MetroCity Bankshares Q3 2026 profit rises to $24.3M

Noninterest income was $4.4 million in the quarter, compared with $6.2 million a year earlier.

Available on EDGAR 11/05/2026 - 04:32 PM EST Accepted by SEC EDGAR 11/05/2026 - 04:31 PM EST

(Moderate)

(Neutral)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Form Type

10-Q

Rhea-AI Filing Summary

MetroCity Bankshares, Inc. reported third-quarter 2026 net income available to common shareholders of $24.3 million, compared with $17.3 million a year earlier. Diluted earnings per share were $0.84, versus $0.67, and net interest income was $43.6 million, versus $31.8 million. Noninterest income was $4.4 million, compared with $6.2 million.

For the first nine months of 2026, net income was $68.7 million, compared with $50.4 million, while net interest income was $132.1 million, versus $94.5 million. Net cash provided by operating activities was $54.1 million, compared with $42.8 million. The company declared a quarterly common-stock dividend of $0.29 per share, compared with $0.25.

At September 30, 2026, total assets were $4.598 billion and deposits were $3.562 billion, compared with $4.768 billion and $3.646 billion at December 31, 2025. Loans, net of allowance, were $3.928 billion, versus $4.024 billion. The company completed its acquisition of First IC Corporation on December 1, 2025, for total consideration of $202.3 million.

5 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 1 point

How the balance works

Positive

Moderate pointQuarterly net income: $24.3 million, versus $17.3 million.
Moderate pointQuarterly net interest income: $43.6 million, versus $31.8 million.
Minor pointNine-month net income: $68.7 million, versus $50.4 million.
Minor pointNine-month operating cash flow: $54.1 million, versus $42.8 million.
Minor pointQuarterly dividend per share rose to $0.29 from $0.25.

Negative

Minor pointQuarterly noninterest income fell to $4.4 million, from $6.2 million.

Filing Explained

At September 30, 2026, MetroCity Bankshares reported $157.7 million of unused credit lines and $16.1 million of standby letters of credit; these are commitments, not amounts already drawn, and the filing says many may expire undrawn, so the totals are not necessarily future cash requirements.

Key Figures

Net income available to common shareholders: $24.3 million; $17.3 million in 2025 Diluted earnings per share: $0.84; $0.67 in 2025 Net interest income: $43.6 million; $31.8 million in 2025 +5 more

8 metrics

Net income available to common shareholders $24.3 million; $17.3 million in 2025 Three months ended September 30, 2026 and 2025

Diluted earnings per share $0.84; $0.67 in 2025 Three months ended September 30, 2026 and 2025

Net interest income $43.6 million; $31.8 million in 2025 Three months ended September 30, 2026 and 2025

Noninterest income $4.4 million; $6.2 million in 2025 Three months ended September 30, 2026 and 2025

Net income available to common shareholders $68.7 million; $50.4 million in 2025 Nine months ended September 30, 2026 and 2025

Net cash provided by operating activities $54.1 million; $42.8 million in 2025 Nine months ended September 30, 2026 and 2025

Declared common-stock dividend $0.29 per share; $0.25 per share in 2025 Three months ended September 30, 2026 and 2025

First IC acquisition total consideration $202.3 million Acquisition completed December 1, 2025

Key Terms

Allowance for credit losses, nonaccrual loans, collateral-dependent loans, cash flow hedges

4 terms

Allowance for credit losses financial

"The allowance for credit losses was $25.8 million as of September 30, 2026"

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

nonaccrual loans financial

"the Company’s past due and nonaccrual loans"

Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.

collateral-dependent loans financial

"there were $33.6 million ... of collateral-dependent loans"

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.

FAQ

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

How much net income did MCBS report in Q3 2026?

MCBS reported net income available to common shareholders of $24.3 million for the three months ended September 30, 2026, compared with $17.3 million in the same period of 2025. Diluted earnings per share were $0.84, compared with $0.67.

What was MCBS's net income for the first nine months of 2026?

MCBS reported net income available to common shareholders of $68.7 million for the nine months ended September 30, 2026, compared with $50.4 million in 2025. Net interest income for the period was $132.1 million, compared with $94.5 million.

What did First IC shareholders receive in the MCBS acquisition?

For each share of First IC common stock, First IC stockholders had the right to receive 0.3729 shares of MCBS common stock and $12.00 in cash, with cash paid in lieu of fractional shares. Total consideration was $202.3 million.

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

10-Q Quarterly Reports: What Changes Quarter to Quarter →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

0001747068--12-312026Q300http://fasb.org/us-gaap/2026#InterestReceivablehttp://fasb.org/us-gaap/2026#InterestReceivablehttp://fasb.org/us-gaap/2026#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2026#ValuationTechniqueConsensusPricingModelMemberhttp://fasb.org/us-gaap/2026#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2026#ValuationTechniqueConsensusPricingModelMember0.3300false0001747068us-gaap:CommonStockMember2026-01-012026-09-300001747068us-gaap:CommonStockMember2025-01-012025-09-300001747068srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:CommonStockMember2026-09-300001747068srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2026-09-300001747068us-gaap:RetainedEarningsMember2026-09-300001747068us-gaap:AdditionalPaidInCapitalMember2026-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-09-300001747068us-gaap:RetainedEarningsMember2026-06-300001747068us-gaap:AdditionalPaidInCapitalMember2026-06-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-06-300001747068us-gaap:RetainedEarningsMember2025-12-310001747068us-gaap:AdditionalPaidInCapitalMember2025-12-310001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001747068us-gaap:RetainedEarningsMember2025-09-300001747068us-gaap:AdditionalPaidInCapitalMember2025-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300001747068us-gaap:RetainedEarningsMember2025-06-300001747068us-gaap:AdditionalPaidInCapitalMember2025-06-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001747068us-gaap:RetainedEarningsMember2024-12-310001747068us-gaap:AdditionalPaidInCapitalMember2024-12-310001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001747068us-gaap:CommonStockMember2026-09-300001747068us-gaap:CommonStockMember2026-06-300001747068us-gaap:CommonStockMember2025-12-310001747068us-gaap:CommonStockMember2025-09-300001747068us-gaap:CommonStockMember2025-06-300001747068us-gaap:CommonStockMember2024-12-310001747068us-gaap:EmployeeStockOptionMember2026-09-300001747068us-gaap:EmployeeStockOptionMember2025-12-310001747068us-gaap:EmployeeStockOptionMembermcbs:OmnibusStockIncentivePlan2018Member2026-01-012026-09-300001747068mcbs:OmnibusStockIncentivePlan2018Member2018-04-180001747068us-gaap:RestrictedStockMembermcbs:OmnibusStockIncentivePlan2018Member2026-01-012026-09-300001747068us-gaap:RestrictedStockMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2026-01-012026-09-300001747068srt:MinimumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputPrepaymentRateMember2026-09-300001747068srt:MinimumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputDiscountRateMember2026-09-300001747068srt:MaximumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputPrepaymentRateMember2026-09-300001747068srt:MaximumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputDiscountRateMember2026-09-300001747068srt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMember2026-09-300001747068us-gaap:MeasurementInputPrepaymentRateMember2026-09-300001747068us-gaap:MeasurementInputDiscountRateMember2026-09-300001747068srt:MinimumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputPrepaymentRateMember2025-12-310001747068srt:MinimumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001747068srt:MaximumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputPrepaymentRateMember2025-12-310001747068srt:MaximumMembermcbs:SbaAndUsdaLoanMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001747068srt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMember2025-12-310001747068us-gaap:MeasurementInputPrepaymentRateMember2025-12-310001747068us-gaap:MeasurementInputDiscountRateMember2025-12-310001747068mcbs:SbaAndUsdaLoanMember2026-07-012026-09-300001747068mcbs:SbaAndUsdaLoanMember2026-01-012026-09-300001747068mcbs:SbaAndUsdaLoanMember2025-07-012025-09-300001747068mcbs:SbaAndUsdaLoanMember2025-01-012025-09-300001747068mcbs:SbaAndUsdaLoanMember2026-06-300001747068mcbs:SbaAndUsdaLoanMember2025-09-300001747068mcbs:SbaAndUsdaLoanMember2025-06-300001747068mcbs:SbaAndUsdaLoanMember2024-12-310001747068us-gaap:ResidentialMortgageMember2026-07-012026-09-300001747068us-gaap:ResidentialMortgageMember2026-01-012026-09-300001747068us-gaap:ResidentialMortgageMember2025-07-012025-09-300001747068us-gaap:ResidentialMortgageMember2025-01-012025-09-300001747068us-gaap:ResidentialMortgageMember2026-06-300001747068us-gaap:ResidentialMortgageMember2025-09-300001747068us-gaap:ResidentialMortgageMember2025-06-300001747068us-gaap:ResidentialMortgageMember2024-12-310001747068us-gaap:DepositAccountMember2026-07-012026-09-300001747068mcbs:OtherServiceChargesCommissionsAndFeesMember2026-07-012026-09-300001747068us-gaap:DepositAccountMember2026-01-012026-09-300001747068mcbs:OtherServiceChargesCommissionsAndFeesMember2026-01-012026-09-300001747068us-gaap:DepositAccountMember2025-07-012025-09-300001747068mcbs:OtherServiceChargesCommissionsAndFeesMember2025-07-012025-09-300001747068us-gaap:DepositAccountMember2025-01-012025-09-300001747068mcbs:OtherServiceChargesCommissionsAndFeesMember2025-01-012025-09-300001747068us-gaap:ResidentialRealEstateMember2026-07-012026-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2026-07-012026-09-300001747068mcbs:ConstructionAndDevelopmentMember2026-07-012026-09-300001747068us-gaap:ResidentialRealEstateMember2026-01-012026-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2026-01-012026-09-300001747068mcbs:ConstructionAndDevelopmentMember2026-01-012026-09-300001747068us-gaap:ResidentialRealEstateMember2025-07-012025-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2025-07-012025-09-300001747068mcbs:ConstructionAndDevelopmentMember2025-07-012025-09-300001747068us-gaap:ResidentialRealEstateMember2025-01-012025-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2025-01-012025-09-300001747068mcbs:ConstructionAndDevelopmentMember2025-01-012025-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-07-012026-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-012026-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-300001747068us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-300001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember

us-gaap:OtherLiabilities

2026-01-012026-09-300001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember

us-gaap:DerivativeAssets

2026-01-012026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember

us-gaap:OtherLiabilities

2026-01-012026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember

us-gaap:DerivativeAssets

2026-01-012026-09-300001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember

us-gaap:OtherLiabilities

2025-01-012025-12-310001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember

us-gaap:DerivativeAssets

2025-01-012025-12-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember

us-gaap:OtherLiabilities

2025-01-012025-12-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember

us-gaap:DerivativeAssets

2025-01-012025-12-310001747068us-gaap:CashFlowHedgingMember2026-09-300001747068mcbs:InterestRateSwapTwoMemberus-gaap:CashFlowHedgingMember2025-01-310001747068mcbs:InterestRateSwapOneMemberus-gaap:CashFlowHedgingMember2025-01-310001747068us-gaap:ResidentialMortgageMember2026-09-300001747068us-gaap:ResidentialMortgageMember2025-12-310001747068mcbs:MetroCityBankSubsidiariesMember2026-09-300001747068srt:MaximumMember2026-09-300001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2026-01-012026-09-300001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2025-01-012025-12-310001747068us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetPastDueMember2026-09-300001747068us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2026-09-300001747068us-gaap:ResidentialRealEstateMembermcbs:FinancialAsset60To89DaysPastDueMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2026-09-300001747068us-gaap:CommercialRealEstateMembermcbs:FinancialAsset60To89DaysPastDueMember2026-09-300001747068us-gaap:CommercialRealEstateMembermcbs:FinancialAsset30To89DaysPastDueMember2026-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2026-09-300001747068mcbs:ConstructionAndDevelopmentMemberus-gaap:FinancialAssetNotPastDueMember2026-09-300001747068mcbs:CommercialAndIndustrialMemberus-gaap:FinancialAssetPastDueMember2026-09-300001747068mcbs:CommercialAndIndustrialMemberus-gaap:FinancialAssetNotPastDueMember2026-09-300001747068mcbs:CommercialAndIndustrialMembermcbs:FinancialAsset60To89DaysPastDueMember2026-09-300001747068mcbs:CommercialAndIndustrialMembermcbs:FinancialAsset30To89DaysPastDueMember2026-09-300001747068us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-09-300001747068us-gaap:FinancialAssetPastDueMember2026-09-300001747068us-gaap:FinancialAssetNotPastDueMember2026-09-300001747068mcbs:FinancialAsset60To89DaysPastDueMember2026-09-300001747068mcbs:FinancialAsset30To89DaysPastDueMember2026-09-300001747068us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetPastDueMember2025-12-310001747068us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310001747068us-gaap:ResidentialRealEstateMembermcbs:FinancialAsset60To89DaysPastDueMember2025-12-310001747068us-gaap:ResidentialRealEstateMembermcbs:FinancialAsset30To89DaysPastDueMember2025-12-310001747068us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2025-12-310001747068us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310001747068us-gaap:CommercialRealEstateMembermcbs:FinancialAsset60To89DaysPastDueMember2025-12-310001747068us-gaap:CommercialRealEstateMembermcbs:FinancialAsset30To89DaysPastDueMember2025-12-310001747068mcbs:ConsumerAndOtherFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310001747068mcbs:ConstructionAndDevelopmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310001747068mcbs:ConstructionAndDevelopmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310001747068mcbs:ConstructionAndDevelopmentMembermcbs:FinancialAsset30To89DaysPastDueMember2025-12-310001747068mcbs:CommercialAndIndustrialMemberus-gaap:FinancialAssetPastDueMember2025-12-310001747068mcbs:CommercialAndIndustrialMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310001747068mcbs:CommercialAndIndustrialMembermcbs:FinancialAsset30To89DaysPastDueMember2025-12-310001747068us-gaap:FinancialAssetPastDueMember2025-12-310001747068us-gaap:FinancialAssetNotPastDueMember2025-12-310001747068mcbs:FinancialAsset60To89DaysPastDueMember2025-12-310001747068mcbs:FinancialAsset30To89DaysPastDueMember2025-12-310001747068us-gaap:ResidentialRealEstateMember2026-06-300001747068us-gaap:CommercialRealEstateMember2026-06-300001747068mcbs:ConstructionAndDevelopmentMember2026-06-300001747068mcbs:CommercialAndIndustrialMember2026-06-3000017470682026-06-300001747068us-gaap:ResidentialRealEstateMember2025-09-300001747068us-gaap:CommercialRealEstateMember2025-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2025-09-300001747068mcbs:ConstructionAndDevelopmentMember2025-09-300001747068mcbs:CommercialAndIndustrialMember2025-09-300001747068us-gaap:ResidentialRealEstateMember2025-06-300001747068us-gaap:CommercialRealEstateMember2025-06-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2025-06-300001747068mcbs:ConstructionAndDevelopmentMember2025-06-300001747068mcbs:CommercialAndIndustrialMember2025-06-3000017470682025-06-300001747068us-gaap:ResidentialRealEstateMember2024-12-310001747068us-gaap:CommercialRealEstateMember2024-12-310001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2024-12-310001747068mcbs:ConstructionAndDevelopmentMember2024-12-310001747068mcbs:CommercialAndIndustrialMember2024-12-310001747068us-gaap:CommercialRealEstateMember2025-07-012025-09-300001747068mcbs:FederalHomeLoanBankDailyRateCreditAdvanceMaturingOnDecember22026Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay72027Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay142027Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay132027Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingDecember42026Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril262027Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril232027Member2026-03-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril222027Member2026-03-310001747068mcbs:FederalReserveDiscountWindowFundsMember2025-12-310001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-06-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-06-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2024-12-310001747068us-gaap:UnusedLinesOfCreditMember2026-09-300001747068us-gaap:StandbyLettersOfCreditMember2026-09-300001747068us-gaap:CommitmentsToExtendCreditMember2026-09-300001747068us-gaap:StandbyLettersOfCreditMember2025-12-310001747068us-gaap:CommitmentsToExtendCreditMember2025-12-310001747068us-gaap:RestrictedStockMember2026-09-300001747068us-gaap:RestrictedStockMember2025-12-310001747068us-gaap:RetainedEarningsMember2026-07-012026-09-300001747068us-gaap:RetainedEarningsMember2026-01-012026-09-300001747068us-gaap:RetainedEarningsMember2025-07-012025-09-300001747068us-gaap:RetainedEarningsMember2025-01-012025-09-300001747068srt:WeightedAverageMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2026-01-012026-09-300001747068srt:WeightedAverageMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-01-012026-09-300001747068srt:WeightedAverageMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2025-01-012025-12-310001747068srt:WeightedAverageMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2025-01-012025-12-310001747068mcbs:InterestRateSwapTwoMemberus-gaap:CashFlowHedgingMember2025-01-012025-01-310001747068mcbs:InterestRateSwapOneMemberus-gaap:CashFlowHedgingMember2025-01-012025-01-310001747068srt:WeightedAverageMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-09-300001747068srt:WeightedAverageMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2025-12-310001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-06-160001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-04-100001747068us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2025-12-310001747068srt:WeightedAverageMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2026-09-300001747068srt:WeightedAverageMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2025-12-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-06-170001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2025-12-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2025-01-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2021-10-310001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-09-300001747068mcbs:CollateralDependentLoansMember2026-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-12-310001747068mcbs:CollateralDependentLoansMember2025-12-310001747068srt:MinimumMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2026-09-300001747068srt:MaximumMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2026-09-300001747068us-gaap:FairValueMeasurementsNonrecurringMembermcbs:CollateralDependentLoansMemberus-gaap:MeasurementInputQuotedPriceMember2026-09-300001747068srt:MinimumMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001747068srt:MaximumMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001747068us-gaap:FairValueMeasurementsNonrecurringMembermcbs:CollateralDependentLoansMemberus-gaap:MeasurementInputQuotedPriceMember2025-12-310001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-09-300001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-09-300001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-09-300001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-09-300001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-09-300001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-09-300001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-12-310001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-12-310001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-12-310001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-12-310001747068us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-12-3100017470682024-12-310001747068mcbs:FirstIcCorporationMember2025-12-310001747068us-gaap:USStatesAndPoliticalSubdivisionsMember2026-09-300001747068us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-09-300001747068us-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-09-300001747068us-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001747068us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-12-310001747068us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-12-310001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068mcbs:CommercialAndIndustrialMember2026-07-012026-09-300001747068mcbs:CommercialAndIndustrialMember2026-01-012026-09-300001747068mcbs:CommercialAndIndustrialMember2025-07-012025-09-300001747068mcbs:CommercialAndIndustrialMember2025-01-012025-09-300001747068us-gaap:RestrictedStockMember2026-07-012026-09-300001747068us-gaap:EmployeeStockOptionMember2026-07-012026-09-300001747068us-gaap:RestrictedStockMember2026-01-012026-09-300001747068us-gaap:EmployeeStockOptionMember2026-01-012026-09-300001747068us-gaap:RestrictedStockMember2025-07-012025-09-300001747068us-gaap:EmployeeStockOptionMember2025-07-012025-09-300001747068us-gaap:RestrictedStockMember2025-01-012025-09-300001747068us-gaap:EmployeeStockOptionMember2025-01-012025-09-300001747068mcbs:UnsecuredFederalFundsMember2026-09-300001747068mcbs:FederalReserveDiscountWindowFundsMember2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay72027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay142027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay132027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingJune242027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril262027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril232027Member2026-09-300001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril222027Member2026-09-300001747068mcbs:FederalHomeLoanBankDailyRateCreditAdvanceMaturingOnDecember22026Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay72027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay142027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingMay132027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingJune242027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingDecember42026Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril262027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril232027Member2025-12-310001747068mcbs:FederalHomeLoanBankConvertibleAdvancesMaturingApril222027Member2025-12-310001747068us-gaap:AdditionalPaidInCapitalMember2026-07-012026-09-300001747068us-gaap:AdditionalPaidInCapitalMember2026-01-012026-09-300001747068us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300001747068us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-300001747068mcbs:SbaAndUsdaLoanMember2026-09-300001747068mcbs:SbaAndUsdaLoanMember2025-12-310001747068us-gaap:RestrictedStockMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2026-01-012026-09-300001747068us-gaap:RestrictedStockMemberus-gaap:ShareBasedPaymentArrangementEmployeeMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2026-01-012026-09-3000017470682025-09-300001747068us-gaap:ResidentialRealEstateMemberus-gaap:SubstandardMember2026-09-300001747068us-gaap:ResidentialRealEstateMemberus-gaap:PassMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:SubstandardMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMember2026-09-300001747068us-gaap:CommercialRealEstateMemberus-gaap:PassMember2026-09-300001747068us-gaap:CommercialRealEstateMembermcbs:GrossWriteOffsMember2026-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMemberus-gaap:PassMember2026-09-300001747068mcbs:ConstructionAndDevelopmentMemberus-gaap:PassMember2026-09-300001747068mcbs:CommercialAndIndustrialMemberus-gaap:SubstandardMember2026-09-300001747068mcbs:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2026-09-300001747068mcbs:CommercialAndIndustrialMemberus-gaap:PassMember2026-09-300001747068mcbs:CommercialAndIndustrialMembermcbs:GrossWriteOffsMember2026-09-300001747068us-gaap:UnlikelyToBeCollectedFinancingReceivableMember2026-09-300001747068us-gaap:DoubtfulMember2026-09-300001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2026-09-300001747068us-gaap:ResidentialRealEstateMemberus-gaap:SubstandardMember2025-12-310001747068us-gaap:ResidentialRealEstateMemberus-gaap:PassMember2025-12-310001747068us-gaap:CommercialRealEstateMemberus-gaap:SubstandardMember2025-12-310001747068us-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMember2025-12-310001747068us-gaap:CommercialRealEstateMemberus-gaap:PassMember2025-12-310001747068mcbs:ConsumerAndOtherFinancingReceivablesMemberus-gaap:PassMember2025-12-310001747068mcbs:ConstructionAndDevelopmentMemberus-gaap:PassMember2025-12-310001747068mcbs:CommercialAndIndustrialMemberus-gaap:SubstandardMember2025-12-310001747068mcbs:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2025-12-310001747068mcbs:CommercialAndIndustrialMemberus-gaap:PassMember2025-12-310001747068mcbs:CommercialAndIndustrialMembermcbs:GrossWriteOffsMember2025-12-310001747068us-gaap:UnlikelyToBeCollectedFinancingReceivableMember2025-12-310001747068us-gaap:DoubtfulMember2025-12-310001747068mcbs:ConsumerAndOtherFinancingReceivablesMember2025-12-310001747068srt:MinimumMember2026-01-012026-09-300001747068us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:FairValueMeasurementsNonrecurringMember2026-01-012026-09-300001747068us-gaap:FairValueMeasurementsNonrecurringMember2025-01-012025-12-310001747068us-gaap:ResidentialRealEstateMember2026-09-300001747068mcbs:ConstructionAndDevelopmentMember2026-09-300001747068us-gaap:ResidentialRealEstateMember2025-12-310001747068mcbs:ConstructionAndDevelopmentMember2025-12-310001747068mcbs:CollateralDependentLoansMember2026-09-300001747068mcbs:CollateralDependentLoansMember2025-12-310001747068us-gaap:CommercialRealEstateMember2026-09-300001747068mcbs:CommercialAndIndustrialMember2026-09-300001747068us-gaap:CommercialRealEstateMember2025-12-310001747068mcbs:CommercialAndIndustrialMember2025-12-310001747068us-gaap:CommercialRealEstateMember2026-07-012026-09-300001747068us-gaap:CommercialRealEstateMember2026-01-012026-09-300001747068us-gaap:CommercialRealEstateMember2025-01-012025-09-3000017470682025-07-012025-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-07-012026-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-07-012025-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2026-01-012026-09-300001747068us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-01-012025-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-01-012026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2025-01-012025-12-310001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2026-06-172026-06-170001747068mcbs:InterestRateSwapSixMemberus-gaap:CashFlowHedgingMember2026-01-012026-09-300001747068us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2021-10-012021-10-310001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2026-09-300001747068us-gaap:FairValueMeasurementsNonrecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2025-12-310001747068us-gaap:FairValueMeasurementsNonrecurringMember2025-12-310001747068srt:SubsidiariesMember2026-09-3000017470682026-09-300001747068srt:SubsidiariesMember2025-12-3100017470682025-12-3100017470682022-01-012022-12-310001747068mcbs:FirstIcCorporationMember2025-12-0100017470682025-01-012025-09-300001747068mcbs:FirstIcCorporationMember2025-12-012025-12-010001747068

us-gaap:OtherLiabilities

2026-09-300001747068

us-gaap:OtherLiabilities

2025-12-310001747068

us-gaap:OtherLiabilities

2025-09-300001747068mcbs:FirstIcCorporationMember2026-01-012026-03-310001747068us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2026-09-300001747068us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001747068us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-3100017470682026-07-012026-09-3000017470682026-11-0300017470682026-01-012026-09-30xbrli:sharesiso4217:USDxbrli:puremcbs:itemmcbs:loanmcbs:securityiso4217:USDxbrli:sharesmcbs:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2026

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______ to _______

Commission File Number 001-39068

METROCITY BANKSHARES, INC.

(Exact name of registrant as specified in its charter)

Georgia	47-2528408
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

5114 Buford Highway Doraville, Georgia	30340
(Address of principal executive offices)	(Zip Code)

(770) 455-4989

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each Exchange on which registered
Common Stock, par value $0.01 per share	MCBS	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 3, 2026, the registrant had 28,781,229 shares of common stock, par value $0.01 per share, issued and outstanding.

Table of Contents

METROCITY BANKSHARES, INC.

Quarterly Report on Form 10-Q

September 30, 2026

TABLE OF CONTENTS

		Page
Part I.	Financial Information

Item l.	Financial Statements:
	Consolidated Balance Sheets as of September 30, 2026 (unaudited) and December 31, 2025	3
	Consolidated Statements of Income (unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025	4
	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025	5
	Consolidated Statements of Shareholders’ Equity (unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025	6
	Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2026 and 2025	7
	Notes to Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	58
Item 4.	Controls and Procedures	60

Part II.	Other Information

Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
	Signatures	63

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)


	September 30,		December 31,
	2026		2025
	(Unaudited)
Assets:
Cash and due from banks	$	301,716	$	370,832
Federal funds sold		15,298		12,844
Cash and cash equivalents		317,014		383,676
Equity securities		17,739		18,646
Securities available for sale		23,140		47,179
Loans held for sale		—		9,741
Loans, less allowance for credit losses of $25,753 and $27,843, respectively		3,928,136		4,023,554
Accrued interest receivable		20,387		20,298
Federal Home Loan Bank stock		21,112		27,565
Premises and equipment, net		26,091		29,879
Operating lease right-of-use asset		13,272		15,193
Foreclosed real estate, net		4,514		208
SBA and USDA servicing asset		10,962		10,601
Mortgage servicing asset, net		1,148		1,660
Bank owned life insurance		77,710		75,786
Goodwill		56,048		56,048
Core deposit intangibles		11,672		12,627
Interest rate derivatives		4,259		6,343
Other assets		64,620		29,396
Total assets	$	4,597,824	$	4,768,400

Liabilities:
Deposits:
Non-interest-bearing demand	$	828,282	$	780,828
Interest-bearing		2,733,760		2,865,173
Total deposits		3,562,042		3,646,001

Federal Home Loan Bank advances		375,000		510,000
Operating lease liability		13,347		15,306
Accrued interest payable		5,800		10,731
Other liabilities		57,705		42,178
Total liabilities	$	4,013,894	$	4,224,216

Shareholders’ Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding		—		—
Common stock, $0.01 par value, 40,000,000 shares authorized, 28,781,229 and 28,817,967 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively		288		1,159
Additional paid-in capital		137,051		138,675
Retained earnings		447,429		402,684
Accumulated other comprehensive (loss) income		(838)		1,666
Total shareholders’ equity		583,930		544,184
Total liabilities and shareholders’ equity	$	4,597,824	$	4,768,400

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
Interest and dividend income:
Loans, including fees		$	66,584		$	50,975		$	201,035		$	152,164
Other investment income			3,018			2,884			9,720			7,980
Federal funds sold			125			144			367			427
Total interest income			69,727			54,003			211,122			160,571

Interest expense:
Deposits			22,227			17,799			66,444			53,272
FHLB advances and other borrowings			3,942			4,412			12,592			12,775
Total interest expense			26,169			22,211			79,036			66,047

Net interest income			43,558			31,792			132,086			94,524

Provision for credit losses:
Provision for loan losses			(76)			(581)			(1,926)			(348)
Provision for unfunded commitments			4			38			249			69
Provision for credit losses			(72)			(543)			(1,677)			(279)

Net interest income after provision for credit losses			43,630			32,335			133,763			94,803

Noninterest income:
Service charges on deposit accounts			929			551			2,735			1,556
Other service charges, commissions and fees			1,537			2,376			4,546			5,592
Gain on sale of assets			22			—			22			—
Gain on sale of residential mortgage loans			—			166			—			1,144
Mortgage servicing income, net			234			516			811			1,915
Gain on sale of SBA loans			685			558			3,266			1,859
SBA servicing income, net			863			1,203			3,496			2,758
Other income			114			808			1,620			2,543
Total noninterest income			4,384			6,178			16,496			17,367

Noninterest expense:
Salaries and employee benefits			11,749			8,953			34,594			26,000
Occupancy and equipment			2,427			1,410			7,189			4,207
Data processing			636			394			1,853			1,068
Advertising			310			161			711			477
Merger-related expenses			117			301			2,063			896
Other expenses			4,805			3,455			15,029			9,938
Total noninterest expense			20,044			14,674			61,439			42,586

Income before provision for income taxes			27,970			23,839			88,820			69,584
Provision for income taxes			3,671			6,569			20,076			19,191
Net income available to common shareholders		$	24,299		$	17,270		$	68,744		$	50,393

Earnings per share:
Basic		$	0.84		$	0.68		$	2.39		$	1.98
Diluted		$	0.84		$	0.67		$	2.37		$	1.96

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(Dollars in thousands)


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025

Net income		$	24,299		$	17,270		$	68,744		$	50,393

Other comprehensive loss

Unrealized holding gains (losses) on securities available for sale			(1,128)			459			(1,362)			233
Realized gain on sale of securities available for sale			—			—			(10)			—
Net changes in fair value of cash flow hedges			73			(3,342)			(2,143)			(13,393)
Tax effect			292			807			1,011			3,492

Other comprehensive loss			(763)			(2,076)			(2,504)			(9,668)

Comprehensive income		$	23,536		$	15,194		$	66,240		$	40,725

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(Dollars in thousands, except per share data)


											Accumulated
		Common Stock				Additional					Other
		Number of				Paid-in			Retained		Comprehensive
		Shares		Amount		Capital			Earnings		Income (Loss)			Total
Three Months Ended:
Balance, July 1, 2026		28,781,229		$	288	$	136,123		$	431,518	$	(75)		$	567,854
Net income		—			—		—			24,299		—			24,299
Stock based compensation expense		—			—		928			—		—			928
Vesting of restricted stock		—			—		—			—		—			—
Other comprehensive loss		—			—		—			—		(763)			(763)
Dividends declared on common stock ($0.29 per share)		—			—		—			(8,388)		—			(8,388)
Balance, September 30, 2026		28,781,229		$	288	$	137,051		$	447,429	$	(838)		$	583,930

Balance, July 1, 2025		25,537,746		$	255	$	50,212		$	380,046	$	5,587		$	436,100
Net income		—			—		—			17,270		—			17,270
Stock based compensation expense		—			—		939			—		—			939
Other comprehensive loss		—			—		—			—		(2,076)			(2,076)
Dividends declared on common stock ($0.25 per share)		—			—		—			(6,345)		—			(6,345)
Balance, September 30, 2025		25,537,746		$	255	$	51,151		$	390,971	$	3,511		$	445,888

Nine Months Ended:
Balance, January 1, 2026		28,817,967		$	1,159	$	138,675		$	402,684	$	1,666		$	544,184
Net income		—			—		—			68,744		—			68,744
Adjustment for shares issued related to the First IC acquisition		—			(871)		871			—		—			—
Stock based compensation expense		—			—		1,948			—		—			1,948
Vesting of restricted stock		121,187			2		(2)			—		—			—
Repurchase of common stock		(157,925)			(2)		(4,441)			—		—			(4,443)
Other comprehensive loss		—			—		—			—		(2,504)			(2,504)
Dividends declared on common stock ($0.83 per share)		—			—		—			(23,999)		—			(23,999)
Balance, September 30, 2026		28,781,229		$	288	$	137,051		$	447,429	$	(838)		$	583,930

Balance, January 1, 2025		25,402,782		$	254	$	49,216		$	358,704	$	13,179		$	421,353
Net income		—			—		—			50,393		—			50,393
Stock based compensation expense		—			—		1,967			—		—			1,967
Vesting of restricted stock		136,238			1		(1)			—		—			—
Repurchase of common stock		(1,274)			—		(31)			—		—			(31)
Other comprehensive loss		—			—		—			—		(9,668)			(9,668)
Dividends declared on common stock ($0.71 per share)		—			—		—			(18,126)		—			(18,126)
Balance, September 30, 2025		25,537,746		$	255	$	51,151		$	390,971	$	3,511		$	445,888

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in thousands)


		Nine Months Ended September 30,
		2026			2025
Cash flow from operating activities:
Net income		$	68,744		$	50,393
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			1,122			2,652
Provision (recovery) for credit losses			(1,677)			(279)
Stock based compensation expense			1,948			1,967
Unrealized (gains) losses recognized on equity securities			907			(305)
Gain on sale of securities			(10)			—
Gain on sale of foreclosed real estate			(22)			(28)
Write-down of foreclosed real estate			93			—
Gain on sale of residential real estate loans			—			(1,144)
Origination of SBA loans held for sale			(61,408)			(39,972)
Proceeds from sales of SBA loans held for sale			74,415			45,335
Gain on sale of SBA loans			(3,266)			(1,859)
Increase in cash value of bank owned life insurance			(1,924)			(1,863)
(Increase) decrease in accrued interest receivable			(89)			(1,054)
(Increase) decrease in SBA and USDA servicing rights			(361)			286
(Increase) decrease in mortgage servicing rights			512			(253)
(Increase) decrease in state tax credits			2,618			(11,455)
Increase in other assets			(36,810)			(3,037)
Increase (decrease) in accrued interest payable			(4,931)			69
Increase in other liabilities			14,218			3,388
Net cash flow provided by operating activities			54,079			42,841

Cash flow from investing activities:
Purchases of equity securities			—			(8,000)
Proceeds from maturities, calls or paydowns of securities available for sale			3,539			2,216
Proceeds from sales of securities available for sale			19,328			—
Redemption (purchase) of Federal Home Loan Bank stock			6,453			(2,442)
Proceeds from sales of residential real estate loans			—			113,753
Decrease (increase) in loans, net			99,352			(158,951)
Purchases of premises and equipment			(1,178)			(449)
Proceeds from sales of foreclosed real estate owned			257			1,735
Net cash flow provided by investing activities			127,751			(52,138)

Cash flow from financing activities:
Dividends paid on common stock			(24,063)			(18,559)
Repurchases of common stock			(4,443)			(31)
Decrease in deposits, net			(83,959)			(43,714)
Premiums paid for interest rate caps			(1,027)			(1,116)
Proceeds from Federal Home Loan Bank advances			—			100,000
Repayments of Federal Home Loan Bank advances			(135,000)			(50,000)
Net cash flow used by financing activities			(248,492)			(13,420)

Continued to following page.

Table of Contents

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in thousands)


		Nine Months Ended September 30,
		2026			2025

Net change in cash and cash equivalents			(66,662)			(22,717)
Cash and cash equivalents at beginning of period			383,676			249,875

Cash and cash equivalents at end of period		$	317,014		$	227,158

Supplemental schedule of noncash investing and financing activities:

Transfer of loans held for investment to loans held for sale		$	1,350		$	347,372
Transfer of branch held for sale from premises and equipment, net to other real estate			3,449			—
Transfer of loan principal to foreclosed real estate, net of write-downs		$	1,185		$	2,199
Initial recognition of operating right-of-use assets		$	405		$	1,233
Supplemental disclosures of cash flow information - Cash paid:

Interest		$	83,967		$	65,978
Income taxes		$	9,855		$	18,660

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

METROCITY BANKSHARES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2026

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements include the accounts of MetroCity Bankshares, Inc. (“Company”) and its wholly-owned subsidiary, Metro City Bank (the “Bank”). The Company owns 100% of the Bank. The “Company” or “our,” as used herein, includes Metro City Bank unless the context indicates that we refer only to MetroCity Bankshares, Inc.

These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) followed within the financial services industry for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements.

The Company principally operates in one business segment, which is community banking.

In the opinion of management, all adjustments, consisting of normal and recurring items, considered necessary for a fair presentation of the consolidated financial statements for the interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods have been reclassified to conform to current year presentation. These reclassifications did not have a material effect on previously reported net income, shareholders’ equity or cash flows.

Operating results for nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2025.

The Company’s significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2025, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Company’s 2025 Form 10-K”). There were no new accounting policies or changes to existing policies adopted during the first nine months of 2026 which had a significant effect on the Company’s results of operations or statement of financial condition. For interim reporting purposes, the Company follows the same basic accounting policies and considers each interim period as an integral part of an annual period.

Contingencies

Due to the nature of their activities, the Company and its subsidiary are at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of September 30, 2026. Although the ultimate outcome of all claims and lawsuits outstanding as of September 30, 2026 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition.

Operating Segments

Our Chief Executive Officer is our designated chief operating decision maker. While the chief operating decision maker monitors the revenue streams of the various products and services, our operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one segment as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

The chief operating decision maker uses income before income taxes as the measure of segment profit or loss to assess the performance of and allocate resources to the Company’s one reportable operating segment. Interest income and noninterest income generated from our residential real estate and SBA loans provide the primary revenue in the operating

Table of Contents

segment. Interest expense, provision for credit losses, salaries, commissions and employee benefits, as well as occupancy and equipment expenses, provide the significant expenses in the operating segment. These figures are regularly provided to the chief operating decision maker and are monitored through budget-to-actual variance review.

The Company has evaluated the Accounting Standards Updates issued during 2026 to date but does not expect those updates to have a material impact on the Company’s consolidated financial statements.

NOTE 2 – BUSINESS COMBINATIONS

After the close of business on December 1, 2025, the Company completed the acquisition of First IC Corporation. (“First IC”). For each share of First IC common stock, First IC stockholders had the right to receive 0.3729 shares of the Company's common stock and $12.00 in cash, with cash paid in lieu of fractional shares. Total consideration was $202.3 million and consisted of $90.5 million of equity (3,384,066 shares) in the form of MetroCity Bankshares, Inc. common stock, plus $111.9 million in cash, including cash paid for stock option cancellations and fractional shares. The transaction qualified as a tax-free reorganization for federal income tax purposes and provided a tax-free exchange for First IC stockholders for the portion of the transaction consideration consisting of the Company’s common stock. In addition to increasing its loan and deposit base, the Company believes it will be able to provide a deeper product set to First IC customers, as well as benefit from increased operating synergies, improving the long-term operating and financial results of the Company.

The Company accounted for the First IC acquisition using the acquisition method pursuant to the Business Combinations Topic of the FASB ASC. The acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $56.0 million and was recorded to goodwill, none of which is anticipated to be deductible for tax purposes. The purchase consideration allocation is considered preliminary as certain estimates related to the assets acquired and liabilities assumed are subject to continuing refinement. Valuations subject to refinement include, but are not limited to, loans, certain deposits, certain other assets, and the core deposit intangible asset. The measurement period may not exceed one year from the acquisition date.

An adjustment was made in the first quarter of 2026 for $871,000 from common stock to additional paid in capital related to shares issued in the acquisition.

Table of Contents

The following table summarizes the merger paid for First IC and the amounts of the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition:


Consideration:
Cash	$	111,855
Equity		90,456
Fair value of total consideration transferred		202,311

Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		121,008
Investment securities		31,931
Loans held for investment		1,026,049
Allowance for credit losses on purchased credit deterioriated loans and purchased seasoned loans		(9,885)
Premises and equipment		12,184
Operating lease right-of-use asset		7,421
Core deposit intangibles		12,733
SBA servicing asset		3,851
Other assets		12,118
Total assets acquired		1,217,410

Deposits		960,976
Federal Home Loan Bank advances		85,000
Operating lease liability		7,543
Other liabilities		17,628
Total liabilities assumed		1,071,147

Total identifiable net assets		146,263

Goodwill	$	56,048

The selected unaudited proforma financial information is presented as if the Company had acquired First IC on January 1, 2025 and is for illustrative purposes and is not necessarily indicative of the financial results of the combined company had the acquisition actually been completed at the beginning of the period presented, nor does it indicate future results for any other interim or full-year period. The net interest income, noninterest income, net income are presented had First IC been acquired on January 1, 2025 and net income attributable to First IC for the nine months ended September 30, 2025 would have been $137.4 million, $22.6 million, $60.8 million, and $9.5 million, respectively.

NOTE 3 – INVESTMENT SECURITIES

The amortized costs, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2026 and December 31, 2025 are summarized as follows:


	September 30, 2026
	Gross		Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Obligations of U.S. Government entities and agencies	$	2,370		81		—	$	2,451
States and political subdivisions		6,696		—		(1,782)		4,914
Mortgage-backed GSE residential		18,205		—		(2,430)		15,775
Total	$	27,271	$	81	$	(4,212)	$	23,140

Table of Contents


	December 31, 2025
	Gross			Gross			Gross			Estimated
	Amortized			Unrealized			Unrealized			Fair
(Dollars in thousands)	Cost			Gains			Losses			Value
Obligations of U.S. Government entities and agencies	$	12,393		$	149		$	—		$	12,542
States and political subdivisions		11,574			15			(1,445)			10,144
Mortgage-backed GSE residential		25,971			20			(1,498)			24,493
Total	$	49,938		$	184		$	(2,943)		$	47,179

The amortized costs and estimated fair values of investment securities available for sale at September 30, 2026 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Securities Available for Sale
	Amortized			Estimated
(Dollars in thousands)	Cost			Fair Value
Due in one year or less	$	—		$	—
Due after one year but less than five years		—			—
Due after five years but less than ten years		—			—
Due in more than ten years		9,066			7,365
Mortgage-backed GSE residential		18,205			15,775
Total	$	27,271		$	23,140

Accrued interest receivable for securities available for sale totaled $167,000 and $214,000 as of September 30, 2026 December 31, 2025, respectively. This accrued interest receivable is included in the “accrued interest receivable” line item on the Company’s Consolidated Balance Sheets.

As of September 30, 2026 and December 31, 2025, the Company had securities pledged to the Federal Reserve Bank Discount Window with a carrying amount of $10.0 million and $12.8 million, respectively. For the nine months ended September 30, 2026, the Company had proceeds from the sale of investment securities of $19.3 million which resulted in gross gains of $10,000. There were no securities sold during the three months ended September 30, 2026 and the three and nine months ended September 30, 2025.

Information pertaining to securities with gross unrealized losses at September 30, 2026 and December 31, 2025 aggregated by investment category and length of time that individual securities have been in a continuous loss position, are summarized in the table below.


	September 30, 2026
	Twelve Months or Less				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
States and political subdivisions		—		—		(1,782)		4,914
Mortgage-backed GSE residential		(822)		10,699		(1,608)		5,075
Total	$	(822)	$	10,699	$	(3,390)	$	9,989


	December 31, 2025
	Twelve Months or Less				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
States and political subdivisions	$	(23)	$	1,283	$	(1,422)	$	6,177
Mortgage-backed GSE residential		(48)		12,034		(1,450)		6,228
Total	$	(71)	$	13,317	$	(2,872)	$	12,405

Table of Contents

At September 30, 2026 the twenty-eight securities available for sale (8 municipal securities and 20 mortgage-backed securities) with an unrealized loss have depreciated 16.9% from the Company’s amortized cost basis. Sixteen of these securities have been in a loss position for greater than twelve months.

The Company does not believe that the securities available for sale that were in an unrealized loss position as September 30, 2026 represent a credit loss impairment. As of September 30, 2026, there have been no payment defaults, nor do we currently expect any future payment defaults. Furthermore, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

Equity Securities

As of September 30, 2026 and December 31, 2025, the Company had equity securities with carrying values totaling $17.7 million and $18.6 million, respectively. The equity securities consist of our investment in a market-rate bond mutual fund that invests in high quality fixed income bonds, mainly government agency securities whose proceeds are designed to positively impact community development throughout the United States. The mutual fund focuses exclusively on providing affordable housing to low- and moderate-income borrowers and renters, including those in Majority Minority Census Tracts.

During the three months ended September 30, 2026 and 2025, we recognized an unrealized loss of $743,000 and an unrealized gain of $124,000, respectively, in net income on our equity securities. During the nine months ended September 30, 2026 and 2025, we recognized an unrealized loss of $908,000 and an unrealized gain of $305,000, respectively. These unrealized gains and losses are recorded in “Other Income” on the Consolidated Statements of Income.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Major classifications of loans held for investment at September 30, 2026 and December 31, 2025 are summarized as follows:


		September 30,			December 31,
(Dollars in thousands)		2026			2025
Construction and development		$	81,675		$	41,796
Commercial real estate			1,479,506			1,560,728
Commercial and industrial			81,729			96,360
Residential real estate			2,336,463			2,378,311
Consumer and other			340			627
Total loans receivable		$	3,979,713		$	4,077,822
Unearned income			(9,213)			(6,621)
Loan discounts			(16,611)			(19,804)
Allowance for credit losses			(25,753)			(27,843)
Loans held for investment, net		$	3,928,136		$	4,023,554

The Company is not committed to lend additional funds to borrowers with nonaccrual or restructured loans.

In the normal course of business, the Company may sell and purchase loan participations to and from other financial institutions and related parties. Commercial loan participations are sold as needed to comply with the legal lending limits per borrower as imposed by regulatory authorities. The participations are sold without recourse and the Company imposes no transfer or ownership restrictions on the purchaser.

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. As of September 30, 2026 and December 31, 2025, accrued interest receivable for loans totaled $20.2 million and $20.0 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s Consolidated Balance Sheets.

Table of Contents

Allowance for Credit Losses

A summary of changes in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2026 and 2025 is as follows:


		Three Months Ended September 30, 2026
		Construction
		and			Commercial			Commercial			Residential			Consumer
(Dollars in thousands)		Development			Real Estate			and Industrial			Real Estate			and Other			Total
Allowance for credit losses:
Beginning balance		$	69		$	14,092		$	1,411		$	10,246		$	—		$	25,818
Charge-offs			—			—			—			—			—			—
Recoveries			—			8			3			—			—			11
Provision for loan losses			1			98			(32)			(146)			3			(76)
Ending balance		$	70		$	14,198		$	1,382		$	10,100		$	3		$	25,753


		Three Months Ended September 30, 2025
		Construction
		and			Commercial			Commercial			Residential			Consumer
(Dollars in thousands)		Development			Real Estate			and Industrial			Real Estate			and Other			Total
Allowance for credit losses:
Beginning balance		$	47		$	7,602		$	1,403		$	9,694		$	2		$	18,748
Charge-offs			—			(110)			(121)			—			—			(231)
Recoveries			—			—			4			—			—			4
Provision for loan losses			17			202			(53)			(749)			2			(581)
Ending balance		$	64		$	7,694		$	1,233		$	8,945		$	4		$	17,940


		Nine Months Ended September 30, 2026
		Construction
		and			Commercial			Commercial			Residential			Consumer
(Dollars in thousands)		Development			Real Estate			and Industrial			Real Estate			and Other			Total
Allowance for credit losses:
Beginning balance		$	65		$	15,716		$	1,586		$	10,472		$	4		$	27,843
Charge-offs			—			(190)			(92)			—			—			(282)
Recoveries			—			109			9			—			—			118
Provision for loan losses			5			(1,437)			(121)			(372)			(1)			(1,926)
Ending balance		$	70		$	14,198		$	1,382		$	10,100		$	3		$	25,753


	Nine Months Ended September 30, 2025
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Total
Allowance for credit losses:
Beginning balance	$	31	$	7,265	$	1,380	$	10,066	$	2	$	18,744
Charge-offs		—		(173)		(294)		—		—		(467)
Recoveries		—		2		9		—		—		11
Provision for loan losses		33		600		138		(1,121)		2		(348)
Ending balance	$	64	$	7,694	$	1,233	$	8,945	$	4	$	17,940

Table of Contents

The allowance for credit losses was $25.8 million as of September 30, 2026 compared to $27.8 million as of December 31, 2025, a decrease of $2.0 million. The decrease was primarily driven by lower loan balances.

Allowance for Unfunded Commitments

The Company records an allowance for credit losses on unfunded loan commitments, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Company’s Consolidated Statements of Income. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur. The allowance for unfunded commitments totaled $539,000, $287,000 and $233,000 as of September 30, 2026, December 31, 2025 and September 30, 2025, respectively, and is included in “Other Liabilities” on the Company’s Consolidated Balance Sheets.

Collateral-Dependent Loans

Collateral-dependent loans are loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The Company measures expected credit losses on collateral-dependent loans using the fair value of the collateral as of the reporting date. The Company also uses the collateral’s fair value to measure expected credit losses whenever foreclosure is probable. When repayment depends on the sale of the collateral, the allowance for credit losses is measured as the amount by which the loan’s amortized cost basis exceeds the collateral’s fair value, less estimated costs to sell. When repayment depends only on the operation of the collateral, the allowance for credit losses is measured as the amount by which the loan’s amortized cost basis exceeds the collateral’s fair value, without a deduction for estimated costs to sell. Any portion of a loan deemed uncollectible is charged off against the allowance for credit losses when that determination is made.

As of September 30, 2026, there were $33.6 million, $12.5 million and $680,000 of collateral-dependent loans which were secured by commercial real estate, residential real estate, and commercial equipment, respectively. As of December 31, 2025, there were $46.4 million, $10.3 million and $1.4 million of collateral-dependent loans which were secured by commercial real estate, residential real estate, and commercial equipment, respectively. The allowance for credit losses allocated to these loans as of September 30, 2026 and December 31, 2025 was $1.9 million and $2.3 million, respectively.

Past Due and Nonaccrual Loans

A primary credit quality indicator for financial institutions is delinquent balances. Delinquencies are updated on a daily basis and are continuously monitored. Loans are placed on nonaccrual status as needed based on repayment status and consideration of accounting and regulatory guidelines. Nonaccrual balances are updated and reported on a daily basis.

The following summarizes the Company’s past due and nonaccrual loans, by portfolio segment, as of September 30, 2026 and December 31, 2025:


											Accruing			Total						Total
(Dollars in thousands)											Greater than			Accruing						Financing
September 30, 2026		Current			30-59 Days			60-89 Days			90 Days			Past Due			Nonaccrual			Receivables
Construction and development		$	81,145		$	—		$	—		$	—		$	—		$	—		$	81,145
Commercial real estate			1,443,740			2,384			9,781			1,076			13,241			3,260			1,460,241
Commercial and industrial			78,193			807			851			—			1,658			963			80,814
Residential real estate			2,316,303			—			4,227			—			4,227			10,819			2,331,349
Consumer and other			340			—			—			—			—			—			340
Total		$	3,919,721		$	3,191		$	14,859		$	1,076		$	19,126		$	15,042		$	3,953,889

Table of Contents


											Accruing			Total						Total
(Dollars in thousands)											Greater than			Accruing						Financing
December 31, 2025		Current			30-59 Days			60-89 Days			90 Days			Past Due			Nonaccrual			Receivables
Construction and development		$	40,319		$	800		$	—		$	—		$	800		$	—		$	41,119
Commercial real estate			1,520,769			5,446			1,485			—			6,931			14,776			1,542,476
Commercial and industrial			94,025			306			—			—			306			1,301			95,632
Residential real estate			2,341,189			17,736			3,490			—			21,226			9,136			2,371,551
Consumer and other			619			—			—			—			—			—			619
Total		$	3,996,921		$	24,288		$	4,975		$	—		$	29,263		$	25,213		$	4,051,397

The following table presents an analysis of nonaccrual loans with and without a related allowance for credit losses as of September 30, 2026 and December 31, 2025:


		Nonaccrual			Nonaccrual
(Dollars in thousands)		Loans With a			Loans Without a			Total
September 30, 2026		Related ACL			Related ACL			Nonaccrual Loans
Commercial real estate		$	1,431		$	1,829		$	3,260
Commercial and industrial			766			197			963
Residential real estate			—			10,819			10,819
Total		$	2,197		$	12,845		$	15,042


		Nonaccrual			Nonaccrual
(Dollars in thousands)		Loans With a			Loans Without a			Total
December 31, 2025		Related ACL			Related ACL			Nonaccrual Loans
Commercial real estate		$	4,601		$	10,175		$	14,776
Commercial and industrial			858			443			1,301
Residential real estate			—			9,136			9,136
Total		$	5,459		$	19,754		$	25,213

All payments received while a loan is on nonaccrual status are applied against the principal balance of the loan. The Company does not recognize interest income while loans are on nonaccrual status.

Credit Quality Indicators

The Company utilizes a ten grade loan risk rating system for its loan portfolio as follows:

●

Loans rated Pass – Loans in this category have low to average risk. There are six loan risk ratings (grades 1-6) included in loans rated Pass.

●

Loans rated Special Mention (grade 7) – Loans do not presently expose the Company to a sufficient degree of risk to warrant adverse classification, but do possess deficiencies deserving close attention.

●

Loans rated Substandard (grade 8) – Loans are inadequately protected by the current credit-worthiness and paying capability of the obligor or of the collateral pledged, if any.

●

Loans rated Doubtful (grade 9) – Loans which have all the weaknesses inherent in loans classified Substandard, with the added characteristic that the weaknesses make collections or liquidation in full, or on the basis of currently known facts, conditions and values, highly questionable or improbable.

●

Loans rated Loss (grade 10) – Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.

Loan grades are monitored regularly and updated as necessary based upon review of repayment status and consideration of periodic updates regarding the borrower’s financial condition and capacity to meet contractual requirements.

Table of Contents

The following tables present the loan portfolio’s amortized cost by loan type, risk rating and year of origination as of September 30, 2026 and December 31, 2025. There were no loans with a risk rating of Doubtful or Loss at September 30, 2026 and December 31, 2025.


(Dollars in thousands)		Term Loan by Origination Year																Revolving
September 30, 2026		2026			2025			2024			2023		2022		Prior			Loans			Total Loans
Construction and development
Pass		$	3,560		$	51,726		$	20,562		$	—	$	5,121	$	176		$	—		$	81,145
Special Mention			—			—			—			—		—		—			—			—
Substandard			—			—			—			—		—		—			—			—
Total construction and development		$	3,560		$	51,726		$	20,562		$	—	$	5,121	$	176		$	—		$	81,145
Commercial real estate
Pass		$	127,334		$	286,152		$	282,933		$	187,421	$	270,192	$	232,494		$	4,202		$	1,390,728
Special Mention			—			—			—			11,899		—		113			—			12,012
Substandard			—			—			1,076			1,641		33,070		21,714			—			57,501
Total commercial real estate		$	127,334		$	286,152		$	284,009		$	200,961	$	303,262	$	254,321		$	4,202		$	1,460,241

Commercial real estate:
Current period gross write offs		$	—		$	—		$	74		$	—	$	116	$	—		$	—		$	190

Commercial and industrial
Pass		$	5,248		$	13,285		$	6,502		$	16,222	$	5,752	$	7,844		$	23,990		$	78,843
Special Mention			—			—			—			—		—		360			—			360
Substandard			—			—			—			426		463		722			—			1,611
Total commercial and industrial		$	5,248		$	13,285		$	6,502		$	16,648	$	6,215	$	8,926		$	23,990		$	80,814

Commercial and industrial:
Current period gross write offs		$	—		$	—		$	—		$	—	$	—	$	92		$	—		$	92

Residential real estate
Pass		$	253,905		$	373,447		$	117,945		$	105,711	$	588,949	$	880,360		$	—		$	2,320,317
Special Mention			—			—			—			—		—		—			—			—
Substandard			—			181			981			616		2,318		6,936			—			11,032
Total residential real estate		$	253,905		$	373,628		$	118,926		$	106,327	$	591,267	$	887,296		$	—		$	2,331,349
Consumer and other
Pass		$	261		$	—		$	—		$	—	$	—	$	—		$	79		$	340
Special Mention			—			—			—			—		—		—			—			—
Substandard			—			—			—			—		—		—			—			—
Total consumer and other		$	261		$	—		$	—		$	—	$	—	$	—		$	79		$	340

Total loans		$	390,308		$	724,791		$	429,999		$	323,936	$	905,865	$	1,150,719		$	28,271		$	3,953,889

Table of Contents


(Dollars in thousands)		Term Loan by Origination Year															Revolving
December 31, 2025		2025		2024			2023			2022		2021		Prior			Loans			Total Loans
Construction and development
Pass		$	11,568	$	24,045		$	141		$	4,886	$	180	$	299		$	—		$	41,119
Special Mention			—		—			—			—		—		—			—			—
Substandard			—		—			—			—		—		—			—			—
Total construction and development		$	11,568	$	24,045		$	141		$	4,886	$	180	$	299		$	—		$	41,119
Commercial real estate
Pass		$	329,091	$	290,439		$	213,509		$	299,971	$	148,006	$	177,640		$	3,020		$	1,461,676
Special Mention			—		—			14,152			6,915		—		114			—			21,181
Substandard			—		—			1,121			31,544		12,396		14,558			—			59,619
Total commercial real estate		$	329,091	$	290,439		$	228,782		$	338,430	$	160,402	$	192,312		$	3,020		$	1,542,476
Commercial and industrial
Pass		$	9,527	$	8,481		$	20,771		$	11,244	$	4,824	$	7,356		$	31,095		$	93,298
Special Mention			—		—			—			—		—		484			—			484
Substandard			—		—			553			463		196		638			—			1,850
Total commercial and industrial		$	9,527	$	8,481		$	21,324		$	11,707	$	5,020	$	8,478		$	31,095		$	95,632

Commercial and industrial:
Current period gross write offs		$	—	$	—		$	—		$	—	$	196	$	98		$	—		$	294

Residential real estate
Pass		$	417,993	$	137,770		$	148,861		$	648,433	$	686,010	$	322,444		$	—		$	2,361,511
Special Mention			—		—			—			—		—		—			—			—
Substandard			—		837			1,098			2,067		425		5,613			—			10,040
Total residential real estate		$	417,993	$	138,607		$	149,959		$	650,500	$	686,435	$	328,057		$	—		$	2,371,551
Consumer and other
Pass		$	324	$	295		$	—		$	—	$	—	$	—		$	—		$	619
Special Mention			—		—			—			—		—		—			—			—
Substandard			—		—			—			—		—		—			—			—
Total consumer and other		$	324	$	295		$	—		$	—	$	—	$	—		$	—		$	619

Total loans		$	768,503	$	461,867		$	400,206		$	1,005,523	$	852,037	$	529,146		$	34,115		$	4,051,397

Loan Modifications to Borrowers Experiencing Financial Difficulty.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, payment deferrals, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

During the three and nine months ended September 30, 2026, there was one commercial real estate loan modification totaling $1.8 million made to a borrower experiencing financial difficulty. The borrower of this loan modification was granted a principal and interest payment deferrals totaling $60,000, so no payment was required to be made during the deferral period which ends in December 2026.

During the nine months ended September 30, 2025, there was one commercial real estate loan modification totaling $12.2 million made to a borrower experiencing financial difficulty. The borrower of this loan modification was granted principal and interest payment deferrals totaling $324,000 so no payments were required to be made during the deferral period, which ended in May 2026.

No charge-offs of previously modified loans were recorded during the three and nine months ended September 30, 2026 and 2025.

Table of Contents

NOTE 5 – SBA AND USDA LOAN SERVICING

The Company sells the guaranteed portion of certain SBA and USDA loans it originates and continues to service the sold portion of the loan. The portion of the loans sold are not included in the financial statements of the Company. As of September 30, 2026 and December 31, 2025, the unpaid principal balances of serviced loans totaled $676.2 million and $685.5 million, respectively.

Activity for SBA and USDA loan servicing rights are as follows:


		For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Dollars in thousands)		2026			2025			2026			2025
Beginning of period		$	11,180		$	6,823		$	10,601		$	7,274
Change in fair value			(218)			165			361			(286)
End of period, fair value		$	10,962		$	6,988		$	10,962		$	6,988

Fair value at September 30, 2026 and December 31, 2025 was determined using discount rates ranging from 4.38% to 9.84% and 5.75% to 11.09%, respectively, and prepayment speeds ranging from 7.45% to 20.55% and 6.42% to 21.78%, respectively, depending on the stratification of the specific right. Average default rates are based on the industry average for the applicable NAICS/SIC code.

Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of fair value measurement, risk characteristics including product type and interest rate, were used to stratify the originated loan servicing rights.

NOTE 6 – RESIDENTIAL MORTGAGE LOAN SERVICING

Residential mortgage loans serviced for others are not reported as assets. The outstanding principal of these loans at September 30, 2026 and December 31, 2025 was $429.5 million and $702.6 million, respectively.

Activity for mortgage loan servicing rights and the related valuation allowance are as follows:


(Dollars in thousands)		For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Mortgage loan servicing rights:		2026			2025			2026			2025
Beginning of period		$	1,308		$	1,676		$	1,660		$	1,409
Additions			—			126			—			663
Amortization expense			(160)			(159)			(512)			(414)
Valuation allowance			—			19			—			4
End of period, carrying value		$	1,148		$	1,662		$	1,148		$	1,662


(Dollars in thousands)		For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Valuation allowance:		2026			2025			2026			2025
Beginning balance		$	—		$	35		$	—		$	20
Additions expensed			—			—			—			43
Reductions credited to operations			—			(19)			—			(47)
Ending balance		$	—		$	16		$	—		$	16

The fair value of servicing rights was $5.6 million and $5.7 million at September 30, 2026 and December 31, 2025, respectively. Fair value at September 30, 2026 was determined by using a discount rate of 12.60%, prepayment speeds of 14.74%, and a weighted average default rate of 1.58%. Fair value at December 31, 2025 was determined by using a discount rate of 12.62%, prepayment speeds of 18.58%, and a weighted average default rate of 1.96%.

Table of Contents

NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES & OTHER BORROWINGS

Advances from the Federal Home Loan Bank (“FHLB”) at September 30, 2026 and December 31, 2025 are summarized as follows:


(Dollars in thousands)		September 30, 2026			December 31, 2025
Daily rate credit advance maturing on December 2, 2026; fixed rate of 3.88%		$	—		$	85,000
Convertible advance maturing December 4, 2026; fixed rate of 3.739%			—			50,000
Convertible advance maturing April 22, 2027; fixed rate of 4.174%			25,000			25,000
Convertible advance maturing April 23, 2027; fixed rate of 4.177%			25,000			25,000
Convertible advance maturing April 26, 2027; fixed rate of 4.193%			50,000			50,000
Convertible advance maturing May 7, 2027; fixed rate of 4.089%			100,000			100,000
Convertible advance maturing May 13, 2027; fixed rate of 4.099%			50,000			50,000
Convertible advance maturing May 14, 2027; fixed rate of 4.100%			75,000			75,000
Advance maturing June 24, 2027; fixed rate of 4.470%			50,000			50,000
Total FHLB advances		$	375,000		$	510,000

The FHLB advances outstanding at all have a conversion feature that allows the FHLB to call the advances every three months, except for the $50 million borrowing maturing on June 24, 2027. At September 30, 2026 and December 31, 2025, the Company had a line of credit with the FHLB, set as a percentage of total assets, with maximum borrowing capacity of $1.34 billion and $1.09 billion, respectively. The available borrowing amounts are collateralized by the Company’s FHLB stock and pledged residential real estate loans, which totaled $2.33 billion and $2.35 billion at September 30, 2026 and December 31, 2025, respectively.

At September 30, 2026, the Company had unsecured federal funds lines available with correspondent banks of approximately $67.5 million. There were no advances outstanding on these lines at September 30, 2026.

At September 30, 2026 and December 31, 2025, the Company had Federal Reserve Discount Window funds available of approximately $629.5 million and $600.4 million, respectively. The funds are collateralized by a pool of construction and development, commercial real estate and commercial and industrial loans with carrying balances totaling $806.8 million and $765.7 million as of September 30, 2026 and December 31, 2025, respectively, as well as all of the Company’s municipal and mortgage-backed securities. There were no outstanding borrowings on this line as of September 30, 2026.

NOTE 8 – OPERATING LEASES

The Company has entered into various operating leases for certain branch locations with terms extending through April 2036. Generally, these leases have initial lease terms of ten years or less. Many of the leases have one or more renewal options which typically are for five years at the then fair market rental rates. We assessed these renewal options using a threshold of reasonably certain. For leases where we were reasonably certain to renew, those option periods were included within the lease term, and therefore, the measurement of the right-of-use (“ROU”) asset and lease liability. None of our leases include options to terminate the lease. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. The Company currently does not have any finance leases.

Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental collateralized borrowing rate provided by the FHLB at the lease commencement date. ROU assets are further adjusted for lease incentives, if any. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in “Occupancy and Equipment” expense in the Consolidated Statements of Income.

Table of Contents

The components of lease cost for three and nine months ended September 30, 2026 and 2025 were as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2026			2025		2026			2025
Operating lease cost	$	954		$	533	$	2,841		$	1,693
Variable lease cost		87			55		207			107
Short-term lease cost		—			—		155			—
Sublease income		—			—		—			—
Total net lease cost	$	1,041		$	588	$	3,203		$	1,800

Future maturities of the Company’s operating lease liabilities are summarized as follows:


(Dollars in thousands)
Twelve Months Ended:		Lease Liability
September 30, 2027		$	3,583
September 30, 2028			3,138
September 30, 2029			2,581
September 30, 2030			1,883
September 30, 2031			1,376
After September 30, 2031			2,296
Total lease payments			14,857
Less: interest discount			(1,510)
Present value of lease liabilities		$	13,347



Supplemental Lease Information		September 30, 2026
Weighted-average remaining lease term (years)		5.4
Weighted-average discount rate		4.00	%


		Nine Months Ended September 30,
(Dollars in thousands)		2026			2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (cash payments)		$	1,861		$	1,655
Operating cash flows from operating leases (lease liability reduction)			1,580			1,430
Operating lease right-of-use assets obtained in exchange for leases entered into during the period			405			1,233

NOTE 9 – INTEREST RATE DERIVATIVES

At September 30, 2026, the Company had four separate interest rate swap agreements with notional amounts totaling $200.0 million. The interest rate swaps are two-year forward three-year term swaps (five-year total term) where cash settlements began in January 2024 or April 2024. The swap agreements were designated as cash flow hedges of our deposit accounts that are indexed to the Federal Funds Effective Rate. The swaps are determined to be highly effective since inception and therefore no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps amounted to an unrealized gain of $2.0 million and $5.5 million and an unrealized loss of $0 and $0 at September 30, 2026 and, December 31, 2025 respectively. These unrealized gains and losses are recorded in “Interest Rate Derivatives” and “Other Liabilities” on the Consolidated Balance Sheets. The Company expects the hedges to remain highly effective during the remaining terms of the swaps.

During 2026, the Company entered into two additional interest-rate cap agreements with aggregate notional amounts totaling $200.0 million consisting of a $100.0 million cap entered into on April 10, 2026 and a $100.0 million cap entered into on June 16, 2026, both with a cap rate of 4.00%. These two interest rate caps are two-year term spot caps where cash settlements began in May 2026 and June 2026. During January 2025, the Company entered into three interest rate cap agreements with notional amounts totaling $200.0 million, all with a cap rate of 4.50%. One of these interest rate caps is a two-year spot cap where cash settlements began in February 2025. The other two interest rate caps are forward starting

Table of Contents

two-year term caps where cash settlements began in June 2025 or July 2025. During October 2021, the Company entered into an interest rate cap agreement with a notional amount of $50.0 million at a cap rate of 2.50%. This interest rate cap is a two-year forward three-year term (five-year total term) where cash settlements began in November 2023. The interest rate cap agreements were designated as cash flow hedges of our deposit accounts that are indexed to the Federal Funds Effective Rate. The rate cap premium paid by the Company at inception will be amortized on a straight-line basis to deposit interest expense over the total term of the interest rate cap agreement. The aggregate fair value of the interest rate caps, inclusive of unamortized interest rate cap premiums, amounted to an unrealized gain of $953,000 and $819,000 and an unrealized loss of $0 and $451,000 at September 30, 2026 and December 31, 2025, respectively. These unrealized gains and losses are recorded in “Interest Rate Derivatives” and “Other Liabilities” on the Consolidated Balance Sheets.

The Company is exposed to credit related losses in the event of the nonperformance by the counterparties to the interest rate swaps. The Company performs an initial credit evaluation and ongoing monitoring procedures for all counterparties and currently anticipates that all counterparties will be able to fully satisfy their obligation under the contracts. In addition, the Company may require collateral from counterparties in the form of cash deposits in the event that the fair value of the contracts are positive and such fair value for all positions with the counterparty exceeds the credit support thresholds specified by the underlying agreement. Conversely, the Company is required to post cash deposits as collateral in the event the fair value of the contracts are negative and are below the credit support thresholds. At September 30, 2026, there were no cash deposits pledged as collateral by the Company. At September 30, 2026, the Company had $4.4 million of restricted cash obtained from the counterparties as collateral for the significant unrealized gains on our interest rate derivatives.

Summary information for the interest rate swaps designated as cash flow hedges is as follows:


		As of or for the			As of or for the
		Nine Months Ended			Year Ended
(Dollars in thousands)		September 30, 2026			December 31, 2025
Notional amounts		$	200,000		$	575,000
Weighted-average pay rate			1.88%			1.98%
Weighted-average receive rate			3.65%			4.21%
Weighted-average maturity			5.0 years			4.5 years
Weighted-average remaining maturity			0.39			0.6 years
Net interest income		$	5,235		$	14,776

Summary information for the interest rate caps designated as cash flow hedges is as follows:


		As of or for the			As of or for the
		Nine Months Ended			Year Ended
(Dollars in thousands)		September 30, 2026			December 31, 2025
Notional amounts		$	450,000		$	250,000
Rate cap premiums			1,329			819
Weighted-average cap rate			4.06%			4.10%
Weighted-average maturity			2.4 years			2.8 years
Weighted-average remaining maturity			0.97 year			1.2 years
Net interest income		$	(82)		$	345

NOTE 10 – LOAN COMMITMENTS AND RELATED FINANCIAL INSTRUMENTS

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of those

Table of Contents

instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments where contract amounts represent credit risk as of September 30, 2026 and December 31, 2025 include:


		September 30,			December 31,
(Dollars in thousands)		2026			2025
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit		$	157,704		$	120,078
Standby letters of credit			16,104			14,490

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments to extend credit includes $157.7 million of unused lines of credit and $16.1 million for standby letters of credit as of September 30, 2026. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty.

Standby letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The Company maintains cash deposits with a financial institution that during the year are in excess of the insured limitation of the Federal Deposit Insurance Corporation. If the financial institution were not to honor its contractual liability, the Company could incur losses. Management is of the opinion that there is not material risk because of the financial strength of the institution.

NOTE 11 – FAIR VALUE

Financial Instruments Measured at Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Table of Contents

The following presents the assets and liabilities as of September 30, 2026 and December 31, 2025 which are measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, and the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded:


		September 30, 2026
														Total Gains
(Dollars in thousands)		Total			Level 1			Level 2			Level 3			(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies		$	2,451		$	—		$	—		$	2,451
States and political subdivisions			4,914			—			4,914			—
Mortgage-backed GSE residential			15,775			—			15,775			—
Total securities available for sale			23,140			—			20,689			2,451

Equity securities			17,739			17,739			—			—
SBA and USDA servicing asset			10,962			—			—			10,962
Interest rate derivatives			4,259			—			4,259			—
		$	56,100		$	17,739		$	24,948		$	13,413
Nonrecurring fair value measurements:
Collateral-dependent loans		$	10,367		$	—		$	—		$	10,367		$	26


		December 31, 2025
														Total Gains
(Dollars in thousands)		Total			Level 1			Level 2			Level 3			(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies		$	12,542		$	—		$	9,947		$	2,595
States and political subdivisions			10,144			—			10,144			—
Mortgage-backed GSE residential			24,493			—			24,493			—
Total securities available for sale			47,179			—			44,584			2,595

Equity securities			18,646			18,646			—			—
SBA and USDA servicing asset			10,601			—			—			10,601
Interest rate derivatives			6,343			—			6,343			—
		$	82,769		$	18,646		$	50,927		$	13,196
Nonrecurring fair value measurements:
Collateral-dependent loans		$	1,658			—			—			1,658		$	231

Liabilities
Recurring fair value measurements:
Interest rate swaps		$	451		$	—		$	451		$	—

Table of Contents

The Company used the following methods and significant assumptions to estimate fair value:

Securities, Available for Sale: The Company carries securities available for sale at fair value. For securities where quoted prices are not available (Level 2), the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The investments in the Company’s portfolio are generally not quoted on an exchange but are actively traded in the secondary institutional markets.

The Company owns certain SBA investments for which the fair value is determined using Level 3 hierarchy inputs and assumptions as the trading market for such securities was determined to be “not active.” This determination was based on the limited number of trades or, in certain cases, the existence of no reported trades. Discounted cash flows are calculated by a third party using interest rate curves that are updated to incorporate current market conditions, including prepayment vectors and credit risk. During time when trading is more liquid, broker quotes are used to validate the model.

Equity Securities: The Company carries equity securities at fair value. Equity securities are measured at fair value using quoted market prices on nationally recognized and foreign securities exchanges (Level 1).

SBA and USDA Servicing Assets: The fair values of the Company’s servicing assets are determined using Level 3 inputs. All separately recognized servicing assets and servicing liabilities are initially measured at fair value and at each reporting date and changes in fair value are reported in earnings in the period in which they occur.

Interest Rate Derivatives: Exchange-traded derivatives are valued using quoted prices and are classified within Level 1 of the valuation hierarchy. However, few classes of derivative contracts are listed on an exchange; thus, the Company’s derivative positions are valued by third parties using their valuation models and confirmed by the Company. Since the model inputs can be observed in a liquid market and the models do not require significant judgement, such derivative contracts are classified within Level 2 of the fair value hierarchy. The Company’s interest rate derivatives contracts (designated as cash flow hedges) are classified within Level 2.

Under certain circumstances we make adjustments to fair value for our assets and liabilities although they are not measured at fair value on an ongoing basis.

Collateral-dependent loans: Collateral-dependent loans are loans where repayment is expected to be provided solely by the sale of the underlying collateral and there are no other available and reliable sources of repayment. Fair value for both collateral-dependent loans are measured based on the value of the collateral securing these loans and are classified at a Level 3 in the fair value hierarchy. Collateral may include real estate, or business assets including equipment, inventory and accounts receivable. The value of real estate collateral is determined based on an appraisal by qualified licensed appraisers hired by the Company. The value of business equipment is based on an appraisal by qualified licensed appraisers hired by the Company if significant, or the equipment’s net book value on the business’ financial statements. Inventory and accounts receivable collateral are valued based on independent field examiner review or aging reports. Appraisals may utilize a single valuation approach or a combination or approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Appraised values are reviewed by management using historical knowledge, market considerations, and knowledge of the client and client’s business.

Table of Contents

Changes in level 3 fair value measurements

The table below presents a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2026 and 2025.


		Obligations of
(Dollars in thousands)		U.S. Government
Three Months Ended:		Entities and Agencies
Fair value, July 1, 2026		$	2,502
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(51)
Transfers in and/or out of Level 3			—
Fair value, September 30, 2026		$	2,451

Fair value, July 1, 2025		$	2,534
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(30)
Transfers in and/or out of Level 3			—
Fair value, September 30, 2025		$	2,504

Nine Months Ended:
Fair value, January 1, 2026		$	2,595
Total losses included in income			—
Settlements			—
Prepayments/paydowns			(144)
Transfers in and/or out of Level 3			—
Fair value, September 30, 2026		$	2,451

Fair value, January 1, 2025		$	4,467
Total gains included in income			—
Settlements			—
Prepayments/paydowns			(1,963)
Transfers in and/or out of Level 3			—
Fair value, September 30, 2025		$	2,504

Table of Contents

There were no gains or losses included in earnings for securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods presented above. The only activity for these securities were prepayments. There were no purchases, sales, or transfers into and out of Level 3. The following table presents quantitative information about recurring Level 3 fair value measures at September 30, 2026 and December 31, 2025:


		Valuation		Unobservable		General
		Technique		Input		Range
September 30, 2026:
Recurring:
Obligations of U.S. Government entities and agencies		Discounted cash flows		Discount rate		3%-5%
Nonrecurring:
Collateral-dependent loans		Appraised value less estimated selling costs		Estimated selling costs		6%

December 31, 2025:
Recurring:
Obligations of U.S. Government entities and agencies		Discounted cash flows		Discount rate		3%-5%
Nonrecurring:
Collateral-dependent loans		Appraised value less estimated selling costs		Estimated selling costs		6%

The carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2026 and December 31, 2025 are as follows:


		Carrying				Estimated Fair Value at September 30, 2026
(Dollars in thousands)		Amount			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash, due from banks, and federal funds sold		$	317,014		$	—		$	317,014		$	—		$	317,014
Investment securities			40,879			17,739			20,689			2,451			40,879
Loans, net			3,928,136			—			—			3,910,067			3,910,067
Accrued interest receivable			20,387			—			167			20,220			20,387
SBA and USDA servicing asset			10,962			—			—			10,962			10,962
Mortgage servicing asset			1,148			—			—			5,637			5,637
Interest rate derivatives			4,259			—			4,259			—			4,259
Financial Liabilities:
Deposits			3,562,042			—			3,553,493			—			3,553,493
Federal Home Loan Bank advances			375,000			—			375,000			—			375,000
Accrued interest payable			5,800			—			5,800			—			5,800

Table of Contents


		Carrying			Estimated Fair Value at December 31, 2025
(Dollars in thousands)		Amount			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash, due from banks, and federal funds sold		$	383,676		$	—		$	383,676		$	—		$	383,676
Investment securities			65,825			18,646			44,584			2,595			65,825
Loans held for sale			9,741			—			9,741			—			9,741
Loans, net			4,023,554			—			—			3,964,005			3,964,005
Accrued interest receivable			20,298			—			344			19,954			20,298
SBA and USDA servicing assets			10,601			—			—			10,601			10,601
Mortgage servicing assets			1,660			—			—			5,659			5,659
Interest rate derivatives			6,343			—			6,343			—			6,343
Financial Liabilities:
Deposits			3,646,001			—			3,645,272			—			3,645,272
Federal Home Loan Bank advances			510,000			—			513,060			—			513,060
Accrued interest payable			10,731			—			10,731			—			10,731
Interest rate derivatives			451						451						451

NOTE 12 – REGULATORY MATTERS

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III rules”), the Bank must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available for sale securities, if any, is not included in computing regulatory capital. Management believes as of September 30, 2026 the Company and Bank meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2026 and December 31, 2025 the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The table below summarizes the capital requirements applicable to the Bank in order to be considered “well-capitalized” from a regulatory perspective, as well as the Company’s and the Bank’s capital ratios as of September 30, 2026 and December 31, 2025. The prompt corrective action thresholds do not apply to the Company and are presented as N/A. The Bank exceeded all regulatory capital requirements and was considered “well-capitalized” under the prompt corrective action framework as of September 30, 2026 and December 31, 2025.

Table of Contents


										To Be Well Capitalized
						Minimum Capital Required -				Under Prompt Corrective
		Actual				Basel III				Action Provisions:
(Dollars in thousands)		Amount			Ratio	Amount ≥		Ratio ≥		Amount ≥	Ratio ≥
As of September 30, 2026:
Total Capital (to Risk Weighted Assets)
Consolidated		$	543,339		18.36	310,767		10.5	%	N/A	N/A
Bank			543,107		18.35	310,767		10.5		295,969	10.0	%
Tier I Capital (to Risk Weighted Assets)
Consolidated			517,047		17.47	251,573		8.5	%	N/A	N/A
Bank			516,815		17.46	251,573		8.5		236,775	8.0	%
Common Tier 1 (CET1)
Consolidated			517,047		17.47	207,178		7.0	%	N/A	N/A
Bank			516,815		17.46	207,178		7.0		192,380	6.5	%
Tier 1 Capital (to Average Assets)
Consolidated			517,047		11.50	179,770		4.0	%	N/A	N/A
Bank			516,815		11.50	179,770		4.0		224,713	5.0	%

As of December 31, 2025:
Total Capital (to Risk Weighted Assets)
Consolidated		$	501,973		16.85	312,741		10.5	%	N/A	N/A
Bank			499,580		16.77	312,726		10.5		297,835	10.0	%
Tier I Capital (to Risk Weighted Assets)
Consolidated			473,843		15.91	253,171		8.5	%	N/A	N/A
Bank			471,450		15.83	253,159		8.5		238,268	8.0	%
Common Tier 1 (CET1)
Consolidated			473,843		15.91	208,494		7.0	%	N/A	N/A
Bank			471,450		15.83	208,484		7.0		193,592	6.5	%
Tier 1 Capital (to Average Assets)
Consolidated			473,843		10.00	189,572		4.0	%	N/A	N/A
Bank			471,450		9.84	191,629		4.0		239,536	5.0	%

NOTE 13 – STOCK BASED COMPENSATION

The Company adopted the MetroCity Bankshares, Inc. 2018 Stock Option Plan (the “Prior Option Plan”) effective as of April 18, 2018, and the Prior Option Plan was approved by the Company’s shareholders on May 30, 2018. The Prior Option Plan provided for awards of stock options to officers, employees and directors of the Company. The Board of Directors of the Company determined that it was in the best interests of the Company and its shareholders‘ to amend and restate the Prior Option Plan to provide for the grant of additional types of awards. Acting pursuant to its authority under the Prior Option Plan, the Board of Directors approved and adopted the MetroCity Bankshares, Inc. 2018 Omnibus Incentive Plan (the “2018 Incentive Plan”), which constitutes the amended and restated version of the Prior Option Plan. The Board of Directors has reserved 2,400,000 shares of Company common stock for issuance pursuant to awards granted under the 2018 Incentive Plan, any or all of which may be granted as nonqualified stock options, incentive stock options, restricted stock, restricted stock units, performance awards and other stock-based awards. In the event all or a portion of a stock award is forfeited, cancelled, expires, or is terminated before becoming vested, paid, exercised, converted, or otherwise settled in full, any unissued or forfeited shares again become available for issuance pursuant to awards granted under the 2018 Incentive Plan and do not count against the maximum number of reserved shares. In addition, shares of common stock deducted or withheld to satisfy tax withholding obligations will be added back to the share reserve and will again be available for issuance pursuant to awards granted under the plan. The 2018 Incentive Plan is administered by the Compensation Committee of our Board of Directors (the “Committee”). The determination of award recipients under the 2018 Incentive Plan, and the terms of those awards, will be made by the Committee. At September 30, 2026, 240,000 stock options had been granted and 985,783 shares of restricted stock had been issued under the 2018 Incentive Plan.

Table of Contents

Stock Options

A summary of stock option activity for the nine months ended September 30, 2026 presented below:


				Weighted
				Average
		Shares		Exercise Price
Outstanding at January 1, 2026		169,134		$	12.70
Outstanding at September 30, 2026		169,134		$	12.70

The Company recognized no compensation expense for stock options during three and nine months ended September 30, 2026 and 2025. As of September 30, 2026 and December 31, 2025, all of the cost related to the outstanding stock options had been recognized.

Restricted Stock Units

The Company has periodically issued restricted stock units to its directors, executive officers and certain employees under the 2018 Incentive Plan. Compensation expense for restricted stock is based upon the grant date fair value of the shares and is recognized over the vesting period of the units. Shares of restricted stock units issued to officers and employees vest in equal annual installments on the first three anniversaries of the grant date. Shares of restricted stock units issued to directors vest 25% on the grant date and 25% on each of the first three anniversaries of the grant date.

A summary of restricted stock activity for the nine months ended September 30, 2026 is presented below:


				Weighted-
				Average Grant-
Nonvested Shares		Shares		Date Fair Value
Nonvested at January 1, 2026		178,509		$	23.99
Granted		91,985			32.66
Vested		(121,187)			23.76
Forfeited		(3,070)			26.33
Nonvested at September 30, 2026		146,237		$	29.58

During the three and nine months ended September 30, 2026 and 2025, the Company recognized compensation expense for restricted stock of $928,000, $939,000, $1.9 million, and $2.0 million respectively. As of September 30, 2026 and December 31, 2025, there was $3.1 million and $3.0 million, respectively, of total unrecognized compensation cost related to nonvested shares granted under the 2018 Incentive Plan. As of September 30, 2026, the cost is expected to be recognized over a weighted-average period of 2.1 years.

Table of Contents

NOTE 14 – EARNINGS PER SHARE

The following table presents the calculation of basic and diluted earnings per common share for the periods indicated:


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(Dollars in thousands, except per share data)		2026			2025			2026			2025
Basic earnings per share
Net Income		$	24,299		$	17,270		$	68,744		$	50,393

Weighted average common shares outstanding			28,781,229			25,537,746			28,753,148			25,462,345

Basic earnings per common share		$	0.84		$	0.68		$	2.39		$	1.98

Diluted earnings per share
Net Income		$	24,299		$	17,270		$	68,744		$	50,393

Weighted average common shares outstanding for basic earnings per common share			28,781,229			25,537,746			28,753,148			25,462,345
Add: Dilutive effects of restricted stock and options			255,935			273,676			249,569			273,343

Average shares and dilutive potential common shares			29,037,164			25,811,422			29,002,717			25,735,688

Diluted earnings per common share		$	0.84		$	0.67		$	2.37		$	1.96

There were no stock options or restricted stock excluded from the computation of diluted earnings per common share since they were antidilutive for the three and nine months ended September 30, 2026 and 2025.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The purpose of this discussion and analysis is to focus on significant changes in the financial condition of MetroCity Bankshares, Inc. and our wholly owned subsidiary, Metro City Bank, from December 31, 2025 through September 30, 2026 and on our results of operations for the three and nine months ended September 30, 2026 and 2025. This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2025 included in our Annual Report on Form 10-K, and information presented elsewhere in this Quarterly Report on Form 10-Q, particularly the unaudited consolidated financial statements and related notes appearing in Item 1.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements reflect our current views with respect to, among other things, future events, and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “strive,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors discussed elsewhere in this quarterly report and the following:

●

general economic and business conditions in our local markets, including conditions affecting employment levels, interest rates, inflation, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), a sustained increase in commodity prices, slowdowns in economic growth, the threat of recession, volatile equity capital markets, property and casualty insurance costs, collateral values, customer income, creditworthiness and confidence, spending and savings that may affect customer bankruptcies, defaults, charge-offs and deposit activity; and the impact of the foregoing on customer and client behavior (including the velocity and levels of deposit withdrawals and loan repayment);

●

changes in the interest rate environment (including changes to the federal funds rate and the impact on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities and market fluctuations, and interest rate sensitive assets and liabilities), and competition in our markets may result in increased funding costs or reduced earning asset yields, thus reducing our margins and net interest income;

●

uncertainties surrounding geopolitical events, trade policy, taxation policy, and monetary policy which continue to impact the outlook for future economic growth, including U.S. imposition of tariffs and consideration of responsive actions by these nations or the expansion of import fees and tariffs among a larger group of nations, which is bringing greater ambiguity to the outlook for future economic growth;

●

adverse developments or actual or perceived instability, in the banking industry and the impact of such developments on customer confidence, liquidity and regulatory responses to these developments (including increases in the cost of our deposit insurance assessments and increased regulatory scrutiny), our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding;

Table of Contents

●

our ability to comply with applicable capital and liquidity requirements, including our ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets;

●

the risk that a future economic downturn and contraction could have a material adverse effect on our capital, financial condition, credit quality, results of operations and future growth, including the risk that the strength of the current economic environment could be weakened by the continued impact of prolonged elevated interest rates and inflation;

●

factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our borrowers and the success of various projects that we finance;

●

concentration of our loan portfolio in real estate loans;

●

changes in the prices, values, and sales volumes of commercial and residential real estate, especially as they relate to the value of collateral supporting the Company’s loans;

●

weakness in the real estate market, including the secondary residential mortgage market, which can affect, among other things, the value of collateral securing mortgage loans, mortgage loan originations and delinquencies, profits on sales of mortgage loans, and the value of mortgage servicing rights;

●

credit and lending risks associated with our construction and development, commercial real estate, commercial and industrial, residential real estate, and SBA loan portfolios;

●

negative impacts related to our mortgage banking services, including declines in our mortgage originations or profitability due to prolonged elevated interest rates and increased competition and regulation, the Bank’s or third party’s failure to satisfy mortgage servicing obligations, loan modifications, the effects of judicial or regulatory requirements or guidance, and the possibility of the Bank being required to repurchase mortgage loans or indemnify buyers;

●

the impact of prolonged elevated interest rates on our financial projections, models, and guidance;

●

our ability to attract sufficient loans that meet prudent credit standards;

●

our ability to attract and maintain business banking relationships with well-qualified businesses, real estate developers, and investors with proven track records in our market areas;

●

our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses (“ACL”);

●

the adequacy of our reserves (including ACL) and the appropriateness of our methodology for calculating such reserves;

●

our ability to successfully execute our business strategy to achieve profitable growth;

●

the concentration of our business within our geographic areas of operation and to the general Asian American population within our primary market areas;

●

our ability to manage our growth;

●

potential delays or other problems in implementing and executing our growth, expansion and acquisition or divestment strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies;

Table of Contents

●

our ability to increase our operating efficiency;

●

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 that our cost of funding could increase, in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits;

●

inability of our risk management framework (including internal controls) to effectively mitigate credit risk, interest rate risk, liquidity risk, price risk, compliance risk, operational risk (including by virtue of our relationships with third-party business partners, as well as our relationships with third-party vendors and other service providers), strategic risk, reputational risk and other risks inherent to the business of banking;

●

our ability to maintain expenses in line with current projections;

●

the makeup of our asset mix and investments;

●

external economic, political and/or market factors, such as changes in monetary and fiscal policies and laws, including those that impact the value of the U.S. Dollar in relation to the currencies of other advanced and emerging market countries and the money supply, and also including the interest rate policies of the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition;

●

the institution and outcome of litigation and other legal proceedings against us or to which we may become subject to and the potential effect on our reputation;

●

negative publicity and the impact on our reputation; including the speed and scale at which information can spread through social media or digital channels, which could amplify adverse market or customer reactions;

●

the impact of recent and future legislative and regulatory changes and changes to supervisory, examination and enforcement priorities;

●

the potential implementation of a regulatory reform agenda under the current presidential administration that is significantly different than that of the prior administration, impacting rulemaking, supervision, examination, and enforcement priorities of the federal banking agencies;

●

examinations by our regulatory authorities;

●

continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies (including fintech companies), many of which are subject to different regulations than we are;

●

challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;

●

restraints on the ability of the Bank to pay dividends to us, which could limit our liquidity;

●

increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;

●

inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance;

●

changes in our management personnel or our inability to retain, motivate and hire qualified management personnel;

Table of Contents

●

the dependence of our operating model on our ability to attract and retain experienced and talented bankers in each of our markets, which may be impacted as a result of labor shortages;

●

our ability to identify and address cyber-security risks, fraud, and systems errors, including the impact on our reputation and the costs and effects required to address such risks, fraud, and systems errors;

●

disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems, which may be exacerbated by the continued development and implementation of generative artificial intelligence, including risks arising from reliance on third-party AI tools, model limitations, data integrity issues or regulatory uncertainty, and the cost of defending against them and any reputational or other financial risks following such a cybersecurity incident;

●

our business relationships with, and reliance upon, third parties that have strategic partnerships with us or that provide key components of our business infrastructure, including the costs of services and products provided to us by third parties, and disruptions in service, security breaches, financial difficulties with or other adverse events affecting a third-party vendor or business relationship;

●

an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies;

●

fraudulent and negligent acts by our clients, employees or vendors and our ability to identify and address such acts;

●

risks related to potential acquisitions;

●

the impact of any claims or legal actions to which we may be subject, including any effect on our reputation;

●

compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale, and servicing operations;

●

changes in the scope and cost of Federal Deposit Insurance Corporation (“FDIC”) insurance and other coverage;

●

changes in our accounting standards;

●

changes in federal tax law or policy;

●

the effects of war or other conflicts, regime change, civil unrest, acts of terrorism, acts of God, natural disasters, health emergencies, epidemics or pandemics, climate changes, or other catastrophic events that may affect general economic conditions or cause other disruptions and/or increase costs, including, but not limited to, property and casualty and other insurance costs;

●

a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget;

●

action or inaction by the federal government, including as a result of any prolonged government shutdown (including a partial shutdown) or government intervention in the U.S. financial system; and

●

other risks and factors identified in the Company’s 2025 Form 10-K, including those identified under the heading “Risk Factors”, and detailed from time to time in our other filings with the U.S. Securities and Exchange Commission.

Table of Contents

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Quarterly Report on Form 10-Q. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this Quarterly Report on Form 10-Q. In addition, our past results of operations are not necessarily indicative of our future results. You are cautioned not to place undue reliance on these forward looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made. 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 revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law.

Critical Accounting Policies and Estimates

Our accounting and reporting estimates conform with U.S. GAAP and general practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We consider accounting estimates to be critical when (1) other reasonable estimates could be used and/or (2) changes to an estimate from period to period could have a material impact on the presentation of our financial condition, changes in financial condition or results of operations as well as (3) when those estimates require significant and complex assumptions about matters that are highly uncertain. We consider our critical accounting policies to include the allowance for credit losses, servicing assets, fair value of financial instruments and income taxes.

Critical accounting estimates include a high degree of uncertainty in the underlying assumptions. Management bases its estimates on historical experience, current information and other factors deemed relevant. The development, selection and disclosure of our critical accounting estimates are reviewed with the Audit Committee of the Company’s Board of Directors. Actual results could differ from these estimates. For additional information regarding critical accounting policies, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” and Note 1 of our consolidated financial statements as of December 31, 2025 in the Company’s 2025 Form 10-K. There have been no significant changes in the Company’s application of critical accounting policies since December 31, 2025.

Reserve for Credit Losses

A consequence of lending activities is that we may incur credit losses. The amount of such losses will vary depending upon the risk characteristics of the loan portfolio as affected by economic conditions such as rising interest rates and the financial performance of borrowers.

The reserve for credit losses consists of the allowance for credit losses (“ACL”) and the allowance for unfunded commitments. The estimate of expected credit losses under the current expected credit loss (“CECL”) methodology is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for loan-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, we consider forecasts about future economic conditions that are reasonable and supportable. The allowance for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit. This allowance is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur.

Management’s evaluation of the appropriateness of the reserve for credit losses is often the most critical of accounting estimates for a financial institution. Our determination of the amount of the reserve for credit losses is a critical accounting estimate as it requires significant reliance on the credit risk rating we assign to individual borrowers, the use of estimates and significant judgment as to the amount and timing of expected future cash flows, reliance on historical loss rates on homogenous portfolios, consideration of our quantitative and qualitative evaluation of economic factors, and the reliance on our reasonable and supportable forecasts. The reserve for credit losses attributable to each portfolio segment also

Table of Contents

includes an amount for inherent risks not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), changes in underwriting standards, changes in collateral values, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.

See Note 1 and Note 4 of our consolidated financial statements as of December 31, 2025 in the Company’s 2025 Form 10-K and Note 1 and Note 4 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, for additional information on the reserve and allowance for credit losses.

Overview

MetroCity Bankshares, Inc. is a bank holding company headquartered in the Atlanta metropolitan area. We operate through our wholly-owned banking subsidiary, Metro City Bank, a Georgia state-chartered commercial bank that was founded in 2006. We currently operate 27 full-service branch locations and two loan production offices in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas, California, and Virginia. As of September 30, 2026, we had total assets of $4.60 billion, total loans, net, of $3.93 billion, total deposits of $3.56 billion and total shareholders’ equity of $583.9 million.

Table of Contents

We are a full-service commercial bank focused on delivering personalized service in an efficient and reliable manner to the small to medium-sized businesses and individuals in our markets, predominantly Asian-American communities in growing metropolitan markets in the Eastern U.S. and Texas. We offer a suite of loan and deposit products tailored to meet the needs of the businesses and individuals already established in our communities, as well as first generation immigrants who desire to establish and grow their own businesses, purchase a home, or educate their children in the United States. Through our diverse and experienced management team and talented employees, we are able to speak the language of our customers and provide them with services and products in a culturally competent manner.

Selected Financial Data

The following table sets forth unaudited selected financial data for the most recent five quarters and the nine-month periods ended September 30, 2026 and 2025. This data should be read in conjunction with the unaudited consolidated financial statements and accompanying notes included in Item 1 and the information contained in this Item 2.

Table of Contents


	As of or for the Three Months Ended															As of or 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		$	0.25		$	0.25		$	0.25		$	0.83		$	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		29,037,164			28,949,200			29,051,061			26,806,181			25,811,422			29,002,717			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			16.17			17.62			17.83			16.10			16.89			16.25
Dividend payout ratio		34.51			32.55			32.49			35.08			37.23			34.91			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 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 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		17.47			17.15			16.52			15.90			19.93			17.47			19.93

Table of Contents

Tier 1 risk-based capital ratio		17.47		17.15		16.52		15.90		19.93		17.47		19.93
Total risk-based capital ratio		18.36		18.05		17.44		16.84		20.74		18.36		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 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 “Non-GAAP Financial Measures” for more information and for a reconciliation to GAAP.

(2)	Represents noninterest expense divided by total revenue (net interest income and total noninterest income).

Non-GAAP Financial Measures

This Form 10-Q includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes “adjusted return on average shareholders’ equity”, which excludes average accumulated other comprehensive income or loss from average shareholders’’ equity and adds back merger-related expenses, net of tax, to net income and tangible book value per share , which excludes goodwill and core deposit intangibles from shareholders’’ equity and “operating efficiency ratio” which excludes merger-related expenses from noninterest expense. 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.

The following table reconciles the non-GAAP financial measurement for return on average equity, tangible book value per share and operating efficiency ratio to their respective most directly comparable GAAP measurements for the three and nine months ended September 30, 2026 and 2025:


	For the Three Months Ended September 30						For the Nine Months Ended September 30
(Dollars in thousands)	2026			2025			2026			2025
Return on average shareholders' equity reconciliation
Average shareholders’ equity (GAAP)	$	568,112		$	436,619		$	555,567		$	429,035
Less: average accumulated other comprehensive income (loss)		(286)			5,552			(675)			9,099
Adjusted average shareholders’ equity (non-GAAP)	$	568,398		$	431,067		$	556,242		$	419,936

Net income (GAAP)	$	24,299		$	17,270		$	68,744		$	50,393
Add: First IC-merger related expenses (net of tax effect)		85			222			1,535			650
Adjusted net income (non-GAAP)	$	24,384		$	17,492		$	70,279		$	51,043

Return on average shareholders’ equity (GAAP)		16.97	%		15.69	%		16.54	%		15.70	%
Adjusted return on average shareholders' equity (non-GAAP)		17.02			16.10			16.89			16.25

Tangible book value per share reconciliation
Total shareholders' equity (GAAP)	$	583,930		$	445,888		$	583,930		$	445,888
Less: goodwill and core deposit intangibles		67,720			—			67,720			—
Adjusted total shareholders' equity (non-GAAP)	$	516,210		$	445,888		$	516,210		$	445,888

Shares of common stock outstanding		28,781,229			25,537,746			28,781,229			25,537,746

Table of Contents


Book value per share (GAAP)	$	20.29		$	17.46		$	20.29		$	17.46
Tangible book value per share (non-GAAP)		17.94			17.46			17.94			17.46

Efficiency Ratio reconciliation
Efficiency ratio (GAAP)		41.81	%		38.65	%		41.35	%		38.06	%
Impact of First IC-merger related expenses included in noninterest expense		(0.24)			(0.80)			(1.39)			(0.80)
Efficiency ratio-operating (non-GAAP)		41.57	%		37.85	%		39.96	%		37.26	%

Results of Operations

We recorded net income of $24.3 million for the three months ended September 30, 2026 compared to $17.3 million for the three months ended September 30, 2025, an increase of $7.0 million, or 40.7%. This increase was due to an $11.8 million increase in net interest income, and a $2.9 million decrease in income taxes, offset by a $5.4 million increase in noninterest expense, a $471,000 reduction in credit-loss recovery and a $1.8 million decrease in noninterest income.

For the nine months ended September 30, 2026 we recorded net income of $68.7 million compared to $50.4 million for the nine months ended September 30, 2025, an increase of $18.4 million, or 36.4%. This increase was due to a $37.6 million increase in net interest income, and a $1.4 million increase in credit-loss recovery, offset by an $18.9 million increase in noninterest expense, an $871,000 decrease in noninterest income, and an $885,000 increase in income tax expense.

Basic and diluted earnings per common share for the three months ended September 30, 2026 was $0.84 and $0.84, respectively, compared to $0.68 and $0.67 for the basic and diluted earnings per common share for the three months ended September 30, 2025. For the nine months ended September 30, 2026, basic and diluted earnings per common share was $2.39 and $2.37, respectively, compared to $1.98 and $1.96 for the same period in 2025, respectively.

Interest Income

Interest income totaled $69.7 million for the three months ended September 30, 2026, an increase of $15.7 million, or 29.1%, from the three months ended September 30, 2025, primarily due to an increase in the average balance of gross loans of $766.9 million, an increase in the average balance of investments of $44.8 million, and a 33 basis point increase in the loan yield, along with $949,000 in accretion income on purchased credit deteriorated loans from the First IC merger that occurred in the fourth quarter of 2025. The increase in average loans is due to an increase of $607.9 million in average commercial real estate loans, and an increase of $104.7 million in average residential real estate loans.

Interest income totaled $211.1 million for the nine months ended September 30, 2026 compared to $160.6 million for the same period in 2025, an increase of $50.6 million, or 31.5%, primarily due to a 31 basis point increase in the loan yield, along with $3.2 million in accretion income on purchased credit deteriorated loans from the First IC merger that occurred in the fourth quarter of 2025 coupled with an increase in average loan balances of $823.3 million, as well as an increase in the average total investment balance of $87.1 million, offset by a decrease of 57 basis points in the yield on average total investments. The increase in average loans is due to an increase of $588.6 million in average commercial real estate loans, an increase of $31.0 million in average construction and development loans, an increase of $14.2 million in average commercial and industrial loans, and an $189.2 million increase in average residential mortgage loans. As compared to the nine months ended September 30, 2025, the yield on average interest-earning assets increased by 23 basis points to 6.53% from 6.30%.

Interest Expense

Interest expense for the three months ended September 30, 2026 increased $4.0 million, or 17.8%, to $26.2 million compared to interest expense of $22.2 million for the three months ended September 30, 2025, primarily due to a $562.8 million increase in average interest-bearing deposit balances, offset by a $49.6 million decrease in the average borrowings

Table of Contents

balance. Average time deposits and money market deposits increased by $355.3 million and $115.3 million, respectively, and average interest-bearing demand deposits and savings accounts increased by $92.2 million primarily from the First IC merger in the fourth quarter of 2025.

Interest expense totaled $79.0 million for the nine months ended September 30, 2026, an increase of $13.0 million, or 19.7%, compared to the same period in 2025, primarily due to a $611.6 million increase in average interest-bearing deposit balances. Average borrowings outstanding for the nine months ended September 30, 2026 decreased by $6.8 million compared to the same period in 2025.

The Company currently has effective interest rate derivative agreements totaling $650.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Federal Funds Effective Rate. At September 30, 2026, the Company had interest rate swap agreements with aggregate notional amounts of $200.0 million and interest rate cap agreements with aggregate notional amounts of $450.0 million, all designated as cash flow hedges of deposit accounts indexed to the Federal Funds Effective Rate. The Company has determined these hedging relationships to be highly effective since inception. During the three months ended September 30, 2026, we recorded a $1.5 million credit to interest expense from the benefit received on these interest-rate derivatives, compared to a $3.8 million credit during the three months ended September 30, 2025. Based on the Federal Funds Effective Rate as of September 30, 2026 (3.88%), the Company estimates that it will record a credit to interest expense of approximately $680,000 for the remainder of 2026 from the benefit received on these interest rate derivatives, however actual results may vary based on changes in market conditions and hedge performance. See Note 9 of our consolidated financial statements as of September 30, 2026 included elsewhere in this Form 10-Q, for additional information on these interest rate derivatives.

Net Interest Margin

The net interest margin for the three months ended September 30, 2026 increased by 39 basis points to 4.07% from 3.68% for the three months ended September 30, 2025, 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 $3.1 billion. Average earning assets for the three months ended September 30, 2026 increased by $811.7 million from the three months ended September 30, 2025, due to a $766.9 million increase in average loans and a $44.8 million increase in average total investments. Average interest-bearing liabilities for the three months ended September 30, 2026 increased by $513.1 million from the three months ended September 30, 2025, driven by increases in average interest-bearing deposits of $562.8 million offset by a decrease in average borrowings of $49.6 million.

The net interest margin for the nine months ended September 30, 2026 increased by 38 basis points to 4.09% from 3.71% for the nine months ended September 30, 2025, primarily due to a 23 basis point increase in the yield on average interest-earning assets of $4.3 billion, and an 11 basis point decrease in the cost of average interest-bearing liabilities of $3.2 billion. Average earning assets increased by $910.4 million, due to an $87.1 million increase in average total investments and a $823.3 million increase in average loans. Average interest-bearing liabilities increased by $604.8 million, primarily driven by a $611.6 million increase in average interest-bearing deposit balances offset by a decrease in average borrowings of $6.8 million.

Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition, and the shape of the interest rate yield curve. The year-over-year increase in our net interest margin is primarily driven by higher yields on average interest-earning assets and lowere costs of average interest-bearing liablilities.

Table of Contents

Average Balances, Interest and Yields

The following tables present, for the three and nine months ended September 30, 2026 and 2025, information about: (i) weighted average balances, the total dollar amount of interest income from interest-earning assets and the resultant average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates; (iii) net interest income; (iv) the interest rate spread; and (v) the net interest margin.

Table of Contents


		Three Months Ended September 30,
		2026								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⁾		$	254,091		$	2,395		3.74	%	$	219,283		$	2,760		4.99	%
Investment securities			46,919			748		6.32			36,960			268		2.88
Total investments			301,010			3,143		4.14			256,243			3,028		4.69
Construction and development			72,091			1,319		7.26			29,130			613		8.35
Commercial real estate			1,420,660			28,813		8.05			812,759			17,239		8.42
Commercial and industrial			82,879			1,786		8.55			71,655			1,600		8.86
Residential real estate			2,365,761			34,657		5.81			2,261,108			31,480		5.52
Consumer and other			478			9		7.47			327			43		52.17
Gross loans⁽²⁾			3,941,869			66,584		6.70			3,174,979			50,975		6.37
Total earning assets			4,242,879			69,727		6.52			3,431,222			54,003		6.24
Noninterest-earning assets			314,856								193,365
Total assets			4,557,735								3,624,587
Interest-bearing liabilities:
NOW and savings deposits			280,738			1,647		2.33			188,576			1,476		3.11
Money market deposits			1,089,797			8,180		2.98			974,500			6,480		2.64
Time deposits			1,342,018			12,400		3.67			986,719			9,843		3.96
Total interest-bearing deposits			2,712,553			22,227		3.25			2,149,795			17,799		3.28
Borrowings			375,354			3,942		4.17			425,000			4,412		4.12
Total interest-bearing liabilities			3,087,907			26,169		3.36			2,574,795			22,211		3.42
Noninterest-bearing liabilities:
Noninterest-bearing deposits			805,577								538,755
Other noninterest-bearing liabilities			96,139								74,418
Total noninterest-bearing liabilities			901,716								613,173
Shareholders’ equity			568,112								436,619
Total liabilities and shareholders’ equity		$	4,557,735							$	3,624,587
Net interest income					$	43,558							$	31,792
Net interest spread								3.16								2.82
Net interest margin								4.07								3.68

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

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

Table of Contents


		Nine Months Ended September 30,
		2026								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, interest-earning cash accounts, and other miscellaneous earning assets.

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

Table of Contents

Rate/Volume Analysis

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following table sets forth the effects of changing rates and volumes on our net interest income during the periods shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (change in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Changes applicable to both volume and rate have been allocated to volume.


		Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
		Increase (Decrease) Due to Change in:
(Dollars in thousands)		Volume			Yield/Rate			Total Change
Earning assets:
Federal funds sold and other investments⁽¹⁾		$	328		$	(693)		$	(365)
Investment securities			159			321			480
Total investments			487			(372)			115
Construction and development			786			(80)			706
Commercial real estate			12,329			(755)			11,574
Commercial and industrial			242			(56)			186
Residential real estate			1,533			1,644			3,177
Consumer and Other			3			(37)			(34)
Gross loans⁽²⁾			14,893			716			15,609
Total earning assets			15,380			344			15,724
Interest-bearing liabilities:
NOW and savings deposits			541			(370)			171
Money market deposits			865			835			1,700
Time deposits			3,283			(726)			2,557
Total interest-bearing deposits			4,689			(261)			4,428
Borrowings			(521)			51			(470)
Total interest-bearing liabilities			4,168			(210)			3,958
Net interest income		$	11,212		$	554		$	11,766

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

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

Table of Contents


		Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
		Increase (Decrease) Due to Change in:
(Dollars in thousands)		Volume			Yield/Rate			Total Change
Earning assets:
Federal funds sold and other investments⁽¹⁾		$	1,953		$	(2,063)		$	(110)
Investment securities			796			994			1,790
Total investments			2,749			(1,069)			1,680
Construction and development			1,698			(200)			1,498
Commercial real estate			37,341			(234)			37,107
Commercial and industrial			912			(120)			792
Residential real estate			8,013			1,573			9,586
Consumer and Other			18			(130)			(112)
Gross loans⁽²⁾			47,982			889			48,871
Total earning assets			50,731			(180)			50,551
Interest-bearing liabilities:
NOW and savings deposits			1,873			(612)			1,261
Money market deposits			2,558			1,835			4,393
Time deposits			10,530			(3,012)			7,518
Total interest-bearing deposits			14,961			(1,789)			13,172
Borrowings			(210)			27			(183)
Total interest-bearing liabilities			14,751			(1,762)			12,989
Net interest income		$	35,980		$	1,582		$	37,562

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

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

Provision for Credit Losses

The provision for credit losses reflects our internal calculation and judgment of the appropriate amount of the allowance for credit losses. We maintain the allowance for credit losses at levels we believe are appropriate to cover our estimate of expected credit losses over the life of loans in the portfolio as of the end of the reporting period. The allowance for credit losses is determined through detailed quarterly analyses of our loan portfolio. The allowance for credit losses is based on our loss experience, changes in the economic environment, reasonable and supportable forecasts, as well as an ongoing assessment of credit quality and environmental factors not reflected in historical loss rates. Additional qualitative factors that are considered in determining the amount of the allowance for credit losses are concentrations of credit risk (geographic, large borrower, and industry), changes in underwriting standards, changes in collateral value, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.

We recorded a recovery for credit losses of $72,000 during the three months ended September 30, 2026 compared to a recovery for credit losses of $543,000 recorded during the three months ended September 30, 2025. We recorded a recovery for credit losses of $1.7 million during the nine months ended September 30, 2026 compared to a recovery for credit losses of $279,000 recorded during the nine months ended September 30, 2025. The recovery for credit losses recorded during the three and nine months ended September 30, 2026 was primarily driven by lower loan balances. Our ACL as a percentage of gross loans for the periods ended September 30, 2026, December 31, 2025 and September 30, 2025 was 0.65%, 0.68% and 0.60%, respectively. Our ACL as a percentage of gross loans is relatively lower than that of our peers due to our high percentage of residential mortgage loans, which tend to have lower allowance for credit loss ratios compared to other commercial or consumer loans due to their low LTVs.

See the section captioned “Allowance for Credit Losses” elsewhere in this document for further analysis of our provision for credit losses.

Table of Contents

Noninterest Income

Noninterest income for the three months ended September 30, 2026 was $4.4 million, a decrease of $1.8 million, or 29.0%, compared to $6.2 million for the three months ended September 30, 2025. Noninterest income for the nine months ended September 30, 2026 was $16.5 million, a decrease of $871,000, or 5.0%, compared to $17.4 million for the nine months ended September 30, 2025.

The following table sets forth the major components of our noninterest income for the three and nine months ended September 30, 2026 and 2025.


	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2026		2025		$ Change		% Change		2026		2025		$ Change		% Change
Noninterest income:
Service charges on deposit accounts	$	929	$	551	$	378	68.6	%	$	2,735	$	1,556	$	1,179	75.8	%
Other service charges, commissions and fees		1,537		2,376		(839)	(35.3)			4,546		5,592		(1,046)	(18.7)
Gain on sale of assets		22		—		22	100.0			22		—		22	100.0
Gain on sale of residential mortgage loans		—		166		(166)	(100.0)			—		1,144		(1,144)	(100.0)
Mortgage servicing income, net		234		516		(282)	(54.7)			811		1,915		(1,104)	(57.7)
Gain on sale of SBA loans		685		558		127	22.8			3,266		1,859		1,407	75.7
SBA servicing income, net		863		1,203		(340)	(28.3)			3,496		2,758		738	26.8
Other income		114		808		(694)	(85.9)			1,620		2,543		(923)	(36.3)
Total noninterest income	$	4,384	$	6,178	$	(1,794)	(29.0)	%	$	16,496	$	17,367	$	(871)	(5.0)	%

Service charges on deposit accounts increased $378,000, or 68.6%, to $929,000 for the three months ended September 30, 2026 compared to $551,000 for the three months ended September 30, 2025. Service charges on deposit accounts were $2.7 million for the nine months ended September 30, 2026 compared to $1.6 million for the same period in 2025, an increase of $1.2 million, or 75.8%. These increases were primarily attributable to higher service charges on business checking accounts, analysis fees, overdraft fees, and charge back fees as a result of the First IC acquisition that occurred in the fourth quarter of 2025.

Table of Contents

Other service charges, commissions, and fees decreased $839,000, or 35.3%, to $1.5 million for the three months ended September 30, 2026 compared to $2.4 million for the three months ended September 30, 2025. Other service charges, commissions, and fees decreased $1.0 million or 18.7%, to $4.5 million for the nine months ended September 30, 2026 compared to $5.6 million for the nine months ended September 30, 2025. These decreases were attributable to lower origination and processing fees earned from our origination of residential mortgage loans. Mortgage loan originations totaled $85.1 million and $262.4 million during the three and nine months ended September 30, 2026, compared to $168.6 million and $352.8 million during the same periods in 2025.

Gain on sale of residential mortgage loans totaled $0 for the three and nine months ended September 30, 2026. Gain on sale of residential mortgage loans totaled $166,000 and $1.1 million for the three and nine months ended September 30, 2025, as we sold $18.2 million and $112.6 million in residential mortgage loans during these periods with an average premium of 1.06% and 1.08%, respectively.

Gain on sale of SBA loans totaled $685,000 for the three months ended September 30, 2026 compared to $558,000 for the three months ended September 30, 2025. We sold $9.7 million in SBA loans during the three months ended September 30, 2026 with average premiums of 8.16%. We sold $13.4 million in SBA loans during the three months ended September 30, 2025 with average premiums of 6.13%. Gain on sale of SBA loans totaled $3.3 million for the nine months ended September 30, 2026 compared to $1.9 million for the same period in 2025. We sold $56.5 million in SBA loans during the nine months ended September 30, 2026 with average premiums of 8.02% compared to $50.7 million sold during the same period in 2025 with average premiums of 5.89%.

Mortgage loan servicing income, net of amortization, decreased by $282,000, or 54.7%, to $234,000 during the three months ended September 30, 2026 compared to $516,000 for the three months ended September 30, 2025. Mortgage loan servicing income, net of amortization, decreased by $1.1 million, or 57.7%, to $811,000 for the nine months ended September 30, 2026 compared to $1.9 million for the nine months ended September 30, 2025. The changes in mortgage loan servicing income were primarily due to decreases in servicing fees, increases in mortgage servicing amortization, and decreases in capitalized mortgage servicing assets. Our total residential mortgage loan servicing portfolio was $429.5 million at September 30, 2026 compared to $538.7 million at September 30, 2025.

SBA servicing income decreased by $340,000, or 28.3%, to $863,000 for the three months ended September 30, 2026 compared to $1.2 million for the three months ended September 30, 2025. SBA servicing income increased $738,000, or 26.8% to $3.5 million for the nine months ended September 30, 2026, compared to $2.8 million for the same period of 2025. Our total SBA and USDA loan servicing portfolio was $676.2 million as of September 30, 2026 compared to $460.7 million as of September 30, 2025. Included in SBA servicing income for the three and nine months ended September 30, 2026 was $1.1 million and $3.1 million in SBA servicing fees, respectively, compared to $1.0 million and $3.0 million, for the three and nine months ended September 30, 2025, respectively. Our SBA servicing rights are carried at fair value and the inputs used to calculate fair value change from period to period. During the three and nine months ended September 30, 2026, fair value decreased by $218,000 and increased by $361,000 on our SBA servicing rights, respectively compared to an increase of $165,000 and a decrease of $286,000 during the same periods in 2025, respectively.

Other noninterest income decreased by $694,000, or 85.9%, to $114,000 for the three months ended September 30, 2026 compared to $808,000 for the three months ended September 30, 2025. Other noninterest income was $1.6 million for the nine months ended September 30, 2026 compared to $2.5 million for the same period in 2025, a decrease of $923,000, or 36.3%. Also included in other noninterest income are fair value gains/losses on our equity securities, which totaled $743,000 (loss) and $908,000 (loss) for the three and nine months ended September 30, 2026, respectively, compared to $124,000 (gain) and $305,000 (gain) for the three and nine months ended September 30, 2025. 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.

Table of Contents

Noninterest Expense

Noninterest expense for the three months ended September 30, 2026 was $20.0 million compared to $14.7 million for the three months ended September 30, 2025, an increase of $5.4 million, or 36.6%.

Noninterest expense for the nine months ended September 30, 2026 was $61.4 million compared to $42.6 million for the nine months ended September 30, 2025, an increase of $18.9 million or 44.3%.

The following table sets forth the major components of our noninterest expense for the three and nine months ended September 30, 2026 and 2025.


	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2026		2025		$ Change		% Change		2026		2025		$ Change		% Change
Noninterest Expense:
Salaries and employee benefits	$	11,749	$	8,953	$	2,796	31.2	%	$	34,594	$	26,000	$	8,594	33.1	%
Occupancy and equipment		2,427		1,410		1,017	72.1			7,189		4,207		2,982	70.9
Data processing		636		394		242	61.4			1,853		1,068		785	73.5
Advertising		310		161		149	92.5			711		477		234	49.1
Merger-related expenses		117		301		(184)	(61.1)			2,063		896		1,167	130.2
Other expenses		4,805		3,455		1,350	39.1			15,029		9,938		5,091	51.2
Total noninterest expense	$	20,044	$	14,674	$	5,370	36.6	%	$	61,439	$	42,586	$	18,853	44.3	%

Salaries and employee benefits expense for the three months ended September 30, 2026 was $11.7 million compared to $9.0 million for the three months ended September 30, 2025, an increase of $2.8 million, or 31.2%. Salaries and employee benefits expense for the nine months ended September 30, 2026 was $34.6 million compared to $26.0 million for the nine months ended September 30, 2025, an increase of $8.6 million, or 33.1%. These increases were primarily attributable to higher employee salaries and incentives, and employee insurance as a result of the First IC acquisition that occurred in fourth quarter of 2025.

Occupancy and equipment expense for the three months ended September 30, 2026 was $2.4 million, an increase of $1.0 million, or 72.1%, compared to the three months ended September 30, 2025. Occupancy and equipment expense for the nine months ended September 30, 2026 was $7.2 million, an increase of $3.0 million, or 70.9%, compared to the nine months ended September 30, 2025. These increases were primarily due to higher property taxes, utilities, maintenance expense, rent expense, and depreciation expense from the acquisition of First IC that occurred in fourth quarter of 2025.

Data processing expense for the three months ended September 30, 2026 was $636,000 compared to $394,000 for the three months ended September 30, 2025, an increase of $242,000, or 61.4%. Data processing expense for the nine months ended September 30, 2026 was $1.9 million, an increase of $785,000, or 73.5%, compared to the nine months ended September 30, 2025. These increases were primarily due to the continued growth in our loans and deposits from the acquisition of First IC that occurred in fourth quarter of 2025, as well as enhancements to our existing systems.

Advertising expenses for the three and nine months ended September 30, 2026 was $310,000 and $711,000, compared to $161,000 and $477,000 for the three and nine months ended September 30, 2025.

Merger-related expenses for the three months ended September 30, 2026 was $117,000 compared to $301,000 for the three months ended September 30, 2025. Merger-related expenses for the nine months ended September 30, 2026 was $2.1 million compared to $896,000 for the nine months ended September 30, 2025. The increase for the nine months is related to the acquisition of First IC being completed in the fourth quarter of 2025 with legal fees, integration fees, and conversion expenses in the first quarter of 2026.

Other expenses for the three months ended September 30, 2026 were $4.8 million compared to $3.5 million for the three months ended September 30, 2025, an increase of $1.4 million, or 39.1%. Other expenses for the nine months ended September 30, 2026 were $15.0 million compared to $9.9 million for the nine months ended September 30, 2025 an

Table of Contents

increase of $5.1 million, or 51.2%. This increase was primarily due to core deposit amortization, additional banking costs from First IC merger, FDIC insurance premiums, security expenses, and loan-related expenses.

Income Tax Expense

Income tax expense for the three months ended September 30, 2026 and 2025 was $3.7 million and $6.6 million, respectively. The Company’s effective tax rates were 13.1% and 27.6% for the three months ended September 30, 2026 and 2025, respectively.

Income tax expense for the nine months ended September 30, 2026 and 2025 was $20.1 million and $19.2 million, respectively. The Company’s effective tax rates were 22.6% and 27.6% for the nine months ended September 30, 2026 and 2025, respectively.

The decrease in the effective income tax rate for the quarter was primarily driven by the utilization of tax credits during the current period.

Financial Condition

Total assets decreased $170.6 million, or 3.6%, to $4.60 billion at September 30, 2026 as compared to $4.77 billion at December 31, 2025. The decrease in total assets was primarily attributable to decreases of $66.7 million in cash and cash equivalents, $24.0 million in securities, $95.4 million in loans, net, $9.7 million in loans held for sale, and $6.5 million in Federal Home Loan Bank stock, offset by a $35.2 million increase in other assets, primarily related to an increase in income taxes receivable resulting from the utilization of tax credits during the quarter.

Our investment securities portfolio made up 0.89% of our total assets at September 30, 2026 compared to 1.38% at December 31, 2025.

Loans

Gross loans held for investment decreased $98.1 million, or 2.4%, to $3.98 billion as of September 30, 2026 as compared to $4.08 billion as of December 31, 2025. Our loan decrease during the nine months ended September 30, 2026 was comprised of a decrease of $81.2 million, or 5.2%, in commercial real estate loans, a decrease of $14.6 million, or 15.2% in commercial and industrial loans, a decrease of $41.8 million, or 1.8%, in residential real estate loans, offset by an increase of $39.9 million, or 95.4%, in construction and development loans. We had loans held for sale of $0 as of September 30, 2026 compared to $9.7 million in loans held for sale as of December 31, 2025.

The following table presents the ending balance of each major category in our loan portfolio held for investment at the dates indicated.


	September 30, 2026					December 31, 2025
(Dollars in thousands)	Amount			% of Total		Amount			% of Total
Construction and development	$	81,675		2.1	%	$	41,796		1.0	%
Commercial real estate		1,479,506		37.2			1,560,728		38.3	%
Commercial and industrial		81,729		2.1			96,360		2.4	%
Residential real estate		2,336,463		58.7			2,378,311		58.3	%
Consumer and other		340		—			627		—	%
Gross loans	$	3,979,713		100.0		$	4,077,822		100.0	%
Unearned income		(9,213)					(6,621)
Loan Discounts		(16,611)					(19,804)
Allowance for credit losses		(25,753)					(27,843)
Total loans, net	$	3,928,136				$	4,023,554

Table of Contents

SBA and USDA Loan Servicing

As of September 30, 2026 and December 31, 2025, we serviced $676.2 million and $685.5 million, respectively, in SBA and USDA loans for others. We carried a servicing asset of $11.0 million and $10.6 million at September 30, 2026 and December 31, 2025, respectively. See Note 5 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, for additional information on the activity for SBA and USDA loan servicing rights for the three and nine months ended September 30, 2026 and 2025.

Residential Mortgage Loan Servicing

As of September 30, 2026, we serviced $429.5 million in residential mortgage loans for others compared to $702.6 million as of December 31, 2025. We carried a servicing asset, net of amortization, of $1.1 million and $1.7 million at September 30, 2026 and December 31, 2025, respectively. Amortization relating to the mortgage loan servicing asset was $160,000 and $512,000 for the three and nine months ended September 30, 2026 compared to $159,000 and $414,000 for the three and nine months ended September 30, 2025, respectively. During the three and nine months ended September 30, 2026 we recorded no fair value adjustments compared to fair value impairment recoveries of $19,000 and $4,000, on our mortgage servicing asset for the three and nine months ended September 30, 2025. See Note 6 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, for additional information on the activity for mortgage loan servicing rights for the three and nine months ended September 30, 2026 and 2025.

Asset Quality

Nonperforming Loans

Asset quality remained strong during the third quarter of 2026 as our nonperforming loans to total loans remained low at 0.41% as of September 30, 2026. Nonperforming loans were $16.1 million at September 30, 2026 compared to $25.2 million at December 31, 2025. The decrease from December 31, 2025 to September 30, 2026 was attributable to a $10.2 million decrease in nonaccrual loans, offset by an increase in loans past due 90 days or more and still accruing related to one $1.1 million loan, which is well secured and in the process of collection. We did not recognize any interest income on nonaccrual loans during the three and nine months ended September 30, 2026 and 2025.

The following table sets forth the allocation of our nonperforming assets among our different asset categories as of the dates indicated. Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing interest. Nonperforming assets consist of nonperforming loans plus other real estate owned. Other real estate owned includes branches that are no longer in service and are held for sale. As of September 30, 2026, Nonaccrual loans at September 30, 2026 comprised of $3.3 million of commercial real estate loans, $1.0 million of commercial and industrial loans and $10.8 million of residential real estate loans. Nonaccrual loans at December 31, 2025 comprised of $14.8 million of commercial real estate loans, $1.3 million of commercial and industrial loans, and $9.1 million of residential real estate loans. Other real estate owned includes $3.4 million of branches taken out of service.


(Dollars in thousands)	September 30, 2026			December 31, 2025
Nonaccrual loans	$	15,042		$	25,213
Past due loans 90 days or more and still accruing		1,076			—
Total nonperforming loans		16,118			25,213
Other real estate owned		4,514			208
Total nonperforming assets	$	20,632		$	25,421
Nonperforming loans to gross loans		0.41	%		0.62	%
Nonperforming assets to total assets		0.45	%		0.53	%
Allowance for credit losses to nonperforming loans		159.78	%		110.43	%

Table of Contents

Allowance for Credit Losses

The allowance for credit losses was $25.8 million at September 30, 2026 compared to $27.8 million at December 31, 2025, a decrease of $2.0 million. The decrease primarily reflected lower reserves resulting from reduced loan balances and changes in reserves on individually analyzed loans.

We maintain a reserve for credit losses that consists of two components, the allowance for credit losses and the allowance for unfunded commitments. The allowance for credit losses provides for the risk of credit losses expected in our loan portfolio and is based on loss estimates derived from a comprehensive quarterly evaluation. The evaluation reflects analyses of individual borrowers for impairment coupled with analysis of historical loss experience in various loan pools that have been grouped based on similar risk characteristics, supplemented as necessary by credit judgment that considers observable trends, conditions, reasonable and supportable forecasts, and other relevant environmental and economic factors. The level of the allowance for credit losses is adjusted by recording an expense or credit through the provision for credit losses. The level of the allowance for unfunded commitments is adjusted by recording an expense or credit in provision for credit losses. The allowance for unfunded commitments had a balance of $539,000 as of September 30, 2026 compared to $233,000 as of September 30, 2025.

Loans that do not share risk characteristics are evaluated on an individually for expected credit losses. Collateral-dependent loans are loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The Company measures expected credit losses on collateral-dependent loans using the fair value of the collateral as of the reporting date. The Company also uses the collateral’s fair value to measure expected credit losses whenever foreclosure is probable. When repayment depends on the sale of the collateral, the allowance for credit losses is measured as the amount by which the loan’s amortized cost basis exceeds the collateral’s fair value, less estimated costs to sell. When repayment depends only on the operation of the collateral, the allowance for credit losses is measured as the amount by which the loan’s amortized cost basis exceeds the collateral’s fair value, without a deduction for estimated costs to sell. Any portion of a loan deemed uncollectible is charged off against the allowance for credit losses when that determination is made.

The impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics, and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the provision for credit losses, and therefore, greater volatility to our reported earnings. See Note 1 and Note 4 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, and in the Company’s 2025 Form 10-K, for additional information on the allowance for credit losses and the allowance for unfunded commitments.

It is the policy of management to maintain the allowance for credit losses at a level adequate for risks inherent in the loan portfolio. The FDIC and GA DBF also review the allowance for credit losses as an integral part of their examination process. Based on information currently available, management believes that our allowance for credit losses is adequate. However, the loan portfolio can be adversely affected if economic conditions and the real estate market in our market areas were to weaken. The effect of such events, although uncertain at this time, could result in an increase in the level of nonperforming loans and increased credit losses, which could adversely affect our future growth and profitability. No assurance of the ultimate level of credit losses can be given with any certainty.

Table of Contents

Analysis of the Allowance for Credit Losses. The following table provides an analysis of the allowance for credit losses, provision for credit losses and net charge-offs for the periods presented below:


	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2026			2025			2026			2025
Balance, beginning of period	$	25,818		$	18,748		$	27,843		$	18,744
Charge-offs:
Construction and development		—			—			—			—
Commercial real estate		—			110			190			173
Commercial and industrial		—			121			92			294
Residential real estate		—			—			—			—
Consumer and other		—			—			—			—
Total charge-offs		—			231			282			467
Recoveries:
Construction and development		—			—			—			—
Commercial real estate		8			—			109			2
Commercial and industrial		3			4			9			9
Residential real estate		—			—			—			—
Consumer and other		—			—			—			—
Total recoveries		11			4			118			11
Net (recoveries)/charge-offs		(11)			227			164			456
Provision for loan losses		(76)			(581)			(1,926)			(348)
Balance, end of period	$	25,753		$	17,940		$	25,753		$	17,940
Total loans at end of period⁽¹⁾	$	3,979,713		$	2,973,915		$	3,979,713		$	2,973,915
Average loans⁽¹⁾		3,941,194			3,124,291			3,990,365			3,135,858
Net charge-offs to average loans		0.00	%		0.03	%		0.00	%		0.02	%
Allowance for credit losses to total loans		0.65	%		0.60	%		0.65	%		0.60	%

(1)	Excludes loans held for sale.

Management believes the allowance for credit losses is adequate to provide for losses expected in the loan portfolio as of September 30, 2026.

Deposits

Deposits were $3.56 billion at September 30, 2026, a decrease of $84.0 million, compared to total deposits of $3.65 billion at December 31, 2025, and an increase of $869.0 million, or 32.3%, compared to total deposits of $2.69 billion at September 30, 2025. The decrease in total deposits at September 30, 2026 compared to December 31, 2025 was due to a $65.3 million decrease in brokered deposits, a $97.8 million decrease in time deposits, and a $24.0 million decrease in NOW and savings accounts, offset by a $55.7 million increase in money market accounts and a $47.5 million increase in noninterest-bearing deposits. The decrease in deposits was primarily attributable to the intentional reduction of higher-cost deposits as part of the Company's ongoing funding strategy. Management elected not to retain certain higher-rate deposit relationships as they matured or repriced in an effort to reduce funding costs and optimize the deposit mix. Noninterest-bearing deposits were $828.3 million at September 30, 2026, compared to $780.8 million at December 31, 2025 and $544.4 million at September 30, 2025. Noninterest-bearing deposits constituted 23.3% of total deposits at September 30, 2026, compared to 21.4% at December 31, 2025 and 20.2% at September 30, 2025. Interest-bearing deposits were $2.73 billion at September 30, 2026, compared to $2.87 billion at December 31, 2025 and $2.15 billion at September 30, 2025. Interest-bearing deposits constituted 76.7% of total deposits at September 30, 2026, compared to 78.6% at December 31, 2025 and 79.8% at September 30, 2025.

As of September 30, 2026 and December 31, 2025, the Company had estimated uninsured deposits of $1.23 billion and $1.09 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank’s regulatory reporting. Uninsured deposits were 34.7% of total deposits at September 30, 2026, compared to 29.6% at December 31, 2025. As of September 30, 2026, we had a $1.66 billion available borrowing capacity consisting

Table of Contents

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.

We had $682.5 million of brokered deposits, or 19.2% of total deposits, at September 30, 2026 compared to $747.8 million, or 20.5% of total deposits, at December 31, 2025. The decline in brokered deposits primarily reflected the Company's decision to allow higher-cost brokered deposits to mature without replacement, consistent with its efforts to reduce funding costs. We use brokered deposits, subject to certain limitations and requirements, as a source of funding to support our asset growth and augment the deposits generated from our branch network, which are our principal source of funding. Our level of brokered deposits varies from time to time depending on competitive interest rate conditions and other factors and tends to increase as a percentage of total deposits when the brokered deposits are less costly than issuing internet certificates of deposit or borrowing from the Federal Home Loan Bank.

We use interest rate swap and cap agreements to hedge our deposit accounts that are indexed to the Federal Funds Effective Rate. These swap and cap agreements are designated as cash flow hedges. As of September 30, 2026, the total amount of deposits tied to the Federal Funds Effective Rate was $1.12 billion. See Note 9 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, for additional information.

The following tables summarize our average deposit balances and weighted average rates for the three and nine months ended September 30, 2026 and 2025.


	Three months ended September 30,
	2026					2025
	Average		Weighted			Average		Weighted
(Dollars in thousands)	Balance		Average Rate			Balance		Average Rate
Noninterest-bearing demand	$	805,577		—	%	$	538,755	—	%
Interest-bearing demand deposits		268,815		2.42			84,207	1.94
Savings and money market deposits		523,095		2.53			399,795	3.66
Brokered deposits		578,625		3.38			679,074	2.25
Time deposits		1,342,018		3.67			986,719	3.96
Total interest-bearing deposits		2,712,553		3.25			2,149,795	3.28
Total deposits	$	3,518,130		2.51	%	$	2,688,550	2.63	%


	Nine months ended September 30,
	2026					2025
	Average		Weighted			Average		Weighted
(Dollars in thousands)	Balance		Average Rate			Balance		Average Rate
Noninterest-bearing demand	$	786,914		—	%	$	529,075	—	%
Interest-bearing demand deposits		265,186		2.40			107,346	2.21
Savings and money market deposits		498,124		2.11			379,849	3.66
Brokered deposits		639,609		3.38			687,085	2.13
Time deposits		1,369,594		3.68			986,618	4.08
Total interest-bearing deposits		2,772,513		3.20			2,160,898	3.30
Total deposits	$	3,559,427		2.50	%	$	2,689,973	2.65	%

Table of Contents

The weighted average rates shown in the tables above are inclusive of the benefit received from the interest rate derivatives that hedge our deposit accounts tied to the Federal Funds Effective Rate. For the three and nine months ended September 30, 2026, we recorded a credit to interest expense of $1.5 million and $5.2 million from the benefit received on these interest rate derivatives, respectively compared to a credit to interest expense of $3.8 million and $12.2 million recorded during the three and nine months ended September 30, 2025, respectively. These benefits resulted in reductions of 22 and 25 basis points in the weighted average rate on interest-bearing deposits for the three and nine months ended September 30, 2026, respectively, compared to reductions of 70 and 75 basis points reduction for the three and nine months ended September 30, 2025, respectively.

Borrowed Funds

Other than deposits, we also utilized FHLB advances as a supplementary funding source to finance our operations. The advances from the FHLB are collateralized by residential real estate loans. At September 30, 2026 and December 31, 2025, we had maximum borrowing capacity from the FHLB of $1.34 billion and $1.09 billion, respectively. At September 30, 2026 and December 31, 2025, we had $375.0 million and $510.0 million, respectively, of outstanding advances from the FHLB.

In addition to our advances with the FHLB, we maintain federal funds agreements with our correspondent banks. Our available borrowings under these agreements were $67.5 million and $52.5 million at September 30, 2026 and December 31, 2025. We did not have any advances outstanding under these agreements as of September 30, 2026 and December 31, 2025. We also have access to the Federal Reserve’s discount window in the amount of $629.5 million and $600.4 million at September 30, 2026 and December 31, 2025, respectively. No discount window borrowings were outstanding as of September 30, 2026 and December 31, 2025. We also maintain relationships in the capital markets with brokers to issue certificates of deposit and money market accounts, if necessary.

Liquidity and Capital Resources

Liquidity

Liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers, while at the same time meeting our operating, capital, and strategic cash flow needs, all at a reasonable cost. We continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements. We manage our liquidity position to meet the daily cash flow needs of customers, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders.

Our liquidity position is supported by management of liquid assets and access to alternative sources of funds. Our liquid assets include cash, interest-bearing deposits in correspondent banks, federal funds sold, and fair value of unpledged investment securities. Other available sources of liquidity include wholesale/brokered deposits, and additional borrowings from correspondent banks, FHLB advances, and the Federal Reserve discount window.

Our short-term and long-term liquidity requirements are primarily met through cash flow from operations, redeployment of prepaying and maturing balances in our loan and investment portfolios and increases in customer deposits. Other alternative sources of funds will supplement these primary sources to the extent necessary to meet additional liquidity requirements on either a short-term or long-term basis.

As part of our liquidity management strategy, we open federal funds lines with our correspondent banks. As of September 30, 2026 and December 31, 2025, we had $67.5 million and $52.5 million, respectively, of unsecured federal funds lines with no outstanding advances. In addition, the Company had Federal Reserve Discount Window funds available of approximately $629.5 million and $600.4 million at September 30, 2026 and December 31, 2025, respectively. The FRB discount window line is collateralized by a pool of construction and development, commercial real estate, and commercial and industrial loans with carrying balances totaling $806.8 million as of September 30, 2026, as well as all the Company’s municipal and mortgage-backed securities. There were no outstanding borrowings on this line as of September 30, 2026 and December 31, 2025.

Table of Contents

At September 30, 2026 and December 31, 2025, we had $375.0 million and $510.0 million, respectively, of outstanding advances from the FHLB. Based on the values of loans pledged as collateral, we had $964.7 million and $577.9 million of additional borrowing availability with the FHLB as of September 30, 2026 and December 31, 2025, respectively. We also maintain relationships in the capital markets with brokers to issue certificates of deposit and money market accounts, if necessary.

We anticipate that our cash requirements will be funded through available cash and cash equivalents, cash flow from operations, core deposits, available borrowing capacity and, if necessary, access to wholesale funding and the capital markets.

Capital Requirements

The Company and the Bank are required under federal law to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets. The required capital ratios are minimums, and the federal banking agencies may determine that a banking organization, based on its size, complexity or risk profile, must maintain a higher level of capital in order to operate in a safe and sound manner. Risks such as concentration of credit risks and the risk arising from non-traditional activities, as well as the institution’s exposure to a decline in the economic value of its capital due to changes in interest rates, and an institution’s ability to manage those risks are important factors that are to be taken into account by the federal banking agencies in assessing an institution’s overall capital adequacy.

The table below summarizes the capital requirements applicable to the Company and the Bank and the thresholds to be considered “well-capitalized” from a regulatory perspective, as well as the Company’s and the Bank’s capital ratios as of September 30, 2026 and December 31, 2025. The Bank exceeded all regulatory capital requirements and was considered to be “well-capitalized” as of September 30, 2026 and December 31, 2025. As of December 31, 2025, the FDIC categorized the Bank as well-capitalized under the prompt corrective action framework. There have been no conditions or events since December 31, 2025 that management believes would change this classification. While the Company believes that it has sufficient capital to withstand an extended economic recession, its reported and regulatory capital ratios could be adversely impacted in future periods.


					Regulatory
					Capital Ratio
					Requirements		Minimum
					including		Requirement
					fully phased-		for “Well
					in Capital		Capitalized”
					Conservation		Depository
	September 30, 2026		December 31, 2025		Buffer		Institution
Total capital (to risk-weighted assets)
Consolidated	18.36	%	16.85	%	10.50	%	N/A
Bank	18.35	%	16.77	%	10.50		10.00	%
Tier 1 capital (to risk-weighted assets)
Consolidated	17.47	%	15.91	%	8.50	%	N/A
Bank	17.46	%	15.83	%	8.50		8.00	%
CET1 capital (to risk-weighted assets)
Consolidated	17.47	%	15.91	%	7.00	%	N/A
Bank	17.46	%	15.83	%	7.00		6.50	%
Tier 1 capital (to average assets)
Consolidated	11.50	%	10.00	%	4.00	%	N/A
Bank	11.50	%	9.84	%	4.00		5.00	%

Table of Contents

Dividends

On October 21, 2026, the Company declared a cash dividend of $0.31 per share, payable on November 13, 2026, to common shareholders of record as of November 4 2026. Any future determination to pay dividends to holders of our common stock will depend on our results of operations, financial condition, capital requirements, banking regulations, contractual restrictions, and any other factors that our board of directors may deem relevant.

Off-Balance Sheet Arrangements

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in our consolidated balance sheet. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if we deem collateral is necessary upon extension of credit, is based on management’s credit evaluation of the counterparty.

Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party and may be drawn by the beneficiary if the customer fails to perform in accordance with the underlying contractual terms.

See Note 10 of our consolidated financial statements as of September 30, 2026, included elsewhere in this Form 10-Q, for more information regarding our off-balance sheet arrangements as of September 30, 2026 and December 31, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Market risk represents the risk of loss due to changes in market values of assets and liabilities. We incur market risk in the normal course of business through exposures to market interest rates, equity prices, and credit spreads. We have identified interest rate risk as our primary source of market risk.

Interest Rate Risk

Interest rate risk is the risk to earnings and value arising from changes in market interest rates. Interest rate risk arises from timing differences in the repricing and maturities of interest-earning assets and interest-bearing liabilities (repricing risk), changes in the expected maturities of assets and liabilities arising from embedded options, such as borrowers’ ability to prepay home mortgage loans at any time and depositors’ ability to redeem certificates of deposit before maturity (option risk), changes in the shape of the yield curve where interest rates increase or decrease in a nonparallel fashion (yield curve risk), and changes in spread relationships between different yield curves, such as U.S. Treasuries and Federal funds Effective Rates (basis risk).

Our board of directors establishes broad policy limits with respect to interest rate risk. As part of this policy, the asset liability committee, or ALCO, establishes specific operating guidelines within the parameters of the board of directors’ policies. In general, the ALCO focuses on ensuring a stable and steadily increasing flow of net interest income through managing the size and mix of the balance sheet. The management of interest rate risk is an active process which encompasses monitoring loan and deposit flows complemented by investment and funding activities. Effective management of interest rate risk begins with understanding the dynamic characteristics of assets and liabilities and

Table of Contents

determining the appropriate interest rate risk posture given business forecasts, management objectives, market expectations, and policy constraints.

An asset sensitive position refers to a balance sheet position in which an increase in short-term interest rates is expected to generate higher net interest income, as rates earned on our interest-earning assets would reprice upward more quickly than rates paid on our interest-bearing liabilities, thus expanding our net interest margin. Conversely, a liability sensitive position refers to a balance sheet position in which an increase in short-term interest rates is expected to generate lower net interest income, as rates paid on our interest-bearing liabilities would reprice upward more quickly than rates earned on our interest-earning assets, thus compressing our net interest margin.

Interest rate risk measurement is calculated and reported to the ALCO at least quarterly. The information reported includes period-end results and identifies any policy limits exceeded, along with an assessment of the policy limit breach and the action plan and timeline for resolution, mitigation, or assumption of the risk.

Evaluation of Interest Rate Risk

We use income simulations, an analysis of core funding utilization, and economic value of equity (EVE) simulations as our primary tools in measuring and managing interest rate risk. These tools are utilized to quantify the potential earnings impact of changing interest rates over a two year simulation horizon (income simulations) as well as identify expected earnings trends given longer term rate cycles (long term simulations, core funding utilizations, and EVE simulation). A standard gap report and funding matrix will also be utilized to provide supporting detailed information on the expected timing of cashflow and repricing opportunities.

There are an infinite number of potential interest rate scenarios, each of which can be accompanied by differing economic/political/regulatory climates; can generate multiple differing behavior patterns by markets, borrowers, depositors, etc.; and can last for varying degrees of time. Therefore, by definition, interest rate risk sensitivity cannot be predicted with certainty. Accordingly, the Bank’s interest rate risk measurement philosophy focuses on maintaining an appropriate balance between theoretical and practical scenarios; especially given the primary objective of the Bank’s overall asset/liability management process is to facilitate meaningful strategy development and implementation.

Therefore, we model a set of interest rate scenarios capturing the financial effects of a range of plausible rate scenarios, the collective impact of which will enable the Bank to clearly understand the nature and extent of its sensitivity to interest rate changes. Doing so necessitates an assessment of rate changes over varying time horizons and of varying/sufficient degrees such that the impact of embedded options within the balance sheet are sufficiently examined.

We use a net interest income simulation model to measure and evaluate potential changes in our net interest income. We run three standard and plausible simulations comparing current or flat rates with a +/- 200 basis point ramp in rates over 12 and 24 months. These rate scenarios are considered appropriate as we believe they represent a more realistic range of rate movements that could occur in the near to medium term. This analysis also provides the foundation for historical tracking of interest rate risk. The impact of interest rate derivatives, such as interest rate swaps and caps, is included in the model.

Potential changes to our net interest income in hypothetical rising and declining rate scenarios calculated as of September 30, 2026 and December 31, 2025 are presented in the following table:


		Net Interest Income Sensitivity
		12 Month Projection				24 Month Projection
(Ramp in basis points)		+200		-200		+200		-200
September 30, 2026		(1.00)	%	1.60	%	(0.10)	%	5.10	%
December 31, 2025		(1.70)	%	1.20	%	(6.60)	%	6.50	%

We also model the impact of rate changes on our Economic Value of Equity, or EVE. We base the modeling of EVE based on interest rate shocks as shocks are considered more appropriate for EVE, which accelerates future interest rate risk into current capital via a present value calculation of all future cashflows from the Bank’s existing inventory of assets

Table of Contents

and liabilities. Our simulation model incorporates interest rate shocks of + 100, 200, 300, and 400 and – 100, 200, and 300 basis points. The results of the model are presented in the table below:


		Economic Value of Equity Sensitivity
(Shock in basis points)		+400		+300		+200		+100		-100		-200		-300
September 30, 2026		(14.00)		(10.00)	%	(6.10)	%	(2.80)	%	1.80	%	2.80	%	2.10	%
December 31, 2025		(28.20)		(21.10)	%	(14.00)	%	(6.70)	%	6.40	%	12.30	%	15.90	%

Our simulation model incorporates various assumptions, which we believe are reasonable but which may have a significant impact on results such as: (i) the timing of changes in interest rates; (ii) shifts or rotations in the yield curve; (iii) re-pricing characteristics for market-rate-sensitive instruments; (iv) varying loan prepayment speeds for different interest rate scenarios; and (v) the overall growth and mix of assets and liabilities. Because of limitations inherent in any approach used to measure interest rate risk, simulation results are not intended as a forecast of the actual effect of a change in market interest rates on our results but rather as a means to better plan and execute appropriate asset-liability management strategies and manage our interest rate risk.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2026. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2026.

Changes in Internal Control over Financial Reporting

During the quarter ended September 30, 2026, there was no change in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 of the Exchange Act that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company is continually monitoring and assessing changes in processes and activities to determine any potential impact on the design and operating effectiveness of internal controls over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are a party to various legal proceedings such as claims and lawsuits arising in the course of our normal business activities. Although the ultimate outcome of all claims and lawsuits outstanding as of September 30, 2026 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on our business, results of operations or financial condition.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in “Part I – Item 1A – Risk Factors” of the Company’s 2025 Form 10-K, which could materially affect its business, financial position, results of operations, cash flows, or future results. Please be aware that these risks may change over time and other risks may prove to be important in the future. New risks may emerge at any time, and we cannot

Table of Contents

predict such risks or estimate the extent to which they may affect our business, financial condition or results of operations, or the trading price of our securities.

There are no material changes during the period covered by this Report to the risk factors previously disclosed in the Company’s 2025 Form 10-K.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

On October 16, 2024, the Company announced the continuation of its share repurchase program that expired on September 30, 2024 (“Prior Share Repurchase Plan”), and authorized the Company to repurchase up to 925,250 shares of the Company’s outstanding shares of common stock, which is the number of remaining shares authorized for repurchase from the Prior Share Repurchase Plan. The share repurchase program began on October 17, 2024 and ended on September 30, 2025.

On September 17, 2025, the Company announced the continuation of its share repurchase program that expired on September 30, 2025 (“2025 Prior Share Repurchase Plan”) and authorized the Company to repurchase up to 923,976 shares of the Company’s outstanding shares of common stock, which is the number of remaining shares authorized for repurchase from the 2025 Prior Share Repurchase Plan. The continuation of the share repurchase program began on October 1, 2025 and ended in second quarter 2026.

The repurchases are made in compliance with all SEC rules, including Rule 10b-18, and other legal requirements and may be made in part under Rule 10b5-1 plans, which permits share repurchases when the Company might otherwise be precluded from doing so. Repurchases can be made from time-to-time in the open market or through privately negotiated transactions depending on market and/or other conditions. The repurchase program may be modified, suspended or discontinued at any time and does not obligate the Company to purchase any shares of its common stock.

There were no common shares repurchased for the three months ended September 30, 2026.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

During the third quarter of 2026, no executive officers or directors adopted Rule 10b5-1 trading plans and no directors or executive officers terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).

Table of Contents

Item 6. Exhibits


Exhibit No.		Description of Exhibit
2.1		Agreement and Plan of Reorganization, by and among MetroCity Bankshares, Inc., Metro City Bank, First IC Corporation, and First IC Bank, dated as of March 16, 2025 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed March 17, 2025)
3.1		Restated Articles of Incorporation of MetroCity Bankshares, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1 filed September 4, 2019 (File No. 333-233625))
3.2		Amended and Restated Bylaws of MetroCity Bankshares, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 filed September 4, 2019 (File No. 333-233625))
31.1		Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File - the cover page has been formatted in Inline XBRL and contained within the Inline XBRL Instance Document in Exhibit 101

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	METROCITY BANKSHARES, INC.

Date: November 5, 2026	By:	/s/ Nack Y. Paek
		Nack Y. Paek
		Chief Executive Officer

Date: November 5, 2026	By:	/s/ Farid Tan
		Farid Tan
		President and Interim Chief Financial Officer

Source: View Original Filing on SEC EDGAR

MetroCity Bankshares Q3 2026 profit rises to $24.3M

Rhea-AI Filing Summary

Positive

Negative

Filing Explained

Key Figures

Key Terms

FAQ

How much net income did MCBS report in Q3 2026?

What was MCBS's net income for the first nine months of 2026?

What did First IC shareholders receive in the MCBS acquisition?

Keep reading

More on MCBS

Trending in the feed