#United States #Atlanta #Financial Growth #MetroCity Bankshares #Metro City Bank

MetroCity Bankshares Reports Strong Q3 2025 Earnings

MetroCity Bankshares, Inc., a prominent bank holding company, has released its earnings report for the third quarter of 2025, showcasing robust financial growth and operational efficiency that have impressed investors and stakeholders alike.

Earnings Overview

In Q3 2025, MetroCity reported a notable net income of $17.3 million, translating to $0.67 per diluted share. This marks an increase from $16.8 million, or $0.65 per diluted share, in Q2 2025 and also a rise from $16.7 million, or $0.65 per diluted share, recorded in the same quarter last year. The net income for the first nine months of the year stood at $50.4 million, equating to $1.96 per diluted share, up from $48.3 million, or $1.89 per diluted share, in the same period of 2024.

Key Highlights

The company achieved an annualized return on average assets of 1.89%, showing slight improvement over the previous quarter's 1.87% and last year’s 1.86%. Similarly, the annualized return on average equity was at 15.69%, reflecting a small decline from 15.74% in Q2 2025 and a decrease from 16.26% in Q3 2024. Notably, after adjusting for certain expenses, the return on equity stood at 16.17% for this quarter.

The efficiency ratio, indicating the percentage of income consumed by expenses, was measured at 38.7%, a rise from 37.2% last quarter and 37.0% in the same quarter last year. Net interest margin decreased slightly to 3.68% compared to 3.77% in Q2 2025.

Loan Growth

This quarter also marked a significant increase in the total loans portfolio, which expanded by $71.6 million to reach $3.20 billion, affirming the bank's growth strategy and market presence. This is indicative of a strong demand for loans in various sectors of the economy, particularly in residential and commercial real estate.

Year-To-Date Performance

For the nine months ending September 30, 2025, return on average assets was reported at 1.87%, up from 1.80% for the same period last year. However, the return on average equity fell to 15.70%, down from 16.27% in 2024. The efficiency ratio improved slightly to 38.1% year-to-date versus 36.9% in 2024.

The net interest margin showed a positive trend, increasing 21 basis points to 3.71% from 3.50% over the same nine-month period last year.

Strategic Merger Updates

In a strategic move, MetroCity confirmed the acquisition of First IC Corporation, the parent company of First IC Bank, with all necessary regulatory approvals secured as of July 15, 2025. The merger is set to enhance MetroCity's operational capabilities and market share and is expected to finalize by the end of this quarter.

Financial Insights

Further dissecting the numbers reveals that net interest income for Q3 2025 totaled $31.8 million, experiencing a slight decline compared to the previous quarter. However, this reflected an overall positive trajectory in earnings year-on-year. Interest expense saw a minor increase to $22.2 million, attributable to rising deposit costs and increased balances in interest-bearing deposits.

At the conclusion of September 2025, total assets recorded stood at approximately $3.63 billion, showcasing an increase from both the previous quarter and the same time last year, backed by strong loan growth and asset management strategies.

Conclusion

MetroCity Bankshares continues to demonstrate its financial resilience and capability to adapt in a dynamic economic landscape. The improving figures speak to the management's commitment to enhancing shareholder value while navigating challenges in the market. Investors and stakeholders remain optimistic regarding the bank's strategic initiatives and overall growth trajectory as it gears up for the completion of the First IC merger by the end of this quarter.

For more details about MetroCity Bankshares and its services, visit Metro City Bank.