METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2025

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

Third Quarter 2025 Highlights:

Year-to-Date 2025 Highlights:

Acquisition of First IC Corporation and First IC Bank

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

Results of Operations

Net Income

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

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

Noninterest Expense

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

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

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

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

Income Tax Expense

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

Balance Sheet

Total Assets

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

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

Loans

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

Deposits

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

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

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

Asset Quality

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

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

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

About MetroCity Bankshares, Inc.

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

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

Contacts

Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands, except per share data)

2025

2024

2025

2024

Selected income statement data:

Interest income

54,003

54,049

52,519

52,614

53,833

160,571

160,299

Interest expense

22,211

21,871

21,965

22,554

23,544

66,047

72,213

Net interest income

31,792

32,178

30,554

30,060

30,289

94,524

88,086

Provision for credit losses

(543)

129

135

202

582

(279)

314

Noninterest income

6,178

5,733

5,456

5,321

6,615

17,367

17,742

Noninterest expense

14,674

14,113

13,799

14,326

13,660

42,586

39,053

Income tax expense

6,569

6,843

5,779

4,618

5,961

19,191

18,192

Net income

17,270

16,826

16,297

16,235

16,701

50,393

48,269

Per share data:

Basic income per share

0.68

0.66

0.64

0.66

1.98

1.91

Diluted income per share

0.67

0.65

0.63

0.65

1.96

1.89

Dividends per share

0.25

0.23

0.20

0.71

0.60

Book value per share (at period end)

17.46

17.08

16.85

16.59

16.07

17.46

16.07

Shares of common stock outstanding

25,537,746

25,402,782

25,331,916

25,537,746

25,331,916

Weighted average diluted shares

25,811,422

25,715,206

25,707,989

25,659,483

25,674,858

25,735,688

25,591,072

Performance ratios:

Return on average assets

1.89

1.87

1.85

1.82

1.86

1.87

1.80

Return on average equity

15.69

15.74

15.67

15.84

16.26

15.70

16.27

Dividend payout ratio

37.23

35.01

36.14

36.18

30.58

36.13

31.66

Yield on total loans

6.37

6.49

6.40

6.31

6.43

6.42

6.41

Yield on average earning assets

6.24

6.34

6.31

6.25

6.36

6.30

6.36

Cost of average interest-bearing liabilities

3.42

3.39

3.48

3.55

3.69

3.43

3.77

Cost of interest-bearing deposits

3.28

3.25

3.36

3.45

3.61

3.30

3.74

Net interest margin

3.68

3.77

3.67

3.57

3.58

3.71

3.50

Efficiency ratio (1)

38.65

37.23

38.32

40.49

37.01

38.06

36.90

Asset quality data (at period end):

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

0.03

0.01

0.02

0.01

0.00

0.02

(0.00)

Nonperforming assets to gross loans held for investment and OREO

0.47

0.49

0.59

0.58

0.51

0.47

0.51

ACL to nonperforming loans

137.66

129.76

110.52

104.08

129.85

137.66

129.85

ACL to loans held for investment

0.60

0.59

0.60

Balance sheet and capital ratios:

Gross loans held for investment to deposits

110.19

116.34

114.73

115.66

113.67

110.19

113.67

Noninterest bearing deposits to deposits

20.22

20.41

19.73

19.60

20.29

20.22

20.29

Investment securities to assets

0.94

0.93

0.77

0.81

0.94

0.81

Common equity to assets

12.29

12.06

11.69

11.72

11.41

12.29

11.41

Leverage ratio

12.21

11.91

11.76

11.57

11.12

12.21

11.12

Common equity tier 1 ratio

19.93

19.91

19.23

19.17

19.12

19.93

19.12

Tier 1 risk-based capital ratio

19.93

19.91

19.23

19.17

19.12

19.93

19.12

Total risk-based capital ratio

20.74

20.78

20.09

20.05

20.03

20.74

20.03

Mortgage and SBA loan data:

Mortgage loans serviced for others

538,675

559,112

537,590

527,039

556,442

538,675

556,442

Mortgage loan production

168,562

93,156

91,122

103,250

122,355

352,840

310,427

Mortgage loan sales

18,248

54,309

40,051

—

54,193

112,608

187,490

SBA/USDA loans serviced for others

460,720

480,867

474,143

479,669

487,359

460,720

487,359

SBA loan production

17,777

29,337

20,012

35,730

35,839

67,126

55,533

SBA loan sales

13,415

20,707

16,579

19,236

28,858

50,701

52,923

______________________________________________

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

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of the Quarter Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2025

2024

ASSETS

Cash and due from banks

213,941

273,596

272,317

236,338

278,752

Federal funds sold

13,217

12,415

12,738

13,537

12,462

Cash and cash equivalents

227,158

286,011

285,055

249,875

291,214

Equity securities

18,605

18,481

18,440

10,300

10,568

Securities available for sale (at fair value)

15,365

15,030

15,426

17,391

18,206

Loans held for investment

2,960,436

3,121,534

3,132,535

3,157,935

3,087,826

Allowance for credit losses

(17,940)

(18,748)

(18,592)

(18,744)

(18,589)

Loans less allowance for credit losses

2,942,496

3,102,786

3,113,943

3,139,191

3,069,237

Loans held for sale

237,682

4,988

34,532

—

4,598

Accrued interest receivable

16,912

16,528

16,498

15,858

15,667

Federal Home Loan Bank stock

22,693

20,251

Premises and equipment, net

17,836

17,872

18,045

18,276

18,158

Operating lease right-of-use asset

7,712

8,197

7,906

7,850

7,171

Foreclosed real estate, net

919

744

1,707

427

1,515

SBA servicing asset, net

6,988

6,823

7,167

7,274

7,309

Mortgage servicing asset, net

1,662

1,676

1,476

1,409

1,296

Bank owned life insurance

75,148

74,520

73,900

73,285

72,670

Interest rate derivatives

9,435

12,656

17,166

21,790

18,895

Other assets

28,852

26,683

25,771

10,868

12,451

Total assets

3,629,463

3,615,688

3,659,725

3,594,045

3,569,206

LIABILITIES

Noninterest-bearing deposits

544,439

548,906

539,975

536,276

552,472

Interest-bearing deposits

2,148,645

2,140,587

2,197,055

2,200,522

2,170,648

Total deposits

2,693,084

2,689,493

2,737,030

2,736,798

2,723,120

Federal Home Loan Bank advances

425,000

375,000

Operating lease liability

7,704

8,222

7,962

7,940

7,295

Accrued interest payable

3,567

3,438

3,487

3,498

3,593

Other liabilities

54,220

53,435

58,277

49,456

53,013

Total liabilities

3,183,575

3,179,588

3,231,756

3,172,692

3,162,021

SHAREHOLDERS' EQUITY

Preferred stock

—

Common stock

255

254

253

Additional paid-in capital

51,151

50,212

49,645

49,216

47,481

Retained earnings

390,971

380,046

369,110

358,704

348,343

Accumulated other comprehensive income

3,511

5,587

8,960

13,179

11,108

Total shareholders' equity

445,888

436,100

427,969

421,353

407,185

Total liabilities and shareholders' equity

3,629,463

3,615,688

3,659,725

3,594,045

3,569,206

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2025

2024

2025

2024

Interest and dividend income:

Loans, including fees

50,975

50,936

50,253

49,790

50,336

152,164

150,980

Other investment income

2,884

2,970

2,126

2,663

3,417

7,980

9,175

Federal funds sold

144

143

140

161

427

144

Total interest income

54,003

54,049

52,519

52,614

53,833

160,571

160,299

Interest expense:

Deposits

17,799

17,496

17,977

18,618

19,602

53,272

61,442

FHLB advances and other borrowings

4,412

4,375

3,988

3,936

3,942

12,775

10,771

Total interest expense

22,211

21,871

21,965

22,554

23,544

66,047

72,213

Net interest income

31,792

32,178

30,554

30,060

30,289

94,524

88,086

Provision for credit losses

(543)

129

135

202

582

(279)

314

Net interest income after provision for loan losses

32,335

32,049

30,419

29,858

29,707

94,803

87,772

Noninterest income:

Service charges on deposit accounts

551

505

500

563

531

1,556

1,510

Other service charges, commissions and fees

2,376

1,620

1,596

1,748

1,915

5,592

5,100

Gain on sale of residential mortgage loans

166

579

399

—

526

1,144

1,925

Mortgage servicing income, net

516

781

618

690

422

1,915

1,758

Gain on sale of SBA loans

558

643

658

811

1,083

1,859

2,134

SBA servicing income, net

1,203

642

913

956

1,231

2,758

3,287

Other income

808

963

772

553

907

2,543

2,028

Total noninterest income

6,178

5,733

5,456

5,321

6,615

17,367

17,742

Noninterest expense:

Salaries and employee benefits

8,953

8,554

8,493

9,277

8,512

26,000

23,930

Occupancy and equipment

1,410

1,380

1,417

1,406

1,430

4,207

4,118

Data Processing

394

329

345

335

311

1,068

958

Advertising

161

149

167

160

145

477

474

Other expenses

3,756

3,701

3,377

3,148

3,262

10,834

9,573

Total noninterest expense

14,674

14,113

13,799

14,326

13,660

42,586

39,053

Income before provision for income taxes

23,839

23,669

22,076

20,853

22,662

69,584

66,461

Provision for income taxes

6,569

6,843

5,779

4,618

5,961

19,191

18,192

Net income available to common shareholders

17,270

16,826

16,297

16,235

16,701

50,393

48,269

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

Average

Interest and

Yield /

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

219,283

2,760

4.99

231,803

2,848

4.93

220,826

3,308

5.96

Investment securities

36,960

268

2.88

37,040

265

2.87

31,309

189

2.40

Total investments

256,243

3,028

4.69

268,843

3,113

4.64

252,135

3,497

5.52

Construction and development

29,130

613

8.35

28,283

580

8.23

14,170

302

8.48

Commercial real estate

812,759

17,239

8.42

807,897

17,612

8.74

740,720

17,132

9.20

Commercial and industrial

71,655

1,600

8.86

71,274

1,544

8.69

64,584

1,593

9.81

Residential real estate

2,261,108

31,480

5.52

2,242,456

31,137

5.57

2,295,573

31,267

5.42

Consumer and other

327

52.17

365

69.23

394

42.41

Gross loans (2)

3,174,979

50,975

6.37

3,150,275

50,936

6.49

3,115,441

50,336

6.43

Total earning assets

3,431,222

54,003

6.24

3,419,118

54,049

6.34

3,367,576

53,833

6.36

Noninterest-earning assets

193,365

199,302

207,093

Total assets

3,624,587

3,618,420

3,574,669

Interest-bearing liabilities:

NOW and savings deposits

188,576

1,476

3.11

162,810

1,089

2.68

119,759

770

2.56

Money market deposits

974,500

6,480

2.64

1,032,754

6,815

2.65

982,517

6,156

2.49

Time deposits

986,719

9,843

3.96

966,678

9,592

3.98

1,057,956

12,676

4.77

Total interest-bearing deposits

2,149,795

17,799

3.28

2,162,242

17,496

3.25

2,160,232

19,602

3.61

Borrowings

425,000

4,412

4.12

426,173

4,375

4.12

375,677

3,942

4.17

Total interest-bearing liabilities

2,574,795

22,211

3.42

2,588,415

21,871

3.39

2,535,909

23,544

3.69

Noninterest-bearing liabilities:

Noninterest-bearing deposits

538,755

529,130

542,939

Other noninterest-bearing liabilities

74,418

72,231

87,156

Total noninterest-bearing liabilities

613,173

601,361

630,095

Shareholders' equity

436,619

428,644

408,665

Total liabilities and shareholders' equity

3,624,587

3,618,420

3,574,669

Net interest income

31,792

32,178

30,289

Net interest spread

2.82

2.95

2.67

Net interest margin

3.68

3.77

3.58

______________________________________________

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

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

METROCITY BANKSHARES, INC.

YTD AVERAGE BALANCES AND YIELDS/RATES

Nine Months Ended

September 30, 2025

September 30, 2024

Average

Interest and

Yield /

Average

Interest and

Yield /

(Dollars in thousands)

Balance

Fees

Rate

Balance

Fees

Rate

Earning Assets:

Federal funds sold and other investments (1)

203,740

7,706

5.06

187,398

8,729

6.22

Investment securities

35,363

701

2.65

31,428

590

2.51

Total investments

239,103

8,407

4.70

218,826

9,319

5.69

Construction and development

26,933

1,673

8.31

16,871

1,127

8.92

Commercial real estate

800,301

51,008

8.52

731,573

50,270

9.18

Commercial and industrial

71,905

4,732

8.80

66,116

4,894

9.89

Residential real estate

2,270,373

94,603

5.57

2,332,271

94,565

5.42

Consumer and other

323

148

61.26

311

124

53.26

Gross loans (2)

3,169,835

152,164

6.42

3,147,142

150,980

6.41

Total earning assets

3,408,938

160,571

6.30

3,365,968

160,299

6.36

Noninterest-earning assets

196,632

214,756

Total assets

3,605,570

3,580,724

Interest-bearing liabilities:

NOW and savings deposits

168,503

3,516

2.79

140,539

2,852

2.71

Money market deposits

1,005,777

19,617

2.61

1,019,394

21,984

2.88

Time deposits

986,618

30,139

4.08

1,034,256

36,606

4.73

Total interest-bearing deposits

2,160,898

53,272

3.30

2,194,189

61,442

3.74

Borrowings

413,853

12,775

4.13

362,965

10,771

3.96

Total interest-bearing liabilities

2,574,751

66,047

3.43

2,557,154

72,213

3.77

Noninterest-bearing liabilities:

Noninterest-bearing deposits

529,075

536,807

Other noninterest-bearing liabilities

72,709

90,459

Total noninterest-bearing liabilities

601,784

627,266

Shareholders' equity

429,035

396,304

Total liabilities and shareholders' equity

3,605,570

3,580,724

Net interest income

94,524

88,086

Net interest spread

2.87

2.59

Net interest margin

3.71

3.50

______________________________________________

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

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

METROCITY BANKSHARES, INC.

LOAN DATA

As of the Quarter Ended

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

% of

(Dollars in thousands)

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Amount

Total

Construction and development

32,415

1.1

30,149

1.0

28,403

0.9

21,569

0.7

16,539

0.5

Commercial real estate

814,464

27.5

803,384

25.7

792,149

25.2

762,033

24.1

738,929

23.9

Commercial and industrial

69,430

2.3

73,832

2.3

71,518

2.3

78,220

2.5

63,606

2.1

Residential real estate

2,050,858

69.1

2,221,316

71.0

2,248,028

71.6

2,303,234

72.7

2,276,210

73.5

Consumer and other

325

—

200

—

260

—

215

—

Gross loans held for investment

2,967,492

100.0

3,128,881

100.0

3,140,165

100.0

3,165,316

100.0

3,095,499

100.0

Unearned income

(7,056)

(7,347)

(7,630)

(7,381)

(7,673)

Allowance for credit losses

(17,940)

(18,748)

(18,592)

(18,744)

(18,589)

Net loans held for investment

2,942,496

3,102,786

3,113,943

3,139,191

3,069,237

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS

As of the Quarter Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2025

2024

Nonaccrual loans

13,032

14,448

16,823

18,010

14,316

Past due loans 90 days or more and still accruing

—

Total non-performing loans

13,032

14,448

16,823

18,010

14,316

Other real estate owned

919

744

1,707

427

1,515

Total non-performing assets

13,951

15,192

18,530

18,437

15,831

Nonperforming loans to gross loans held for investment

0.44

0.46

0.54

0.57

0.46

Nonperforming assets to total assets

0.38

0.42

0.51

0.44

Allowance for credit losses to non-performing loans

137.66

129.76

110.52

104.08

129.85

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2025

2024

2025

2024

Balance, beginning of period

18,748

18,592

18,744

18,589

17,960

18,744

18,112

Net charge-offs/(recoveries):

Construction and development

—

Commercial real estate

110

(1)

—

171

(83)

Commercial and industrial

117

(2)

170

285

Residential real estate

—

Consumer and other

—

Total net charge-offs/(recoveries)

227

169

456

(63)

Provision for loan losses

(581)

216

254

653

(348)

414

Balance, end of period

17,940

18,748

18,592

18,744

18,589

17,940

18,589

Total loans at end of period (1)

2,967,492

3,128,881

3,140,165

3,165,316

3,095,499

2,967,492

3,095,499

Average loans (1)

3,121,079

3,130,515

3,167,085

3,135,093

3,113,142

3,134,252

3,122,273

Net charge-offs/(recoveries) to average loans

0.03

0.01

0.02

0.01

0.00

0.02

(0.00)

Allowance for loan losses to total loans

0.60

0.59

0.60

______________________________________________

(1) Excludes loans held for sale.

SOURCE MetroCity Bankshares, Inc.