FWP 1 tv529921_fwp.htm FREE WRITING PROSPECTUS

 

 

Initial Public Offering NASDAQ: MCBS September 2019 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333 - 233625 Dated September 24, 2019

 
 

2 Disclaimer MetroCity Bankshares , Inc. (“ MetroCity ”, the “Company” or “we”) has filed a registration statement (including a prospectus, which is preliminary and subject to com ple tion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relates. Before you invest in any securities, you should r ead the prospectus in that registration statement and other documents MetroCity has filed or will file with the SEC for more complete information about MetroCity and the proposed offering. When available, you may obtain these documents for free by visiting EDGAR on the SEC website at ww w.s ec.gov. Alternatively, MetroCity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by cont act ing Keefe, Bruyette & Woods, Inc., 787 Seventh Avenue, 4th Floor, New York, New York, 10019, Attn: Equity Capital Markets, by emailing kbwsyndicatedesk@kbw.com or by telephone at 1 - 800 - 966 - 1559, or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, Attn: Equity Syndicate, by emailing prospectus@raymondjames.com or by telephone at 1 - 800 - 248 - 8863. This presentation does not constitute or form a part of the registration statement for the proposed offering to which this presentation relates and does not constitute an offer to sell securities, and MetroCity is not soliciting an offer to buy securities in any jurisdiction where such offer or sale is not permitted. Neither the SEC nor any state securities commission has approved or disapproved of the securities of MetroCity or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. MetroCity’s common stock is not a deposit or savings account of MetroCity’s bank subsidiary and is not insured by the Federal Deposit Insurance Corporation or any other governmental agency or instrumen tal ity. This presentation has been prepared by MetroCity solely for informational purposes to assist interested parties in making their own evaluation of MetroCity. It does not purport to contain all of the information that may be relevant. In all cases, interested parties should conduct their own investigation and analysis of MetroCity and the data set forth in this presentation and other information provided by or on behalf of MetroCity. This presentation and oral statements made regarding the subject of this presentation contain forward - looking statements. These forward - looking statements reflect MetroCity’s current views with respect to, among other things, future events and MetroCity’s financial performance. Any statements about MetroCity’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward - looking. These statements are often, but not always, made through the use of words or phrase s such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or a ll of the forward - looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward - looking information in this presentation should not be regar ded as a representation by MetroCity or any other person that the future plans, estimates or expectations contemplated by MetroCity will be achieved. MetroCity has based these forward - looking statements largely on its current expectations and projections about future events and financial trends that MetroCity believes may affect its financial condition, results of operations, business strategy and financial needs. MetroCity’s actual results could differ materially from those anticipated in such forward - looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related t o t hese or other risks or uncertainties materialize, or if MetroCity’s underlying assumptions prove to be incorrect, actual results may differ materially from what MetroCity anticipates. You are cautioned not to place undue reliance on forward - looking statements. Further, any forward - looking statement speaks only as of the date on which it is made and MetroCity undertakes no obligation to update or revise any forward - looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law. Within this presentation, we reference certain market, industry and demographic data and other statistical information. We ha ve obtained this data and information from various independent, third party industry sources and publications. Nothing in the data or information used or derived from third party sources should be construed as adv ice. Some data and other information are also based on our good faith estimates, which are derived from our review of internal surveys and independent sources. We believe that these external sources and management estimates are reliable, but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change . This presentation includes certain non - GAAP financial measures, including tangible common equity to tangible assets, adjusted allowance for loan losses to gross loans and adjusted net charge - offs to ave rage loans. These non - GAAP financial measures and any other non - GAAP financial measures that we discuss in this presentation should not be c onsidered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations rel ate d to the use of these non - GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non - GAAP financial measures differently or may use other measures to eva luate their financial condition, credit quality and performance , all of which could reduce the usefulness of MetroCity’s non - GAAP financial measures as tools for comparison. See the Appendix to this presentation for a reconciliation of the non - GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures.

 
 

3 Offering Summary Issuer Ticker / Exchange Base Offering Size Filing Range Base Shares Offered Overallotment Pro Forma Market Capitalization Lock - Ups Use of Proceeds Joint Bookrunning Managers Co - Manager Expected Pricing Date MetroCity Bankshares , Inc. MCBS / Nasdaq Global Select $30.1 million total, comprised of $15.5 million primary and $14.6 million secondary (based on the midpoint of the range and excluding the overallotment option) $14.50 - $16.50 per share 1,939,000 total, comprised of 1,000,000 primary and 939,000 secondary shares 15%, or 290,850 shares (all primary) $392 million (based on the midpoint of the range and excluding the overallotment option) 180 days for the company, executive officers and directors and other selling shareholders To support organic growth, including through branch expansion or opportunistic strategic acquisitions and for general corporate purposes, including contributing proceeds to the bank Keefe Bruyette & Woods, A Stifel Company | Raymond James Hovde Group, LLC Week of September 30 th

 
 

4 Company Overview Headquarters • Atlanta Metro Area (Doraville, Georgia) 2019 Q2 Size and Scale • $1.5 billion in total assets • $1.3 billion in gross loans (including HFS) • $1.3 billion in total deposits Focus • Non - conforming mortgage lending, SBA lending and conservative CRE lending • Predominantly Asian - American communities in growing metropolitan markets in the Eastern U.S. and Texas Company • Metro City Bank was founded in 2006 • The holding company, MetroCity Bankshares, Inc., was founded in 2014 Note: Financial data is as of or for the six months ended June 30, 2019 (1) Represents annualized June 30, 2019 data (2) Represents non - interest expense divided by the sum of net interest income plus non - interest income 2019 YTD Performance • 2.94% Return on Average Assets (1) • 25.5% Return on Average Equity (1) • 4.30% Net Interest Margin • 40.3% Efficiency Ratio (2) • 19 Full - Service Branch Locations Doraville, GA Headquarters and 8 Branches in the Atlanta Metro Area

 
 

5 History of Metro City Bank 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Opened April 2006 • $14.9mm in equity 2006 • Opened a branch in Suwanee, GA 2008 • Achieved 2% ROAA • Acquired Global Commerce (FDIC - Assisted) • Acquired Opelika branch from S ynovus to enter Alabama 2012 • Entered the Washington D.C. area by opening a branch in Centreville, VA • Formed the holding company 2014 • Surpassed $1B in assets • Entered the NYC area by opening branches in Fort Lee, NJ and Bayside, NY • Entered Texas by acquiring two branches in the Dallas - Fort Worth MSA • Net income exceeded $20mm 2016 • Entered Cobb County with a branch in Marietta, GA Early 2018 • Surpassed $200mm in assets • Raised $15.9mm in additional equity • Opened branches in Duluth, GA and Johns Creek, GA 2007 • Surpassed $300mm in assets • Net income exceeded $2mm 2009 • Opened the Sugarloaf branch in Suwanee, GA 2011 • Surpassed $500mm in assets • Net income exceeded $10mm 2013 • Opened a branch in Montgomery, AL 2015 • 5 straight years with an ROAA above 2% • Peachtree Corners office was opened in Norcross, GA 2017 • Three branches opened in Annandale, VA, Houston, TX, and Flushing, NY Mid - to - Late 2018 2019 • Opened a branch in Tampa, FL 2019

 
 

6 Senior Management Team Name Holding Company Title Years in Industry Year Joined MetroCity Prior Experience Nack Y. Paek Chairman and Chief Executive Officer 38 2006 • Founder of MetroCity Bankshares, Inc. and Metro City Bank • Served as President of Government Loan Service Corp. which specialized in originating and servicing SBA loans • Founding director for Summit Bank Corporation where he served in various capacities, including C hairman of the Audit committee and Chairman of the Board of Directors Farid Tan President and Chief Financial Officer 38 2006 • Began community banking career in Georgia in 1999 as Senior Vice President and Chief Lending Officer of Global Commerce Bank; named President and CEO in 2002 • Started banking career in 1981 for Bank Bumiputra Malaysia where he became the Assistant General Manager of their New York office Howard H. Kim EVP, Chief Operations Officer and Chief Lending Officer 37 2006 • Served as Vice President, Commercial and SBA Lender for two local community banks in Doraville, Georgia prior to joining Metro City Bank in 2006 • Worked for Korea Development Securities Co. Ltd as an assistant branch manager, a manager of their accounting division and representative of their Amsterdam office from 1991 to 1997 • Worked for Korea Development Bank as an officer for lending, deposit, foreign exchange dealing and accounting from 1980 to 1991 S. Benton Gunter EVP and Chief Administrative Officer 50 2010 • More than 50 years experience in financial services, including time spent with large regional and community banks • Experience in all areas of bank operations, including administration, branch operations, deposit operations, financial reporting, compliance, human resources and audit • Most recently served as Vice President and Chief Operations Officer of Atlanta Business Bank, which opened for business in early 2002 Lucas Stewart SVP and Senior Accounting Manager 15 2019 • Most recently served as Vice President of Financial Reporting and SOX Compliance for Fidelity Bank in Atlanta, GA • Director of an Atlanta CPA firm and oversaw the audits of various financial institutions over the span of 9 years Our senior management team is supported by eight highly qualified and experienced individuals who oversee various aspects of our business

 
 

7 Key Investment Highlights • Double - digit percentage asset growth in each of the last three years, driven by investments in personnel and branch infrastructure • Since 2015, we have added eleven full - service branches in carefully selected locations and added 112 employees • Investments yielded growth in assets, loans, deposits and shareholders’ equity well in excess of our peer groups Balance Sheet Growth • Balance sheet growth has driven outsized revenue growth and profitability • Experienced positive operating leverage through cost - efficient branch expansion • High profitability has enabled capital generation to support growth while maintaining the payment of quarterly dividends up to 25% of net income over the past seven years Earnings Growth and Profitability • Growth and profitability have been achieved without sacrificing credit quality • Only 5 foreclosures out of 7,520 residential mortgage loans originated between January 1, 2015 and June 30, 2019, none of which resulted in a loss Credit Quality • Successful growth of customer base since our founding primarily through de novo branch openings in vibrant, multi - ethnic markets • S uite of product offerings tailored to meet the needs of the businesses and individuals already established in our communities Niche Focus

 
 

8 Beneficial Ownership of Directors and Executive Officers Name Age Year Joined Principal Occupation Nationality Title and Position with the Company Shares of Common Stock Beneficially Owned Nack Y. Paek 77 2006 Chairman and CEO of MetroCity Bankshares, Inc. Korean Chairman and CEO 5.29% Farid Tan 62 2006 President and CFO of MetroCity Bankshares, Inc. Malaysian President, CFO & Director 3.14% Howard H. Kim 62 2006 EVP, COO and CLO of MetroCity Bankshares , Inc. Korean EVP, COO, CLO & Director 2.39% S. Benton Gunter 78 2010 EVP and CAO of MetroCity Bankshares , Inc. American EVP & CAO * Beneficial Ownership of Executive Management : 10.83% Feiying Lu 55 2006 Internal Controller with Imaex Trading Company Chinese Director 7.53% Don Leung 61 2006 Managing Member of Light Efficient Depot, LLC Chinese Director 5.25% Ajit Patel 54 2006 Managing Member of Amrit & Sons I, LLC and Relax Hospitality, LLC Indian Director 4.20% William M. Hungeling 70 2006 Founder and Owner of Hungeling CPA American Director 3.45% Young Park 71 2006 Owner and President of Kani House Restaurants Korean Director 3.37% Sam Sang - Koo Shim 76 2006 President of SKS Consulting, Inc. Korean Director 2.82% Francis Lai 65 2010 Managing Member of Goldfield Capital, LLC Malaysian Director * Frank S. Rhee 54 2006 Co - Owner, Eee Holdings Llc Korean Director * Beneficial Ownership of Directors and Executive Officers : 37.97% * Ownership is as of June 30, 2019 * Less than 1%

 
 

9 $562.9 $870.9 $1,020.0 $1,244.2 $1,296.2 2015 2016 2017 2018 6/30/2019 Financial Snapshot Total Deposits Net Income $16.6 $20.2 $31.9 $41.3 $21.7 2015 2016 2017 2018 6/30/2019 Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respective year or the six months ended June 30, 2019 (1) Represents non - interest expense divided by the sum of net interest income plus non - interest income (2) Tangible common equity to tangible assets is a non - GAAP measure. Since there is no goodwill or other intangible assets as of the date indicated, tangib le equity to tangible assets is the same as total shareholders’ equity to total assets as of the date indicated. See Appendix for reconciliation to the most comparable GAAP financial measure (3) Adjusted asset quality metrics are non - GAAP measures that exclude purchased auto loan pools, which we ceased purchasing in 2016. See Appendix for reconciliation to the most comparable GAAP financial measures Gross Loans (Inc. HFS) $570.8 $966.2 $1,100.4 $1,202.6 $1,260.6 2015 2016 2017 2018 6/30/2019 As of or for the Six Months Ended, June 30, 2019 Balance Sheet Total Assets $1,524.5 Gross Loans (Including Held for Sale) $1,260.6 Total Deposits $1,296.2 Total Shareholders' Equity $184.3 Earnings and Profitability Net Income $21.7 Return on Average Assets 2.94% Return on Average Shareholders' Equity 25.5% Net Interest Margin 4.30% Efficiency Ratio (1) 40.3% Balance Sheet and Capital Ratios (Consolidated) Gross Loans Held for Investment to Deposits 91.9% Tangible Common Equity to Tangible Assets (2) 12.09% Tier 1 Leverage Ratio 11.67% Tier 1 Risk-Based Capital Ratio 17.99% Total Risk-Based Capital Ratio 18.66% Asset Quality Nonperforming Assets to Total Assets 1.10% Adjusted Allowance for Loan Losses to Adjusted Gross Loans (3) 0.53% Adjusted Net Charge-Offs to Average Gross Loans (3) 0.00% Since 2015, Growth Has Been Accomplished Without M&A

 
 

10 2.61% 2.42% 2.77% 3.01% 2.94% 2015 2016 2017 2018 6/30/2019 20.9% 21.2% 27.2% 28.0% 25.5% 2015 2016 2017 2018 6/30/2019 40.9% 44.7% 37.0% 40.3% 40.3% 2015 2016 2017 2018 6/30/2019 Efficiency Ratio (1 ) Net Interest Margin Exceptional Profitability and Growth Return on Average Equity Note : Financial data is as of or for the years ended December 31 of each respective year or the six months ended June 30 , 2019 (1) Represents non - interest expense divided by the sum of net interest income plus non - interest income Return on Average Assets 4.98% 4.87% 4.76% 4.48% 4.30% 2015 2016 2017 2018 6/30/2019

 
 

11 Peer - Leading Performance (1) Performance Metrics vs. Peers (3) Growth Metrics vs. Peers (2) Peer Median (1) Ethnic Peer G roup includes eight banks traded on either the NYSE or the Nasdaq Global Select Market and headquartered in the United States with a primary focus on serving distinct ethnic communities (EWBC, CATY, HOPE, HAFC, PFBC, RBB, OPBK, and PCB ). Nationwide Peer Group includes 125 banks traded on either the NYSE or the Nasdaq Global Select Market with total assets between $1 billion and $3 billion as of June 30, 2019 (2) Three - Year CAGR from the twelve months ended December 31, 2015 to the twelve months ended December 31, 2018 (3) For the year - to - date period ending on the June 30, 2019 Gross Loans 17.1% 13.6% 28.4% Ethnic Peer Group Nationwide Peer Group MetroCity ROAE 12.5% 9.8% 25.5% Ethnic Peer Group Nationwide Peer Group MetroCity Net Income 26.5% 20.9% 35.6% Ethnic Peer Group Nationwide Peer Group MetroCity Efficiency Ratio 50.8% 62.2% 40.3% Ethnic Peer Group Nationwide Peer Group MetroCity Total Assets ROAA 17.6% 10.4% 28.9% Ethnic Peer Group Nationwide Peer Group MetroCity 1.53% 1.14% 2.94% Ethnic Peer Group Nationwide Peer Group MetroCity

 
 

12 0.91% 0.36% 0.83% 0.63% 1.10% 2015 2016 2017 2018 6/30/2019 Strong Focus on Credit NPAs / Total Assets Credit Quality Highlights • Adherence to disciplined and well - defined underwriting practices » No delegated individual lending authority » Lending authority governed by graduated size limits at each of our management loan committee, directors’ loan committee, or our full board of directors • Focus on low loan - to - value, strong cash flows and personal guarantees in most cases • High level of involvement of our executive senior management team and board of directors • Exceptional performance in our residential mortgage lending » Utilizes a pre - defined criteria approval system with no need for discretionary judgement or approval » Only 5 foreclosures out of 7,520 residential mortgage loans originated between January 1, 2015 and June 30, 2019 (with no losses to the bank) • Take advantage of the SBA and USDA programs to augment credit via guarantees • A significant portion of reserves and charge - offs are attributable to auto loan pools that were purchased in prior years » During 2016, the decision was made to discontinue the purchase of auto loan pools Note: Financial data is as of or for the years ended December 31 of each respective year or the six months ended June 30, 2019 (1) A djusted net charge - offs to average loans are non - GAAP measures that exclude purchased auto loan pools, which we ceased purchasin g in 2016. See Appendix for a reconciliation to the most comparable GAAP financial measures Adjusted NCOs to Average Gross Loans (1) 0.09% 0.01% 0.01% 0.01% 0.00% 2015 2016 2017 2018 6/30/2019

 
 

13 Diverse Loan Portfolio 6/30/2019 Note: Dollars in millions unless otherwise noted Loan Portfolio Highlights 12/31/2014 Construction and Development $37.8 7.7% Commercial Real Estate $317.9 65.0% Commercial and Industrial $32.0 6.5% Consumer $16.7 3.4% Residential Real Estate $83.9 17.2% Other $0.9 0.2% Construction and Development $37.1 3.1% Commercial Real Estate $420.3 35.3% Commercial and Industrial $43.8 3.7% Consumer $1.9 0.2% Residential Real Estate $687.4 57.7% Other $0.4 0.0% • Primary focus on real estate lending with an expertise in non - conforming single family residential (“SFR”) and Small Business Ad ministration (“SBA”) lending • We continue to diversify both geographically and by loan type » Since 2015, we have opened 11 new branches, including 2 in the Atlanta metropolitan area » We also opened three branches in Texas, two branches in New York, and one branch in each of Alabama, Florida, New Jersey and Vir ginia » We will continue to expand geographically to new gateway markets that are culturally diverse and experiencing demographic gro wth From 1/1/2017 to 6/30/2019 MetroCity has originated $1,637 m illion and sold $1,159 million of Residential Real Estate loans Loan Portfolio Composition Gross Loans: $ 1,190.9 million Gross Loans: $489.2 million

 
 

14 Residential Real Estate Lending Geographic Breakdown Residential Real Estate Loan Balances Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respecti ve year or the six months ended June 30 , 2019 Gain on Sale/Servicing Income Volume of Residential Loans Originated and Sold $611.3 $670.3 $687.4 2017 2018 6/30/2019 $581.2 $716.1 $339.8 $362.0 $536.0 $261.0 2017 2018 6/30/2019 Origination Sale $3.0 $5.7 $3.5 $8.2 $12.0 $4.7 2017 2018 6/30/2019 Gain on Sale Servicing Income NY 48.4% GA 25.4% NJ 6.2% PA 5.0% FL 4.4% TX 3.9% VA 3.8% Other 2.9%

 
 

15 SBA Balances Major Industry Exposure Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respecti ve year or the six months ended June 30, 2019 SBA Lending Continues to Support Growth Gain on Sale/Servicing Income Volume of SBA Loans Originated and Sold $157.0 $167.4 $169.9 2017 2018 6/30/2019 $119.6 $121.0 $75.5 $85.9 $93.3 $59.4 2017 2018 6/30/2019 Origination Sale $6.3 $4.6 $2.9 $4.5 $3.1 $2.2 2017 2018 6/30/2019 Gain on Sale Servicing Income Agriculture 7.0% Supermarkets & Other Grocery 4.1% Beer/Wine/Liquor Stores 14.7% Gasoline Stations and Convenience Stores 6.8% Hotels & Motels 9.3% Restaurants 12.1% Car Washes 21.3% Other 24.7%

 
 

16 • For the year ended December 31, 2018 and six months ended June 30, 2019, 39.3% and 39.4%, respectively, of revenue came from noninterest income • Noninterest income for the six - month period ended June 30 , 2019 was $19.5 million, an increase of $172,000 or 0.9%, compared to $19.4 million for the six - month period ended June 30, 2018 • Significant portion of noninterest income is associated with SBA and residential mortgage lending activity, consisting of gains on the sale of loans sold in the secondary market and servicing income from loans sold with servicing rights retained • We structure our residential mortgage loan sales to emphasize servicing fees over gain on sale Well Diversified Revenue Streams Revenue for Six Months Ended June 30 , 2019 Highlights Total: $49.6 million Note: Dollars in millions unless otherwise noted Net Interest Income $30.1 60.6% SBA servicing income, net $2.2 4.4% Other $0.3 0.6% Service charges, commissions and fees $6.0 12.0% Gain on sale - SBA loans $2.9 5.8% Gain on sale - SFR loans $3.6 7.2% Mortgage servicing income, net $4.7 9.4%

 
 

17 Noninterest - bearing $309.3 23.9% NOW and other $35.4 2.7% Money market and savings $161.8 12.5% Time deposits $250,000 or less $580.4 44.8% Time deposits greater than $250,000 $209.3 16.1% 0.85% 0.96% 1.09% 1.60% 2.17% 2015 2016 2017 2018 6/30/2019 Deposit Portfolio Total: $1,296.2 m illion 93.3% Core (1) Deposit Portfolio Composition as of June 30, 2019 Deposit Portfolio Highlights Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respecti ve year or the six months ended June 30, 2019 (1) Core deposits are calculated by adding demand and savings deposits plus time deposits less than $250,000 plus those deposits tha t are over $250,000 if those depositors meet MetroCity relationship criteria, these criteria include: (i) relationships with us (as a director or shareholder); (ii) deposits within our market area; (iii) addit ion al non - deposit services with us; (iv) electronic banking services with us; (v) active demand deposit account with us; (vi) loans or (vii) longevity of the relationship with us • Focused on growing our low - cost deposits, which we gather primarily through our branch network • Total deposits increased $52.0 million, or 4.2% to $ 1.3 billion at June 30, 2019 compared to $ 1.24 billion at December 31, 2018 • Since 2014 we have placed an increased emphasis on growing our relationship - based deposits with our commercial and business lending customers; developing SBA borrowers into full - scale customer relationships • Since 2017, we have been developing deposit relationships with our mortgage borrowers Cost of Deposits

 
 

18 19.40% 14.89% 17.08% 18.16% 18.66% 2015 2016 2017 2018 6/30/2019 13.20% 10.19% 10.76% 11.14% 11.67% 2015 2016 2017 2018 6/30/2019 13.33% 9.75% 10.48% 11.77% 12.09% 2015 2016 2017 2018 6/30/2019 Strong Capital Position Tier 1 Leverage Ratio Tangible Common Equity to Tangible Assets (1) Note: Financial data is as of or for the years ended December 31 of each respective year or the six months ended June 30 , 2019 (1) Represents a non - GAAP financial measure. See Appendix for reconciliation to the most comparable GAAP financial measures Total Risk Based Capital Tier 1 Risk Based Capital 18.26% 14.16% 16.24% 17.44% 17.99% 2015 2016 2017 2018 6/30/2019

 
 

19 Pro Forma Capitalization (1) Assumes 1,000,000 base primary shares offered at the midpoint of the range, 6.50% underwriting spread and $1.4 million in oth er offering expenses for $13.0 million of net proceeds. For regulatory capital purposes, net proceeds are assumed to carry a risk - weighting of 20%. As of June 30, 2019 (dollars in thousands) Actual Pro Forma As Adjusted (1) Shareholders' Equity: Preferred stock, par value $0.01 per share - - Common stock, par value $0.01 per share 243 253 Additional paid-in-capital 39,096 52,134 Retained earnings 144,989 144,989 Accumulated other comprehensive loss (11) (11) Total shareholders' equity 184,317$ 197,365$ Capital Ratios: Tier 1 capital to average assets 11.67% 12.43% Tier 1 capital to risk-weighted assets 17.99% 19.28% Total capital to risk-weighted assets 18.66% 19.94% Common equity Tier 1 capital to risk-weighted assets 17.99% 19.28% Total shareholders' equity to total assets 12.09% 12.84%

 
 

Appendix

 
 

21 Non - Qualified Mortgage Overview • Title XIV of Dodd - Frank governs the ATM/QM Rule, which clearly defines the loan characteristics required for a loan to be considered a “qualified mortgage”: 1. Loan must be fully - amortizing (no interest - only, negative amortization or other risky loan features), with a loan term that does not exceed 360 months 2. Loan must have a debt - to - income ratio that does not exceed 43%, unless the loan qualifies for delivery to one of the GSEs with acceptable AUS findings (the “QM Patch”) 3. The points and fees charged on the loan must not exceed 3%, unless the loan amount is less than $102,894 4. The Loan must meet the definition of the Ability - to - Repay rule , which consists of eight underwriting rules that are used to determine if the borrower has enough income to cover its debts • We believe many lenders are quick to incorrectly equate non - QM loans to subprime loans • QM definition is extremely narrow • Most of our non - QM loans fall marginally outside of this narrow definition Non - Qualified Mortgage Description MetroCity’s Approach to Underwriting Non - QM Loans • Verify the borrower’s income, employment, and assets in accordance with strict internal underwriting standards and procedures that meet the Ability - to - Repay rule • With respect to each mortgage loan, in order to test the reasonableness of the borrower’s income, we use: 1. T ranscripts received from the IRS pursuant to a filing of IRS Form 4506 T (to the extent specified in the Mortgage Loan Schedule ), when available 2. P ublic and/or commercially available information 3. W - 2s and paystubs 4. W ritten verification of employment 5. L etters of profit and loss statements from certified public accountants

 
 

22 Non - QM Securitizations for Select Issuers • MetroCity’s non - QM portfolio has competitive cost and comparable or superior borrower statistics versus historic issuances from Angel Oak, STWD, EFC, Arroyo Mortgage and Bunker Hill • Non - QM Portfolio Weighted Average Coupon : • MCBS at 5.55% vs. 6.22% average among the select issuances • Original LTV: • MCBS at 58.9% vs. 68.5% average among the select issuances • Original FICO : • MCBS at 720 vs. 722 average among the select issuances • MCBS also brings diversification for issuances that have higher geographic concentrations in CA • >95% of MCBS’s r es . real estate lending is located outside CA MCBS Portfolio Highlights Historical Securitizations Source: Kroll; DBRS; Fitch; S&P Global; Morning Star; Bloomberg . Note: MCBS portfolio statistics as of June 30, 2019. Closing Pool Non-QM WAC WA Orig. WA Orig. CA Transaction ($mm) (%) (%) LTV FICO (%) Angel Oak Capital AOMT 2018-1 $328.8 80.8% 6.99% 76.5% 704 20.5% AOMT 2018-2 402.0 84.6% 6.77% 76.7% 704 30.0% AOMT 2018-3 395.8 83.1% 6.57% 78.4% 712 26.6% AOMT 2019-1 609.6 79.2% 6.63% 77.3% 710 25.2% AOMT 2019-2 620.9 83.3% 6.97% 78.1% 712 20.7% AOMT 2019-3 381.3 85.4% 7.21% 76.2% 701 20.3% Starwood Property Trust Star 2018-IMC1 $374.1 62.6% 6.22% 63.9% 727 69.3% Star 2018-IMC2 279.9 52.8% 6.34% 64.9% 724 60.5% Star 2019-IMC1 340.2 52.7% 6.36% 65.7% 722 60.8% Ellington Financial EFMT 2018-1 $232.5 80.5% 6.33% 68.9% 716 53.3% Arroyo Mortgage Trust ARRW 2018-1 $1,219.3 65.0% 5.29% 60.8% 743 73.1% ARRW 2019-1 285.6 57.3% 5.53% 60.6% 744 71.5% ARRW 2019-2 945.5 65.4% 5.56% 61.6% 744 68.2% ARRW 2019-3 945.9 71.1% 5.39% 62.3% 740 58.2% Bunker Hill Loan Depository Trust BHLD 2019-1 $268.2 57.3% 5.70% 61.8% 720 67.9% BHLD 2019-2 416.6 56.6% 5.70% 61.8% 731 49.0% All Issuances - Median 388.5$ 68.3% 6.33% 65.3% 721 55.8% All Issuances - Average 502.9$ 69.9% 6.22% 68.5% 722 48.4%

 
 

23 Selected Historical Consolidated Financials (1) Represents annualized June 30, 2019 and 2018 data (2) Represents non - interest expense divided by the sum of net interest income plus non - interest income As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2015 2016 2017 2018 2018 2019 Statement of Income Data: Interest income 33,370$ 43,566$ 60,514$ 72,879$ 35,090$ 40,680$ Interest expense 3,583 5,238 8,619 14,675 6,273 10,628 Net interest income 29,787 38,327 51,895 58,204 28,817 30,052 Provision for loan losses - - 3,058 1,237 871 - Noninterest income 14,261 20,247 32,405 37,609 19,360 19,532 Noninterest expense 18,005 26,159 31,192 38,575 17,670 19,998 Income tax expense 9,431 12,200 18,153 14,667 7,891 7,894 Net income 16,613 20,216 31,897 41,334 21,745 21,692 Per Share Data: Basic income per share 0.73$ 0.87$ 1.34$ 1.71$ 0.90$ 0.90$ Diluted income per share 0.73 0.86 1.32 1.69 0.89 0.89 Dividends per Share 0.12 0.16 0.23 0.38 0.18 0.20 Book value per share (at period end) 3.90 4.54 5.61 6.95 6.30 7.58 Shares of common stock outstanding 22,973,584 23,642,510 24,074,882 24,258,062 24,241,206 24,305,378 Weighted average diluted shares 22,469,762 23,704,334 24,139,006 24,475,698 24,397,508 24,427,642 Balance Sheet Data: Gross loans held for investment 570,755$ 804,318$ 1,068,593$ 1,145,714$ 1,094,229$ 1,190,911 Loans held for sale - 161,890 31,802 56,865 74,827 69,686 Allowance for loan losses 5,527 5,471 6,925 6,645 6,766 6,483 Total assets 671,380 1,100,063 1,288,927 1,432,650 1,345,821 1,524,509 Deposits 562,850 870,867 1,019,984 1,244,232 1,163,298 1,296,187 Shareholders' equity 89,560 107,261 135,115 168,608 152,751 184,317 Performance Ratios: Return on average assets (1) 2.61% 2.42% 2.77% 3.01% 3.30% 2.94% Return on average equity (1) 20.88 21.19 27.24 27.95 31.51 25.46 Dividend payout ratio 16.04 18.65 17.05 22.48 20.16 22.57 Yield on total loans 6.20 5.94 5.91 5.92 5.92 6.15 Yield on average earning assets 5.74 5.54 5.55 5.60 5.63 5.81 Cost of average interest bearing liabilities 0.88 0.97 1.11 1.60 1.41 2.16 Cost of deposits 0.85 0.96 1.09 1.60 1.39 2.17 Net interest margin 4.98 4.87 4.76 4.48 4.62 4.30 Efficiency ratio (2) 40.88 44.66 37.00 40.26 35.55 40.33

 
 

24 Selected Historical Consolidated Financials (1) Represents annualized June 30, 2019 and 2018 data (2) Represents a non - GAAP financial measure. See following pages for reconciliation to the most comparable GAAP financial measures As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2015 2016 2017 2018 2018 2019 Asset quaility data: Net charge-offs to average loans held for investment (1) 0.09% 0.01% 0.17% 0.14% 0.19% 0.03% Nonperforming assets to gross loans held for investments 1.07 0.49 1.00 0.78 0.73 1.41 ALL to nonperforming loans 111.79 153.94 69.06 74.12 84.88 38.67 ALL to loans held for investment 0.97 0.68 0.65 0.58 0.62 0.54 Balance sheet and capital ratios: Gross loans held for investment to deposits 101.40% 92.36% 104.77% 92.08% 94.06% 91.88% Noninterest bearing deposits to deposits 27.01 24.74 25.52 24.05 24.66 23.87 Tangible common equity to tangible assets (2) 13.33 9.75 10.48 11.77 11.35 12.09 Leverage ratio 13.20 10.19 10.76 11.14 10.79 11.67 Common equity tier 1 ratio 18.26 14.16 16.24 17.44 16.17 17.99 Tier 1 risk-based capital ratio 18.26 14.16 16.24 17.44 16.17 17.99 Total risk-based capital ratio 19.40 14.89 17.08 18.16 16.93 18.66

 
 

25 Non - GAAP Reconciliation Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. Our management uses the non - GAAP financial measures set forth below in its analysis of our performance . • “Tangible common equity” is defined as total shareholders’ equity reduced by other intangible assets . Management does not consider loan servicing rights as an intangible asset for purposes of this calculation. The Company did not have goodwill or outstanding preferred stock during the presented periods. • “ Tangible assets” is defined as total assets reduced by other intangible assets. Management does not consider loan servicing rights as an intangible asset for purposes of this calculation. The Company did not have goodwill during the presented periods. • “ Tangible common equity to tangible assets” is calculated as tangible common equity divided by tangible assets. This measure is important to investors interested in relative changes in the ratio of total shareholders’ equity to total assets, each exclusive of changes in intangible assets. • “Adjusted allowance for loan losses to gross loans” and “adjusted net charge - offs to average loans” exclude the impact of our re maining auto loan pools on “allowance for loan losses to gross loans” and “net charge - offs to average loans,” respectively. As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars in thousands) 2015 2016 2017 2018 2018 2019 Tangible common equity: Total shareholders’ equity 89,560$ 107,261$ 135,115$ 168,608$ 152,751$ 184,317$ Less: Core deposit intangibles and other intangibles 66 9 - - - - Tangible common equity 89,494$ 107,252$ 135,115$ 168,608$ 152,751$ 184,317$ Tangible assets: Total assets 671,380$ 1,100,063$ 1,288,927$ 1,432,650$ 1,345,821$ 1,524,509$ Less: Core deposit intangibles and other intangibles 66 9 - - - - Tangible assets 671,314$ 1,100,054$ 1,288,927$ 1,432,650$ 1,345,821$ 1,524,509$ Tangible common equity to tangible assets: Tangible common equity 89,484$ 107,252$ 135,115$ 168,808$ 152,751$ 184,317$ Tangible assets 671,314 1,100,054 1,288,927 1,432,650 1,345,821 1,524,509 Tangible common equity to tangible assets 13.33% 9.75% 10.48% 11.77% 11.35% 12.09%

 
 

26 Non - GAAP Reconciliation As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars in thousands) 2015 2016 2017 2018 2018 2019 Adjusted allowance for loan losses to gross loans: Gross Loans 570,755 804,318 1,068,593 1,145,714 1,094,229 1,190,911 Less: Auto loan pools 27,749 18,856 8,695 2,641 5,042 1,450 Adjusted gross loans excluding auto loan pools 543,006 785,462 1,059,898 1,143,073 1,089,187 1,189,461 Allowance for loan losses 5,527 5,471 6,925 6,645 6,766 6,483 Less: Allowance for loan losses allocated to auto loan pools - - 1,166 384 650 190 Adjusted allowance for loan losses 5,527 5,471 5,759 6,261 6,116 6,293 Allowance for loan losses to gross loans 0.97% 0.68% 0.65% 0.58% 0.62% 0.54% Adjusted allowance for loan losses to adjusted gross loans 1.02% 0.70% 0.54% 0.55% 0.56% 0.53% Adjusted net charge-offs to average loans: Net charge-offs 459 56 1,603 1,517 1,030 162 Less: Net charge-offs attributable to auto loan pools - - 1,531 1,412 1,026 159 Adjusted net charge-offs 459 56 72 105 4 3 Average gross loans 525,961 679,733 966,707 1,110,451 1,096,726 1,190,422 Net charge-offs to average gross loans 0.09% 0.01% 0.17% 0.14% 0.19% 0.03% Adjusted net charge-offs to average gross loans 0.09% 0.01% 0.01% 0.01% 0.00% 0.00%