339,614
Less: goodwill and intangibles
(68,318)
(69,009)
(68,080)
Tangible common equity (Non-GAAP)
$
364,352
$
360,645
$
271,534
Common shares outstanding
31,069,852
31,068,852
24,521,854
Book value per common share (GAAP)
13.93
13.83
13.85
Tangible book value per common share (Non-GAAP)
11.73
11.61
11.07
Total assets (GAAP)
$
3,670,622
$
3,405,929
$
3,516,522
Less: goodwill and intangibles
(68,318)
(69,009)
(68,080)
Tangible assets
$
3,602,304
$
3,336,920
$
3,448,442
Tangible common equity to tangible assets (Non-GAAP)
10.11
%
10.81
%
7.87
%
Return on Average Tangible Common Equity (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Net income (GAAP)
$
7,896
$
5,096
$
(2,000)
$
18,903
$
7,296
Average shareholders' equity
432,813
357,717
345,831
381,231
343,522
Return on average equity
7.24
%
5.71
%
(2.29)
%
6.63
%
2.84
%
Average shareholders' equity
$
432,813
$
357,717
$
345,831
$
381,231
$
343,522
Less: average goodwill and intangibles
(68,774)
(69,463)
(67,606)
(69,459)
(60,685)
Average tangible common equity (Non-GAAP)
364,039
288,254
278,225
311,772
282,837
Return on average tangible common equity (Non-GAAP)
8.61
%
7.09
%
(2.85)
%
8.11
%
3.45
%
Efficiency Ratio (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Net interest income
$
28,063
$
25,588
$
25,513
$
79,178
$
72,828
Noninterest income
6,717
6,675
12,930
21,032
35,823
Adjusted for:
Gain on sale of securities
-
-
1,721
108
1,721
Adjusted revenue
$
34,780
$
32,263
$
36,722
$
100,102
$
106,930
Total noninterest expense
25,807
25,502
32,109
77,541
89,973
Efficiency ratio (Non-GAAP)
74.20
%
79.04
%
87.44
%
77.46
%
84.14
%
13
FIRST CAROLINA FINANCIAL SERVICES, INC.
NON-GAAP RECONCILIATION
Pre-tax pre-provision return (unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
(dollars in thousands)
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Net income (GAAP)
$
7,896
$
5,096
$
(2,000)
$
18,903
$
7,296
Plus:
Income tax expense
2,106
1,392
(1,016)
4,921
1,669
Provision (recovery) for credit losses
(1,029)
273
9,350
(1,155)
9,713
Pre-tax, pre-provision return (Non-GAAP)
$
8,973
$
6,761
$
6,334
$
22,669
$
18,678
14