Accessibility StatementSkip Navigation DORAVILLE, Ga., Dec. 2, 2025 /PRNewswire/ -- MetroCity Bankshares, Inc. (NASDAQ: MCBS) ("MetroCity"), the holding company for Metro City Bank (the "Bank"), has completed its acquisition of First IC Corporation (OTCEM: FIEB) ("First IC"), the parent company of First IC Bank, both based in Doraville, GA. The acquisition became effective after the close of business on December 1, 2025. "First IC and MetroCity have long competed with and admired one another and we are plea ...

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]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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]