#United States #Atlanta #Banking #MetroCity Bank #First IC Corporation

MetroCity Bankshares, Inc. Reports Earnings for the First Quarter of 2025

MetroCity Bankshares, Inc. (NASDAQ: MCBS), the parent company of Metro City Bank, recently disclosed its financial results for the first quarter of 2025. The company marked a net income of $16.3 million, or $0.63 per diluted share. This represents a modest increase from the previous quarter's profit of $16.2 million, also at $0.63 per diluted share, and a notable rise from $14.6 million or $0.57 per share reported in the same period last year.

Key Highlights of Q1 2025

• - The annualized return on average assets was 1.85%, marginally increasing from 1.82% in the previous quarter and significantly up from 1.65% a year ago.
• - Average equity return was 15.67%, a slight decrease from 15.84% in Q4 2024 but higher than 15.41% from Q1 2024. When excluding accumulative other comprehensive income, this figure rises to 16.18%.
• - Efficiency improved as the ratio dropped to 38.3% from 40.5% in Q4 2024 and slightly higher than 37.9% in Q1 2024.
• - The net interest margin was reported at 3.67%, compared to 3.57% in the last quarter and 3.24% a year prior.
• - Commercial real estate loans saw an increase of 4%, reaching $792.1 million, indicating robust lending activities.

Merger Announcement with First IC Corporation

Additionally, on March 16, 2025, MetroCity Bankshares announced its intention to merge with First IC Corporation, the parent of First IC Bank. Under the terms of the merger, First IC’s shareholders will receive $111.97 million in cash and 3,384,588 shares of MetroCity common stock. This merger is anticipated to close in Q4 2025, pending regulatory approvals and shareholder consent from First IC. This strategic move is expected to significantly expand MetroCity’s assets, bringing combined total assets to roughly $4.8 billion, with deposits at $3.7 billion and loans amounting to $4.1 billion.

Operations Overview

The operational results for the quarter reflected some positive trends:

• - Net interest income totaled $30.6 million, marked by slight fluctuations in both interest income and expense. Interest expenses were reduced to $22 million, a 2.6% decline from the prior quarter, primarily driven by lower time deposit costs.
• - Comparing year-over-year, net interest income saw an increase of approximately $3.5 million, contributing to the overall rise in net income.
• - In terms of noninterest income, the company secured $5.5 million, up 2.5% from Q4 2024 due to increased gains from residential mortgage loans, despite a decrease in SBA loan servicing income.
• - Noninterest expenses were reduced by 3.7%, emphasizing the effectiveness of cost management strategies, albeit showing an annual increase of 11.6% due to salary adjustments and other operational costs.

Future Outlook

Despite facing various challenges including potential alterations in interest rates and market fluctuations, MetroCity Bank is poised for growth through its strategic acquisitions and improved operational efficacy. With a significant amount of uninsured deposits (24.3% of total), the bank appears to be in a solid position to leverage ongoing market opportunities while also preparing for the regulatory requirements stemming from the anticipated merger. As the financial landscape evolves, MetroCity remains committed to enhancing its service offerings and expanding its community presence across the states where it operates.

The path ahead looks promising as MetroCity continues on its trajectory of growth and adaptation in a dynamic industry, aiming to solidify its standing within the banking sector in the coming years.