ATLANTA, Oct. 17, 2025 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ:MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $17.3 million, or $0.67 per diluted share, for the third quarter of 2025, compared to $16.8 million, or $0.65 per diluted share, for the second quarter of 2025, and $16.7 million, or $0.65 per diluted share, for the third quarter of 2024. For the nine months ended September 30, 2025, the Company reported net income of $50.4 million, or $1.96 per diluted share, compared to $48.3 million, or $1.89 per diluted share, for the same period in 2024.

Third Quarter 2025 Highlights:

Annualized return on average assets was 1.89%, compared to 1.87% for the second quarter of 2025 and 1.86% for the third quarter of 2024.
Annualized return on average equity was 15.69%, compared to 15.74% for the second quarter of 2025 and 16.26% for the third quarter of 2024. Return on average equity, excluding average accumulated other comprehensive income and merger-related expenses (non-GAAP financial measurement), was 16.17% for the third quarter of 2025, compared to 16.39% for the second quarter of 2025 and 17.25% for the third quarter of 2024.
Efficiency ratio of 38.7%, compared to 37.2% for the second quarter of 2025 and 37.0% for the third quarter of 2024.
Net interest margin was 3.68%, compared to 3.77% for the second quarter of 2025 and 3.58% for the third quarter of 2024.
Total loans, including loans held for sale, increased by $71.6 million to $3.20 billion from the second quarter of 2025.

Year-to-Date 2025 Highlights:

Return on average assets increased to 1.87% for the nine months ended September 30, 2025, compared to 1.80% for the same period in 2024.
Return on average equity was 15.70% for the nine months ended September 30, 2025, compared to 16.27% for the same period in 2024. Return on average equity, excluding average accumulated other comprehensive income and merger-related expenses (non-GAAP financial measurement), was 16.33% for the nine months ended September 30, 2025, compared to 17.27% for the same period in 2024.
Efficiency ratio of 38.1% for the nine months ended September 30, 2025, compared to 36.9% for the same period in 2024.
Net interest margin increased by 21 basis points to 3.71% for the nine months ended September 30, 2025, compared to 3.50% for the same period in 2024.

Acquisition of First IC Corporation and First IC Bank

On July 15, 2025, MetroCity announced that we received all required regulatory approvals and non-objections to complete MetroCity's merger with First IC Corporation ("First IC"), the parent company of First IC Bank. In addition, on July 15, 2025, First IC's shareholders also voted to approve the merger. The merger is expected to be completed later in the fourth quarter of 2025 and remains subject to the satisfaction of customary closing conditions.

Results of Operations

Net Income

Net income was $17.3 million for the third quarter of 2025, an increase of $444,000, or 2.6%, from $16.8 million for the second quarter of 2025. This increase was primarily due to an increase in noninterest income of $445,000 and decreases in provision for credit losses of $672,000 and income tax expense of $274,000, offset by an increase in noninterest expense of $561,000 and a decrease in net interest income of $386,000. Net income increased by $569,000, or 3.4%, in the third quarter of 2025 compared to net income of $16.7 million for the third quarter of 2024. This increase was due to an increase in net interest income of $1.5 million and a decrease in provision for credit losses of $1.1 million, offset by increases in noninterest expense of $1.0 million and income tax expense of $608,000 and a decrease in noninterest income of $437,000.

Net income was $50.4 million for the nine months ended September 30, 2025, an increase of $2.1 million, or 4.4%, from $48.3 million for the nine months ended September 30, 2024. This increase was due to an increase in net interest income of $6.4 million and a decrease in provision for credit losses of $593,000, offset by increases in noninterest expense $3.5 million and income tax expense of $1.0 million and a decrease in noninterest income of $375,000.

Net Interest Income and Net Interest Margin

Interest income totaled $54.0 million for the third quarter of 2025, a slight decrease of $46,000, or 0.1%, from the second quarter of 2025, primarily due to a 12 basis points decrease in the loan yield and a $12.5 million decrease in the average interest-earning cash balance, offset by a $24.7 million increase in average loan balances. As compared to the third quarter of 2024, interest income for the third quarter of 2025 increased by $170,000, or 0.3%, primarily due to a $59.5 million increase in average loan balances and a $4.1 million increase in the average total investments balance, offset by an 83 basis points decrease in the total investments yield and a six basis points decrease in the loan yield.

Interest expense totaled $22.2 million for the third quarter of 2025, an increase of $340,000, or 1.6%, from the second quarter of 2025, primarily due to a 43 basis points increase in interest-bearing demand deposit costs coupled with a $25.8 million increase in average interest-bearing demand deposit balances and a $20.0 million increase in average time deposit balances, offset by a $58.3 million decrease in average money market balances. As compared to the third quarter of 2024, interest expense for the third quarter of 2025 decreased by $1.3 million, or 5.7%, primarily due to a 33 basis points decrease in deposit costs coupled with a $10.4 million decrease in average deposit balances, offset by a $49.3 million increase in the average borrowings balance. The Company currently has interest rate derivative agreements totaling $950.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 4.09% as of September 30, 2025). The weighted average pay rate for these interest rate derivatives is 2.70%. During the third quarter of 2025, we recorded a credit to interest expense of $3.8 million from the benefit received on these interest rate derivatives compared to a benefit of $4.2 million and $6.4 million recorded during the second quarter of 2025 and the third quarter of 2024, respectively.

The net interest margin for the third quarter of 2025 was 3.68% compared to 3.77% for the second quarter of 2025, a decrease of nine basis points. The yield on average interest-earning assets for the third quarter of 2025 decreased by ten basis points to 6.24% from 6.34% for the second quarter of 2025, while the cost of average interest-bearing liabilities for the third quarter of 2025 increased by three basis points to 3.42% from 3.39% for the second quarter of 2025. Average earning assets increased by $12.1 million from the second quarter of 2025, due to an increase of $24.7 million in average loans, offset by a decrease of $12.6 million in average total investments. Average interest-bearing liabilities decreased by $13.6 million from the second quarter of 2025 as average interest-bearing deposits decreased by $12.4 million and average borrowings decreased by $1.2 million.

As compared to the third quarter of 2024, the net interest margin for the third quarter of 2025 increased by 10 basis points to 3.68% from 3.58%, primarily due to a 27 basis points decrease in the cost of average interest-bearing liabilities of $2.57 billion, offset by a 12 basis points decrease in the yield on average interest-earning assets of $3.43 billion. Average earning assets for the third quarter of 2025 increased by $63.6 million from the third quarter of 2024, due to a $59.5 million increase in average loans and a $4.1 million increase in average total investments. Average interest-bearing liabilities for the third quarter of 2025 increased by $38.9 million from the third quarter of 2024, due to an increase in average borrowings of $49.3 million, offset by a $10.4 million decrease in average interest-bearing deposits.

Noninterest Income

Noninterest income for the third quarter of 2025 was $6.2 million, an increase of $445,000, or 7.8%, from the second quarter of 2025, primarily due to higher mortgage loan origination fees, service charges on deposit accounts and servicing income from our Small Business Administration ("SBA") loans, offset by lower gains on sale and servicing income from our residential mortgage loans, gains on sale of our SBA loans and other income. SBA loan sales totaled $13.4 million (sales premium of 6.13%) during the third quarter of 2025 compared to $20.7 million (sales premium of 5.66%) during the second quarter of 2025. Mortgage loan originations totaled $168.6 million during the third quarter of 2025 compared to $93.2 million during the second quarter of 2025. Mortgage loan sales totaled $18.3 million (average sales premium of 1.06%) during the third quarter of 2025 compared to $54.3 million (average sales premium of 1.09%) during the second quarter of 2025. During the third quarter of 2025, we recorded a $166,000 fair value adjustment gain on our SBA servicing asset compared to a fair value adjustment charge of $345,000 during the second quarter of 2025. We also recorded a $19,000 fair value impairment recovery on our mortgage servicing asset during the third quarter of 2025 compared to a $28,000 fair value impairment recovery recorded during the second quarter of 2025.

Compared to the third quarter of 2024, noninterest income for the third quarter of 2025 decreased by $437,000, or 6.6%, primarily due to lower gains on sale and servicing income from our SBA loans, gains on sale of our residential mortgage loans and other income partially from lower unrealized gains on our equity securities, offset by higher mortgage loan origination fees and servicing income. During the third quarter of 2024, we recorded a $202,000 fair value adjustment gain on our SBA servicing asset and a $252,000 fair value impairment charge on our mortgage servicing asset.

Noninterest income for the nine months ended September 30, 2025 totaled $17.4 million, a decrease of $375,000, or 2.1%, from the nine months ended September 30, 2024, primarily due to lower gains on sale and servicing income from our SBA loans and gains on sale from our residential mortgage loans, offset by higher mortgage loan origination fees and servicing income, service charges on deposit accounts and other income from unrealized gains recognized on our equity securities and increased bank owned life insurance income.

Noninterest Expense

Noninterest expense for the third quarter of 2025 totaled $14.7 million, an increase of $561,000, or 4.0%, from $14.1 million for the second quarter of 2025. This increase was primarily attributable to increases in salaries and employee benefits due to higher commissions paid from higher loan volume and stock-based compensation, as well as higher data processing and loan-related expenses, partially offset by lower security expenses, SEC related expenses and First IC merger-related expenses. Included in other noninterest expenses during the third quarter of 2025 were $301,000 of First IC merger-related expenses compared to $333,000 of merger-related expenses during the second quarter of 2025.

Compared to the third quarter of 2024, noninterest expense during the third quarter of 2025 increased by $1.0 million, or 7.4%, primarily due to higher salary and employee benefits, FDIC insurance premiums, data processing expenses, professional fees, security expense, loan related expenses and First IC merger-related expenses, offset by lower occupancy and other real estate owned related expenses.

Noninterest expense for the nine months ended September 30, 2025 totaled $42.6 million, an increase of $3.5 million, or 9.0%, from $39.1 million for the nine months ended September 30, 2024. This increase was primarily attributable to increases in salaries and employee benefits partially due to higher base salaries, commissions, 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 FDIC insurance premiums and other real estate owned related expenses. Included in other noninterest expenses for the nine months ended September 30, 2025 were $897,000 of First IC merger-related expenses.

The Company's efficiency ratio was 38.7% for the third quarter of 2025 compared to 37.2% and 37.0% for the second quarter of 2025 and third quarter of 2024, respectively. For the nine months ended September 30, 2025, the efficiency ratio was 38.1% compared to 36.9% for the same period in 2024.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2025 was 27.6%, compared to 28.9% for the second quarter of 2025 and 26.3% for the third quarter of 2024. The Company's effective tax rate for the nine months ended September 30, 2025 was 27.6% compared to 27.4% for the same period in 2024.

Balance Sheet

Total Assets

Total assets were $3.63 billion at September 30, 2025, an increase of $13.8 million, or 0.4%, from $3.62 billion at June 30, 2025, and an increase of $60.3 million, or 1.7%, from $3.57 billion at September 30, 2024. The $13.8 million increase in total assets at September 30, 2025 compared to June 30, 2025 was primarily due to increases in loans held for sale of $232.7 million and other assets of $2.2 million, partially offset by decreases in loans held for investment of $161.1 million, cash and due from banks of $59.7 and interest rate derivatives of $3.2 million. The $60.3 million increase in total assets at September 30, 2025 compared to September 30, 2024 was primarily due to increases in loans held for sale of $233.1 million, other assets of $16.4 million, equity securities of $8.0 million, bank owned life insurance of $2.5 million, Federal Home Loan Bank stock of $2.4 million and accrued interest receivable of $1.2 million, partially offset by decreases in loans held for investment of $127.4 million, cash and due from banks of $64.8 million, interest rate derivatives of $9.5 million and securities available for sale of $2.8 million.

Our investment securities portfolio made up only 0.94% of our total assets at September 30, 2025 compared to 0.93% and 0.81% at June 30, 2025 and September 30, 2024, respectively.

Loans

Loans held for investment were $2.96 billion at September 30, 2025, a decrease of $161.1 million, or 5.2%, compared to $3.12 billion at June 30, 2025, and a decrease of $127.4 million, or 4.1%, compared to $3.09 billion at September 30, 2024. The decrease in loans at September 30, 2025 compared to June 30, 2025 was due to a $170.5 million decrease in residential mortgage loans and a $4.4 million decrease in commercial and industrial loans, offset by an $11.1 million increase in commercial real estate loans and a $2.3 million increase in construction and development loans. Loans classified as held for sale totaled $237.7 million at September 30, 2025 compared to $5.0 million and $4.6 million at June 30, 2025 and September 30, 2024, respectively. The significant increase in loans held for sale during the third quarter of 2025 was done to provide the liquidity needed for the upcoming First IC merger.

Deposits

Total deposits were $2.69 billion at September 30, 2025, an increase of $3.6 million, or 0.1%, compared to total deposits of $2.69 billion at June 30, 2025, and a decrease of $30.0 million, or 1.1%, compared to total deposits of $2.72 billion at September 30, 2024. The increase in total deposits at September 30, 2025 compared to June 30, 2025 was due to a $15.9 million increase in money market accounts (including a $4.3 million decrease in brokered money market accounts) and a $15.7 million increase in time deposits, offset by a $23.3 million decrease in interest-bearing demand deposits, a $4.5 million decrease in noninterest-bearing demand deposits and a $271,000 decrease in savings accounts.

Noninterest-bearing deposits were $544.4 million at September 30, 2025, compared to $548.9 million at June 30, 2025 and $552.5 million at September 30, 2024. Noninterest-bearing deposits constituted 20.2% of total deposits at September 30, 2025, compared to 20.4% of total deposits at June 30, 2025 and 20.3% at September 30, 2024. Interest-bearing deposits were $2.15 billion at September 30, 2025, compared to $2.14 billion at June 30, 2025 and $2.17 billion at September 30, 2024. Interest-bearing deposits constituted 79.8% of total deposits at September 30, 2025, compared to 79.6% at June 30, 2025 and 79.7% at September 30, 2024.

Uninsured deposits were 26.1% of total deposits at September 30, 2025, compared to 25.1% and 23.6% at June 30, 2025 and September 30, 2024, respectively. As of September 30, 2025, we had $1.29 billion of available borrowing capacity at the Federal Home Loan Bank ($657.8 million), Federal Reserve Discount Window ($575.7 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 $543,000 during the third quarter of 2025, compared to a provision for credit losses of $129,000 during the second quarter of 2025 and a provision for credit losses of $582,000 during the third quarter of 2024. The credit provision recorded during the third quarter of 2025 was primarily due to the decrease in reserves allocated to our individually analyzed loans, as well as the decrease in general reserves allocated to our residential mortgage loan portfolio as a large amount of residential mortgage loans were moved from loans held for investment to loans held for sale during the third quarter of 2025. These decreases were partially offset by the increase in general reserves allocated to our commercial real estate loan portfolio. Annualized net charge-offs to average loans for the third quarter of 2025 was 0.03%, compared to net charge-offs of 0.01% for the second quarter of 2025 and 0.00% for the third quarter of 2024.

Nonperforming assets totaled $14.0 million, or 0.38% of total assets, at September 30, 2025, a decrease of $1.2 million from $15.2 million, or 0.42% of total assets, at June 30, 2025, and a decrease of $1.9 million from $15.8 million, or 0.44% of total assets, at September 30, 2024. The decrease in nonperforming assets at September 30, 2025 compared to June 30, 2025 was due to a $1.4 million decrease in nonaccrual loans offset by a $175,000 increase in other real estate owned.

Allowance for credit losses as a percentage of total loans was 0.60% at September 30, 2025, compared to 0.60% at both June 30, 2025 and September 30, 2024. Allowance for credit losses as a percentage of nonperforming loans was 137.66% at September 30, 2025, compared to 129.76% at June 30, 2025 and 129.85% at September 30, 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 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). This financial information includes "return on average equity", which excludes average accumulated other comprehensive income and merger-related expenses. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

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 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 proposed merger of First IC with the Company (the "Proposed Merger"), including (a) the risk that the cost savings and any revenue synergies from the Proposed Merger is less than or different from expectations, (b) disruption from the Proposed Merger with customer, supplier, or employee relationships, (c) the occurrence of any event, change, or other circumstances that could give rise to the termination of the Agreement and Plan of Merger by and between the Company and First IC, (d) the possibility that the costs, fees, expenses and charges related to the Proposed Merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (e) the failure of the conditions to the Proposed Merger to be satisfied, (f) the risks related to the integration of the combined businesses, including the risk that the integration will be materially delayed or will be more costly or difficult than expected, (g) the diversion of management time on merger-related issues, (h) the ability of the Company to effectively manage the larger and more complex operations of the combined company following the Proposed Merger, (i) the risks associated with the Company's pursuit of future acquisitions, (j) the risk of expansion into new geographic or product markets, (k) reputational risk and the reaction of the parties' customers to the Proposed Merger, (l) the Company's ability to successfully execute its various business strategies, including its ability to execute on potential acquisition opportunities, (m) the risk of potential litigation or regulatory action related to the Proposed Merger, and (n) 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; 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. 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

METROCITY BANKSHARES, INC. SELECTED FINANCIAL DATA

	As of and for the Three Months Ended															As of and for the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)	2025			2025			2025			2024			2024			2025			2024
Selected income statement data:
Interest income	$	54,003		$	54,049		$	52,519		$	52,614		$	53,833		$	160,571		$	160,299
Interest expense		22,211			21,871			21,965			22,554			23,544			66,047			72,213
Net interest income		31,792			32,178			30,554			30,060			30,289			94,524			88,086
Provision for credit losses		(543)			129			135			202			582			(279)			314
Noninterest income		6,178			5,733			5,456			5,321			6,615			17,367			17,742
Noninterest expense		14,674			14,113			13,799			14,326			13,660			42,586			39,053
Income tax expense		6,569			6,843			5,779			4,618			5,961			19,191			18,192
Net income		17,270			16,826			16,297			16,235			16,701			50,393			48,269
Per share data:
Basic income per share	$	0.68		$	0.66		$	0.64		$	0.64		$	0.66		$	1.98		$	1.91
Diluted income per share	$	0.67		$	0.65		$	0.63		$	0.63		$	0.65		$	1.96		$	1.89
Dividends per share	$	0.25		$	0.23		$	0.23		$	0.23		$	0.20		$	0.71		$	0.60
Book value per share (at period end)	$	17.46		$	17.08		$	16.85		$	16.59		$	16.07		$	17.46		$	16.07
Shares of common stock outstanding		25,537,746			25,537,746			25,402,782			25,402,782			25,331,916			25,537,746			25,331,916
Weighted average diluted shares		25,811,422			25,715,206			25,707,989			25,659,483			25,674,858			25,735,688			25,591,072
Performance ratios:
Return on average assets		1.89	%		1.87	%		1.85	%		1.82	%		1.86	%		1.87	%		1.80	%
Return on average equity		15.69			15.74			15.67			15.84			16.26			15.70			16.27
Dividend payout ratio		37.23			35.01			36.14			36.18			30.58			36.13			31.66
Yield on total loans		6.37			6.49			6.40			6.31			6.43			6.42			6.41
Yield on average earning assets		6.24			6.34			6.31			6.25			6.36			6.30			6.36
Cost of average interest-bearing liabilities		3.42			3.39			3.48			3.55			3.69			3.43			3.77
Cost of interest-bearing deposits		3.28			3.25			3.36			3.45			3.61			3.30			3.74
Net interest margin		3.68			3.77			3.67			3.57			3.58			3.71			3.50
Efficiency ratio⁽¹⁾		38.65			37.23			38.32			40.49			37.01			38.06			36.90
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.03	%		0.01	%		0.02	%		0.01	%		0.00	%		0.02	%		(0.00)	%
Nonperforming assets to gross loans held for investment and OREO		0.47			0.49			0.59			0.58			0.51			0.47			0.51
ACL to nonperforming loans		137.66			129.76			110.52			104.08			129.85			137.66			129.85
ACL to loans held for investment		0.60			0.60			0.59			0.59			0.60			0.60			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits		110.19	%		116.34	%		114.73	%		115.66	%		113.67	%		110.19	%		113.67	%
Noninterest bearing deposits to deposits		20.22			20.41			19.73			19.60			20.29			20.22			20.29
Investment securities to assets		0.94			0.93			0.93			0.77			0.81			0.94			0.81
Common equity to assets		12.29			12.06			11.69			11.72			11.41			12.29			11.41
Leverage ratio		12.21			11.91			11.76			11.57			11.12			12.21			11.12
Common equity tier 1 ratio		19.93			19.91			19.23			19.17			19.12			19.93			19.12
Tier 1 risk-based capital ratio		19.93			19.91			19.23			19.17			19.12			19.93			19.12
Total risk-based capital ratio		20.74			20.78			20.09			20.05			20.03			20.74			20.03
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	538,675		$	559,112		$	537,590		$	527,039		$	556,442		$	538,675		$	556,442
Mortgage loan production		168,562			93,156			91,122			103,250			122,355			352,840			310,427
Mortgage loan sales		18,248			54,309			40,051			—			54,193			112,608			187,490
SBA/USDA loans serviced for others		460,720			480,867			474,143			479,669			487,359			460,720			487,359
SBA loan production		17,777			29,337			20,012			35,730			35,839			67,126			55,533
SBA loan sales		13,415			20,707			16,579			19,236			28,858			50,701			52,923
______________________________________________ (1) 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
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands)	2025		2025		2025		2024		2024
ASSETS
Cash and due from banks	$	213,941	$	273,596	$	272,317	$	236,338	$	278,752
Federal funds sold		13,217		12,415		12,738		13,537		12,462
Cash and cash equivalents		227,158		286,011		285,055		249,875		291,214
Equity securities		18,605		18,481		18,440		10,300		10,568
Securities available for sale (at fair value)		15,365		15,030		15,426		17,391		18,206
Loans held for investment		2,960,436		3,121,534		3,132,535		3,157,935		3,087,826
Allowance for credit losses		(17,940)		(18,748)		(18,592)		(18,744)		(18,589)
Loans less allowance for credit losses		2,942,496		3,102,786		3,113,943		3,139,191		3,069,237
Loans held for sale		237,682		4,988		34,532		—		4,598
Accrued interest receivable		16,912		16,528		16,498		15,858		15,667
Federal Home Loan Bank stock		22,693		22,693		22,693		20,251		20,251
Premises and equipment, net		17,836		17,872		18,045		18,276		18,158
Operating lease right-of-use asset		7,712		8,197		7,906		7,850		7,171
Foreclosed real estate, net		919		744		1,707		427		1,515
SBA servicing asset, net		6,988		6,823		7,167		7,274		7,309
Mortgage servicing asset, net		1,662		1,676		1,476		1,409		1,296
Bank owned life insurance		75,148		74,520		73,900		73,285		72,670
Interest rate derivatives		9,435		12,656		17,166		21,790		18,895
Other assets		28,852		26,683		25,771		10,868		12,451
Total assets	$	3,629,463	$	3,615,688	$	3,659,725	$	3,594,045	$	3,569,206

LIABILITIES
Noninterest-bearing deposits	$	544,439	$	548,906	$	539,975	$	536,276	$	552,472
Interest-bearing deposits		2,148,645		2,140,587		2,197,055		2,200,522		2,170,648
Total deposits		2,693,084		2,689,493		2,737,030		2,736,798		2,723,120
Federal Home Loan Bank advances		425,000		425,000		425,000		375,000		375,000
Operating lease liability		7,704		8,222		7,962		7,940		7,295
Accrued interest payable		3,567		3,438		3,487		3,498		3,593
Other liabilities		54,220		53,435		58,277		49,456		53,013
Total liabilities	$	3,183,575	$	3,179,588	$	3,231,756	$	3,172,692	$	3,162,021

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		255		255		254		254		253
Additional paid-in capital		51,151		50,212		49,645		49,216		47,481
Retained earnings		390,971		380,046		369,110		358,704		348,343
Accumulated other comprehensive income		3,511		5,587		8,960		13,179		11,108
Total shareholders' equity		445,888		436,100		427,969		421,353		407,185
Total liabilities and shareholders' equity	$	3,629,463	$	3,615,688	$	3,659,725	$	3,594,045	$	3,569,206

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(Dollars in thousands)	2025		2025		2025		2024		2024		2025		2024
Interest and dividend income:
Loans, including fees	$	50,975	$	50,936	$	50,253	$	49,790	$	50,336	$	152,164	$	150,980
Other investment income		2,884		2,970		2,126		2,663		3,417		7,980		9,175
Federal funds sold		144		143		140		161		80		427		144
Total interest income		54,003		54,049		52,519		52,614		53,833		160,571		160,299

Interest expense:
Deposits		17,799		17,496		17,977		18,618		19,602		53,272		61,442
FHLB advances and other borrowings		4,412		4,375		3,988		3,936		3,942		12,775		10,771
Total interest expense		22,211		21,871		21,965		22,554		23,544		66,047		72,213

Net interest income		31,792		32,178		30,554		30,060		30,289		94,524		88,086

Provision for credit losses		(543)		129		135		202		582		(279)		314

Net interest income after provision for loan losses		32,335		32,049		30,419		29,858		29,707		94,803		87,772

Noninterest income:
Service charges on deposit accounts		551		505		500		563		531		1,556		1,510
Other service charges, commissions and fees		2,376		1,620		1,596		1,748		1,915		5,592		5,100
Gain on sale of residential mortgage loans		166		579		399		—		526		1,144		1,925
Mortgage servicing income, net		516		781		618		690		422		1,915		1,758
Gain on sale of SBA loans		558		643		658		811		1,083		1,859		2,134
SBA servicing income, net		1,203		642		913		956		1,231		2,758		3,287
Other income		808		963		772		553		907		2,543		2,028
Total noninterest income		6,178		5,733		5,456		5,321		6,615		17,367		17,742

Noninterest expense:
Salaries and employee benefits		8,953		8,554		8,493		9,277		8,512		26,000		23,930
Occupancy and equipment		1,410		1,380		1,417		1,406		1,430		4,207		4,118
Data Processing		394		329		345		335		311		1,068		958
Advertising		161		149		167		160		145		477		474
Other expenses		3,756		3,701		3,377		3,148		3,262		10,834		9,573
Total noninterest expense		14,674		14,113		13,799		14,326		13,660		42,586		39,053

Income before provision for income taxes		23,839		23,669		22,076		20,853		22,662		69,584		66,461
Provision for income taxes		6,569		6,843		5,779		4,618		5,961		19,191		18,192
Net income available to common shareholders	$	17,270	$	16,826	$	16,297	$	16,235	$	16,701	$	50,393	$	48,269

METROCITY BANKSHARES, INC. QTD AVERAGE BALANCES AND YIELDS/RATES

	Three Months Ended
	September 30, 2025						June 30, 2025						September 30, 2024
	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⁾	$	219,283	$	2,760	4.99	%	$	231,803	$	2,848	4.93	%	$	220,826	$	3,308	5.96	%
Investment securities		36,960		268	2.88			37,040		265	2.87			31,309		189	2.40
Total investments		256,243		3,028	4.69			268,843		3,113	4.64			252,135		3,497	5.52
Construction and development		29,130		613	8.35			28,283		580	8.23			14,170		302	8.48
Commercial real estate		812,759		17,239	8.42			807,897		17,612	8.74			740,720		17,132	9.20
Commercial and industrial		71,655		1,600	8.86			71,274		1,544	8.69			64,584		1,593	9.81
Residential real estate		2,261,108		31,480	5.52			2,242,456		31,137	5.57			2,295,573		31,267	5.42
Consumer and other		327		43	52.17			365		63	69.23			394		42	42.41
Gross loans⁽²⁾		3,174,979		50,975	6.37			3,150,275		50,936	6.49			3,115,441		50,336	6.43
Total earning assets		3,431,222		54,003	6.24			3,419,118		54,049	6.34			3,367,576		53,833	6.36
Noninterest-earning assets		193,365						199,302						207,093
Total assets		3,624,587						3,618,420						3,574,669
Interest-bearing liabilities:
NOW and savings deposits		188,576		1,476	3.11			162,810		1,089	2.68			119,759		770	2.56
Money market deposits		974,500		6,480	2.64			1,032,754		6,815	2.65			982,517		6,156	2.49
Time deposits		986,719		9,843	3.96			966,678		9,592	3.98			1,057,956		12,676	4.77
Total interest-bearing deposits		2,149,795		17,799	3.28			2,162,242		17,496	3.25			2,160,232		19,602	3.61
Borrowings		425,000		4,412	4.12			426,173		4,375	4.12			375,677		3,942	4.17
Total interest-bearing liabilities		2,574,795		22,211	3.42			2,588,415		21,871	3.39			2,535,909		23,544	3.69
Noninterest-bearing liabilities:
Noninterest-bearing deposits		538,755						529,130						542,939
Other noninterest-bearing liabilities		74,418						72,231						87,156
Total noninterest-bearing liabilities		613,173						601,361						630,095
Shareholders' equity		436,619						428,644						408,665
Total liabilities and shareholders' equity	$	3,624,587					$	3,618,420					$	3,574,669
Net interest income			$	31,792					$	32,178					$	30,289
Net interest spread					2.82						2.95						2.67
Net interest margin					3.68						3.77						3.58
______________________________________________ (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

	Nine Months Ended
	September 30, 2025						September 30, 2024
	Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	203,740	$	7,706	5.06	%	$	187,398	$	8,729	6.22	%
Investment securities		35,363		701	2.65			31,428		590	2.51
Total investments		239,103		8,407	4.70			218,826		9,319	5.69
Construction and development		26,933		1,673	8.31			16,871		1,127	8.92
Commercial real estate		800,301		51,008	8.52			731,573		50,270	9.18
Commercial and industrial		71,905		4,732	8.80			66,116		4,894	9.89
Residential real estate		2,270,373		94,603	5.57			2,332,271		94,565	5.42
Consumer and other		323		148	61.26			311		124	53.26
Gross loans⁽²⁾		3,169,835		152,164	6.42			3,147,142		150,980	6.41
Total earning assets		3,408,938		160,571	6.30			3,365,968		160,299	6.36
Noninterest-earning assets		196,632						214,756
Total assets		3,605,570						3,580,724
Interest-bearing liabilities:
NOW and savings deposits		168,503		3,516	2.79			140,539		2,852	2.71
Money market deposits		1,005,777		19,617	2.61			1,019,394		21,984	2.88
Time deposits		986,618		30,139	4.08			1,034,256		36,606	4.73
Total interest-bearing deposits		2,160,898		53,272	3.30			2,194,189		61,442	3.74
Borrowings		413,853		12,775	4.13			362,965		10,771	3.96
Total interest-bearing liabilities		2,574,751		66,047	3.43			2,557,154		72,213	3.77
Noninterest-bearing liabilities:
Noninterest-bearing deposits		529,075						536,807
Other noninterest-bearing liabilities		72,709						90,459
Total noninterest-bearing liabilities		601,784						627,266
Shareholders' equity		429,035						396,304
Total liabilities and shareholders' equity	$	3,605,570					$	3,580,724
Net interest income			$	94,524					$	88,086
Net interest spread					2.87						2.59
Net interest margin					3.71						3.50
______________________________________________ (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
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and development	$	32,415	1.1	%	$	30,149	1.0	%	$	28,403	0.9	%	$	21,569	0.7	%	$	16,539	0.5	%
Commercial real estate		814,464	27.5			803,384	25.7			792,149	25.2			762,033	24.1			738,929	23.9
Commercial and industrial		69,430	2.3			73,832	2.3			71,518	2.3			78,220	2.5			63,606	2.1
Residential real estate		2,050,858	69.1			2,221,316	71.0			2,248,028	71.6			2,303,234	72.7			2,276,210	73.5
Consumer and other		325	—			200	—			67	—			260	—			215	—
Gross loans held for investment	$	2,967,492	100.0	%	$	3,128,881	100.0	%	$	3,140,165	100.0	%	$	3,165,316	100.0	%	$	3,095,499	100.0	%
Unearned income		(7,056)				(7,347)				(7,630)				(7,381)				(7,673)
Allowance for credit losses		(17,940)				(18,748)				(18,592)				(18,744)				(18,589)
Net loans held for investment	$	2,942,496			$	3,102,786			$	3,113,943			$	3,139,191			$	3,069,237

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS

	As of the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2025			2025			2025			2024			2024
Nonaccrual loans	$	13,032		$	14,448		$	16,823		$	18,010		$	14,316
Past due loans 90 days or more and still accruing		—			—			—			—			—
Total non-performing loans		13,032			14,448			16,823			18,010			14,316
Other real estate owned		919			744			1,707			427			1,515
Total non-performing assets	$	13,951		$	15,192		$	18,530		$	18,437		$	15,831

Nonperforming loans to gross loans held for investment		0.44	%		0.46	%		0.54	%		0.57	%		0.46	%
Nonperforming assets to total assets		0.38			0.42			0.51			0.51			0.44
Allowance for credit losses to non-performing loans		137.66			129.76			110.52			104.08			129.85

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES

	As of and for the Three Months Ended															As of and for the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2025			2025			2025			2024			2024			2025			2024
Balance, beginning of period	$	18,748		$	18,592		$	18,744		$	18,589		$	17,960		$	18,744		$	18,112
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		110			62			(1)			—			—			171			(83)
Commercial and industrial		117			(2)			170			99			24			285			20
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			—			—			—			—			—
Total net charge-offs/(recoveries)		227			60			169			99			24			456			(63)
Provision for loan losses		(581)			216			17			254			653			(348)			414
Balance, end of period	$	17,940		$	18,748		$	18,592		$	18,744		$	18,589		$	17,940		$	18,589
Total loans at end of period⁽¹⁾	$	2,967,492		$	3,128,881		$	3,140,165		$	3,165,316		$	3,095,499		$	2,967,492		$	3,095,499
Average loans⁽¹⁾	$	3,121,079		$	3,130,515		$	3,167,085		$	3,135,093		$	3,113,142		$	3,134,252		$	3,122,273
Net charge-offs/(recoveries) to average loans		0.03	%		0.01	%		0.02	%		0.01	%		0.00	%		0.02	%		(0.00)	%
Allowance for loan losses to total loans		0.60			0.60			0.59			0.59			0.60			0.60			0.60
______________________________________________ (1) Excludes loans held for sale.

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SOURCE MetroCity Bankshares, Inc.

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2025