MetroCity Bankshares, Inc. (MCBS) SEC Filings & Earnings Calls

Efficiency ratio increased YoY, indicating cost growth outpacing revenue; potential margin pressure if loan growth slows.

“Efficiency ratio increased to 41.81% from 38.65% YoY; noninterest expenses increased $5.4M.”

Interest expense rising YoY due to higher deposit balances; deposit cost may increase if rates remain elevated.

“Interest expense increased $4.0M YoY; average interest-bearing deposits increased $562.8M.”

Loss of experienced board member and committee leadership could affect governance oversight.

“Resignation from Credit Risk Management Committee, Executive Committee, Nominating and Governance Committee, Information Technology Committee and Loan Committee.”

Concentration in commercial real estate

“Commercial real estate loans $1,463,460 out of total loans $3,983,539 at June 30, 2026.”

Deposit outflow pressure

“Total deposits decreased from $3,646,001 at Dec 31, 2025 to $3,489,357 at June 30, 2026.”

Deposit cost sensitivity: Interest-bearing deposit costs increased 11bps QoQ, indicating potential margin pressure if rates remain elevated.

“offset by an 11-basis-point increase in interest-bearing deposit costs” · word for word

Interest rate derivative hedges may limit upside if rates decline further.

“The weighted average pay rate for these interest rate derivatives is 2.78%.” · word for word

Noninterest expenses increased $7.6M YoY; efficiency ratio worsened.

“Noninterest expenses increased by $7.6 million.”

Key person risk: CEO Nack Y. Paek is 84 years old

“Nack Y. Paek, age 84, serves as Chairman and CEO.”

Related party transactions: lease with entity controlled by CEO

“In 2025, the Bank leased its Norcross office from 5385 JC, LLC, where Mr. Nack Y. Paek, the Chairman of the Company, serves as a managing member. In 2025, the Bank paid approximately $166,000 in lease payments.”

CFO turnover

“Lucas Stewart resigned from the Company effective April 3, 2026.”

Key financial leadership transition may create temporary operational uncertainty.

“CFO resignation effective April 3, 2026; interim CFO is President with prior CFO experience but no permanent replacement named.”

Acquisition integration risk

“Merger-related expenses for the year ended December 31, 2025 were $4.7 million compared to $0 during the year ended December 31, 2024 as no business combinations occurred during 2024.” · word for word

Concentrated ownership risk

“As of December 31, 2025, our directors and their families and affiliated entities collectively had a 24.6% ownership interest in the Company.” · word for word

Integration risk from First IC acquisition; efficiency ratio increased to 46.7% from 38.7% QoQ.

“Efficiency ratio of 46.7%, compared to 38.7% for the third quarter of 2025 and 40.5% for the fourth quarter of 2024.” · word for word

Integration risk from merger with FIEB.

“Merger integration may pose operational and cultural challenges.”

Integration risk and potential dilution from share issuance

“dilution caused by MCBS's issuance of additional shares of its capital stock in connection with the proposed transaction” · word for word

Residential real estate loan concentration

“Residential real estate loans represent 69.2% of total loans at Sep 2025, down from 72.8% at Dec 2024, but still a significant concentration.”

Interest rate risk from hedging

“The company has $800M in interest rate swaps and caps, with a net unrealized loss of $9.7M in OCI, indicating sensitivity to rate changes.”