MetroCity Bankshares, Inc. (NASDAQ: MCBS)

MetroCity Bankshares, Inc. operates as a bank holding company focused on serving small to medium-sized businesses and individuals in diverse, multi-ethnic communities across growing metropolitan markets. Headquartered in the Atlanta metropolitan area, the company conducts its primary operations through its wholly-owned subsidiary, Metro City Bank, a Georgia state-chartered commercial bank with 29 full-service branches spanning Alabama, California, Florida, Georgia, New York, New Jersey, Texas, and Virginia. As of December 31, 2025, MetroCity Bankshares, Inc. managed $4.77 billion in total assets, $4.08 billion in loans held for investment, and $3.65 billion in deposits, positioning itself as a key financial institution in its target markets.

The company generates revenue primarily through interest income from its diversified loan portfolio and fees associated with deposit and treasury management services. Core lending products include commercial real estate loans, residential mortgage loans, construction and development loans, commercial and industrial loans, and Small Business Administration (SBA) loans. Deposit products, such as checking, savings, money market accounts, and certificates of deposit, provide a stable funding base while also contributing to non-interest income through service fees. Additionally, the company earns servicing income from managing loans sold to third-party investors, further enhancing its revenue streams.

The company operates through the following segments:

• Commercial Banking: This segment focuses on providing tailored lending and deposit solutions to small and medium-sized businesses. It includes commercial real estate loans, both owner-occupied and non-owner occupied, as well as commercial and industrial loans for working capital, equipment purchases, and business expansions. The segment also encompasses SBA loans, which are partially guaranteed by the U. S. government, reducing risk exposure. As of December 31, 2025, commercial real estate loans accounted for 38.3% of the total loan portfolio, while commercial and industrial loans represented 2.4%.

• Residential Mortgage Banking: This segment specializes in originating non-conforming residential mortgage loans, primarily through hybrid adjustable-rate mortgages and fixed-rate products. The company retains servicing rights on loans sold to investors, generating recurring servicing income. Residential real estate loans comprised 58.3% of the total loan portfolio as of December 31, 2025, making it the largest segment by loan volume. The company also services residential mortgage loans for third parties, further diversifying its income sources.

• Consumer and Other Loans: This segment includes a smaller portfolio of consumer loans, such as overdrafts and personal lines of credit. These loans represent a minimal portion of the overall portfolio and are subject to higher credit risk due to their reliance on individual borrowers' financial stability.

MetroCity Bankshares, Inc. competes in a highly fragmented banking industry, facing competition from traditional banks, credit unions, fintech companies, and non-bank financial institutions. Its competitive advantages lie in its culturally competent approach to banking, which resonates with diverse communities, and its disciplined expansion strategy. The company’s focus on de novo branch openings in vibrant, multi-ethnic markets has allowed it to establish a strong presence in underserved areas while maintaining cost efficiency. The recent acquisition of First IC Corporation further strengthened its market position by expanding its loan and deposit base, enhancing product offerings, and improving operational synergies. Despite competition from larger, well-capitalized institutions, MetroCity Bankshares, Inc. differentiates itself through personalized service, quick credit decision-making, and a hybrid distribution model combining traditional branches with digital banking solutions.

The company serves a diverse customer base, primarily consisting of small to medium-sized businesses and individuals in multi-ethnic communities. Key industries within its commercial lending portfolio include hospitality, retail, healthcare, and wholesale distribution. While specific customer names are not disclosed, the company’s clientele includes business owners, professionals, and families who value culturally tailored banking services. Depositors often maintain large balances, with the top fifteen depositor relationships accounting for 13% of total deposits as of December 31, 2025. The company’s ability to attract and retain core deposits, which made up 75.2% of total deposits, underscores its strong customer relationships and localized market focus.