First Carolina Financial Services Reports $5.1 Million Net Income for Q2 2026

First Carolina Financial Services, Inc. reported a net income of $5.1 million for the second quarter of 2026, reflecting an increase from $4.6 million in the same period of 2025. This translates to diluted earnings per share of $0.20, up from $0.18 year-over-year. For the first half of 2026, the company achieved a net income of $11 million, compared to $9.3 million in the prior year, resulting in earnings per share of $0.44, an increase from $0.37. The growth in profitability was primarily driven by an increase in net interest income, which rose by 8.75% to $25.6 million in the second quarter, attributed to higher loan volumes and a decrease in interest expenses.

Total assets as of June 30, 2026, reached approximately $3.4 billion, up from $3.3 billion at the end of 2025. This increase was largely due to a $94.4 million rise in net loans, which totaled $2.7 billion, and a $13.3 million increase in investment securities. The company’s total deposits also grew by $35 million to $2.8 billion, with non-interest-bearing deposits increasing to $563 million. The loan-to-deposit ratio stood at 96.9%, compared to 94.7% at the end of the previous year.

Strategically, First Carolina Financial Services completed a two-for-one stock split on June 17, 2026, and successfully launched its initial public offering on June 22, 2026, raising approximately $69.6 million. The company also continues to integrate its acquisition of BM Technologies, Inc., which has expanded its digital banking capabilities and market reach, particularly in the higher education sector. The BM Tech segment reported a loss of $1.7 million for the second quarter, primarily due to a decline in servicing fees following the discontinuation of a non-strategic banking-as-a-service partnership.

Operationally, the company reported over 640,000 deposit accounts and maintained a strong focus on managing credit risk, with a provision for credit losses of $273,000 in the second quarter. The allowance for credit losses stood at $22.1 million, representing 0.81% of total loans. The company’s asset quality remained stable, with nonperforming loans totaling $22.3 million, or 0.83% of total loans, as of June 30, 2026. Looking ahead, First Carolina Financial Services aims to continue its growth trajectory while managing interest rate risks and maintaining strong liquidity and capital positions.