MetroCity Bankshares (NASDAQ: MCBS) Q2 2026 profit reaches $22.1 million
Rhea-AI Filing Summary
MetroCity Bankshares, Inc. reported second‑quarter 2026 net income of $22.1 million, or $0.76 per diluted share, down 0.8% from the prior quarter but up 31.5% from $16.8 million a year earlier, driven by the First IC acquisition completed in late 2025. For the first six months of 2026, net income was $44.4 million, an increase of 34.2% from the same period of 2025. Net interest income was $44.0 million and the net interest margin rose to 4.11% from 3.77% a year ago, as loan yields improved and the cost of average interest‑bearing liabilities declined three basis points year over year.
Total assets were $4.52 billion at June 30, 2026, up 25.0% year over year, with loans of $3.96 billion and deposits of $3.49 billion. The efficiency ratio was 40.08%, reflecting noninterest expense of $20.0 million. Asset quality metrics were solid: nonperforming assets were $18.7 million, or 0.41% of total assets, and the allowance for credit losses covered 148.08% of nonperforming loans, equal to 0.65% of total loans. Capital remained strong, including a common equity tier 1 ratio of 18.63%, and the quarterly cash dividend was $0.29 per share.
Positive
- Net income grew 31.5% year over year in Q2 2026 to $22.1 million, with year‑to‑date net income up 34.2%, supported by higher net interest income and contributions from the First IC acquisition.
Negative
- None.
Filing Explained
At June 30, 2026, cash was $266,690 thousand, while $1.72 billion of borrowing capacity remained available rather than drawn.
MetroCity Bankshares used this Form 8-K to furnish its second-quarter results for the period ended
The results announcement is furnished under Item 2.02 and is not treated as filed for Section 18 liability or automatically incorporated into other filings.
The quarter-end liquidity snapshot shows cash and cash equivalents of
The company also reported
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
efficiency ratio financial
nonperforming assets financial
allowance for credit losses financial
cash flow hedges financial
Offering Details
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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No. | ||
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(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ◻
Item 2.02 Results of Operations and Financial Condition
On July 24, 2026, MetroCity Bankshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter ended June 30, 2026. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.
In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description |
99.1 | MetroCity Bankshares, Inc. Earnings Press Release dated July 24, 2026 |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
METROCITY BANKSHARES, INC. | ||
Date: July 24, 2026 | By: | /s/ Farid Tan |
Farid Tan | ||
President and Interim Chief Financial Officer | ||
Exhibit 99.1
FOR IMMEDIATE RELEASE
METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2026
ATLANTA, GA (July 24, 2026) – MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $22.1 million, or $0.76 per diluted share, for the second quarter of 2026, compared to $22.3 million, or $0.77 per diluted share, for the first quarter of 2026, and $16.8 million, or $0.65 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, the Company reported net income of $44.4 million or $1.53 per diluted share, compared to $33.1 million, or $1.29 per diluted share, for the same period in 2025.
Second Quarter 2026 Highlights:
| ● | Annualized return on average assets was 1.96% compared to 1.96% for the first quarter of 2026 and 1.87% for the second quarter of 2025. |
| ● | Annualized return on average equity was 17.52%, compared to 18.28% for the first quarter of 2026 and 15.74% for the second quarter of 2025. Adjusted return on average shareholder’s equity1, which excluded average accumulated other comprehensive income and merger-related expenses, was 17.70% for the second quarter of 2026, compared to 19.36% for the first quarter of 2026, and 16.31% for the second quarter of 2025. |
| ● | Efficiency ratio was 40.08%, compared to 42.16% for the first quarter of 2026 and 37.23% for the second quarter of 2025. Operating efficiency ratio1 was 39.54%, compared to 38.87% for the first quarter of 2026 and 36.35% for the second quarter of 2025. |
| ● | Net interest margin was 4.11%, compared to 4.08% for the first quarter of 2026 and 3.77% for the second quarter of 2025. |
Year-to-Date 2026 Highlights:
| ● | Return on average assets increased to 2.01% for the six months ended June 30, 2026, compared to 1.86% for the same period in 2025. |
| ● | Return on average equity increased to 17.90% for the six months ended June 30, 2026, compared to 15.71% for the same period in 2025. Adjusted return on average shareholder’s equity1, which, excluded average accumulated other comprehensive income, was 18.52% for the six months ended June 30, 2026, compared to 16.34% for the same period in 2025. |
| ● | Efficiency ratio increased to 41.13% for the six months ended June 30, 2026, compared to 37.76% for the same period in 2025. |
| ● | Net interest margin increased by 38 basis points to 4.10% for the six months ended June 30, 2026, compared to 3.72% for the same period in 2025. |
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1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and for a reconciliation to GAAP.
Results of Operations
Net Income
Net income was $22.1 million for the second quarter of 2026, a decrease of $183,000, or 0.8%, from $22.3 million for the first quarter of 2026. This decrease was primarily due to a decrease in Small Business Administration (“SBA”) servicing income of $1.2 million, and an increase in provision for income taxes of $595,000, offset by an increase in gain on sale of SBA loans of $491,000, and a decrease in noninterest expenses of $1.5 million. Net income increased by $5.3 million, or 31.5%, in the second quarter of 2026 compared to net income of $16.8 million for the second quarter of 2025 as a result of the First IC Corporation (“First IC”) acquisition that occurred in fourth quarter of 2025. This increase was primarily due to an increase in interest income of $16.4 million, offset by an increase in interest expense of $4.5 million, an increase in noninterest expenses of $5.8 million, and an increase in income tax expense of $1.7 million.
Net income was $44.4 million for the six months ended June 30, 2026, an increase of $ 11.3 million, or 34.2%, from $33.1 million for the six months ended June 30, 2025. This increase was a result of the First IC acquisition that occurred in the fourth quarter of 2025, due to an increase in net interest income of $25.8 million and an increase in noninterest income of $1.0 million, offset by an increase in noninterest expense of $13.5 million, and an increase in income tax expense of $3.8 million.
Net Interest Income and Net Interest Margin
Interest income totaled $70.4 million for the second quarter of 2026, down $585,000, or 0.8%, from the previous quarter, primarily due to a $42.5 million decrease in average gross loans and an $80.5 million decrease in total average investments. Compared with the second quarter of 2025, interest income increased by $16.4 million, or 30.3%, primarily due to an $847.8 million increase in the average balance of gross loans, a $30.1 million increase in the average balance of investments, and a 26-basis-point increase in loan yield.
Interest expense totaled $26.4 million for the second quarter of 2026, a decrease of $139,000, or 0.5%, from the previous quarter, primarily due to a $125.7 million decrease in average interest-bearing deposits and a $26.2 million decrease in average borrowings, offset by an 11-basis-point increase in interest-bearing deposit costs. As compared to the second quarter of 2025, interest expense for the second quarter of 2026 increased by $4.5 million, or 20.5%, primarily due to a $578.3 million increase in average interest-bearing deposits balances and offset by a $16.0 million decrease in average borrowing balances and a three-basis point decrease in interest-bearing deposit costs. The Company currently has interest rate derivative agreements totaling $750.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.63% as of June 30, 2026). The weighted average pay rate for these interest rate derivatives is 3.12%. During the second quarter of 2026, we recorded a credit to interest expense of $1.5 million from the benefit received on these interest rate derivatives compared to a benefit of $2.9 million and $4.2 million recorded during the first quarter of 2026 and the second quarter of 2025, respectively.
The net interest margin for the second quarter of 2026 was 4.11% compared to 4.08% for the previous quarter, an increase of three basis points. The yield on average interest-earning assets for the second quarter of 2026 increased by six basis points to 6.57% from 6.51% for the previous quarter. This was partially offset by the cost of average interest-bearing liabilities for the second quarter of 2026 increasing by 11-basis-points to 3.36% from 3.25% for the previous quarter. Average earning assets decreased by $123.1 million from the previous quarter, due to a decrease in average loan balances of $42.5 million, and a decrease of $80.5 million in
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average total investments. Average interest-bearing liabilities decreased by $151.9 million from the previous quarter as average interest-bearing deposits decreased by $125.7 million and average borrowings decreased by $26.2 million.
As compared to the same period in 2025, the net interest margin for the second quarter of 2026 increased by 34 basis points to 4.11% from 3.77%, primarily due to a 23-basis-point increase in the yield on average interest-earning assets of $4.30 billion and a three-basis-point decrease in the cost of average interest-bearing liabilities of $3.15 billion. Average earning assets for the second quarter of 2026 increased by $877.9 million from the second quarter of 2025, due to a $30.1 million increase in average total investments and a $847.8 million increase in average loans. Average interest-bearing liabilities for the second quarter of 2026 increased by $562.2 million from the second quarter of 2025, driven by the increase in average interest-bearing deposits of $578.3 million, offset by a $16.0 million decrease in average borrowings.
Noninterest Income
Noninterest income for second quarter of 2026 was $5.8 million, a decrease of $602,000, or 9.5%, from the first quarter of 2026, primarily due to lower servicing income from our SBA and residential mortgage loans and other service charges, commission and fees, offset by higher gains on sale from our SBA loans and increases in service charges on deposits accounts. SBA loan sales totaled $27.1 million (sales premium of 8.21%) during the second quarter of 2026 compared to $19.7 million (sales premium of 7.68%) during the first quarter of 2026. Mortgage loan originations totaled $75.4 million during the second quarter of 2026 compared to $101.9 million during the first quarter of 2026. There were no mortgage loan sales during the second quarter of 2026 or the first quarter of 2026. During the second quarter of 2026, the fair value of our SBA servicing asset decreased by $86,000 compared to an increase in fair value of $666,000 during the first quarter of 2026. We also recorded no fair value impairment change on our mortgage servicing asset during the second quarter of 2026 or the first quarter of 2026.
Compared to the second quarter of 2025, noninterest income for the second quarter of 2026 increased by $22,000, or 0.4%, primarily due to higher gains on sale and servicing income from our SBA loans and service charges on deposits accounts, offset by decreases in gains on sale and servicing income from our residential mortgage loans.
Noninterest income for the six months ended June 30, 2026 totaled $12.1 million, an increase of $923,000, or 8.2%, from the six months ended June 30, 2025, primarily due to higher gains on sale and servicing income on SBA loans and service charges on deposits accounts, offset by decreases in gain on sale and servicing income on residential mortgage loans and other service charges.
Noninterest Expense
Noninterest expense for the second quarter of 2026 totaled $20.0 million, a decrease of $1.5 million, or 6.9%, from $21.4 million for the first quarter of 2026. This decrease was primarily attributable to decreases in merger-related expenses, salaries and employee benefits, occupancy and equipment and data processing, partially offset by an increase in other expenses.
Compared to the second quarter of 2025, noninterest expense during the second quarter of 2026 increased by $5.8 million, or 41.4%, primarily due to higher salaries and employee benefits, occupancy and equipment expense, data processing expense, security expense, loan expense, core deposit amortization expense, and merger-related expenses from the First IC acquisition that occurred in fourth quarter of 2025.
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Noninterest expense for the six months ended June 30, 2026 totaled $41.4 million, an increase of $13.5 million, or 48.3%, from $27.9 million for the six months ended June 30, 2025. This increase was primarily attributable to increases in salaries and employee benefits partially due to higher commissions, employee insurance, and stock-based compensation, as well as higher expenses related to merger-related expenses, depreciation, occupancy, data processing, security, loans, and professional services.
The Company’s efficiency ratio was 40.08% for the second quarter of 2026 compared to 42.16% and 37.23% for the first quarter of 2026 and the second quarter of 2025, respectively.
Income Tax Expense
The Company’s effective tax rate for the second quarter of 2026 was 27.7%, compared to 26.2% for the first quarter of 2026 and 28.9% for the second quarter of 2025.
Balance Sheet
Total assets were $4.52 billion at June 30, 2026, a decrease of $168.4 million, or 3.6%, from $4.69 billion at March 31, 2026, and an increase of $904.3 million or 25.0%, from $3.62 billion at June 30, 2025. The $168.4 million decrease in total assets at June 30, 2026 compared to March 31, 2026 was primarily due to decreases of $120.9 million in cash and cash equivalents, $43.4 million in gross loans, and $2.4 million in Federal Home Loan Bank stock. The $904.3 million increase in total assets at June 30, 2026 compared to June 30, 2025 was primarily due to the First IC acquisition that occurred in fourth quarter of 2025, with increases in gross loans of $831.1 million, goodwill and core deposit intangible of $68.0 million, securities of $11.2 million, operating lease right-of-use asset of $5.9 million, servicing asset of $4.4 million, and premises and equipment of $11.8 million partially offset by decreases in cash and cash equivalents of $19.3 million and interest rate derivatives of $7.9 million.
Investment Securities
Our investment securities portfolio made up only 0.99% of our total assets at June 30, 2026, compared to 0.96% and 0.93% at March 31, 2026 and June 30, 2025, respectively.
Loans
Loans held for investment were $3.96 billion at June 30, 2026, a decrease of $44.8 million, or 1.1%, compared to $4.00 billion at March 31, 2026, and an increase of $834.8 million, or 26.7%, compared to $3.1 billion at June 30, 2025. The decrease in loans at June 30, 2026 compared to March 31, 2026 was due to a $29.2 million decrease in commercial real estate loans, a $6.9 million decrease in commercial and industrial loans, and a $27.3 million decrease in residential real estate, offset by a $16.9 million increase in construction and development loans. Loans classified as held for sale totaled $1.4 million, $0, and $5.0 million at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
Deposits
Deposits were $3.49 billion at June 30, 2026, a decrease of $137.3 million, or 3.8% compared to total deposits of $3.63 billion at March 31, 2026, and an increase of $799.9 million, or 29.7%, compared to total deposits of $2.69 billion at June 30, 2025. The decrease in total deposits at June 30, 2026 compared to March 31, 2026 was due to a $38.5 million decrease in time deposits, a $377,000 decrease in savings accounts, $105.2 million decrease in money market accounts and a $16.2 million decrease in noninterest-bearing demand deposits offset by a $23.0 million increase in interest-bearing demand deposits.
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Noninterest-bearing deposits were $783.0 million at June 30, 2026, compared to $799.2 million at March 31, 2026 and $548.9 million at June 30, 2025. Noninterest-bearing deposits constituted 22.4% of total deposits at June 30, 2026, compared to 22.0% at March 31, 2026 and 20.4% at June 30, 2025. Interest-bearing deposits were $2.71 billion at June 30, 2026, compared to $2.83 billion at March 31, 2026 and $2.14 billion at June 30, 2025. Interest-bearing deposits constituted 77.6% of total deposits at June 30, 2026, compared to 78.0% at March 31, 2026 and 79.6% at June 30, 2025.
Uninsured deposits were 33.1% of total deposits at June 30, 2026, compared to 31.9% and 25.1% at March 31, 2026 and June 30, 2025, respectively. As of June 30, 2026, we had $1.72 billion available borrowing capacity at the Federal Home Loan Bank ($1.02 billion), Federal Reserve Discount Window ($634.0 million), and various other financial institutions (fed fund lines totaling $67.5 million).
Asset Quality
The Company recorded a recovery for credit losses of $792,000 during the second quarter of 2026, compared to a recovery for credit losses of $813,000 during the first quarter of 2026 and a provision for credit losses of $129,000 during the second quarter of 2025. The recovery for credit loss was recorded during the second quarter of 2026 was primarily due to the decrease in reserves mainly due to decreases in loan balances and reserves on individually analyzed loans. Annualized net recovery to average loans for the second quarter of 2026 was 0.01%, compared to net charge-off of 0.03% for the first quarter of 2026 and 0.01% for the second quarter of 2025.
Nonperforming assets totaled $18.7 million, or 0.41% of total assets, at June 30, 2026, an increase of $747,000, from $18.0 million, of 0.38% of total assets, at March 31, 2026, and an increase of $3.5 million from $15.2 million, or 0.42% of total assets, at June 30, 2025. The increase in nonperforming assets at June 30, 2026 compared to March 31, 2026 was due to a $611,000 increase in nonaccrual loans and a $153,000 increase in other real estate owned.
Allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2026, compared to 0.66% at March 31, 2026 and 0.60% at June 30, 2025. Allowance for credit losses as a percentage of nonperforming loans was 148.08% at June 30, 2026, compared to 158.70% and 129.76% at March 31, 2026 and June 30, 2025, respectively.
About MetroCity Bankshares, Inc.
MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 27 full-service branch locations and two loan production offices in Alabama, California, Florida, Georgia, New York, New Jersey, Texas, and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.
Forward-Looking Statements
Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The
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forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, increasing insurance costs, changes in interest rates, including changes to the federal funds rate, which could have an adverse effect on the Company’s profitability; impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers’ businesses; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposits, liquidity and the regulatory response thereto; risks arising from negative media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; risks associated with the recent merger of First IC with the Company (the “Merger”), including the risk that the cost savings and any revenue synergies may not be realized or take longer than anticipated to be realized as well as disruption with customers, suppliers, employee or other business partners relationships; the risk of successful integration of First IC’s business into the Company; the reaction of each of the Company’s and First IC’s customers, suppliers, employees or other business partners to the Merger; the risk that the integration of First IC’s operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; general competitive, economic, political, and market conditions; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions, as well as fintech companies and other non-bank financial service providers offering digital, automated or alternative financial products and services; the impact of a failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company’s customers; the effects of war or other conflicts, including the ongoing conflicts in the Middle East; major political shifts domestically or internationally (including the potential for retaliatory actions by governments, market participants or clients based on diverging perspectives or otherwise and, separately, the recent shutdown of the U.S. federal government); and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs, those related to credit card interest rates, and legislative, regulatory or supervisory actions related to so‑called “de‑banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in
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the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the “SEC”), and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.
Contacts
Farid Tan | |
President and Interim Chief Financial Officer | |
770-455-4978 | |
faridtan@metrocitybank.bank | |
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Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The measures entitled adjusted return on average shareholder’s equity and tangible book value per share are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholder’s equity and book value per share, respectively. Adjusted return on average shareholder’s equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.
Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These disclosures should not be considered an alternative to GAAP. The computations of adjusted return on average shareholder’s equity and tangible book value per share and the reconciliation of these measures to return on average shareholder’s equity and book value per share are set forth in the table below.
METROCITY BANKSHARES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
| | As of or For the Three Months Ended | | As of or For the Six Months Ended |
| |||||||||||||||||
(Dollars in thousands) | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | | |||||||
Return on average shareholder's equity reconciliation | | | | | | | | | | | | | | | | | | | | | | |
Average shareholder’s equity (GAAP) | | $ | 506,657 | | $ | 494,937 | | $ | 470,299 | | $ | 436,619 | | $ | 428,644 | | $ | 500,829 | | $ | 425,181 | |
Less: average accumulated other comprehensive income | | | (649) | | | (1,679) | | | (3,593) | | | (5,552) | | | (8,737) | | | (1,162) | | | (10,901) | |
Adjusted average shareholder’s equity (non-GAAP) | | $ | 506,008 | | $ | 493,258 | | $ | 466,706 | | $ | 431,067 | | $ | 419,907 | | $ | 499,667 | | $ | 414,280 | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income (GAAP) | | $ | 22,131 | | $ | 22,314 | | $ | 18,139 | | $ | 17,270 | | $ | 16,826 | | $ | 44,445 | | $ | 33,123 | |
Add: First IC-merger related expenses (net of tax effect) | | | 195 | | | 1,238 | | | 2,831 | | | 222 | | | 246 | | | 1,433 | | | 440 | |
Adjusted net income (non-GAAP) | | $ | 22,326 | | $ | 23,552 | | $ | 20,970 | | $ | 17,492 | | $ | 17,072 | | $ | 45,878 | | $ | 33,563 | |
| | | | | | | | | | | | | | | | | | | | | | |
Return on average shareholder’s equity (GAAP) | |
| 17.52 | % |
| 18.28 | % |
| 15.30 | % |
| 15.69 | % |
| 15.74 | % |
| 17.90 | % |
| 15.71 | % |
Adjusted return on average shareholder’s equity (non-GAAP) | |
| 17.70 | % |
| 19.36 | % |
| 17.83 | % |
| 16.10 | % |
| 16.31 | % |
| 18.52 | % |
| 16.34 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Tangible book value per share reconciliation | | | | | | | | | | | | | | | | | | | | | | |
Total shareholder's equity (GAAP) | | $ | 567,854 | | $ | 554,156 | | $ | 544,184 | | $ | 445,888 | | $ | 436,100 | | $ | 567,854 | | $ | 436,100 | |
Less: goodwill and core deposit intangible | | | (68,039) | | | (68,357) | | | (68,675) | | | — | | | — | | | (68,039) | | | — | |
Adjusted total shareholder's equity (non-GAAP) | | $ | 499,815 | | $ | 485,799 | | $ | 475,509 | | $ | 445,888 | | $ | 436,100 | | $ | 499,815 | | $ | 436,100 | |
| | | | | | | | | | | | | | | | | | | | | | |
Shares of common stock outstanding | | | 28,781,229 | | | 28,660,042 | | | 28,817,967 | | | 25,537,746 | | | 25,537,746 | | | 28,781,229 | | | 25,537,746 | |
| | | | | | | | | | | | | | | | | | | | | | |
Book value per share (GAAP) | | $ | 19.73 | | $ | 19.34 | | $ | 18.88 | | $ | 17.46 | | $ | 17.08 | | $ | 19.73 | | $ | 17.08 | |
Tangible book value per share (non-GAAP) | | $ | 17.37 | | $ | 16.95 | | $ | 16.50 | | $ | 17.46 | | $ | 17.08 | | $ | 17.37 | | $ | 17.08 | |
| | | | | | | | | | | | | | | | | | | | | | |
Efficiency Ratio reconciliation | | | | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (GAAP) | | | 40.08 | % | | 42.16 | % | | 46.71 | % | | 38.65 | % | | 37.23 | % | | 41.13 | % | | 37.76 | |
Impact of First IC-merger related expenses included in noninterest expense | | | (0.54) | | | (3.29) | | | (8.22) | | | (0.80) | | | (0.88) | | | (1.93) | | | (0.80) | |
Efficiency ratio-operating (non-GAAP) | | | 39.54 | % | | 38.87 | % | | 38.49 | % | | 37.85 | % | | 36.35 | % | | 39.20 | % | | 36.95 | |
8
METROCITY BANKSHARES, INC.
| | As of and for the Three Months Ended | | As of and for the Six Months Ended |
| |||||||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | June 30, | | June 30, |
| |||||||
(Dollars in thousands, except per share data) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | | 2026 | | 2025 |
| |||||||
Selected income statement data: | | | |
| | |
| | |
| | |
| | |
| | |
| | | |
Interest income | | $ | 70,405 | | $ | 70,990 | | $ | 60,257 | | $ | 54,003 | | $ | 54,049 | | $ | 141,395 | | $ | 106,568 | |
Interest expense | |
| 26,364 | |
| 26,503 | |
| 24,332 | |
| 22,211 | |
| 21,871 | |
| 52,867 | |
| 43,836 | |
Net interest income | |
| 44,041 | |
| 44,487 | |
| 35,925 | |
| 31,792 | |
| 32,178 | |
| 88,528 | |
| 62,732 | |
Provision for credit losses | |
| (792) | |
| (813) | |
| (39) | |
| (543) | |
| 129 | |
| (1,605) | |
| 264 | |
Noninterest income | |
| 5,755 | |
| 6,357 | |
| 7,817 | |
| 6,178 | |
| 5,733 | |
| 12,112 | |
| 11,189 | |
Noninterest expense | |
| 19,957 | |
| 21,438 | |
| 20,671 | |
| 14,674 | |
| 14,113 | |
| 41,395 | |
| 27,912 | |
Income tax expense | |
| 8,500 | |
| 7,905 | |
| 4,971 | |
| 6,569 | |
| 6,843 | |
| 16,405 | |
| 12,622 | |
Net income | |
| 22,131 | |
| 22,314 | |
| 18,139 | |
| 17,270 | |
| 16,826 | |
| 44,445 | |
| 33,123 | |
Per share data: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Basic income per share | | $ | 0.77 | | $ | 0.78 | | $ | 0.69 | | $ | 0.68 | | $ | 0.66 | | $ | 1.55 | | $ | 1.30 | |
Diluted income per share | | $ | 0.76 | | $ | 0.77 | | $ | 0.68 | | $ | 0.67 | | $ | 0.65 | | $ | 1.53 | | $ | 1.29 | |
Dividends per share | | $ | 0.29 | | $ | 0.29 | | $ | 0.25 | | $ | 0.25 | | $ | 0.23 | | $ | 0.58 | | $ | 0.46 | |
Book value per share (at period end) | | $ | 19.73 | | $ | 19.34 | | $ | 18.89 | | $ | 17.46 | | $ | 17.08 | | $ | 19.73 | | $ | 17.08 | |
Tangible book value per share (at period end)(1) | | $ | 17.37 | | $ | 16.95 | | $ | 16.50 | | $ | 17.46 | | $ | 17.08 | | $ | 17.37 | | $ | 17.08 | |
Shares of common stock outstanding | |
| 28,781,229 | |
| 28,660,042 | |
| 28,817,967 | |
| 25,537,746 | |
| 25,537,746 | |
| 28,781,229 | |
| 25,537,746 | |
Weighted average diluted shares | |
| 28,949,200 | |
| 29,051,061 | |
| 26,806,181 | |
| 25,811,422 | |
| 25,715,206 | |
| 28,984,717 | |
| 25,697,183 | |
Performance ratios: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Return on average assets | | | 1.96 | % | | 1.96 | % | | 1.80 | % | | 1.89 | % | | 1.87 | % |
| 2.01 | % |
| 1.86 | % |
Return on average equity | |
| 17.52 | |
| 18.28 | |
| 15.45 | |
| 15.69 | |
| 15.74 | |
| 17.90 | |
| 15.71 | |
Adjusted return on average equity (1) | | | 17.70 | | | 19.36 | | | 17.83 | | | 16.10 | | | 16.31 | | | 18.52 | | | 16.34 | |
Dividend payout ratio | |
| 32.55 | |
| 32.49 | |
| 35.08 | |
| 37.23 | |
| 35.01 | |
| 32.52 | |
| 35.56 | |
Yield on total loans | |
| 6.75 | |
| 6.74 | |
| 6.42 | |
| 6.37 | |
| 6.49 | |
| 6.74 | |
| 6.44 | |
Yield on average earning assets | |
| 6.57 | |
| 6.51 | |
| 6.26 | |
| 6.24 | |
| 6.34 | |
| 6.54 | |
| 6.33 | |
Cost of average interest-bearing liabilities | |
| 3.36 | |
| 3.25 | |
| 3.36 | |
| 3.42 | |
| 3.39 | |
| 3.45 | |
| 3.43 | |
Cost of interest-bearing deposits | |
| 3.24 | |
| 3.12 | |
| 3.22 | |
| 3.28 | |
| 3.25 | |
| 3.34 | |
| 3.30 | |
Net interest margin | |
| 4.11 | |
| 4.08 | |
| 3.73 | |
| 3.68 | |
| 3.77 | |
| 4.10 | |
| 3.72 | |
Efficiency ratio(2) | |
| 40.08 | |
| 42.16 | |
| 46.71 | |
| 38.65 | |
| 37.23 | |
| 41.13 | |
| 37.76 | |
Efficiency ratio - operating (1)(2) | | | 39.54 | | | 38.87 | | | 38.49 | | | 37.85 | | | 36.35 | | | 39.20 | | | 36.95 | |
Asset quality data (at period end): | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net charge-offs/(recoveries) to average loans held for investment | |
| (0.01) | % |
| 0.03 | % |
| (0.00) | % |
| 0.03 | % |
| 0.01 | % |
| (0.01) | % |
| 0.01 | % |
Nonperforming assets to gross loans held for investment and OREO | |
| 0.47 | |
| 0.45 | |
| 0.64 | |
| 0.47 | |
| 0.49 | |
| 0.47 | |
| 0.49 | |
ACL to nonperforming loans | |
| 148.08 | |
| 158.54 | |
| 107.48 | |
| 137.66 | |
| 129.76 | |
| 148.08 | |
| 129.76 | |
ACL to loans held for investment | |
| 0.65 | |
| 0.66 | |
| 0.68 | |
| 0.60 | |
| 0.60 | |
| 0.65 | |
| 0.60 | |
Balance sheet and capital ratios: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gross loans held for investment to deposits | |
| 114.16 | % |
| 111.12 | % |
| 111.84 | % |
| 110.43 | % |
| 116.34 | % |
| 114.16 | % |
| 116.34 | % |
Noninterest bearing deposits to deposits | |
| 22.44 | |
| 22.04 | |
| 21.42 | |
| 20.22 | |
| 20.41 | |
| 22.44 | |
| 20.41 | |
Investment securities to assets | | | 0.99 | | | 0.96 | | | 1.38 | | | 0.94 | | | 0.93 | | | 0.99 | | | 0.93 | |
Common equity to assets | |
| 11.23 | |
| 10.52 | |
| 9.98 | |
| 12.29 | |
| 12.06 | |
| 11.23 | |
| 12.06 | |
Leverage ratio | |
| 12.11 | |
| 10.47 | |
| 10.00 | |
| 12.21 | |
| 11.91 | |
| 12.11 | |
| 11.91 | |
Common equity tier 1 ratio | |
| 18.63 | |
| 16.52 | |
| 15.90 | |
| 19.93 | |
| 19.91 | |
| 18.63 | |
| 19.91 | |
Tier 1 risk-based capital ratio | |
| 18.63 | |
| 16.52 | |
| 15.90 | |
| 19.93 | |
| 19.91 | |
| 18.63 | |
| 19.91 | |
Total risk-based capital ratio | | | 19.51 | | | 17.44 | | | 16.84 | | | 20.74 | | | 20.78 | | | 19.51 | | | 20.78 | |
Mortgage and SBA loan data: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mortgage loans serviced for others | | $ | 463,501 | | $ | 496,552 | | $ | 702,586 | | $ | 538,675 | | $ | 559,112 | | $ | 463,501 | | $ | 559,112 | |
Mortgage loan production | |
| 75,373 | |
| 101,948 | |
| 111,717 | |
| 168,562 | |
| 93,156 | |
| 177,321 | |
| 184,278 | |
Mortgage loan sales | |
| — | |
| — | |
| 197,553 | |
| 18,248 | |
| 54,309 | |
| — | |
| 94,360 | |
SBA/USDA loans serviced for others | |
| 682,172 | |
| 699,028 | |
| 685,481 | |
| 460,720 | |
| 480,867 | |
| 682,172 | |
| 480,867 | |
SBA loan production | |
| 46,588 | |
| 20,816 | |
| 32,575 | |
| 17,727 | |
| 29,337 | |
| 67,404 | |
| 49,749 | |
SBA loan sales | |
| 27,140 | |
| 19,733 | |
| 9,792 | |
| 13,415 | |
| 20,707 | |
| 46,873 | |
| 37,286 | |
(1) Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and for a reconciliation to GAAP.
(2) Represents noninterest expense divided by the sum of net interest income plus noninterest income.
9
METROCITY BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| | As of the Quarter Ended | |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |||||
(Dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | |||||
ASSETS |
| | |
| | |
| | |
| | |
| | |
Cash and due from banks | | $ | 254,368 | | $ | 373,956 | | $ | 370,832 | | $ | 213,941 | | $ | 273,596 |
Federal funds sold | |
| 12,322 | |
| 13,645 | |
| 12,844 | |
| 13,217 | |
| 12,415 |
Cash and cash equivalents | |
| 266,690 | |
| 387,601 | |
| 383,676 | |
| 227,158 | |
| 286,011 |
Equity securities | | | 18,481 | | | 18,564 | | | 18,646 | | | 18,605 | | | 18,481 |
Securities available for sale (at fair value) | |
| 26,183 | |
| 26,616 | |
| 47,179 | |
| 15,365 | |
| 15,030 |
Loans held for investment | |
| 3,956,319 | |
| 4,001,114 | |
| 4,051,397 | |
| 2,966,859 | |
| 3,121,534 |
Allowance for credit losses | |
| (25,818) | |
| (26,700) | |
| (27,843) | |
| (17,940) | |
| (18,748) |
Loans less allowance for credit losses | |
| 3,930,501 | |
| 3,974,414 | |
| 4,023,554 | |
| 2,948,919 | |
| 3,102,786 |
Loans held for sale | |
| 1,350 | |
| — | |
| 9,741 | |
| 231,259 | |
| 4,988 |
Accrued interest receivable | |
| 20,115 | |
| 20,299 | |
| 20,298 | |
| 16,912 | |
| 16,528 |
Federal Home Loan Bank stock | |
| 21,112 | |
| 23,487 | |
| 27,565 | |
| 22,693 | |
| 22,693 |
Premises and equipment, net | |
| 29,619 | |
| 29,633 | |
| 29,879 | |
| 17,836 | |
| 17,872 |
Operating lease right-of-use asset | |
| 14,040 | |
| 14,412 | |
| 15,193 | |
| 7,712 | |
| 8,197 |
Foreclosed real estate, net | |
| 1,300 | |
| 1,147 | |
| 208 | |
| 919 | |
| 744 |
SBA servicing asset, net | |
| 11,180 | |
| 11,267 | |
| 10,601 | |
| 6,988 | |
| 6,823 |
Mortgage servicing asset, net | |
| 1,308 | |
| 1,484 | |
| 1,660 | |
| 1,662 | |
| 1,676 |
Bank owned life insurance | |
| 77,066 | |
| 76,424 | |
| 75,786 | |
| 75,148 | |
| 74,520 |
Goodwill | | | 56,048 | | | 56,048 | | | 56,048 | | | — | | | — |
Core deposit intangible | | | 11,991 | | | 12,309 | | | 12,627 | | | — | | | — |
Interest rate derivatives | | | 4,791 | | | 4,970 | | | 6,343 | | | 9,435 | | | 12,656 |
Other assets | | | 28,179 | | | 29,672 | | | 29,396 | | | 28,852 | | | 26,683 |
Total assets | | $ | 4,519,954 | | $ | 4,688,347 | | $ | 4,768,400 | | $ | 3,629,463 | | $ | 3,615,688 |
| | | | | | | | | | | | | | | |
LIABILITIES | |
| | |
| | |
| | |
| | |
| |
Noninterest-bearing deposits | | $ | 782,972 | | $ | 799,190 | | $ | 780,828 | | $ | 544,439 | | $ | 548,906 |
Interest-bearing deposits | |
| 2,706,385 | |
| 2,827,484 | |
| 2,865,173 | |
| 2,148,645 | |
| 2,140,587 |
Total deposits | |
| 3,489,357 | |
| 3,626,674 | |
| 3,646,001 | |
| 2,693,084 | |
| 2,689,493 |
Federal Home Loan Bank advances | |
| 375,000 | |
| 425,000 | |
| 510,000 | |
| 425,000 | |
| 425,000 |
Operating lease liability | |
| 14,131 | |
| 14,516 | |
| 15,306 | |
| 7,704 | |
| 8,222 |
Accrued interest payable | |
| 7,537 | |
| 10,200 | |
| 10,731 | |
| 3,567 | |
| 3,438 |
Other liabilities | |
| 66,075 | |
| 57,801 | |
| 42,178 | |
| 54,220 | |
| 53,435 |
Total liabilities | | $ | 3,952,100 | | $ | 4,134,191 | | $ | 4,224,216 | | $ | 3,183,575 | | $ | 3,179,588 |
| | | | | | | | | | | | | | | |
SHAREHOLDERS' EQUITY | |
| | |
| | |
| | |
| | |
| |
Preferred stock | |
| — | |
| — | |
| — | |
| — | |
| — |
Common stock | |
| 288 | |
| 286 | |
| 1,159 | |
| 255 | |
| 255 |
Additional paid-in capital | |
| 136,123 | |
| 135,531 | |
| 138,675 | |
| 51,151 | |
| 50,212 |
Retained earnings | |
| 431,518 | |
| 417,750 | |
| 402,684 | |
| 390,971 | |
| 380,046 |
Accumulated other comprehensive income | |
| (75) | |
| 589 | |
| 1,666 | |
| 3,511 | |
| 5,587 |
Total shareholders' equity | |
| 567,854 | |
| 554,156 | |
| 544,184 | |
| 445,888 | |
| 436,100 |
Total liabilities and shareholders' equity | | $ | 4,519,954 | | $ | 4,688,347 | | $ | 4,768,400 | | $ | 3,629,463 | | $ | 3,615,688 |
10
METROCITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| | Three Months Ended | | Six Months Ended | |||||||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | June 30, | | June 30, | |||||||
(Dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | | 2026 | | 2025 | |||||||
Interest and dividend income: |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Loans, including fees | | $ | 67,312 | | $ | 67,139 | | $ | 57,335 | | $ | 50,975 | | $ | 50,936 | | $ | 134,451 | | $ | 101,189 |
Other investment income | |
| 2,972 | |
| 3,730 | |
| 2,790 | |
| 2,884 | |
| 2,970 | |
| 6,702 | |
| 5,096 |
Federal funds sold | |
| 121 | |
| 121 | |
| 132 | |
| 144 | |
| 143 | |
| 242 | |
| 283 |
Total interest income | |
| 70,405 | |
| 70,990 | |
| 60,257 | |
| 54,003 | |
| 54,049 | |
| 141,395 | |
| 106,568 |
| | | | | | | | | | | | | | | | | | | | | |
Interest expense: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Deposits | |
| 22,140 | |
| 22,077 | |
| 19,623 | |
| 17,799 | |
| 17,496 | |
| 44,217 | |
| 35,473 |
FHLB advances and other borrowings | |
| 4,224 | |
| 4,426 | |
| 4,709 | |
| 4,412 | |
| 4,375 | |
| 8,650 | |
| 8,363 |
Total interest expense | |
| 26,364 | |
| 26,503 | |
| 24,332 | |
| 22,211 | |
| 21,871 | |
| 52,867 | |
| 43,836 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income | |
| 44,041 | |
| 44,487 | |
| 35,925 | |
| 31,792 | |
| 32,178 | |
| 88,528 | |
| 62,732 |
| | | | | | | | | | | | | | | | | | | | | |
Provision (recovery) for credit losses | |
| (792) | |
| (813) | |
| (39) | |
| (543) | |
| 129 | |
| (1,605) | |
| 264 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | |
| 44,833 | |
| 45,300 | |
| 35,964 | |
| 32,335 | |
| 32,049 | |
| 90,133 | |
| 62,468 |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest income: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Service charges on deposit accounts | |
| 958 | |
| 848 | |
| 772 | |
| 551 | |
| 505 | |
| 1,806 | |
| 1,005 |
Other service charges, commissions and fees | |
| 1,428 | |
| 1,581 | |
| 1,748 | |
| 2,376 | |
| 1,620 | |
| 3,009 | |
| 3,216 |
Gain on sale of residential mortgage loans | |
| — | |
| — | |
| 2,808 | |
| 166 | |
| 579 | |
| — | |
| 978 |
Mortgage servicing income, net | |
| 271 | |
| 306 | |
| 504 | |
| 516 | |
| 781 | |
| 577 | |
| 1,399 |
Gain on sale of SBA loans | |
| 1,536 | |
| 1,045 | |
| 463 | |
| 558 | |
| 643 | |
| 2,581 | |
| 1,301 |
SBA servicing income, net | |
| 728 | |
| 1,905 | |
| 800 | |
| 1,203 | |
| 642 | |
| 2,633 | |
| 1,555 |
Other income | |
| 834 | |
| 672 | |
| 722 | |
| 808 | |
| 963 | |
| 1,506 | |
| 1,735 |
Total noninterest income | |
| 5,755 | |
| 6,357 | |
| 7,817 | |
| 6,178 | |
| 5,733 | |
| 12,112 | |
| 11,189 |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest expense: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Salaries and employee benefits | |
| 11,344 | |
| 11,501 | |
| 10,674 | |
| 8,953 | |
| 8,554 | |
| 22,845 | |
| 17,047 |
Occupancy and equipment | |
| 2,328 | |
| 2,434 | |
| 1,581 | |
| 1,410 | |
| 1,380 | |
| 4,762 | |
| 2,797 |
Data Processing | |
| 535 | |
| 682 | |
| 466 | |
| 394 | |
| 329 | |
| 1,217 | |
| 674 |
Advertising | |
| 178 | |
| 223 | |
| 180 | |
| 161 | |
| 149 | |
| 401 | |
| 316 |
Merger-related expenses | | | 270 | | | 1,676 | | | 3,833 | | | 301 | | | 333 | | | 1,946 | | | 595 |
Other expenses | |
| 5,302 | |
| 4,922 | |
| 3,937 | |
| 3,455 | |
| 3,368 | |
| 10,224 | |
| 6,483 |
Total noninterest expense | |
| 19,957 | |
| 21,438 | |
| 20,671 | |
| 14,674 | |
| 14,113 | |
| 41,395 | |
| 27,912 |
| | | | | | | | | | | | | | | | | | | | | |
Income before provision for income taxes | |
| 30,631 | |
| 30,219 | |
| 23,110 | |
| 23,839 | |
| 23,669 | |
| 60,850 | |
| 45,745 |
Provision for income taxes | |
| 8,500 | |
| 7,905 | |
| 4,971 | |
| 6,569 | |
| 6,843 | |
| 16,405 | |
| 12,622 |
Net income available to common shareholders | | $ | 22,131 | | $ | 22,314 | | $ | 18,139 | | $ | 17,270 | | $ | 16,826 | | $ | 44,445 | | $ | 33,123 |
11
METROCITY BANKSHARES, INC.
QTD AVERAGE BALANCES AND YIELDS/RATES
| | Three Months Ended |
| ||||||||||||||||||||||
| | June 30, 2026 | | March 31, 2026 | | June 30, 2025 |
| ||||||||||||||||||
| | Average | | Interest and | | Yield / | | Average | | Interest and | | Yield / | | Average | | Interest and | | Yield / | | ||||||
(Dollars in thousands) | | Balance | | Fees | | Rate | | Balance | | Fees | | Rate | | Balance | | Fees | | Rate |
| ||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
|
Federal funds sold and other investments(1) | | $ | 250,992 | | $ | 2,320 | | 3.71 | % | $ | 318,318 | | $ | 3,329 | | 4.24 | % | $ | 231,803 | | $ | 2,848 | | 4.93 | % |
Investment securities | |
| 47,970 | | | 773 | | 6.46 | |
| 61,169 | | | 522 | | 3.46 | |
| 37,040 | |
| 265 | | 2.87 | |
Total investments | |
| 298,962 | | | 3,093 | | 4.15 | |
| 379,487 | | | 3,851 | | 4.12 | |
| 268,843 | |
| 3,113 |
| 4.64 | |
Construction and development | |
| 58,374 | | | 1,059 | | 7.28 | |
| 43,100 | | | 794 | | 7.47 | |
| 28,283 | | | 580 | | 8.23 | |
Commercial real estate | |
| 1,454,209 | | | 29,466 | | 8.13 | |
| 1,290,296 | | | 29,836 | | 9.38 | |
| 807,897 | | | 17,612 | | 8.74 | |
Commercial and industrial | |
| 88,982 | | | 2,166 | | 9.76 | |
| 86,547 | | | 1,572 | | 7.37 | |
| 71,274 | | | 1,544 | | 8.69 | |
Residential real estate | |
| 2,395,849 | | | 34,610 | | 5.79 | |
| 2,619,786 | | | 34,922 | | 5.41 | |
| 2,242,456 | | | 31,137 | | 5.57 | |
Consumer and other | |
| 636 | | | 11 | | 6.94 | |
| 847 | | | 15 | | 7.18 | |
| 365 | | | 63 | | 69.23 | |
Gross loans(2) | |
| 3,998,050 | |
| 67,312 | | 6.75 | |
| 4,040,576 | |
| 67,139 | | 6.74 | |
| 3,150,275 | |
| 50,936 |
| 6.49 | |
Total earning assets | |
| 4,297,012 | |
| 70,405 | | 6.57 | |
| 4,420,063 | |
| 70,990 | | 6.51 | |
| 3,419,118 | |
| 54,049 |
| 6.34 | |
Noninterest-earning assets | |
| 230,581 | |
| | | | | | 202,774 | |
| | | | |
| 199,302 | |
| |
| | |
Total assets | |
| 4,527,593 | |
| | | | | | 4,622,837 | |
| | | | |
| 3,618,420 | |
| |
| | |
Interest-bearing liabilities: | |
| | |
| | | | |
| | |
| | | | |
| | |
| |
| | |
NOW and savings deposits | |
| 278,175 | | | 1,579 | | 2.28 | |
| 272,645 | | | 1,552 | | 2.31 | |
| 162,810 | | | 1,089 | | 2.68 | |
Money market deposits | |
| 1,112,349 | | | 8,324 | | 3.00 | |
| 1,175,909 | | | 7,506 | | 2.59 | |
| 1,032,754 | | | 6,815 | | 2.65 | |
Time deposits | |
| 1,349,972 | | | 12,237 | | 3.64 | |
| 1,417,623 | | | 13,019 | | 3.72 | |
| 966,678 | | | 9,592 | | 3.98 | |
Total interest-bearing deposits | |
| 2,740,496 | |
| 22,140 | | 3.24 | |
| 2,866,177 | |
| 22,077 | | 3.12 | |
| 2,162,242 | |
| 17,496 |
| 3.25 | |
Borrowings | |
| 410,165 | | | 4,224 | | 4.13 | |
| 436,344 | | | 4,426 | | 4.11 | |
| 426,173 | | | 4,375 | | 4.12 | |
Total interest-bearing liabilities | |
| 3,150,661 | |
| 26,364 | | 3.36 | |
| 3,302,521 | |
| 26,503 | | 3.25 | |
| 2,588,415 | |
| 21,871 |
| 3.39 | |
Noninterest-bearing liabilities: | |
| | |
| |
| | |
| | |
| |
| | |
| | |
| |
| | |
Noninterest-bearing deposits | |
| 779,925 | |
| |
| | | | 774,905 | |
| |
| | | | 529,130 | |
| |
| | |
Other noninterest-bearing liabilities | |
| 90,350 | |
| |
| | | | 50,474 | |
| |
| | | | 72,231 | |
| |
| | |
Total noninterest-bearing liabilities | |
| 870,275 | |
| |
| | | | 825,379 | |
| |
| | | | 601,361 | |
| |
| | |
Shareholders' equity | |
| 506,657 | |
| |
| | | | 494,937 | |
| |
| | | | 428,644 | |
| |
| | |
Total liabilities and shareholders' equity | | $ | 4,527,593 | | | | | | | $ | 4,622,837 | | | | | | | $ | 3,618,420 | |
| |
| | |
Net interest income | | | | | $ | 44,041 | | | |
| | | $ | 44,487 | | | |
| | | $ | 32,178 |
| | |
Net interest spread | |
| | |
| | | 3.21 | |
| | |
| | | 3.26 | |
| | |
| |
| 2.95 | |
Net interest margin | |
| | |
| | | 4.11 | |
| | |
| | | 4.08 | |
| | |
| |
| 3.77 | |
(1) | Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets. |
(2) | Average loan balances include nonaccrual loans and loans held for sale. |
12
METROCITY BANKSHARES, INC.
YTD AVERAGE BALANCES AND YIELDS/RATES
| | Six Months Ended |
| ||||||||||||||
| | June 30, 2026 | | June 30, 2025 |
| ||||||||||||
| | Average | | Interest and | | Yield / | | Average | | Interest and | | Yield / |
| ||||
(Dollars in thousands) | | Balance | | Fees | | Rate | | Balance | | Fees | | Rate |
| ||||
Earning Assets: |
| | |
| | |
| |
| | |
| | |
| | |
Federal funds sold and other investments(1) | | $ | 284,469 | | $ | 5,201 | | 3.69 | % | $ | $ 195,840 | | $ | 4,946 | | 5.09 | % |
Investment securities | |
| 54,533 | | | 1,743 | | 6.45 | |
| 34,551 | | | 433 | | 2.53 | |
Total investments | |
| 339,002 | | | 6,944 | | 4.13 | |
| 230,391 | | | 5,379 | | 4.71 | |
Construction and development | |
| 50,779 | | | 1,853 | | 7.36 | |
| 25,816 | | | 1,060 | | 8.28 | |
Commercial real estate | |
| 1,373,705 | | | 59,302 | | 8.71 | |
| 793,968 | | | 33,769 | | 8.58 | |
Commercial and industrial | |
| 87,771 | | | 3,738 | | 8.59 | |
| 72,032 | | | 3,132 | | 8.77 | |
Residential real estate | |
| 2,507,199 | | | 69,530 | | 5.59 | |
| 2,275,082 | | | 63,123 | | 5.60 | |
Consumer and other | |
| 741 | | | 28 | | 7.62 | |
| 321 | | | 105 | | 65.96 | |
Gross loans(2) | |
| 4,020,195 | |
| 134,451 |
| 6.74 | |
| 3,167,219 | |
| 101,189 |
| 6.44 | |
Total earning assets | |
| 4,359,197 | |
| 141,395 |
| 6.54 | |
| 3,397,610 | |
| 106,568 |
| 6.33 | |
Noninterest-earning assets | |
| 97,725 | |
| | | | |
| 198,293 | |
| | | | |
Total assets | |
| 4,456,922 | |
| | | | |
| 3,595,903 | |
| | | | |
Interest-bearing liabilities: | |
| | |
| |
| | |
| | |
| |
| | |
NOW and savings deposits | |
| 275,425 | | | 3,131 | | 2.29 | |
| 158,300 | | | 2,040 | | 2.60 | |
Money market deposits | |
| 1,011,090 | | | 15,830 | | 3.16 | |
| 1,021,674 | | | 13,137 | | 2.59 | |
Time deposits | |
| 1,383,610 | | | 25,256 | | 3.68 | |
| 986,567 | | | 20,296 | | 4.15 | |
Total interest-bearing deposits | |
| 2,670,125 | |
| 44,217 |
| 3.34 | |
| 2,166,541 | |
| 35,473 |
| 3.30 | |
Borrowings | |
| 423,182 | | | 8,650 | | 4.12 | |
| 408,186 | | | 8,363 | | 4.13 | |
Total interest-bearing liabilities | |
| 3,093,307 | |
| 52,867 |
| 3.45 | |
| 2,574,727 | |
| 43,836 |
| 3.43 | |
Noninterest-bearing liabilities: | |
| | |
| |
| | |
| | |
| |
| | |
Noninterest-bearing deposits | |
| 777,429 | |
| |
| | |
| 524,155 | |
| |
| | |
Other noninterest-bearing liabilities | |
| 85,357 | |
| |
| | |
| 71,840 | |
| |
| | |
Total noninterest-bearing liabilities | |
| 862,786 | |
| |
| | |
| 595,995 | |
| |
| | |
Shareholders' equity | |
| 500,829 | |
| |
| | |
| 425,181 | |
| |
| | |
Total liabilities and shareholders' equity | | $ | 4,456,922 | | | | | | | $ | 3,595,903 | | | | | | |
Net interest income | |
| | | $ | 88,528 | | | |
| | | $ | 62,732 | | | |
Net interest spread | |
| | |
| | | 3.09 | |
| | |
| | | 2.90 | |
Net interest margin | |
| | |
| | | 4.10 | |
| | |
| | | 3.72 | |
(1) | Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets. |
(2) | Average loan balances include nonaccrual loans and loans held for sale. |
13
METROCITY BANKSHARES, INC.
LOAN DATA
| | As of the Quarter Ended |
| |||||||||||||||||||||||
| | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 | | June 30, 2025 |
| |||||||||||||||
| | | | | % of | | | | | % of | | | | | % of | | | | | % of | | | | | % of |
|
(Dollars in thousands) | | Amount | | Total | | Amount | | Total | | Amount | | Total | | Amount | | Total | | Amount | | Total |
| |||||
Construction and development | | $ | 69,348 | | 1.7 | % | $ | 52,452 | | 1.3 | % | $ | 41,797 | | 1.0 | % | $ | 32,415 | | 1.1 | % | $ | 30,149 | | 1.0 | % |
Commercial real estate | |
| 1,463,460 | | 36.7 | |
| 1,492,703 | | 37.0 | |
| 1,560,728 | | 38.3 | |
| 814,464 | | 27.4 | |
| 803,384 | | 25.7 | |
Commercial and industrial | |
| 84,999 | | 2.1 | |
| 91,877 | | 2.3 | |
| 96,360 | | 2.4 | |
| 69,430 | | 2.3 | |
| 73,832 | | 2.3 | |
Residential real estate | |
| 2,365,132 | | 59.5 | |
| 2,392,444 | | 59.4 | |
| 2,378,311 | | 58.3 | |
| 2,057,281 | | 69.2 | |
| 2,221,316 | | 71.0 | |
Consumer and other | |
| 600 | | — | |
| 643 | | — | |
| 627 | | — | |
| 325 | | — | |
| 200 | | — | |
Gross loans held for investment | | $ | 3,983,539 |
| 100.0 | % | $ | 4,030,119 |
| 100.0 | % | $ | 4,077,822 |
| 100.0 | % | $ | 2,973,915 |
| 100.0 | % | $ | 3,128,881 |
| 100.0 | % |
Unearned income | |
| (9,660) |
| | |
| (10,093) |
| | |
| (6,621) |
| | |
| (7,056) |
| | |
| (7,347) |
| | |
Loan discounts | | | (17,560) | | | | | (18,912) | | | | | (19,804) | | | | | — | | | | | — | | | |
Allowance for credit losses | |
| (25,818) |
| | |
| (26,700) |
| | |
| (27,843) |
| | |
| (17,940) |
| | |
| (18,748) |
| | |
Net loans held for investment | | $ | 3,930,501 |
| | | $ | 3,974,414 |
| | | $ | 4,023,554 |
| | | $ | 2,948,919 |
| | | $ | 3,102,786 |
| | |
METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS
| | As of the Quarter Ended |
| |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| |||||
(Dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 |
| |||||
Nonaccrual loans | | $ | 17,435 | | $ | 16,824 | | $ | 25,906 | | $ | 13,032 | | $ | 14,448 | |
Past due loans 90 days or more and still accruing | |
| — | |
| 17 | |
| — | |
| — | |
| — | |
Total non-performing loans | |
| 17,435 | |
| 16,841 | |
| 25,906 | |
| 13,032 | |
| 14,448 | |
Other real estate owned | |
| 1,300 | |
| 1,147 | |
| 208 | |
| 919 | |
| 744 | |
Total non-performing assets | | $ | 18,735 | | $ | 17,988 | | $ | 26,114 | | $ | 13,951 | | $ | 15,192 | |
| | | | | | | | | | | | | | | | |
Nonperforming loans to gross loans held for investment | |
| 0.44 | % |
| 0.42 | % |
| 0.64 | |
| 0.44 | % |
| 0.46 | % |
Nonperforming assets to total assets | |
| 0.41 | |
| 0.38 | |
| 0.55 | |
| 0.38 | |
| 0.42 | |
Allowance for credit losses to non-performing loans | |
| 148.08 | |
| 158.54 | |
| 107.48 | |
| 137.66 | |
| 129.76 | |
14
METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES
| | As of and for the Three Months Ended | | As of and for the Six Months Ended |
| |||||||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | June 30, | | June 30, |
| |||||||
(Dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | | 2026 | | 2025 |
| |||||||
Balance, beginning of period | | $ | 26,700 | | $ | 27,843 | | $ | 17,940 | | $ | 18,748 | | $ | 18,592 | | $ | 18,744 | | $ | 18,112 | |
First IC Day 1 ACL balance | | | — | | | — | | | 9,885 | | | — | | | — | | | 9,885 | | | — | |
Net charge-offs/(recoveries): | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Construction and development | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | | | — | |
Commercial real estate | |
| (96) | |
| 185 | |
| (1) | |
| 110 | |
| 62 | |
| 170 | | | (83) | |
Commercial and industrial | |
| (3) | |
| 89 | |
| (5) | |
| 117 | |
| (2) | |
| 280 | | | 119 | |
Residential real estate | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | | | — | |
Consumer and other | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | | | — | |
Total net charge-offs/(recoveries) | |
| (99) | |
| 274 | |
| (6) | |
| 227 | |
| 60 | |
| 450 | |
| 36 | |
Provision (recovery) for loan losses | |
| (981) | |
| (869) | |
| 12 | |
| (581) | |
| 216 | |
| (336) | |
| 668 | |
Balance, end of period | | $ | 25,818 | | $ | 26,700 | | $ | 27,843 | | $ | 17,940 | | $ | 18,748 | | $ | 27,843 | | $ | 18,744 | |
Total loans at end of period(1) | | $ | 3,983,539 | | $ | 4,030,119 | | $ | 4,077,822 | | $ | 2,973,915 | | $ | 3,128,881 | | $ | 4,077,822 | | $ | 3,165,316 | |
Average loans(1) | | $ | 3,997,375 | | $ | 4,035,706 | | $ | 3,441,913 | | $ | 3,124,291 | | $ | 3,130,515 | | $ | 3,202,087 | | $ | 3,125,389 | |
Net charge-offs/(recoveries) to average loans | |
| (0.01) | % |
| 0.03 | % |
| (0.00) | % |
| 0.03 | % |
| 0.01 | % |
| 0.01 | % |
| 0.00 | % |
Allowance for loan losses to total loans | |
| 0.65 | |
| 0.66 | |
| 0.68 | |
| 0.60 | |
| 0.60 | |
| 0.68 | |
| 0.59 | |
(1) | Excludes loans held for sale. |
15