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

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

Fourth Quarter 2025 Highlights:

Year-to-Date 2025 Highlights:

______________________________________________

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

Acquisition of First IC Corporation and First IC Bank

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

Results of Operations

Net Income

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

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

Noninterest Income

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

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

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

Noninterest Expense

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

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

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

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

Income Tax Expense

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

Balance Sheet

Total Assets

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

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

Loans

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

Deposits

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

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

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

Asset Quality

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

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

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

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

About MetroCity Bankshares, Inc.

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

Forward-Looking Statements

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

Contacts

Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

[email protected]

Explanation of Certain Unaudited Non-GAAP Financial Measures

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

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

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

METROCITY BANKSHARES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

As of or For the Three Months Ended

As of or For the Year Ended

(Dollars in thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Return on average

shareholder's equity

reconciliation

Average shareholder's

equity (GAAP)

470,299

436,619

428,644

421,679

407,705

439,436

399,170

Less: average

accumulated other

comprehensive income

(3,593)

(5,552)

(8,737)

(13,089)

(10,888)

(7,711)

(19,894)

Adjusted average

shareholder's equity

(non-GAAP)

466,706

431,067

419,907

408,590

396,817

431,725

379,276

Net income (GAAP)

18,312

17,270

16,826

16,297

16,235

68,705

64,504

Add: First IC-merger

related expenses (net of

tax effect)

2,657

222

246

194

—

3,320

—

Adjusted net income

(non-GAAP)

20,969

17,492

17,072

16,491

16,235

72,025

64,504

Return on average

shareholder's equity

(GAAP)

15.45

15.69

15.74

15.67

15.84

15.63

16.16

Adjusted return on

average shareholder's

equity (non-GAAP)

17.83

16.10

16.31

16.37

16.28

16.68

17.01

Tangible book value per

share reconciliation

Total shareholder's equity

(GAAP)

544,357

445,888

436,100

427,969

421,353

544,357

421,353

Less: goodwill and core

deposit intangible

(68,675)

—

(68,675)

—

Adjust total shareholder's

equity (non-GAAP)

475,682

445,888

436,100

427,969

421,353

475,682

421,353

Shares of common stock

outstanding

28,817,967

25,537,746

25,402,782

28,817,967

25,402,782

Book value per share

(GAAP)

18.89

17.46

17.08

16.85

16.59

18.89

16.59

Tangible book value per

share (non-GAAP)

16.51

17.46

17.08

16.85

16.59

16.51

16.59

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA

As of and for the Three Months Ended

As of and for the Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands, except per share data)

2025

2024

2025

2024

Selected income statement data:

Interest income

60,257

54,003

54,049

52,519

52,614

220,828

212,913

Interest expense

24,332

22,211

21,871

21,965

22,554

90,379

94,767

Net interest income

35,925

31,792

32,178

30,554

30,060

130,449

118,146

Provision for credit losses

(39)

(543)

129

135

202

(318)

516

Noninterest income

7,817

6,178

5,733

5,456

5,321

25,184

23,063

Noninterest expense

20,434

14,674

14,113

13,799

14,326

63,020

53,379

Income tax expense

5,035

6,569

6,843

5,779

4,618

24,226

22,810

Net income

18,312

17,270

16,826

16,297

16,235

68,705

64,504

Per share data:

Basic income per share

0.69

0.68

0.66

0.64

2.67

2.55

Diluted income per share

0.68

0.67

0.65

0.63

2.64

2.52

Dividends per share

0.25

0.23

0.96

0.83

Book value per share (at period end)

18.89

17.46

17.08

16.85

16.59

18.89

16.59

Tangible book value per share (at period end) (1)

16.51

17.46

17.08

16.85

16.59

16.51

16.59

Shares of common stock outstanding

28,817,967

25,537,746

25,402,782

28,817,967

25,402,782

Weighted average diluted shares

26,806,181

25,811,422

25,715,206

25,707,989

25,659,483

26,005,582

25,582,121

Performance ratios:

Return on average assets

1.80

1.89

1.87

1.85

1.82

1.85

1.81

Return on average equity

15.45

15.69

15.74

15.67

15.84

15.63

16.16

Dividend payout ratio

35.08

37.23

35.01

36.14

36.18

35.85

32.80

Yield on total loans

6.42

6.37

6.49

6.40

6.31

6.42

6.38

Yield on average earning assets

6.26

6.24

6.34

6.31

6.25

6.29

6.33

Cost of average interest-bearing liabilities

3.36

3.42

3.39

3.48

3.55

3.41

3.72

Cost of interest-bearing deposits

3.22

3.28

3.25

3.36

3.45

3.28

3.67

Net interest margin

3.73

3.68

3.77

3.67

3.57

3.72

3.51

Efficiency ratio (2)

46.71

38.65

37.23

38.32

40.49

37.80

Asset quality data (at period end):

Net charge-offs/(recoveries) to average loans held for investment

(0.00)

0.03

0.01

0.02

0.01

0.00

Nonperforming assets to gross loans held for investment and OREO

0.64

0.47

0.49

0.59

0.58

0.64

0.58

ACL to nonperforming loans

107.48

137.66

129.76

110.52

104.08

107.48

104.08

ACL to loans held for investment

0.68

0.60

0.59

0.68

0.59

Balance sheet and capital ratios:

Gross loans held for investment to deposits

111.84

110.43

116.34

114.73

115.66

111.84

115.66

Noninterest bearing deposits to deposits

21.42

20.22

20.41

19.73

19.60

21.42

19.60

Investment securities to assets

1.38

0.94

0.93

0.77

1.38

0.77

Common equity to assets

9.98

12.29

12.06

11.69

11.72

9.98

11.72

Leverage ratio

10.00

12.21

11.91

11.76

11.57

10.00

11.42

Common equity tier 1 ratio

15.90

19.93

19.91

19.23

19.17

15.90

19.17

Tier 1 risk-based capital ratio

15.90

19.93

19.91

19.23

19.17

15.90

19.17

Total risk-based capital ratio

16.84

20.74

20.78

20.09

20.05

16.84

20.05

Mortgage and SBA loan data:

Mortgage loans serviced for others

702,586

538,675

559,112

537,590

527,039

702,586

527,039

Mortgage loan production

111,717

168,562

93,156

91,122

103,250

464,557

413,677

Mortgage loan sales

197,553

18,248

54,309

40,051

—

310,161

187,490

SBA/USDA loans serviced for others

685,481

460,720

480,867

474,143

479,669

685,481

479,669

SBA loan production

32,575

17,727

29,337

20,012

35,730

100,051

90,815

SBA loan sales

9,792

13,415

20,707

16,579

19,236

60,493

72,159

(1)

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

(2)

Represents noninterest expense divided by the sum of net interest income plus noninterest income.

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of the Quarter Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2024

ASSETS

Cash and due from banks

370,832

213,941

273,596

272,317

236,338

Federal funds sold

12,844

13,217

12,415

12,738

13,537

Cash and cash equivalents

383,676

227,158

286,011

285,055

249,875

Equity securities

18,646

18,605

18,481

18,440

10,300

Securities available for sale (at fair value)

47,179

15,365

15,030

15,426

17,391

Loans held for investment

4,051,397

2,966,859

3,121,534

3,132,535

3,157,935

Allowance for credit losses

(27,843)

(17,940)

(18,748)

(18,592)

(18,744)

Loans less allowance for credit losses

4,023,554

2,948,919

3,102,786

3,113,943

3,139,191

Loans held for sale

9,741

231,259

4,988

34,532

—

Accrued interest receivable

20,298

16,912

16,528

16,498

15,858

Federal Home Loan Bank stock

27,565

22,693

20,251

Premises and equipment, net

29,879

17,836

17,872

18,045

18,276

Operating lease right-of-use asset

15,193

7,712

8,197

7,906

7,850

Foreclosed real estate, net

208

919

744

1,707

427

SBA servicing asset, net

10,601

6,988

6,823

7,167

7,274

Mortgage servicing asset, net

1,660

1,662

1,676

1,476

1,409

Bank owned life insurance

75,786

75,148

74,520

73,900

73,285

Goodwill

56,048

—

Core deposit intangible

12,627

—

Interest rate derivatives

6,343

9,435

12,656

17,166

21,790

Other assets

29,391

28,852

26,683

25,771

10,868

Total assets

4,768,395

3,629,463

3,615,688

3,659,725

3,594,045

LIABILITIES

Noninterest-bearing deposits

780,828

544,439

548,906

539,975

536,276

Interest-bearing deposits

2,865,173

2,148,645

2,140,587

2,197,055

2,200,522

Total deposits

3,646,001

2,693,084

2,689,493

2,737,030

2,736,798

Federal Home Loan Bank advances

510,000

425,000

375,000

Operating lease liability

15,306

7,704

8,222

7,962

7,940

Accrued interest payable

10,731

3,567

3,438

3,487

3,498

Other liabilities

42,000

54,220

53,435

58,277

49,456

Total liabilities

4,224,038

3,183,575

3,179,588

3,231,756

3,172,692

SHAREHOLDERS' EQUITY

Preferred stock

—

Common stock

1,159

255

254

Additional paid-in capital

138,675

51,151

50,212

49,645

49,216

Retained earnings

402,857

390,971

380,046

369,110

358,704

Accumulated other comprehensive income

1,666

3,511

5,587

8,960

13,179

Total shareholders' equity

544,357

445,888

436,100

427,969

421,353

Total liabilities and shareholders' equity

4,768,395

3,629,463

3,615,688

3,659,725

3,594,045

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2024

2025

2024

Interest and dividend income:

Loans, including fees

57,335

50,975

50,936

50,253

49,790

209,499

200,770

Other investment income

2,790

2,884

2,970

2,126

2,663

10,770

11,838

Federal funds sold

132

144

143

140

161

559

305

Total interest income

60,257

54,003

54,049

52,519

52,614

220,828

212,913

Interest expense:

Deposits

19,623

17,799

17,496

17,977

18,618

72,895

80,060

FHLB advances and other borrowings

4,709

4,412

4,375

3,988

3,936

17,484

14,707

Total interest expense

24,332

22,211

21,871

21,965

22,554

90,379

94,767

Net interest income

35,925

31,792

32,178

30,554

30,060

130,449

118,146

Provision for credit losses

(39)

(543)

129

135

202

(318)

516

Net interest income after provision for loan losses

35,964

32,335

32,049

30,419

29,858

130,767

117,630

Noninterest income:

Service charges on deposit accounts

772

551

505

500

563

2,328

2,073

Other service charges, commissions and fees

1,748

2,376

1,620

1,596

1,748

7,340

6,848

Gain on sale of residential mortgage loans

2,808

166

579

399

—

3,952

1,914

Mortgage servicing income, net

504

516

781

618

690

2,419

2,448

Gain on sale of SBA loans

463

558

643

658

811

2,322

2,945

SBA servicing income, net

800

1,203

642

913

956

3,558

4,243

Other income

722

808

963

772

553

3,265

2,592

Total noninterest income

7,817

6,178

5,733

5,456

5,321

25,184

23,063

Noninterest expense:

Salaries and employee benefits

10,674

8,953

8,554

8,493

9,277

36,674

33,207

Occupancy and equipment

1,581

1,410

1,380

1,417

1,406

5,788

5,524

Data Processing

466

394

329

345

335

1,534

1,293

Advertising

180

161

149

167

160

657

634

Merger-related expenses

3,596

301

333

262

—

4,492

—

Other expenses

3,937

3,455

3,368

3,115

3,148

13,875

12,721

Total noninterest expense

20,434

14,674

14,113

13,799

14,326

63,020

53,379

Income before provision for income taxes

23,347

23,839

23,669

22,076

20,853

92,931

87,314

Provision for income taxes

5,035

6,569

6,843

5,779

4,618

24,226

22,810

Net income available to common shareholders

18,312

17,270

16,826

16,297

16,235

68,705

64,504

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES

Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

Average

Interest and

Yield /

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

221,304

2,551

4.57

219,283

2,760

4.99

180,628

2,560

5.64

Investment securities

49,212

371

2.99

36,960

268

2.88

31,208

264

3.37

Total investments

270,516

2,922

4.29

256,243

3,028

4.69

211,836

2,824

5.30

Construction and development

35,440

692

7.75

29,130

613

8.35

17,974

384

8.50

Commercial real estate

1,062,523

22,717

8.48

812,759

17,239

8.42

757,937

16,481

8.65

Commercial and industrial

79,867

1,731

8.60

71,655

1,600

8.86

73,468

1,703

9.22

Residential real estate

2,367,289

32,141

5.39

2,261,108

31,480

5.52

2,287,731

31,172

5.42

Consumer and other

441

48.58

327

52.17

282

70.54

Gross loans (2)

3,545,560

57,335

6.42

3,174,979

50,975

6.37

3,137,392

49,790

6.31

Total earning assets

3,816,076

60,257

6.26

3,431,222

54,003

6.24

3,349,228

52,614

6.25

Noninterest-earning assets

212,002

193,365

192,088

Total assets

4,028,078

3,624,587

3,541,316

Interest-bearing liabilities:

NOW and savings deposits

238,695

1,603

2.66

188,576

1,476

3.11

133,728

685

2.04

Money market deposits

1,027,611

6,895

2.66

974,500

6,480

2.64

991,207

6,347

2.55

Time deposits

1,151,537

11,125

3.83

986,719

9,843

3.96

1,025,049

11,586

4.50

Total interest-bearing deposits

2,417,843

19,623

3.22

2,149,795

17,799

3.28

2,149,984

18,618

3.45

Borrowings

453,928

4,709

4.12

425,000

4,412

4.12

375,000

3,936

4.18

Total interest-bearing liabilities

2,871,771

24,332

3.36

2,574,795

22,211

3.42

2,524,984

22,554

3.55

Noninterest-bearing liabilities:

Noninterest-bearing deposits

614,242

538,755

533,931

Other noninterest-bearing liabilities

71,766

74,418

74,696

Total noninterest-bearing liabilities

686,008

613,173

608,627

Shareholders' equity

470,299

436,619

407,705

Total liabilities and shareholders' equity

4,028,078

3,624,587

3,541,316

Net interest income

35,925

31,792

30,060

Net interest spread

2.90

2.82

2.70

Net interest margin

3.73

3.68

3.57

______________________________________________

(1)

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

(2)

Average loan balances include nonaccrual loans and loans held for sale.

METROCITY BANKSHARES, INC.

YTD AVERAGE BALANCES AND YIELDS/RATES

Year Ended

December 31, 2025

December 31, 2024

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

208,059

10,257

4.93

185,696

11,289

6.08

Investment securities

38,826

1,072

2.76

31,373

854

2.72

Total investments

246,885

11,329

4.59

217,069

12,143

5.59

Construction and development

29,061

2,365

8.14

17,148

1,511

8.81

Commercial real estate

865,860

73,725

8.51

738,200

66,751

9.04

Commercial and industrial

73,896

6,462

8.74

67,964

6,597

9.71

Residential real estate

2,294,620

126,744

5.52

2,321,075

125,737

5.42

Consumer and other

353

203

57.51

304

174

57.24

Gross loans (2)

3,263,790

209,499

6.42

3,144,691

200,770

6.38

Total earning assets

3,510,675

220,828

6.29

3,361,760

212,913

6.33

Noninterest-earning assets

199,348

209,058

Total assets

3,710,023

3,570,818

Interest-bearing liabilities:

NOW and savings deposits

186,114

5,119

2.75

138,827

3,537

2.55

Money market deposits

1,011,090

26,512

2.62

1,012,309

28,331

2.80

Time deposits

1,027,849

41,264

4.01

1,031,942

48,192

4.67

Total interest-bearing deposits

2,225,053

72,895

3.28

2,183,078

80,060

3.67

Borrowings

423,883

17,484

4.12

365,990

14,707

4.02

Total interest-bearing liabilities

2,648,936

90,379

3.41

2,549,068

94,767

3.72

Noninterest-bearing liabilities:

Noninterest-bearing deposits

549,337

536,084

Other noninterest-bearing liabilities

72,314

86,496

Total noninterest-bearing liabilities

621,651

622,580

Shareholders' equity

439,436

399,170

Total liabilities and shareholders' equity

3,710,023

3,570,818

Net interest income

130,449

118,146

Net interest spread

2.88

2.61

Net interest margin

3.72

3.51

______________________________________________

(1)

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

(2)

Average loan balances include nonaccrual loans and loans held for sale.

METROCITY BANKSHARES, INC.

LOAN DATA

As of the Quarter Ended

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

% of

(Dollars in thousands)

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Construction and development

41,796

1.0

32,415

1.1

30,149

1.0

28,403

0.9

21,569

0.7

Commercial real estate

1,560,728

38.3

814,464

27.4

803,384

25.7

792,149

25.2

762,033

24.1

Commercial and industrial

96,360

2.4

69,430

2.3

73,832

2.3

71,518

2.3

78,220

2.5

Residential real estate

2,378,311

58.3

2,057,281

69.2

2,221,316

71.0

2,248,028

71.6

2,303,234

72.7

Consumer and other

627

—

325

—

200

—

260

—

Gross loans held for investment

4,077,822

100.0

2,973,915

100.0

3,128,881

100.0

3,140,165

100.0

3,165,316

100.0

Unearned income

(6,621)

(7,056)

(7,347)

(7,630)

(7,381)

Loan discounts

(19,804)

—

Allowance for credit losses

(27,843)

(17,940)

(18,748)

(18,592)

(18,744)

Net loans held for investment

4,023,554

2,948,919

3,102,786

3,113,943

3,139,191

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS

As of the Quarter Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2024

Nonaccrual loans

25,906

13,032

14,448

16,823

18,010

Past due loans 90 days or more and still accruing

—

Total non-performing loans

25,906

13,032

14,448

16,823

18,010

Other real estate owned

208

919

744

1,707

427

Total non-performing assets

26,114

13,951

15,192

18,530

18,437

Nonperforming loans to gross loans held for investment

0.64

0.44

0.46

0.54

0.57

Nonperforming assets to total assets

0.55

0.38

0.42

0.51

Allowance for credit losses to non-performing loans

107.48

137.66

129.76

110.52

104.08

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES

As of and for the Three Months Ended

As of and for the Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2024

2025

2024

Balance, beginning of period

17,940

18,748

18,592

18,744

18,589

18,744

18,112

First IC Day 1 ACL balance

9,885

—

9,885

—

Net charge-offs/(recoveries):

Construction and development

—

Commercial real estate

(1)

110

(1)

—

170

(83)

Commercial and industrial

(5)

117

(2)

170

280

119

Residential real estate

—

Consumer and other

—

Total net charge-offs/(recoveries)

(6)

227

169

450

Provision for loan losses

(581)

216

254

(336)

668

Balance, end of period

27,843

17,940

18,748

18,592

18,744

27,843

18,744

Total loans at end of period (1)

4,077,822

2,973,915

3,128,881

3,140,165

3,165,316

4,077,822

3,165,316

Average loans (1)

3,441,913

3,124,291

3,130,515

3,167,085

3,135,093

3,202,087

3,125,389

Net charge-offs/(recoveries) to average loans

(0.00)

0.03

0.01

0.02

0.01

0.00

Allowance for loan losses to total loans

0.68

0.60

0.59

0.68

0.59

______________________________________________

(1)

Excludes loans held for sale.

SOURCE MetroCity Bankshares, Inc.