METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2025

Rhea-AI Summary

MetroCity Bankshares (NASDAQ: MCBS) reported Q3 2025 net income of $17.3M ($0.67 diluted), up from $16.8M in Q2 2025 and $16.7M in Q3 2024. YTD net income was $50.4M for nine months ended Sept 30, 2025, up 4.4% year-over-year.

Key metrics: ROA 1.89%, ROE 15.69% (16.17% ex-AOCI/merger costs), efficiency ratio 38.7%, and net interest margin 3.68%. Loans (incl. held for sale) rose $71.6M to $3.20B. Company disclosed regulatory approvals and shareholder vote for the First IC merger, expected to close later in Q4 2025, subject to customary closing conditions.

Positive

• Q3 net income of $17.3M (+2.6% QoQ)
• Nine-month net income of $50.4M (+4.4% YoY)
• Total loans (incl. held for sale) increased by $71.6M
• Net interest margin of 3.68% (+10 bps YoY)

Negative

• Efficiency ratio rose to 38.7% (from 37.2% QoQ)
• Loans held for investment declined $161.1M (5.2% QoQ)
• Net interest margin declined 9 bps QoQ
• Noninterest expense increased 4.0% QoQ

Insights

Bank financial analyst

Steady quarter: modest net income growth, margin tick down, merger closing and loan-sales liquidity are the main drivers near term.

Net income rose to $17.3 million in Q3 2025 (eps $0.67), up sequentially and year-over-year, driven by higher noninterest income and lower credit provisions, while net interest income edged lower and noninterest expense rose.

The bank’s net interest margin tightened to 3.68% from 3.77% sequentially, though it remains above year-ago levels; loans held for sale jumped to $237.7 million to provide liquidity for the pending First IC merger, which is expected to close later in the fourth quarter of 2025. Key risks include margin sensitivity if yields shift, integration and merger-related expenses, and the sustainability of higher mortgage originations and SBA activity.

Watch for the announced Q4 2025 closing of the First IC merger, post-close loan portfolio shifts and any disclosed merger-related charges; also monitor NIM and efficiency ratio trends over the next 1–2 quarters to judge whether the recent efficiency and margin movements persist.

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

Third Quarter 2025 Highlights:

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

Year-to-Date 2025 Highlights:

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

Acquisition of First IC Corporation and First IC Bank

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

Results of Operations

Net Income

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

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

Noninterest Expense

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

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

Noninterest expense for the nine months ended September 30, 2025 totaled $42.6 million, an increase of $3.5 million, or 9.0%, from $39.1 million for the nine months ended September 30, 2024. This increase was primarily attributable to increases in salaries and employee benefits partially due to higher base salaries, commissions, employee insurance and stock based compensation, as well as higher expenses related to depreciation, occupancy, data processing, security, loans and professional services. These expense increases were partially offset by lower FDIC insurance premiums and other real estate owned related expenses. Included in other noninterest expenses for the nine months ended September 30, 2025 were $897,000 of First IC merger-related expenses.

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

Income Tax Expense

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

Balance Sheet

Total Assets

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

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

Loans

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

Deposits

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

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

Uninsured deposits were 26.1% of total deposits at September 30, 2025, compared to 25.1% and 23.6% at June 30, 2025 and September 30, 2024, respectively. As of September 30, 2025, we had $1.29 billion of available borrowing capacity at the Federal Home Loan Bank ($657.8 million), Federal Reserve Discount Window ($575.7 million) and various other financial institutions (fed fund lines totaling $52.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $543,000 during the third quarter of 2025, compared to a provision for credit losses of $129,000 during the second quarter of 2025 and a provision for credit losses of $582,000 during the third quarter of 2024. The credit provision recorded during the third quarter of 2025 was primarily due to the decrease in reserves allocated to our individually analyzed loans, as well as the decrease in general reserves allocated to our residential mortgage loan portfolio as a large amount of residential mortgage loans were moved from loans held for investment to loans held for sale during the third quarter of 2025. These decreases were partially offset by the increase in general reserves allocated to our commercial real estate loan portfolio. Annualized net charge-offs to average loans for the third quarter of 2025 was 0.03%, compared to net charge-offs of 0.01% for the second quarter of 2025 and 0.00% for the third quarter of 2024.

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

Allowance for credit losses as a percentage of total loans was 0.60% at September 30, 2025, compared to 0.60% at both June 30, 2025 and September 30, 2024. Allowance for credit losses as a percentage of nonperforming loans was 137.66% at September 30, 2025, compared to 129.76% at June 30, 2025 and 129.85% at September 30, 2024, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

 

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

 

METROCITY BANKSHARES, INC. SELECTED FINANCIAL DATA
		As of and for the Three Months Ended															As of and for the Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)		2025			2025			2025			2024			2024			2025			2024
Selected income statement data:
Interest income		$	54,003		$	54,049		$	52,519		$	52,614		$	53,833		$	160,571		$	160,299
Interest expense			22,211			21,871			21,965			22,554			23,544			66,047			72,213
Net interest income			31,792			32,178			30,554			30,060			30,289			94,524			88,086
Provision for credit losses			(543)			129			135			202			582			(279)			314
Noninterest income			6,178			5,733			5,456			5,321			6,615			17,367			17,742
Noninterest expense			14,674			14,113			13,799			14,326			13,660			42,586			39,053
Income tax expense			6,569			6,843			5,779			4,618			5,961			19,191			18,192
Net income			17,270			16,826			16,297			16,235			16,701			50,393			48,269
Per share data:
Basic income per share		$	0.68		$	0.66		$	0.64		$	0.64		$	0.66		$	1.98		$	1.91
Diluted income per share		$	0.67		$	0.65		$	0.63		$	0.63		$	0.65		$	1.96		$	1.89
Dividends per share		$	0.25		$	0.23		$	0.23		$	0.23		$	0.20		$	0.71		$	0.60
Book value per share (at period end)		$	17.46		$	17.08		$	16.85		$	16.59		$	16.07		$	17.46		$	16.07
Shares of common stock outstanding			25,537,746			25,537,746			25,402,782			25,402,782			25,331,916			25,537,746			25,331,916
Weighted average diluted shares			25,811,422			25,715,206			25,707,989			25,659,483			25,674,858			25,735,688			25,591,072
Performance ratios:
Return on average assets			1.89	%		1.87	%		1.85	%		1.82	%		1.86	%		1.87	%		1.80	%
Return on average equity			15.69			15.74			15.67			15.84			16.26			15.70			16.27
Dividend payout ratio			37.23			35.01			36.14			36.18			30.58			36.13			31.66
Yield on total loans			6.37			6.49			6.40			6.31			6.43			6.42			6.41
Yield on average earning assets			6.24			6.34			6.31			6.25			6.36			6.30			6.36
Cost of average interest-bearing liabilities			3.42			3.39			3.48			3.55			3.69			3.43			3.77
Cost of interest-bearing deposits			3.28			3.25			3.36			3.45			3.61			3.30			3.74
Net interest margin			3.68			3.77			3.67			3.57			3.58			3.71			3.50
Efficiency ratio(1)			38.65			37.23			38.32			40.49			37.01			38.06			36.90
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			0.03	%		0.01	%		0.02	%		0.01	%		0.00	%		0.02	%		(0.00)	%
Nonperforming assets to gross loans held for investment and OREO			0.47			0.49			0.59			0.58			0.51			0.47			0.51
ACL to nonperforming loans			137.66			129.76			110.52			104.08			129.85			137.66			129.85
ACL to loans held for investment			0.60			0.60			0.59			0.59			0.60			0.60			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits			110.19	%		116.34	%		114.73	%		115.66	%		113.67	%		110.19	%		113.67	%
Noninterest bearing deposits to deposits			20.22			20.41			19.73			19.60			20.29			20.22			20.29
Investment securities to assets			0.94			0.93			0.93			0.77			0.81			0.94			0.81
Common equity to assets			12.29			12.06			11.69			11.72			11.41			12.29			11.41
Leverage ratio			12.21			11.91			11.76			11.57			11.12			12.21			11.12
Common equity tier 1 ratio			19.93			19.91			19.23			19.17			19.12			19.93			19.12
Tier 1 risk-based capital ratio			19.93			19.91			19.23			19.17			19.12			19.93			19.12
Total risk-based capital ratio			20.74			20.78			20.09			20.05			20.03			20.74			20.03
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	538,675		$	559,112		$	537,590		$	527,039		$	556,442		$	538,675		$	556,442
Mortgage loan production			168,562			93,156			91,122			103,250			122,355			352,840			310,427
Mortgage loan sales			18,248			54,309			40,051			—			54,193			112,608			187,490
SBA/USDA loans serviced for others			460,720			480,867			474,143			479,669			487,359			460,720			487,359
SBA loan production			17,777			29,337			20,012			35,730			35,839			67,126			55,533
SBA loan sales			13,415			20,707			16,579			19,236			28,858			50,701			52,923
______________________________________________ (1)   Represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

METROCITY BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		As of the Quarter Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)		2025			2025			2025			2024			2024
ASSETS
Cash and due from banks		$	213,941		$	273,596		$	272,317		$	236,338		$	278,752
Federal funds sold			13,217			12,415			12,738			13,537			12,462
Cash and cash equivalents			227,158			286,011			285,055			249,875			291,214
Equity securities			18,605			18,481			18,440			10,300			10,568
Securities available for sale (at fair value)			15,365			15,030			15,426			17,391			18,206
Loans held for investment			2,960,436			3,121,534			3,132,535			3,157,935			3,087,826
Allowance for credit losses			(17,940)			(18,748)			(18,592)			(18,744)			(18,589)
Loans less allowance for credit losses			2,942,496			3,102,786			3,113,943			3,139,191			3,069,237
Loans held for sale			237,682			4,988			34,532			—			4,598
Accrued interest receivable			16,912			16,528			16,498			15,858			15,667
Federal Home Loan Bank stock			22,693			22,693			22,693			20,251			20,251
Premises and equipment, net			17,836			17,872			18,045			18,276			18,158
Operating lease right-of-use asset			7,712			8,197			7,906			7,850			7,171
Foreclosed real estate, net			919			744			1,707			427			1,515
SBA servicing asset, net			6,988			6,823			7,167			7,274			7,309
Mortgage servicing asset, net			1,662			1,676			1,476			1,409			1,296
Bank owned life insurance			75,148			74,520			73,900			73,285			72,670
Interest rate derivatives			9,435			12,656			17,166			21,790			18,895
Other assets			28,852			26,683			25,771			10,868			12,451
Total assets		$	3,629,463		$	3,615,688		$	3,659,725		$	3,594,045		$	3,569,206
LIABILITIES
Noninterest-bearing deposits		$	544,439		$	548,906		$	539,975		$	536,276		$	552,472
Interest-bearing deposits			2,148,645			2,140,587			2,197,055			2,200,522			2,170,648
Total deposits			2,693,084			2,689,493			2,737,030			2,736,798			2,723,120
Federal Home Loan Bank advances			425,000			425,000			425,000			375,000			375,000
Operating lease liability			7,704			8,222			7,962			7,940			7,295
Accrued interest payable			3,567			3,438			3,487			3,498			3,593
Other liabilities			54,220			53,435			58,277			49,456			53,013
Total liabilities		$	3,183,575		$	3,179,588		$	3,231,756		$	3,172,692		$	3,162,021
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			255			255			254			254			253
Additional paid-in capital			51,151			50,212			49,645			49,216			47,481
Retained earnings			390,971			380,046			369,110			358,704			348,343
Accumulated other comprehensive income			3,511			5,587			8,960			13,179			11,108
Total shareholders' equity			445,888			436,100			427,969			421,353			407,185
Total liabilities and shareholders' equity		$	3,629,463		$	3,615,688		$	3,659,725		$	3,594,045		$	3,569,206

 

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended															Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)		2025			2025			2025			2024			2024			2025			2024
Interest and dividend income:
Loans, including fees		$	50,975		$	50,936		$	50,253		$	49,790		$	50,336		$	152,164		$	150,980
Other investment income			2,884			2,970			2,126			2,663			3,417			7,980			9,175
Federal funds sold			144			143			140			161			80			427			144
Total interest income			54,003			54,049			52,519			52,614			53,833			160,571			160,299
Interest expense:
Deposits			17,799			17,496			17,977			18,618			19,602			53,272			61,442
FHLB advances and other borrowings			4,412			4,375			3,988			3,936			3,942			12,775			10,771
Total interest expense			22,211			21,871			21,965			22,554			23,544			66,047			72,213
Net interest income			31,792			32,178			30,554			30,060			30,289			94,524			88,086
Provision for credit losses			(543)			129			135			202			582			(279)			314
Net interest income after provision for loan losses			32,335			32,049			30,419			29,858			29,707			94,803			87,772
Noninterest income:
Service charges on deposit accounts			551			505			500			563			531			1,556			1,510
Other service charges, commissions and fees			2,376			1,620			1,596			1,748			1,915			5,592			5,100
Gain on sale of residential mortgage loans			166			579			399			—			526			1,144			1,925
Mortgage servicing income, net			516			781			618			690			422			1,915			1,758
Gain on sale of SBA loans			558			643			658			811			1,083			1,859			2,134
SBA servicing income, net			1,203			642			913			956			1,231			2,758			3,287
Other income			808			963			772			553			907			2,543			2,028
Total noninterest income			6,178			5,733			5,456			5,321			6,615			17,367			17,742
Noninterest expense:
Salaries and employee benefits			8,953			8,554			8,493			9,277			8,512			26,000			23,930
Occupancy and equipment			1,410			1,380			1,417			1,406			1,430			4,207			4,118
Data Processing			394			329			345			335			311			1,068			958
Advertising			161			149			167			160			145			477			474
Other expenses			3,756			3,701			3,377			3,148			3,262			10,834			9,573
Total noninterest expense			14,674			14,113			13,799			14,326			13,660			42,586			39,053
Income before provision for income taxes			23,839			23,669			22,076			20,853			22,662			69,584			66,461
Provision for income taxes			6,569			6,843			5,779			4,618			5,961			19,191			18,192
Net income available to common shareholders		$	17,270		$	16,826		$	16,297		$	16,235		$	16,701		$	50,393		$	48,269

 

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

 

METROCITY BANKSHARES, INC. YTD AVERAGE BALANCES AND YIELDS/RATES
		Nine Months Ended
		September 30, 2025								September 30, 2024
		Average			Interest and			Yield /		Average			Interest and			Yield /
(Dollars in thousands)		Balance			Fees			Rate		Balance			Fees			Rate
Earning Assets:
Federal funds sold and other investments(1)		$	203,740		$	7,706		5.06	%	$	187,398		$	8,729		6.22	%
Investment securities			35,363			701		2.65			31,428			590		2.51
Total investments			239,103			8,407		4.70			218,826			9,319		5.69
Construction and development			26,933			1,673		8.31			16,871			1,127		8.92
Commercial real estate			800,301			51,008		8.52			731,573			50,270		9.18
Commercial and industrial			71,905			4,732		8.80			66,116			4,894		9.89
Residential real estate			2,270,373			94,603		5.57			2,332,271			94,565		5.42
Consumer and other			323			148		61.26			311			124		53.26
Gross loans(2)			3,169,835			152,164		6.42			3,147,142			150,980		6.41
Total earning assets			3,408,938			160,571		6.30			3,365,968			160,299		6.36
Noninterest-earning assets			196,632								214,756
Total assets			3,605,570								3,580,724
Interest-bearing liabilities:
NOW and savings deposits			168,503			3,516		2.79			140,539			2,852		2.71
Money market deposits			1,005,777			19,617		2.61			1,019,394			21,984		2.88
Time deposits			986,618			30,139		4.08			1,034,256			36,606		4.73
Total interest-bearing deposits			2,160,898			53,272		3.30			2,194,189			61,442		3.74
Borrowings			413,853			12,775		4.13			362,965			10,771		3.96
Total interest-bearing liabilities			2,574,751			66,047		3.43			2,557,154			72,213		3.77
Noninterest-bearing liabilities:
Noninterest-bearing deposits			529,075								536,807
Other noninterest-bearing liabilities			72,709								90,459
Total noninterest-bearing liabilities			601,784								627,266
Shareholders' equity			429,035								396,304
Total liabilities and shareholders' equity		$	3,605,570							$	3,580,724
Net interest income					$	94,524							$	88,086
Net interest spread								2.87								2.59
Net interest margin								3.71								3.50
______________________________________________ (1)   Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets. (2)   Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. LOAN DATA
		As of the Quarter Ended
		September 30, 2025					June 30, 2025					March 31, 2025					December 31, 2024					September 30, 2024
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and development		$	32,415		1.1	%	$	30,149		1.0	%	$	28,403		0.9	%	$	21,569		0.7	%	$	16,539		0.5	%
Commercial real estate			814,464		27.5			803,384		25.7			792,149		25.2			762,033		24.1			738,929		23.9
Commercial and industrial			69,430		2.3			73,832		2.3			71,518		2.3			78,220		2.5			63,606		2.1
Residential real estate			2,050,858		69.1			2,221,316		71.0			2,248,028		71.6			2,303,234		72.7			2,276,210		73.5
Consumer and other			325		—			200		—			67		—			260		—			215		—
Gross loans held for investment		$	2,967,492		100.0	%	$	3,128,881		100.0	%	$	3,140,165		100.0	%	$	3,165,316		100.0	%	$	3,095,499		100.0	%
Unearned income			(7,056)					(7,347)					(7,630)					(7,381)					(7,673)
Allowance for credit losses			(17,940)					(18,748)					(18,592)					(18,744)					(18,589)
Net loans held for investment		$	2,942,496				$	3,102,786				$	3,113,943				$	3,139,191				$	3,069,237

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)		2025			2025			2025			2024			2024
Nonaccrual loans		$	13,032		$	14,448		$	16,823		$	18,010		$	14,316
Past due loans 90 days or more and still accruing			—			—			—			—			—
Total non-performing loans			13,032			14,448			16,823			18,010			14,316
Other real estate owned			919			744			1,707			427			1,515
Total non-performing assets		$	13,951		$	15,192		$	18,530		$	18,437		$	15,831
Nonperforming loans to gross loans held for investment			0.44	%		0.46	%		0.54	%		0.57	%		0.46	%
Nonperforming assets to total assets			0.38			0.42			0.51			0.51			0.44
Allowance for credit losses to non-performing loans			137.66			129.76			110.52			104.08			129.85

 

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

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What did MetroCity (MCBS) report for Q3 2025 net income and EPS?

MetroCity reported $17.3M net income and $0.67 diluted EPS for Q3 2025.

How did MetroCity's net interest margin (NIM) change in Q3 2025 for MCBS?

MCBS reported a 3.68% NIM in Q3 2025, down 9 basis points from Q2 2025 but up 10 basis points year-over-year.

What is the status and timing of MetroCity's merger with First IC for MCBS?

Regulatory approvals and First IC shareholder vote were received; the merger is expected to close later in Q4 2025, subject to customary closing conditions.

How did MetroCity's loan balances change in Q3 2025 for MCBS?

Total loans including loans held for sale rose by $71.6M to $3.20B; loans held for investment fell $161.1M to $2.96B.

Did MetroCity (MCBS) report any material changes to deposits at Sept 30, 2025?

Total deposits were $2.69B at Sept 30, 2025, essentially flat QoQ and down about 1.1% year-over-year.

What drove MetroCity's Q3 2025 noninterest income and expense trends for MCBS?

Noninterest income rose QoQ on higher mortgage origination and service fees; noninterest expense increased mainly from higher salaries, commissions, and data processing.