METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2026

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

Third Quarter 2026 Highlights:

Year-to-Date 2026 Highlights:

________________________

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

Results of Operations

Net Income

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

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

Noninterest Expense

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

Compared to the third quarter of 2025, noninterest expense during the third quarter of 2026 increased by $5.4 million, or 36.6%, primarily due to higher salaries and employee benefits, occupancy and equipment expense, data processing expense, security expense, loan expense, core deposit amortization expense, and merger-related expenses from the First IC acquisition that occurred in the fourth quarter of 2025.

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

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

Income Tax Expense

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

Balance Sheet

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

Investment Securities

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

Loans

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

Deposits

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

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

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

Asset Quality

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

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

Allowance for credit losses as a percentage of total loans was 0.65% at September 30, 2026, compared to 0.65% at June 30, 2026 and 0.60% at September 30, 2025. Allowance for credit losses as a percentage of nonperforming loans was 159.78% at September 30, 2026, compared to 114.63% and 137.66% at June 30, 2026 and September 30, 2025, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 27 full-service branch locations and two loan production offices in Alabama, California, Florida, Georgia, New York, New Jersey, Texas, and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

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

Contacts

Farid Tan

President and Interim Chief Financial Officer

770-455-4978

[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 shareholders' equity, tangible book value per share, efficiency ratio-operating are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholders' equity, book value per share, and efficiency ratio respectively. Adjusted return on average shareholders' equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles. Efficiency ratio-operating excludes merger-related expenses from noninterest expense. The reconciliation is included in the table below.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These disclosures should not be considered an alternative to GAAP. The computations of adjusted return on average shareholders' equity, tangible book value per share, and efficiency ratio-operating and the reconciliation of these measures to return on average shareholders' equity, book value per share, and efficiency ratio are set forth in the table below.

METROCITY BANKSHARES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

As of or For the Three Months Ended

As of or For the Nine Months Ended

(Dollars in thousands)

September 30,

2026

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

September 30,

2026

September 30,

2025

Return on average shareholders' equity reconciliation

Average shareholders' equity (GAAP)

568,112

554,588

543,732

470,299

436,619

555,567

429,035

Less: average accumulated other comprehensive income (loss)

(286)

(649)

1,679

3,593

5,552

(675)

9,099

Adjusted average shareholders' equity (non-GAAP)

568,398

555,237

542,053

466,706

431,067

556,242

419,936

Net income (GAAP)

24,299

22,131

22,314

18,139

17,270

68,744

50,393

Add: First IC-merger related expenses (net of tax effect)

195

1,238

2,831

222

1,535

650

Adjusted net income (non-GAAP)

24,384

22,326

23,552

20,970

17,492

70,279

51,043

Return on average shareholders' equity (GAAP)

16.97

16.01

16.64

15.30

15.69

16.54

15.69

Adjusted return on average shareholders' equity (non-GAAP)

17.02

16.13

17.62

17.83

16.10

16.89

16.25

Tangible book value per share reconciliation

Total shareholders' equity (GAAP)

583,930

567,854

554,156

544,184

445,888

583,930

445,888

Less: goodwill and core deposit intangible

67,720

68,039

68,357

68,675

—

67,720

—

Adjusted total shareholders' equity (non-GAAP)

516,210

499,815

485,799

475,509

445,888

516,210

445,888

Shares of common stock outstanding

28,781,229

28,660,042

28,817,967

25,537,746

28,781,229

25,537,746

Book value per share (GAAP)

20.29

19.73

19.34

18.88

17.46

20.29

17.46

Tangible book value per share (non-GAAP)

17.94

17.37

16.95

16.50

17.46

17.94

17.46

Efficiency Ratio reconciliation

Efficiency ratio (GAAP)

41.81

40.08

42.16

46.71

38.65

41.35

38.06

Impact of First IC-merger related expenses included in noninterest expense

(0.24)

(0.54)

(3.29)

(8.22)

(0.80)

(1.39)

(0.80)

Efficiency ratio-operating (non-GAAP)

41.57

39.54

38.87

38.49

37.85

39.96

37.26

METROCITY BANKSHARES, INC.

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands, except per share data)

2026

2025

2026

2025

Selected income statement data:

Interest income

69,727

70,405

70,990

60,257

54,003

211,122

160,571

Interest expense

26,169

26,364

26,503

24,332

22,211

79,036

66,047

Net interest income

43,558

44,041

44,487

35,925

31,792

132,086

94,524

Provision for credit losses

(72)

(792)

(813)

(39)

(543)

(1,677)

(279)

Noninterest income

4,384

5,755

6,357

7,817

6,178

16,496

17,367

Noninterest expense

20,044

19,957

21,438

20,671

14,674

61,439

42,586

Income tax expense

3,671

8,500

7,905

4,971

6,569

20,076

19,191

Net income

24,299

22,131

22,314

18,139

17,270

68,744

50,393

Per share data:

Basic income per share

0.84

0.77

0.78

0.69

0.68

2.39

1.98

Diluted income per share

0.84

0.76

0.77

0.68

0.67

2.37

1.96

Dividends per share

0.29

0.25

0.87

0.71

Book value per share (at period end)

20.29

19.73

19.34

18.89

17.46

20.29

17.46

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

17.94

17.37

16.95

16.50

17.46

17.94

17.46

Shares of common stock outstanding

28,781,229

28,660,042

28,817,967

25,537,746

28,781,229

25,537,746

Weighted average diluted shares

29,037,344

28,949,200

29,051,061

26,806,181

25,811,422

29,002,897

25,735,688

Performance ratios:

Return on average assets

2.12

1.96

1.80

1.89

1.99

1.87

Return on average equity

16.97

16.01

16.64

15.45

15.69

16.54

15.70

Adjusted return on average equity (1)

17.02

16.13

17.62

17.83

16.10

16.89

16.25

Dividend payout ratio

34.51

32.55

32.49

35.08

37.23

33.22

36.13

Yield on total loans

6.70

6.75

6.74

6.42

6.37

6.73

6.42

Yield on average earning assets

6.52

6.57

6.51

6.26

6.24

6.53

6.30

Cost of average interest-bearing liabilities

3.36

3.25

3.36

3.42

3.32

3.43

Cost of interest-bearing deposits

3.25

3.24

3.12

3.22

3.28

3.20

3.30

Net interest margin

4.07

4.11

4.08

3.73

3.68

4.09

3.71

Efficiency ratio (2)

41.81

40.08

42.16

46.71

38.65

41.35

38.06

Efficiency ratio - operating (1)(2)

41.57

39.54

38.87

38.49

37.85

39.96

37.26

Asset quality data (at period end):

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

(0.00)

(0.01)

0.03

(0.00)

0.03

(0.00)

0.02

Nonperforming assets to gross loans held for investment and OREO

0.52

0.60

0.45

0.64

0.47

0.52

0.47

ACL to nonperforming loans

159.78

114.63

158.54

107.48

137.66

159.78

137.66

ACL to loans held for investment

0.65

0.66

0.68

0.60

0.65

0.60

Balance sheet and capital ratios:

Gross loans held for investment to deposits

111.73

114.16

111.12

111.84

110.43

111.73

110.43

Noninterest bearing deposits to deposits

23.25

22.44

22.04

21.42

20.22

23.25

20.22

Investment securities to assets

0.89

0.99

0.96

1.38

0.94

0.89

0.94

Common equity to assets

12.70

12.56

11.82

11.42

12.29

12.70

12.29

Leverage ratio

11.50

11.08

10.47

10.00

12.21

11.50

12.21

Common equity tier 1 ratio

17.46

17.15

16.52

15.90

19.93

17.46

19.93

Tier 1 risk-based capital ratio

17.46

17.15

16.52

15.90

19.93

17.46

19.93

Total risk-based capital ratio

18.35

18.05

17.44

16.84

20.74

18.35

20.74

Mortgage and SBA loan data:

Mortgage loans serviced for others

429,484

463,501

496,552

702,586

538,675

429,484

538,675

Mortgage loan production

85,070

75,373

101,948

111,717

168,562

262,391

352,840

Mortgage loan sales

—

197,553

18,248

—

112,608

SBA/USDA loans serviced for others

676,228

682,172

699,028

685,481

460,720

676,228

460,720

SBA loan production

25,658

46,588

20,816

32,575

17,727

93,062

67,126

SBA loan sales

9,675

27,140

19,733

9,792

13,415

56,548

50,701

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

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

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of the Quarter Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2026

2025

ASSETS

Cash and due from banks

$ 301,716

254,368

373,956

370,832

213,941

Federal funds sold

15,298

12,322

13,645

12,844

13,217

Cash and cash equivalents

317,014

266,690

387,601

383,676

227,158

Equity securities

17,739

18,481

18,564

18,646

18,605

Securities available for sale (at fair value)

23,140

26,183

26,616

47,179

15,365

Loans held for investment

3,953,889

3,956,319

4,001,114

4,051,397

2,966,859

Allowance for credit losses

(25,753)

(25,818)

(26,700)

(27,843)

(17,940)

Loans less allowance for credit losses

3,928,136

3,930,501

3,974,414

4,023,554

2,948,919

Loans held for sale

—

1,350

—

9,741

231,259

Accrued interest receivable

20,387

20,115

20,299

20,298

16,912

Federal Home Loan Bank stock

21,112

23,487

27,565

22,693

Premises and equipment, net

26,091

29,619

29,633

29,879

17,836

Operating lease right-of-use asset

13,272

14,040

14,412

15,193

7,712

Other real estate owned, net

4,514

1,300

1,147

208

919

SBA servicing asset, net

10,962

11,180

11,267

10,601

6,988

Mortgage servicing asset, net

1,148

1,308

1,484

1,660

1,662

Bank owned life insurance

77,710

77,066

76,424

75,786

75,148

Goodwill

56,048

—

Core deposit intangible

11,672

11,991

12,309

12,627

—

Interest rate derivatives

4,259

4,791

4,970

6,343

9,435

Other assets

64,620

28,179

29,672

29,396

28,852

Total assets

4,597,824

4,519,954

4,688,347

4,768,400

3,629,463

LIABILITIES

Noninterest-bearing deposits

$ 828,282

782,972

799,190

780,828

544,439

Interest-bearing deposits

2,733,760

2,706,385

2,827,484

2,865,173

2,148,645

Total deposits

3,562,042

3,489,357

3,626,674

3,646,001

2,693,084

Federal Home Loan Bank advances

375,000

425,000

510,000

425,000

Operating lease liability

13,347

14,131

14,516

15,306

7,704

Accrued interest payable

5,800

7,537

10,200

10,731

3,567

Other liabilities

57,705

66,075

57,801

42,178

54,220

Total liabilities

4,013,894

3,952,100

4,134,191

4,224,216

3,183,575

SHAREHOLDERS' EQUITY

Preferred stock

—

Common stock

288

286

1,159

255

Additional paid-in capital

137,051

136,123

135,531

138,675

51,151

Retained earnings

447,429

431,518

417,750

402,684

390,971

Accumulated other comprehensive income

(838)

(75)

589

1,666

3,511

Total shareholders' equity

583,930

567,854

554,156

544,184

445,888

Total liabilities and shareholders' equity

4,597,824

4,519,954

4,688,347

4,768,400

3,629,463

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2026

2025

2026

2025

Interest and dividend income:

Loans, including fees

66,584

67,312

67,139

57,335

50,975

201,035

152,164

Other investment income

3,018

2,972

3,730

2,790

2,884

9,720

7,980

Federal funds sold

125

121

132

144

367

427

Total interest income

69,727

70,405

70,990

60,257

54,003

211,122

160,571

Interest expense:

Deposits

22,227

22,140

22,077

19,623

17,799

66,444

53,272

FHLB advances and other borrowings

3,942

4,224

4,426

4,709

4,412

12,592

12,775

Total interest expense

26,169

26,364

26,503

24,332

22,211

79,036

66,047

Net interest income

43,558

44,041

44,487

35,925

31,792

132,086

94,524

Provision (recovery) for credit losses

(72)

(792)

(813)

(39)

(543)

(1,677)

(279)

Net interest income after provision for loan losses

43,630

44,833

45,300

35,964

32,335

133,763

94,803

Noninterest income:

Service charges on deposit accounts

929

958

848

772

551

2,735

1,556

Other service charges, commissions and fees

1,537

1,428

1,581

1,748

2,376

4,546

5,592

Gain on sale of assets

—

Gain on sale of residential mortgage loans

—

2,808

166

—

1,144

Mortgage servicing income, net

234

271

306

504

516

811

1,915

Gain on sale of SBA loans

685

1,536

1,045

463

558

3,266

1,859

SBA servicing income, net

863

728

1,905

800

1,203

3,496

2,758

Other income

114

834

672

722

808

1,620

2,543

Total noninterest income

4,384

5,755

6,357

7,817

6,178

16,496

17,367

Noninterest expense:

Salaries and employee benefits

11,749

11,344

11,501

10,674

8,953

34,594

26,000

Occupancy and equipment

2,427

2,328

2,434

1,581

1,410

7,189

4,207

Data Processing

636

535

682

466

394

1,853

1,068

Advertising

310

178

223

180

161

711

477

Merger-related expenses

117

270

1,676

3,833

301

2,063

650

Other expenses

4,805

5,302

4,922

3,937

3,455

15,029

10,184

Total noninterest expense

20,044

19,957

21,438

20,671

14,674

61,439

42,586

Income before provision for income taxes

27,970

30,631

30,219

23,110

23,839

88,820

69,584

Provision for income taxes

3,671

8,500

7,905

4,971

6,569

20,076

19,191

Net income available to common shareholders

24,299

22,131

22,314

18,139

17,270

68,744

50,393

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES

Three Months Ended

September 30, 2026

June 30, 2026

September 30, 2025

Average

Interest and

Yield /

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

$ 254,091

$ 2,395

3.74

250,992

2,320

3.71

219,283

2,760

4.99

Investment securities

46,919

748

6.32

47,970

773

6.46

36,960

268

2.88

Total investments

301,010

3,143

4.15

298,962

3,093

4.15

256,243

3,028

4.69

Construction and development

72,091

1,319

7.26

58,374

1,059

7.28

29,130

613

8.35

Commercial real estate

1,420,660

28,813

8.05

1,454,209

29,466

8.13

812,759

17,239

8.42

Commercial and industrial

82,879

1,786

8.55

88,982

2,166

9.76

71,655

1,600

8.86

Residential real estate

2,365,761

34,657

5.81

2,395,849

34,610

5.79

2,261,108

31,480

5.52

Consumer and other

478

7.47

636

6.94

327

52.17

Gross loans (2)

3,941,869

66,584

6.70

3,998,050

67,312

6.75

3,174,979

50,975

6.37

Total earning assets

4,242,879

69,727

6.52

4,297,012

70,405

6.57

3,431,222

54,003

6.24

Noninterest-earning assets

314,856

278,512

193,365

Total assets

4,557,735

4,575,524

3,624,587

Interest-bearing liabilities:

NOW and savings deposits

280,738

1,647

2.33

278,175

1,579

2.28

188,576

1,476

3.11

Money market deposits

1,089,797

8,180

2.98

1,112,349

8,324

3.00

974,500

6,480

2.64

Time deposits

1,342,018

12,400

3.67

1,349,972

12,237

3.64

986,719

9,843

3.96

Total interest-bearing deposits

2,712,553

22,227

3.24

2,740,496

22,140

3.24

2,149,795

17,799

3.28

Borrowings

375,354

3,942

4.17

410,165

4,224

4.13

425,000

4,412

4.12

Total interest-bearing liabilities

3,087,907

26,169

3.36

3,150,661

26,364

3.36

2,574,795

22,211

3.42

Noninterest-bearing liabilities:

Noninterest-bearing deposits

805,577

779,925

538,755

Other noninterest-bearing liabilities

96,139

90,350

74,418

Total noninterest-bearing liabilities

901,716

870,275

613,173

Shareholders' equity

568,112

554,588

436,619

Total liabilities and shareholders' equity

4,557,735

4,575,524

3,624,587

Net interest income

43,558

44,041

31,792

Net interest spread

3.16

3.21

2.82

Net interest margin

4.07

4.11

3.68

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

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

METROCITY BANKSHARES, INC.

YTD AVERAGE BALANCES AND YIELDS/RATES

Nine Months Ended

September 30, 2026

September 30, 2025

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

$ 274,232

7,596

3.70

$ 203,740

7,706

5.06

Investment securities

51,967

2,491

6.41

35,363

701

2.65

Total investments

326,199

10,087

4.13

239,103

8,407

4.70

Construction and development

57,961

3,171

7.31

26,933

1,673

8.31

Commercial real estate

1,388,866

88,115

8.48

800,301

51,008

8.52

Commercial and industrial

86,123

5,524

8.58

71,905

4,732

8.80

Residential real estate

2,459,535

104,189

5.66

2,270,373

94,603

5.57

Consumer and other

653

7.37

323

148

61.26

Gross loans (2)

3,993,138

201,035

6.73

3,169,835

152,164

6.42

Total earning assets

4,319,337

211,122

6.53

3,408,938

160,571

6.30

Noninterest-earning assets

291,712

196,632

Total assets

4,611,049

3,605,570

Interest-bearing liabilities:

NOW and savings deposits

277,216

4,777

2.30

168,503

3,516

2.79

Money market deposits

1,125,703

24,010

2.85

1,005,777

19,617

2.61

Time deposits

1,369,594

37,657

3.68

986,618

30,139

4.08

Total interest-bearing deposits

2,772,513

66,444

3.20

2,160,898

53,272

3.30

Borrowings

407,064

12,592

4.14

413,853

12,775

4.13

Total interest-bearing liabilities

3,179,577

79,036

3.32

2,574,751

66,047

3.43

Noninterest-bearing liabilities:

Noninterest-bearing deposits

786,914

529,075

Other noninterest-bearing liabilities

88,991

72,709

Total noninterest-bearing liabilities

875,905

601,784

Shareholders' equity

555,567

429,035

Total liabilities and shareholders' equity

4,611,049

3,605,570

Net interest income

132,086

94,524

Net interest spread

3.21

2.87

Net interest margin

4.09

3.71

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

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

METROCITY BANKSHARES, INC.

LOAN DATA

As of the Quarter Ended

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

% of

(Dollars in thousands)

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Construction and development

$ 81,675

2.1

69,348

1.7

52,452

1.3

41,797

1.0

32,415

1.1

Commercial real estate

1,479,506

37.2

1,463,460

36.7

1,492,703

37.0

1,560,728

38.3

814,464

27.4

Commercial and industrial

81,729

2.1

84,999

2.1

91,877

2.3

96,360

2.4

69,430

2.3

Residential real estate

2,336,463

58.7

2,365,132

59.5

2,392,444

59.4

2,378,311

58.3

2,057,281

69.2

Consumer and other

340

—

600

—

643

—

627

—

325

—

Gross loans held for investment

3,979,713

100.0

3,983,539

100.0

4,030,119

100.0

4,077,822

100.0

2,973,915

100.0

Unearned income

(9,213)

(9,660)

(10,093)

(6,621)

(7,056)

Loan discounts

(16,611)

(17,560)

(18,912)

(19,804)

—

Allowance for credit losses

(25,753)

(25,818)

(26,700)

(27,843)

(17,940)

Net loans held for investment

3,928,136

3,930,501

3,974,414

4,023,554

2,948,919

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS

As of the Quarter Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2026

2025

Nonaccrual loans

15,042

17,435

16,824

25,906

13,032

Past due loans 90 days or more and still accruing

1,076

5,088

—

Total non-performing loans

16,118

22,523

16,841

25,906

13,032

Other real estate owned (1)

4,514

1,300

1,147

208

919

Total non-performing assets

20,632

23,823

17,988

26,114

13,951

Nonperforming loans to gross loans held for investment

0.41

0.57

0.42

0.64

0.44

Nonperforming assets to total assets

0.45

0.53

0.38

0.55

0.38

Allowance for credit losses to non-performing loans

159.78

114.63

158.54

107.48

137.66

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

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2026

2025

2026

2025

Balance, beginning of period

25,818

26,700

27,843

17,940

18,748

27,843

18,744

First IC Day 1 ACL balance

—

9,885

—

Net charge-offs/(recoveries):

Construction and development

—

Commercial real estate

(8)

(96)

185

(1)

110

171

Commercial and industrial

(3)

(5)

117

285

Residential real estate

—

Consumer and other

—

Total net charge-offs/(recoveries)

(11)

(99)

274

(6)

227

164

456

Provision (recovery) for loan losses

(76)

(981)

(869)

(581)

(1,926)

(348)

Balance, end of period

25,753

25,818

26,700

27,843

17,940

25,753

17,940

Total loans at end of period (1)

3,979,713

3,983,539

4,030,119

4,077,822

2,973,915

3,979,713

2,973,915

Average loans (1)

3,941,194

3,997,375

4,035,706

3,441,913

3,124,291

3,990,365

3,135,858

Net charge-offs/(recoveries) to average loans

(0.00)

(0.01)

0.03

(0.00)

0.03

0.00

0.02

Allowance for loan losses to total loans

0.65

0.66

0.68

0.60

0.65

0.60

(1) Excludes loans held for sale.

SOURCE MetroCity Bankshares, Inc.