METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2025

, /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.3 million, or $0.63 per diluted share, for the first quarter of 2025, compared to $16.2 million, or $0.63 per diluted share, for the fourth quarter of 2024, and $14.6 million, or $0.57 per diluted share, for the first quarter of 2024. First Quarter 2025 Highlights: Annualized return on average assets was 1.85%, compared to 1.82% for the fourth quarter of 2024 and 1.65% for the first quarter of 2024. Annualized return on average equity was 15.67%, compared to 15.84% for the fourth quarter of 2024 and 15.41% for the first quarter of 2024. Excluding average accumulated other comprehensive income, our return on average equity was 16.18% for the first quarter of 2025, compared to 16.28% for the fourth quarter of 2024 and 16.27% for the first quarter of 2024. Efficiency ratio of 38.3%, compared to 40.5% for the fourth quarter of 2024 and 37.9% for the first quarter of 2024. Net interest margin was 3.67%, compared to 3.57% for the fourth quarter of 2024 and 3.24% for the first quarter of 2024. Commercial real estate loans increased by $30.1 million, or 4.0%, to $792.1 million from the previous quarter. Acquisition of First IC Corporation and First IC Bank On March 16, 2025, MetroCity and First IC Corporation ("First IC"), the parent company of First IC Bank, announced the signing of a definitive merger agreement for MetroCity to acquire First IC in a cash and stock transaction. Under the terms of the merger agreement, which was unanimously approved by the Boards of Directors of both companies, First IC shareholders will receive 3,384,588 shares of MetroCity common stock and $111,965,213 in cash, subject to certain adjustments. The merger is expected to close in the fourth quarter of 2025, subject to satisfaction of customer closing conditions, including the receipt of required regulatory approvals and approval by the shareholders of First IC. First IC had approximately $1.2 billion in total assets, $977 million in total deposits, and $1.0 billion in total loans as of March 31, 2025. The pro forma company is projected to have approximately $4.8 billion in total assets, $3.7 billion in total deposits and $4.1 billion in total loans. Together, the combined company is expected to have significant strategic positioning with the scale to compete and prioritize investments in technology and growth. Results of Operations Net Income Net income was $16.3 million for the first quarter of 2025, an increase of $62,000, or 0.4%, from $16.2 million for the fourth quarter of 2024. This increase was primarily due to a decrease in noninterest expense of $527,000, an increase in net interest income of $494,000, an increase in noninterest income of $135,000 and a decrease in provision for credit losses of $67,000, offset by an increase in income tax expense of $1.2 million Net income increased by $1.7 million, or 11.4%, in the first quarter of 2025 compared to net income of $14.6 million for the first quarter of 2024. This increase was due to an increase in net interest income of $3.5 million and a decrease in income tax expense of $22,000, offset by an increase in noninterest expense of $1.4 million, an increase in provision for credit losses of $275,000 and a decrease in noninterest income of $112,000. Net Interest Income and Net Interest Margin Interest income totaled $52.5 million for the first quarter of 2025, a decrease of $95,000, or 0.2%, from the previous quarter, primarily due to a $20.3 million decrease in the average total investments balance and a 90 basis points decrease in the total investments yield, offset by a 9 basis points increase in the loan yield and a $47.0 million increase in average loan balances. As compared to the first quarter of 2024, interest income for the first quarter of 2025 increased by $161,000, or 0.3%, primarily due to a 6 basis points increase in the loan yield coupled with a $2.6 million increase in average loan balances and a $15.0 million increase in average total investment balances, offset by a 71 basis points decrease in the total investments yield. Interest expense totaled $22.0 million for the first quarter of 2025, a decrease of $589,000, or 2.6%, from the previous quarter, primarily due to a 19 basis points decrease in time deposit costs coupled with a $18.4 million decrease in the average time deposits. As compared to the first quarter of 2024, interest expense for the first quarter of 2025 decreased by $3.3 million, or 13.1%, primarily due to a 61 basis points decrease in deposit costs coupled with a $67.0 million decrease in average deposit balances, offset by a 44 basis points increase in borrowing costs and a $46.2 million increase in the average borrowing balance. The Company currently has interest rate derivative agreements totaling $950.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 4.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the first quarter of 2025, we recorded a credit to interest expense of $4.3 million from the benefit received on these interest rate derivatives compared to a benefit of $5.1 million and $4.1 million recorded during the fourth quarter of 2024 and the first quarter of 2024, respectively. The net interest margin for the first quarter of 2025 was 3.67% compared to 3.57% for the previous quarter, an increase of ten basis points. The yield on average interest-earning assets for the first quarter of 2025 increased by six basis points to 6.31% from 6.25% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2025 decreased by seven basis points to 3.48% from 3.55% for the previous quarter. Average earning assets increased by $26.6 million from the previous quarter, due to an increase in average loan balances of $47.0 million, offset by a decrease of $20.3 million in average total investments. Average interest-bearing liabilities increased by $35.9 million from the previous quarter as average interest-bearing deposits increased by $20.9 million and average borrowings increased by $15.0 million. As compared to the same period in 2024, the net interest margin for the first quarter of 2025 increased by 43 basis points to 3.67% from 3.24%, primarily due to a four basis points increase in the yield on average interest-earning assets of $3.38 billion and a 46 basis points decrease in the cost of average interest-bearing liabilities of $2.56 billion. Average earning assets for the first quarter of 2025 increased by $17.6 million from the first quarter of 2024, due to a $15.0 million increase in average total investments and a $2.6 million increase in average loans. Average interest-bearing liabilities for the first quarter of 2025 decreased by $20.8 million from the first quarter of 2024, driven by the decrease in average interest-bearing deposits of $67.0 million, offset by a $46.2 increase in average borrowings. Noninterest Income Noninterest income for the first quarter of 2025 was $5.5 million, an increase of $135,000, or 2.5%, from the fourth quarter of 2024, primarily due to higher gains on sale from our residential mortgage loans and other income from unrealized gains recognized by our equity securities, offset by lower gains on sale and servicing income from our Small Business Administration ("SBA") loans, lower servicing income from our residential mortgage loans and lower mortgage loan fees from lower volume. SBA loan sales totaled $16.6 million (sales premium of 5.97%) during the first quarter of 2025 compared to $19.2 million (sales premium of 6.25%) during the fourth quarter of 2024. Mortgage loan originations totaled $91.1 million during the first quarter 2025 compared to $103.3 million during the fourth quarter of 2024. Mortgage loan sales totaled $40.1 million (average sales premium of 1.06%) during the first quarter of 2025. No mortgage loans were sold during the fourth quarter of 2024. During the first quarter of 2025, we recorded a $104,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment charge of $31,000 during the fourth quarter of 2024. We also recorded a $42,000 fair value impairment charge on our mortgage servicing asset during the first quarter of 2025 compared to a $232,000 fair value impairment recovery recorded during the fourth quarter of 2024. Compared to the first quarter of 2024, noninterest income for the first quarter of 2025 decreased by $112,000, or 2.0%, primarily due to lower gains on sale and servicing income from our SBA loans, offset by increases in gains on sale and servicing income from our residential mortgage loans, as well as higher other income from unrealized gains recognized on our equity securities and an increased bank owned life insurance income. During the first quarter of 2024, we recorded a $360,000 fair value gain on our SBA servicing asset. Noninterest Expense Noninterest expense for the first quarter of 2025 totaled $13.8 million, a decrease of $527,000, or 3.7%, from $14.3 million for the fourth quarter of 2024. This decrease was primarily attributable to the decrease in salaries and employee benefits which included lower 401k match, FICA taxes and stock-based compensation expenses, partially offset by higher legal fees and security expense. Included in other noninterest expenses during the first quarter of 2025 were $262,000 of merger-related due diligence expenses. Compared to the first quarter of 2024, noninterest expense during the first quarter of 2025 increased by $1.4 million, or 11.6%, primarily due to higher salary and employee benefits, occupancy expense, data processing expense, security expense and merger-related expenses, offset by lower FDIC insurance premiums and professional fees. The Company's efficiency ratio was 38.3% for the first quarter of 2025 compared to 40.5% and 37.9% for the fourth quarter of 2024 and first quarter of 2024, respectively. Income Tax Expense The Company's effective tax rate for the first quarter of 2025 was 26.2%, compared to 22.1% for the fourth quarter of 2024 and 28.4% for the first quarter of 2024. The effective tax rate was much lower during the fourth quarter of 2024 due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the fourth quarter of 2024. Balance Sheet Total Assets Total assets were $3.66 billion at March 31, 2025, an increase of $65.9 million, or 1.8%, from $3.59 billion at December 31, 2024, and an increase of $12.5 million, or 0.3%, from $3.65 billion at March 31, 2024. The $65.9 million increase in total assets at March 31, 2025 compared to December 31, 2024 was primarily due to increases in cash and due from banks of $36.0 million, loans held for sale of $35.7 million, other assets of $14.9 million and equity securities of $8.1 million, partially offset by decreases in loans held for investment of $26.6 million and interest rate derivatives of $4.6 million. The $12.5 million increase in total assets at March 31, 2025 compared to March 31, 2024 was primarily due to increases in cash and due from banks of $18.0 million, other assets of $17.3 million, loans held for investment of $15.5 million, federal funds sold of $8.2 million, equity securities of $8.2 million, Federal Home Loan Bank stock of $3.6 million and bank owned life insurance of $2.4 million, partially offset by decreases in loans held for sale of $36.9 million and interest rate derivatives of $21.5 million. Our investment securities portfolio made up only 0.93% of our total assets at March 31, 2025 compared to 0.77% and 0.78% at December 31, 2024 and March 31, 2024, respectively. Loans Loans held for investment were $3.13 billion at March 31, 2025, a decrease of $26.6 million, or 0.8%, compared to $3.16 billion at December 31, 2024, and an increase of $15.5 million, or 0.5%, compared to $3.12 billion at March 31, 2024. The decrease in loans at March 31, 2025 compared to December 31, 2024 was due to a $56.4 million decrease in residential mortgage loans and a $6.7 million decrease in commercial and industrial loans, offset by a $30.1 million increase in commercial real estate loans and a $6.8 million increase in construction and development loans. Loans classified as held for sale totaled $35.7 million and $72.6 million at March 31, 2025 and March 31, 2024, respectively. There were no loans classified as held for sale at December 31, 2024. Deposits Total deposits were $2.74 billion at March 31, 2025, an increase of $232,000 compared to total deposits of $2.74 billion at December 31, 2024, and a decrease of $76.8 million, or 2.7%, compared to total deposits of $2.81 billion at March 31, 2024. The increase in total deposits at March 31, 2025 compared to December 31, 2024 was due to a $44.5 million increase in money market accounts and a $3.7 million increase in noninterest-bearing demand deposits, offset by a $36.2 million decrease in time deposits, a $11.6 million decrease in interest-bearing demand deposits and a $238,000 decrease in savings accounts. Noninterest-bearing deposits were $540.0 million at March 31, 2025, compared to $536.3 million at December 31, 2024 and $546.8 million at March 31, 2024. Noninterest-bearing deposits constituted 19.7% of total deposits at March 31, 2025, compared to 19.6% at December 31, 2024 and 19.4% at March 31, 2024. Interest-bearing deposits were $2.20 billion at March 31, 2025, compared to $2.20 billion at December 31, 2024 and $2.27 billion at March 31, 2024. Interest-bearing deposits constituted 80.3% of total deposits at March 31, 2025, compared to 80.4% at December 31, 2024 and 80.6% at March 31, 2024. Uninsured deposits were 24.3% of total deposits at March 31, 2025, compared to 24.1% and 23.0% at December 31, 2024 and March 31, 2024, respectively. As of March 31, 2025, we had $1.26 billion of available borrowing capacity at the Federal Home Loan Bank ($648.6 million), Federal Reserve Discount Window ($561.0 million) and various other financial institutions (fed fund lines totaling $47.5 million). Asset Quality The Company recorded a provision for credit losses of $135,000 during the first quarter of 2025, compared to provision for credit losses of $202,000 during the fourth quarter of 2024 and a credit provision for credit losses of $140,000 during the first quarter of 2024. The provision expense recorded during the first quarter of 2025 was primarily due to the increase in general reserves allocated to our commercial real estate loans, partially offset by the decrease in reserves allocated to our residential real estate loan portfolio and individually analyzed loans. Annualized net charge-offs to average loans for the first quarter of 2025 was 0.02%, compared to net charge-offs of 0.01% for the fourth quarter of 2024 and 0.00% for the first quarter of 2024. Nonperforming assets totaled $18.5 million, or 0.51% of total assets, at March 31, 2025, an increase of $93,000 from $18.4 million, or 0.51% of total assets, at December 31, 2024, and an increase of $3.8 million from $14.7 million, or 0.40% of total assets, at March 31, 2024. The increase in nonperforming assets at March 31, 2025 compared to December 31, 2024 was due to a $1.3 million increase in other real estate owned offset by a $1.2 million decrease in nonaccrual loans. Allowance for credit losses as a percentage of total loans was 0.59% at March 31, 2025, compared to 0.59% at December 31, 2024 and 0.58% at March 31, 2024. Allowance for credit losses as a percentage of nonperforming loans was 110.52% at March 31, 2025, compared to 104.08% and 135.23% at December 31, 2024 and March 31, 2024, 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 20 full-service branch locations in multi-ethnic communities in Alabama, 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, elevated interest rates, including the 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 media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate, which could have an adverse effect on the Company's profitability; 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 proposed merger of First IC with the Company (the "Proposed Merger"), including (a) the risk that the cost savings and any revenue synergies from the Proposed Merger is less than or different from expectations, (b) disruption from the Proposed Merger with customer, supplier, or employee relationships, (c) the occurrence of any event, change, or other circumstances that could give rise to the termination of the Agreement and Plan of Merger by and between the Company and First IC, (d) the failure to obtain necessary regulatory approvals for the Proposed Merger, (e) the failure to obtain the approval of First IC's shareholders in connection with the Proposed Merger, (f) the possibility that the costs, fees, expenses and charges related to the Proposed Merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (g) the failure of the conditions to the Proposed Merger to be satisfied, (h) the risks related to the integration of the combined businesses, including the risk that the integration will be materially delayed or will be more costly or difficult than expected, (i) the diversion of management time on merger-related issues, (j) the ability of the Company to effectively manage the larger and more complex operations of the combined company following the Proposed Merger, (k) the risks associated with the Company's pursuit of future acquisitions, (l) the risk of expansion into new geographic or product markets, (m) reputational risk and the reaction of the parties' customers to the Proposed Merger, (n) the Company's ability to successfully execute its various business strategies, including its ability to execute on potential acquisition opportunities, (o) the risk of potential litigation or regulatory action related to the Proposed Merger, and (p) 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; 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 impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and the surrounding region; 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. 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. METROCITY BANKSHARES, INC. SELECTED FINANCIAL DATA As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share data) 2025 2024 2024 2024 2024 Selected income statement data: Interest income $ 52,519 $ 52,614 $ 53,833 $ 54,108 $ 52,358 Interest expense 21,965 22,554 23,544 23,396 25,273 Net interest income 30,554 30,060 30,289 30,712 27,085 Provision for credit losses 135 202 582 (128) (140) Noninterest income 5,456 5,321 6,615 5,559 5,568 Noninterest expense 13,799 14,326 13,660 13,032 12,361 Income tax expense 5,779 4,618 5,961 6,430 5,801 Net income 16,297 16,235 16,701 16,937 14,631 Per share data: Basic income per share $ 0.64 $ 0.64 $ 0.66 $ 0.67 $ 0.58 Diluted income per share $ 0.63 $ 0.63 $ 0.65 $ 0.66 $ 0.57 Dividends per share $ 0.23 $ 0.23 $ 0.20 $ 0.20 $ 0.20 Book value per share (at period end) $ 16.85 $ 16.59 $ 16.07 $ 16.08 $ 15.73 Shares of common stock outstanding 25,402,782 25,402,782 25,331,916 25,331,916 25,205,506 Weighted average diluted shares 25,707,989 25,659,483 25,674,858 25,568,333 25,548,089 Performance ratios: Return on average assets 1.85 % 1.82 % 1.86 % 1.89 % 1.65 % Return on average equity 15.67 15.84 16.26 17.10 15.41 Dividend payout ratio 36.14 36.18 30.58 30.03 34.77 Yield on total loans 6.40 6.31 6.43 6.46 6.34 Yield on average earning assets 6.31 6.25 6.36 6.45 6.27 Cost of average interest bearing liabilities 3.48 3.55 3.69 3.68 3.94 Cost of deposits 3.36 3.45 3.61 3.63 3.97 Net interest margin 3.67 3.57 3.58 3.66 3.24 Efficiency ratio(1) 38.32 40.49 37.01 35.93 37.86 Asset quality data (at period end): Net charge-offs/(recoveries) to average loans held for investment 0.02 % 0.01 % 0.00 % (0.01) % (0.00) % Nonperforming assets to gross loans held for investment and OREO 0.59 0.58 0.51 0.47 0.47 ACL to nonperforming loans 110.52 104.08 129.85 138.11 135.23 ACL to loans held for investment 0.59 0.59 0.60 0.58 0.58 Balance sheet and capital ratios: Gross loans held for investment to deposits 114.68 % 115.66 % 113.67 % 112.85 % 111.03 % Noninterest bearing deposits to deposits 19.73 19.60 20.29 20.54 19.43 Investment securities to assets 0.93 0.77 0.81 0.78 0.78 Common equity to assets 11.69 11.72 11.41 11.26 10.87 Leverage ratio 11.76 11.57 11.12 10.75 10.27 Common equity tier 1 ratio 19.23 19.17 19.08 18.25 16.96 Tier 1 risk-based capital ratio 19.23 19.17 19.08 18.25 16.96 Total risk-based capital ratio 20.09 20.05 19.98 19.12 17.81 Mortgage and SBA loan data: Mortgage loans serviced for others $ 537,590 $ 527,039 $ 556,442 $ 529,823 $ 443,905 Mortgage loan production 91,122 103,250 122,355 94,056 94,016 Mortgage loan sales 40,051 — 54,193 111,424 21,873 SBA/USDA loans serviced for others 474,143 479,669 487,359 486,051 516,425 SBA loan production 20,412 35,730 35,839 8,297 10,949 SBA loan sales 16,579 19,236 28,858 — 24,065 _____________________________________________ (1) 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 March 31, December 31, September 30, June 30, March 31, (Dollars in thousands) 2025 2024 2024 2024 2024 ASSETS Cash and due from banks $ 272,317 $ 236,338 $ 278,752 $ 325,026 $ 254,331 Federal funds sold 12,738 13,537 12,462 2,833 4,505 Cash and cash equivalents 285,055 249,875 291,214 327,859 258,836 Equity securities 18,440 10,300 10,568 10,276 10,288 Securities available for sale (at fair value) 15,426 17,391 18,206 17,825 18,057 Loans held for investment 3,131,325 3,157,935 3,087,826 3,090,498 3,115,871 Allowance for credit losses (18,592) (18,744) (18,589) (17,960) (17,982) Loans less allowance for credit losses 3,112,733 3,139,191 3,069,237 3,072,538 3,097,889 Loans held for sale 35,742 — 4,598 — 72,610 Accrued interest receivable 16,498 15,858 15,667 15,286 15,686 Federal Home Loan Bank stock 22,693 20,251 20,251 20,251 19,063 Premises and equipment, net 18,045 18,276 18,158 18,160 18,081 Operating lease right-of-use asset 7,906 7,850 7,171 7,599 8,030 Foreclosed real estate, net 1,707 427 1,515 1,452 1,452 SBA servicing asset, net 7,167 7,274 7,309 7,108 7,611 Mortgage servicing asset, net 1,476 1,409 1,296 1,454 937 Bank owned life insurance 73,900 73,285 72,670 72,061 71,492 Interest rate derivatives 17,166 21,790 18,895 36,196 38,682 Other assets 25,771 10,868 12,451 7,305 8,505 Total assets $ 3,659,725 $ 3,594,045 $ 3,569,206 $ 3,615,370 $ 3,647,219 LIABILITIES Noninterest-bearing deposits $ 539,975 $ 536,276 $ 552,472 $ 564,076 $ 546,760 Interest-bearing deposits 2,197,055 2,200,522 2,170,648 2,181,784 2,267,098 Total deposits 2,737,030 2,736,798 2,723,120 2,745,860 2,813,858 Federal Home Loan Bank advances 425,000 375,000 375,000 375,000 350,000 Operating lease liability 7,962 7,940 7,295 7,743 8,189 Accrued interest payable 3,487 3,498 3,593 3,482 3,059 Other liabilities 58,277 49,456 53,013 76,057 75,509 Total liabilities $ 3,231,756 $ 3,172,692 $ 3,162,021 $ 3,208,142 $ 3,250,615 SHAREHOLDERS' EQUITY Preferred stock — — — — — Common stock 254 254 253 253 252 Additional paid-in capital 49,645 49,216 47,481 46,644 46,105 Retained earnings 369,110 358,704 348,343 336,749 324,900 Accumulated other comprehensive income 8,960 13,179 11,108 23,582 25,347 Total shareholders' equity 427,969 421,353 407,185 407,228 396,604 Total liabilities and shareholders' equity $ 3,659,725 $ 3,594,045 $ 3,569,206 $ 3,615,370 $ 3,647,219 METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands) 2025 2024 2024 2024 2024 Interest and dividend income: Loans, including fees $ 50,253 $ 49,790 $ 50,336 $ 50,527 $ 50,117 Other investment income 2,126 2,663 3,417 3,547 2,211 Federal funds sold 140 161 80 34 30 Total interest income 52,519 52,614 53,833 54,108 52,358 Interest expense: Deposits 17,977 18,618 19,602 19,735 22,105 FHLB advances and other borrowings 3,988 3,936 3,942 3,661 3,168 Total interest expense 21,965 22,554 23,544 23,396 25,273 Net interest income 30,554 30,060 30,289 30,712 27,085 Provision for credit losses 135 202 582 (128) (140) Net interest income after provision for loan losses 30,419 29,858 29,707 30,840 27,225 Noninterest income: Service charges on deposit accounts 500 563 531 532 447 Other service charges, commissions and fees 1,596 1,748 1,915 1,573 1,612 Gain on sale of residential mortgage loans 399 — 526 1,177 222 Mortgage servicing income, net 618 690 422 1,107 229 Gain on sale of SBA loans 658 811 1,083 — 1,051 SBA servicing income, net 913 956 1,231 560 1,496 Other income 772 553 907 610 511 Total noninterest income 5,456 5,321 6,615 5,559 5,568 Noninterest expense: Salaries and employee benefits 8,493 9,277 8,512 8,048 7,370 Occupancy and equipment 1,417 1,406 1,430 1,334 1,354 Data Processing 345 335 311 353 294 Advertising 167 160 145 157 172 Other expenses 3,377 3,148 3,262 3,140 3,171 Total noninterest expense 13,799 14,326 13,660 13,032 12,361 Income before provision for income taxes 22,076 20,853 22,662 23,367 20,432 Provision for income taxes 5,779 4,618 5,961 6,430 5,801 Net income available to common shareholders $ 16,297 $ 16,235 $ 16,701 $ 16,937 $ 14,631 METROCITY BANKSHARES, INC. QTD AVERAGE BALANCES AND YIELDS/RATES Three Months Ended March 31, 2025 December 31, 2024 March 31, 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) $ 159,478 $ 2,098 5.34 % $ 180,628 $ 2,560 5.64 % $ 144,934 $ 2,052 5.69 % Investment securities 32,034 168 2.13 31,208 264 3.37 31,611 189 2.40 Total investments 191,512 2,266 4.40 211,836 2,824 5.30 176,545 2,241 5.11 Construction and development 23,321 480 8.35 17,974 384 8.50 21,970 505 9.24 Commercial real estate 779,884 16,157 8.40 757,937 16,481 8.65 716,051 16,108 9.05 Commercial and industrial 72,799 1,588 8.85 73,468 1,703 9.22 64,575 1,574 9.80 Residential real estate 2,308,071 31,986 5.62 2,287,731 31,172 5.42 2,378,879 31,890 5.39 Consumer and other 276 42 61.71 282 50 70.54 249 40 64.61 Gross loans(2) 3,184,351 50,253 6.40 3,137,392 49,790 6.31 3,181,724 50,117 6.34 Total earning assets 3,375,863 52,519 6.31 3,349,228 52,614 6.25 3,358,269 52,358 6.27 Noninterest-earning assets 197,272 192,088 213,802 Total assets 3,573,135 3,541,316 3,572,071 Interest-bearing liabilities: NOW and savings deposits 153,739 952 2.51 133,728 685 2.04 158,625 885 2.24 Money market deposits 1,010,471 6,321 2.54 991,207 6,347 2.55 1,077,469 9,692 3.62 Time deposits 1,006,677 10,704 4.31 1,025,049 11,586 4.50 1,001,792 11,528 4.63 Total interest-bearing deposits 2,170,887 17,977 3.36 2,149,984 18,618 3.45 2,237,886 22,105 3.97 Borrowings 390,000 3,988 4.15 375,000 3,936 4.18 343,847 3,168 3.71 Total interest-bearing liabilities 2,560,887 21,965 3.48 2,524,984 22,554 3.55 2,581,733 25,273 3.94 Noninterest-bearing liabilities: Noninterest-bearing deposits 519,125 533,931 522,300 Other noninterest-bearing liabilities 71,444 74,696 86,190 Total noninterest-bearing liabilities 590,569 608,627 608,490 Shareholders' equity 421,679 407,705 381,848 Total liabilities and shareholders' equity $ 3,573,135 $ 3,541,316 $ 3,572,071 Net interest income $ 30,554 $ 30,060 $ 27,085 Net interest spread 2.83 2.70 2.33 Net interest margin 3.67 3.57 3.24 _____________________________________________ (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 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 % of % of % of % of % of (Dollars in thousands) Amount Total Amount Total Amount Total Amount Total Amount Total Construction and development $ 28,403 0.9 % $ 21,569 0.7 % $ 16,539 0.5 % $ 13,564 0.4 % $ 27,762 0.9 % Commercial real estate 792,149 25.2 762,033 24.1 738,929 23.9 733,845 23.7 724,263 23.2 Commercial and industrial 71,518 2.3 78,220 2.5 63,606 2.1 68,300 2.2 68,560 2.2 Residential real estate 2,246,818 71.6 2,303,234 72.7 2,276,210 73.5 2,282,630 73.7 2,303,400 73.7 Consumer and other 67 — 260 — 215 — 230 — 247 — Gross loans held for investment $ 3,138,955 100.0 % $ 3,165,316 100.0 % $ 3,095,499 100.0 % $ 3,098,569 100.0 % $ 3,124,232 100.0 % Unearned income (7,630) (7,381) (7,673) (8,071) (8,361) Allowance for credit losses (18,592) (18,744) (18,589) (17,960) (17,982) Net loans held for investment $ 3,112,733 $ 3,139,191 $ 3,069,237 $ 3,072,538 $ 3,097,889 METROCITY BANKSHARES, INC. NONPERFORMING ASSETS As of the Quarter Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands) 2025 2024 2024 2024 2024 Nonaccrual loans $ 16,823 $ 18,010 $ 14,316 $ 13,004 $ 13,297 Past due loans 90 days or more and still accruing — — — — — Total non-performing loans 16,823 18,010 14,316 13,004 13,297 Other real estate owned 1,707 427 1,515 1,452 1,452 Total non-performing assets $ 18,530 $ 18,437 $ 15,831 $ 14,456 $ 14,749 Nonperforming loans to gross loans held for investment 0.54 % 0.57 % 0.46 % 0.42 % 0.43 % Nonperforming assets to total assets 0.51 0.51 0.44 0.40 0.40 Allowance for credit losses to non-performing loans 110.52 104.08 129.85 138.11 135.23 METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands) 2025 2024 2024 2024 2024 Balance, beginning of period $ 18,744 $ 18,589 $ 17,960 $ 17,982 $ 18,112 Net charge-offs/(recoveries): Construction and development — — — — — Commercial real estate (1) — — (82) (1) Commercial and industrial 170 99 24 (1) (3) Residential real estate — — — — — Consumer and other — — — — — Total net charge-offs/(recoveries) 169 99 24 (83) (4) Adoption of ASU 2016-13 (CECL) — — — — — Provision for loan losses 17 254 653 (105) (134) Balance, end of period $ 18,592 $ 18,744 $ 18,589 $ 17,960 $ 17,982 Total loans at end of period(1) $ 3,138,955 $ 3,165,316 $ 3,095,499 $ 3,098,569 $ 3,124,232 Average loans(1) $ 3,166,480 $ 3,135,093 $ 3,115,441 $ 3,108,303 $ 3,134,286 Net charge-offs/(recoveries) to average loans 0.02 % 0.01 % 0.00 % (0.01) % (0.00) % Allowance for loan losses to total loans 0.59 0.59 0.60 0.58 0.58 _____________________________________________ (1) Excludes loans held for sale. SOURCE MetroCity Bankshares, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2025

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News