MetroCity Bankshares, Inc. (MCBS): ANSOFF MATRIX [Dec-2025 Updated]

You've just seen MetroCity Bankshares, Inc. (MCBS) complete a major scale-up, and now the real work-maximizing that new size-begins. As someone who's mapped growth strategies for decades, I see four distinct paths forward, ranging from the immediate need to push that loan-to-deposit ratio past $4.0 billion in loans versus deposits, to more aggressive plays like acquiring a FinTech firm. We need to look beyond just hitting that 37.2% efficiency ratio; we need a concrete plan. Honestly, the next phase isn't about hoping; it's about choosing the right quadrant. Dive into the matrix below to see the specific actions we need to take right now.

MetroCity Bankshares, Inc. (MCBS) - Ansoff Matrix: Market Penetration

Market Penetration for MetroCity Bankshares, Inc. (MCBS) centers on maximizing revenue from the existing customer base and geographic footprint, especially following the First IC Corporation merger.

The immediate focus is on increasing asset utilization by driving the loan-to-deposit ratio higher than the pro forma baseline established post-acquisition. The combined entity reports approximately $4.0 billion in total loans against $3.6 billion in total deposits. This suggests an immediate opportunity to deploy existing core deposits more aggressively into earning assets within the current market areas.

To enhance deposit gathering within the existing network, promotional strategies target the noninterest-bearing deposit segment. The strategic goal is to capture a larger share of this funding source, which stood at 19.7% of total deposits in Q1 2025. This contrasts with the Q3 2025 figure where noninterest-bearing deposits constituted 20.2% of total deposits, indicating a slight shift toward interest-bearing accounts as the year progressed. The cost of interest-bearing liabilities in Q3 2025 was 3.28%.

Deepening relationships across the established footprint is critical. MetroCity Bankshares operates a network of 30 full-service branches across eight states. Targeted marketing campaigns must be tailored to the multi-ethnic communities served by this network to increase wallet share per customer.

Operational excellence must support revenue growth. A key performance indicator is maintaining the strong cost discipline seen in Q2 2025, where the Efficiency Ratio was reported at 37.2%. This must be sustained despite the noninterest expense pressures from integration costs associated with the merger.

The new scale allows for more competitive product offerings in core markets. A competitive commercial real estate (CRE) loan campaign is planned for Georgia and New York. This leverages the combined entity's balance sheet strength to capture market share from competitors in these key states.

Here is a snapshot of key metrics informing the Market Penetration strategy:

Actions to drive penetration include:

• Increase utilization of existing core deposits.
• Target promotional Certificate of Deposit (CD) rates.
• Deploy localized marketing in all 30 markets.
• Hold noninterest expense to maintain sub-38% efficiency.
• Aggressively price CRE loans in Georgia and New York.

Finance: draft 13-week cash view by Friday.

MetroCity Bankshares, Inc. (MCBS) - Ansoff Matrix: Market Development

Market Development for MetroCity Bankshares, Inc. centers on expanding its geographic footprint and customer base beyond its established seven-state region through strategic acquisition, specifically the integration of First IC Corporation.

The acquisition of First IC Corporation, valued at approximately $206 million in a cash and stock transaction, is slated for completion in the fourth quarter of 2025. This move immediately introduces MetroCity Bankshares into new markets, notably strengthening its West Coast presence via First IC Bank's operations in California and Washington. The transaction is projected to deliver approximately 26% EPS accretion to MetroCity shareholders in the first full year post-closing.

The scale achieved through this market expansion is substantial, moving the combined entity past the $4 billion asset mark. This increased scale is intended to support competition and prioritization of technology investments. The expected tangible book value payback period for the investment is approximately 2.4 years.

The strategy moves beyond the traditional focus on small to medium-sized business (SME) lending by integrating First IC's existing asset base and customer relationships, positioning the combined entity to target larger segments, including mid-market companies, across the newly expanded footprint.

The following table summarizes the financial scale shift resulting from this Market Development activity:

The integration of First IC Corporation's operations directly supports the goal of driving West Coast deposit gathering by incorporating its existing presence in California and Washington. This geographic expansion is a key component of the Market Development strategy, building upon MetroCity Bankshares' existing base of 20 branches across seven states as of September 30, 2025.

The operational efficiency and profitability metrics of MetroCity Bankshares leading into the expansion provide a strong foundation:

• Net Income for Q2 2025 was $16.8 million.
• Annualized Return on Average Assets (ROAA) for Q2 2025 was 1.87%.
• Net Interest Margin (NIM) for Q2 2025 reached 3.77%.
• Efficiency Ratio for Q2 2025 was 37.2%.
• Noninterest-bearing deposits constituted 20.4% of total deposits at June 30, 2025.

The expansion into new markets via acquisition is designed to diversify revenue streams and increase the asset base from $3.62 billion (as of June 30, 2025) to an estimated $4.8 billion post-merger.

MetroCity Bankshares, Inc. (MCBS) - Ansoff Matrix: Product Development

You're looking at where MetroCity Bankshares, Inc. can grow by introducing new offerings to its existing customer base, which as of September 30, 2025, managed total assets of $3.63 billion.

The foundation for this strategy rests on current product performance. For instance, mortgage loan originations saw a significant jump to $168.6 million in the third quarter of 2025, up from $93.2 million in the second quarter of 2025. Meanwhile, SBA loan sales were $13.4 million in Q3 2025, down from $20.7 million in Q2 2025, showing variability in that segment.

Here's a look at the recent performance of the core lending segments that Product Development aims to enhance:

The efficiency ratio for MetroCity Bankshares, Inc. was 38.7% in the third quarter of 2025, which provides a benchmark for the operational cost structure as these new products roll out.

The Product Development strategy centers on deepening relationships with current clients through specialized financial tools:

• Introduce a specialized suite of high-tech treasury management services for small business clients, including Positive Pay and enhanced fraud protection.
• Develop a proprietary digital lending platform for Small Business Administration (SBA) loans to streamline the process and increase volume from the $13.4 million in Q3 2025 sales.
• Create wealth management and private banking services tailored to high-net-worth individuals within the existing customer base.
• Offer new, structured commercial loan products like interest rate swaps to better manage client risk in the current rate environment; interest rate derivatives on the balance sheet decreased by $3.2 million from Q2 to Q3 2025.
• Roll out a mortgage product focused on first-time home buyers in the multi-ethnic communities they serve, building on the $168.6 million in Q3 2025 originations.

The bank's existing noninterest-bearing deposits stood at 19.7% of total deposits as of March 31, 2025, representing a stable, low-cost funding base to support new lending products.

The net interest margin for the third quarter of 2025 was 3.68%, a key profitability indicator that these new, higher-margin services should aim to improve upon.

Net income for the nine months ended September 30, 2025, reached $50.4 million, showing the overall financial capacity to invest in these product enhancements.

MetroCity Bankshares, Inc. (MCBS) - Ansoff Matrix: Diversification

Acquire a small, non-bank financial technology (FinTech) firm to rapidly integrate new payment or lending technologies. This move targets new products in existing markets, aiming to supplement core banking revenue streams that saw a Net Interest Margin (NIM) of 3.77% in Q2 2025.

Enter the insurance brokerage market by offering commercial property and casualty insurance to existing business loan clients. This is a product development play within the current geographic footprint, which, post-merger with First IC Corporation effective December 1, 2025, spans eight states.

Pursue a strategic merger or acquisition (M&A) in a non-contiguous state like Arizona or Nevada to diversify geographic risk beyond the current eight states. The combined entity, after the First IC acquisition, reports approximately $4.8 billion in total assets.

Invest in a minority stake in a regional venture capital fund to gain exposure to non-traditional, high-growth financial services. This diversifies the investment portfolio away from the core loan book, which totaled $4.0 billion post-merger.

Establish a dedicated equipment leasing subsidiary to diversify revenue streams away from core interest income, which drove Q2 2025's 3.77% NIM. This strategy seeks to build non-interest income sources to complement the $5.7 million in noninterest income reported for Q2 2025.

Key financial metrics from the second quarter of 2025 provide context for the need for diversification:

The geographic expansion strategy aims to reduce concentration risk across the current operating base. The states served include:

• Alabama
• California
• Florida
• Georgia
• New Jersey
• New York
• Texas
• Virginia

The recent merger added scale, moving total deposits to $3.6 billion post-close.

Finance: draft 13-week cash view by Friday.