METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2026

A $4.0 million tax credit benefit helped quarterly earnings as noninterest income declined and expenses increased.

Rhea-AI Summary

MetroCity Bankshares (NASDAQ: MCBS) reported third-quarter 2026 net income of $24.3 million, up 40.7% from the same quarter last year. Diluted earnings per share were $0.84, versus $0.76 in the second quarter and $0.67 a year earlier. A $4.0 million tax credit benefit helped quarterly earnings; the effective tax rate fell to 13.1% from 27.7% sequentially.

Net interest margin was 4.07%, down from 4.11% sequentially but above 3.68% a year earlier. Noninterest income fell 29.0% year over year to $4.4 million, while noninterest expense rose 36.6% to $20.0 million. At September 30, deposits were $3.56 billion, up 2.1% sequentially; loans held for investment fell 0.1% to $3.98 billion. Nine-month net income reached $68.7 million, versus $50.4 million a year earlier. The fourth-quarter 2025 First IC acquisition contributed to year-over-year earnings growth.

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Positive

• Moderate pointThird-quarter net income reached $24.3 million, up 9.8% sequentially and 40.7% year over year.
• Moderate pointThird-quarter tax expense fell $4.8 million sequentially, including a $4.0 million tax credit benefit.
• Moderate pointNine-month net interest income increased $37.6 million year over year, reflecting the First IC acquisition.
• Moderate pointNine-month net interest margin increased 38 basis points to 4.09% from 3.71% in 2025.
• Moderate pointSeptember 30 assets reached $4.60 billion, up 1.7% from June and 26.7% year over year.
• Moderate pointSeptember 30 deposits reached $3.56 billion, up 2.1% from June and 32.3% year over year.

12 minor points

• Minor pointThird-quarter diluted EPS reached $0.84, versus $0.76 sequentially and $0.67 a year earlier.
• Minor pointNine-month net income increased 36.4% to $68.7 million from $50.4 million in 2025.
• Minor pointNine-month diluted EPS rose to $2.37 from $1.96 in 2025.
• Minor pointThird-quarter annualized return on assets reached 2.12%, versus 1.96% sequentially and 1.89% a year earlier.
• Minor pointThird-quarter annualized return on equity reached 16.97%, versus 16.01% sequentially and 15.69% a year earlier.
• Minor pointNine-month return on assets increased to 1.99% from 1.87% in 2025.
• Minor pointNine-month return on equity increased to 16.54% from 15.70% in 2025.
• Minor pointThird-quarter interest expense fell 0.7% sequentially to $26.2 million, but rose 17.8% year over year.
• Minor pointMortgage originations increased to $85.1 million in the third quarter from $75.4 million sequentially.
• Minor pointSeptember 30 cash and cash equivalents increased $50.3 million from June 30.
• Minor pointNoninterest-bearing deposit share reached 23.3% September 30, versus 22.4% in June and 20.2% a year earlier.
• Minor pointAvailable borrowing capacity totaled $1.66 billion at September 30.

Negative

• Moderate pointThird-quarter noninterest income fell to $4.4 million, down 23.8% sequentially and 29.0% year over year.
• Moderate pointThird-quarter noninterest expense reached $20.0 million, up 0.4% sequentially and 36.6% year over year.
• Moderate pointThird-quarter efficiency ratio worsened to 41.81%, versus 40.08% sequentially and 38.65% a year earlier.
• Moderate pointNine-month noninterest expense increased 44.3% to $61.4 million from the same period in 2025.
• Minor pointThird-quarter net interest income declined $483,000 sequentially.

11 minor points

• Minor pointThird-quarter net interest margin fell to 4.07% from 4.11% sequentially, but exceeded 3.68% a year earlier.
• Minor pointNine-month noninterest income declined 5.0% to $16.5 million from the same period in 2025.
• Minor pointNine-month efficiency ratio worsened to 41.35% from 38.06% in 2025.
• Minor pointThird-quarter interest income fell 1.0% sequentially to $69.7 million, but rose 29.1% year over year.
• Minor pointThird-quarter SBA loan sales fell to $9.7 million from $27.1 million sequentially.
• Minor pointThird-quarter SBA loan sales premium declined to 8.16% from 8.21% sequentially.
• Minor pointThird-quarter SBA servicing asset fair value fell $218,000, versus an $86,000 decline sequentially.
• Minor pointThird-quarter equity securities generated $743,000 in unrealized losses recognized in earnings.
• Minor pointSeptember 30 loans held for investment fell 0.1% to $3.98 billion from June, but rose 33.8% year over year.
• Minor pointUninsured deposit share rose to 34.7% September 30, versus 33.1% in June and 26.1% a year earlier.
• Minor pointThird-quarter credit-loss recovery declined to $72,000 from $792,000 in the second quarter.

News Explained

Nonperforming assets declined from June but remained above the year-earlier level.

MetroCity reported results for the completed third quarter; at September 30, 2026, 34.7% of deposits were uninsured and available borrowing capacity was $1.66 billion.

The uninsured share was up from 33.1% at June 30, 2026 and 26.1% a year earlier.

The available capacity comprised $964.7 million at the Federal Home Loan Bank, $629.5 million at the Federal Reserve Discount Window, and $67.5 million under fed funds lines with other institutions.

At September 30, 2026, nonperforming assets were $20.6 million, or 0.45% of total assets.

Key Figures

Net income: $24.3 million Diluted EPS: $0.84 Nine-month net income: $68.7 million +3 more

Net income

$24.3 million

Q3 2026; $22.1 million in Q2 2026 and $17.3 million in Q3 2025

Diluted EPS

$0.84

Q3 2026; $0.76 in Q2 2026 and $0.67 in Q3 2025

Nine-month net income

$68.7 million

Nine months ended September 30, 2026; $50.4 million in the comparable 2025 period

Nine-month diluted EPS

$2.37

Nine months ended September 30, 2026; $1.96 in the comparable 2025 period

Net interest margin

4.07%

Q3 2026; 4.11% in Q2 2026 and 3.68% in Q3 2025

Return on average assets

2.12%

Annualized, Q3 2026; 1.96% in Q2 2026 and 1.89% in Q3 2025

Historical Context

1 past event · Latest: Jul 24

1 event

1. Jul 24

   earnings report

   24h Move

   -5.2%

   Net income was $22.1 million; diluted EPS was $0.76, with net interest margin at 4.11%.

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

Key Terms

net interest margin, cash flow hedges, effective federal funds rate, non-gaap

4 terms

net interest margin financial

"Net interest margin was 4.07%, compared to 4.11% for the previous 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.

cash flow hedges financial

"designated as cash flow hedges of our deposit accounts"

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.

effective federal funds rate financial

"indexed to the Effective Federal Funds Rate"

The effective federal funds rate is the average interest rate banks pay each other for overnight loans of reserve balances held at the central bank, calculated from actual transactions across the market. It matters to investors because it acts as a benchmark that helps set borrowing costs, loan and bond rates, and company financing expenses—like a thermostat for the price of short-term money that influences stock and bond valuations.

non-gaap financial

"Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures""

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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ATLANTA, Oct. 23, 2026 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $24.3 million, or $0.84 per diluted share, for the third quarter of 2026, compared to $22.1 million, or $0.76 per diluted share, for the second quarter of 2026, and $17.3 million, or $0.67 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, the Company reported net income of $68.7 million or $2.37 per diluted share, compared to $50.4 million, or $1.96 per diluted share, for the same period in 2025.

Third Quarter 2026 Highlights:

• Annualized return on average assets was 2.12% compared to 1.96% for the second quarter of 2026 and 1.89% for the third quarter of 2025.
• Annualized return on average equity was 16.97%, compared to 16.01% for the second quarter of 2026 and 15.69% for the third quarter of 2025. Adjusted return on average shareholders' equity¹, which excluded average accumulated other comprehensive income and merger-related expenses, was 17.04% for the third quarter of 2026, compared to 16.17% for the second quarter of 2026, and 16.10% for the third quarter of 2025.
• Efficiency ratio was 41.81%, compared to 40.08% for the second quarter of 2026 and 38.65% for the third quarter of 2025. Operating efficiency ratio¹ was 41.56%, compared to 39.54% for the second quarter of 2026 and 37.85% for the third quarter of 2025.
• Net interest margin was 4.07%, compared to 4.11% for the second quarter of 2026 and 3.68% for the third quarter of 2025.

Year-to-Date 2026 Highlights:

• Return on average assets increased to 1.99% for the nine months ended September 30, 2026, compared to 1.87% for the same period in 2025.
• Return on average equity increased to 16.54% for the nine months ended September 30, 2026, compared to 15.70% for the same period in 2025. Adjusted return on average shareholders' equity¹, which, excluded average accumulated other comprehensive income and merger-related expenses, was 16.93% for the nine months ended September 30, 2026, compared to 16.25% for the same period in 2025.
• Efficiency ratio increased to 41.35% for the nine months ended September 30, 2026, compared to 38.06% for the same period in 2025.
• Net interest margin increased by 38 basis points to 4.09% for the nine months ended September 30, 2026, compared to 3.71% for the same period in 2025.

________________________

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 $24.3 million for the third quarter of 2026, an increase of $2.2 million, or 9.8%, from $22.1 million for the second quarter of 2026. The increase primarily reflected a $4.8 million decrease in income tax expense, including a $4.0 million tax credit benefit, partially offset by a $1.4 million decrease in noninterest income, a $720,000 reduction in the recovery for credit losses, a $483,000 decrease in net interest income, and an $87,000 increase in noninterest expense.  Net income increased by $7.0 million, or 40.7%, compared to $17.3 million for third quarter of 2025.  The year-over-year increase reflected the acquisition of First IC Corporation ("First IC") in the fourth quarter of 2025 and was primarily attributable to a $15.7 million increase in interest income and a decrease in a $2.9 million increase in income tax, offset by a $4.0 million increase in interest expense, a $5.4 million increase in noninterest expenses, a $1.8 million decrease in noninterest income, and a $471,000 reduction in the recovery for credit losses.

Net income was $68.7 million for the nine months ended September 30, 2026, an increase of $18.4 million, or 36.4%, from $50.4 million for same period in 2025. The increase reflected the First IC acquisition in the fourth quarter of 2025, and was primarily attributable to a $37.6 million increase in net interest income and a $1.4 million increase in recovery of credit losses, partially offset by a $18.9 million increase in noninterest expense, an $871,000 decrease in noninterest income and an $885,000 increase in income tax expense.

Net Interest Income and Net Interest Margin

Interest income totaled $69.7 million for the third quarter of 2026, down $678,000, or 1.0%, from the previous quarter, primarily due to a $56.2 million decrease in average gross loans. Compared with the third quarter of 2025, interest income increased by $15.7 million, or 29.1%, primarily due to a $766.9 million increase in the average balance of gross loans, a $44.8 million increase in the average balance of investments, and a 33-basis-point increase in loan yield.

Interest expense totaled $26.2 million for the third quarter of 2026, a decrease of $195,000, or 0.7%, from the previous quarter, primarily due to a $27.9 million decrease in average interest-bearing deposits and a $34.8 million decrease in average borrowings. As compared to the third quarter of 2025, interest expense for the third quarter of 2026 increased by $4.0 million, or 17.8%, primarily due to a $562.8 million increase in average interest-bearing deposits balances and offset by a $49.6 million decrease in average borrowing balances and a three-basis point decrease in interest-bearing deposit costs. The Company currently has interest rate derivative agreements totaling $650.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.88% as of September 30, 2026). The weighted average pay rate for these interest rate derivatives is 3.38%. During the third quarter of 2026, we recorded a credit to interest expense of $1.5 million from the benefit received on these interest rate derivatives compared to a credit of $1.4 million and $3.8 million recorded during the second quarter of 2026 and the third quarter of 2025, respectively.

The net interest margin for the third quarter of 2026 was 4.07%, compared to 4.11% for the previous quarter, a decrease of four basis points. The yield on average interest-earning assets decreased by five basis points to 6.52% from 6.57%, while the cost of average interest-bearing liabilities remained unchanged at 3.36%. Average interest-earning assets decreased by $54.1 million from the previous quarter, primarily due to a $56.2 million decrease in average loan balances. Average interest-bearing liabilities decreased by $62.8 million, reflecting a $27.9 million decrease in average interest-bearing deposits and a $34.8 million decrease in average borrowings.

As compared to the same period in 2025, the net interest margin for the third quarter of 2026 increased by 39 basis points to 4.07% from 3.68%, primarily due to a 28-basis-point increase in the yield on average interest-earning assets of $4.24 billion and a six-basis-point decrease in the cost of average interest-bearing liabilities of $3.09 billion. Average earning assets for the third quarter of 2026 increased by $811.7 million from the third quarter of 2025, due to a $44.8 million increase in average total investments and a $766.9 million increase in average loans. Average interest-bearing liabilities for the third quarter of 2026 increased by $513.1 million from the third quarter of 2025, driven by the increase in average interest-bearing deposits of $562.8 million, offset by a $49.6 million decrease in average borrowings.

Noninterest Income

Noninterest income for third quarter of 2026 was $4.4 million, a decrease of $1.4 million, or 23.8%, from the second quarter of 2026, primarily due to lower gain on sale of SBA loans and other income attributable to a decline in the fair value of the equity securities, reflecting changes in market interest rates during the quarter, offset by an increase in SBA servicing income, net and other service charges, commissions and fees.  SBA loan sales totaled $9.7 million (sales premium of 8.16%) during the third quarter of 2026 compared to $27.1 million (sales premium of 8.21%) during the second quarter of 2026. Mortgage loan originations totaled $85.1 million during the third quarter of 2026 compared to $75.4 million during the second quarter of 2026. There were no mortgage loan sales during the third quarter of 2026 or the second quarter of 2026.  During the third quarter of 2026, the fair value of our SBA servicing asset decreased by $218,000 compared to a decrease in fair value of $86,000 during the second quarter of 2026. We also recorded no fair value impairment change on our mortgage servicing asset during the third quarter of 2026 or the second quarter of 2026. The unrealized losses recognized on our equity securities of $743,000.  These equity securities consist of the Company's investment in a mutual fund holding high-quality fixed income securities, which supports affordable housing in the Company's markets and qualifies under the Community Reinvestment Act. Under GAAP, changes in the fair value of this investment are recognized in earnings, even though the underlying holdings are bonds. This investment remains an important part of the Bank's community development strategy, particularly following the completion of our recent merger.

Compared to the third quarter of 2025, noninterest income for the third quarter of 2026 decreased by $1.8 million or 29.0%, primarily due decreases in servicing income and gain on sale from our residential mortgage loans, servicing income from our SBA loans, other service charges and decline in fair value of equity securities included in other income, offset by increases in gains on sale on SBA loans and service charges on deposit accounts.

Noninterest income for the nine months ended September 30, 2026 totaled $16.5 million, a decrease of $871,000, or 5.0%, from the nine months ended September 30, 2025, primarily due to decreases in gain on sale and servicing income on residential mortgage loans, other service charges, and other income, offset by higher gains on sale and servicing income on SBA loans and service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the third quarter of 2026 totaled $20.0 million, an increase of $87,000, or 0.4%, from $20.0 million for the second quarter of 2026. This increase was primarily attributable to increases in salaries and employee benefits, advertising, occupancy and equipment, and data processing, partially offset by a decrease in merger-related expenses and other expenses.

Compared to the third quarter of 2025, noninterest expense during the third quarter of 2026 increased by $5.4 million, or 36.6%, 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 from the First IC acquisition that occurred in the fourth quarter of 2025.

Noninterest expense for the nine months ended September 30, 2026 totaled $61.4 million, an increase of $18.9 million, or 44.3%, from $42.6 million for the nine months ended September 30, 2025. This increase was primarily attributable to increases in salaries and employee benefits partially due to higher commissions, employee insurance, and stock-based compensation, as well as higher expenses related to merger-related expenses, depreciation, occupancy, data processing, security, loans, and professional services.

The Company's efficiency ratio was 41.81% for the third quarter of 2026 compared to 40.08% and 38.65% for the second quarter of 2026 and the third quarter of 2025, respectively.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2026 was 13.1%, compared to 27.7% for the second quarter of 2026 and 27.6% for the third quarter of 2025.  The decrease in effective income tax rate for the quarter was primarily driven by the utilization of tax credits during the current period.

Balance Sheet

Total assets were $4.60 billion at September 30, 2026, an increase of $77.9 million, or 1.7%, from $4.52 billion at June 30, 2026, and an increase of $968.4 million or 26.7%, from $3.63 billion at September 30, 2025. The $77.9 million increase in total assets at September 30, 2026 compared to June 30, 2026 was primarily due to increases of $50.3 million in cash and cash equivalents and $36.4 million increase in other assets, primarily related increase in income taxes receivable resulting from the utilization of tax credits during the quarter. The increase in liabilities and equity was $72.7 million in deposits and $15.9 million in increase in retained earnings. The $968.4 million increase in total assets at September 30, 2026 compared to September 30, 2025 was primarily due to the First IC acquisition that occurred in the fourth quarter of 2025, with increases in gross loans of $987.0 million, goodwill and core deposit intangible of $67.7 million, securities of $6.9 million, operating lease right-of-use asset of $5.6 million, servicing asset of $3.5 million, and premises and equipment of $8.3 million partially offset by a decrease in interest rate derivatives of $5.2 million.

Investment Securities

Our investment securities portfolio made up only 0.89% of our total assets at September 30, 2026, compared to 0.99% and 0.94% at June 30, 2026 and September 30, 2025, respectively.

Loans

Gross loans held for investment were $3.98 billion at September 30, 2026, a decrease of $3.8 million, or 0.1%, compared to $3.98 billion at June 30, 2026, and an increase of $1.00 billion, or 33.8%, compared to $2.97 billion at September 30, 2025. The decrease in loans at September 30, 2026 compared to June 30, 2026 was due to a $28.7 million decrease in residential real estate loans, a $3.3 million decrease in commercial and industrial loans, offset by a $16.0 million increase in commercial real estate, and a $12.3 million increase in construction and development loans.  Loans classified as held for sale totaled $0, $1.4 million, and $231.3 million at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

Deposits

Deposits were $3.56 billion at September 30, 2026, an increase of $72.7 million, or 2.1%, compared to total deposits of $3.49 billion at June 30, 2026, and an increase of $869.0 million, or 32.3%, compared to total deposits of $2.69 billion at September 30, 2025. The increase in total deposits at September 30, 2026 compared to June 30, 2026 was due to a $45.3 million increase in noninterest-bearing deposits, a $6.6 million increase in time deposits, an $18.6 million increase in money market accounts, and an increase of $2.8 million in interest-bearing demand deposits offset by a $566,000 decrease in savings accounts.

Noninterest-bearing deposits were $828.3 million at September 30, 2026, compared to $783.0 million at June 30, 2026 and $544.4 million at September 30, 2025. Noninterest-bearing deposits constituted 23.3% of total deposits at September 30, 2026, compared to 22.4% at June 30, 2026 and 20.2% at September 30, 2025. Interest-bearing deposits were $2.73 billion at September 30, 2026, compared to $2.71 billion at June 30, 2026 and $2.15 billion at September 30, 2025. Interest-bearing deposits constituted 76.7% of total deposits at September 30, 2026, compared to 77.6% at June 30, 2026 and 79.8% at September 30, 2025.

Uninsured deposits were 34.7% of total deposits at September 30, 2026, compared to 33.1% and 26.1% at June 30, 2026 and September 30, 2025, respectively. As of September 30, 2026, we had a $1.66 billion available borrowing capacity consisting of $964.7 million at the Federal Home Loan Bank, $629.5 million at the Federal Reserve Discount Window, and $67.5 million under fed funds lines with various other financial institutions.

Asset Quality

The Company recorded a recovery for credit losses of $72,000 during the third quarter of 2026, compared to recoveries of $792,000 during the second quarter of 2026 and $543,000 during the third quarter of 2025. The third-quarter recovery primarily reflected lower loan balances. Annualized net recoveries to average loans were 0.00% for the third quarter of 2026, compared to recoveries of 0.01% for the second quarter of 2026 and net charge-offs of 0.03% for the third quarter of 2025.

Nonperforming assets totaled $20.6 million, or 0.45% of total assets, at September 30, 2026 (which comprised of $16.1 million in nonperforming loans and $4.5 million in other real estate owned, including $3.4 million of branches taken out of service) a decrease of $3.2 million, from $23.8 million, of 0.53% of total assets, at June 30, 2026, and an increase of $6.7 million from $14.0 million, or 0.38% of total assets, at September 30, 2025.  The decrease in nonperforming assets at September 30, 2026 compared to June 30, 2026 was due to a $6.4 million decrease in nonperforming loans offset by an increase in other real estate owned of $3.2 million.

Allowance for credit losses as a percentage of total loans was 0.65% at September 30, 2026, compared to 0.65% at June 30, 2026 and 0.60% at September 30, 2025. Allowance for credit losses as a percentage of nonperforming loans was 159.78% at September 30, 2026, compared to 114.63% and 137.66% at June 30, 2026 and September 30, 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 27 full-service branch locations and two loan production offices 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; 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 shareholders' equity, tangible book value per share, efficiency ratio-operating are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholders' equity, book value per share, and efficiency ratio respectively. Adjusted return on average shareholders' equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.  Efficiency ratio-operating excludes merger-related expenses from noninterest expense. The reconciliation is included in the table below.

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 shareholders' equity, tangible book value per share, and efficiency ratio-operating and the reconciliation of these measures to return on average shareholders' equity, book value per share, and efficiency ratio 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 Nine Months Ended
(Dollars in thousands)		September 30,  2026			June 30,  2026				March 31,  2026			December 31,  2025			September 30,  2025			September 30,  2026			September 30,  2025
Return on average shareholders' equity reconciliation
Average shareholders' equity (GAAP)		$	568,112		$	554,588			$	543,732		$	470,299		$	436,619		$	555,567		$	429,035
Less: average accumulated other comprehensive income (loss)			(286)			(649)				1,679			3,593			5,552			(675)			9,099
Adjusted average shareholders' equity (non-GAAP)		$	568,398		$	555,237			$	542,053		$	466,706		$	431,067		$	556,242		$	419,936
Net income (GAAP)		$	24,299		$	22,131			$	22,314		$	18,139		$	17,270		$	68,744		$	50,393
Add: First IC-merger related expenses (net of tax effect)			85			195				1,238			2,831			222			1,535			650
Adjusted net income (non-GAAP)		$	24,384		$	22,326			$	23,552		$	20,970		$	17,492		$	70,279		$	51,043
Return on average shareholders' equity (GAAP)			16.97	%		16.01	%			16.64	%		15.30	%		15.69	%		16.54	%		15.69	%
Adjusted return on average shareholders' equity (non-GAAP)			17.02	%		16.13	%			17.62	%		17.83	%		16.10	%		16.89	%		16.25	%
Tangible book value per share reconciliation
Total shareholders' equity (GAAP)		$	583,930		$	567,854			$	554,156		$	544,184		$	445,888		$	583,930		$	445,888
Less: goodwill and core deposit intangible			67,720			68,039				68,357			68,675			—			67,720			—
Adjusted total shareholders' equity (non-GAAP)		$	516,210		$	499,815			$	485,799		$	475,509		$	445,888		$	516,210		$	445,888
Shares of common stock outstanding			28,781,229			28,781,229				28,660,042			28,817,967			25,537,746			28,781,229			25,537,746
Book value per share (GAAP)		$	20.29		$	19.73			$	19.34		$	18.88		$	17.46		$	20.29		$	17.46
Tangible book value per share (non-GAAP)		$	17.94		$	17.37			$	16.95		$	16.50		$	17.46		$	17.94		$	17.46
Efficiency Ratio reconciliation
Efficiency ratio (GAAP)			41.81	%		40.08	%			42.16	%		46.71	%		38.65	%		41.35	%		38.06	%
Impact of First IC-merger related expenses included in noninterest expense			(0.24)			(0.54)				(3.29)			(8.22)			(0.80)			(1.39)			(0.80)
Efficiency ratio-operating (non-GAAP)			41.57	%		39.54	%			38.87	%		38.49	%		37.85	%		39.96	%		37.26	%

 

METROCITY BANKSHARES, INC.
		As of and for the Three Months Ended															As of and for the Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)		2026			2026			2026			2025			2025			2026			2025
Selected income statement data:
Interest income		$	69,727		$	70,405		$	70,990		$	60,257		$	54,003		$	211,122		$	160,571
Interest expense			26,169			26,364			26,503			24,332			22,211			79,036			66,047
Net interest income			43,558			44,041			44,487			35,925			31,792			132,086			94,524
Provision for credit losses			(72)			(792)			(813)			(39)			(543)			(1,677)			(279)
Noninterest income			4,384			5,755			6,357			7,817			6,178			16,496			17,367
Noninterest expense			20,044			19,957			21,438			20,671			14,674			61,439			42,586
Income tax expense			3,671			8,500			7,905			4,971			6,569			20,076			19,191
Net income			24,299			22,131			22,314			18,139			17,270			68,744			50,393
Per share data:
Basic income per share		$	0.84		$	0.77		$	0.78		$	0.69		$	0.68		$	2.39		$	1.98
Diluted income per share		$	0.84		$	0.76		$	0.77		$	0.68		$	0.67		$	2.37		$	1.96
Dividends per share		$	0.29		$	0.29		$	0.29		$	0.25		$	0.25		$	0.87		$	0.71
Book value per share (at period end)		$	20.29		$	19.73		$	19.34		$	18.89		$	17.46		$	20.29		$	17.46
Tangible book value per share (at period end)(1)		$	17.94		$	17.37		$	16.95		$	16.50		$	17.46		$	17.94		$	17.46
Shares of common stock outstanding			28,781,229			28,781,229			28,660,042			28,817,967			25,537,746			28,781,229			25,537,746
Weighted average diluted shares			29,037,344			28,949,200			29,051,061			26,806,181			25,811,422			29,002,897			25,735,688
Performance ratios:
Return on average assets			2.12	%		1.96	%		1.96	%		1.80	%		1.89	%		1.99	%		1.87	%
Return on average equity			16.97			16.01			16.64			15.45			15.69			16.54			15.70
Adjusted return on average equity (1)			17.02			16.13			17.62			17.83			16.10			16.89			16.25
Dividend payout ratio			34.51			32.55			32.49			35.08			37.23			33.22			36.13
Yield on total loans			6.70			6.75			6.74			6.42			6.37			6.73			6.42
Yield on average earning assets			6.52			6.57			6.51			6.26			6.24			6.53			6.30
Cost of average interest-bearing liabilities			3.36			3.36			3.25			3.36			3.42			3.32			3.43
Cost of interest-bearing deposits			3.25			3.24			3.12			3.22			3.28			3.20			3.30
Net interest margin			4.07			4.11			4.08			3.73			3.68			4.09			3.71
Efficiency ratio(2)			41.81			40.08			42.16			46.71			38.65			41.35			38.06
Efficiency ratio - operating (1)(2)			41.57			39.54			38.87			38.49			37.85			39.96			37.26
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			(0.00)	%		(0.01)	%		0.03	%		(0.00)	%		0.03	%		(0.00)	%		0.02	%
Nonperforming assets to gross loans held for investment and OREO			0.52			0.60			0.45			0.64			0.47			0.52			0.47
ACL to nonperforming loans			159.78			114.63			158.54			107.48			137.66			159.78			137.66
ACL to loans held for investment			0.65			0.65			0.66			0.68			0.60			0.65			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits			111.73	%		114.16	%		111.12	%		111.84	%		110.43	%		111.73	%		110.43	%
Noninterest bearing deposits to deposits			23.25			22.44			22.04			21.42			20.22			23.25			20.22
Investment securities to assets			0.89			0.99			0.96			1.38			0.94			0.89			0.94
Common equity to assets			12.70			12.56			11.82			11.42			12.29			12.70			12.29
Leverage ratio			11.50			11.08			10.47			10.00			12.21			11.50			12.21
Common equity tier 1 ratio			17.46			17.15			16.52			15.90			19.93			17.46			19.93
Tier 1 risk-based capital ratio			17.46			17.15			16.52			15.90			19.93			17.46			19.93
Total risk-based capital ratio			18.35			18.05			17.44			16.84			20.74			18.35			20.74
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	429,484		$	463,501		$	496,552		$	702,586		$	538,675		$	429,484		$	538,675
Mortgage loan production			85,070			75,373			101,948			111,717			168,562			262,391			352,840
Mortgage loan sales			—			—			—			197,553			18,248			—			112,608
SBA/USDA loans serviced for others			676,228			682,172			699,028			685,481			460,720			676,228			460,720
SBA loan production			25,658			46,588			20,816			32,575			17,727			93,062			67,126
SBA loan sales			9,675			27,140			19,733			9,792			13,415			56,548			50,701

(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
		September 30,				June 30,		March 31,			December 31,			September 30,
(Dollars in thousands)		2026			2026			2026			2025			2025
ASSETS
Cash and due from banks		$	$ 301,716		$	254,368		$	373,956		$	370,832		$	213,941
Federal funds sold			15,298			12,322			13,645			12,844			13,217
Cash and cash equivalents			317,014			266,690			387,601			383,676			227,158
Equity securities			17,739			18,481			18,564			18,646			18,605
Securities available for sale (at fair value)			23,140			26,183			26,616			47,179			15,365
Loans held for investment			3,953,889			3,956,319			4,001,114			4,051,397			2,966,859
Allowance for credit losses			(25,753)			(25,818)			(26,700)			(27,843)			(17,940)
Loans less allowance for credit losses			3,928,136			3,930,501			3,974,414			4,023,554			2,948,919
Loans held for sale			—			1,350			—			9,741			231,259
Accrued interest receivable			20,387			20,115			20,299			20,298			16,912
Federal Home Loan Bank stock			21,112			21,112			23,487			27,565			22,693
Premises and equipment, net			26,091			29,619			29,633			29,879			17,836
Operating lease right-of-use asset			13,272			14,040			14,412			15,193			7,712
Other real estate owned, net			4,514			1,300			1,147			208			919
SBA servicing asset, net			10,962			11,180			11,267			10,601			6,988
Mortgage servicing asset, net			1,148			1,308			1,484			1,660			1,662
Bank owned life insurance			77,710			77,066			76,424			75,786			75,148
Goodwill			56,048			56,048			56,048			56,048			—
Core deposit intangible			11,672			11,991			12,309			12,627			—
Interest rate derivatives			4,259			4,791			4,970			6,343			9,435
Other assets			64,620			28,179			29,672			29,396			28,852
Total assets		$	4,597,824		$	4,519,954		$	4,688,347		$	4,768,400		$	3,629,463
LIABILITIES
Noninterest-bearing deposits		$	$ 828,282		$	782,972		$	799,190		$	780,828		$	544,439
Interest-bearing deposits			2,733,760			2,706,385			2,827,484			2,865,173			2,148,645
Total deposits			3,562,042			3,489,357			3,626,674			3,646,001			2,693,084
Federal Home Loan Bank advances			375,000			375,000			425,000			510,000			425,000
Operating lease liability			13,347			14,131			14,516			15,306			7,704
Accrued interest payable			5,800			7,537			10,200			10,731			3,567
Other liabilities			57,705			66,075			57,801			42,178			54,220
Total liabilities		$	4,013,894		$	3,952,100		$	4,134,191		$	4,224,216		$	3,183,575
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			288			288			286			1,159			255
Additional paid-in capital			137,051			136,123			135,531			138,675			51,151
Retained earnings			447,429			431,518			417,750			402,684			390,971
Accumulated other comprehensive income			(838)			(75)			589			1,666			3,511
Total shareholders' equity			583,930			567,854			554,156			544,184			445,888
Total liabilities and shareholders' equity		$	4,597,824		$	4,519,954		$	4,688,347		$	4,768,400		$	3,629,463

 

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended															Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)		2026			2026			2026			2025			2025			2026			2025
Interest and dividend income:
Loans, including fees		$	66,584		$	67,312		$	67,139		$	57,335		$	50,975		$	201,035		$	152,164
Other investment income			3,018			2,972			3,730			2,790			2,884			9,720			7,980
Federal funds sold			125			121			121			132			144			367			427
Total interest income			69,727			70,405			70,990			60,257			54,003			211,122			160,571
Interest expense:
Deposits			22,227			22,140			22,077			19,623			17,799			66,444			53,272
FHLB advances and other borrowings			3,942			4,224			4,426			4,709			4,412			12,592			12,775
Total interest expense			26,169			26,364			26,503			24,332			22,211			79,036			66,047
Net interest income			43,558			44,041			44,487			35,925			31,792			132,086			94,524
Provision (recovery) for credit losses			(72)			(792)			(813)			(39)			(543)			(1,677)			(279)
Net interest income after provision for loan losses			43,630			44,833			45,300			35,964			32,335			133,763			94,803
Noninterest income:
Service charges on deposit accounts			929			958			848			772			551			2,735			1,556
Other service charges, commissions and fees			1,537			1,428			1,581			1,748			2,376			4,546			5,592
Gain on sale of assets			22			—			—			—			—			22			—
Gain on sale of residential mortgage loans			—			—			—			2,808			166			—			1,144
Mortgage servicing income, net			234			271			306			504			516			811			1,915
Gain on sale of SBA loans			685			1,536			1,045			463			558			3,266			1,859
SBA servicing income, net			863			728			1,905			800			1,203			3,496			2,758
Other income			114			834			672			722			808			1,620			2,543
Total noninterest income			4,384			5,755			6,357			7,817			6,178			16,496			17,367
Noninterest expense:
Salaries and employee benefits			11,749			11,344			11,501			10,674			8,953			34,594			26,000
Occupancy and equipment			2,427			2,328			2,434			1,581			1,410			7,189			4,207
Data Processing			636			535			682			466			394			1,853			1,068
Advertising			310			178			223			180			161			711			477
Merger-related expenses			117			270			1,676			3,833			301			2,063			650
Other expenses			4,805			5,302			4,922			3,937			3,455			15,029			10,184
Total noninterest expense			20,044			19,957			21,438			20,671			14,674			61,439			42,586
Income before provision for income taxes			27,970			30,631			30,219			23,110			23,839			88,820			69,584
Provision for income taxes			3,671			8,500			7,905			4,971			6,569			20,076			19,191
Net income available to common shareholders		$	24,299		$	22,131		$	22,314		$	18,139		$	17,270		$	68,744		$	50,393

 

METROCITY BANKSHARES, INC. QTD AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		September 30, 2026								June 30, 2026								September 30, 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)		$	$ 254,091		$	$ 2,395		3.74	%	$	250,992		$	2,320		3.71	%	$	219,283		$	2,760		4.99	%
Investment securities			46,919			748		6.32			47,970			773		6.46			36,960			268		2.88
Total investments			301,010			3,143		4.15			298,962			3,093		4.15			256,243			3,028		4.69
Construction and development			72,091			1,319		7.26			58,374			1,059		7.28			29,130			613		8.35
Commercial real estate			1,420,660			28,813		8.05			1,454,209			29,466		8.13			812,759			17,239		8.42
Commercial and industrial			82,879			1,786		8.55			88,982			2,166		9.76			71,655			1,600		8.86
Residential real estate			2,365,761			34,657		5.81			2,395,849			34,610		5.79			2,261,108			31,480		5.52
Consumer and other			478			9		7.47			636			11		6.94			327			43		52.17
Gross loans(2)			3,941,869			66,584		6.70			3,998,050			67,312		6.75			3,174,979			50,975		6.37
Total earning assets			4,242,879			69,727		6.52			4,297,012			70,405		6.57			3,431,222			54,003		6.24
Noninterest-earning assets			314,856								278,512								193,365
Total assets			4,557,735								4,575,524								3,624,587
Interest-bearing liabilities:
NOW and savings deposits			280,738			1,647		2.33			278,175			1,579		2.28			188,576			1,476		3.11
Money market deposits			1,089,797			8,180		2.98			1,112,349			8,324		3.00			974,500			6,480		2.64
Time deposits			1,342,018			12,400		3.67			1,349,972			12,237		3.64			986,719			9,843		3.96
Total interest-bearing deposits			2,712,553			22,227		3.24			2,740,496			22,140		3.24			2,149,795			17,799		3.28
Borrowings			375,354			3,942		4.17			410,165			4,224		4.13			425,000			4,412		4.12
Total interest-bearing liabilities			3,087,907			26,169		3.36			3,150,661			26,364		3.36			2,574,795			22,211		3.42
Noninterest-bearing liabilities:
Noninterest-bearing deposits			805,577								779,925								538,755
Other noninterest-bearing liabilities			96,139								90,350								74,418
Total noninterest-bearing liabilities			901,716								870,275								613,173
Shareholders' equity			568,112								554,588								436,619
Total liabilities and shareholders' equity		$	4,557,735							$	4,575,524							$	3,624,587
Net interest income					$	43,558							$	44,041							$	31,792
Net interest spread								3.16								3.21								2.82
Net interest margin								4.07								4.11								3.68

(1)  Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.

(2)  Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. YTD AVERAGE BALANCES AND YIELDS/RATES
		Nine Months Ended
		September 30, 2026								September 30, 2025
		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)		$	$ 274,232		$	7,596		3.70	%	$	$ 203,740		$	7,706		5.06	%
Investment securities			51,967			2,491		6.41			35,363			701		2.65
Total investments			326,199			10,087		4.13			239,103			8,407		4.70
Construction and development			57,961			3,171		7.31			26,933			1,673		8.31
Commercial real estate			1,388,866			88,115		8.48			800,301			51,008		8.52
Commercial and industrial			86,123			5,524		8.58			71,905			4,732		8.80
Residential real estate			2,459,535			104,189		5.66			2,270,373			94,603		5.57
Consumer and other			653			36		7.37			323			148		61.26
Gross loans(2)			3,993,138			201,035		6.73			3,169,835			152,164		6.42
Total earning assets			4,319,337			211,122		6.53			3,408,938			160,571		6.30
Noninterest-earning assets			291,712								196,632
Total assets			4,611,049								3,605,570
Interest-bearing liabilities:
NOW and savings deposits			277,216			4,777		2.30			168,503			3,516		2.79
Money market deposits			1,125,703			24,010		2.85			1,005,777			19,617		2.61
Time deposits			1,369,594			37,657		3.68			986,618			30,139		4.08
Total interest-bearing deposits			2,772,513			66,444		3.20			2,160,898			53,272		3.30
Borrowings			407,064			12,592		4.14			413,853			12,775		4.13
Total interest-bearing liabilities			3,179,577			79,036		3.32			2,574,751			66,047		3.43
Noninterest-bearing liabilities:
Noninterest-bearing deposits			786,914								529,075
Other noninterest-bearing liabilities			88,991								72,709
Total noninterest-bearing liabilities			875,905								601,784
Shareholders' equity			555,567								429,035
Total liabilities and shareholders' equity		$	4,611,049							$	3,605,570
Net interest income					$	132,086							$	94,524
Net interest spread								3.21								2.87
Net interest margin								4.09								3.71

(1)  Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.

(2)  Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. LOAN DATA
		As of the Quarter Ended
		September 30, 2026					June 30, 2026					March 31, 2026					December 31, 2025					September 30, 2025
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and development		$	$ 81,675		2.1	%	$	69,348		1.7		$	52,452		1.3	%	$	41,797		1.0	%	$	32,415		1.1	%
Commercial real estate			1,479,506		37.2			1,463,460		36.7			1,492,703		37.0			1,560,728		38.3			814,464		27.4
Commercial and industrial			81,729		2.1			84,999		2.1			91,877		2.3			96,360		2.4			69,430		2.3
Residential real estate			2,336,463		58.7			2,365,132		59.5			2,392,444		59.4			2,378,311		58.3			2,057,281		69.2
Consumer and other			340		—			600		—			643		—			627		—			325		—
Gross loans held for investment		$	3,979,713		100.0	%	$	3,983,539		100.0		$	4,030,119		100.0	%	$	4,077,822		100.0	%	$	2,973,915		100.0	%
Unearned income			(9,213)					(9,660)					(10,093)					(6,621)					(7,056)
Loan discounts			(16,611)					(17,560)					(18,912)					(19,804)					—
Allowance for credit losses			(25,753)					(25,818)					(26,700)					(27,843)					(17,940)
Net loans held for investment		$	3,928,136				$	3,930,501				$	3,974,414				$	4,023,554				$	2,948,919

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)		2026			2026			2026			2025			2025
Nonaccrual loans		$	15,042		$	17,435		$	16,824		$	25,906		$	13,032
Past due loans 90 days or more and still accruing			1,076			5,088			17			—			—
Total non-performing loans			16,118			22,523			16,841			25,906			13,032
Other real estate owned (1)			4,514			1,300			1,147			208			919
Total non-performing assets		$	20,632		$	23,823		$	17,988		$	26,114		$	13,951
Nonperforming loans to gross loans held for investment			0.41	%		0.57	%		0.42	%		0.64			0.44	%
Nonperforming assets to total assets			0.45			0.53			0.38			0.55			0.38
Allowance for credit losses to non-performing loans			159.78			114.63			158.54			107.48			137.66

(1)  Other real estate owned includes $3.4 million in branches held for sale.

 

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES
		As of and for the Three Months Ended															As of and for the Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)		2026			2026			2026			2025			2025			2026			2025
Balance, beginning of period		$	25,818		$	26,700		$	27,843		$	17,940		$	18,748		$	27,843			18,744
First IC Day 1 ACL balance			—			—			—			9,885			—			—			—
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—			—			—
Commercial real estate			(8)			(96)			185			(1)			110			81			171
Commercial and industrial			(3)			(3)			89			(5)			117			83			285
Residential real estate			—			—			—			—			—			—			—
Consumer and other			—			—			—			—			—			—			—
Total net charge-offs/(recoveries)			(11)			(99)			274			(6)			227			164			456
Provision (recovery) for loan losses			(76)			(981)			(869)			12			(581)			(1,926)			(348)
Balance, end of period		$	25,753		$	25,818		$	26,700		$	27,843		$	17,940		$	25,753			17,940
Total loans at end of period(1)		$	3,979,713		$	3,983,539		$	4,030,119		$	4,077,822		$	2,973,915		$	3,979,713			2,973,915
Average loans(1)		$	3,941,194		$	3,997,375		$	4,035,706		$	3,441,913		$	3,124,291		$	3,990,365			3,135,858
Net charge-offs/(recoveries) to average loans			(0.00)	%		(0.01)	%		0.03	%		(0.00)	%		0.03	%		0.00	%		0.02	%
Allowance for loan losses to total loans			0.65			0.65			0.66			0.68			0.60			0.65			0.60

(1)  Excludes loans held for sale.

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were MetroCity Bankshares' third-quarter 2026 earnings?

MetroCity earned $24.3 million, or $0.84 per diluted share, in the third quarter of 2026. That compares with $22.1 million, or $0.76 per diluted share, in the second quarter and $17.3 million, or $0.67 per diluted share, in the third quarter of 2025.

Why did MetroCity Bankshares' third-quarter 2026 earnings increase from the previous quarter?

The sequential earnings increase primarily reflected a $4.8 million decrease in income tax expense, including a $4.0 million tax credit benefit. Lower noninterest income, a smaller credit-loss recovery, lower net interest income and higher noninterest expense partially offset that benefit.

How did MetroCity Bankshares' deposit hedges affect third-quarter 2026 interest expense?

MetroCity recorded a $1.5 million credit to interest expense from its interest rate derivatives in the third quarter, versus $1.4 million sequentially and $3.8 million a year earlier. The $650.0 million of agreements hedge deposit accounts indexed to the Effective Federal Funds Rate and have a weighted average pay rate of 3.38%.

What borrowing sources supported MetroCity Bankshares' September 2026 liquidity capacity?

MetroCity's available borrowing capacity included $964.7 million at the Federal Home Loan Bank, $629.5 million at the Federal Reserve Discount Window, and $67.5 million under federal funds lines with other financial institutions as of September 30, 2026.