METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2026

Published: 2026-04-24 16:01:08 ET MCBS

Published on 04/24/2026 at 04:01 pm EDT

ATLANTA, April 24, 2026 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $22.3 million, or $0.77 per diluted share, for the first quarter of 2026, compared to $18.3 million, or $0.68 per diluted share, for the fourth quarter of 2025, and $16.3 million, or $0.63 per diluted share, for the first quarter of 2025.

First Quarter 2026 Highlights:

________________________

1 Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

Results of Operations

Net Income

Net income was $22.3 million for the first quarter of 2026, an increase of $4.0 million, or 21.9%, from $18.3 million for the fourth quarter of 2025. This increase was primarily due to an increase in interest income of $10.7 million, offset by an increase in interest expense of $2.2 million, a decrease of $1.5 million noninterest income, an increase in noninterest expenses of $1.0 million and an increase in income tax expense of $2.9 million. Net income increased by $6.0 million, or 36.9%, in the first quarter of 2026 compared to net income of $16.3 million for the first quarter of 2025. This increase was primarily due to an increase in interest income of $18.5 million, an increase in noninterest income of $901,000, offset by an increase in interest expense of $4.5 million, increase in noninterest expenses of $7.6 million, and an increase in income tax expense of $2.1 million.

Net Interest Income and Net Interest Margin

Interest income totaled $71.0 million for the first quarter of 2026, an increase of $10.7 million or 17.8%, from the previous quarter, primarily due to a $495.0 million increase in the average gross loans, $109.0 million for total average investments balance and a 32 basis point increase in loans yield. As compared to the first quarter of 2025, interest income for the first quarter of 2026 increased by $18.5 million, or 35.2%, primarily due to an increase in average balance of gross loans of $856.2 million, and an increase in average balance of investments of $188.0 million, and a 34 basis points increase in the loan yield.

Interest expense totaled $26.5 million for the first quarter of 2026, an increase of $2.2 million, or 8.9%, from the previous quarter, primarily due to a $448.3 million increase in average interest-bearing deposits offset by a $17.6 million decrease in average borrowings and 10 basis point decrease in interest-bearing deposit costs. As compared to the first quarter of 2025, interest expense for the first quarter of 2026 increased by $4.5 million, or 20.7%, primarily due to a $695.3 million increase in average interest-bearing deposits balances and $46.3 million increase in average borrowing balances offset by a 24 basis point decrease in interest-bearing deposit costs and four basis point decrease in borrowing costs. The Company currently has interest rate derivative agreements totaling $625.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.64% as of March 31, 2026). The weighted average pay rate for these interest rate derivatives is 2.78%. During the first quarter of 2026, we recorded a credit to interest expense of $2.3 million from the benefit received on these interest rate derivatives compared to a benefit of $2.9 million and $4.3 million recorded during the fourth quarter of 2025 and the first quarter of 2025, respectively.

The net interest margin for the first quarter of 2026 was 4.08% compared to 3.73% for the previous quarter, an increase of 35 basis points. The yield on average interest-earning assets for the first quarter of 2026 increased by 25 basis points to 6.51% from 6.26% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2026 decreased by 11 basis points to 3.25% from 3.36% for the previous quarter. Average earning assets increased by $604.0 million from the previous quarter, due to an increase in average loan balances of $495.0 million, and an increase of $109.0 million in average total investments. Average interest-bearing liabilities increased by $430.8 million from the previous quarter as average interest-bearing deposits increased by $448.3 million offset by average borrowings decreased of $17.6 million.

As compared to the same period in 2025, the net interest margin for the first quarter of 2026 increased by 41 basis points to 4.08% from 3.67%, primarily due to a 20 basis points increase in the yield on average interest-earning assets of $4.4 billion and a 23 basis points decrease in the cost of average interest-bearing liabilities of $3.3 billion. Average earning assets for the first quarter of 2026 increased by $1.0 billion from the first quarter of 2025, due to a $188.0 million increase in average total investments and a $856.2 million increase in average loans. Average interest-bearing liabilities for the first quarter of 2026 increased by $741.6 million from the first quarter of 2025, driven by the increase in average interest-bearing deposits of $695.3 million, and $46.3 increase in average borrowings.

Noninterest Income

Noninterest income for the first quarter of 2026 was $6.4 million, a decrease of $1.5 million, or 18.7%, from the fourth quarter of 2025, primarily due to lower gains on sale from our residential mortgage loans, lower servicing income from our residential mortgage loans and other service changes, commission and fees, and other income from unrealized gains recognized by our equity securities, offset by higher gains on sale and servicing income from our Small Business Administration ("SBA") loans. SBA loan sales totaled $19.7 million (sales premium of 7.68%) during the first quarter of 2026 compared to $9.7 million (sales premium of 7.13%) during the fourth quarter of 2025. Mortgage loan originations totaled $101.9 million during the first quarter of 2026 compared to $111.7 million during the fourth quarter of 2025. There were no mortgage loan sales during the first quarter of 2026. Mortgage loans sales totaled $197.6 million (average sales premium 1.15%) during the fourth quarter of 2025. During the first quarter of 2026, we recorded a $666,000 fair value impairment recovery on our SBA servicing asset compared to a fair value adjustment charge of $238,000 during the fourth quarter of 2025. We also recorded no fair value impairment charge on our mortgage servicing asset during the first quarter of 2026 compared to a $16,000 fair value impairment recovery recorded during the fourth quarter of 2025.

Compared to the first quarter of 2025, noninterest income for the first quarter of 2026 increased by $901,000, or 16.5%, primarily due to higher gains on sale and servicing income from our SBA loans and service charges on deposits accounts, offset by decreases in gains on sale and servicing income from our residential mortgage loans. During the first quarter of 2025, we recorded a $104,000 fair value adjustment charge on our SBA servicing assets.

Noninterest Expense

Noninterest expense for the first quarter of 2026 totaled $21.4 million, an increase of $1.0 million, or 4.9%, from $20.4 million for the fourth quarter of 2025. This increase was primarily attributable to increases in salaries and employee benefits, occupancy and equipment and other expenses, partially offset by decrease in merger-related expenses.

Compared to the first quarter of 2025, noninterest expense during the first quarter of 2026 increased by $7.6 million, or 55.4%, primarily due to higher salaries and employee benefits, occupancy and equipment expense, data processing expense, security expense, loan expense, core deposit amortization expense and merger-related expenses.

The Company's efficiency ratio was 42.2% for the first quarter of 2026 compared to 46.7% and 38.3% for the fourth quarter of 2025 and first quarter of 2025, respectively.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2026 was 26.2%, compared to 21.6% for the fourth quarter of 2025 and 26.2% for the first quarter of 2025. The effective tax rate was higher during the first quarter of 2026 due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the fourth quarter of 2025.

Balance Sheet

Total assets were $4.7 billion at March 31, 2026, a decrease of $80.0 million, or 1.7%, from $4.8 billion at December 31, 2025, and an increase of $1.03 billion or 28.1%, from $3.7 billion at March 31, 2025. The $80.0 million decrease in total assets at March 31, 2026 compared to December 31, 2025 was primarily due to decreases of $20.6 million in securities, $50.3 million in loans, $9.7 million in loans held for sale, and $4.1 million in Federal Home Loan Bank stock offset by an increase in cash and cash equivalents of $3.9 million. The $1.03 billion increase in total assets at March 31, 2026 compared to March 31, 2025 was primarily due to increases in loans of $868.6 million, cash and cash equivalents of $102.5 million, goodwill and core deposit intangible of $68.4 million, securities of $11.2 million, operating lease right-of-use asset of $6.5 million, servicing asset of $4.1 million, and other assets of $3.9 million partially offset by decreases in loans held for sale of $34.5 million and interest rate derivatives of $12.2 million.

Our investment securities portfolio made up only 0.96% of our total assets at March 31, 2026, compared to 1.38% and 0.93% at December 31, 2025 and March 31, 2025, respectively.

Loans

Loans held for investment were $4.00 billion March 31, 2026, a decrease of $50.3 million, or 1.2%, compared to $4.05 billion at December 31, 2025, and an increase of $868.6 million, or 27.7%, compared to $3.13 billion at March 31, 2025. The decrease in loans at March 31, 2026 compared to December 31, 2025 was due to a $68.0 million decrease in commercial real estate loans and a $4.5 million decrease in commercial and industrial loans, offset by a $14.1 million increase in commercial real estate loans and a $10.7 million increase in construction and development loans. There were no loans classified as held for sale at March 31, 2026. Loans classified as held for sale totaled $9.8 million and $34.5 million at December 31, 2025 and March 31, 2025, respectively.

Deposits were $3.63 billion at March 31, 2026, a decrease of $19.3 million, compared to total deposits of $3.65 billion at December 31, 2025, and an increase of $889.6 million, or 32.5%, compared to total deposits of $2.74 billion at March 31, 2025. The decrease in total deposits at March 31, 2026 compared to December 31, 2025 was due to a $27.4 million decrease in interest-bearing demand deposits, a $66.1 million decrease in time deposits, offset by a $1.1 million increase in savings accounts, $54.7 million increase in money market accounts and a $18.4 million increase in noninterest-bearing demand deposits.

Noninterest-bearing deposits were $799.2 million at March 31, 2026, compared to $780.8 million at December 31, 2025 and $540.0 million at March 31, 2025. Noninterest-bearing deposits constituted 22.0% of total deposits at March 31, 2026, compared to 21.4% at December 31, 2025 and 19.7% at March 31, 2025. Interest-bearing deposits were $2.83 billion at March 31, 2026, compared to $2.87 billion at December 31, 2025 and $2.20 billion at March 31, 2025. Interest-bearing deposits constituted 78.0% of total deposits at March 31, 2026, compared to 78.6% at December 31, 2025 and 80.3% at March 31, 2025.

Uninsured deposits were 31.9% of total deposits at March 31, 2026, compared to 29.6% and 24.3% at December 31, 2025 and March 31, 2025, respectively. As of March 31, 2026, we had $1.69 billion available borrowing capacity at the Federal Home Loan Bank ($989.1 million), Federal Reserve Discount Window ($629.8 million) and various other financial institutions (fed fund lines totaling $67.5 million).

Asset Quality

The Company recorded a recovery for credit losses of $813,000 during the first quarter of 2026, compared to a recovery for credit losses of $39,000 during the fourth quarter of 2025 and a provision for credit losses of $135,000 during the first quarter of 2025. The credit provision expense recorded during the first quarter of 2026 was primarily due to the decrease in reserves mainly due to decrease in loan balances and reserves on individually analyzed loans. Annualized net charge-offs to average loans for the first quarter of 2026 was 0.03%, compared to net recovery of 0.00% for the fourth quarter of 2025 and 0.02% for the first quarter of 2025.

Nonperforming assets totaled $17.2 million, or 0.37% of total assets, at March 31, 2026, a decrease of $8.9 million from $26.1 million, (includes $7.5 million acquired from First IC Corporation ("First IC") after our acquisition of First IC, the parent company of First IC Bank) or 0.55% of total assets, at December 31, 2025, and a decrease of $1.3 million from $18.5 million, or 0.51% of total assets, at March 31, 2025. The decrease in nonperforming assets at March 31, 2026 compared to December 31, 2025 was due to a $9.8 million decrease in nonaccrual loans offset by a $939,000 increase in other real estate owned.

Allowance for credit losses as a percentage of total loans was 0.66% at March 31, 2026, compared to 0.68% at December 31, 2025 and 0.59% at March 31, 2025. Allowance for credit losses as a percentage of nonperforming loans was 166.15% at March 31, 2026, compared to 107.48% and 110.52% at December 31, 2025 and March 31, 2025, 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, as well as fintech companies and other non‑bank financial service providers offering digital, automated or alternative financial products and services; 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 the ongoing conflicts in the Middle East; major political shifts domestically or internationally (including the potential for retaliatory actions by governments, market participants or clients based on diverging perspectives or otherwise and, separately, the recent shutdown of the U.S. federal government; 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 TanPresident and Interim Chief Financial [email protected]

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

(Dollars in thousands)

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Return on average shareholder's equity reconciliation

Average shareholder's equity (GAAP)

494,937

470,299

436,619

428,644

421,679

Less: average accumulated other comprehensive income

(1,679)

(3,593)

(5,552)

(8,737)

(13,089)

Adjusted average shareholder's equity (non-GAAP)

493,258

466,706

431,067

419,907

408,590

Net income (GAAP)

22,314

18,139

17,270

16,826

16,297

Add: First IC-merger related expenses (net of tax effect)

1,238

2,831

222

246

194

Adjusted net income (non-GAAP)

23,552

20,970

17,492

17,072

16,491

Return on average shareholder's equity (GAAP)

18.28

15.30

15.69

15.74

15.67

Adjusted return on average shareholder's equity (non-GAAP)

19.36

17.83

16.10

16.31

16.37

Tangible book value per share reconciliation

Total shareholder's equity (GAAP)

554,156

544,184

445,888

436,100

427,969

Less: goodwill and core deposit intangible

(68,357)

(68,675)

—

Adjusted total shareholder's equity (non-GAAP)

485,799

475,509

445,888

436,100

427,969

Shares of common stock outstanding

28,660,042

28,817,967

25,537,746

25,402,782

Book value per share (GAAP)

19.34

18.88

17.46

17.08

16.85

Tangible book value per share (non-GAAP)

16.95

16.50

17.46

17.08

16.85

Noninterest expense reconciliation

Noninterest expense (GAAP)

21,438

20,434

14,674

14,113

13,799

First IC-merger related expenses

(1,676)

(3,833)

(301)

(333)

(262)

Adjusted noninterest expense (non-GAAP)

19,762

16,601

14,373

13,780

13,537

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands, except per share data)

2026

2025

Selected income statement data:

Interest income

70,990

60,257

54,003

54,049

52,519

Interest expense

26,503

24,332

22,211

21,871

21,965

Net interest income

44,487

35,925

31,792

32,178

30,554

Provision for credit losses

(813)

(39)

(543)

129

135

Noninterest income

6,357

7,817

6,178

5,733

5,456

Noninterest expense

21,438

20,434

14,674

14,113

13,799

Income tax expense

7,905

5,035

6,569

6,843

5,779

Net income

22,314

18,312

17,270

16,826

16,297

Per share data:

Basic income per share

0.78

0.69

0.68

0.66

0.64

Diluted income per share

0.77

0.68

0.67

0.65

0.63

Dividends per share

0.29

0.25

0.23

Book value per share (at period end)

19.34

18.89

17.46

17.08

16.85

Tangible book value per share (at period end)(1)

16.95

16.50

17.46

17.08

16.85

Shares of common stock outstanding

28,660,042

28,817,967

25,537,746

25,402,782

Weighted average diluted shares

29,051,061

26,806,181

25,811,422

25,715,206

25,707,989

Performance ratios:

Return on average assets

1.96

1.80

1.89

1.87

1.85

Return on average equity

18.28

15.45

15.69

15.74

15.67

Adjusted return on average equity (1)

19.36

17.83

16.10

16.31

16.37

Dividend payout ratio

32.49

35.08

37.23

35.01

36.14

Yield on total loans

6.74

6.42

6.37

6.49

6.40

Yield on average earning assets

6.51

6.26

6.24

6.34

6.31

Cost of average interest-bearing liabilities

3.25

3.36

3.42

3.39

3.48

Cost of interest-bearing deposits

3.12

3.22

3.28

3.25

3.36

Net interest margin

4.08

3.73

3.68

3.77

3.67

Efficiency ratio(2)

42.16

46.71

38.65

37.23

38.32

Efficiency ratio - operating (1)(2)

38.87

37.95

37.85

36.35

37.59

Asset quality data (at period end):

Net charge-offs/(recoveries) to average loans held for investment

0.03

(0.00)

0.03

0.01

0.02

Nonperforming assets to gross loans held for investment and OREO

0.43

0.64

0.47

0.49

0.59

ACL to nonperforming loans

166.15

107.48

137.66

129.76

110.52

ACL to loans held for investment

0.66

0.68

0.60

0.59

Balance sheet and capital ratios:

Gross loans held for investment to deposits

111.12

111.84

110.43

116.34

114.73

Noninterest bearing deposits to deposits

22.04

21.42

20.22

20.41

19.73

Investment securities to assets

0.96

1.38

0.94

0.93

Common equity to assets

10.52

9.98

12.29

12.06

11.69

Leverage ratio

10.47

10.00

12.21

11.91

11.76

Common equity tier 1 ratio

16.52

15.90

19.93

19.91

19.23

Tier 1 risk-based capital ratio

16.52

15.90

19.93

19.91

19.23

17.44

16.84

20.74

20.78

20.09

Mortgage and SBA loan data:

Mortgage loans serviced for others

496,552

702,586

538,675

559,112

537,590

Mortgage loan production

101,948

111,717

168,562

93,156

91,122

Mortgage loan sales

—

197,553

18,248

54,309

40,051

SBA/USDA loans serviced for others

699,028

685,481

460,720

480,867

474,143

SBA loan production

20,816

32,575

17,727

29,337

20,012

SBA loan sales

19,733

9,792

13,415

20,707

16,579

____________________________

(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

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands)

2026

2025

ASSETS

Cash and due from banks

373,956

370,832

213,941

273,596

272,317

Federal funds sold

13,645

12,844

13,217

12,415

12,738

Cash and cash equivalents

387,601

383,676

227,158

286,011

285,055

Equity securities

18,564

18,646

18,605

18,481

18,440

Securities available for sale (at fair value)

26,616

47,179

15,365

15,030

15,426

Loans held for investment

4,001,114

4,051,397

2,966,859

3,121,534

3,132,535

Allowance for credit losses

(26,700)

(27,843)

(17,940)

(18,748)

(18,592)

Loans less allowance for credit losses

3,974,414

4,023,554

2,948,919

3,102,786

3,113,943

Loans held for sale

—

9,741

231,259

4,988

34,532

Accrued interest receivable

20,299

20,298

16,912

16,528

16,498

Federal Home Loan Bank stock

23,487

27,565

22,693

Premises and equipment, net

29,633

29,879

17,836

17,872

18,045

Operating lease right-of-use asset

14,412

15,193

7,712

8,197

7,906

Foreclosed real estate, net

1,147

208

919

744

1,707

SBA servicing asset, net

11,267

10,601

6,988

6,823

7,167

Mortgage servicing asset, net

1,484

1,660

1,662

1,676

1,476

Bank owned life insurance

76,424

75,786

75,148

74,520

73,900

Goodwill

56,048

—

Core deposit intangible

12,309

12,627

—

Interest rate derivatives

4,970

6,343

9,435

12,656

17,166

Other assets

29,672

29,396

28,852

26,683

25,771

Total assets

4,688,347

4,768,400

3,629,463

3,615,688

3,659,725

LIABILITIES

Noninterest-bearing deposits

799,190

780,828

544,439

548,906

539,975

Interest-bearing deposits

2,827,484

2,865,173

2,148,645

2,140,587

2,197,055

Total deposits

3,626,674

3,646,001

2,693,084

2,689,493

2,737,030

Federal Home Loan Bank advances

425,000

510,000

425,000

Operating lease liability

14,516

15,306

7,704

8,222

7,962

Accrued interest payable

10,200

10,731

3,567

3,438

3,487

Other liabilities

57,801

42,178

54,220

53,435

58,277

Total liabilities

4,134,191

4,224,216

3,183,575

3,179,588

3,231,756

SHAREHOLDERS' EQUITY

Preferred stock

—

Common stock

1,157

1,159

255

254

Additional paid-in capital

134,660

138,675

51,151

50,212

49,645

Retained earnings

417,750

402,684

390,971

380,046

369,110

Accumulated other comprehensive income

589

1,666

3,511

5,587

8,960

Total shareholders' equity

554,156

544,184

445,888

436,100

427,969

Total liabilities and shareholders' equity

4,688,347

4,768,400

3,629,463

3,615,688

3,659,725

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands)

2026

2025

Interest and dividend income:

Loans, including fees

67,139

57,335

50,975

50,936

50,253

Other investment income

3,730

2,790

2,884

2,970

2,126

Federal funds sold

121

132

144

143

140

Total interest income

70,990

60,257

54,003

54,049

52,519

Interest expense:

Deposits

22,077

19,623

17,799

17,496

17,977

FHLB advances and other borrowings

4,426

4,709

4,412

4,375

3,988

Total interest expense

26,503

24,332

22,211

21,871

21,965

Net interest income

44,487

35,925

31,792

32,178

30,554

Provision (recovery) for credit losses

(813)

(39)

(543)

129

135

Net interest income after provision for loan losses

45,300

35,964

32,335

32,049

30,419

Noninterest income:

Service charges on deposit accounts

848

772

551

505

500

Other service charges, commissions and fees

1,581

1,748

2,376

1,620

1,596

Gain on sale of residential mortgage loans

—

2,808

166

579

399

Mortgage servicing income, net

306

504

516

781

618

Gain on sale of SBA loans

1,045

463

558

643

658

SBA servicing income, net

1,905

800

1,203

642

913

Other income

672

722

808

963

772

Total noninterest income

6,357

7,817

6,178

5,733

5,456

Noninterest expense:

Salaries and employee benefits

11,501

10,674

8,953

8,554

8,493

Occupancy and equipment

2,434

1,581

1,410

1,380

1,417

Data Processing

682

466

394

329

345

Advertising

223

180

161

149

167

Merger-related expenses

1,676

3,833

301

333

262

Other expenses

4,922

3,937

3,455

3,368

3,115

Total noninterest expense

21,438

20,671

14,674

14,113

13,799

Income before provision for income taxes

30,219

23,110

23,839

23,669

22,076

Provision for income taxes

7,905

4,971

6,569

6,843

5,779

Net income available to common shareholders

22,314

18,139

17,270

16,826

16,297

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Average

Interest and

Yield /

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments(1)

318,318

2,882

3.67

221,304

2,551

4.57

159,478

2,098

5.34

Investment securities

61,169

969

6.42

49,212

371

2.99

32,034

168

2.13

Total investments

379,487

3,851

4.12

270,516

2,922

4.29

191,512

2,266

4.80

Construction and development

43,100

794

7.47

35,440

692

7.75

23,321

480

8.35

Commercial real estate

1,290,296

29,836

9.38

1,062,523

22,717

8.48

779,884

16,157

8.40

Commercial and industrial

86,547

1,572

7.37

79,867

1,731

8.60

72,799

1,588

8.85

Residential real estate

2,619,786

34,922

5.41

2,367,289

32,141

5.39

2,308,071

31,986

5.62

Consumer and other

847

7.18

441

48.58

276

61.71

Gross loans(2)

4,040,576

67,139

6.74

3,545,560

57,335

6.42

3,184,351

50,253

6.40

Total earning assets

4,420,063

70,990

6.51

3,816,076

60,257

6.26

3,375,863

52,519

6.31

Noninterest-earning assets

202,774

212,002

197,272

Total assets

4,622,837

4,028,078

3,573,135

Interest-bearing liabilities:

NOW and savings deposits

272,645

1,552

2.31

238,695

1,603

2.66

153,739

952

2.51

Money market deposits

1,175,909

7,506

2.59

1,027,611

6,895

2.66

1,010,471

6,321

2.54

Time deposits

1,417,623

13,019

3.72

1,151,537

11,125

3.83

1,006,677

10,704

4.31

Total interest-bearing deposits

2,866,177

22,077

3.12

2,417,843

19,623

3.22

2,170,887

17,977

3.36

Borrowings

436,344

4,426

4.11

453,928

4,709

4.12

390,000

3,988

4.15

Total interest-bearing liabilities

3,302,521

26,503

3.25

2,871,771

24,332

3.36

2,560,887

21,965

3.48

Noninterest-bearing liabilities:

Noninterest-bearing deposits

774,905

614,242

519,125

Other noninterest-bearing liabilities

50,474

71,766

71,444

Total noninterest-bearing liabilities

825,379

686,008

590,569

Shareholders' equity

494,937

470,299

421,679

Total liabilities and shareholders' equity

4,622,837

4,028,078

3,573,135

Net interest income

44,487

35,925

30,554

Net interest spread

3.26

2.90

2.83

Net interest margin

4.08

3.73

3.67

____________________________

(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

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

% of

(Dollars in thousands)

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Construction and development

52,452

1.3

41,796

1.0

32,415

1.1

30,149

1.0

28,403

0.9

Commercial real estate

1,492,703

37.0

1,560,728

38.3

814,464

27.4

803,384

25.7

792,149

25.2

Commercial and industrial

91,877

2.3

96,360

2.4

69,430

2.3

73,832

2.3

71,518

2.3

Residential real estate

2,392,444

59.4

2,378,311

58.3

2,057,281

69.2

2,221,316

71.0

2,248,028

71.6

Consumer and other

643

—

627

—

325

—

200

—

Gross loans held for investment

4,030,119

100.0

4,077,822

100.0

2,973,915

100.0

3,128,881

100.0

3,140,165

100.0

Unearned income

(10,093)

(6,621)

(7,056)

(7,347)

(7,630)

Loan discounts

(18,912)

(19,804)

—

Allowance for credit losses

(26,700)

(27,843)

(17,940)

(18,748)

(18,592)

Net loans held for investment

3,974,414

4,023,554

2,948,919

3,102,786

3,113,943

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS

As of the Quarter Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands)

2026

2025

Nonaccrual loans

16,070

25,906

13,032

14,448

16,823

Past due loans 90 days or more and still accruing

—

Total non-performing loans

16,070

25,906

13,032

14,448

16,823

Other real estate owned

1,147

208

919

744

1,707

Total non-performing assets

17,217

26,114

13,951

15,192

18,530

Nonperforming loans to gross loans held for investment

0.40

0.64

0.44

0.46

0.54

Nonperforming assets to total assets

0.37

0.55

0.38

0.42

0.51

Allowance for credit losses to non-performing loans

166.15

107.48

137.66

129.76

110.52

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands)

2026

2025

Balance, beginning of period

27,843

17,940

18,748

18,592

18,744

First IC Day 1 ACL balance

—

9,885

—

Net charge-offs/(recoveries):

Construction and development

—

Commercial real estate

185

(1)

110

(1)

Commercial and industrial

(5)

117

(2)

170

Residential real estate

—

Consumer and other

—

Total net charge-offs/(recoveries)

274

(6)

227

169

Provision (recovery) for loan losses

(869)

(581)

216

Balance, end of period

26,700

27,843

17,940

18,748

18,592

Total loans at end of period(1)

4,030,119

4,077,822

2,973,915

3,128,881

3,140,165

Average loans(1)

4,035,706

3,441,913

3,124,291

3,130,515

3,167,085

Net charge-offs/(recoveries) to average loans

0.03

(0.00)

0.03

0.01

0.02

Allowance for loan losses to total loans

0.66

0.68

0.60

0.59

____________________________

(1) Excludes loans held for sale.

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SOURCE MetroCity Bankshares, Inc.