MetroCity Bankshares Hits Record Profit, Defies Sector Trends

ATLANTA, GA – April 24, 2026 – MetroCity Bankshares, Inc. (NASDAQ: MCBS) delivered a powerful start to 2026, reporting record first-quarter net income of $22.3 million, or $0.77 per diluted share. The results represent a striking 36.9% increase from the same period last year and a 21.9% jump from the fourth quarter of 2025, signaling strong momentum and positioning the bank as a standout performer in the regional banking landscape.

Mastering the Margin in a Challenging Rate Environment

The cornerstone of MetroCity's exceptional quarter was a significant expansion of its net interest margin (NIM), which climbed to an impressive 4.08%. This marks a 35 basis point increase from the previous quarter and a 41 basis point rise year-over-year, a feat achieved while many competitors see their margins flatten or compress. The bank's ability to widen the gap between what it earns on assets and what it pays on liabilities was driven by a masterful two-pronged strategy.

On one hand, interest income surged 17.8% sequentially to $71.0 million, propelled by a 32 basis point increase in loan yields and substantial growth in average loan balances, which swelled by $856.2 million from the prior year. On the other hand, the bank demonstrated disciplined cost control. Despite a large influx of deposits over the past year, the cost of its interest-bearing deposits actually decreased by 10 basis points from the prior quarter and 24 basis points from a year ago. This performance is particularly noteworthy in a “higher for longer” interest rate environment, where deposit competition typically pressures bank profitability. MetroCity's proactive use of $625.0 million in interest rate derivatives also contributed, providing a $2.3 million credit to interest expense during the quarter.

Strategic Growth Fueled by Acquisition and Organic Strength

The bank's balance sheet reflects a story of strategic expansion. Total assets grew by a remarkable $1.03 billion, or 28.1%, over the past year to reach $4.7 billion. This growth was largely fueled by the successful acquisition of First IC Corporation, which closed in late 2025. The first full quarter of combined operations saw the benefits of this merger materialize, contributing significantly to the $868.6 million year-over-year increase in loans held for investment and an $889.6 million rise in total deposits.

While total loans and deposits saw a minor sequential dip of 1.2% and 0.5% respectively, this appears to be a sign of disciplined integration and portfolio management rather than a slowdown in momentum. A key indicator of the bank's strengthening funding profile is the growth in noninterest-bearing deposits, which now constitute 22.0% of total deposits, up from 19.7% a year prior. This favorable shift toward lower-cost funding sources is a critical component of the bank's ability to sustain its impressive net interest margin.

A Sterling Report on Asset Quality

Beyond profitability, MetroCity delivered a robust improvement in its asset quality, showcasing disciplined risk management. Nonperforming assets (NPAs) plummeted to just $17.2 million, or 0.37% of total assets. This is a dramatic decrease from $26.1 million (0.55% of assets) at the end of 2025. The improvement is even more significant considering the previous quarter's total included $7.5 million in NPAs acquired through the First IC merger, indicating a swift and effective resolution of problem assets from the combined entity.

The bank's loan portfolio health is further underscored by a negligible annualized net charge-off rate of just 0.03% and a recovery for credit losses of $813,000 for the quarter, signaling very few loans are going bad. With an allowance for credit losses covering 166.15% of its nonperforming loans—up from 107.48% in the prior quarter—MetroCity appears well-fortified against potential credit headwinds.

MetroCity's overall performance stands in sharp contrast to the broader regional banking sector, which has been grappling with moderating growth and margin pressures. The bank's annualized return on average assets (ROAA) of 1.96% and return on average equity (ROAE) of 18.28% are well above industry averages, while its efficiency ratio improved to a lean 42.16%. This combination of high profitability and operational efficiency highlights the success of its strategy, which blends a multi-state footprint in diverse communities with sophisticated financial oversight. As the bank continues to digest its recent acquisition and leverage its strong financial position, its first-quarter results provide a compelling blueprint for navigating the complexities of the current economic climate.