Earnings Releases·Oct 27, 2026, 4:58 PM ET

First Carolina Financial Services — Third Quarter 2026 Earnings Summary

Net income turned positive at $7.9 million ($0.26 per share) in Q3 2026, a $9.9 million year-over-year improvement from a $2.0 million loss in Q3 2025, driven by a $1.0 million net release of credit loss provisions versus a $9.4 million provision the prior year.
Net interest income rose 10.0% year-over-year to $28.1 million, while noninterest expense fell 19.6% to $25.8 million due to lower salaries and fees; however, noninterest income declined 48.0% to $6.7 million following the discontinuation of a banking-as-a-service partnership and the absence of prior-year securities gains.
Balance sheet growth continued with gross loans up 7.5% year-over-year to $2.90 billion and total deposits up 3.0% to $3.16 billion, supported by a strategic reduction in brokered deposits from 31.0% to 14.3% of the total.
Management expressed confidence in durable earnings power for the remainder of the year, citing the positive impact of the September 2026 redemption of 2019 subordinated debt on future interest expenses and a "pivotal" strengthening of the core funding base.
Strategic expansion includes a pilot program for university prepaid cards and deepening treasury management relationships, while credit quality remains strong with nonperforming assets declining to 0.60% of total assets and annualized net charge-offs at 0.01%.