ATLANTA, July 24, 2026 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ:MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $22.1 million, or $0.76 per diluted share, for the second quarter of 2026, compared to $22.3 million, or $0.77 per diluted share, for the first quarter of 2026, and $16.8 million, or $0.65 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, the Company reported net income of $44.4 million or $1.53 per diluted share, compared to $33.1 million, or $1.29 per diluted share, for the same period in 2025.

Second Quarter 2026 Highlights:

Annualized return on average assets was 1.96% compared to 1.96% for the first quarter of 2026 and 1.87% for the second quarter of 2025.
Annualized return on average equity was 17.52%, compared to 18.28% for the first quarter of 2026 and 15.74% for the second quarter of 2025. Adjusted return on average shareholder's equity¹, which excluded average accumulated other comprehensive income and merger-related expenses, was 17.70% for the second quarter of 2026, compared to 19.36% for the first quarter of 2026, and 16.31% for the second quarter of 2025.
Efficiency ratio was 40.08%, compared to 42.16% for the first quarter of 2026 and 37.23% for the second quarter of 2025. Operating efficiency ratio¹ was 39.54%, compared to 38.87% for the first quarter of 2026 and 36.35% for the second quarter of 2025.
Net interest margin was 4.11%, compared to 4.08% for the first quarter of 2026 and 3.77% for the second quarter of 2025.

Year-to-Date 2026 Highlights:

Return on average assets increased to 2.01% for the six months ended June 30, 2026, compared to 1.86% for the same period in 2025.
Return on average equity increased to 17.90% for the six months ended June 30, 2026, compared to 15.71% for the same period in 2025. Adjusted return on average shareholder's equity¹, which, excluded average accumulated other comprehensive income, was 18.52% for the six months ended June 30, 2026, compared to 16.34% for the same period in 2025.
Efficiency ratio increased to 41.13% for the six months ended June 30, 2026, compared to 37.76% for the same period in 2025.
Net interest margin increased by 38 basis points to 4.10% for the six months ended June 30, 2026, compared to 3.72% for the same period in 2025.

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

Results of Operations

Net Income

Net income was $22.1 million for the second quarter of 2026, a decrease of $183,000, or 0.8%, from $22.3 million for the first quarter of 2026. This decrease was primarily due to a decrease in Small Business Administration ("SBA") servicing income of $1.2 million, and an increase in provision for income taxes of $595,000, offset by an increase in gain on sale of SBA loans of $491,000, and a decrease in noninterest expenses of $1.5 million. Net income increased by $5.3 million, or 31.5%, in the second quarter of 2026 compared to net income of $16.8 million for the second quarter of 2025 as a result of the First IC Corporation ("First IC") acquisition that occurred in fourth quarter of 2025. This increase was primarily due to an increase in interest income of $16.4 million, offset by an increase in interest expense of $4.5 million, an increase in noninterest expenses of $5.8 million, and an increase in income tax expense of $1.7 million.

Net income was $44.4 million for the six months ended June 30, 2026, an increase of $ 11.3 million, or 34.2%, from $33.1 million for the six months ended June 30, 2025. This increase was a result of the First IC acquisition that occurred in the fourth quarter of 2025, due to an increase in net interest income of $25.8 million and an increase in noninterest income of $1.0 million, offset by an increase in noninterest expense of $13.5 million, and an increase in income tax expense of $3.8 million.

Net Interest Income and Net Interest Margin

Interest income totaled $70.4 million for the second quarter of 2026, down $585,000, or 0.8%, from the previous quarter, primarily due to a $42.5 million decrease in average gross loans and an $80.5 million decrease in total average investments. Compared with the second quarter of 2025, interest income increased by $16.4 million, or 30.3%, primarily due to an $847.8 million increase in the average balance of gross loans, a $30.1 million increase in the average balance of investments, and a 26-basis-point increase in loan yield.

Interest expense totaled $26.4 million for the second quarter of 2026, a decrease of $139,000, or 0.5%, from the previous quarter, primarily due to a $125.7 million decrease in average interest-bearing deposits and a $26.2 million decrease in average borrowings, offset by an 11-basis-point increase in interest-bearing deposit costs. As compared to the second quarter of 2025, interest expense for the second quarter of 2026 increased by $4.5 million, or 20.5%, primarily due to a $578.3 million increase in average interest-bearing deposits balances and offset by a $16.0 million decrease in average borrowing balances and a three-basis point decrease in interest-bearing deposit costs. The Company currently has interest rate derivative agreements totaling $750.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (3.63% as of June 30, 2026). The weighted average pay rate for these interest rate derivatives is 3.12%. During the second quarter of 2026, we recorded a credit to interest expense of $1.5 million from the benefit received on these interest rate derivatives compared to a benefit of $2.9 million and $4.2 million recorded during the first quarter of 2026 and the second quarter of 2025, respectively.

The net interest margin for the second quarter of 2026 was 4.11% compared to 4.08% for the previous quarter, an increase of three basis points. The yield on average interest-earning assets for the second quarter of 2026 increased by six basis points to 6.57% from 6.51% for the previous quarter. This was partially offset by the cost of average interest-bearing liabilities for the second quarter of 2026 increasing by 11-basis-points to 3.36% from 3.25% for the previous quarter. Average earning assets decreased by $123.1 million from the previous quarter, due to a decrease in average loan balances of $42.5 million, and a decrease of $80.5 million in average total investments. Average interest-bearing liabilities decreased by $151.9 million from the previous quarter as average interest-bearing deposits decreased by $125.7 million and average borrowings decreased by $26.2 million.

As compared to the same period in 2025, the net interest margin for the second quarter of 2026 increased by 34 basis points to 4.11% from 3.77%, primarily due to a 23-basis-point increase in the yield on average interest-earning assets of $4.30 billion and a three-basis-point decrease in the cost of average interest-bearing liabilities of $3.15 billion. Average earning assets for the second quarter of 2026 increased by $877.9 million from the second quarter of 2025, due to a $30.1 million increase in average total investments and a $847.8 million increase in average loans. Average interest-bearing liabilities for the second quarter of 2026 increased by $562.2 million from the second quarter of 2025, driven by the increase in average interest-bearing deposits of $578.3 million, offset by a $16.0 million decrease in average borrowings.

Noninterest Income

Noninterest income for second quarter of 2026 was $5.8 million, a decrease of $602,000, or 9.5%, from the first quarter of 2026, primarily due to lower servicing income from our SBA and residential mortgage loans and other service charges, commission and fees, offset by higher gains on sale from our SBA loans and increases in service charges on deposits accounts. SBA loan sales totaled $27.1 million (sales premium of 8.21%) during the second quarter of 2026 compared to $19.7 million (sales premium of 7.68%) during the first quarter of 2026. Mortgage loan originations totaled $75.4 million during the second quarter of 2026 compared to $101.9 million during the first quarter of 2026. There were no mortgage loan sales during the second quarter of 2026 or the first quarter of 2026. During the second quarter of 2026, the fair value of our SBA servicing asset decreased by $86,000 compared to an increase in fair value of $666,000 during the first quarter of 2026. We also recorded no fair value impairment change on our mortgage servicing asset during the second quarter of 2026 or the first quarter of 2026.

Compared to the second quarter of 2025, noninterest income for the second quarter of 2026 increased by $22,000, or 0.4%, primarily due to higher gains on sale and servicing income from our SBA loans and service charges on deposits accounts, offset by decreases in gains on sale and servicing income from our residential mortgage loans.

Noninterest income for the six months ended June 30, 2026 totaled $12.1 million, an increase of $923,000, or 8.2%, from the six months ended June 30, 2025, primarily due to higher gains on sale and servicing income on SBA loans and service charges on deposits accounts, offset by decreases in gain on sale and servicing income on residential mortgage loans and other service charges.

Noninterest Expense

Noninterest expense for the second quarter of 2026 totaled $20.0 million, a decrease of $1.5 million, or 6.9%, from $21.4 million for the first quarter of 2026. This decrease was primarily attributable to decreases in merger-related expenses, salaries and employee benefits, occupancy and equipment and data processing, partially offset by an increase in other expenses.

Compared to the second quarter of 2025, noninterest expense during the second quarter of 2026 increased by $5.8 million, or 41.4%, primarily due to higher salaries and employee benefits, occupancy and equipment expense, data processing expense, security expense, loan expense, core deposit amortization expense, and merger-related expenses from the First IC acquisition that occurred in fourth quarter of 2025.

Noninterest expense for the six months ended June 30, 2026 totaled $41.4 million, an increase of $13.5 million, or 48.3%, from $27.9 million for the six months ended June 30, 2025. This increase was primarily attributable to increases in salaries and employee benefits partially due to higher commissions, employee insurance, and stock-based compensation, as well as higher expenses related to merger-related expenses, depreciation, occupancy, data processing, security, loans, and professional services.

The Company's efficiency ratio was 40.08% for the second quarter of 2026 compared to 42.16% and 37.23% for the first quarter of 2026 and the second quarter of 2025, respectively.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2026 was 27.7%, compared to 26.2% for the first quarter of 2026 and 28.9% for the second quarter of 2025.

Balance Sheet

Total assets were $4.52 billion at June 30, 2026, a decrease of $168.4 million, or 3.6%, from $4.69 billion at March 31, 2026, and an increase of $904.3 million or 25.0%, from $3.62 billion at June 30, 2025. The $168.4 million decrease in total assets at June 30, 2026 compared to March 31, 2026 was primarily due to decreases of $120.9 million in cash and cash equivalents, $43.4 million in gross loans, and $2.4 million in Federal Home Loan Bank stock. The $904.3 million increase in total assets at June 30, 2026 compared to June 30, 2025 was primarily due to the First IC acquisition that occurred in fourth quarter of 2025, with increases in gross loans of $831.1 million, goodwill and core deposit intangible of $68.0 million, securities of $11.2 million, operating lease right-of-use asset of $5.9 million, servicing asset of $4.4 million, and premises and equipment of $11.8 million partially offset by decreases in cash and cash equivalents of $19.3 million and interest rate derivatives of $7.9 million.

Investment Securities

Our investment securities portfolio made up only 0.99% of our total assets at June 30, 2026, compared to 0.96% and 0.93% at March 31, 2026 and June 30, 2025, respectively.

Loans

Loans held for investment were $3.96 billion at June 30, 2026, a decrease of $44.8 million, or 1.1%, compared to $4.00 billion at March 31, 2026, and an increase of $834.8 million, or 26.7%, compared to $3.1 billion at June 30, 2025. The decrease in loans at June 30, 2026 compared to March 31, 2026 was due to a $29.2 million decrease in commercial real estate loans, a $6.9 million decrease in commercial and industrial loans, and a $27.3 million decrease in residential real estate, offset by a $16.9 million increase in construction and development loans. Loans classified as held for sale totaled $1.4 million, $0, and $5.0 million at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Deposits

Deposits were $3.49 billion at June 30, 2026, a decrease of $137.3 million, or 3.8% compared to total deposits of $3.63 billion at March 31, 2026, and an increase of $799.9 million, or 29.7%, compared to total deposits of $2.69 billion at June 30, 2025. The decrease in total deposits at June 30, 2026 compared to March 31, 2026 was due to a $38.5 million decrease in time deposits, a $377,000 decrease in savings accounts, $105.2 million decrease in money market accounts and a $16.2 million decrease in noninterest-bearing demand deposits offset by a $23.0 million increase in interest-bearing demand deposits.

Noninterest-bearing deposits were $783.0 million at June 30, 2026, compared to $799.2 million at March 31, 2026 and $548.9 million at June 30, 2025. Noninterest-bearing deposits constituted 22.4% of total deposits at June 30, 2026, compared to 22.0% at March 31, 2026 and 20.4% at June 30, 2025. Interest-bearing deposits were $2.71 billion at June 30, 2026, compared to $2.83 billion at March 31, 2026 and $2.14 billion at June 30, 2025. Interest-bearing deposits constituted 77.6% of total deposits at June 30, 2026, compared to 78.0% at March 31, 2026 and 79.6% at June 30, 2025.

Uninsured deposits were 33.1% of total deposits at June 30, 2026, compared to 31.9% and 25.1% at March 31, 2026 and June 30, 2025, respectively. As of June 30, 2026, we had $1.72 billion available borrowing capacity at the Federal Home Loan Bank ($1.02 billion), Federal Reserve Discount Window ($634.0 million), and various other financial institutions (fed fund lines totaling $67.5 million).

Asset Quality

The Company recorded a recovery for credit losses of $792,000 during the second quarter of 2026, compared to a recovery for credit losses of $813,000 during the first quarter of 2026 and a provision for credit losses of $129,000 during the second quarter of 2025. The recovery for credit loss was recorded during the second quarter of 2026 was primarily due to the decrease in reserves mainly due to decreases in loan balances and reserves on individually analyzed loans. Annualized net recovery to average loans for the second quarter of 2026 was 0.01%, compared to net charge-off of 0.03% for the first quarter of 2026 and 0.01% for the second quarter of 2025.

Nonperforming assets totaled $18.7 million, or 0.41% of total assets, at June 30, 2026, an increase of $747,000, from $18.0 million, of 0.38% of total assets, at March 31, 2026, and an increase of $3.5 million from $15.2 million, or 0.42% of total assets, at June 30, 2025. The increase in nonperforming assets at June 30, 2026 compared to March 31, 2026 was due to a $611,000 increase in nonaccrual loans and a $153,000 increase in other real estate owned.

Allowance for credit losses as a percentage of total loans was 0.65% at June 30, 2026, compared to 0.66% at March 31, 2026 and 0.60% at June 30, 2025. Allowance for credit losses as a percentage of nonperforming loans was 148.08% at June 30, 2026, compared to 158.70% and 129.76% at March 31, 2026 and June 30, 2025, respectively.

About MetroCity Bankshares, Inc.

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

Forward-Looking Statements

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

Contacts

Farid Tan

President and Interim Chief Financial Officer

770-455-4978

faridtan@metrocitybank.bank

Explanation of Certain Unaudited Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). The measures entitled adjusted return on average shareholder's equity and tangible book value per share are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are return on average shareholder's equity and book value per share, respectively. Adjusted return on average shareholder's equity excludes average accumulated other comprehensive income and merger-related expenses. Tangible book value per share excludes goodwill and core deposit intangibles.

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

METROCITY BANKSHARES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	As of or For the Three Months Ended															As of or For the Six Months Ended
(Dollars in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Return on average shareholder's equity reconciliation
Average shareholder's equity (GAAP)	$	506,657		$	494,937		$	470,299		$	436,619		$	428,644		$	500,829		$	425,181
Less: average accumulated other comprehensive income		(649)			(1,679)			(3,593)			(5,552)			(8,737)			(1,162)			(10,901)
Adjusted average shareholder's equity (non-GAAP)	$	506,008		$	493,258		$	466,706		$	431,067		$	419,907		$	499,667		$	414,280

Net income (GAAP)	$	22,131		$	22,314		$	18,139		$	17,270		$	16,826		$	44,445		$	33,123
Add: First IC-merger related expenses (net of tax effect)		195			1,238			2,831			222			246			1,433			440
Adjusted net income (non-GAAP)	$	22,326		$	23,552		$	20,970		$	17,492		$	17,072		$	45,878		$	33,563

Return on average shareholder's equity (GAAP)		17.52	%		18.28	%		15.30	%		15.69	%		15.74	%		17.90	%		15.71	%
Adjusted return on average shareholder's equity (non-GAAP)		17.70	%		19.36	%		17.83	%		16.10	%		16.31	%		18.52	%		16.34	%

Tangible book value per share reconciliation
Total shareholder's equity (GAAP)	$	567,854		$	554,156		$	544,184		$	445,888		$	436,100		$	567,854		$	436,100
Less: goodwill and core deposit intangible		(68,039)			(68,357)			(68,675)			—			—			(68,039)			—
Adjusted total shareholder's equity (non-GAAP)	$	499,815		$	485,799		$	475,509		$	445,888		$	436,100		$	499,815		$	436,100

Shares of common stock outstanding		28,781,229			28,660,042			28,817,967			25,537,746			25,537,746			28,781,229			25,537,746

Book value per share (GAAP)	$	19.73		$	19.34		$	18.88		$	17.46		$	17.08		$	19.73		$	17.08
Tangible book value per share (non-GAAP)	$	17.37		$	16.95		$	16.50		$	17.46		$	17.08		$	17.37		$	17.08

Efficiency Ratio reconciliation
Efficiency ratio (GAAP)		40.08	%		42.16	%		46.71	%		38.65	%		37.23	%		41.13	%		37.76
Impact of First IC-merger related expenses included in noninterest expense		(0.54)			(3.29)			(8.22)			(0.80)			(0.88)			(1.93)			(0.80)
Efficiency ratio-operating (non-GAAP)		39.54	%		38.87	%		38.49	%		37.85	%		36.35	%		39.20	%		36.95

METROCITY BANKSHARES, INC.

	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)	2026			2026			2025			2025			2025			2026			2025
Selected income statement data:
Interest income	$	70,405		$	70,990		$	60,257		$	54,003		$	54,049		$	141,395		$	106,568
Interest expense		26,364			26,503			24,332			22,211			21,871			52,867			43,836
Net interest income		44,041			44,487			35,925			31,792			32,178			88,528			62,732
Provision for credit losses		(792)			(813)			(39)			(543)			129			(1,605)			264
Noninterest income		5,755			6,357			7,817			6,178			5,733			12,112			11,189
Noninterest expense		19,957			21,438			20,671			14,674			14,113			41,395			27,912
Income tax expense		8,500			7,905			4,971			6,569			6,843			16,405			12,622
Net income		22,131			22,314			18,139			17,270			16,826			44,445			33,123
Per share data:
Basic income per share	$	0.77		$	0.78		$	0.69		$	0.68		$	0.66		$	1.55		$	1.30
Diluted income per share	$	0.76		$	0.77		$	0.68		$	0.67		$	0.65		$	1.53		$	1.29
Dividends per share	$	0.29		$	0.29		$	0.25		$	0.25		$	0.23		$	0.58		$	0.46
Book value per share (at period end)	$	19.73		$	19.34		$	18.89		$	17.46		$	17.08		$	19.73		$	17.08
Tangible book value per share (at period end)⁽¹⁾	$	17.37		$	16.95		$	16.50		$	17.46		$	17.08		$	17.37		$	17.08
Shares of common stock outstanding		28,781,229			28,660,042			28,817,967			25,537,746			25,537,746			28,781,229			25,537,746
Weighted average diluted shares		28,949,200			29,051,061			26,806,181			25,811,422			25,715,206			28,984,717			25,697,183
Performance ratios:
Return on average assets		1.96	%		1.96	%		1.80	%		1.89	%		1.87	%		2.01	%		1.86	%
Return on average equity		17.52			18.28			15.45			15.69			15.74			17.90			15.71
Adjusted return on average equity⁽¹⁾		17.70			19.36			17.83			16.10			16.31			18.52			16.34
Dividend payout ratio		32.55			32.49			35.08			37.23			35.01			32.52			35.56
Yield on total loans		6.75			6.74			6.42			6.37			6.49			6.74			6.44
Yield on average earning assets		6.57			6.51			6.26			6.24			6.34			6.54			6.33
Cost of average interest-bearing liabilities		3.36			3.25			3.36			3.42			3.39			3.45			3.43
Cost of interest-bearing deposits		3.24			3.12			3.22			3.28			3.25			3.34			3.30
Net interest margin		4.11			4.08			3.73			3.68			3.77			4.10			3.72
Efficiency ratio⁽²⁾		40.08			42.16			46.71			38.65			37.23			41.13			37.76
Efficiency ratio - operating ⁽¹⁾⁽²⁾		39.54			38.87			38.49			37.85			36.35			39.20			36.95
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		(0.01)	%		0.03	%		(0.00)	%		0.03	%		0.01	%		(0.01)	%		0.01	%
Nonperforming assets to gross loans held for investment and OREO		0.47			0.45			0.64			0.47			0.49			0.47			0.49
ACL to nonperforming loans		148.08			158.54			107.48			137.66			129.76			148.08			129.76
ACL to loans held for investment		0.65			0.66			0.68			0.60			0.60			0.65			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits		114.16	%		111.12	%		111.84	%		110.43	%		116.34	%		114.16	%		116.34	%
Noninterest bearing deposits to deposits		22.44			22.04			21.42			20.22			20.41			22.44			20.41
Investment securities to assets		0.99			0.96			1.38			0.94			0.93			0.99			0.93
Common equity to assets		11.23			10.52			9.98			12.29			12.06			11.23			12.06
Leverage ratio		12.11			10.47			10.00			12.21			11.91			12.11			11.91
Common equity tier 1 ratio		18.63			16.52			15.90			19.93			19.91			18.63			19.91
Tier 1 risk-based capital ratio		18.63			16.52			15.90			19.93			19.91			18.63			19.91
Total risk-based capital ratio		19.51			17.44			16.84			20.74			20.78			19.51			20.78
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	463,501		$	496,552		$	702,586		$	538,675		$	559,112		$	463,501		$	559,112
Mortgage loan production		75,373			101,948			111,717			168,562			93,156			177,321			184,278
Mortgage loan sales		—			—			197,553			18,248			54,309			—			94,360
SBA/USDA loans serviced for others		682,172			699,028			685,481			460,720			480,867			682,172			480,867
SBA loan production		46,588			20,816			32,575			17,727			29,337			67,404			49,749
SBA loan sales		27,140			19,733			9,792			13,415			20,707			46,873			37,286

⁽¹⁾	Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
⁽²⁾	Represents noninterest expense divided by the sum of net interest income plus noninterest income.

METROCITY BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	As of the Quarter Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands)	2026		2026		2025		2025		2025
ASSETS
Cash and due from banks	$	254,368	$	373,956	$	370,832	$	213,941	$	273,596
Federal funds sold		12,322		13,645		12,844		13,217		12,415
Cash and cash equivalents		266,690		387,601		383,676		227,158		286,011
Equity securities		18,481		18,564		18,646		18,605		18,481
Securities available for sale (at fair value)		26,183		26,616		47,179		15,365		15,030
Loans held for investment		3,956,319		4,001,114		4,051,397		2,966,859		3,121,534
Allowance for credit losses		(25,818)		(26,700)		(27,843)		(17,940)		(18,748)
Loans less allowance for credit losses		3,930,501		3,974,414		4,023,554		2,948,919		3,102,786
Loans held for sale		1,350		—		9,741		231,259		4,988
Accrued interest receivable		20,115		20,299		20,298		16,912		16,528
Federal Home Loan Bank stock		21,112		23,487		27,565		22,693		22,693
Premises and equipment, net		29,619		29,633		29,879		17,836		17,872
Operating lease right-of-use asset		14,040		14,412		15,193		7,712		8,197
Foreclosed real estate, net		1,300		1,147		208		919		744
SBA servicing asset, net		11,180		11,267		10,601		6,988		6,823
Mortgage servicing asset, net		1,308		1,484		1,660		1,662		1,676
Bank owned life insurance		77,066		76,424		75,786		75,148		74,520
Goodwill		56,048		56,048		56,048		—		—
Core deposit intangible		11,991		12,309		12,627		—		—
Interest rate derivatives		4,791		4,970		6,343		9,435		12,656
Other assets		28,179		29,672		29,396		28,852		26,683
Total assets	$	4,519,954	$	4,688,347	$	4,768,400	$	3,629,463	$	3,615,688

LIABILITIES
Noninterest-bearing deposits	$	782,972	$	799,190	$	780,828	$	544,439	$	548,906
Interest-bearing deposits		2,706,385		2,827,484		2,865,173		2,148,645		2,140,587
Total deposits		3,489,357		3,626,674		3,646,001		2,693,084		2,689,493
Federal Home Loan Bank advances		375,000		425,000		510,000		425,000		425,000
Operating lease liability		14,131		14,516		15,306		7,704		8,222
Accrued interest payable		7,537		10,200		10,731		3,567		3,438
Other liabilities		66,075		57,801		42,178		54,220		53,435
Total liabilities	$	3,952,100	$	4,134,191	$	4,224,216	$	3,183,575	$	3,179,588

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		288		286		1,159		255		255
Additional paid-in capital		136,123		135,531		138,675		51,151		50,212
Retained earnings		431,518		417,750		402,684		390,971		380,046
Accumulated other comprehensive income		(75)		589		1,666		3,511		5,587
Total shareholders' equity		567,854		554,156		544,184		445,888		436,100
Total liabilities and shareholders' equity	$	4,519,954	$	4,688,347	$	4,768,400	$	3,629,463	$	3,615,688

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(Dollars in thousands)	2026		2026		2025		2025		2025		2026		2025
Interest and dividend income:
Loans, including fees	$	67,312	$	67,139	$	57,335	$	50,975	$	50,936	$	134,451	$	101,189
Other investment income		2,972		3,730		2,790		2,884		2,970		6,702		5,096
Federal funds sold		121		121		132		144		143		242		283
Total interest income		70,405		70,990		60,257		54,003		54,049		141,395		106,568

Interest expense:
Deposits		22,140		22,077		19,623		17,799		17,496		44,217		35,473
FHLB advances and other borrowings		4,224		4,426		4,709		4,412		4,375		8,650		8,363
Total interest expense		26,364		26,503		24,332		22,211		21,871		52,867		43,836

Net interest income		44,041		44,487		35,925		31,792		32,178		88,528		62,732

Provision (recovery) for credit losses		(792)		(813)		(39)		(543)		129		(1,605)		264

Net interest income after provision for loan losses		44,833		45,300		35,964		32,335		32,049		90,133		62,468

Noninterest income:
Service charges on deposit accounts		958		848		772		551		505		1,806		1,005
Other service charges, commissions and fees		1,428		1,581		1,748		2,376		1,620		3,009		3,216
Gain on sale of residential mortgage loans		—		—		2,808		166		579		—		978
Mortgage servicing income, net		271		306		504		516		781		577		1,399
Gain on sale of SBA loans		1,536		1,045		463		558		643		2,581		1,301
SBA servicing income, net		728		1,905		800		1,203		642		2,633		1,555
Other income		834		672		722		808		963		1,506		1,735
Total noninterest income		5,755		6,357		7,817		6,178		5,733		12,112		11,189

Noninterest expense:
Salaries and employee benefits		11,344		11,501		10,674		8,953		8,554		22,845		17,047
Occupancy and equipment		2,328		2,434		1,581		1,410		1,380		4,762		2,797
Data Processing		535		682		466		394		329		1,217		674
Advertising		178		223		180		161		149		401		316
Merger-related expenses		270		1,676		3,833		301		333		1,946		595
Other expenses		5,302		4,922		3,937		3,455		3,368		10,224		6,483
Total noninterest expense		19,957		21,438		20,671		14,674		14,113		41,395		27,912

Income before provision for income taxes		30,631		30,219		23,110		23,839		23,669		60,850		45,745
Provision for income taxes		8,500		7,905		4,971		6,569		6,843		16,405		12,622
Net income available to common shareholders	$	22,131	$	22,314	$	18,139	$	17,270	$	16,826	$	44,445	$	33,123

METROCITY BANKSHARES, INC. QTD AVERAGE BALANCES AND YIELDS/RATES

	Three Months Ended
	June 30, 2026						March 31, 2026						June 30, 2025
	Average		Interest and		Yield /		Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	250,992	$	2,320	3.71	%	$	318,318	$	3,329	4.24	%	$	231,803	$	2,848	4.93	%
Investment securities		47,970		773	6.46			61,169		522	3.46			37,040		265	2.87
Total investments		298,962		3,093	4.15			379,487		3,851	4.12			268,843		3,113	4.64
Construction and development		58,374		1,059	7.28			43,100		794	7.47			28,283		580	8.23
Commercial real estate		1,454,209		29,466	8.13			1,290,296		29,836	9.38			807,897		17,612	8.74
Commercial and industrial		88,982		2,166	9.76			86,547		1,572	7.37			71,274		1,544	8.69
Residential real estate		2,395,849		34,610	5.79			2,619,786		34,922	5.41			2,242,456		31,137	5.57
Consumer and other		636		11	6.94			847		15	7.18			365		63	69.23
Gross loans⁽²⁾		3,998,050		67,312	6.75			4,040,576		67,139	6.74			3,150,275		50,936	6.49
Total earning assets		4,297,012		70,405	6.57			4,420,063		70,990	6.51			3,419,118		54,049	6.34
Noninterest-earning assets		230,581						202,774						199,302
Total assets		4,527,593						4,622,837						3,618,420
Interest-bearing liabilities:
NOW and savings deposits		278,175		1,579	2.28			272,645		1,552	2.31			162,810		1,089	2.68
Money market deposits		1,112,349		8,324	3.00			1,175,909		7,506	2.59			1,032,754		6,815	2.65
Time deposits		1,349,972		12,237	3.64			1,417,623		13,019	3.72			966,678		9,592	3.98
Total interest-bearing deposits		2,740,496		22,140	3.24			2,866,177		22,077	3.12			2,162,242		17,496	3.25
Borrowings		410,165		4,224	4.13			436,344		4,426	4.11			426,173		4,375	4.12
Total interest-bearing liabilities		3,150,661		26,364	3.36			3,302,521		26,503	3.25			2,588,415		21,871	3.39
Noninterest-bearing liabilities:
Noninterest-bearing deposits		779,925						774,905						529,130
Other noninterest-bearing liabilities		90,350						50,474						72,231
Total noninterest-bearing liabilities		870,275						825,379						601,361
Shareholders' equity		506,657						494,937						428,644
Total liabilities and shareholders' equity	$	4,527,593					$	4,622,837					$	3,618,420
Net interest income			$	44,041					$	44,487					$	32,178
Net interest spread					3.21						3.26						2.95
Net interest margin					4.11						4.08						3.77


(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)	Average loan balances include nonaccrual loans and loans held for sale.

METROCITY BANKSHARES, INC. YTD AVERAGE BALANCES AND YIELDS/RATES

	Six Months Ended
	June 30, 2026						June 30, 2025
	Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	284,469	$	5,201	3.69	%	$	$ 195,840	$	4,946	5.09	%
Investment securities		54,533		1,743	6.45			34,551		433	2.53
Total investments		339,002		6,944	4.13			230,391		5,379	4.71
Construction and development		50,779		1,853	7.36			25,816		1,060	8.28
Commercial real estate		1,373,705		59,302	8.71			793,968		33,769	8.58
Commercial and industrial		87,771		3,738	8.59			72,032		3,132	8.77
Residential real estate		2,507,199		69,530	5.59			2,275,082		63,123	5.60
Consumer and other		741		28	7.62			321		105	65.96
Gross loans⁽²⁾		4,020,195		134,451	6.74			3,167,219		101,189	6.44
Total earning assets		4,359,197		141,395	6.54			3,397,610		106,568	6.33
Noninterest-earning assets		97,725						198,293
Total assets		4,456,922						3,595,903
Interest-bearing liabilities:
NOW and savings deposits		275,425		3,131	2.29			158,300		2,040	2.60
Money market deposits		1,011,090		15,830	3.16			1,021,674		13,137	2.59
Time deposits		1,383,610		25,256	3.68			986,567		20,296	4.15
Total interest-bearing deposits		2,670,125		44,217	3.34			2,166,541		35,473	3.30
Borrowings		423,182		8,650	4.12			408,186		8,363	4.13
Total interest-bearing liabilities		3,093,307		52,867	3.45			2,574,727		43,836	3.43
Noninterest-bearing liabilities:
Noninterest-bearing deposits		777,429						524,155
Other noninterest-bearing liabilities		85,357						71,840
Total noninterest-bearing liabilities		862,786						595,995
Shareholders' equity		500,829						425,181
Total liabilities and shareholders' equity	$	4,456,922					$	3,595,903
Net interest income			$	88,528					$	62,732
Net interest spread					3.09						2.90
Net interest margin					4.10						3.72


(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)	Average loan balances include nonaccrual loans and loans held for sale.

METROCITY BANKSHARES, INC. LOAN DATA

	As of the Quarter Ended
	June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and development	$	69,348	1.7	%	$	52,452	1.3	%	$	41,797	1.0	%	$	32,415	1.1	%	$	30,149	1.0	%
Commercial real estate		1,463,460	36.7			1,492,703	37.0			1,560,728	38.3			814,464	27.4			803,384	25.7
Commercial and industrial		84,999	2.1			91,877	2.3			96,360	2.4			69,430	2.3			73,832	2.3
Residential real estate		2,365,132	59.5			2,392,444	59.4			2,378,311	58.3			2,057,281	69.2			2,221,316	71.0
Consumer and other		600	—			643	—			627	—			325	—			200	—
Gross loans held for investment	$	3,983,539	100.0	%	$	4,030,119	100.0	%	$	4,077,822	100.0	%	$	2,973,915	100.0	%	$	3,128,881	100.0	%
Unearned income		(9,660)				(10,093)				(6,621)				(7,056)				(7,347)
Loan discounts		(17,560)				(18,912)				(19,804)				—				—
Allowance for credit losses		(25,818)				(26,700)				(27,843)				(17,940)				(18,748)
Net loans held for investment	$	3,930,501			$	3,974,414			$	4,023,554			$	2,948,919			$	3,102,786

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS

	As of the Quarter Ended
	June 30,			March 31,			December 31,		September 30,			June 30,
(Dollars in thousands)	2026			2026			2025		2025			2025
Nonaccrual loans	$	17,435		$	16,824		$	25,906	$	13,032		$	14,448
Past due loans 90 days or more and still accruing		—			17			—		—			—
Total non-performing loans		17,435			16,841			25,906		13,032			14,448
Other real estate owned		1,300			1,147			208		919			744
Total non-performing assets	$	18,735		$	17,988		$	26,114	$	13,951		$	15,192

Nonperforming loans to gross loans held for investment		0.44	%		0.42	%		0.64		0.44	%		0.46	%
Nonperforming assets to total assets		0.41			0.38			0.55		0.38			0.42
Allowance for credit losses to non-performing loans		148.08			158.54			107.48		137.66			129.76

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES

	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2026			2026			2025			2025			2025			2026			2025
Balance, beginning of period	$	26,700		$	27,843		$	17,940		$	18,748		$	18,592		$	18,744		$	18,112
First IC Day 1 ACL balance		—			—			9,885			—			—			9,885			—
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		(96)			185			(1)			110			62			170			(83)
Commercial and industrial		(3)			89			(5)			117			(2)			280			119
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			—			—			—			—			—
Total net charge-offs/(recoveries)		(99)			274			(6)			227			60			450			36
Provision (recovery) for loan losses		(981)			(869)			12			(581)			216			(336)			668
Balance, end of period	$	25,818		$	26,700		$	27,843		$	17,940		$	18,748		$	27,843		$	18,744
Total loans at end of period⁽¹⁾	$	3,983,539		$	4,030,119		$	4,077,822		$	2,973,915		$	3,128,881		$	4,077,822		$	3,165,316
Average loans⁽¹⁾	$	3,997,375		$	4,035,706		$	3,441,913		$	3,124,291		$	3,130,515		$	3,202,087		$	3,125,389
Net charge-offs/(recoveries) to average loans		(0.01)	%		0.03	%		(0.00)	%		0.03	%		0.01	%		0.01	%		0.00	%
Allowance for loan losses to total loans		0.65			0.66			0.68			0.60			0.60			0.68			0.59

(1)

Excludes loans held for sale.

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SOURCE MetroCity Bankshares, Inc.