First Carolina Financial Services (FCBM) investor relations material

Executive summary

• Net income for Q2 2026 was $5.1 million ($0.20 diluted EPS), up 11.0% year-over-year, with six-month net income at $11.0 million ($0.44 EPS), reflecting solid loan growth and improved profitability.

• Completed a successful IPO in June 2026, raising $69.6 million in net proceeds and listing on the NYSE, enhancing capital flexibility.

• Total assets reached $3.41 billion, loans $2.72 billion, deposits $2.83 billion, and shareholders' equity $429.7 million as of June 30, 2026.

• Achieved robust commercial loan production and deposit optimization, focusing on lower-cost, non-brokered deposits.

• Integrated Payments business expanded, targeting higher education clients.

Financial highlights

• Net interest income rose 8.8% year-over-year for Q2 2026 to $25.6 million; six-month net interest income increased 8.0% to $51.1 million.

• Net interest margin improved to 3.23% in Q2 2026, up 18 basis points year-over-year.

• Noninterest income fell 49.5% in Q2 2026 to $6.7 million, mainly due to the planned discontinuation of a banking-as-a-service partnership.

• Noninterest expense decreased 17.1% in Q2 2026, reflecting lower salaries, data processing, and fraud losses.

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

Outlook and guidance

• Management expects continued focus on disciplined expense management, operating efficiency, and strategic growth in core and emerging verticals.

• Loan portfolio growth and deposit stability are expected to support future earnings.

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