METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2025

Rhea-AI Summary

MetroCity Bankshares (NASDAQ: MCBS) reported net income of $18.3M in Q4 2025 and $68.7M for full-year 2025, driven by loan and deposit growth largely from the Dec 1, 2025 acquisition of First IC. Net interest margin rose to 3.73% while efficiency ratio widened to 46.7%.

Q4 loans held for investment increased 36.6% sequentially to $4.1B and total deposits rose 35.4% to $3.65B, including acquisition balances; adjusted ROE was 17.83% for Q4.

Positive

• Net income +6.5% year to $68.7M in 2025
• Loans held for investment +36.6% sequentially to $4.1B
• Total deposits +35.4% sequentially to $3.65B
• Net interest margin increased to 3.73% (Q4 2025)

Negative

• Efficiency ratio worsened to 46.7% in Q4 2025
• Noninterest expense +18.1% year to $63.0M in 2025
• Merger-related costs materially increased Q4 operating expenses

News Market Reaction

+2.77%

1 alert

+2.77% News Effect

On the day this news was published, MCBS gained 2.77%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $18.3M Q4 2025 EPS: $0.68 diluted 2025 net income: $68.7M +5 more

8 metrics

Q4 2025 net income $18.3M Fourth quarter 2025 net income vs. $17.3M in Q3 2025

Q4 2025 EPS $0.68 diluted Fourth quarter 2025 EPS vs. $0.67 in Q3 2025

2025 net income $68.7M Full year 2025 net income vs. $64.5M in 2024

2025 EPS $2.64 diluted Full year 2025 diluted EPS vs. $2.52 in 2024

Q4 2025 ROA 1.80% Annualized return on average assets in Q4 2025

Q4 2025 ROE 15.45% Annualized return on average equity in Q4 2025

Q4 2025 NIM 3.73% Net interest margin vs. 3.68% in Q3 2025

Q4 2025 efficiency ratio 46.7% Efficiency ratio vs. 38.7% in Q3 2025

Market Reality Check

Price: $29.51 Vol: Volume 101,020 is 80% abo...

high vol

$29.51 Last Close

Volume Volume 101,020 is 80% above 20-day average of 56,109, indicating elevated interest into earnings. high

Technical Shares at 27.41 are trading slightly below the 200-day MA of 27.83 and about 15% under the 52-week high of 32.37.

Peers on Argus

Regional bank peers like MBWM (+2.7%), GSBC (+1.75%), EQBK (+1.63%), NBBK (+1.32...

Regional bank peers like MBWM (+2.7%), GSBC (+1.75%), EQBK (+1.63%), NBBK (+1.32%), and HFWA (+0.24%) also traded higher, but the momentum scanner did not flag a coordinated sector move, suggesting MCBS’s reaction was driven mainly by its own earnings and acquisition update.

Historical Context

5 past events · Latest: Jan 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Dividend declaration	Positive	+0.5%	Quarterly cash dividend of $0.25 per share announced for shareholders.
Dec 02	Acquisition completion	Positive	+0.0%	Completion of First IC acquisition, creating a larger combined franchise.
Nov 14	Merger timing update	Neutral	-1.5%	Announcement of expected closing date for First IC merger.
Oct 17	Quarterly earnings	Positive	+2.2%	Q3 2025 earnings with higher net income and solid profitability metrics.
Oct 15	Dividend declaration	Positive	-2.4%	Another $0.25 per share dividend declaration ahead of payment date.

Pattern Detected

Recent earnings and deal updates have generally seen modest positive reactions, while dividend announcements have produced mixed responses, sometimes diverging from the typically shareholder-friendly nature of such news.

Recent Company History

Over the last few months, MetroCity’s news flow featured consistent dividends, steady earnings growth, and the strategic acquisition of First IC. The Q3 2025 earnings release showed rising net income and expanding net interest margin. Subsequent announcements detailed merger timing and then completion, taking assets to about $4.8B. Dividend declarations at $0.25 per share have been regular. Today’s Q4 and full‑year 2025 earnings build directly on that trajectory and incorporate the First IC acquisition into reported results.

Market Pulse Summary

This announcement details stronger Q4 and full‑year 2025 results, with net income rising to $18.3M f...

Analysis

This announcement details stronger Q4 and full‑year 2025 results, with net income rising to $18.3M for the quarter and $68.7M for the year, alongside a higher net interest margin of 3.73%. It also folds in the First IC acquisition, which significantly expands loans and deposits. At the same time, the efficiency ratio climbed to 46.7%, reflecting higher noninterest expenses. Investors may track future quarters for integration progress, expense control, and sustainability of ROA and ROE levels.

Key Terms

net interest margin, efficiency ratio, provision for credit losses, interest rate derivative agreements, +4 more

8 terms

net interest margin financial

"Net interest margin increased to 3.73%, compared to 3.68% for the third 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.

efficiency ratio financial

"Efficiency ratio of 46.7%, compared to 38.7% for the third quarter of 2025"

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.

provision for credit losses financial

"offset by increases in noninterest expense of $5.8 million and provision for credit losses"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

interest rate derivative agreements technical

"The Company currently has interest rate derivative agreements totaling $825.0 million"

Contracts whose value and payments are tied to movements in interest rates, such as swaps, options or futures, used to lock in borrowing costs or gain from rate changes. Think of them like insurance or a guarded bet on future interest rates: they help investors and companies manage or transfer the risk that rising or falling rates will change borrowing costs or the value of interest-sensitive assets, which can materially affect cash flow and valuation.

cash flow hedges financial

"designated as cash flow hedges of our deposit accounts indexed to the Effective"

A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.

mortgage servicing asset financial

"We also recorded a $16,000 fair value impairment recovery on our mortgage servicing asset"

A mortgage servicing asset is the recorded value of the right to collect fees and profits for managing other people’s home loans over time. Think of it like owning the recipe and customer list for recurring baked-goods sales: the owner earns steady small payments but the total value can rise or fall based on interest rates, how quickly borrowers pay off loans, and defaults — factors that directly affect future cash flow and investor returns.

SBA loan sales financial

"SBA loan sales totaled $9.7 million (sales premium of 7.13%) during the fourth quarter"

SBA loan sales are transactions where loans guaranteed by the U.S. Small Business Administration are sold from one lender or investor to another on the secondary market. For investors, these sales offer a way to buy exposure to small-business lending with part of the credit risk backed by the government, affecting potential yield, liquidity and default protection much like buying an insured bond rather than an uninsured loan.

effective tax rate financial

"The Company's effective tax rate for the fourth quarter of 2025 was 21.6%"

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.

AI-generated analysis. Not financial advice.

ATLANTA, Jan. 30, 2026 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $18.3 million, or $0.68 per diluted share, for the fourth quarter of 2025, compared to $17.3 million, or $0.67 per diluted share, for the third quarter of 2025, and $16.2 million, or $0.63 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported net income of $68.7 million, or $2.64 per diluted share, compared to $64.5 million, or $2.52 per diluted share for the year ended December 31, 2024.

Fourth Quarter 2025 Highlights:

• Annualized return on average assets was 1.80%, compared to 1.89% for the third quarter of 2025 and 1.82% for the fourth quarter of 2024.
• Annualized return on average equity was 15.45%, compared to 15.69% for the third quarter of 2025 and 15.84% for the fourth quarter of 2024. Adjusted return on average shareholder's equity¹, which excluding average accumulated other comprehensive income and merger-related was 17.83% for the fourth quarter of 2025, compared to 16.10% for the third quarter of 2025 and 16.28% for the fourth quarter of 2024.
• Efficiency ratio of 46.7%, compared to 38.7% for the third quarter of 2025 and 40.5% for the fourth quarter of 2024.
• Net interest margin increased to 3.73%, compared to 3.68% for the third quarter of 2025 and 3.57% for the fourth quarter of 2024.
• Total loans held for investment increased by $1.1 billion, or 36.6%, to $4.1 billion from the third quarter of 2025. Excluding loans acquired from First IC, loans held for investment increased by $91.5 million, or 3.1%, from the third quarter of 2025.
• Total deposits increased by $952.9 million, or 35.4%, to $3.65 billion from the third quarter of 2025, Excluding deposits acquired from First IC, total deposits increased by $73.8 million, or 2.7%, from the third quarter of 2025.

Year-to-Date 2025 Highlights:

• Return on average assets increased to 1.85% compared to 1.81% for 2024.
• Return on average equity was 15.63%, compared to 16.16% for 2024. Adjusted return on average shareholder's equity¹ was 16.68%, compared to 17.01% for 2024.
• Efficiency ratio was 40.5%, compared to 37.8% for 2024.
• Net interest margin increased by 21 basis points to 3.72% from 3.51% for 2024.

______________________________________________

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

Acquisition of First IC Corporation and First IC Bank

 After the close of business on December 1, 2025, MetroCity completed its previously announced acquisition of First IC Corporation ("First IC"), the parent company of First IC Bank. Chairman and Chief Executive Officer Nack Paek stated, "First IC and MetroCity have long competed with and admired one another and we are pleased to have combined our two organizations to create a better bank for our customers. This partnership strengthens our competitive position and increases our financial flexibility as we continue to build the best bank possible and make a positive impact in the communities we serve."

Results of Operations

Net Income

Net income was $18.3 million for the fourth quarter of 2025, an increase of $1.0 million, or 6.0%, from $17.3 million for the third quarter of 2025. This increase was primarily due to increases in net interest income of $4.1 million and noninterest income of $1.6 million and a decrease in income tax expense of $1.5 million, offset by increases in noninterest expense of $5.8 million and provision for credit losses of $504,000. Net income increased by $2.1 million, or 12.8%, in the fourth quarter of 2025 compared to net income of $16.2 million for the fourth quarter of 2024. This increase was due to increases in net interest income of $5.9 million and noninterest income of $2.5 million, as well as a decrease in provision for credit losses of $241,000, offset by increases in noninterest expense of $6.1 million and income tax expense of $417,000.

Net income was $68.7 million for the year ended December 31, 2025, an increase of $4.2 million, or 6.5%, from $64.5 million for the year ended December 31, 2024. This increase was due to increases in net interest income of $12.3 million and noninterest income of $2.1 million, as well as a decrease in provision for credit losses of $834,000, offset by increases in noninterest expense $9.6 million and income tax expense of $1.4 million.

Net Interest Income and Net Interest Margin

Interest income totaled $60.3 million for the fourth quarter of 2025, an increase of $6.3 million, or 11.6%, from the third quarter of 2025, primarily due to a $370.6 million increase in the average loan balance and $14.3 million increase in the average total investment balances (both of which are mostly due to acquired First IC earning assets from the First IC acquisition). As compared to the fourth quarter of 2024, interest income for the fourth quarter of 2025 increased by $7.6 million, or 14.5%, primarily due to a $408.2 million increase in average loan balances and a $58.7 million increase in the average total investments balance, as well as an 11 basis points increase in the loan yield, offset by an 101 basis points decrease in the total investments yield. Excluding acquired First IC average earnings assets and related interest income, interest income totaled $54.0 million for the fourth quarter of 2025, a decrease of $38,000, or 0.1%, from the third quarter of 2025, and an increase of $541,000, or 2.4%, from the fourth quarter of 2024.

Interest expense totaled $24.3 million for the fourth quarter of 2025, an increase of $2.1 million, or 9.5%, from the third quarter of 2025, primarily due to a $268.0 million increase in average interest-bearing deposit balances and a $28.9 million increase in average borrowings balances (both of which are mostly due to acquired First IC interest-bearing liabilities from the First IC acquisition), offset by a 6 basis points decrease in interest-bearing deposit costs. As compared to the fourth quarter of 2024, interest expense for the fourth quarter of 2025 increased by $1.8 million, or 7.9%, primarily due to a $267.9 million increase in average interest-bearing deposit balances and a $78.9 million increase in average borrowings balances, offset by a 23 basis points decrease in deposit costs. Excluding acquired First IC average interest-bearing liabilities and related interest expense, interest expense totaled $22.4 million for the fourth quarter of 2025, an increase of $213,000, or 1.0%, from the third quarter of 2025, and a decrease of $130,000, or 0.6%, from the fourth quarter of 2024.

The Company currently has interest rate derivative agreements totaling $825.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.64% as of December 31, 2025). The weighted average pay rate for these interest rate derivatives is 2.62%. During the fourth quarter of 2025, we recorded a credit to interest expense of $2.9 million from the benefit received on these interest rate derivatives compared to a benefit of $3.8 million and $5.1 million recorded during the third quarter of 2025 and the fourth quarter of 2024, respectively.

The net interest margin for the fourth quarter of 2025 was 3.73% compared to 3.68% for the third quarter of 2025, an increase of five basis points. The yield on average interest-earning assets for the fourth quarter of 2025 increased by two basis points to 6.26% from 6.24% for the third quarter of 2025, and the cost of average interest-bearing liabilities for the fourth quarter of 2025 decreased by six basis points to 3.36% from 3.42% for the third quarter of 2025. Average earning assets increased by $384.9 million from the third quarter of 2025, due to an increase of $370.6 million in average loans and an increase of $14.3 million in average total investments, offset by a one basis point decrease in the yield on earnings assets. Average interest-bearing liabilities increased by $297.0 million from the third quarter of 2025 as average interest-bearing deposits increased by $268.0 million and average borrowings increased by $28.9 million. Excluding acquired First IC average assets and liabilities and related interest income and expense, the net interest margin for the fourth quarter of 2025 was 3.66%

As compared to the fourth quarter of 2024, the net interest margin for the fourth quarter of 2025 increased by 16 basis points to 3.73% from 3.57%, primarily due to a 19 basis points decrease in the cost of average interest-bearing liabilities of $2.87 billion and an one basis point increase in the yield on average interest-earning assets of $3.82 billion. Average earning assets for the fourth quarter of 2025 increased by $466.9 million from the fourth quarter of 2024, due to a $408.2 million increase in average loans and a $58.7 million increase in average total investments. Average interest-bearing liabilities for the fourth quarter of 2025 increased by $346.8 million from the fourth quarter of 2024, due to an increase in average interest-bearing deposits of $267.9 million and in increase in average borrowings of $78.9 million. 

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $7.8 million, an increase of $1.6 million, or 26.5%, from the third quarter of 2025, primarily due to higher gains on sale of residential mortgage loans and service charges on deposits, offset by lower mortgage loan origination fees due to lower volume, gain on sale and servicing income from our Small Business Administration ("SBA") loans, servicing income from our residential mortgage loans and other income. Mortgage loan originations totaled $111.7 million during the fourth quarter of 2025 compared to $168.6 million during the third quarter of 2025. Mortgage loan sales totaled $197.6 million (average sales premium of 1.15%) during the fourth quarter of 2025 compared to $18.2 million (average sales premium of 1.06%) during the third quarter of 2025. SBA loan sales totaled $9.7 million (sales premium of 7.13%) during the fourth quarter of 2025 compared to $13.4 million (sales premium of 6.13%) during the third quarter of 2025. During the fourth quarter of 2025, we recorded a $238,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment gain of $166,000 during the third quarter of 2025. We also recorded a $16,000 fair value impairment recovery on our mortgage servicing asset during the fourth quarter of 2025 compared to a $19,000 fair value impairment recovery recorded during the third quarter of 2025.

Compared to the fourth quarter of 2024, noninterest income for the fourth quarter of 2025 increased by $2.5 million, or 46.9%, primarily due to higher gains on sale of our residential mortgage loans and service charges on deposit, offset by lower gains on sale and servicing income from our SBA loans, servicing income from our residential mortgage loans and other income partially from higher unrealized gains on our equity securities. During the fourth quarter of 2024, we recorded a $31,000 fair value adjustment charge on our SBA servicing asset and a $232,000 fair value impairment recovery on our mortgage servicing asset.

Noninterest income for the year ended December 31, 2025 totaled $25.2 million, an increase of $2.1 million, or 9.2%, from the year ended December 31, 2024, primarily due to higher gains on sale of our residential mortgage loans, mortgage loan origination fees from higher mortgage loan volume, service charges on deposits and other income from unrealized gains recognized on our equity securities and increased bank owned life insurance income, offset by lower gains on sale and servicing income from our SBA loans and servicing income from our residential mortgage loans.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 totaled $20.4 million, an increase of $5.8 million, or 39.3%, from $14.7 million for the third quarter of 2025. This increase was primarily attributable to increases in First IC merger-related expenses and salaries and employee benefits primarily due to the addition of First IC employee payroll for all of December 2025, as well as higher incentive payments and related payroll taxes, higher depreciation, occupancy and security expenses from the addition of First IC locations, FDIC insurance premiums, and professional fees, partially offset by lower loan-related expenses..

Compared to the fourth quarter of 2024, noninterest expense during the fourth quarter of 2025 increased by $6.1 million, or 42.6%, primarily due to First IC merger-related expenses, higher salary and employee benefits, FDIC insurance premiums, equipment and occupancy expenses, data processing expenses, professional fees, security expense and loan-related expenses, partially offset by lower other real estate owned related expenses.

Noninterest expense for the year ended December 31, 2025 totaled $63.0 million, an increase of $9.6 million, or 18.1%, from $53.4 million for the year ended December 31, 2024. This increase was primarily attributable to increases in First IC merger-related expenses, salaries and employee benefits partially due to higher base salaries, the addition of First IC employees, commissions and incentives, employee insurance and stock based compensation, as well as higher expenses related to depreciation, occupancy, data processing, security, loans and professional services. These expense increases were partially offset by lower other real estate owned related expenses.

The Company's efficiency ratio was 46.7% for the fourth quarter of 2025 compared to 38.7% and 40.5% for the third quarter of 2025 and fourth quarter of 2024, respectively. For the year ended December 31, 2025, the efficiency ratio was 40.5% compared to 37.8% for the year ended December 31, 2024.

Income Tax Expense

The Company's effective tax rate for the fourth quarter of 2025 was 21.6%, compared to 27.6% for the third quarter of 2025 and 22.1% for the fourth quarter of 2024. The Company's effective tax rate for the year ended December 31, 2025 was 26.1% compared to 26.1% for the year ended December 31, 2024. The lower effective tax rate during the fourth quarter of 2025 was due to a tax provision to tax return adjustment recorded for our 2024 state tax returns filed during 2025, as well as a lower combined state tax rate from the First IC acquisition.

Balance Sheet

Total Assets

Total assets were $4.8 billion at December 31, 2025, an increase of $1.14 billion, or 31.4%, from $3.63 billion at September 30, 2025, and an increase of $1.17 billion, or 32.7%, from $3.59 billion at December 31, 2024. Excluding $1.19 billion of assets acquired from First IC (including goodwill and core deposit intangibles), total assets were $3.58 billion at December 31, 2025, a decrease of $52.8 million, or 1.5%, from $3.63 billion at September 30, 2025, and a decrease of $17.3 million, or 053%, from $3.59 billion at December 31, 2024. The $52.8 million decrease in total assets at December 31, 2025 compared to September 30, 2025 was primarily due to decreases in loans held for sale of $221.5 million, other assets of $4.5 million and interest rate derivatives of $3.1 million, partially offset by increases in cash and due from banks of $86.9 million and loans held for investment of $91.5 million. The $17.3 million decrease in total assets at December 31, 2025 compared to December 31, 2024 was primarily due to decreases in loans held for investment of $99.6 million and interest rate derivatives of $15.4 million, partially offset by increases in cash and due from banks of $64.5 million, other assets of $13.4 million, loans held for sale of $9.7 million, equity securities of $8.4 million, bank owned life insurance of $2.5 million and Federal Home Loan Bank stock of $2.4 million. 

Our investment securities portfolio is made up only 1.38% of our total assets at December 31, 2025 compared to 0.94% and 0.77% at September 30, 2025 and December 31, 2024, respectively.

Loans

Loans held for investment were $4.05 billion at December 31, 2025, an increase of $1.08 billion, or 36.6%, compared to $2.97 billion at September 30, 2025, and an increase of $893.5 million, or 28.3%, compared to $3.13 billion at December 31, 2024. Excluding $993.0 million of loans acquired from First IC, loans held for investment were $3.06 billion at December 31, 2025, an increase of $91.5 million, or 3.1%, compared to $2.97 billion at September 30, 2025, and a decrease of $99.6 million, or 3.2%, compared to $3.16 billion at December 31, 2024. The increase in loans at December 31, 2025 compared to September 30, 2025 was due to a $55.6 million increase in residential mortgage loans, a $8.1 million increase in construction and development loans, a $27.1 million increase in commercial real estate loans and a $4.2 million increase in commercial and industrial loans. Loans classified as held for sale totaled $9.7 million at December 31, 2025 compared to $231.3 million at September 30, 2025. No loans were classified as held for sale at December 31, 2024. The significant decrease in loans held for sale at December 31, 2025 compared to September 30, 2025 was done to provide the liquidity needed for the First IC merger closing.

Deposits

Total deposits were $3.65 billion at September 30, 2025, an increase of $952.9 million, or 35.4%, compared to total deposits of $2.69 billion at September 30, 2025, and an increase of $909.2 million, or 33.2%, compared to total deposits of $2.74 billion at December 30, 2024. Excluding $877.4 million of deposits acquired from First IC, total deposits were $2.77 billion at December 31, 2025, an increase of $75.6 million, or 2.8%, compared to total deposits of $2.69 billion at September 30, 2025, and an increase of $31.8 million, or 1.2%, compared to total deposits of $2.74 billion at December 31, 2024. The increase in total deposits at December 31, 2025 compared to September 30, 2025 was due to a $84.1 million increase in money market accounts (including a $70.4 million decrease in brokered money market accounts) and a $13.8 million increase in interest-bearing demand deposits, offset by a $14.2 million decrease in noninterest-bearing demand deposits, a $9.7 million decrease in time deposits and a $139,000 decrease in savings accounts.

Noninterest-bearing deposits were $780.8 million at December 31, 2025 (includes noninterest-bearing deposits of $249.2 million acquired from First IC), compared to $544.4 million at September 30, 2025 and $536.3 million at December 31, 2024. Noninterest-bearing deposits constituted 21.4% of total deposits at December 31, 2025, compared to 20.2% of total deposits at September 30, 2025 and 19.6% at December 31, 2024. Interest-bearing deposits were $2.87 billion at December 31, 2025 (includes interest-bearing deposits of $628.2 million acquired from First IC), compared to $2.15 billion at September 30, 2025 and $2.20 billion at December 31, 2024. Interest-bearing deposits constituted 78.6% of total deposits at December 31, 2025, compared to 79.8% at September 30, 2025 and 80.4% at December 31, 2024.

Uninsured deposits were 29.6% of total deposits at December 31, 2025, compared to 26.1% and 24.1% at September 30, 2025 and December 31, 2024, respectively. As of December 31, 2025, we had $1.23 billion of available borrowing capacity at the Federal Home Loan Bank ($577.9 million), Federal Reserve Discount Window ($600.4 million) and various other financial institutions (fed fund lines totaling $52.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $39,000 during the fourth quarter of 2025, compared to a credit provision for credit losses of $543,000 during the third quarter of 2025 and a provision for credit losses of $202,000 during the fourth quarter of 2024. The credit provision recorded during the fourth quarter of 2025 was primarily due to the decrease in reserves allocated to unfunded commitments and acquired First IC loans due to decreased balances since merger close, offset by increases in reserves allocated to our individually analyzed loans, as well as the increase in general reserves allocated to our residential mortgage loan portfolio. Annualized net charge-offs to average loans for the fourth quarter of 2025 was a net recovery of 0.00%, compared to net charge-offs of 0.03% for the third quarter of 2025 and 0.01% for the fourth quarter of 2024.

The Company adopted ASU 2025-08 during the fourth quarter 2025. ASU 2025-08 allowed us to record an allowance for credit losses balance on Day 1 for all loans acquired from First IC. The estimated Day 1 allowance for credit losses for First IC acquired loans was $9.9 million.

Nonperforming assets totaled $26.1 million (includes $7.5 million acquired from First IC), or 0.55% of total assets, at December 31, 2025, an increase of $12.2 million from $14.0 million, or 0.38% of total assets, at September 30, 2025, and an increase of $7.7 million from $18.4 million, or 0.51% of total assets, at December 31, 2024. Excluding nonperforming assets acquired from First IC, nonperforming assets increased by $4.6 million at December 31, 2025 compared to September 30, 2025. This increase was due to a $5.3 million increase in nonaccrual loans offset by a $711,000 decrease in other real estate owned. 

Allowance for credit losses as a percentage of total loans was 0.68% at December 31, 2025, compared to 0.60% at September 30, 2025 and 0.59% at December 31, 2024. Allowance for credit losses as a percentage of nonperforming loans was 107.48% at December 31, 2025, compared to 137.66% at September 30, 2025 and 104.08% at December 31, 2024, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 30 full-service branch locations and two loan production offices in multi-ethnic communities in Alabama, California, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, increasing insurance costs, changes in interest rates, including changes to the federal funds rate, which could have an adverse effect on the Company's profitability; impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers' businesses; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposits, liquidity and the regulatory response thereto; risks arising from negative media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; risks associated with the recent merger of First IC with the Company (the "Merger"), including the risk that the cost savings and any revenue synergies may not be realized or take longer than anticipated to be realized as well as disruption with customers, suppliers, employee or other business partners relationships; the risk of successful integration of First IC's business into the Company; the reaction of each of the Company's and First IC's customers, suppliers, employees or other business partners to the Merger; the risk that the integration of First IC's operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; general competitive, economic, political, and market conditions; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; the effects of war or other conflicts, including civil unrest; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs, those related to credit card interest rates, and legislative, regulatory or supervisory actions related to so–called "de–banking," including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts

Farid Tan	Lucas Stewart
President	Chief Financial Officer
770-455-4978	678-580-6414
faridtan@metrocitybank.bank	lucasstewart@metrocitybank.bank

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). The measures entitled adjusted return on average shareholder's equity and tangible book value per share are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholder's equity and book value per share, respectively. Adjusted return on average shareholder's equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of adjusted return on average shareholder's equity and tangible book value per share and the reconciliation of these measures to return on average shareholder's equity and book value per share are set forth in the table below. 

 

METROCITY BANKSHARES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
		As of or For the Three Months Ended															As of or For the Year Ended
(Dollars in thousands)		December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Return on average shareholder's equity reconciliation
Average shareholder's equity (GAAP)		$	470,299		$	436,619		$	428,644		$	421,679		$	407,705		$	439,436		$	399,170
Less: average accumulated other comprehensive income			(3,593)			(5,552)			(8,737)			(13,089)			(10,888)			(7,711)			(19,894)
Adjusted average shareholder's equity (non-GAAP)		$	466,706		$	431,067		$	419,907		$	408,590		$	396,817		$	431,725		$	379,276
Net income (GAAP)		$	18,312		$	17,270		$	16,826		$	16,297		$	16,235		$	68,705		$	64,504
Add: First IC-merger  related expenses (net of tax effect)			2,657			222			246			194			—			3,320			—
Adjusted net income (non-GAAP)		$	20,969		$	17,492		$	17,072		$	16,491		$	16,235		$	72,025		$	64,504
Return on average shareholder's equity (GAAP)			15.45	%		15.69	%		15.74	%		15.67	%		15.84	%		15.63	%		16.16	%
Adjusted return on average shareholder's equity (non-GAAP)			17.83	%		16.10	%		16.31	%		16.37	%		16.28	%		16.68	%		17.01	%
Tangible book value per share reconciliation
Total shareholder's equity (GAAP)		$	544,357		$	445,888		$	436,100		$	427,969		$	421,353		$	544,357		$	421,353
Less: goodwill and core deposit intangible			(68,675)			—			—			—			—			(68,675)			—
Adjust total shareholder's equity (non-GAAP)		$	475,682		$	445,888		$	436,100		$	427,969		$	421,353		$	475,682		$	421,353
Shares of common stock outstanding			28,817,967			25,537,746			25,537,746			25,402,782			25,402,782			28,817,967			25,402,782
Book value per share (GAAP)			18.89	%		17.46	%		17.08	%		16.85	%		16.59	%		18.89	%		16.59	%
Tangible book value per share (non-GAAP)			16.51	%		17.46	%		17.08	%		16.85	%		16.59	%		16.51	%		16.59	%

 

METROCITY BANKSHARES, INC. SELECTED FINANCIAL DATA
		As of and for the Three Months Ended															As of and for the Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)		2025			2025			2025			2025			2024			2025			2024
Selected income statement data:
Interest income		$	60,257		$	54,003		$	54,049		$	52,519		$	52,614		$	220,828		$	212,913
Interest expense			24,332			22,211			21,871			21,965			22,554			90,379			94,767
Net interest income			35,925			31,792			32,178			30,554			30,060			130,449			118,146
Provision for credit losses			(39)			(543)			129			135			202			(318)			516
Noninterest income			7,817			6,178			5,733			5,456			5,321			25,184			23,063
Noninterest expense			20,434			14,674			14,113			13,799			14,326			63,020			53,379
Income tax expense			5,035			6,569			6,843			5,779			4,618			24,226			22,810
Net income			18,312			17,270			16,826			16,297			16,235			68,705			64,504
Per share data:
Basic income per share		$	0.69		$	0.68		$	0.66		$	0.64		$	0.64		$	2.67		$	2.55
Diluted income per share		$	0.68		$	0.67		$	0.65		$	0.63		$	0.63		$	2.64		$	2.52
Dividends per share		$	0.25		$	0.25		$	0.23		$	0.23		$	0.23		$	0.96		$	0.83
Book value per share (at period end)		$	18.89		$	17.46		$	17.08		$	16.85		$	16.59		$	18.89		$	16.59
Tangible book value per share (at period end)(1)		$	16.51		$	17.46		$	17.08		$	16.85		$	16.59		$	16.51		$	16.59
Shares of common stock outstanding			28,817,967			25,537,746			25,537,746			25,402,782			25,402,782			28,817,967			25,402,782
Weighted average diluted shares			26,806,181			25,811,422			25,715,206			25,707,989			25,659,483			26,005,582			25,582,121
Performance ratios:
Return on average assets			1.80	%		1.89	%		1.87	%		1.85	%		1.82	%		1.85	%		1.81	%
Return on average equity			15.45			15.69			15.74			15.67			15.84			15.63			16.16
Dividend payout ratio			35.08			37.23			35.01			36.14			36.18			35.85			32.80
Yield on total loans			6.42			6.37			6.49			6.40			6.31			6.42			6.38
Yield on average earning assets			6.26			6.24			6.34			6.31			6.25			6.29			6.33
Cost of average interest-bearing liabilities			3.36			3.42			3.39			3.48			3.55			3.41			3.72
Cost of interest-bearing deposits			3.22			3.28			3.25			3.36			3.45			3.28			3.67
Net interest margin			3.73			3.68			3.77			3.67			3.57			3.72			3.51
Efficiency ratio(2)			46.71			38.65			37.23			38.32			40.49			40.49			37.80
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			(0.00)	%		0.03	%		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%
Nonperforming assets to gross loans held for investment and OREO			0.64			0.47			0.49			0.59			0.58			0.64			0.58
ACL to nonperforming loans			107.48			137.66			129.76			110.52			104.08			107.48			104.08
ACL to loans held for investment			0.68			0.60			0.60			0.59			0.59			0.68			0.59
Balance sheet and capital ratios:
Gross loans held for investment to deposits			111.84	%		110.43	%		116.34	%		114.73	%		115.66	%		111.84	%		115.66	%
Noninterest bearing deposits to deposits			21.42			20.22			20.41			19.73			19.60			21.42			19.60
Investment securities to assets			1.38			0.94			0.93			0.93			0.77			1.38			0.77
Common equity to assets			9.98			12.29			12.06			11.69			11.72			9.98			11.72
Leverage ratio			10.00			12.21			11.91			11.76			11.57			10.00			11.42
Common equity tier 1 ratio			15.90			19.93			19.91			19.23			19.17			15.90			19.17
Tier 1 risk-based capital ratio			15.90			19.93			19.91			19.23			19.17			15.90			19.17
Total risk-based capital ratio			16.84			20.74			20.78			20.09			20.05			16.84			20.05
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	702,586		$	538,675		$	559,112		$	537,590		$	527,039		$	702,586		$	527,039
Mortgage loan production			111,717			168,562			93,156			91,122			103,250			464,557			413,677
Mortgage loan sales			197,553			18,248			54,309			40,051			—			310,161			187,490
SBA/USDA loans serviced for others			685,481			460,720			480,867			474,143			479,669			685,481			479,669
SBA loan production			32,575			17,727			29,337			20,012			35,730			100,051			90,815
SBA loan sales			9,792			13,415			20,707			16,579			19,236			60,493			72,159

(1)	Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
(2)	Represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

METROCITY BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		As of the Quarter Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)		2025			2025			2025			2025			2024
ASSETS
Cash and due from banks		$	370,832		$	213,941		$	273,596		$	272,317		$	236,338
Federal funds sold			12,844			13,217			12,415			12,738			13,537
Cash and cash equivalents			383,676			227,158			286,011			285,055			249,875
Equity securities			18,646			18,605			18,481			18,440			10,300
Securities available for sale (at fair value)			47,179			15,365			15,030			15,426			17,391
Loans held for investment			4,051,397			2,966,859			3,121,534			3,132,535			3,157,935
Allowance for credit losses			(27,843)			(17,940)			(18,748)			(18,592)			(18,744)
Loans less allowance for credit losses			4,023,554			2,948,919			3,102,786			3,113,943			3,139,191
Loans held for sale			9,741			231,259			4,988			34,532			—
Accrued interest receivable			20,298			16,912			16,528			16,498			15,858
Federal Home Loan Bank stock			27,565			22,693			22,693			22,693			20,251
Premises and equipment, net			29,879			17,836			17,872			18,045			18,276
Operating lease right-of-use asset			15,193			7,712			8,197			7,906			7,850
Foreclosed real estate, net			208			919			744			1,707			427
SBA servicing asset, net			10,601			6,988			6,823			7,167			7,274
Mortgage servicing asset, net			1,660			1,662			1,676			1,476			1,409
Bank owned life insurance			75,786			75,148			74,520			73,900			73,285
Goodwill			56,048			—			—			—			—
Core deposit intangible			12,627			—			—			—			—
Interest rate derivatives			6,343			9,435			12,656			17,166			21,790
Other assets			29,391			28,852			26,683			25,771			10,868
Total assets		$	4,768,395		$	3,629,463		$	3,615,688		$	3,659,725		$	3,594,045
LIABILITIES
Noninterest-bearing deposits		$	780,828		$	544,439		$	548,906		$	539,975		$	536,276
Interest-bearing deposits			2,865,173			2,148,645			2,140,587			2,197,055			2,200,522
Total deposits			3,646,001			2,693,084			2,689,493			2,737,030			2,736,798
Federal Home Loan Bank advances			510,000			425,000			425,000			425,000			375,000
Operating lease liability			15,306			7,704			8,222			7,962			7,940
Accrued interest payable			10,731			3,567			3,438			3,487			3,498
Other liabilities			42,000			54,220			53,435			58,277			49,456
Total liabilities		$	4,224,038		$	3,183,575		$	3,179,588		$	3,231,756		$	3,172,692
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			1,159			255			255			254			254
Additional paid-in capital			138,675			51,151			50,212			49,645			49,216
Retained earnings			402,857			390,971			380,046			369,110			358,704
Accumulated other comprehensive income			1,666			3,511			5,587			8,960			13,179
Total shareholders' equity			544,357			445,888			436,100			427,969			421,353
Total liabilities and shareholders' equity		$	4,768,395		$	3,629,463		$	3,615,688		$	3,659,725		$	3,594,045

 

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended															Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)		2025			2025			2025			2025			2024			2025			2024
Interest and dividend income:
Loans, including fees		$	57,335		$	50,975		$	50,936		$	50,253		$	49,790		$	209,499		$	200,770
Other investment income			2,790			2,884			2,970			2,126			2,663			10,770			11,838
Federal funds sold			132			144			143			140			161			559			305
Total interest income			60,257			54,003			54,049			52,519			52,614			220,828			212,913
Interest expense:
Deposits			19,623			17,799			17,496			17,977			18,618			72,895			80,060
FHLB advances and other borrowings			4,709			4,412			4,375			3,988			3,936			17,484			14,707
Total interest expense			24,332			22,211			21,871			21,965			22,554			90,379			94,767
Net interest income			35,925			31,792			32,178			30,554			30,060			130,449			118,146
Provision for credit losses			(39)			(543)			129			135			202			(318)			516
Net interest income after provision for loan losses			35,964			32,335			32,049			30,419			29,858			130,767			117,630
Noninterest income:
Service charges on deposit accounts			772			551			505			500			563			2,328			2,073
Other service charges, commissions and fees			1,748			2,376			1,620			1,596			1,748			7,340			6,848
Gain on sale of residential mortgage loans			2,808			166			579			399			—			3,952			1,914
Mortgage servicing income, net			504			516			781			618			690			2,419			2,448
Gain on sale of SBA loans			463			558			643			658			811			2,322			2,945
SBA servicing income, net			800			1,203			642			913			956			3,558			4,243
Other income			722			808			963			772			553			3,265			2,592
Total noninterest income			7,817			6,178			5,733			5,456			5,321			25,184			23,063
Noninterest expense:
Salaries and employee benefits			10,674			8,953			8,554			8,493			9,277			36,674			33,207
Occupancy and equipment			1,581			1,410			1,380			1,417			1,406			5,788			5,524
Data Processing			466			394			329			345			335			1,534			1,293
Advertising			180			161			149			167			160			657			634
Merger-related expenses			3,596			301			333			262			—			4,492			—
Other expenses			3,937			3,455			3,368			3,115			3,148			13,875			12,721
Total noninterest expense			20,434			14,674			14,113			13,799			14,326			63,020			53,379
Income before provision for income taxes			23,347			23,839			23,669			22,076			20,853			92,931			87,314
Provision for income taxes			5,035			6,569			6,843			5,779			4,618			24,226			22,810
Net income available to common shareholders		$	18,312		$	17,270		$	16,826		$	16,297		$	16,235		$	68,705		$	64,504

 

METROCITY BANKSHARES, INC. QTD AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		December 31, 2025								September 30, 2025								December 31, 2024
		Average			Interest 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)		$	221,304		$	2,551		4.57	%	$	219,283		$	2,760		4.99	%	$	180,628		$	2,560		5.64	%
Investment securities			49,212			371		2.99			36,960			268		2.88			31,208			264		3.37
Total investments			270,516			2,922		4.29			256,243			3,028		4.69			211,836			2,824		5.30
Construction and development			35,440			692		7.75			29,130			613		8.35			17,974			384		8.50
Commercial real estate			1,062,523			22,717		8.48			812,759			17,239		8.42			757,937			16,481		8.65
Commercial and industrial			79,867			1,731		8.60			71,655			1,600		8.86			73,468			1,703		9.22
Residential real estate			2,367,289			32,141		5.39			2,261,108			31,480		5.52			2,287,731			31,172		5.42
Consumer and other			441			54		48.58			327			43		52.17			282			50		70.54
Gross loans(2)			3,545,560			57,335		6.42			3,174,979			50,975		6.37			3,137,392			49,790		6.31
Total earning assets			3,816,076			60,257		6.26			3,431,222			54,003		6.24			3,349,228			52,614		6.25
Noninterest-earning assets			212,002								193,365								192,088
Total assets			4,028,078								3,624,587								3,541,316
Interest-bearing liabilities:
NOW and savings deposits			238,695			1,603		2.66			188,576			1,476		3.11			133,728			685		2.04
Money market deposits			1,027,611			6,895		2.66			974,500			6,480		2.64			991,207			6,347		2.55
Time deposits			1,151,537			11,125		3.83			986,719			9,843		3.96			1,025,049			11,586		4.50
Total interest-bearing deposits			2,417,843			19,623		3.22			2,149,795			17,799		3.28			2,149,984			18,618		3.45
Borrowings			453,928			4,709		4.12			425,000			4,412		4.12			375,000			3,936		4.18
Total interest-bearing liabilities			2,871,771			24,332		3.36			2,574,795			22,211		3.42			2,524,984			22,554		3.55
Noninterest-bearing liabilities:
Noninterest-bearing deposits			614,242								538,755								533,931
Other noninterest-bearing liabilities			71,766								74,418								74,696
Total noninterest-bearing liabilities			686,008								613,173								608,627
Shareholders' equity			470,299								436,619								407,705
Total liabilities and shareholders' equity		$	4,028,078							$	3,624,587							$	3,541,316
Net interest income					$	35,925							$	31,792							$	30,060
Net interest spread								2.90								2.82								2.70
Net interest margin								3.73								3.68								3.57

______________________________________________
(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)	Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. YTD AVERAGE BALANCES AND YIELDS/RATES
		Year Ended
		December 31, 2025								December 31, 2024
		Average			Interest and			Yield /		Average			Interest and			Yield /
(Dollars in thousands)		Balance			Fees			Rate		Balance			Fees			Rate
Earning Assets:
Federal funds sold and other investments(1)		$	208,059		$	10,257		4.93	%	$	185,696		$	11,289		6.08	%
Investment securities			38,826			1,072		2.76			31,373			854		2.72
Total investments			246,885			11,329		4.59			217,069			12,143		5.59
Construction and development			29,061			2,365		8.14			17,148			1,511		8.81
Commercial real estate			865,860			73,725		8.51			738,200			66,751		9.04
Commercial and industrial			73,896			6,462		8.74			67,964			6,597		9.71
Residential real estate			2,294,620			126,744		5.52			2,321,075			125,737		5.42
Consumer and other			353			203		57.51			304			174		57.24
Gross loans(2)			3,263,790			209,499		6.42			3,144,691			200,770		6.38
Total earning assets			3,510,675			220,828		6.29			3,361,760			212,913		6.33
Noninterest-earning assets			199,348								209,058
Total assets			3,710,023								3,570,818
Interest-bearing liabilities:
NOW and savings deposits			186,114			5,119		2.75			138,827			3,537		2.55
Money market deposits			1,011,090			26,512		2.62			1,012,309			28,331		2.80
Time deposits			1,027,849			41,264		4.01			1,031,942			48,192		4.67
Total interest-bearing deposits			2,225,053			72,895		3.28			2,183,078			80,060		3.67
Borrowings			423,883			17,484		4.12			365,990			14,707		4.02
Total interest-bearing liabilities			2,648,936			90,379		3.41			2,549,068			94,767		3.72
Noninterest-bearing liabilities:
Noninterest-bearing deposits			549,337								536,084
Other noninterest-bearing liabilities			72,314								86,496
Total noninterest-bearing liabilities			621,651								622,580
Shareholders' equity			439,436								399,170
Total liabilities and shareholders' equity		$	3,710,023							$	3,570,818
Net interest income					$	130,449							$	118,146
Net interest spread								2.88								2.61
Net interest margin								3.72								3.51

______________________________________________
(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)	Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. LOAN DATA
		As of the Quarter Ended
		December 31, 2025					September 30, 2025					June 30, 2025					March 31, 2025					December 31, 2024
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and development		$	41,796		1.0	%	$	32,415		1.1	%	$	30,149		1.0	%	$	28,403		0.9	%	$	21,569		0.7	%
Commercial real estate			1,560,728		38.3			814,464		27.4			803,384		25.7			792,149		25.2			762,033		24.1
Commercial and industrial			96,360		2.4			69,430		2.3			73,832		2.3			71,518		2.3			78,220		2.5
Residential real estate			2,378,311		58.3			2,057,281		69.2			2,221,316		71.0			2,248,028		71.6			2,303,234		72.7
Consumer and other			627		—			325		—			200		—			67		—			260		—
Gross loans held for investment		$	4,077,822		100.0	%	$	2,973,915		100.0	%	$	3,128,881		100.0	%	$	3,140,165		100.0	%	$	3,165,316		100.0	%
Unearned income			(6,621)					(7,056)					(7,347)					(7,630)					(7,381)
Loan discounts			(19,804)					—					—					—					—
Allowance for credit losses			(27,843)					(17,940)					(18,748)					(18,592)					(18,744)
Net loans held for investment		$	4,023,554				$	2,948,919				$	3,102,786				$	3,113,943				$	3,139,191

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)		2025			2025			2025			2025			2024
Nonaccrual loans		$	25,906		$	13,032		$	14,448		$	16,823		$	18,010
Past due loans 90 days or more and still accruing			—			—			—			—			—
Total non-performing loans			25,906			13,032			14,448			16,823			18,010
Other real estate owned			208			919			744			1,707			427
Total non-performing assets		$	26,114		$	13,951		$	15,192		$	18,530		$	18,437
Nonperforming loans to gross loans held for investment			0.64	%		0.44	%		0.46	%		0.54	%		0.57	%
Nonperforming assets to total assets			0.55			0.38			0.42			0.51			0.51
Allowance for credit losses to non-performing loans			107.48			137.66			129.76			110.52			104.08

 

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES
		As of and for the Three Months Ended															As of and for the Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)		2025			2025			2025			2025			2024			2025			2024
Balance, beginning of period		$	17,940		$	18,748		$	18,592		$	18,744		$	18,589		$	18,744		$	18,112
First IC Day 1 ACL balance			9,885			—			—			—			—			9,885			—
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—			—			—
Commercial real estate			(1)			110			62			(1)			—			170			(83)
Commercial and industrial			(5)			117			(2)			170			99			280			119
Residential real estate			—			—			—			—			—			—			—
Consumer and other			—			—			—			—			—			—			—
Total net charge-offs/(recoveries)			(6)			227			60			169			99			450			36
Provision for loan losses			12			(581)			216			17			254			(336)			668
Balance, end of period		$	27,843		$	17,940		$	18,748		$	18,592		$	18,744		$	27,843		$	18,744
Total loans at end of period(1)		$	4,077,822		$	2,973,915		$	3,128,881		$	3,140,165		$	3,165,316		$	4,077,822		$	3,165,316
Average loans(1)		$	3,441,913		$	3,124,291		$	3,130,515		$	3,167,085		$	3,135,093		$	3,202,087		$	3,125,389
Net charge-offs/(recoveries) to average loans			(0.00)	%		0.03	%		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%
Allowance for loan losses to total loans			0.68			0.60			0.60			0.59			0.59			0.68			0.59

______________________________________________
(1)	Excludes loans held for sale.

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What were MetroCity (MCBS) Q4 2025 earnings and EPS?

MetroCity reported Q4 2025 net income of $18.3M, or $0.68 diluted EPS. According to the company, this compared to $17.3M and $0.67 in Q3 2025 and $16.2M and $0.63 in Q4 2024.

How did the First IC acquisition affect MetroCity's balance sheet and deposits?

The First IC acquisition added significant balances: total assets rose to $4.8B and deposits to $3.65B. According to the company, deposits increased 35.4% sequentially, with $1.19B of assets acquired on Dec 1, 2025.

What drove MetroCity's net interest margin (NIM) improvement in Q4 2025?

NIM increased to 3.73%, up five basis points sequentially. According to the company, higher average loan balances and lower cost of interest-bearing liabilities were primary drivers, excluding acquired assets NIM was 3.66%.

Why did MetroCity's efficiency ratio widen to 46.7% in Q4 2025?

The efficiency ratio widened due to higher noninterest expense from merger-related costs and added payroll. According to the company, First IC integration and related expenses materially raised Q4 operating costs.

Did MetroCity's profitability metrics change for full-year 2025?

Full-year 2025 net income rose to $68.7M and ROA increased to 1.85%. According to the company, ROE was 15.63% for 2025 with adjusted ROE at 16.68% including merger adjustments.