Douglas Rissing/iStock via Getty Images Dear Partners and Friends: The major indices followed a strong second quarter with a strong third quarter. Smaller stocks performed the best in the quarter with the Russell Microcap rising 17.0% and the Russell 2000 increasing 12.4%, while the DJIA rose only 5.6%. The NASDAQ and S&P500 rose 11.2% and 8.2%, respectively in Q3. Cedar Creek was up 9.9% in the third quarter, net of fees and expenses. Year to date, Cedar Creek was up 26.5%, outperforming all the major ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) MetroCity Bankshares reported an increase in net income for the third quarter of 2025, demonstrating improved profitability metrics such as return on average assets. However, the efficiency ratio slightly worsened, and the net interest margin experienced a minor contraction compared to the previous quarter. Total loans showed notable growth | Metric | Q3 2025 | Q2 2025 | Q3 2024 | Change QoQ | Change YoY | | :----------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Income (millions) | $17.3 | $16.8 | $16.7 | +$0.5 | +$0.6 | | Diluted EPS | $0.67 | $0.65 | $0.65 | +$0.02 | +$0.02 | | Annualized Return on Avg Assets | 1.89% | 1.87% | 1.86% | +0.02% | +0.03% | | Annualized Return on Avg Equity | 15.69% | 15.74% | 16.26% | -0.05% | -0.57% | | Efficiency Ratio | 38.7% | 37.2% | 37.0% | +1.5% | +1.7% | | Net Interest Margin | 3.68% | 3.77% | 3.58% | -0.09% | +0.10% | - Total loans, including loans held for sale, increased by **$71.6 million** to **$3.20 billion** from the second quarter of 2025[6](index=6&type=chunk) [Year-to-Date 2025 Highlights](index=1&type=section&id=Year-to-Date%202025%20Highlights) For the first nine months of 2025, the Company achieved higher net income and an improved return on average assets compared to the prior year. While the return on average equity saw a slight decrease, the net interest margin expanded significantly, indicating improved interest income generation over the period. The efficiency ratio also increased year-over-year | Metric | YTD 2025 | YTD 2024 | Change YoY | | :----------------------------- | :------- | :------- | :--------- | | Net Income (millions) | $50.4 | $48.3 | +$2.1 | | Diluted EPS | $1.96 | $1.89 | +$0.07 | | Return on Average Assets | 1.87% | 1.80% | +0.07% | | Return on Average Equity | 15.70% | 16.27% | -0.57% | | Efficiency Ratio | 38.1% | 36.9% | +1.2% | | Net Interest Margin | 3.71% | 3.50% | +0.21% | [Strategic Developments](index=2&type=section&id=Strategic%20Developments) [Acquisition of First IC Corporation and First IC Bank](index=2&type=section&id=Acquisition%20of%20First%20IC%20Corporation%20and%20First%20IC%20Bank) MetroCity received all required regulatory approvals and non-objections to complete its merger with First IC Corporation, which was also approved by First IC's shareholders. The merger is expected to close later in the fourth quarter of 2025, subject to customary closing conditions - MetroCity received **all required regulatory approvals and non-objections** for the merger with First IC Corporation[7](index=7&type=chunk) - First IC's shareholders **approved the merger** on July 15, 2025[7](index=7&type=chunk) - The merger is **expected to be completed later in the fourth quarter of 2025**, subject to customary closing conditions[7](index=7&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) [Net Income](index=2&type=section&id=Net%20Income) Net income for Q3 2025 increased by 2.6% QoQ and 3.4% YoY, driven by higher noninterest income and lower provision for credit losses, despite increased noninterest expense and decreased net interest income QoQ. Year-to-date net income increased by 4.4% YoY | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------ | :------- | :------- | | Net Income (MM) | $17.3 | $16.8 | $16.7 | $50.4 | $48.3 | | QoQ Change | | +2.6% | | | | | YoY Change (Q3) | | | +3.4% | | | | YoY Change (YTD) | | | | +4.4% | | - QoQ increase in net income was primarily due to an **increase in noninterest income of $445,000**, **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**[8](index=8&type=chunk) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income decreased QoQ but increased YoY for Q3 2025. The net interest margin decreased by 9 basis points QoQ to 3.68% but increased by 10 basis points YoY, primarily due to a decrease in the cost of average interest-bearing liabilities | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net Interest Income (MM) | $31.792 | $32.178 | $30.289 | $94.524 | $88.086 | | Net Interest Margin | 3.68% | 3.77% | 3.58% | 3.71% | 3.50% | | Yield on Avg Interest-Earning Assets | 6.24% | 6.34% | 6.36% | 6.30% | 6.36% | | Cost of Avg Interest-Bearing Liabilities | 3.42% | 3.39% | 3.69% | 3.43% | 3.77% | - Interest rate derivative agreements provided a **credit to interest expense of $3.8 million in Q3 2025**, compared to **$4.2 million in Q2 2025** and **$6.4 million in Q3 2024**[11](index=11&type=chunk)[12](index=12&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income increased by 7.8% QoQ in Q3 2025, mainly due to higher mortgage loan origination fees, service charges, and SBA servicing income, partially offset by lower gains on sale of mortgage and SBA loans. However, it decreased by 6.6% YoY for Q3 2025 and 2.1% YoY for the nine months ended September 30, 2025 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Noninterest Income (MM) | $6.2 | $5.7 | $6.6 | $17.4 | $17.7 | | QoQ Change (Q3) | +7.8% | | | | | | YoY Change (Q3) | -6.6% | | | | | | YoY Change (YTD) | | | | -2.1% | | | Mortgage Loan Originations (MM) | $168.6 | $93.2 | | | | | SBA Loan Sales (MM) | $13.4 | $20.7 | | | | - QoQ increase driven by **higher mortgage loan origination fees, service charges on deposit accounts, and servicing income from SBA loans**[15](index=15&type=chunk) - YoY decrease primarily due to **lower gains on sale and servicing income from SBA loans, gains on sale of residential mortgage loans, and other income** (partially from lower unrealized gains on equity securities)[16](index=16&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense increased by 4.0% QoQ and 7.4% YoY in Q3 2025, primarily due to higher salaries and employee benefits (driven by loan volume and stock-based compensation), data processing, and loan-related expenses. Year-to-date noninterest expense increased by 9.0% YoY. The efficiency ratio worsened both QoQ and YoY | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------ | :------- | :------- | | Noninterest Expense (MM) | $14.7 | $14.1 | $13.7 | $42.6 | $39.1 | | QoQ Change (Q3) | +4.0% | | | | | | YoY Change (Q3) | +7.4% | | | | | | YoY Change (YTD) | | | | +9.0% | | | Efficiency Ratio (Q3) | 38.7% | 37.2% | 37.0% | | | | Efficiency Ratio (YTD) | | | | 38.1% | 36.9% | - QoQ increase primarily attributable to **increases in salaries and employee benefits** (due to higher commissions from loan volume and stock-based compensation), as well as **higher data processing and loan-related expenses**[19](index=19&type=chunk) - First IC merger-related expenses were **$301,000 in Q3 2025** and **$897,000 for the nine months ended September 30, 2025**[19](index=19&type=chunk)[21](index=21&type=chunk) [Income Tax Expense](index=4&type=section&id=Income%20Tax%20Expense) The effective tax rate for Q3 2025 was 27.6%, a decrease from Q2 2025 but an increase from Q3 2024. The year-to-date effective tax rate remained relatively stable at 27.6% | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------ | :------- | :------- | | Effective Tax Rate | 27.6% | 28.9% | 26.3% | 27.6% | 27.4% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) [Total Assets](index=4&type=section&id=Total%20Assets) Total assets increased slightly by 0.4% QoQ to $3.63 billion at September 30, 2025, and by 1.7% YoY. This growth was primarily driven by a significant increase in loans held for sale, partially offset by decreases in loans held for investment and cash balances | Metric | Sep 30, 2025 (MM) | Jun 30, 2025 (MM) | Sep 30, 2024 (MM) | QoQ Change | YoY Change | | :---------------- | :---------------- | :---------------- | :---------------- | :--------- | :--------- | | Total Assets | $3,629.5 | $3,615.7 | $3,569.2 | +0.4% | +1.7% | - QoQ increase in total assets was primarily due to **increases in loans held for sale (+$232.7 million)** and **other assets (+$2.2 million)**, partially offset by **decreases in loans held for investment (-$161.1 million)** and **cash and due from banks (-$59.7 million)**[24](index=24&type=chunk) - The investment securities portfolio made up **0.94% of total assets** at September 30, 2025[25](index=25&type=chunk) [Loans](index=5&type=section&id=Loans) Loans held for investment decreased by 5.2% QoQ and 4.1% YoY to $2.96 billion at September 30, 2025, mainly due to a significant decrease in residential mortgage loans. Conversely, loans held for sale dramatically increased to $237.7 million, primarily to provide liquidity for the upcoming First IC merger | Metric | Sep 30, 2025 (MM) | Jun 30, 2025 (MM) | Sep 30, 2024 (MM) | QoQ Change | YoY Change | | :------------------------ | :---------------- | :---------------- | :---------------- | :--------- | :--------- | | Loans Held for Investment | $2,960.4 | $3,121.5 | $3,087.8 | -5.2% | -4.1% | | Loans Held for Sale | $237.7 | $5.0 | $4.6 | +$232.7 | +$233.1 | - The decrease in loans held for investment was due to a **$170.5 million decrease in residential mortgage loans**, offset by **increases in commercial real estate loans (+$11.1 million)** and **construction and development loans (+$2.3 million)**[26](index=26&type=chunk) - The **significant increase in loans held for sale** was done to provide the **liquidity needed for the upcoming First IC merger**[26](index=26&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits remained relatively stable QoQ at $2.69 billion but decreased by 1.1% YoY. Noninterest-bearing deposits constituted 20.2% of total deposits, slightly down QoQ. Uninsured deposits increased to 26.1% of total deposits. The Company maintained $1.29 billion in available borrowing capacity | Metric | Sep 30, 2025 (MM) | Jun 30, 2025 (MM) | Sep 30, 2024 (MM) | QoQ Change | YoY Change | | :------------------------ | :---------------- | :---------------- | :---------------- | :--------- | :--------- | | Total Deposits | $2,693.1 | $2,689.5 | $2,723.1 | +0.1% | -1.1% | | Noninterest-Bearing Deposits | $544.4 | $548.9 | $552.5 | -0.8% | -1.5% | | % Noninterest-Bearing | 20.2% | 20.4% | 20.3% | -0.2% | -0.1% | | Uninsured Deposits % | 26.1% | 25.1% | 23.6% | +1.0% | +2.5% | - The increase in total deposits QoQ was due to **increases in money market accounts (+$15.9 million)** and **time deposits (+$15.7 million)**, offset by **decreases in interest-bearing demand deposits (-$23.3 million)** and **noninterest-bearing demand deposits (-$4.5 million)**[27](index=27&type=chunk) - As of September 30, 2025, the Company had **$1.29 billion of available borrowing capacity** at the Federal Home Loan Bank, Federal Reserve Discount Window, and various other financial institutions[29](index=29&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) [Provision for Credit Losses & Net Charge-offs](index=5&type=section&id=Provision%20for%20Credit%20Losses%20%26%20Net%20Charge-offs) The Company recorded a credit provision for credit losses of $543,000 in Q3 2025, primarily due to decreased reserves for individually analyzed loans and residential mortgage loans (due to reclassification to held for sale). Annualized net charge-offs to average loans were 0.03% | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | :------ | | Provision for Credit Losses (thousands) | -$543 | $129 | $582 | | Annualized Net Charge-offs to Avg Loans | 0.03% | 0.01% | 0.00% | - The credit provision was primarily due to the **decrease in reserves allocated to individually analyzed loans and the residential mortgage loan portfolio**, as a large amount of residential mortgage loans were moved from loans held for investment to loans held for sale[30](index=30&type=chunk) [Nonperforming Assets](index=6&type=section&id=Nonperforming%20Assets) Nonperforming assets decreased by $1.2 million QoQ and $1.9 million YoY to $14.0 million (0.38% of total assets) at September 30, 2025, mainly due to a decrease in nonaccrual loans | Metric | Sep 30, 2025 (MM) | Jun 30, 2025 (MM) | Sep 30, 2024 (MM) | QoQ Change (MM) | YoY Change (MM) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :-------------- | :-------------- | | Total Nonperforming Assets | $14.0 | $15.2 | $15.8 | -$1.2 | -$1.9 | | Nonperforming Assets to Total Assets | 0.38% | 0.42% | 0.44% | -0.04% | -0.06% | - The decrease in nonperforming assets was due to a **$1.4 million decrease in nonaccrual loans**, offset by a **$175,000 increase in other real estate owned**[32](index=32&type=chunk) [Allowance for Credit Losses](index=6&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for credit losses (ACL) as a percentage of total loans remained stable at 0.60% at September 30, 2025. ACL as a percentage of nonperforming loans improved to 137.66% QoQ and YoY, indicating stronger coverage | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | | ACL as % of Total Loans | 0.60% | 0.60% | 0.60% | | ACL as % of Nonperforming Loans | 137.66% | 129.76% | 129.85% | [Company Information](index=6&type=section&id=Company%20Information) [About MetroCity Bankshares, Inc.](index=6&type=section&id=About%20MetroCity%20Bankshares%2C%20Inc.) MetroCity Bankshares, Inc. is a Georgia-based bank holding company for Metro City Bank, founded in 2006. It operates 20 full-service branches across multiple states in multi-ethnic communities - MetroCity Bankshares, Inc. is a **Georgia corporation** and a **registered bank holding company** for Metro City Bank, **headquartered in Atlanta, Georgia**[34](index=34&type=chunk) - **Founded in 2006**, Metro City Bank operates **20 full-service branch locations** in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia[34](index=34&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The press release includes non-GAAP financial measures, specifically "return on average equity" excluding average accumulated other comprehensive income and merger-related expenses, which should be considered supplementary to GAAP measures - The press release contains **non-GAAP financial information**, including **"return on average equity" excluding average accumulated other comprehensive income and merger-related expenses**[35](index=35&type=chunk) - These non-GAAP measures should be **viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP**[35](index=35&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various known and unknown risks and uncertainties, including economic conditions, interest rate changes, competition, regulatory changes, and risks associated with the First IC merger. Actual results may differ materially from expectations, and the Company does not undertake to update these statements - Statements regarding future events, financial performance, and market trends are considered **"forward-looking statements"** and are subject to **known and unknown risks and uncertainties**[36](index=36&type=chunk) - Factors that might cause actual financial results to differ materially include **economic conditions, interest rate changes, competition, regulatory changes, and risks associated with the proposed merger of First IC with the Company**[36](index=36&type=chunk)[37](index=37&type=chunk) - The Company **does not undertake any obligation to update or review any forward-looking statement**, except as required by law[38](index=38&type=chunk) [Contacts](index=8&type=section&id=Contacts) Contact information for MetroCity Bankshares, Inc. President Farid Tan and Chief Financial Officer Lucas Stewart - **Farid Tan, President**: 770-455-4978, faridtan@metrocitybank.bank[39](index=39&type=chunk) - **Lucas Stewart, Chief Financial Officer**: 678-580-6414, lucasstewart@metrocitybank.bank[39](index=39&type=chunk) [Financial Tables](index=9&type=section&id=Financial%20Tables) [Selected Financial Data](index=9&type=section&id=Selected%20Financial%20Data) This table provides a summary of key income statement, per share, performance ratios, asset quality, balance sheet, capital ratios, and mortgage/SBA loan data for various quarterly and year-to-date periods | | As of and for the Three Months Ended | | | December 31, | | | | | September 30, | | | June 30, | | | | | | | | | As of and for the Nine Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | March 31, | | | 2024 | | | | | 2025 | | | 2025 | | | | | | | | September 30, | | September 30, | | September 30, | | (Dollars in thousands, except per share data) | 2025 | | | | | | | | | | | | | | | | | | 2024 | | 2025 | | 2024 | | Selected income statement data: | | | | | | | | | | | | | | | | | | | | | | | | | Interest income | 52,519 | | | | | | | | $ 54,003 $ | | | 54,049 $ | | | $ | | 52,614 | $ | 53,833 | $ | 160,571 | $ | 160,299 | | Interest expense | 21,965 | | | | | | | | 22,211 | | | 21,871 | | | | | 22,554 | | 23,544 | | 66,047 | | 72,213 | | Net interest income | 30,554 | | | | | | | | 31,792 | | | 32,178 | | | | | 30,060 | | 30,289 | | 94,524 | | 88,086 | | Provision for credit losses | | | 135 | | | | | | (543) | | | 129 | | | | | 202 | | 582 | | (279) | | 314 | | Noninterest income | | 5,456 | | | | | | | 6,178 | | | 5,733 | | | | | 5,321 | | 6,615 | | 17,367 | | 17,742 | | Noninterest expense | 13,799 | | | | | | | | 14,674 | | | 14,113 | | | | | 14,326 | | 13,660 | | 42,586 | | 39,053 | | Income tax expense | | 5,779 | | | | | | | 6,569 | | | 6,843 | | | | | 4,618 | | 5,961 | | 19,191 | | 18,192 | | Net income | 16,297 | | | | | | | | 17,270 | | | 16,826 | | | | | 16,235 | | 16,701 | | 50,393 | | 48,269 | | Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | Basic income per share | | 0.64 | | | | | | | $ 0.68 $ | | | 0.66 $ | | | $ | | 0.64 | $ | 0.66 | $ | 1.98 | $ | 1.91 | | Diluted income per share | | 0.63 | | | | | | | $ 0.67 $ | | | 0.65 $ | | | $ | | 0.63 | $ | 0.65 | $ | 1.96 | $ | 1.89 | | Dividends per share | | 0.23 | | | | | | | $ 0.25 $ | | | 0.23 $ | | | $ | | 0.23 | $ | 0.20 | $ | 0.71 | $ | 0.60 | | Book value per share (at period end) | | 16.85 | | | | | | | $ 17.46 $ | | | 17.08 $ | | | $ | | 16.59 | $ | 16.07 | $ | 17.46 | $ | 16.07 | | Shares of common stock outstanding | 25,402,782 | | | | | | | | 25,537,746 | | | 25,537,746 | | | | 25,402,782 | | | 25,331,916 | | 25,537,746 | | 25,331,916 | | Weighted average diluted shares | 25,707,989 | | | | | | | | 25,811,422 | | | 25,715,206 | | | | 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 | | 15.67 | | | | | | | 15.69 | | | 15.74 | | | | | 15.84 | | 16.26 | | 15.70 | | 16.27 | | Dividend payout ratio | | 36.14 | | | | | | | 37.23 | | | 35.01 | | | | | 36.18 | | 30.58 | | 36.13 | | 31.66 | | Yield on total loans | | | 6.40 | | | 6.43 | | | 6.37 | | | 6.49 | | | | | 6.31 | | | | 6.42 | | 6.41 | | Yield on average earning assets | | | | | 6.25 | | 6.30 | 6.34 | 6.24 | | | | 6.31 | | | | | | 6.36 | | | | 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 3.36 3.45 | | 3.25 | | | | | | | 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) | | 38.32 | | | | | | | 38.65 | | | 37.23 | | | | | 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 | | 0.59 | | | | | | | 0.47 | | | 0.49 | | | | | 0.58 | | 0.51 | | 0.47 | | 0.51 | | ACL to nonperforming loans | 110.52 | | | | | | | | 137.66 | | | 129.76 | | | | | 104.08 | | 129.85 | | 137.66 | | 129.85 | | ACL to loans held for investment | | 0.59 | | | | | | | 0.60 | | | 0.60 | | | | | 0.59 | | 0.60 | | 0.60 | | 0.60 | | Balance sheet and capital ratios: | | | | | | | | | | | | | | | | | | | | | | | | | Gross loans held for investment to deposits | | | 114.73 % | | | | | | 110.19 % | | | 116.34 % | | | | | 115.66 % | | 113.67 % | | 110.19 % | | 113.67 % | | Noninterest bearing deposits to deposits | | 19.73 | | | | | | | 20.22 | | | 20.41 | | | | | 19.60 | | 20.29 | | 20.22 | | 20.29 | | Investment securities to assets | | 0.93 | | | | | | | 0.94 | | | 0.93 | | | | | 0.77 | | 0.81 | | 0.94 | | 0.81 | | Common equity to assets | | 11.69 | | | | | | | 12.29 | | | 12.06 | | | | | 11.72 | | 11.41 | | 12.29 | | 11.41 | | Leverage ratio | | 11.76 | | | | | | | 12.21 | | | 11.91 | | | | | 11.57 | | 11.12 | | 12.21 | | 11.12 | | Common equity tier 1 ratio | | 19.23 | | | | | | | 19.93 | | | 19.91 | | | | | 19.17 | | 19.12 | | 19.93 | | 19.12 | | Tier 1 risk-based capital ratio | | 19.23 | | | | | | | 19.93 | | | 19.91 | | | | | 19.17 | | 19.12 | | 19.93 | | 19.12 | | Total risk-based capital ratio | | 20.09 | | | | | | | 20.74 | | | 20.78 | | | | | 20.05 | | 20.03 | | 20.74 | | 20.03 | | Mortgage and SBA loan data: | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage loans serviced for others | 537,590 | | | | | | | | $ 538,675 $ | | | 559,112 $ | | | $ | 527,039 | | $ | 556,442 | $ | 538,675 | $ | 556,442 | | Mortgage loan production | 91,122 | | | | | | | | 168,562 | | | 93,156 | | | | 103,250 | | | 122,355 | | 352,840 | | 310,427 | | Mortgage loan sales | 40,051 | | | | | | | | 18,248 | | | 54,309 | | | | — | | 54,193 | | 112,608 | | 187,490 | | SBA/USDA loans serviced for others | 474,143 | | | | | | | | 460,720 | | | 480,867 | | | | 479,669 | | | 487,359 | | 460,720 | | 487,359 | | SBA loan production | 20,012 | | | | | | | | 17,777 | | | 29,337 | | | | 35,730 | | 35,839 | | 67,126 | | 55,533 | | SBA loan sales | 16,579 | | | | | | | | 13,415 | | | 20,707 | | | | 19,236 | | | 28,858 | | 50,701 | | 52,923 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) This table presents the unaudited consolidated balance sheets, detailing assets, liabilities, and shareholders' equity for the quarters ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024 | | | | | | | As of the Quarter Ended | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | (Dollars in thousands) | | 2025 | | 2025 | | 2025 | | 2024 | | 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 | | 22,693 | | 22,693 | | 20,251 | | 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 | | 425,000 | | 425,000 | | 375,000 | | 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 | | 255 | | 254 | | 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 | [Consolidated Statements of Income](index=11&type=section&id=Consolidated%20Statements%20of%20Income) This table provides the unaudited consolidated statements of income, showing interest and dividend income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, income before taxes, provision for income taxes, and net income for various quarterly and year-to-date periods | | | | | | | Three Months Ended | | | | | | | Nine Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | September 30, | June 30, | | | March 31, | | December 31, | | September 30, | | September 30, | | September 30, | | (Dollars in thousands) | | 2025 | 2025 | | | 2025 | | 2024 | | 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 | | 80 | | 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 | [QTD Average Balances and Yields/Rates](index=12&type=section&id=QTD%20Average%20Balances%20and%20Yields%2FRates) This table details average balances, interest and fees, and yields/rates for earning assets and interest-bearing liabilities for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024. It also includes net interest income, spread, and margin | | | | | | 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 | 43 | 52.17 | 365 | 63 | 69.23 | 394 | 42 | 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 | [YTD Average Balances and Yields/Rates](index=13&type=section&id=YTD%20Average%20Balances%20and%20Yields%2FRates) This table presents average balances, interest and fees, and yields/rates for earning assets and interest-bearing liabilities for the nine months ended September 30, 2025, and September 30, 2024, along with net interest income, spread, and margin | | | | | | 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: | $ | 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 | [Loan Data](index=14&type=section&id=Loan%20Data) This table provides a breakdown of gross loans held for investment by type (construction and development, commercial real estate, commercial and industrial, residential real estate, consumer and other) and their respective percentages of total loans for various quarter-end periods | | | | | | As of the Quarter Ended | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | September 30, 2025 | | June 30, 2025 | | March 31, 2025 | | December 31, 2024 | | September 30, 2024 | | | | | % of | | % of | | % of | | % of | | % 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 | — | 67 | — | 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 | | [Nonperforming Assets](index=14&type=section&id=Nonperforming%20Assets) This table details nonperforming assets, including nonaccrual loans, past due loans, and other real estate owned, along with key ratios such as nonperforming loans to gross loans and nonperforming assets to total assets, for various quarter-end periods | | | | | As of the Quarter Ended | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | September 30, | June 30, | | March 31, | | December 31, | | September 30, | | | (Dollars in thousands) | 2025 | 2025 | | 2025 | | 2024 | | 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 | | 0.51 | | 0.44 | | Allowance for credit losses to non-performing loans | 137.66 | | 129.76 | | 110.52 | | 104.08 | | 129.85 | [Allowance for Loan Losses](index=15&type=section&id=Allowance%20for%20Loan%20Losses) This table presents the activity in the allowance for loan losses, including beginning and ending balances, net charge-offs/(recoveries) by loan type, and provision for loan losses, for various quarterly and year-to-date periods. It also includes ratios like net charge-offs to average loans and allowance for loan losses to total loans | | | | | | 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, | | September 30, | | September 30, | | (Dollars in thousands) | | 2025 | 2025 | | 2025 | | 2024 | | | 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 | | 62 | | (1) | | — | | — | | 171 | | (83) | | Commercial and industrial | | 117 | | (2) | | 170 | | 99 | | 24 | | 285 | | 20 | | Residential real estate | | — | | — | | — | | — | | — | | — | | — | | Consumer and other | | — | | — | | — | | — | | — | | — | | — | | Total net charge-offs/(recoveries) | | 227 | | 60 | | 169 | | 99 | | 24 | | 456 | | (63) | | Provision for loan losses | | (581) | | 216 | | 17 | | 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 | | 0.60 | | 0.59 | | 0.59 | | 0.60 | | 0.60 | | 0.60 |

Core Insights - MetroCity Bankshares, Inc. reported a net income of $17.3 million for Q3 2025, reflecting a 2.6% increase from Q2 2025 and a 3.4% increase from Q3 2024 [1][3][4] - The company is set to complete its merger with First IC Corporation in Q4 2025, having received all necessary regulatory approvals [2] Financial Performance - Net income for the nine months ended September 30, 2025, was $50.4 million, up 4.4% from $48.3 million in the same period of 2024 [4] - Noninterest income for Q3 2025 was $6.2 million, a 7.8% increase from Q2 2025, driven by higher mortgage loan origination fees and service charges [9] - Noninterest expense for Q3 2025 totaled $14.7 million, a 4.0% increase from Q2 2025, primarily due to higher salaries and employee benefits [13] Interest Income and Expenses - Interest income for Q3 2025 was $54.0 million, a slight decrease of 0.1% from Q2 2025, attributed to a decrease in loan yield [5] - Interest expense increased to $22.2 million in Q3 2025, a 1.6% rise from Q2 2025, mainly due to higher costs associated with interest-bearing demand deposits [6] Asset Quality - The company recorded a credit provision for credit losses of $543,000 in Q3 2025, compared to $129,000 in Q2 2025 [23] - Nonperforming assets decreased to $14.0 million, or 0.38% of total assets, at September 30, 2025, down from $15.2 million at June 30, 2025 [24] Balance Sheet Highlights - Total assets increased to $3.63 billion at September 30, 2025, a 0.4% rise from June 30, 2025 [18] - Loans held for investment decreased to $2.96 billion, a 5.2% decline from June 30, 2025, primarily due to a decrease in residential mortgage loans [19] - Total deposits were $2.69 billion at September 30, 2025, showing a slight increase of 0.1% from June 30, 2025 [20] Efficiency and Returns - The efficiency ratio for Q3 2025 was 38.7%, compared to 37.2% in Q2 2025 [16] - Return on average assets was 1.89% for Q3 2025, up from 1.87% in Q2 2025 [10]

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Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q2 2025 and FY 2024, along with detailed accounting notes Consolidated Balance Sheets Table | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------------------------------------------------- | :-------------------------- | :------------------ | | **Assets:** | | | | Total assets | $ 3,615,688 | $ 3,594,045 | | Cash and cash equivalents | $ 286,011 | $ 249,875 | | Loans, less allowance for credit losses | $ 3,102,786 | $ 3,139,191 | | **Liabilities:** | | | | Total deposits | $ 2,689,493 | $ 2,736,798 | | Federal Home Loan Bank advances | $ 425,000 | $ 375,000 | | Total liabilities | $ 3,179,588 | $ 3,172,692 | | **Shareholders' Equity:** | | | | Total shareholders' equity | $ 436,100 | $ 421,353 | - Total assets increased by **$21.6 million** (**0.6%**) to **$3.62 billion** at June 30, 2025, compared to **$3.59 billion** at December 31, 2024, driven by increases in cash, other assets, equity securities, and loans held for sale[12](index=12&type=chunk)[182](index=182&type=chunk) Consolidated Statements of Income Table | Metric (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $ 54,049 | $ 54,108 | $ 106,568 | $ 106,466 | | Total interest expense | $ 21,871 | $ 23,396 | $ 43,836 | $ 48,669 | | Net interest income | $ 32,178 | $ 30,712 | $ 62,732 | $ 57,797 | | Provision for credit losses | $ 129 | $ (128) | $ 264 | $ (268) | | Total noninterest income | $ 5,733 | $ 5,559 | $ 11,189 | $ 11,127 | | Total noninterest expense | $ 14,113 | $ 13,032 | $ 27,912 | $ 25,393 | | Net income available to common shareholders | $ 16,826 | $ 16,937 | $ 33,123 | $ 31,567 | | Basic earnings per share | $ 0.66 | $ 0.67 | $ 1.30 | $ 1.25 | | Diluted earnings per share | $ 0.65 | $ 0.66 | $ 1.29 | $ 1.24 | - Net income for Q2 2025 decreased by **$111 thousand** (**0.7%**) to **$16.8 million**, primarily due to increased noninterest expense, income tax expense, and provision for credit losses, partially offset by higher net interest income and noninterest income[135](index=135&type=chunk) - For H1 2025, net income increased by **$1.6 million** (**4.9%**) to **$33.1 million**, driven by increased net interest income and noninterest income, partially offset by higher noninterest expense, provision for credit losses, and income tax expense[136](index=136&type=chunk) Consolidated Statements of Comprehensive Income Table | Metric (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $ 16,826 | $ 16,937 | $ 33,123 | $ 31,567 | | Other comprehensive (loss) gain | $ (3,373) | $ (1,765) | $ (7,592) | $ 3,372 | | Comprehensive income | $ 13,453 | $ 15,172 | $ 25,531 | $ 34,939 | - Comprehensive income decreased for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to higher other comprehensive losses from net changes in the fair value of cash flow hedges[14](index=14&type=chunk) Consolidated Statements of Shareholders' Equity Table | Metric (Dollars in thousands) | June 30, 2025 | June 30, 2024 | | :------------------------------ | :------------ | :------------ | | Total Shareholders' Equity (Three Months Ended) | $ 436,100 | $ 407,228 | | Total Shareholders' Equity (Six Months Ended) | $ 436,100 | $ 407,228 | | Dividends declared on common stock (Q2 2025) | $ 5,890 | $ 5,088 | | Dividends declared on common stock (H1 2025) | $ 11,781 | $ 10,174 | - Total shareholders' equity increased to **$436.1 million** at June 30, 2025, from **$427.9 million** at April 1, 2025, primarily due to net income and stock-based compensation expense, partially offset by other comprehensive loss and dividends declared[16](index=16&type=chunk) Consolidated Statements of Cash Flows Table | Metric (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :----------------------------- | :----------------------------- | | Net cash flow provided by operating activities | $ 26,362 | $ 55,720 | | Net cash flow used in investing activities | $ 19,911 | $ 72,502 | | Net cash flow provided by financing activities | $ (10,137) | $ 54,832 | | Net change in cash and cash equivalents | $ 36,136 | $ 183,054 | | Cash and cash equivalents at end of period | $ 286,011 | $ 327,859 | - Net cash flow provided by operating activities decreased significantly in H1 2025 to **$26.4 million** from **$55.7 million** in H1 2024[17](index=17&type=chunk)[18](index=18&type=chunk) - Net cash flow from investing activities also decreased to **$19.9 million** from **$72.5 million**[17](index=17&type=chunk)[18](index=18&type=chunk) - Financing activities shifted from providing **$54.8 million** in H1 2024 to using **$10.1 million** in H1 2025, primarily due to a decrease in deposits and FHLB advance repayments[17](index=17&type=chunk)[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%201%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The Company operates in community banking, adheres to GAAP, adopted no new policies, and anticipates no material adverse effect from legal proceedings - The Company operates principally in one business segment, community banking, with financial performance evaluated on a Company-wide basis[22](index=22&type=chunk)[27](index=27&type=chunk) - No new accounting policies or significant changes to existing policies were adopted during the first six months of 2025 that materially affected the Company's results or financial condition[25](index=25&type=chunk) - Management believes that outstanding legal proceedings will not have a material adverse effect on the Company's results of operations or financial condition[26](index=26&type=chunk) [NOTE 2 – INVESTMENT SECURITIES](index=14&type=section&id=NOTE%202%20%E2%80%93%20INVESTMENT%20SECURITIES) Securities available for sale decreased to $15.0 million, while equity securities increased to $18.5 million, recognizing an unrealized gain of $181 thousand for H1 2025 NOTE 2 – INVESTMENT SECURITIES Table | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Securities available for sale (Fair Value) | $ 15,030 | $ 17,391 | | Equity securities (Carrying Value) | $ 18,481 | $ 10,300 | | Gross Unrealized Losses (Securities available for sale) | $ (3,510) | $ (3,284) | - All **20** securities available for sale with unrealized losses at June 30, 2025, have been in a loss position for over twelve months, depreciating **21.93%** from amortized cost, but are not considered credit-impaired[35](index=35&type=chunk)[36

[Earnings Release Summary](index=1&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20REPORTS%20EARNINGS%20FOR%20SECOND%20QUARTER%202025) MetroCity Bankshares reported its financial results for Q2 and H1 2025, highlighting net income, EPS, and key performance ratios [Q2 2025 & H1 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) MetroCity Bankshares reported net income of $16.8 million for Q2 2025, a slight increase from $16.3 million in Q1 2025 but a small decrease from $16.9 million in Q2 2024. For the first six months of 2025, net income grew 4.9% year-over-year to $33.1 million. Key performance indicators for Q2 2025 showed an annualized ROA of 1.87% and an improved net interest margin of 3.77%. The efficiency ratio improved quarter-over-quarter to 37.2% but worsened compared to the prior year Net Income and Diluted EPS | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $16.8 million | $16.3 million | $16.9 million | | Diluted EPS | $0.65 | $0.63 | $0.66 | Half-Year Net Income and Diluted EPS | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Income | $33.1 million | $31.6 million | | Diluted EPS | $1.29 | $1.24 | Key Performance Ratios | Performance Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Annualized ROA | 1.87% | 1.85% | 1.89% | | Annualized ROE | 15.74% | 15.67% | 17.10% | | Efficiency Ratio | 37.2% | 38.3% | 35.9% | | Net Interest Margin | 3.77% | 3.67% | 3.66% | [Acquisition of First IC Corporation](index=2&type=section&id=Acquisition%20of%20First%20IC%20Corporation%20and%20First%20IC%20Bank) The company has secured all necessary approvals for its merger with First IC Corporation, with closing anticipated in early Q4 2025 [Merger Details](index=2&type=section&id=Acquisition%20of%20First%20IC%20Corporation%20and%20First%20IC%20Bank) The company has successfully obtained all required regulatory and shareholder approvals for its merger with First IC Corporation, the parent of First IC Bank. The transaction is anticipated to be finalized in the early fourth quarter of 2025, pending the fulfillment of standard closing conditions - On **July 15, 2025**, MetroCity received all required regulatory approvals and non-objections to complete the merger with First IC Corporation[5](index=5&type=chunk) - First IC's shareholders voted to approve the merger on **July 15, 2025**[5](index=5&type=chunk) - The merger is expected to be completed early in the **fourth quarter of 2025**, subject to customary closing conditions[5](index=5&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) This section details the company's financial performance, including net income, net interest income, noninterest income, noninterest expenses, and income tax expense [Net Income](index=2&type=section&id=Net%20Income) Q2 2025 net income increased 3.2% quarter-over-quarter to $16.8 million, primarily driven by higher net interest income. However, it decreased by 0.7% year-over-year due to increased noninterest expenses and a higher provision for credit losses. For the first half of 2025, net income rose 4.9% year-over-year to $33.1 million, largely due to a $4.9 million increase in net interest income - Q2 2025 net income increased by **$529,000 (3.2%)** from Q1 2025, mainly due to a **$1.6 million** increase in net interest income and a **$277,000** increase in noninterest income[6](index=6&type=chunk) - Compared to Q2 2024, net income decreased by **$111,000 (0.7%)** due to higher noninterest expense (**$1.1 million**), income tax expense (**$413,000**), and provision for credit losses (**$257,000**)[6](index=6&type=chunk) - For the six months ended June 30, 2025, net income increased by **$1.6 million (4.9%)** from the same period in 2024, driven by a **$4.9 million** increase in net interest income[7](index=7&type=chunk) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income for Q2 2025 was $32.2 million. The net interest margin expanded by 10 basis points quarter-over-quarter to 3.77%, driven by a 9 basis point decrease in the cost of average interest-bearing liabilities. Year-over-year, the margin increased by 11 basis points, also due to a significant 29 basis point decrease in liability costs. The company's interest rate derivatives contributed a $4.2 million credit to interest expense during the quarter Net Interest Income and Net Interest Margin | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $32.2M | $30.6M | $30.7M | | Net Interest Margin | 3.77% | 3.67% | 3.66% | - The QoQ increase in NIM was driven by a **9 basis point** decrease in the cost of average interest-bearing liabilities (to **3.39%**) and a **3 basis point** increase in the yield on average interest-earning assets (to **6.34%**)[11](index=11&type=chunk) - Interest expense decreased by **6.5%** YoY, primarily due to a **38 basis point** decrease in deposit costs[9](index=9&type=chunk) - The company recorded a credit to interest expense of **$4.2 million** from interest rate derivative agreements during Q2 2025[9](index=9&type=chunk)[10](index=10&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income for Q2 2025 increased by 5.1% quarter-over-quarter to $5.7 million, primarily due to higher gains on the sale of residential mortgage loans. This was partially offset by lower gains from SBA loan sales. Year-over-year, noninterest income grew 3.1%, driven by higher gains on SBA loan sales and other income - Q2 2025 noninterest income increased by **$277,000 (5.1%)** from Q1 2025, mainly due to higher gains on sale of residential mortgage loans[13](index=13&type=chunk) Loan Activity (Q2 2025 vs Q1 2025) | Loan Activity (Q2 2025 vs Q1 2025) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | SBA Loan Sales | $20.7M | $16.6M | | Mortgage Loan Sales | $54.3M | $40.1M | - For the six months ended June 30, 2025, noninterest income increased by a modest **$62,000 (0.6%)** compared to the same period in 2024[15](index=15&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense in Q2 2025 rose 2.3% quarter-over-quarter to $14.1 million, partly due to $333,000 in expenses related to the First IC merger. Year-over-year, expenses increased by 8.3%, driven by higher salaries, professional fees, and merger costs. Consequently, the efficiency ratio improved to 37.2% from the previous quarter but deteriorated from 35.9% in the prior year's quarter - Q2 2025 noninterest expense increased by **$314,000 (2.3%)** QoQ, including **$333,000** of First IC merger-related expenses[17](index=17&type=chunk) - YoY, noninterest expense increased by **$1.1 million (8.3%)**, primarily due to higher salary and employee benefits, professional fees, and merger-related expenses[18](index=18&type=chunk) Efficiency Ratio | Efficiency Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Ratio | 37.2% | 38.3% | 35.9% | [Income Tax Expense](index=4&type=section&id=Income%20Tax%20Expense) The company's effective tax rate for Q2 2025 was 28.9%, which is higher than the 26.2% in Q1 2025 and 27.5% in Q2 2024. For the first six months of 2025, the effective tax rate was 27.6%, slightly down from 27.9% in the same period of 2024 Effective Tax Rate | Effective Tax Rate | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Rate | 28.9% | 26.2% | 27.5% | [Balance Sheet](index=4&type=section&id=Balance%20Sheet) This section provides an overview of the company's financial position, detailing total assets, loan portfolio composition, and deposit trends [Total Assets](index=4&type=section&id=Total%20Assets) As of June 30, 2025, total assets were $3.62 billion, a decrease of 1.2% from the previous quarter, primarily due to a $29.5 million reduction in loans held for sale and an $11.0 million decrease in loans held for investment. Year-over-year, total assets remained relatively unchanged Total Assets | Period End | Total Assets | | :--- | :--- | | June 30, 2025 | $3.62 billion | | March 31, 2025 | $3.66 billion | | June 30, 2024 | $3.62 billion | - The **$44.0 million** quarter-over-quarter decrease in total assets was primarily driven by decreases in loans held for sale (**$29.5 million**) and loans held for investment (**$11.0 million**)[22](index=22&type=chunk) [Loans](index=5&type=section&id=Loans) Loans held for investment totaled $3.12 billion at the end of Q2 2025, down 0.4% from the prior quarter but up 1.0% year-over-year. The quarterly decrease was mainly due to a $26.7 million decline in residential mortgage loans, which was partially offset by growth in commercial real estate and commercial and industrial loans Loans Held for Investment | Period End | Loans Held for Investment | | :--- | :--- | | June 30, 2025 | $3.12 billion | | March 31, 2025 | $3.13 billion | | June 30, 2024 | $3.09 billion | - The quarter-over-quarter decrease in loans was driven by a **$26.7 million** decrease in residential mortgage loans, offset by increases in commercial real estate (**$11.2 million**) and commercial and industrial loans (**$2.3 million**)[25](index=25&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits decreased by 1.7% quarter-over-quarter to $2.69 billion, driven by outflows from interest-bearing demand, money market, and time deposits. In contrast, noninterest-bearing deposits grew by $8.9 million. Uninsured deposits constituted 25.1% of total deposits, up from 24.3% in the prior quarter. The bank maintained significant liquidity with $1.31 billion in available borrowing capacity Total Deposits | Period End | Total Deposits | | :--- | :--- | | June 30, 2025 | $2.69 billion | | March 31, 2025 | $2.74 billion | | June 30, 2024 | $2.75 billion | - Noninterest-bearing deposits increased to **$548.9 million**, representing **20.4%** of total deposits, up from **19.7%** in Q1 2025[27](index=27&type=chunk) - Uninsured deposits were **25.1%** of total deposits at June 30, 2025. The company had **$1.31 billion** of available borrowing capacity[28](index=28&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) This section assesses the company's credit risk management, including provisions for credit losses and trends in nonperforming assets [Credit Loss Provision and Nonperforming Assets](index=5&type=section&id=Asset%20Quality) The company recorded a provision for credit losses of $129,000 in Q2 2025, a slight decrease from the previous quarter. Asset quality improved, with nonperforming assets (NPAs) falling to $15.2 million, or 0.42% of total assets, from $18.5 million (0.51%) in Q1 2025. The allowance for credit losses (ACL) to total loans remained stable at 0.60%, while the ACL coverage of nonperforming loans increased significantly to 129.76% - A provision for credit losses of **$129,000** was recorded in Q2 2025, compared to **$135,000** in Q1 2025 and a credit provision of **$128,000** in Q2 2024[29](index=29&type=chunk) Nonperforming Assets | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets | $15.2 million | $18.5 million | $14.5 million | | NPAs to Total Assets | 0.42% | 0.51% | 0.40% | Allowance for Credit Losses Ratios | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | ACL to Total Loans | 0.60% | 0.59% | 0.58% | | ACL to Nonperforming Loans | 129.76% | 110.52% | 138.11% | [Financial Tables](index=9&type=section&id=Financial%20Tables) This section provides comprehensive financial data, including income statements, balance sheets, performance ratios, and detailed loan and asset quality metrics [Selected Financial Data](index=9&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20SELECTED%20FINANCIAL%20DATA) This table provides a summary of key financial data, including income statements, per share data, performance ratios, asset quality metrics, and balance sheet ratios for the last five quarters and the six-month periods ended June 30, 2025, and 2024 Selected Financial Data (Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net income** | $16,826 | $16,297 | $16,937 | $33,123 | $31,567 | | **Diluted income per share** | $0.65 | $0.63 | $0.66 | $1.29 | $1.24 | | **Return on average assets** | 1.87% | 1.85% | 1.89% | 1.86% | 1.77% | | **Net interest margin** | 3.77% | 3.67% | 3.66% | 3.72% | 3.45% | | **Efficiency ratio** | 37.23% | 38.32% | 35.93% | 37.76% | 36.84% | | **ACL to loans held for investment** | 0.60% | 0.59% | 0.58% | 0.60% | 0.58% | [Consolidated Balance Sheets](index=10&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS%20%28UNAUDITED%29) This table presents the unaudited consolidated balance sheets, detailing assets, liabilities, and shareholders' equity as of the end of the last five quarters Consolidated Balance Sheets (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Total assets** | $3,615,688 | $3,659,725 | $3,615,370 | | **Loans less allowance** | $3,102,786 | $3,113,943 | $3,072,538 | | **Total deposits** | $2,689,493 | $2,737,030 | $2,745,860 | | **Total liabilities** | $3,179,588 | $3,231,756 | $3,208,142 | | **Total shareholders' equity** | $436,100 | $427,969 | $407,228 | [Consolidated Statements of Income](index=11&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20%28UNAUDITED%29) This table provides the unaudited consolidated statements of income, showing detailed revenue and expense items for the last five quarters and the six-month periods ended June 30, 2025, and 2024 Consolidated Statements of Income (Dollars in thousands) | (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net interest income** | $32,178 | $30,554 | $30,712 | $62,732 | $57,797 | | **Provision for credit losses** | $129 | $135 | $(128) | $264 | $(268) | | **Total noninterest income** | $5,733 | $5,456 | $5,559 | $11,189 | $11,127 | | **Total noninterest expense** | $14,113 | $13,799 | $13,032 | $27,912 | $25,393 | | **Net income** | $16,826 | $16,297 | $16,937 | $33,123 | $31,567 | [QTD Average Balances and Yields/Rates](index=12&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20QTD%20AVERAGE%20BALANCES%20AND%20YIELDS%2FRATES) This table details the average balances, interest income/expense, and annualized yields/rates for various categories of earning assets and interest-bearing liabilities for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024 QTD Average Balances and Yields/Rates (For the Three Months Ended) | (For the Three Months Ended) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Yield on total earning assets** | 6.34% | 6.31% | 6.45% | | **Cost of total interest-bearing liabilities** | 3.39% | 3.48% | 3.68% | | **Net interest spread** | 2.95% | 2.83% | 2.77% | | **Net interest margin** | 3.77% | 3.67% | 3.66% | [YTD Average Balances and Yields/Rates](index=13&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20YTD%20AVERAGE%20BALANCES%20AND%20YIELDS%2FRATES) This table presents the year-to-date average balances, interest income/expense, and annualized yields/rates for earning assets and interest-bearing liabilities for the six-month periods ended June 30, 2025, and June 30, 2024 YTD Average Balances and Yields/Rates (For the Six Months Ended) | (For the Six Months Ended) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Yield on total earning assets** | 6.33% | 6.36% | | **Cost of total interest-bearing liabilities** | 3.43% | 3.81% | | **Net interest spread** | 2.90% | 2.55% | | **Net interest margin** | 3.72% | 3.45% | [Loan Portfolio Composition](index=14&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20LOAN%20DATA) This table provides a breakdown of the loan portfolio by category (Construction, Commercial Real Estate, Commercial & Industrial, Residential Real Estate, and Consumer) for the last five quarter-ends, showing both dollar amounts and percentage of total loans Loan Portfolio Composition (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | % of Total | | :--- | :--- | :--- | | Construction and development | $30,149 | 1.0% | | Commercial real estate | $803,384 | 25.7% | | Commercial and industrial | $73,832 | 2.3% | | Residential real estate | $2,221,316 | 71.0% | | **Gross loans held for investment** | **$3,128,881** | **100.0%** | [Nonperforming Assets](index=14&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20NONPERFORMING%20ASSETS) This table details the components of nonperforming assets, including nonaccrual loans and other real estate owned (OREO), for the last five quarter-ends. It also includes key asset quality ratios Nonperforming Assets (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonaccrual loans | $14,448 | $16,823 | $13,004 | | Other real estate owned | $744 | $1,707 | $1,452 | | **Total non-performing assets** | **$15,192** | **$18,530** | **$14,456** | | **Nonperforming assets to total assets** | 0.42% | 0.51% | 0.40% | [Allowance for Loan Losses Reconciliation](index=15&type=section&id=METROCITY%20BANKSHARES%2C%20INC.%20ALLOWANCE%20FOR%20LOAN%20LOSSES) This table provides a reconciliation of the allowance for loan losses, showing the beginning balance, net charge-offs by loan category, provision expense, and the ending balance for the last five quarters and the six-month periods ended June 30, 2025, and 2024 Allowance for Loan Losses Reconciliation (Dollars in thousands, for Q2 2025) | (Dollars in thousands, for Q2 2025) | Amount | | :--- | :--- | | Balance, beginning of period | $18,592 | | Total net charge-offs | $60 | | Provision for loan losses | $216 | | **Balance, end of period** | **$18,748** |

Financial Performance - MetroCity Bankshares reported net income of $16.8 million, or $0.65 per diluted share, for Q2 2025, an increase from $16.3 million in Q1 2025 and a slight decrease from $16.9 million in Q2 2024 [1][3] - For the first half of 2025, net income was $33.1 million, up from $31.6 million in the same period of 2024, representing a 4.9% increase [4] Revenue and Expenses - Net interest income for Q2 2025 was $32.2 million, an increase of $1.6 million from Q1 2025, driven by a rise in interest income [3][5] - Noninterest income for Q2 2025 was $5.7 million, a 5.1% increase from Q1 2025, attributed to higher gains on mortgage loans [9] - Noninterest expense totaled $14.1 million in Q2 2025, an increase of 2.3% from Q1 2025, primarily due to higher loan-related expenses and merger-related costs [13][14] Asset Quality - The provision for credit losses was $129,000 in Q2 2025, slightly down from $135,000 in Q1 2025, indicating stable asset quality [24] - Nonperforming assets decreased to $15.2 million, or 0.42% of total assets, down from $18.5 million in Q1 2025 [25][26] Balance Sheet - Total assets were $3.62 billion as of June 30, 2025, a decrease of $44 million from March 31, 2025, primarily due to declines in loans held for sale and investment [18] - Loans held for investment were $3.12 billion, a slight decrease from $3.13 billion in Q1 2025, but an increase from $3.09 billion in Q2 2024 [20] - Total deposits were $2.69 billion, down 1.7% from Q1 2025, reflecting a decrease in interest-bearing demand deposits [21][22] Merger Activity - MetroCity completed the acquisition of First IC Corporation and First IC Bank, with all regulatory approvals received, and the merger is expected to finalize in early Q4 2025 [2]

Core Viewpoint - MetroCity Bankshares, Inc. has received all necessary regulatory approvals to complete its merger with First IC Corporation, with First IC's shareholders voting in favor of the transaction [1][2]. Group 1: Merger Details - The merger is expected to be finalized in early Q4 2025, pending customary closing conditions [2]. - MetroCity's Chairman and CEO, Nack Y. Paek, expressed appreciation for the regulatory approval and shareholder support [2]. - First IC's Chairman, Chong Chun, also acknowledged the support from shareholders and looks forward to completing the merger [2]. Group 2: Company Profiles - MetroCity Bankshares, Inc. operates Metro City Bank with 20 banking offices across seven states and had $3.7 billion in assets as of March 31, 2025 [4]. - First IC Corporation, which operates First IC Bank, has ten banking locations and two loan production offices, with $1.2 billion in assets as of March 31, 2025 [5].

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) MetroCity Bankshares, Inc. reported total assets of $3.66 billion and net income of $16.3 million in Q1 2025, driven by increased net interest income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $3.66 billion as of March 31, 2025, driven by cash and loans held for sale, with shareholders' equity growing to $428.0 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$3,659,725** | **$3,594,045** | **+$65,680** | | Cash and cash equivalents | $285,055 | $249,875 | +$35,180 | | Loans, net | $3,113,943 | $3,139,191 | -$25,248 | | Loans held for sale | $34,532 | $— | +$34,532 | | **Total Liabilities** | **$3,231,756** | **$3,172,692** | **+$59,064** | | Total deposits | $2,737,030 | $2,736,798 | +$232 | | Federal Home Loan Bank advances | $425,000 | $375,000 | +$50,000 | | **Total Shareholders' Equity** | **$427,969** | **$421,353** | **+$6,616** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased to $16.3 million for Q1 2025, primarily driven by a 12.8% rise in net interest income to $30.6 million, resulting in diluted EPS of $0.63 Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $30,554 | $27,085 | +12.8% | | Provision for Credit Losses | $135 | $(140) | N/A | | Noninterest Income | $5,456 | $5,568 | -2.0% | | Noninterest Expense | $13,799 | $12,361 | +11.6% | | **Net Income** | **$16,297** | **$14,631** | **+11.4%** | | **Diluted EPS** | **$0.63** | **$0.57** | **+10.5%** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income decreased to $12.1 million in Q1 2025, primarily due to a $4.2 million other comprehensive loss from fair value changes in cash flow hedges Comprehensive Income (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $16,297 | $14,631 | | Other Comprehensive (Loss) Gain | $(4,219) | $5,137 | | **Comprehensive Income** | **$12,078** | **$19,768** | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to $428.0 million by March 31, 2025, driven by net income, partially offset by dividends declared and other comprehensive loss - Dividends declared increased to **$0.23 per share** in Q1 2025, up from **$0.20 per share** in Q1 2024[15](index=15&type=chunk) Changes in Shareholders' Equity - Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | Balance, January 1, 2025 | $421,353 | | Net Income | +$16,297 | | Other Comprehensive Loss | -$4,219 | | Dividends Declared | -$5,891 | | **Balance, March 31, 2025** | **$427,969** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $11.9 million, with a $20.0 million use in investing and $43.3 million provided by financing, increasing cash by $35.2 million Cash Flow Summary - Q1 2025 (in thousands) | Activity | Amount | | :--- | :--- | | Net Cash from Operating Activities | $11,911 | | Net Cash used in Investing Activities | $(20,004) | | Net Cash from Financing Activities | $43,273 | | **Net Change in Cash and Cash Equivalents** | **$35,180** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, loan portfolios, credit quality, interest rate derivatives, and regulatory capital, highlighting the First IC Corporation acquisition - On March 16, 2025, the Company entered into an agreement to acquire First IC Corporation, which had approximately **$1.2 billion** in total assets, **$1.0 billion** in loans, and **$977 million** in deposits as of March 31, 2025[107](index=107&type=chunk) - The company utilizes interest rate swaps and caps with notional amounts of **$800.0 million** and **$250.0 million**, respectively, to hedge against interest rate risk on its deposits[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - The Bank exceeded all regulatory capital requirements and was considered **"well-capitalized"** as of March 31, 2025, with a consolidated Total Capital to Risk-Weighted Assets ratio of **20.09%**[98](index=98&type=chunk)[99](index=99&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial real estate | $792,149 | $762,033 | | Residential real estate | $2,248,028 | $2,303,234 | | Commercial and industrial | $71,518 | $78,220 | | Construction and development | $28,403 | $21,569 | | **Total Loans Receivable** | **$3,140,165** | **$3,165,316** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights an 11.4% increase in net income to $16.3 million for Q1 2025, driven by net interest margin expansion and strong asset quality, with the First IC Corporation acquisition announced - Net income for Q1 2025 increased by **$1.7 million**, or **11.4%**, to **$16.3 million** compared to Q1 2024[133](index=133&type=chunk) - The net interest margin for Q1 2025 increased by **43 basis points** to **3.67%** from **3.24%** in Q1 2024, mainly due to a decrease in deposit costs and an increase in loan yields[138](index=138&type=chunk)[141](index=141&type=chunk) - The company announced an agreement to acquire First IC Corporation, which is projected to result in a pro forma company with approximately **$4.8 billion** in total assets[118](index=118&type=chunk) Key Performance Ratios | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 1.85% | 1.65% | | Return on average equity | 15.67% | 15.41% | | Net interest margin | 3.67% | 3.24% | | Efficiency ratio | 38.32% | 37.86% | [Quantitative and Qualitative Disclosures about Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, managed via NII and EVE simulations, indicating near-term asset sensitivity but long-term liability sensitivity and EVE decline in rising rates - The company's primary source of market risk is identified as **interest rate risk**[213](index=213&type=chunk) Net Interest Income (NII) Sensitivity Analysis (as of March 31, 2025) | Rate Scenario (Ramp) | 12-Month Projection | 24-Month Projection | | :--- | :--- | :--- | | +200 bps | +1.80% | -6.60% | | -200 bps | -1.50% | +0.60% | Economic Value of Equity (EVE) Sensitivity Analysis (as of March 31, 2025) | Rate Scenario (Shock) | % Change in EVE | | :--- | :--- | | +300 bps | -16.10% | | +200 bps | -10.20% | | +100 bps | -4.50% | | -100 bps | +3.40% | [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective** as of March 31, 2025[224](index=224&type=chunk) - There were **no material changes** to the Company's internal control over financial reporting during the quarter ended March 31, 2025[225](index=225&type=chunk) Part II. Other Information [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, which management believes will not materially adversely affect its financial condition or operations - The company is a party to various legal proceedings from normal business activities, but management does **not expect them to have a material adverse effect** on the company's business, results, or financial condition[227](index=227&type=chunk) [Risk Factors](index=82&type=page&id=Item%201A.%20Risk%20Factors) There were no material changes to the risk factors previously disclosed in the Company's 2024 Annual Report on Form 10-K - There are **no material changes** during the period to the risk factors previously disclosed in the Company's 2024 Form 10-K[229](index=229&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company has an active share repurchase program authorizing up to 925,250 shares, but no repurchases were made during Q1 2025 - The company **did not repurchase any shares** of its common stock during the three months ended March 31, 2025[231](index=231&type=chunk)[232](index=232&type=chunk) - As of March 31, 2025, the maximum number of shares that may yet be purchased under the announced plan is **925,250**[232](index=232&type=chunk) [Defaults Upon Senior Securities](index=84&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=84&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=84&type=section&id=Item%205.%20Other%20Information) No executive officers or directors adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - **No executive officers or directors adopted or terminated** Rule 10b5-1 trading plans during the first quarter of 2025[235](index=235&type=chunk) [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the First IC Corporation acquisition agreement and required CEO/CFO certifications

Financial Performance - Net income for the first quarter of 2025 was $16.3 million, an increase of 0.4% from the previous quarter and 11.4% from the same quarter last year[1][6]. - Annualized return on average assets was 1.85%, up from 1.82% in the fourth quarter of 2024 and 1.65% in the first quarter of 2024[5]. - The efficiency ratio improved to 38.3% from 40.5% in the previous quarter and 37.9% in the same quarter last year[5][15]. - Net income for Q1 2025 was $16,297,000, a marginal increase from $16,235,000 in Q4 2024[33]. - Basic income per share remained stable at $0.64 in Q1 2025, consistent with Q4 2024[33]. - Net interest income increased to $30,554,000 in Q1 2025 from $30,060,000 in Q4 2024, representing a growth of 1.64%[33]. - Noninterest income for the first quarter of 2025 was $5.5 million, a 2.5% increase from the previous quarter but a 2.0% decrease from the same quarter last year[12][13]. - Noninterest income rose to $5,456,000 in Q1 2025 compared to $5,321,000 in Q4 2024, an increase of 2.54%[33]. - Total noninterest expense decreased to $13,799,000 from $14,326,000 in the previous quarter, a reduction of 3.69%[38]. - Net income available to common shareholders for the quarter was $16,297,000, slightly up from $16,235,000 in the previous quarter, representing an increase of 0.38%[38]. Asset and Loan Management - Total assets increased by $65.9 million, or 1.8%, to $3.66 billion compared to the previous quarter[17]. - Total assets as of March 31, 2025, were $3,659,725,000, up from $3,594,045,000 at the end of Q4 2024[36]. - Total loans at the end of the period were $3,138,955 thousand, a decrease from $3,165,316 thousand in the prior quarter, representing a decline of 0.8%[48]. - Loans held for investment decreased by $26.6 million, or 0.8%, from the previous quarter, while total loans increased by $30.1 million in commercial real estate loans[19]. - The average balance of gross loans was $3,184,351,000, with an interest income of $50,253,000, yielding a rate of 6.40%[40]. - Residential real estate loans comprised 71.6% of total loans, amounting to $2,246,818,000 as of March 31, 2025[44]. Credit Quality and Losses - The provision for credit losses in Q1 2025 was $135,000, down from $202,000 in Q4 2024 and $140,000 in Q1 2024, primarily due to increased reserves for commercial real estate loans[24]. - Nonperforming assets reached $18.5 million, or 0.51% of total assets, as of March 31, 2025, an increase from $18.4 million at December 31, 2024, and $14.7 million at March 31, 2024[25]. - The allowance for credit losses as a percentage of total loans was 0.59% at March 31, 2025, unchanged from December 31, 2024, and slightly up from 0.58% at March 31, 2024[26]. - The allowance for credit losses as a percentage of nonperforming loans was 110.52% at March 31, 2025, compared to 104.08% at December 31, 2024, and 135.23% at March 31, 2024[26]. - Nonaccrual loans decreased to $16,823 thousand as of March 31, 2025, from $18,010 thousand in the previous quarter, representing a decline of 6.6%[46]. - Total non-performing loans increased to $16,823 thousand from $14,316 thousand in the prior quarter, marking a rise of 17.5%[46]. - The allowance for loan losses to total loans ratio remained stable at 0.59% as of March 31, 2025, consistent with the previous quarter[48]. Market and Operational Risks - Forward-looking statements indicate potential risks including economic conditions, regulatory changes, and impacts from proposed mergers, which could materially affect future financial performance[28][29]. - The company is pursuing a proposed merger with First IC, which carries risks related to cost savings, regulatory approvals, and integration challenges[29]. - The company emphasizes the importance of cybersecurity and technological advancements in maintaining competitive advantage in the financial services industry[29]. - The impact of geopolitical events, such as conflicts in Ukraine and Israel, may also pose risks to the company's operations and financial results[29]. - The company cautions against undue reliance on forward-looking statements due to inherent uncertainties and risks[30]. Deposit and Interest Metrics - Total deposits were $2.74 billion, showing a slight increase from the previous quarter but a decrease of 2.7% compared to the same quarter last year[20]. - Total deposits increased to $2,737,030,000 in Q1 2025 from $2,736,798,000 in Q4 2024[36]. - Net interest margin increased to 3.67%, up 10 basis points from the previous quarter and 43 basis points from the same quarter last year[9][10]. - Interest income for Q1 2025 was $52,519,000, slightly down from $52,614,000 in Q4 2024[33]. - Total interest income for the three months ended March 31, 2025, was $52,519,000, a slight decrease of 0.18% from $52,614,000 in the previous quarter[38].