MetroCity Bankshares Reports Strong Earnings Growth in Second Quarter of 2025

On July 18, 2025, MetroCity Bankshares, Inc. (NASDAQ: MCBS), the parent company of Metro City Bank, announced its earnings report for the second quarter of 2025. The company revealed a net income of $16.8 million, translating to $0.65 per diluted share. This figure marks an increase from the $16.3 million net income, or $0.63 per diluted share, reported in the previous quarter. Additionally, the earnings of Q2 2025 show that the company is maintaining stability against the backdrop of a slight decline from $16.9 million, or $0.66 per diluted share, noted in the same quarter last year.

Quarter Highlights

MetroCity's performance in the second quarter yielded an annualized return on average assets of 1.87%, a marginal increase from 1.85% in the previous quarter, but slightly below last year’s figures of 1.89%. The annualized return on average equity, however, improved to 15.74% from 15.67% in Q1 2025, albeit lower than the 17.10% seen during Q2 2024. The company's efficiency ratio improved to 37.2%, a positive shift from 38.3% in Q1 2025 but slightly elevated compared to one year ago's 35.9%. A critical component of the bank's earnings strategy, the net interest margin, grew to 3.77% for the quarter, edging up from 3.67% from the prior quarter and surpassing last year's 3.66%.

Year-to-Date Achievements

For the first half of 2025, MetroCity recorded a net income of $33.1 million, or $1.29 per diluted share. This represents a 4.9% increase from the $31.6 million, or $1.24 per diluted share, reported for the same period in 2024. Notably, the bank's return on average assets for the year so far sits at 1.86%, an improvement from 1.77% the preceding year, while return on equity shows a decrease to 15.71% from 16.27%. Overall, the year-to-date efficiency ratio is at 37.8%, up from 36.8% compared to last year.

Recent Merger Announcement

On July 15, 2025, MetroCity Bankshares disclosed that it received regulatory approvals to proceed with its merger with First IC Corporation, the parent company of First IC Bank. The shareholders of First IC also voted in favor of the merger, which is set to complete in the early fourth quarter of 2025, pending customary closing conditions. This strategic move aims to enhance MetroCity's market presence and financial resources, ultimately serving a broader range of customers across diverse communities.

Observations on Operational Results

The increase in net income by $529,000 for Q2 2025 stems largely from a $1.6 million rise in net interest income alongside a $277,000 boost in noninterest income, despite an uptick in noninterest expenses by $314,000 and a $1.1 million rise in income tax expense.

MetroCity’s interest income reached $54 million for Q2 2025, reflecting a 2.9% increase from the previous quarter. Conversely, interest expenses decreased slightly to $21.9 million, highlighting the bank's effective management of costs as interest-bearing liabilities exhibited a shift.

Summary

MetroCity Bankshares, Inc.'s strong financial performance, marked with robust earnings reports and the strategic merger with First IC Corporation, positions the company effectively for growth in the financial sector. As the transformation unfolds, investors and stakeholders are optimistic about the enhanced operational capabilities and services that can benefit a growing customer base amid varying economic conditions.

As MetroCity prepares for its merger with First IC Corporation, it remains committed to delivering value and services that resonate with its diverse clientele across several states.