NetClass Technology gets 180-day deadline after sub-$1 Nasdaq deficiency notice

INCINC

NetClass Technology Inc. received a Nasdaq Listing Qualifications notice on January 27, 2026 after its Class A ordinary shares closed below $1 for 30 consecutive business days. Nasdaq has granted a 180-day compliance period until July 27, 2026, during which NetClass may regain compliance or pursue a reverse stock split to avoid delisting.

1. MetroCity Reports Fourth Quarter and Full-Year Earnings Growth

MetroCity Bankshares, Inc. recorded net income of $18.3 million, or $0.68 per diluted share, in the fourth quarter of 2025, up 12.8% from $16.2 million in the year-ago quarter. Sequentially, net income rose 6.0% from $17.3 million in Q3 2025. For the full year, MetroCity delivered $68.7 million in net income, or $2.64 per diluted share, a 6.5% increase over $64.5 million in 2024. The year-over-year gain reflected $12.3 million higher net interest income and $2.1 million higher noninterest income, offset in part by $9.6 million higher noninterest expense and $1.4 million higher income tax expense.

2. Balance Sheet Expands on First IC Acquisition

Total loans held for investment increased by $1.1 billion, or 36.6%, to $4.1 billion in Q4 2025, driven largely by the December 1 acquisition of First IC Corporation. Excluding acquired loans, organic lending grew by $91.5 million (3.1%) sequentially. Total deposits rose $952.9 million, or 35.4%, to $3.65 billion, with organic deposit growth of $73.8 million (2.7%) from Q3. Average earning assets climbed $384.9 million in the quarter, while average interest-bearing liabilities grew $297.0 million, reflecting the integration of First IC’s balances.

3. Profitability and Efficiency Metrics Show Mixed Trends

Annualized return on average assets in Q4 2025 was 1.80%, down from 1.89% in Q3 and 1.82% in Q4 2024. Annualized ROAE was 15.45%, compared with 15.69% in Q3 and 15.84% a year earlier; non-GAAP adjusted ROAE rose to 17.83% from 16.10% in Q3. The efficiency ratio widened to 46.7% from 38.7% in Q3 and 40.5% a year ago. Net interest margin improved to 3.73%, up five basis points sequentially and 16 basis points year-over-year, reflecting higher loan yields and stable funding costs.

4. Acquisition Bolsters Strategic Position and Financial Flexibility

With the closing of the First IC transaction on December 1, MetroCity added $370.6 million in average loans and $268.0 million in average deposits to its balance sheet, and gained $825.0 million of interest rate derivatives designated as cash-flow hedges. CEO Nack Paek highlighted that the combination enhances MetroCity’s competitive position in key markets and provides financial flexibility to support continued organic growth initiatives and community investment.

Sources

PPPG