MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $18.3 million, or $0.68 per diluted share, for the fourth quarter of 2025, compared to $17.3 million, or $0.67 per diluted share, for the third quarter of 2025, and $16.2 million, or $0.63 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported net income of $68.7 million, or $2.64 per diluted share, compared to $64.5 million, or $2.52 per diluted share for the year ended December 31, 2024.
Fourth Quarter 2025 Highlights:
— Annualized return on average assets was 1.80%, compared to 1.89% for the third quarter of 2025 and 1.82% for the fourth quarter of 2024.
— Annualized return on average equity was 15.45%, compared to 15.69% for the third quarter of 2025 and 15.84% for the fourth quarter of 2024. Adjusted return on average shareholder’s equity1, which excluding average accumulated other comprehensive income and merger-related was 17.83% for the fourth quarter of 2025, compared to 16.10% for the third quarter of 2025 and 16.28% for the fourth quarter of 2024.
— Efficiency ratio of 46.7%, compared to 38.7% for the third quarter of 2025 and 40.5% for the fourth quarter of 2024.
— Net interest margin increased to 3.73%, compared to 3.68% for the third quarter of 2025 and 3.57% for the fourth quarter of 2024.
— Total loans held for investment increased by $1.1 billion, or 36.6%, to $4.1 billion from the third quarter of 2025. Excluding loans acquired from First IC, loans held for investment increased by $91.5 million, or 3.1%, from the third quarter of 2025.
— Total deposits increased by $952.9 million, or 35.4%, to $3.65 billion from the third quarter of 2025, Excluding deposits acquired from First IC, total deposits increased by $73.8 million, or 2.7%, from the third quarter of 2025.
Year-to-Date 2025 Highlights:
— Return on average assets increased to 1.85% compared to 1.81% for 2024.
— Return on average equity was 15.63%, compared to 16.16% for 2024. Adjusted return on average shareholder’s equity1 was 16.68%, compared to 17.01% for 2024.
— Efficiency ratio was 40.5%, compared to 37.8% for 2024.
— Net interest margin increased by 21 basis points to 3.72% from 3.51% for 2024.
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(1) Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
Acquisition of First IC Corporation and First IC Bank
After the close of business on December 1, 2025, MetroCity completed its previously announced acquisition of First IC Corporation (“First IC”), the parent company of First IC Bank. Chairman and Chief Executive Officer Nack Paek stated, “First IC and MetroCity have long competed with and admired one another and we are pleased to have combined our two organizations to create a better bank for our customers. This partnership strengthens our competitive position and increases our financial flexibility as we continue to build the best bank possible and make a positive impact in the communities we serve.”
Results of Operations
Net Income
Net income was $18.3 million for the fourth quarter of 2025, an increase of $1.0 million, or 6.0%, from $17.3 million for the third quarter of 2025. This increase was primarily due to increases in net interest income of $4.1 million and noninterest income of $1.6 million and a decrease in income tax expense of $1.5 million, offset by increases in noninterest expense of $5.8 million and provision for credit losses of $504,000. Net income increased by $2.1 million, or 12.8%, in the fourth quarter of 2025 compared to net income of $16.2 million for the fourth quarter of 2024. This increase was due to increases in net interest income of $5.9 million and noninterest income of $2.5 million, as well as a decrease in provision for credit losses of $241,000, offset by increases in noninterest expense of $6.1 million and income tax expense of $417,000.
Net income was $68.7 million for the year ended December 31, 2025, an increase of $4.2 million, or 6.5%, from $64.5 million for the year ended December 31, 2024. This increase was due to increases in net interest income of $12.3 million and noninterest income of $2.1 million, as well as a decrease in provision for credit losses of $834,000, offset by increases in noninterest expense $9.6 million and income tax expense of $1.4 million.
Net Interest Income and Net Interest Margin
Interest income totaled $60.3 million for the fourth quarter of 2025, an increase of $6.3 million, or 11.6%, from the third quarter of 2025, primarily due to a $370.6 million increase in the average loan balance and $14.3 million increase in the average total investment balances (both of which are mostly due to acquired First IC earning assets from the First IC acquisition). As compared to the fourth quarter of 2024, interest income for the fourth quarter of 2025 increased by $7.6 million, or 14.5%, primarily due to a $408.2 million increase in average loan balances and a $58.7 million increase in the average total investments balance, as well as an 11 basis points increase in the loan yield, offset by an 101 basis points decrease in the total investments yield. Excluding acquired First IC average earnings assets and related interest income, interest income totaled $54.0 million for the fourth quarter of 2025, a decrease of $38,000, or 0.1%, from the third quarter of 2025, and an increase of $541,000, or 2.4%, from the fourth quarter of 2024.
Interest expense totaled $24.3 million for the fourth quarter of 2025, an increase of $2.1 million, or 9.5%, from the third quarter of 2025, primarily due to a $268.0 million increase in average interest-bearing deposit balances and a $28.9 million increase in average borrowings balances (both of which are mostly due to acquired First IC interest-bearing liabilities from the First IC acquisition), offset by a 6 basis points decrease in interest-bearing deposit costs. As compared to the fourth quarter of 2024, interest expense for the fourth quarter of 2025 increased by $1.8 million, or 7.9%, primarily due to a $267.9 million increase in average interest-bearing deposit balances and a $78.9 million increase in average borrowings balances, offset by a 23 basis points decrease in deposit costs. Excluding acquired First IC average interest-bearing liabilities and related interest expense, interest expense totaled $22.4 million for the fourth quarter of 2025, an increase of $213,000, or 1.0%, from the third quarter of 2025, and a decrease of $130,000, or 0.6%, from the fourth quarter of 2024.
The Company currently has interest rate derivative agreements totaling $825.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.64% as of December 31, 2025). The weighted average pay rate for these interest rate derivatives is 2.62%. During the fourth quarter of 2025, we recorded a credit to interest expense of $2.9 million from the benefit received on these interest rate derivatives compared to a benefit of $3.8 million and $5.1 million recorded during the third quarter of 2025 and the fourth quarter of 2024, respectively.
The net interest margin for the fourth quarter of 2025 was 3.73% compared to 3.68% for the third quarter of 2025, an increase of five basis points. The yield on average interest-earning assets for the fourth quarter of 2025 increased by two basis points to 6.26% from 6.24% for the third quarter of 2025, and the cost of average interest-bearing liabilities for the fourth quarter of 2025 decreased by six basis points to 3.36% from 3.42% for the third quarter of 2025. Average earning assets increased by $384.9 million from the third quarter of 2025, due to an increase of $370.6 million in average loans and an increase of $14.3 million in average total investments, offset by a one basis point decrease in the yield on earnings assets. Average interest-bearing liabilities increased by $297.0 million from the third quarter of 2025 as average interest-bearing deposits increased by $268.0 million and average borrowings increased by $28.9 million. Excluding acquired First IC average assets and liabilities and related interest income and expense, the net interest margin for the fourth quarter of 2025 was 3.66%
As compared to the fourth quarter of 2024, the net interest margin for the fourth quarter of 2025 increased by 16 basis points to 3.73% from 3.57%, primarily due to a 19 basis points decrease in the cost of average interest-bearing liabilities of $2.87 billion and an one basis point increase in the yield on average interest-earning assets of $3.82 billion. Average earning assets for the fourth quarter of 2025 increased by $466.9 million from the fourth quarter of 2024, due to a $408.2 million increase in average loans and a $58.7 million increase in average total investments. Average interest-bearing liabilities for the fourth quarter of 2025 increased by $346.8 million from the fourth quarter of 2024, due to an increase in average interest-bearing deposits of $267.9 million and in increase in average borrowings of $78.9 million.
Noninterest Income
Noninterest income for the fourth quarter of 2025 was $7.8 million, an increase of $1.6 million, or 26.5%, from the third quarter of 2025, primarily due to higher gains on sale of residential mortgage loans and service charges on deposits, offset by lower mortgage loan origination fees due to lower volume, gain on sale and servicing income from our Small Business Administration (“SBA”) loans, servicing income from our residential mortgage loans and other income. Mortgage loan originations totaled $111.7 million during the fourth quarter of 2025 compared to $168.6 million during the third quarter of 2025. Mortgage loan sales totaled $197.6 million (average sales premium of 1.15%) during the fourth quarter of 2025 compared to $18.2 million (average sales premium of 1.06%) during the third quarter of 2025. SBA loan sales totaled $9.7 million (sales premium of 7.13%) during the fourth quarter of 2025 compared to $13.4 million (sales premium of 6.13%) during the third quarter of 2025. During the fourth quarter of 2025, we recorded a $238,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment gain of $166,000 during the third quarter of 2025. We also recorded a $16,000 fair value impairment recovery on our mortgage servicing asset during the fourth quarter of 2025 compared to a $19,000 fair value impairment recovery recorded during the third quarter of 2025.
Compared to the fourth quarter of 2024, noninterest income for the fourth quarter of 2025 increased by $2.5 million, or 46.9%, primarily due to higher gains on sale of our residential mortgage loans and service charges on deposit, offset by lower gains on sale and servicing income from our SBA loans, servicing income from our residential mortgage loans and other income partially from higher unrealized gains on our equity securities. During the fourth quarter of 2024, we recorded a $31,000 fair value adjustment charge on our SBA servicing asset and a $232,000 fair value impairment recovery on our mortgage servicing asset.
Noninterest income for the year ended December 31, 2025 totaled $25.2 million, an increase of $2.1 million, or 9.2%, from the year ended December 31, 2024, primarily due to higher gains on sale of our residential mortgage loans, mortgage loan origination fees from higher mortgage loan volume, service charges on deposits and other income from unrealized gains recognized on our equity securities and increased bank owned life insurance income, offset by lower gains on sale and servicing income from our SBA loans and servicing income from our residential mortgage loans.
Noninterest Expense
Noninterest expense for the fourth quarter of 2025 totaled $20.4 million, an increase of $5.8 million, or 39.3%, from $14.7 million for the third quarter of 2025. This increase was primarily attributable to increases in First IC merger-related expenses and salaries and employee benefits primarily due to the addition of First IC employee payroll for all of December 2025, as well as higher incentive payments and related payroll taxes, higher depreciation, occupancy and security expenses from the addition of First IC locations, FDIC insurance premiums, and professional fees, partially offset by lower loan-related expenses..
Compared to the fourth quarter of 2024, noninterest expense during the fourth quarter of 2025 increased by $6.1 million, or 42.6%, primarily due to First IC merger-related expenses, higher salary and employee benefits, FDIC insurance premiums, equipment and occupancy expenses, data processing expenses, professional fees, security expense and loan-related expenses, partially offset by lower other real estate owned related expenses.
Noninterest expense for the year ended December 31, 2025 totaled $63.0 million, an increase of $9.6 million, or 18.1%, from $53.4 million for the year ended December 31, 2024. This increase was primarily attributable to increases in First IC merger-related expenses, salaries and employee benefits partially due to higher base salaries, the addition of First IC employees, commissions and incentives, employee insurance and stock based compensation, as well as higher expenses related to depreciation, occupancy, data processing, security, loans and professional services. These expense increases were partially offset by lower other real estate owned related expenses.
The Company’s efficiency ratio was 46.7% for the fourth quarter of 2025 compared to 38.7% and 40.5% for the third quarter of 2025 and fourth quarter of 2024, respectively. For the year ended December 31, 2025, the efficiency ratio was 40.5% compared to 37.8% for the year ended December 31, 2024.
Income Tax Expense
The Company’s effective tax rate for the fourth quarter of 2025 was 21.6%, compared to 27.6% for the third quarter of 2025 and 22.1% for the fourth quarter of 2024. The Company’s effective tax rate for the year ended December 31, 2025 was 26.1% compared to 26.1% for the year ended December 31, 2024. The lower effective tax rate during the fourth quarter of 2025 was due to a tax provision to tax return adjustment recorded for our 2024 state tax returns filed during 2025, as well as a lower combined state tax rate from the First IC acquisition.
Balance Sheet
Total Assets
Total assets were $4.8 billion at December 31, 2025, an increase of $1.14 billion, or 31.4%, from $3.63 billion at September 30, 2025, and an increase of $1.17 billion, or 32.7%, from $3.59 billion at December 31, 2024. Excluding $1.19 billion of assets acquired from First IC (including goodwill and core deposit intangibles), total assets were $3.58 billion at December 31, 2025, a decrease of $52.8 million, or 1.5%, from $3.63 billion at September 30, 2025, and a decrease of $17.3 million, or 053%, from $3.59 billion at December 31, 2024. The $52.8 million decrease in total assets at December 31, 2025 compared to September 30, 2025 was primarily due to decreases in loans held for sale of $221.5 million, other assets of $4.5 million and interest rate derivatives of $3.1 million, partially offset by increases in cash and due from banks of $86.9 million and loans held for investment of $91.5 million. The $17.3 million decrease in total assets at December 31, 2025 compared to December 31, 2024 was primarily due to decreases in loans held for investment of $99.6 million and interest rate derivatives of $15.4 million, partially offset by increases in cash and due from banks of $64.5 million, other assets of $13.4 million, loans held for sale of $9.7 million, equity securities of $8.4 million, bank owned life insurance of $2.5 million and Federal Home Loan Bank stock of $2.4 million.
Our investment securities portfolio is made up only 1.38% of our total assets at December 31, 2025 compared to 0.94% and 0.77% at September 30, 2025 and December 31, 2024, respectively.
Loans
Loans held for investment were $4.05 billion at December 31, 2025, an increase of $1.08 billion, or 36.6%, compared to $2.97 billion at September 30, 2025, and an increase of $893.5 million, or 28.3%, compared to $3.13 billion at December 31, 2024. Excluding $993.0 million of loans acquired from First IC, loans held for investment were $3.06 billion at December 31, 2025, an increase of $91.5 million, or 3.1%, compared to $2.97 billion at September 30, 2025, and a decrease of $99.6 million, or 3.2%, compared to $3.16 billion at December 31, 2024. The increase in loans at December 31, 2025 compared to September 30, 2025 was due to a $55.6 million increase in residential mortgage loans, a $8.1 million increase in construction and development loans, a $27.1 million increase in commercial real estate loans and a $4.2 million increase in commercial and industrial loans. Loans classified as held for sale totaled $9.7 million at December 31, 2025 compared to $231.3 million at September 30, 2025. No loans were classified as held for sale at December 31, 2024. The significant decrease in loans held for sale at December 31, 2025 compared to September 30, 2025 was done to provide the liquidity needed for the First IC merger closing.
Deposits
Total deposits were $3.65 billion at September 30, 2025, an increase of $952.9 million, or 35.4%, compared to total deposits of $2.69 billion at September 30, 2025, and an increase of $909.2 million, or 33.2%, compared to total deposits of $2.74 billion at December 30, 2024. Excluding $877.4 million of deposits acquired from First IC, total deposits were $2.77 billion at December 31, 2025, an increase of $75.6 million, or 2.8%, compared to total deposits of $2.69 billion at September 30, 2025, and an increase of $31.8 million, or 1.2%, compared to total deposits of $2.74 billion at December 31, 2024. The increase in total deposits at December 31, 2025 compared to September 30, 2025 was due to a $84.1 million increase in money market accounts (including a $70.4 million decrease in brokered money market accounts) and a $13.8 million increase in interest-bearing demand deposits, offset by a $14.2 million decrease in noninterest-bearing demand deposits, a $9.7 million decrease in time deposits and a $139,000 decrease in savings accounts.
Noninterest-bearing deposits were $780.8 million at December 31, 2025 (includes noninterest-bearing deposits of $249.2 million acquired from First IC), compared to $544.4 million at September 30, 2025 and $536.3 million at December 31, 2024. Noninterest-bearing deposits constituted 21.4% of total deposits at December 31, 2025, compared to 20.2% of total deposits at September 30, 2025 and 19.6% at December 31, 2024. Interest-bearing deposits were $2.87 billion at December 31, 2025 (includes interest-bearing deposits of $628.2 million acquired from First IC), compared to $2.15 billion at September 30, 2025 and $2.20 billion at December 31, 2024. Interest-bearing deposits constituted 78.6% of total deposits at December 31, 2025, compared to 79.8% at September 30, 2025 and 80.4% at December 31, 2024.
Uninsured deposits were 29.6% of total deposits at December 31, 2025, compared to 26.1% and 24.1% at September 30, 2025 and December 31, 2024, respectively. As of December 31, 2025, we had $1.23 billion of available borrowing capacity at the Federal Home Loan Bank ($577.9 million), Federal Reserve Discount Window ($600.4 million) and various other financial institutions (fed fund lines totaling $52.5 million).
Asset Quality
The Company recorded a credit provision for credit losses of $39,000 during the fourth quarter of 2025, compared to a credit provision for credit losses of $543,000 during the third quarter of 2025 and a provision for credit losses of $202,000 during the fourth quarter of 2024. The credit provision recorded during the fourth quarter of 2025 was primarily due to the decrease in reserves allocated to unfunded commitments and acquired First IC loans due to decreased balances since merger close, offset by increases in reserves allocated to our individually analyzed loans, as well as the increase in general reserves allocated to our residential mortgage loan portfolio. Annualized net charge-offs to average loans for the fourth quarter of 2025 was a net recovery of 0.00%, compared to net charge-offs of 0.03% for the third quarter of 2025 and 0.01% for the fourth quarter of 2024.
The Company adopted ASU 2025-08 during the fourth quarter 2025. ASU 2025-08 allowed us to record an allowance for credit losses balance on Day 1 for all loans acquired from First IC. The estimated Day 1 allowance for credit losses for First IC acquired loans was $9.9 million.
Nonperforming assets totaled $26.1 million (includes $7.5 million acquired from First IC), or 0.55% of total assets, at December 31, 2025, an increase of $12.2 million from $14.0 million, or 0.38% of total assets, at September 30, 2025, and an increase of $7.7 million from $18.4 million, or 0.51% of total assets, at December 31, 2024. Excluding nonperforming assets acquired from First IC, nonperforming assets increased by $4.6 million at December 31, 2025 compared to September 30, 2025. This increase was due to a $5.3 million increase in nonaccrual loans offset by a $711,000 decrease in other real estate owned.
Allowance for credit losses as a percentage of total loans was 0.68% at December 31, 2025, compared to 0.60% at September 30, 2025 and 0.59% at December 31, 2024. Allowance for credit losses as a percentage of nonperforming loans was 107.48% at December 31, 2025, compared to 137.66% at September 30, 2025 and 104.08% at December 31, 2024, respectively.
About MetroCity Bankshares, Inc.
MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 30 full-service branch locations and two loan production offices in multi-ethnic communities in Alabama, California, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.
Forward-Looking Statements
Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, increasing insurance costs, changes in interest rates, including changes to the federal funds rate, which could have an adverse effect on the Company’s profitability; impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers’ businesses; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposits, liquidity and the regulatory response thereto; risks arising from negative media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; risks associated with the recent merger of First IC with the Company (the “Merger”), including the risk that the cost savings and any revenue synergies may not be realized or take longer than anticipated to be realized as well as disruption with customers, suppliers, employee or other business partners relationships; the risk of successful integration of First IC’s business into the Company; the reaction of each of the Company’s and First IC’s customers, suppliers, employees or other business partners to the Merger; the risk that the integration of First IC’s operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; general competitive, economic, political, and market conditions; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company’s customers; the effects of war or other conflicts, including civil unrest; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs, those related to credit card interest rates, and legislative, regulatory or supervisory actions related to so-called “de-banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the “SEC”), and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.
Contacts
Farid Tan
Lucas Stewart
President Chief Financial Officer
770-455-4978
678-580-6414
faridtan@metrocitybank.bank lucasstewart@metrocitybank.bank
Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The measures entitled adjusted return on average shareholder’s equity and tangible book value per share are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholder’s equity and book value per share, respectively. Adjusted return on average shareholder’s equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.
Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.
These disclosures should not be considered an alternative to GAAP. The computations of adjusted return on average shareholder’s equity and tangible book value per share and the reconciliation of these measures to return on average shareholder’s equity and book value per share are set forth in the table below.
METROCITY BANKSHARES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
As of or For the Three Months Ended As of or For the Year Ended
(Dollars in thousands) December 31, 2025 September 30,
2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Return on average
shareholder's equity
reconciliation
Average shareholder's $
470,299 $
436,619 $
428,644 $
421,679 $
407,705 $
439,436 $
399,170
equity (GAAP)
Less: average (3,593) (5,552) (8,737) (13,089) (10,888) (7,711) (19,894)
accumulated other
comprehensive income
Adjusted average $
466,706 $
431,067 $
419,907 $
408,590 $
396,817 $
431,725 $
379,276
shareholder's equity
(non-GAAP)
Net income (GAAP) $
18,312 $
17,270 $
16,826 $
16,297 $
16,235 $
68,705 $
64,504
Add: First IC-merger 2,657 222 246 194 3,320
related expenses (net of
tax effect)
Adjusted net income $
20,969 $
17,492 $
17,072 $
16,491 $
16,235 $
72,025 $
64,504
(non-GAAP)
Return on average 15.45 15.69 15.74 15.67 15.84 15.63 16.16
% % % % % % %
shareholder's equity
(GAAP)
Adjusted return on 17.83 16.10 16.31 16.37 16.28 16.68 17.01
% % % % % % %
average shareholder's
equity (non-GAAP)
Tangible book value per
share reconciliation
Total shareholder's equity $
544,357 $
445,888 $
436,100 $
427,969 $
421,353 $
544,357 $
421,353
(GAAP)
Less: goodwill and core (68,675) (68,675)
deposit intangible
Adjust total shareholder's $
475,682 $
445,888 $
436,100 $
427,969 $
421,353 $
475,682 $
421,353
equity (non-GAAP)
Shares of common stock 28,817,967 25,537,746 25,537,746 25,402,782 25,402,782 28,817,967 25,402,782
outstanding
Book value per share 18.89 17.46 17.08 16.85 16.59 18.89 16.59
% % % % % % %
(GAAP)
Tangible book value per 16.51 17.46 17.08 16.85 16.59 16.51 16.59
% % % % % % %
share (non-GAAP)
METROCITY BANKSHARES, INC.
SELECTED FINANCIAL DATA
As of and for the Three Months Ended As of and for the Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
(Dollars in thousands, except per share data) 2025 2025 2025 2025 2024 2025 2024
Selected income statement data:
Interest income $
60,257 $
54,003 $
54,049 $
52,519 $
52,614 $
220,828 $
212,913
Interest expense 24,332 22,211 21,871 21,965 22,554 90,379 94,767
Net interest income 35,925 31,792 32,178 30,554 30,060 130,449 118,146
Provision for credit losses (39) (543) 129 135 202 (318) 516
Noninterest income 7,817 6,178 5,733 5,456 5,321 25,184 23,063
Noninterest expense 20,434 14,674 14,113 13,799 14,326 63,020 53,379
Income tax expense 5,035 6,569 6,843 5,779 4,618 24,226 22,810
Net income 18,312 17,270 16,826 16,297 16,235 68,705 64,504
Per share data:
Basic income per share $
0.69 $
0.68 $
0.66 $
0.64 $
0.64 $
2.67 $
2.55
Diluted income per share $
0.68 $
0.67 $
0.65 $
0.63 $
0.63 $
2.64 $
2.52
Dividends per share $
0.25 $
0.25 $
0.23 $
0.23 $
0.23 $
0.96 $
0.83
Book value per share (at period end) $
18.89 $
17.46 $
17.08 $
16.85 $
16.59 $
18.89 $
16.59
Tangible book value per share (at period end)(1) $
16.51 $
17.46 $
17.08 $
16.85 $
16.59 $
16.51 $
16.59
Shares of common stock outstanding 28,817,967 25,537,746 25,537,746 25,402,782 25,402,782 28,817,967 25,402,782
Weighted average diluted shares 26,806,181 25,811,422 25,715,206 25,707,989 25,659,483 26,005,582 25,582,121
Performance ratios:
Return on average assets 1.80 1.89 1.87 1.85 1.82 1.85 1.81
% % % % % % %
Return on average equity 15.45 15.69 15.74 15.67 15.84 15.63 16.16
Dividend payout ratio 35.08 37.23 35.01 36.14 36.18 35.85 32.80
Yield on total loans 6.42 6.37 6.49 6.40 6.31 6.42 6.38
Yield on average earning assets 6.26 6.24 6.34 6.31 6.25 6.29 6.33
Cost of average interest-bearing liabilities 3.36 3.42 3.39 3.48 3.55 3.41 3.72
Cost of interest-bearing deposits 3.22 3.28 3.25 3.36 3.45 3.28 3.67
Net interest margin 3.73 3.68 3.77 3.67 3.57 3.72 3.51
Efficiency ratio(2) 46.71 38.65 37.23 38.32 40.49 40.49 37.80
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment (0.00) 0.03 0.01 0.02 0.01 0.01 0.00
% % % % % % %
Nonperforming assets to gross loans held for investment and OREO 0.64 0.47 0.49 0.59 0.58 0.64 0.58
ACL to nonperforming loans 107.48 137.66 129.76 110.52 104.08 107.48 104.08
ACL to loans held for investment 0.68 0.60 0.60 0.59 0.59 0.68 0.59
Balance sheet and capital ratios:
Gross loans held for investment to deposits 111.84 110.43 116.34 114.73 115.66 111.84 115.66
% % % % % % %
Noninterest bearing deposits to deposits 21.42 20.22 20.41 19.73 19.60 21.42 19.60
Investment securities to assets 1.38 0.94 0.93 0.93 0.77 1.38 0.77
Common equity to assets 9.98 12.29 12.06 11.69 11.72 9.98 11.72
Leverage ratio 10.00 12.21 11.91 11.76 11.57 10.00 11.42
Common equity tier 1 ratio 15.90 19.93 19.91 19.23 19.17 15.90 19.17
Tier 1 risk-based capital ratio 15.90 19.93 19.91 19.23 19.17 15.90 19.17
Total risk-based capital ratio 16.84 20.74 20.78 20.09 20.05 16.84 20.05
Mortgage and SBA loan data:
Mortgage loans serviced for others $
702,586 $
538,675 $
559,112 $
537,590 $
527,039 $
702,586 $
527,039
Mortgage loan production 111,717 168,562 93,156 91,122 103,250 464,557 413,677
Mortgage loan sales 197,553 18,248 54,309 40,051 310,161 187,490
SBA/USDA loans serviced for others 685,481 460,720 480,867 474,143 479,669 685,481 479,669
SBA loan production 32,575 17,727 29,337 20,012 35,730 100,051 90,815
SBA loan sales 9,792 13,415 20,707 16,579 19,236 60,493 72,159
(1) Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for
a reconciliation to GAAP.
(2)
Represents noninterest expense divided by the sum of net interest income plus noninterest income.
METROCITY BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of the Quarter Ended
December 31, September 30, June 30, March 31, December 31,
(Dollars in thousands) 2025 2025 2025 2025 2024
ASSETS
Cash and due from banks $
370,832 $
213,941 $
273,596 $
272,317 $
236,338
Federal funds sold 12,844 13,217 12,415 12,738 13,537
Cash and cash equivalents 383,676 227,158 286,011 285,055 249,875
Equity securities 18,646 18,605 18,481 18,440 10,300
Securities available for sale (at fair value) 47,179 15,365 15,030 15,426 17,391
Loans held for investment 4,051,397 2,966,859 3,121,534 3,132,535 3,157,935
Allowance for credit losses (27,843) (17,940) (18,748) (18,592) (18,744)
Loans less allowance for credit losses 4,023,554 2,948,919 3,102,786 3,113,943 3,139,191
Loans held for sale 9,741 231,259 4,988 34,532
Accrued interest receivable 20,298 16,912 16,528 16,498 15,858
Federal Home Loan Bank stock 27,565 22,693 22,693 22,693 20,251
Premises and equipment, net 29,879 17,836 17,872 18,045 18,276
Operating lease right-of-use asset 15,193 7,712 8,197 7,906 7,850
Foreclosed real estate, net 208 919 744 1,707 427
SBA servicing asset, net 10,601 6,988 6,823 7,167 7,274
Mortgage servicing asset, net 1,660 1,662 1,676 1,476 1,409
Bank owned life insurance 75,786 75,148 74,520 73,900 73,285
Goodwill 56,048
Core deposit intangible 12,627
Interest rate derivatives 6,343 9,435 12,656 17,166 21,790
Other assets 29,391 28,852 26,683 25,771 10,868
Total assets $
4,768,395 $
3,629,463 $
3,615,688 $
3,659,725 $
3,594,045
LIABILITIES
Noninterest-bearing deposits $
780,828 $
544,439 $
548,906 $
539,975 $
536,276
Interest-bearing deposits 2,865,173 2,148,645 2,140,587 2,197,055 2,200,522
Total deposits 3,646,001 2,693,084 2,689,493 2,737,030 2,736,798
Federal Home Loan Bank advances 510,000 425,000 425,000 425,000 375,000
Operating lease liability 15,306 7,704 8,222 7,962 7,940
Accrued interest payable 10,731 3,567 3,438 3,487 3,498
Other liabilities 42,000 54,220 53,435 58,277 49,456
Total liabilities $
4,224,038 $
3,183,575 $
3,179,588 $
3,231,756 $
3,172,692
SHAREHOLDERS' EQUITY
Preferred stock
Common stock 1,159 255 255 254 254
Additional paid-in capital 138,675 51,151 50,212 49,645 49,216
Retained earnings 402,857 390,971 380,046 369,110 358,704
Accumulated other comprehensive income 1,666 3,511 5,587 8,960 13,179
Total shareholders' equity 544,357 445,888 436,100 427,969 421,353
Total liabilities and shareholders' equity $
4,768,395 $
3,629,463 $
3,615,688 $
3,659,725 $
3,594,045
METROCITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
(Dollars in thousands) 2025 2025 2025 2025 2024 2025 2024
Interest and dividend income:
Loans, including fees $
57,335 $
50,975 $
50,936 $
50,253 $
49,790 $
209,499 $
200,770
Other investment income 2,790 2,884 2,970 2,126 2,663 10,770 11,838
Federal funds sold 132 144 143 140 161 559 305
Total interest income 60,257 54,003 54,049 52,519 52,614 220,828 212,913
Interest expense:
Deposits 19,623 17,799 17,496 17,977 18,618 72,895 80,060
FHLB advances and other borrowings 4,709 4,412 4,375 3,988 3,936 17,484 14,707
Total interest expense 24,332 22,211 21,871 21,965 22,554 90,379 94,767
Net interest income 35,925 31,792 32,178 30,554 30,060 130,449 118,146
Provision for credit losses (39) (543) 129 135 202 (318) 516
Net interest income after provision for loan losses 35,964 32,335 32,049 30,419 29,858 130,767 117,630
Noninterest income:
Service charges on deposit accounts 772 551 505 500 563 2,328 2,073
Other service charges, commissions and fees 1,748 2,376 1,620 1,596 1,748 7,340 6,848
Gain on sale of residential mortgage loans 2,808 166 579 399 3,952 1,914
Mortgage servicing income, net 504 516 781 618 690 2,419 2,448
Gain on sale of SBA loans 463 558 643 658 811 2,322 2,945
SBA servicing income, net 800 1,203 642 913 956 3,558 4,243
Other income 722 808 963 772 553 3,265 2,592
Total noninterest income 7,817 6,178 5,733 5,456 5,321 25,184 23,063
Noninterest expense:
Salaries and employee benefits 10,674 8,953 8,554 8,493 9,277 36,674 33,207
Occupancy and equipment 1,581 1,410 1,380 1,417 1,406 5,788 5,524
Data Processing 466 394 329 345 335 1,534 1,293
Advertising 180 161 149 167 160 657 634
Merger-related expenses 3,596 301 333 262 4,492
Other expenses 3,937 3,455 3,368 3,115 3,148 13,875 12,721
Total noninterest expense 20,434 14,674 14,113 13,799 14,326 63,020 53,379
Income before provision for income taxes 23,347 23,839 23,669 22,076 20,853 92,931 87,314
Provision for income taxes 5,035 6,569 6,843 5,779 4,618 24,226 22,810
Net income available to common shareholders $
18,312 $
17,270 $
16,826 $
16,297 $
16,235 $
68,705 $
64,504
METROCITY BANKSHARES, INC.
QTD AVERAGE BALANCES AND YIELDS/RATES
Three Months Ended
December 31, 2025 September 30, 2025 December 31, 2024
Average Interest Yield / Average Interest Yield / Average Interest
and and and Yield /
(Dollars in thousands) Balance Fees Rate Balance Fees Rate Balance Fees Rate
Earning Assets:
Federal funds sold and other investments(1) $
221,304 $
2,551 4.57 $
219,283 $
2,760 4.99 $
180,628 $
2,560 5.64
% % %
Investment securities 49,212 371 2.99 36,960 268 2.88 31,208 264 3.37
Total investments 270,516 2,922 4.29 256,243 3,028 4.69 211,836 2,824 5.30
Construction and development 35,440 692 7.75 29,130 613 8.35 17,974 384 8.50
Commercial real estate 1,062,523 22,717 8.48 812,759 17,239 8.42 757,937 16,481 8.65
Commercial and industrial 79,867 1,731 8.60 71,655 1,600 8.86 73,468 1,703 9.22
Residential real estate 2,367,289 32,141 5.39 2,261,108 31,480 5.52 2,287,731 31,172 5.42
Consumer and other 441 54 48.58 327 43 52.17 282 50 70.54
Gross loans(2) 3,545,560 57,335 6.42 3,174,979 50,975 6.37 3,137,392 49,790 6.31
Total earning assets 3,816,076 60,257 6.26 3,431,222 54,003 6.24 3,349,228 52,614 6.25
Noninterest-earning assets 212,002 193,365 192,088
Total assets 4,028,078 3,624,587 3,541,316
Interest-bearing liabilities:
NOW and savings deposits 238,695 1,603 2.66 188,576 1,476 3.11 133,728 685 2.04
Money market deposits 1,027,611 6,895 2.66 974,500 6,480 2.64 991,207 6,347 2.55
Time deposits 1,151,537 11,125 3.83 986,719 9,843 3.96 1,025,049 11,586 4.50
Total interest-bearing deposits 2,417,843 19,623 3.22 2,149,795 17,799 3.28 2,149,984 18,618 3.45
Borrowings 453,928 4,709 4.12 425,000 4,412 4.12 375,000 3,936 4.18
Total interest-bearing liabilities 2,871,771 24,332 3.36 2,574,795 22,211 3.42 2,524,984 22,554 3.55
Noninterest-bearing liabilities:
Noninterest-bearing deposits 614,242 538,755 533,931
Other noninterest-bearing liabilities 71,766 74,418 74,696
Total noninterest-bearing liabilities 686,008 613,173 608,627
Shareholders' equity 470,299 436,619 407,705
Total liabilities and shareholders' equity $
4,028,078 $
3,624,587 $
3,541,316
Net interest income $
35,925 $
31,792 $
30,060
Net interest spread 2.90 2.82 2.70
Net interest margin 3.73 3.68 3.57
______________________________________________
(1) Includes income and average balances for term federal funds sold, interest-earning cash accounts and other
miscellaneous interest-earning assets.
(2)
Average loan balances include nonaccrual loans and loans held for sale.
METROCITY BANKSHARES, INC.
YTD AVERAGE BALANCES AND YIELDS/RATES
Year Ended
December 31, 2025 December 31, 2024
Average Interest Yield / Average Interest
and and Yield /
(Dollars in thousands) Balance Fees Rate Balance Fees Rate
Earning Assets:
Federal funds sold and other investments(1) $
208,059 $
10,257 4.93 $
185,696 $
11,289 6.08
% %
Investment securities 38,826 1,072 2.76 31,373 854 2.72
Total investments 246,885 11,329 4.59 217,069 12,143 5.59
Construction and development 29,061 2,365 8.14 17,148 1,511 8.81
Commercial real estate 865,860 73,725 8.51 738,200 66,751 9.04
Commercial and industrial 73,896 6,462 8.74 67,964 6,597 9.71
Residential real estate 2,294,620 126,744 5.52 2,321,075 125,737 5.42
Consumer and other 353 203 57.51 304 174 57.24
Gross loans(2) 3,263,790 209,499 6.42 3,144,691 200,770 6.38
Total earning assets 3,510,675 220,828 6.29 3,361,760 212,913 6.33
Noninterest-earning assets 199,348 209,058
Total assets 3,710,023 3,570,818
Interest-bearing liabilities:
NOW and savings deposits 186,114 5,119 2.75 138,827 3,537 2.55
Money market deposits 1,011,090 26,512 2.62 1,012,309 28,331 2.80
Time deposits 1,027,849 41,264 4.01 1,031,942 48,192 4.67
Total interest-bearing deposits 2,225,053 72,895 3.28 2,183,078 80,060 3.67
Borrowings 423,883 17,484 4.12 365,990 14,707 4.02
Total interest-bearing liabilities 2,648,936 90,379 3.41 2,549,068 94,767 3.72
Noninterest-bearing liabilities:
Noninterest-bearing deposits 549,337 536,084
Other noninterest-bearing liabilities 72,314 86,496
Total noninterest-bearing liabilities 621,651 622,580
Shareholders' equity 439,436 399,170
Total liabilities and shareholders' equity $
3,710,023 $
3,570,818
Net interest income $
130,449 $
118,146
Net interest spread 2.88 2.61
Net interest margin 3.72 3.51
______________________________________________
(1) Includes income and average balances for term federal funds sold, interest-earning cash accounts and other
miscellaneous interest-earning assets.
(2)
Average loan balances include nonaccrual loans and loans held for sale.
METROCITY BANKSHARES, INC.
LOAN DATA
As of the Quarter Ended
December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024
% of % of % of % of % of
(Dollars in thousands) Amount Total Amount Total Amount Total Amount Total Amount Total
Construction and development $
41,796 1.0 $
32,415 1.1 $
30,149 1.0 $
28,403 0.9 $
21,569 0.7
% % % % %
Commercial real estate 1,560,728 38.3 814,464 27.4 803,384 25.7 792,149 25.2 762,033 24.1
Commercial and industrial 96,360 2.4 69,430 2.3 73,832 2.3 71,518 2.3 78,220 2.5
Residential real estate 2,378,311 58.3 2,057,281 69.2 2,221,316 71.0 2,248,028 71.6 2,303,234 72.7
Consumer and other 627 325 200 67 260
Gross loans held for investment $
4,077,822 100.0 $
2,973,915 100.0 $
3,128,881 100.0 $
3,140,165 100.0 $
3,165,316 100.0
% % % % %
Unearned income (6,621) (7,056) (7,347) (7,630) (7,381)
Loan discounts (19,804)
Allowance for credit losses (27,843) (17,940) (18,748) (18,592) (18,744)
Net loans held for investment $
4,023,554 $
2,948,919 $
3,102,786 $
3,113,943 $
3,139,191
METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS
As of the Quarter Ended
December 31, September 30, June 30, March 31, December 31,
(Dollars in thousands) 2025 2025 2025 2025 2024
Nonaccrual loans $
25,906 $
13,032 $
14,448 $
16,823 $
18,010
Past due loans 90 days or more and still accruing
Total non-performing loans 25,906 13,032 14,448 16,823 18,010
Other real estate owned 208 919 744 1,707 427
Total non-performing assets $
26,114 $
13,951 $
15,192 $
18,530 $
18,437
Nonperforming loans to gross loans held for investment 0.64 0.44 0.46
% % % %
% 0.54 0.57
Nonperforming assets to total assets 0.55 0.38 0.42 0.51 0.51
Allowance for credit losses to non-performing loans 107.48 137.66 129.76 110.52 104.08
METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES
As of and for the Three Months Ended As of and for the Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
(Dollars in thousands) 2025 2025 2025 2025 2024 2025 2024
Balance, beginning of period $
17,940 $
18,748 $
18,592 $
18,744 $
18,589 $
18,744 $
18,112
First IC Day 1 ACL balance 9,885 9,885
Net charge-offs/(recoveries):
Construction and development
Commercial real estate (1) 110 62 (1) 170 (83)
Commercial and industrial (5) 117 (2) 170 99 280 119
Residential real estate
Consumer and other
Total net charge-offs/(recoveries) (6) 227 60 169 99 450 36
Provision for loan losses 12 (581) 216 17 254 (336) 668
Balance, end of period $
27,843 $
17,940 $
18,748 $
18,592 $
18,744 $
27,843 $
18,744
Total loans at end of period(1) $
4,077,822 $
2,973,915 $
3,128,881 $
3,140,165 $
3,165,316 $
4,077,822 $
3,165,316
Average loans(1) $
3,441,913 $
3,124,291 $
3,130,515 $
3,167,085 $
3,135,093 $
3,202,087 $
3,125,389
Net charge-offs/(recoveries) to average loans (0.00) 0.03 0.01 0.02 0.01 0.01 0.00
% % % % % % %
Allowance for loan losses to total loans 0.68 0.60 0.60 0.59 0.59 0.68 0.59
______________________________________________
(1)
Excludes loans held for sale.
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