Financial Position - As of December 31, 2025, total assets were $4.77 billion, total loans held for investment were $4.08 billion, total deposits were $3.65 billion, and total shareholders' equity was $544.2 million[20]. - Total deposits reached $3.65 billion as of December 31, 2025, with a weighted average deposit cost of 2.63%[57]. - Core deposits accounted for 75.2%, or $2.74 billion, of total deposits as of December 31, 2025[58]. - Brokered deposits increased to $747.8 million as of December 31, 2025, compared to $721.8 million in 2024[59]. - Net loans were 84.4% of total assets and 110.4% of total deposits as of December 31, 2025, compliant with the board's limits[66]. Loan Portfolio - The loan portfolio held for investment as of December 31, 2025, included $1.56 billion in commercial real estate loans, representing 38.3% of the total loan portfolio, an increase from 24.1% in 2024[29]. - The commercial real estate loans acquired from First IC contributed $719.1 million to the portfolio, alongside organic growth of $79.6 million[33]. - The commercial and industrial loans represented $96.4 million, or 2.4% of the total loan portfolio as of December 31, 2025, compared to $78.2 million, or 2.5% in 2024[37]. - The SBA and USDA loan portfolio totaled $439.8 million as of December 31, 2025, reflecting a 76.9% increase from $248.6 million in 2024[43]. - The construction and development loans amounted to $41.8 million, or 1.0% of the total loan portfolio, up from $21.6 million, or 0.7% in 2024[29]. - As of December 31, 2025, the outstanding balance of commercial and industrial SBA loans was $42.4 million, an increase from $28.5 million in 2024, with 49.0% guaranteed by the SBA[44]. - Residential real estate loans totaled $2.38 billion as of December 31, 2025, representing 58.3% of the total loan portfolio held for investment, down from 72.7% in 2024[48]. - The company originated $464.6 million of non-conforming residential mortgage loans in 2025, compared to $413.7 million in 2024, and sold $310.2 million of these loans during the same period[49]. Acquisition and Integration - The acquisition of First IC Corporation was completed on December 1, 2025, with total consideration of approximately $202.3 million, consisting of $90.5 million in equity and $111.9 million in cash[25]. - The integration of First IC Corporation, acquired on December 1, 2025, will require significant management attention and resources, with potential challenges in systems and personnel integration[217]. Capital Requirements and Regulation - The company is required to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets[91]. - The common equity Tier 1 (CET1) risk-based capital ratio is a key measure, primarily comprised of common stock instruments and retained earnings[92]. - The leverage capital ratio, serving as a minimum capital standard, is set at a required minimum of 4%[93]. - A capital conservation buffer of 2.5% is required above each minimum risk-based capital ratio to absorb losses during economic stress[94]. - As of December 31, 2025, the Bank's regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer[99]. - The company is subject to comprehensive supervision and regulation by the Federal Reserve under the Bank Holding Company Act[79]. - The company must act as a source of financial and managerial strength to its subsidiary bank[81]. - The Federal Reserve may require bank holding companies to maintain capital ratios substantially in excess of mandated minimum levels based on economic conditions[97]. - Failure to meet minimum capital requirements could result in adverse regulatory actions affecting operations or financial condition[98]. - The company is subject to oversight by various regulatory authorities, including the SEC and FINRA[90]. - The Company exceeded the $3.0 billion asset threshold for the first time in Q4 2021, becoming subject to consolidated risk-based capital requirements starting in 2022[100]. - The minimum capital requirement for the Community Bank Leverage Ratio is set at 9%, but the Bank has not opted into this framework[101]. - The Bank's capital requirements include a 6.5% CET1 to risk-weighted assets, 8.0% Tier 1 capital to risk-weighted assets, and 10.0% total capital to risk-weighted assets[104]. Risk Factors - Increased competition from fintech companies and other financial institutions may pressure the Bank's margins and profitability[145]. - Fluctuations in interest rates significantly impact net interest income, with elevated rates observed during 2024[148]. - Prolonged inflation may negatively affect profitability and demand for products and services, leading to increased default rates[151]. - Negative developments in the banking industry could impact customer confidence and liquidity, potentially requiring the Bank to sell securities at a loss[152]. - The company faces potential increases in deposit insurance costs due to negative developments in the banking industry, which could adversely affect its financial condition and operations[153]. - Liquidity risks are significant, as customer deposits, the primary source of funds, may decrease if customers perceive better investment opportunities, leading to increased funding costs and reduced net interest income[154]. - Approximately 97.6% of the company's loan portfolio is secured by real estate, making it vulnerable to adverse changes in real estate values, which could impair collateral value and increase credit risk[159]. - The company relies heavily on its management team, and the loss of key personnel could adversely impact its strategic initiatives and relationships with customers[167]. - Nonperforming assets negatively affect net income and increase loan administration costs, which could further impact the company's financial condition[169]. - The provision and allowance for credit losses may be insufficient to cover potential losses in the loan portfolio, leading to decreased net income and potential capital constraints[170]. - The company utilizes brokered deposits as a funding source, which may be unstable and could adversely affect its financial position if access to these deposits is restricted[166]. - The SBA lending program is crucial for the company, and any changes in government policy or funding could materially affect its ability to originate and sell SBA loans[161]. - The company may face challenges in meeting unfunded credit commitments, especially during economic stress, which could adversely impact its liquidity and financial condition[165]. - The company’s access to funding sources may be impaired by disruptions in financial markets or negative perceptions about the financial services industry, affecting its ability to capitalize on growth opportunities[156]. - Decreased residential mortgage origination and competitive pricing decisions may adversely affect profitability[171]. - Changes in interest rates could negatively impact the returns and market value of investment securities, potentially leading to realized losses[172]. - The company may face additional risks when implementing or acquiring new lines of business or products, which could affect profitability and operational efficiency[174]. - The focus on a limited demographic segment, particularly Asian-American communities, makes the company vulnerable to adverse economic changes affecting these populations[176]. - Ongoing litigation and regulatory investigations could result in significant costs and adversely affect the company's financial condition and reputation[177]. - The effectiveness of the company's risk management framework may not adequately mitigate risks, potentially leading to unexpected losses[180]. - Rapid technological changes in the financial services industry necessitate effective implementation of new technologies, which may pose operational challenges[181]. - Cybersecurity threats and system failures could lead to increased operating costs and significant liabilities[183]. - Dependence on third-party service providers for essential operations poses risks if these providers experience difficulties or terminate services[188]. - The development and use of artificial intelligence (AI) present regulatory and operational challenges that could adversely impact the company's business[189]. - The company relies on analytical and forecasting models for estimating credit losses and measuring fair value, which may be inadequate during market stress[192]. - Changes in accounting standards could materially impact the company's financial statements and require restatements of prior periods[195]. - The effectiveness of internal controls over financial reporting is crucial, as failures could lead to material adverse effects on business and stock price[196]. - The company is subject to extensive government regulation, which could limit activities and adversely impact asset growth and earnings[197]. - Regulatory examinations may lead to remedial actions if the company's financial condition is deemed unsatisfactory, potentially affecting operations[198]. - Changes in monetary policy by the Federal Reserve could adversely impact the company's operations and financial condition[199]. - Noncompliance with fair lending laws could result in material penalties and negatively affect the company's reputation and financial condition[200]. - The company may face increased deposit insurance premiums, which could adversely affect profitability and operational flexibility[205]. Corporate Governance - Directors and their families hold a 24.6% ownership interest, potentially allowing them to influence corporate actions without broader shareholder consent[206]. - The company's dividend policy may change, impacting the return on investment for shareholders[210]. - The company may need to raise additional capital in the future to meet regulatory capital requirements and maintain sufficient liquidity, which could include financing acquisitions[212]. - The ability to incur debt and pledge assets to secure that debt may impact profitability, as interest payments must be made before dividends to shareholders[214]. - The company intends to evaluate potential acquisitions and expansion opportunities, but risks include undisclosed liabilities, unanticipated costs, and integration challenges[215]. - Future success depends on executing the long-term business strategy, which includes enhancing reputation, attracting personnel, and improving operating efficiency[216]. - Failure to achieve strategic objectives could adversely affect business growth, financial condition, and results of operations[217].

Financial Performance - Net income for Q4 2025 was $18.3 million, a 6.0% increase from Q3 2025 and a 12.8% increase from Q4 2024[6]. - For the year ended December 31, 2025, net income was $68.7 million, a 6.5% increase from 2024[7]. - Net income available to common shareholders for the year ended December 31, 2025, was $68,705 thousand, up from $64,504 thousand in 2024, marking a 5.4% increase[51]. - Basic income per share for Q4 2025 was $0.69, compared to $0.68 in Q3 2025, showing a growth of 1.5%[45]. - The company reported a net interest income of $130,449 thousand for the year ended December 31, 2025, compared to $118,146 thousand for the previous year[57]. Loan and Deposit Growth - Total loans held for investment increased by $1.1 billion, or 36.6%, to $4.1 billion from Q3 2025[4]. - Loans held for investment rose to $4.05 billion at December 31, 2025, an increase of $1.08 billion, or 36.6%, compared to $2.97 billion at September 30, 2025[25]. - Total deposits increased by $952.9 million, or 35.4%, to $3.65 billion from Q3 2025[4]. - Total deposits reached $3.65 billion at December 31, 2025, an increase of $952.9 million, or 35.4%, from $2.69 billion at September 30, 2025[26]. - Average loans for the current period were $3,441,913,000, up from $3,125,389,000 in the previous year, showing growth in lending activity[65]. Noninterest Income and Expenses - Noninterest income for Q4 2025 was $7.8 million, a 26.5% increase from Q3 2025 and a 46.9% increase from Q4 2024[13][14]. - Noninterest expense for Q4 2025 totaled $20.4 million, a 39.3% increase from Q3 2025 and a 42.6% increase from Q4 2024[17][18]. - Total noninterest expense for the year ended December 31, 2025, was $63,020 thousand, compared to $53,379 thousand in 2024, indicating a rise of 17.9%[51]. Asset Growth - Total assets increased to $4.8 billion at December 31, 2025, up $1.14 billion, or 31.4%, from $3.63 billion at September 30, 2025[23]. - Total assets increased to $4,768,395 thousand as of December 31, 2025, up from $3,594,045 thousand a year earlier, representing a growth of 32.7%[49]. - Total liabilities increased to $4,224,038 thousand as of December 31, 2025, from $3,172,692 thousand a year earlier, a rise of 33.2%[49]. Credit Quality and Allowance for Losses - The allowance for credit losses as a percentage of total loans was 0.68% at December 31, 2025, up from 0.60% at September 30, 2025[33]. - Nonperforming assets totaled $26.1 million at December 31, 2025, or 0.55% of total assets, an increase from $14.0 million, or 0.38%, at September 30, 2025[32]. - The company recorded a credit provision for credit losses of $39,000 during Q4 2025, down from $543,000 in Q3 2025[30]. - The allowance for credit losses was $27,843 thousand as of December 31, 2025, compared to $18,744 thousand a year prior, indicating a proactive approach to risk management[49]. - The provision for loan losses was $12,000, a decrease from $(336,000) in the previous year, reflecting improved credit quality[65]. Efficiency and Ratios - The efficiency ratio was 46.7% for Q4 2025, compared to 38.7% for Q3 2025 and 40.5% for Q4 2024[20]. - The total risk-based capital ratio stood at 16.84% in Q4 2025, down from 20.74% in Q3 2025, reflecting a decrease in capital adequacy[45]. - The company reported a return on average assets of 1.80% for Q4 2025, slightly down from 1.89% in Q3 2025[45]. - The average yield on earning assets was 6.26% for the quarter ended December 31, 2025, compared to 6.24% in the previous quarter[53]. Mergers and Acquisitions - The acquisition of First IC Corporation was completed on December 1, 2025, enhancing competitive position and financial flexibility[5]. - The estimated Day 1 allowance for credit losses for loans acquired from First IC was $9.9 million[31].

Core Viewpoint - MetroCity Bankshares, Inc. reported a strong financial performance for the fourth quarter and the year ended December 31, 2025, with significant increases in net income, driven by higher net interest income and noninterest income, alongside the successful acquisition of First IC Corporation. Financial Performance - The company reported net income of $18.3 million, or $0.68 per diluted share, for Q4 2025, up from $17.3 million, or $0.67 per diluted share, in Q3 2025, and $16.2 million, or $0.63 per diluted share, in Q4 2024 [1][5] - For the full year 2025, net income was $68.7 million, or $2.64 per diluted share, compared to $64.5 million, or $2.52 per diluted share, in 2024 [1][6] Acquisition Impact - MetroCity completed the acquisition of First IC Corporation on December 1, 2025, which is expected to enhance its competitive position and financial flexibility [4] Net Interest Income and Margin - Interest income for Q4 2025 was $60.3 million, an increase of $6.3 million, or 11.6%, from Q3 2025, primarily due to a rise in average loan balances [7] - The net interest margin for Q4 2025 was 3.73%, up from 3.68% in Q3 2025 and 3.57% in Q4 2024 [10] Noninterest Income - Noninterest income for Q4 2025 was $7.8 million, an increase of $1.6 million, or 26.5%, from Q3 2025, driven by higher gains on residential mortgage loans [12] - For the year ended December 31, 2025, noninterest income totaled $25.2 million, an increase of $2.1 million, or 9.2%, from 2024 [14] Noninterest Expense - Noninterest expense for Q4 2025 was $20.4 million, an increase of $5.8 million, or 39.3%, from Q3 2025, mainly due to merger-related expenses and increased salaries [15] - For the full year 2025, noninterest expense totaled $63.0 million, an increase of $9.6 million, or 18.1%, from 2024 [17] Balance Sheet and Asset Quality - Total assets were $4.8 billion at December 31, 2025, an increase of $1.14 billion, or 31.4%, from September 30, 2025 [20] - Loans held for investment increased to $4.05 billion, a rise of $1.08 billion, or 36.6%, from September 30, 2025 [22] - Nonperforming assets totaled $26.1 million, or 0.55% of total assets, at December 31, 2025, an increase from previous quarters [29] Efficiency and Returns - The efficiency ratio was 46.7% for Q4 2025, compared to 38.7% for Q3 2025 [18] - The annualized return on average assets was 1.80% for Q4 2025, down from 1.89% in Q3 2025 [11]

Core Viewpoint - MetroCity Bankshares, Inc. has successfully completed the acquisition of First IC Corporation, enhancing its competitive position and financial flexibility to better serve its customers and communities [1][2]. Company Overview - MetroCity Bankshares, Inc. is headquartered in Doraville, Georgia, and operates as the holding company for Metro City Bank, which has banking offices across eight states [4]. - Following the acquisition, MetroCity's total assets are approximately $4.8 billion, with total loans of $4.0 billion and total deposits of $3.6 billion [2]. Acquisition Details - The acquisition of First IC Corporation became effective after the close of business on December 1, 2025 [1]. - The merger aims to create a stronger banking entity by combining the strengths of both organizations [2]. Financial Advisors - Hillworth Bank Partners acted as the financial advisor to MetroCity, providing a fairness opinion to its board of directors [3]. - Stephens Inc. served as the financial advisor to First IC, also rendering a fairness opinion to its board [3].

Core Points - MetroCity Bankshares, Inc. has received all necessary regulatory approvals and shareholder consent to merge with First IC Corporation, with the merger expected to finalize on December 1, 2025 [1][2]. Company Overview - MetroCity Bankshares, Inc. is headquartered in Doraville, Georgia, and operates Metro City Bank with 20 banking offices across seven states, holding $3.6 billion in assets as of September 30, 2025 [4]. - First IC Corporation, also based in Doraville, operates First IC Bank with ten banking locations and two loan production offices across several states, holding $1.2 billion in assets as of September 30, 2025 [5]. Advisory Information - Hillworth Bank Partners served as the financial advisor for MetroCity, providing a fairness opinion to its board, while Stephens Inc. acted as the financial advisor for First IC [3].

Merger and Acquisition - MetroCity Bancshares, Inc. is set to merge with First IC Corporation, with the transaction involving $111,965,213 in cash and 3,384,588 shares of common stock[124] - The merger is expected to be completed in the fourth quarter of 2025, pending customary closing conditions[125] - The company has received all required regulatory approvals for the merger with First IC Corporation[125] - The pro forma company post-merger is projected to have approximately $4.8 billion in total assets, $3.6 billion in total deposits, and $4.2 billion in total loans[124] Financial Performance - As of September 30, 2025, MetroCity Bankshares, Inc. had total assets of $3.63 billion, total loans of $3.20 billion, total deposits of $2.69 billion, and total shareholders' equity of $445.9 million[134] - For the three months ended September 30, 2025, interest income was $54,003 thousand, while interest expense was $22,211 thousand, resulting in net interest income of $31,792 thousand[138] - The net income for the three months ended September 30, 2025, was $17,270 thousand, compared to $16,826 thousand for the previous quarter[138] - Basic income per share for the three months ended September 30, 2025, was $0.68, an increase from $0.66 in the previous quarter[138] - For the nine months ended September 30, 2025, net income was $50.4 million, reflecting a 4.4% increase from $48.3 million in 2024[144] Interest Income and Expense - Interest income for the three months ended September 30, 2025, totaled $54.0 million, a slight increase of 0.3% from $53.8 million in 2024[146] - Interest expense decreased by 5.7% to $22.2 million for the three months ended September 30, 2025, compared to $23.5 million in 2024[150] - The net interest margin for the three months ended September 30, 2025, increased by 10 basis points to 3.68% from 3.58% for the same period in 2024[153] Credit Losses and Allowance - The provision for credit losses for the same period was $(543) thousand, indicating a reversal in expected credit losses[138] - The allowance for credit losses (ACL) as a percentage of gross loans was 0.60% for the periods ended September 30, 2025, December 31, 2024, and September 30, 2024[1] - The allowance for credit losses was $17.9 million at September 30, 2025, a decrease of $804,000 from $18.7 million at December 31, 2024[203] Deposits and Borrowings - Total deposits decreased by $43.7 million to $2.69 billion at September 30, 2025, compared to $2.74 billion at December 31, 2024[213] - Uninsured deposits increased to $712.7 million (26.1% of total deposits) as of September 30, 2025, compared to 24.1% at December 31, 2024[214] - The company had $1.29 billion of available borrowing capacity at various financial institutions as of September 30, 2025[214] Noninterest Income and Expense - Noninterest income for the three months ended September 30, 2025, was $6,178 thousand, while noninterest expense was $14,674 thousand[138] - Noninterest income for the three months ended September 30, 2025 was $6,178,000, a decrease of $437,000 or 6.6% compared to $6,615,000 for the same period in 2024[1] - Noninterest expense increased by $1.0 million, or 7.4%, to $14.5 million for the three months ended September 30, 2025, and increased by $3.5 million, or 9.0%, to $42.6 million for the nine months ended September 30, 2025, compared to the same periods in 2024[183][184] Risk Management - The company emphasizes the importance of managing credit risk and maintaining an adequate allowance for credit losses[130] - The company faces risks from prolonged elevated interest rates and inflation impacting financial projections and credit quality[115] - Interest rate risk is identified as the primary market risk, with management actively monitoring and managing the balance sheet to ensure stable net interest income[238] Economic Conditions - The company acknowledges potential impacts from economic conditions, including employment levels and consumer spending, on its financial performance[115] - The bank's net interest income sensitivity projections indicate a potential increase of 0.20% and a decrease of 0.20% under a +200 and -200 basis points scenario for the 12-month projection as of September 30, 2025[247] Branch Operations and Strategy - The bank operates 20 full-service branch locations across multiple states, focusing on Asian-American communities[135] - The bank's strategy includes delivering personalized service to small and medium-sized businesses and individuals, particularly first-generation immigrants[135]

Performance Overview - Major indices showed strong performance in Q3, with Russell Microcap rising 17.0% and Russell 2000 increasing 12.4%, while DJIA rose only 5.6% [2] - Cedar Creek's performance was notable, with a 9.9% increase in Q3 and a year-to-date increase of 26.5%, outperforming all major indices tracked [2][5] Historical Returns - Cedar Creek's average annual return over 19.75 years is 14.80%, with cumulative returns since inception at 1,418.1% [3][5] - A $100,000 investment in Cedar Creek at inception would have grown to $1,518,112 by September 30, 2025, compared to $367,933 in Russell MicroCap and $977,972 in NASDAQ [6] Fund Holdings Valuation - As of September 2025, fund holdings were trading at 7.7 times estimated earnings for the coming year, with a trailing earnings multiple of 12.4 times [7] - The fund's weighted price-to-book ratio was 1.2, with a dividend yield of 1.5% and an expected return on equity of 15.4% [7] Cash Levels and Repositioning - Cash levels increased from 3% to 17% during the quarter, primarily due to the sale of PharmChem at $3.75 per share [8] - The fund sold shares in Citizens Bancshares to reallocate to perceived better opportunities, increasing its position in Phi Group [8] Investment Focus - The fund is focusing on smaller community banks, finding several trading at 5-6 times forward earnings estimates [9] - The fund's exposure to expert market stocks increased to 41%, with five positions making up about 87% of this exposure [11][13] Performance Attribution - The increase in valuation of expert market positions contributed significantly to the fund's performance, with a 26% increase in aggregate during the quarter [18] - Control positions increased in value by just over 4%, while generally undervalued securities rose by 7% [18] Updates on Specific Holdings - PharmChem was sold, yielding a total gross return of approximately 40% over two years [20] - Solitron Devices saw an increase in bid price from $15.75 to $16.40 per share, with bookings significantly exceeding sales in recent quarters [21][22] Other Fund Holdings - ENDI Corp's share price rose from $15.65 to $17.55 during Q3, with assets under management for CrossingBridge Advisors growing over 30% in 2024 [25][26] - The fair value estimate for ENDI continues to rise, with a valuation of $21.85 to $26.50 per share based on cash earnings [28]

[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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