First Carolina Financial Services, Inc.

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Investment Snapshot

S-1 All Filings

Symbol

FCBM

Offer Range

—

Shares Offered

—

Total Shares Post-IPO

12.3M

Market Cap

—

Target Price

$00.00

Implied Upside vs Midpoint

$00.00

Use of Proceeds

—

Valuation & Price Target

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Business & Product Moat

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Company Description (Source)

At First Carolina, with our focused banking footprint and national financial services business, we strive to be a high-performing, opportunistically driven financial services company. We are dedicated to providing innovative banking solutions and financial services to a diverse client base that totals over 524,000 customer deposit accounts as of March 31, 2026, including small and medium-sized businesses, individuals, professionals, as well as institutions of higher education. Our core values — being enterprising, intentional, responsive and considerate — underpin both how we operate and serve our customers and communities. As of March 31, 2026, we had total assets of $3.4 billion, total loans of $2.7 billion, total deposits of $3.0 billion, and total shareholders’ equity of $353.4 million. First Carolina owns 100% of the issued and outstanding capital stock of the Bank. Our deposit accounts are insured to the maximum extent permitted by applicable law. Our history of profitability and prudent expense management is matched by our commitment to innovation. Through 2024 and 2025 we made strategic investments to build an operating platform capable of supporting long-term scale that we believe are essential to achieving increased operating leverage over the near and long-term. We remain confident in our ability to return to and exceed historical levels of profitability as these investments mature. We have a technology-forward platform that we believe augments our sophisticated commercial and consumer banking divisions and enhances our enterprise risk management operations while improving and expanding the suite of offerings we can provide to our customers. We manage and curate data as a corporate asset and are deploying scalable, data-driven marketing and risk mitigation initiatives based upon proven methodologies of automated portfolio screening, advanced diagnostic evaluations, defined outcome protocols, and applied treatments. Since our inception in 2012, we have successfully raised approximately $313.9 million in capital across eleven private placements. We believe this repeated success underscores our deep network of committed stakeholders, our strong relationships within the investor community and our successful ability to grow while delivering great financial performance for our shareholders. --- We have four primary lines of business: Commercial Banking, Payments, Consumer Banking and Wealth Management. Consistent across these lines of business is our steadfast focus on personalized, relationship-driven service underpinned by market and product expertise. Each business has experienced leadership that partners with market and industry executives for execution tailored to the respective business and geography. We aim to drive financial performance through this diversified business model and believe that our business lines will enable us to capitalize on a wide range of strategic opportunities. We believe our Commercial Banking business has significant headroom for growth and margin expansion, as older fixed-rate loans originated during lower rate environments pay off and we make new variable-rate loans in today’s comparatively higher rate environment. Parallel to our lending growth, we are aggressively expanding our treasury management and commercial deposit platform. By providing mission-critical liquidity management and automated payment solutions to our corporate clients, we are securing low-cost, ‘sticky’ operating deposits with an expected low probability of account closure that serve as a foundational funding source. We aim to attract additional deposits through our Payments relationships with higher education institutions, and we expect that such additional deposits will help us manage wholesale borrowings and improve our overall cost of funds. We believe our Consumer Banking business and technological capabilities give us a unique opportunity to graduate student deposit accounts into long-term, franchise banking relationships. --- Commercial Banking Operations Primarily serving our core Southeast markets, our Commercial Banking line of business is made up of our Real Estate Banking and Commercial & Industrial Banking (“CBI”) divisions. Real Estate Banking. Our Real Estate Banking division delivers term and construction financing solutions for commercial real estate (“CRE”) properties. Our team of CRE lending experts provides financing for CRE purchases, rehabilitation/repositioning and refinancings by deploying local market expertise and building strong relationships to understand the needs of our customers. The success of this relationship-driven model is evidenced by our high level of borrower loyalty, with 67% of our new originations consistently sourced from existing clients as of March 31, 2026. Our streamlined and centralized loan origination process leverages regional underwriting support and in-house risk committee oversight, thus effectively managing risks associated with our CRE lending activities while making efficient and well-informed credit decisions. As of March 31, 2026, we had an average yield of 6.0% on our CRE loans and carry $252 million in unfunded CRE commitments. Our CRE loan portfolio is substantially diverse across asset classes and geographic regions, with over 280 CRE loan relationships. We intentionally limit our credit risk to borrowers and CRE properties in the hospitality and quick service restaurant industries. Our primary source of repayment is cash flow generated by the property that secures our CRE loans. We prioritize “velocity” lending, favoring facilities with terms of five years or less and floating-rate structures to optimize yield and capital efficiency. Our centralized Real Estate Banking division (housed in Raleigh, NC) also provides business line leadership, underwriting, fulfillment, closing and processing program management, and origination support for our portfolio consumer real estate loan product. This product is a relationship-based home mortgage loan to prime borrowers that follows the same philosophy of our real estate lending business in general which is to prioritize “velocity” lending, favoring facilities with terms of five years or less and capital efficiency given the majority of this portfolio currently is first-lien loans. The loans are originated by private and commercial bankers across our traditional bank footprint, and the residential real estate portfolio exceeded $352 million as of March 31, 2026. Commercial & Industrial. Our commercial and industrial (“C&I”) Banking division specializes in delivering C&I banking solutions throughout all of our markets, including loans on owner-occupied CRE properties and lines of credit to closely held companies. These loans most commonly support short-term working capital needs, equipment financing, or the purchase or refinance of real estate owned by the operating business or a related entity. We selectively provide financing for management buyouts, acquisitions, re-caps and asset-based lending (“ABL”) facilities. We target a “Standard C&I Profile” consisting of firms that generally have annual revenue between $5 million and $250 million that demonstrate consistent profitability and an appropriately deep management team. Our primary source of repayment is cash flow generated by the operating business, and we typically require personal guarantees of the business owners. Among our key strengths in our Commercial Banking operations is the fact that as of March 31, 2026, 85.8% of our CRE and C&I clients maintain deposit relationships with the Bank, and a significant majority thereof conduct their primary deposit banking activities and maintain the majority of their deposit balances with us. Further, our commercial banking strategy opts for loan origination in place of pursuing participation or passive syndication strategies. We are focused on inculcating relationships that foremostly serve the commercial banking needs of our clients in this space, and on providing further deposit and related banking support to attend to the holistic needs of our clients. The result is an integrated, responsive and full-service approach to our clients’ commercial banking and related needs. --- Payments In 2023, we established a partnership with BM Tech to add core, insured deposit relationships with higher education students across the country. In 2025, we acquired BM Tech to form the basis of our Payments business which has allowed us to capture, on a year-to-date average basis, approximately $535 million in deposits with a cost of 0.02% as of March 31, 2026. Given seasonality, this business generated over $483 million in average daily deposit balances for the fiscal year 2025. Our Payments business is an industry leader in the higher education funds disbursement sector, which has a total addressable market of more than $127 billion in annual grants and loans in 2025, offering higher education institutions the ability to process financial aid disbursements and refunds to students. In this role, we offer students flexible options to receive funds from federal grants and scholarships through our refund management disbursement platform. As a competitive differentiator, we also offer students the option to deposit funds into our BankMobile Platform deposit account offering. We monetize our Payments business services in three primary ways: (1) institutional fees (both transactional and subscriptions) in exchange for us providing financial aid and other student refund disbursement services, (2) interchange and account fees generated by our BankMobile Platform deposit account offering and associated debit cards, which are utilized by both current and former students, and (3) as a significant source of low-cost deposits derivative of moving over $13.5 billion annually. We believe that our Payments business provides us with a transformational opportunity and a nationwide platform for deposit-gathering and establishing new customer relationships in addition to creation of significant non-interest fee income. Regarding our market position, the CFPB’s December 2024 annual report to Congress on college banking and credit card agreements indicated that, within its sample of existing higher education institutions’ partnerships with third-party financial service providers, our Payments business held a dominant market share based on active accounts and relationships with a 73% market share based on number of partnerships. As of March 31, 2026, our Payments business serves over 750 higher education campuses across 46 states, as shown in the figure below. --- As depicted in the graphic below, we believe our Payments business has significant opportunity for growth by simply capturing a larger share of the annual disbursements volume it already processes. --- Consumer Banking Our Consumer Banking business is primarily driven by our BankMobile Platform and online presence, serving approximately 514,000 customers across the nation as of March 31, 2026, and supplemented by our retail banking division serving the personal day-to-day banking needs of our commercial clients, business owners and other professionals of high net worth, in our core Southeast markets. BankMobile Platform. Our BankMobile Platform provides digital-first checking and savings accounts through our BankMobile Platform app with market-competitive features, such as peer-to-peer transfers, and reward programs along with the traditional features such as a physical debit card. All students that receive disbursements through our Payments business can apply to receive their disbursements to a BankMobile Platform account (issued by the Bank). Our BankMobile Platform provides an evergreen pipeline for new accounts (with a near zero CAC) with an inherent opportunity of graduating these accounts into long-term, franchise relationships. As noted, we monetize these accounts from interchange and account fees, in addition to being a source of durable, low-cost deposits. Retail Banking. Our retail banking division serves the personal day-to-day banking needs of our commercial clients, business owners and other professionals of high net worth. We aim to provide our customers with a single view of their financial relationship with us with easy navigation, high-touch, personalized service delivered primarily through our nine full-service offices that cover: in North Carolina, the Raleigh, Rocky Mount, Wilmington and Greensboro market areas; in Georgia, the Atlanta metro area; in Virginia, the Virginia Beach market area; and in South Carolina, the Columbia and Greenville market areas. Our banking franchise is focused on personalized, relationship-driven service combined with local market management and expertise. Wealth Management We deliver a full suite of wealth management services through First Carolina Wealth. We build strong partnership relationships with our wealth management clients, which we believe differentiates us from our peers, to offer a superior menu of wealth management, trusts and financial planning solutions that serve clients’ needs throughout their respective life cycles. We personalize our services based upon each client’s resources, needs and goals to best achieve their priorities in pursuit of an abundant and fulfilled life. --- Our principal executive office is located at 2626 Glenwood Avenue, Suite 200, Raleigh, NC 27608, and our telephone number is (252) 937-2152. We maintain a website at www.firstcarolinabank.com.

Competitor Set

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Market & Macro

Sector context: State Commercial Banks

Same-industry IPOs from the last 365 days (as of 2026-06-04). Returns from IPO open price.

Median IPO open → current

-27.7%

win 50% · n=4

Median first month

+4.9%

win 75% · n=4

Company	IPO Date	Open → Current	First Month
FRMI Fermi Inc.	2025-10-01	-76.1%	+4.4%
AVBH Avidbank Holdings, Inc.	2025-08-08	+30.3%	+8.8%
LHAI Linkhome Holdings Inc.	2025-07-24	-86.0%	+5.3%
COSO CoastalSouth Bancshares, Inc.	2025-07-02	+20.7%	-4.3%