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First Carolina Bank Announces Deposit Partnership with BMTX, Inc. RALEIGH, N.C. (March 22, 2023) – First Carolina Bank (“Bank”) announced today a new partnership with BMTX, Inc. (BMT), a financial technology company and a subsidiary of BM Technologies, Inc. Both companies have entered into a Deposit Processing Services Agreement for a partnership in which the Bank will be the exclusive provider of deposit accounts for customers of BMT’s BankMobile Higher Education Program, subject to regulatory approval. The Higher Education Program primarily provides students with valuable and differentiated bank accounts and debit cards that, among other features, allow students to directly receive money from their college or university due to refunds from financial aid awards, grants, and scholarships, as well as paychecks and other payments. BMT is a leader in facilitating this activity for students as evidenced through its relationships with over 750 higher education campuses nationwide, many of which are situated in the Bank’s marketing footprint. “Our Bank is committed to bringing greater access, convenience, stability, and ultimate financial literacy to students, and being involved in this program allows us to further that mission,” Ron Day, President and CEO, said. “In partnering with BMT, we are matching our strategic intent by aligning with the best in the business. Subject to the receipt of regulatory approval, we anticipate our deposit balances will increase by approximately $525 million once we onboard the Higher Education Program customers. This will become a part of our core funding strategy and further strengthens our balance sheet to meet the growing demand for the Bank more effectively in the markets we serve. Additionally, this partnership will enhance our digital capabilities at a time when our overall customer base is demanding more in terms of technology and ease of access to their financial services through their relationship with us.” Wedbush Securities Inc. initiated the partnership discussions and served as exclusive financial advisor to First Carolina Bank. Covington & Burling LLP served as legal counsel to First Carolina Bank. About First Carolina Bank First Carolina Bank is a North Carolina state-chartered bank headquartered in Rocky Mount, North Carolina, with approximately $2.2 billion in total assets as of February 28, 2023. First Carolina Bank has 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. To learn more about First Carolina Bank, please visit our website at www.firstcarolinabank.com. About BM Technologies, Inc. BM Technologies, Inc. (NYSE American: BMTX) - formerly known as BankMobile - is among the largest Banking-as-a-Service (BaaS) providers in the country, providing access to checking and savings accounts, personal loans, and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. BM Technologies, Inc. (BMTX) is a technology company and is not a bank, which means it provides banking services through its partner bank. More information can be found at www.bmtx.com. Forward-Looking Statements This press release contains forward-looking statements. Forward-looking statements are typically preceded by, followed by or include words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. Actual results or events might differ materially from those explicit or implicit in the forward-looking statements, and readers of this press release should not place undue reliance on such statements. Important factors that could cause actual results to differ materially include, without limitation: loss of key personnel that are critical to our market growth plans in the Rocky Mount area; our ability to grow loans and the banking franchise more generally, which would impact our historical growth rates; the effects of future economic conditions, including impacts from inflation, labor shortages and supply chain issues; changes in governmental fiscal and monetary policies; legislative and regulatory changes; changes in interest rates and the resulting impacts on loan demand; fluctuations in our financial results; privacy, security and other risks associated with our business. First Carolina Bank assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
First Carolina Bank Announces Deposit Partnership with BMTX, Inc.
RALEIGH, N.C. (March 22, 2023) – First Carolina Bank (“Bank”) announced today a new partnership with BMTX, Inc. (BMT), a financial technology company and a subsidiary of BM Technologies, Inc. Both companies have entered into a Deposit Processing Services Agreement for a partnership in which the Bank will be the exclusive provider of deposit accounts for customers of BMT’s BankMobile Higher Education Program, subject to regulatory approval.
The Higher Education Program primarily provides students with valuable and differentiated bank accounts and debit cards that, among other features, allow students to directly receive money from their college or university due to refunds from financial aid awards, grants, and scholarships, as well as paychecks and other payments. BMT is a leader in facilitating this activity for students as evidenced through its relationships with over 750 higher education campuses nationwide, many of which are situated in the Bank’s marketing footprint.
“Our Bank is committed to bringing greater access, convenience, stability, and ultimate financial literacy to students, and being involved in this program allows us to further that mission,” Ron Day, President and CEO, said. “In partnering with BMT, we are matching our strategic intent by aligning with the best in the business. Subject to the receipt of regulatory approval, we anticipate our deposit balances will increase by approximately $525 million once we onboard the Higher Education Program customers. This will become a part of our core funding strategy and further strengthens our balance sheet to meet the growing demand for the Bank more effectively in the markets we serve. Additionally, this partnership will enhance our digital capabilities at a time when our overall customer base is demanding more in terms of technology and ease of access to their financial services through their relationship with us.”
Wedbush Securities Inc. initiated the partnership discussions and served as exclusive financial advisor to First Carolina Bank. Covington & Burling LLP served as legal counsel to First Carolina Bank.
About First Carolina Bank
First Carolina Bank is a North Carolina state-chartered bank headquartered in Rocky Mount, North Carolina, with approximately $2.2 billion in total assets as of February 28, 2023. First Carolina Bank has 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. To learn more about First Carolina Bank, please visit our website at www.firstcarolinabank.com.
About BM Technologies, Inc.
BM Technologies, Inc. (NYSE American: BMTX) - formerly known as BankMobile - is among the largest Banking-as-a-Service (BaaS) providers in the country, providing access to checking and savings accounts, personal loans, and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. BM Technologies, Inc. (BMTX) is a technology company and is not a bank, which means it provides banking services through its partner bank. More information can be found at www.bmtx.com.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are typically preceded by, followed by or include words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. Actual results or events might differ materially from those explicit or implicit in the forward-looking statements, and readers of this press release should not place undue reliance on such statements. Important factors that could cause actual results to differ materially include, without limitation: loss of key personnel that are critical to our market growth plans in the Rocky Mount area; our ability to grow loans and the banking franchise more generally, which would impact our historical growth rates; the effects of future economic conditions, including impacts from inflation, labor shortages and supply chain issues; changes in governmental fiscal and monetary policies; legislative and regulatory changes; changes in interest rates and the resulting impacts on loan demand; fluctuations in our financial results; privacy, security and other risks associated with our business. First Carolina Bank assumes no obligation and does not intend to update these forward-looking statements, except as required by law.