METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2026

Rhea-AI Summary

MetroCity Bankshares (NASDAQ: MCBS) reported Q1 2026 net income of $22.3M or $0.77 diluted EPS, up from $18.3M in Q4 2025 and $16.3M in Q1 2025. Net interest margin rose to 4.08%.

Total assets were $4.7B; loans held for investment were $4.00B and deposits were $3.63B at March 31, 2026.

Positive

• Net income $22.3M, up 21.9% QoQ
• Net interest margin 4.08%, +35 bps QoQ
• Loans held for investment $4.00B, +27.7% YoY
• Deposits $3.63B, +32.5% YoY

Negative

• Noninterest expense +55.4% YoY (+$7.6M)
• Noninterest income down 18.7% QoQ (-$1.5M)
• Interest expense +20.7% YoY

News Market Reaction – MCBS

+3.65%

+3.65% Session close to close

In the Apr 27 session, MCBS gained 3.65%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights stronger profitability metrics for Q1 2026, with net income of $22.3M, ...

Analysis

This announcement highlights stronger profitability metrics for Q1 2026, with net income of $22.3M, diluted EPS of $0.77, a net interest margin of 4.08%, and an efficiency ratio in the low-40% range. Asset quality remained solid, with nonperforming assets at 0.37% of total assets and allowance coverage rising versus prior periods. Investors may track how loan and deposit growth trends settle post‑acquisition and whether returns on equity near or above 18% prove sustainable.

Key Figures

Net income: $22.3M Diluted EPS: $0.77 ROAA: 1.96% +5 more

8 metrics

Net income $22.3M Q1 2026 net income reported in this release

Diluted EPS $0.77 Q1 2026 diluted earnings per share

ROAA 1.96% Annualized return on average assets, Q1 2026

ROAE 18.28% Annualized return on average equity, Q1 2026

Net interest margin 4.08% Q1 2026 net interest margin vs 3.73% in Q4 2025

Total assets $4.7B Total assets at March 31, 2026

Loans held for investment $4.00B Loans held for investment at March 31, 2026

Nonperforming assets $17.2M (0.37% of assets) Nonperforming assets at March 31, 2026

Historical Context

5 past events · Latest: Apr 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 15	Dividend declaration	Positive	+1.3%	Announced quarterly cash dividend of $0.29 per share with May 2026 payment.
Jan 30	Earnings release	Positive	+2.8%	Reported Q4 2025 net income of $18.3M and full-year $68.7M with higher NIM.
Jan 21	Dividend declaration	Positive	+0.5%	Declared quarterly cash dividend of $0.25 per share payable February 2026.
Dec 02	Acquisition close	Positive	+0.0%	Closed First IC acquisition, creating about $4.8B assets and $4.0B loans.
Nov 14	Merger timing update	Neutral	-1.5%	Announced expected December 1, 2025 closing date for First IC merger.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent MCBS news, especially earnings and dividends, has typically coincided with modest positive price reactions, with only one notable divergence around a merger-timing update.

Recent Company History

Over the past several months, MCBS has combined steady shareholder returns with balance sheet growth. A quarterly dividend of $0.25 per share in January 2026 and a higher $0.29 dividend in April both saw small positive price responses. Q4 2025 earnings, highlighting net income of $18.3M and a 3.73% net interest margin, were also received positively. The completion of the First IC acquisition in December 2025 slightly lifted the stock, while an earlier closing-date announcement saw a modest decline. Today’s Q1 2026 results build directly on that enlarged franchise and improving profitability metrics.

Key Terms

net interest margin, noninterest income, noninterest expense, efficiency ratio, +4 more

8 terms

net interest margin financial

"Net interest margin was 4.08%, compared to 3.73% for the fourth quarter..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

noninterest income financial

"Noninterest income for the first quarter of 2026 was $6.4 million, a decrease..."

Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.

noninterest expense financial

"Noninterest expense for the first quarter of 2026 totaled $21.4 million..."

Costs a company incurs that are not tied to borrowing or lending, such as employee pay, rent, technology, marketing, and office supplies. Think of a household: noninterest expense is everything you pay for living and running the home except mortgage or loan interest; for investors, it shows how efficiently a company runs its core operations and directly affects profit margins and the cash available for growth or dividends.

efficiency ratio financial

"Efficiency ratio was 42.16%, compared to 46.71% for the fourth quarter..."

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

allowance for credit losses financial

"Allowance for credit losses as a percentage of total loans was 0.66%..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming assets financial

"Nonperforming assets totaled $17.2 million, or 0.37% of total assets..."

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

effective tax rate financial

"The Company's effective tax rate for the first quarter of 2026 was 26.2%..."

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

interest rate derivatives financial

"The Company currently has interest rate derivative agreements totaling $625.0 million..."

Contracts that let parties lock in, trade, or hedge future interest payments without buying the underlying loan or bond. Think of them like insurance or a bet on the direction of interest rates: investors and companies use them to protect against rising borrowing costs, to fix cash flows, or to speculate, and their widespread use affects funding costs, bond and stock valuations, and financial market risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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:

• Annualized return on average assets was 1.96% compared to 1.80% for the fourth quarter of 2025 and 1.85% for the first quarter of 2025.
• Annualized return on average equity was 18.28%, compared to 15.45% for the fourth quarter of 2025 and 15.67% for the first quarter of 2025. Adjusted return on average shareholder's equity¹, which excluded average accumulated other comprehensive income and merger-related expenses was 19.36% for the first quarter of 2026, compared to 17.83% for the fourth quarter of 2025, and 16.37% for the first quarter of 2025. 
• Efficiency ratio was 42.16%, compared to 46.71% for the fourth quarter of 2025 and 38.32% for the first quarter of 2025. Operating efficiency ratio¹ was 38.87%, compared to 38.49% for the fourth quarter of 2025 and 37.59% for the first quarter of 2025
• Net interest margin was 4.08%, compared to 3.73% for the fourth quarter of 2025 and 3.67% for the first quarter of 2025.

________________________

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 Tan
President and Interim Chief Financial Officer
770-455-4978
faridtan@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
(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			25,537,746			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			2025			2025			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		$	0.25		$	0.23		$	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			25,537,746			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):															38
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			0.60			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			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			2025			2025			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			22,693			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			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			425,000			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			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			2025			2025			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			15		7.18			441			54		48.58			276			42		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					% of					% of					% of					% 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		—			67		—
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			2025			2025			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			2025			2025			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			62			(1)
Commercial and industrial			89			(5)			117			(2)			170
Residential real estate			—			—			—			—			—
Consumer and other			—			—			—			—			—
Total net charge-offs/(recoveries)			274			(6)			227			60			169
Provision (recovery) for loan losses			(869)			12			(581)			216			17
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			0.60			0.59

____________________________

(1)  Excludes loans held for sale.

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What were MetroCity (MCBS) Q1 2026 net income and EPS?

Net income was $22.3 million and diluted EPS was $0.77 for Q1 2026. According to the company, this compares with $18.3 million and $0.68 in Q4 2025, and $16.3 million and $0.63 in Q1 2025.

How did MetroCity's net interest margin (NIM) change in Q1 2026 for MCBS?

NIM increased to 4.08% in Q1 2026, a 35 basis point rise from Q4 2025. According to the company, higher loan yields and increased average earning assets drove the QoQ NIM improvement.

What drove MetroCity (MCBS) loan growth in Q1 2026?

Loans held for investment rose to $4.00 billion, a $868.6M increase YoY. According to the company, higher average gross loan balances and stronger origination activity contributed to the year-over-year loan growth.

What is MetroCity's deposit and uninsured deposit position at March 31, 2026 (MCBS)?

Total deposits were $3.63 billion and uninsured deposits were 31.9% of deposits at March 31, 2026. According to the company, deposits increased 32.5% year-over-year to the reported balance.

Why did MetroCity's efficiency ratio and expenses move in Q1 2026 for MCBS?

Efficiency ratio improved to 42.16% QoQ, driven by higher net interest income. According to the company, noninterest expenses rose materially year-over-year, primarily from higher salaries, occupancy, and merger-related costs.