Atlanta, October 23, 2026 / PRNewswire / -- MetroCity Bankshares, Inc. ("MetroCity" or "the Company") (Nasdaq: MCBS), which is the holding company of Metro City Bank ("Bank"), today announced that its net profit for the third quarter of 2026 was $24.3 million, with earnings per share diluted at $0.84; the net profit for the second quarter of last year was $22.1 million, with earnings per share diluted at $0.76; the net profit for the third quarter of 2025 was $17.3 million, with earnings per share diluted at $0.67.

For the nine months ending September 30, 2026, the company's net profit was 68.7 million US dollars, with earnings per diluted share amounting to 2.37 US dollars; in the same period of the previous year, these figures were 50.4 million US dollars and 1.96 US dollars respectively.

Key Points of the Third Quarter of 2026

• The average annualized return on assets is 2.12%, which is higher than 1.96% in the second quarter of 2026 and 1.89% in the third quarter of 2025.
• The average annualized return on equity was 16.97%, which is higher than 16.01% in the second quarter of 2026 and 15.69% in the third quarter of 2025. After excluding average cumulative other comprehensive income and merger and acquisition-related expenses, the adjusted average return on shareholders' equity was 17.04%, which is also higher than 16.17% in the second quarter of 2026 and 16.10% in the third quarter of 2025.
• The efficiency ratio is 41.81%, which is higher than 40.08% in the second quarter of 2026 and 38.65% in the third quarter of 2025. Excluding merger and acquisition-related expenses, the operating efficiency ratio is 41.56%, which is higher than 39.54% in the second quarter of 2026 and 37.85% in the third quarter of 2025.
• The net interest margin was 4.07%, lower than 4.11% in the second quarter of 2026, but higher than 3.68% in the third quarter of 2025.

Key points from the beginning of 2026 to the present

• For the nine months ending September 30, 2026, the average return on assets rose to 1.99%, which is higher than the 1.87% during the same period in 2025.
• For the nine months ending September 30, 2026, the average return on equity rose to 16.54%, higher than 15.70% during the same period in 2025. After excluding average cumulative other comprehensive income and merger and acquisition-related expenses, the adjusted average return on shareholders' equity was 16.93%, which is higher than 16.25% in the same period of 2025.
• For the nine months ending September 30, 2026, the efficiency ratio rose to 41.35%, which is higher than the 38.06% in the same period of 2025.
• For the nine months ending September 30, 2026, the net interest margin expanded by 38 basis points to 4.09% compared to the same period in 2025.

Operational Results

Net Profit

In the third quarter of 2026, net profit amounted to 24.3 million US dollars, an increase of 2.2 million US dollars compared to the second quarter of 2026, representing a growth rate of 9.8%. The growth was mainly due to a reduction in income tax expenses by 4.8 million US dollars, which included 4 million US dollars in tax credit benefits; this was partially offset by a decrease in non-interest income by 1.4 million US dollars, a reduction in credit losses recovered by 0.72 million US dollars, a decrease in net interest income by 0.483 million US dollars, and an increase in non-interest expenses by 0.087 million US dollars.

Compared to the third quarter of 2025, net profit increased by 7 million US dollars, representing a growth of 40.7%. The year-over-year increase reflects the impact of the company's acquisition of First IC Corporation ("First IC") in the fourth quarter of 2025, mainly due to an increase in interest income of 15.7 million US dollars and a mitigated effect of an increase in income tax of 2.9 million US dollars; this was partially offset by an increase in interest expenses of 4 million US dollars, an increase in non-interest expenses of 5.4 million US dollars, a decrease in non-interest income of 1.8 million US dollars, and a reduction in credit loss recoveries of 471,000 US dollars.

For the nine months ending September 30, 2026, the net profit was 68.7 million US dollars, an increase of 18.4 million US dollars compared to the same period in 2025, representing a growth of 36.4%. This growth reflects the impact of the acquisition of First IC in the fourth quarter of 2025, mainly attributed to an increase in net interest income by 37.6 million US dollars and an increase in credit loss recoveries by 1.4 million US dollars; however, this was partially offset by an increase in non-interest expenses of 18.9 million US dollars, a decrease in non-interest income by 871,000 US dollars, and an increase in income tax expenses by 885,000 US dollars.

Net interest income and net interest margin

In the third quarter of 2026, interest income amounted to 69.7 million US dollars, which represents a decrease of 678,000 US dollars or 1.0% compared to the previous quarter, mainly due to a reduction in average total loans by 56.2 million US dollars. Compared to the third quarter of 2025, interest income increased by 15.7 million US dollars, or 29.1%, primarily due to an increase in the average total loan balance by 766.9 million US dollars, an increase in the average investment balance by 44.8 million US dollars, and a rise in the loan yield rate by 33 basis points.

In the third quarter of 2026, interest expenses amounted to 26.2 million US dollars, which is a decrease of 195,000 US dollars or 0.7% compared to the previous quarter. This reduction was mainly due to a decrease in average interest-bearing deposits by 27.9 million US dollars and a decrease in average loans by 34.8 million US dollars. Compared to the third quarter of 2025, interest expenses in the third quarter of 2026 increased by 4 million US dollars, or 17.8%, primarily because the average balance of interest-bearing deposits increased by 562.8 million US dollars; this increase was partly offset by a decrease in the average loan balance by 49.6 million US dollars and a reduction in the cost of interest-bearing deposits by 3 basis points.

The company currently holds interest rate derivative contracts totaling $650 million, which are used to hedge the cash flows from deposit accounts linked to the effective federal funds rate (as of September 30, 2026, this rate was 3.88%). The weighted average payment rate for these interest rate derivative instruments is 3.38%. In the third quarter of 2026, the company received an interest expense deduction of $1.5 million from these derivative instruments; whereas in the second quarter of 2026 and the third quarter of 2025, the deductions were $1.4 million and $3.8 million, respectively.

In the third quarter of 2026, the net interest margin was 4.07%, which is lower than the 4.11% of the previous quarter, a decrease of 4 basis points. The average yield on earning assets fell by 5 basis points to 6.52%, while the average cost of interest-bearing liabilities remained unchanged at 3.36%. The average amount of earning assets decreased by $54.1 million compared to the previous quarter, mainly due to a reduction in the average loan balance by $56.2 million. The average amount of interest-bearing liabilities decreased by $62.8 million, reflecting a reduction in average interest-bearing deposits by $27.9 million and average borrowings by $34.8 million.

Compared to the same period in 2025, the net interest margin in the third quarter of 2026 increased from 3.68% to 4.07%, an increase of 39 basis points. This was mainly due to a 28-basis-point rise in the yield on average interest-bearing assets and a 6-basis-point decrease in the cost of average interest-bearing liabilities. In the third quarter of 2026, the average amount of interest-bearing assets was $4.24 billion, which is $811.7 million more than in the third quarter of 2025, due to an increase in total average investments of $44.8 million and an increase in average loans of $766.9 million. In the same quarter, the average amount of interest-bearing liabilities was $3.09 billion, up by $513.1 million from the third quarter of 2025, primarily because average interest-bearing deposits increased by $562.8 million, which was partially offset by a decrease of $49.6 million in average borrowings.

Non-interest income

In the third quarter of 2026, non-interest income amounted to $4.4 million, which is a decrease of $1.4 million compared to the second quarter of 2026, representing a decline of 23.8%. This reduction was mainly due to a decrease in gains from the sale of SBA loans, as well as a decrease in the fair value of equity securities, which led to a reduction in other income, reflecting changes in market interest rates during that quarter. This was partially offset by an increase in net SBA service income, as well as other service fees, commissions, and handling charges. In the third quarter of 2026, the amount of SBA loans sold was $9.7 million, with a sales premium of 8.16%; in the second quarter of 2026, it was $27.1 million, with a sales premium of 8.21%. The amount of mortgage loans issued in the third quarter of 2026 was $85.1 million, which is an increase from $75.4 million in the second quarter of 2026. No mortgage loans were sold in either the third or second quarter of 2026. In the third quarter of 2026, the fair value of the company's SBA service assets decreased by $218,000; in the second quarter of 2026, it decreased by $86,000. The company did not provide for an impairment of the fair value of mortgage loan service assets in either the third or second quarter of 2026. Unrealized losses of $743,000 were recognized on equity securities. These equity securities represent the company's investment in a mutual fund that holds high-quality fixed-income securities, supports affordable housing in the company's market, and complies with the requirements of the Community Reinvestment Act. According to GAAP, despite the underlying holdings being bonds, changes in the fair value of this investment are still recognized in income. This investment remains an important part of the bank's community development strategy, especially after the recent completion of mergers and acquisitions.

Compared to the third quarter of 2025, non-interest income in the third quarter of 2026 decreased by $1.8 million, representing a 29.0% decline. This was mainly due to reductions in service income from residential mortgages and sales proceeds, SBA loan service income, other service fees, and the fair value decline of equity securities recorded as other income; this was partially offset by increased sales proceeds from SBA loans and service fees for deposit accounts.

For the nine months ending September 30, 2026, non-interest income totaled 16.5 million US dollars, which is a decrease of 871,000 US dollars or 5.0% compared to the same period in 2025. This reduction was mainly due to decreased earnings from the sale of residential mortgages, service fees, and other income sources; however, this was partially offset by increased earnings from the sale of SBA loans and service fees, as well as increased service fees for deposit accounts.

Non-interest expenses

In the third quarter of 2026, non-interest expenses totaled 20 million US dollars, which is an increase of 87,000 US dollars from 20 million US dollars in the second quarter of 2026, representing a growth rate of 0.4%. The increase mainly came from higher expenditures on salaries and employee benefits, advertising, premises and equipment, as well as data processing costs; however, this was partially offset by reduced merger and acquisition-related expenses and other costs.

Compared to the third quarter of 2025, non-interest expenses in the third quarter of 2026 increased by $5.4 million, representing a growth of 36.6%. This increase was mainly due to increases in compensation and employee benefits, expenses for premises and equipment, data processing costs, security expenditures, loan expenses, amortization of core deposits, as well as merger and acquisition costs related to the First IC acquisition in the fourth quarter of 2025.

For the nine months ending September 30, 2026, non-interest expenses totaled $61.4 million, an increase of $18.9 million compared to $42.6 million in the same period of 2025, representing a growth of 44.3%. The increase was mainly due to higher salaries and employee benefits, partly due to increased commissions, employee insurance, and equity incentives; at the same time, expenses related to mergers and acquisitions, depreciation, premises, data processing, security, loans, and professional services were also higher.

The efficiency ratio for the third quarter of 2026 was 41.81%, which is higher than 40.08% in the second quarter of 2026 and 38.65% in the third quarter of 2025.

Income tax expense

The effective tax rate for the company in the third quarter of 2026 was 13.1%, which is lower than 27.7% in the second quarter of 2026 and 27.6% in the third quarter of 2025. The decrease in the effective tax rate this quarter was mainly driven by the use of tax credits during that period.

Balance Sheet

As of September 30, 2026, total assets amounted to $4.6 billion, an increase of $77.9 million from $4.52 billion as of June 30, 2026, representing a growth of 1.7%; compared to September 30, 2025, total assets increased by $968.4 million, reflecting a growth of 26.7%. The increase in total assets as of September 30, 2026, was mainly due to an increase of $50.3 million in cash and cash equivalents, as well as an increase of $36.4 million in other assets, the latter being primarily related to the increase in income tax receivable resulting from tax credits utilized during the quarter. The increase in liabilities and equity was mainly attributed to a rise of $72.7 million in deposits and a increase of $15.9 million in retained earnings. Compared to September 30, 2025, the increase in total assets was mainly due to the First IC acquisition completed in the fourth quarter of 2025, which led to an increase of $987 million in total loans, $67.7 million in goodwill and core deposit intangible assets, $6.9 million in securities, $5.6 million in operating lease rights assets, $3.5 million in service assets, and $8.3 million in property and equipment; this increase was partially offset by a decrease of $5.2 million from interest rate derivative instruments.

Invest in securities

As of September 30, 2026, the investment in securities accounted for only 0.89% of the total assets, which is lower than 0.99% as of June 30, 2026, and 0.94% as of September 30, 2025.

Loan

As of September 30, 2026, the total amount of loans awaiting investment was $3.98 billion, which is a decrease of $3.8 million from $3.98 billion as of June 30, 2026, representing a decline of 0.1%; however, it represents an increase of $1.0 billion compared to $2.97 billion as of September 30, 2025, showing a growth of 33.8%. Compared to June 30, 2026, the reduction in loans was mainly due to a decrease of $28.7 million in residential real estate loans and $3.3 million in business loans; this was partially offset by an increase of $16 million in commercial real estate loans and $12.3 million in construction and development loans. As of September 30, 2026, June 30, 2026, and September 30, 2025, the amounts of loans awaiting sale were 0, $1.4 million, and $231.3 million, respectively.

Deposits

As of September 30, 2026, deposits amounted to $3.56 billion, an increase of $72.7 million from $3.49 billion on June 30, 2026, representing a growth rate of 2.1%; compared to $2.69 billion on September 30, 2025, the increase was $869 million, or a growth rate of 32.3%. The increase in deposits from June 30, 2026, was mainly due to a rise in interest-free deposits by $45.3 million, time deposits by $6.6 million, money market accounts by $18.6 million, and interest-bearing demand deposits by $2.8 million; this was partially offset by a decrease of $566,000 in savings accounts.

As of September 30, 2026, interest-free deposits amounted to $828.3 million, an increase from $783.0 million on June 30, 2026, and $544.4 million on September 30, 2025. Interest-free deposits accounted for 23.3% of total deposits, up from 22.4% on June 30, 2026, and 20.2% on September 30, 2025. Interest-bearing deposits totaled $2730 million, an increase from $2710 million on June 30, 2026, and $2150 million on September 30, 2025. Interest-bearing deposits accounted for 76.7% of total deposits, down from 77.6% on June 30, 2026, and 79.8% on September 30, 2025.

As of September 30, 2026, uninsured deposits accounted for 34.7% of total deposits, which is higher than 33.1% as of June 30, 2026, and 26.1% as of September 30, 2025. As of September 30, 2026, the company had $1.66 billion in available borrowing capacity, including $964.7 million from the Federal Housing Loan Bank, $629.5 million from the Federal Reserve's discount window, and $67.5 million in federal base lines with other financial institutions.

Asset Quality

In the third quarter of 2026, the company confirmed a recovery of credit losses amounting to $72,000, compared to $792,000 in the second quarter of 2026 and $543,000 in the third quarter of 2025. The recovery in the third quarter was mainly due to a decrease in loan balances. The annualized net recovery as a percentage of the average loan balance was 0.00% in the third quarter; it was 0.01% in the second quarter of 2026; and 0.03% in the third quarter of 2025.

As of September 30, 2026, the total amount of non-performing assets amounted to 20.6 million US dollars, accounting for 0.45% of the total assets; this includes 16.1 million US dollars in non-performing loans and 4.5 million US dollars in other real estate holdings, of which 3.4 million US dollars were from branches that had ceased operations. This figure represents a decrease of 3.2 million US dollars compared to 23.8 million US dollars on June 30, 2026, which accounted for 0.53% of total assets, and an increase of 6.7 million US dollars compared to 14 million US dollars on September 30, 2025, which accounted for 0.38% of total assets. Compared to June 30, 2026, the reduction in non-performing assets was mainly due to a decrease of 6.4 million US dollars in non-performing loans, which was partially offset by an increase of 3.2 million US dollars in other real estate holdings.

As of September 30, 2026, loan loss provisions accounted for 0.65% of total loans, remaining unchanged from June 30, 2026, and higher than the 0.60% recorded on September 30, 2025. The proportion of loan loss provisions to non-performing loans was 159.78%, which is higher than the 114.63% at June 30, 2026, and the 137.66% at September 30, 2025.

Regarding MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc is a company based in Georgia and also serves as the registered bank holding company for its wholly-owned subsidiary, Metro City Bank. Its headquarters are located in the Atlanta metropolitan area of Georgia. Metro City Bank was established in 2006 and currently operates 27 full-service branches and 2 loan production offices in Alabama, California, Florida, Georgia, New Jersey, Texas, and Virginia. For more information, please visit www.metrocitybank.bank.

Forward-looking Statements

This press release contains forward-looking statements regarding future events, as well as the company's expectations and judgments regarding future financial performance and financial condition, as well as business and market trends. Such forward-looking statements are defined and protected by Section 27A of the Revised Securities Act of 1933 and Section 21E of the Revised Securities Exchange Act of 1934. Forward-looking statements are not historical facts and are typically identified by references to future periods or by the use of words such as "believes," "expects," "anticipates," "plans," "estimates," "predicts," "outlooks," or by using future tense or conditional verbs such as "will," "shall," "should," "may," etc. Investors should not rely excessively on the forward-looking statements in this press release, as these statements are based on current information and the company's assumptions about future events and circumstances. These assumptions involve various known and unknown risks and uncertainties that are often difficult to predict and are beyond the company's control. Due to these risks, uncertainties, and other factors, the company's actual future financial results may differ significantly from those expressed or implied in the forward-looking statements in this press release, which may result in the company having to adjust its future plans.Factors that may lead to differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, such as a decline in the real estate market, the effects of tariffs or trade wars (including reduced consumer spending, slowdown or recession in economic growth, decreased demand for U.S. exports, disruptions in supply chains, and reduced demand for other banking products and services); high unemployment rates; inflationary pressures; rising insurance costs; changes in interest rates (including changes in the federal funds rate), all of which can have an adverse effect on the company's profitability; the impact of changes in interest rates on the company's financial forecasts, models, and guidance; the slowdown in economic growth and the resulting financial pressure on borrowers; the uncertainty of the duration of trade conflicts; the potential impact of proposed tariffs on customer businesses; possible adverse effects of developments in the banking industry, including impacts on customer confidence, deposits, liquidity, and regulatory responses; risks associated with negative media coverage of the banking industry; risks stemming from insufficient awareness of the stability of the banking industry; changes in the prices, values, and sales volumes of residential and commercial real estate; the development of the company's mortgage business, including impacts from loan modifications, overall demand, and judicial or regulatory requirements or guidelines; market competition that may lead to increased financing costs or decreased yields on interest-bearing assets, thereby compressing profit margins and net interest income; legislative or regulatory changes that may be unfavorable for the merging companies to carry out business consolidations or new businesses; changes in tax laws; significant fluctuations or disruptions in capital or financial markets, as well as the impact of stock market declines on the company's investment securities; general competitive, economic, political, and market conditions; the ability to keep up with technological changes, including maintaining network security and the impact of generative artificial intelligence; intensified competition in the financial services industry, especially from regional and national institutions, as well as fintech companies and other non-bank financial service providers that offer digital, automated, or alternative financial products and services; the company's operating or security systems or infrastructure.Or the impact of failures or disruptions to third-party systems or infrastructure that conduct business with the company, including increased frequency or severity of cyberattacks or fraud, illegal payments, security vulnerabilities, or other illegal activities; the impact of wars or other conflicts, including the ongoing conflicts in the Middle East; significant domestic or international political changes (including the possibility of retaliatory actions by governments, market participants, or customers based on different positions or other reasons, as well as the recent shutdown of the U.S. federal government); and adverse outcomes of current or future litigation, regulatory inspections, or other legal and/or regulatory actions, including the company's participation in and execution of government projects, matters related to credit card interest rates, and legislative, regulatory, or supervisory actions related to so-called "debanking," including any new prohibitions, requirements, or enforcement priorities that may affect customer relationships, compliance obligations, or operational practices. Therefore, the company cannot guarantee that the results envisioned in the forward-looking statements will necessarily be achieved. For more information regarding these and other risks and uncertainties, please refer to the company's most recent 10-K annual reports and 10-Q quarterly reports submitted to the U.S. Securities and Exchange Commission ("SEC"), sections titled "Caution Regarding Forward-Looking Statements" and "Risk Factors," as well as other documents submitted from time to time to SEC. These documents can be viewed on the SEC website at http :// www.sec.gov. In addition, due to other risks and uncertainties that the company is not currently aware of or that are not considered important at this time but may become important in the future, the company's actual financial results in the future may also differ from current expectations. Due to these and other possible uncertainties and risks, readers should approach the forward-looking statements in this press release with caution and should not make predictions based solely on historical financial performance.Any forward-looking statements are only valid as of the date they are made. Except as required by law, the company assumes no obligation to update or revise any such forward-looking statements, whether due to new information, future developments, or other reasons. All forward-looking statements expressed or implied in this press release are subject to this cautionary statement.

Contact Information

Farid Tan

President and Interim Chief Financial Officer

770-455-4978

[ email protected ]

Explanation of several unaudited non-GAAP financial indicators

This press release contains financial information determined using methods other than the Generally Accepted Accounting Principles (GAAP) in the United States (“GAAP”). Indicators such as Adjusted Average Return on Equity, Tangible Book Value Per Share, and Operating Efficiency Ratio are not recognized by GAAP and therefore are considered non-GAAP financial indicators. The most comparable GAAP indicators are Average Return on Equity, Book Value Per Share, and Efficiency Ratio. The Adjusted Average Return on Equity excludes average accumulated other comprehensive income and merger and acquisition-related expenses. Tangible Book Value Per Share excludes goodwill and intangible assets of core deposits. The Operating Efficiency Ratio excludes merger and acquisition-related expenses from non-interest expenses. For relevant comparisons, please refer to the table below.

When analyzing the company's performance, management uses these non-GAAP financial indicators and believes that these presentation methods provide useful supplementary information, enabling the outside world to understand the company's performance more clearly; if not provided, investors would also request it. The company believes that these non-GAAP indicators help investors understand the company's business and performance, as well as assist in understanding performance trends and facilitate comparison with other financial institutions. The limitation of operational indicators is that different people may have disagreements regarding the appropriateness of the items included in these indicators, and different companies may adopt different calculation methods. These disclosures should not be regarded as a substitute for GAAP. The calculations for the adjusted average return on equity, tangible book value per share, and operating efficiency ratio, as well as the comparisons between these indicators and the average return on equity, book value per share, and efficiency ratio, are shown in the table below.