#United States #Merger #MetroCity Bankshares #Doraville #First IC Corporation

MetroCity Bankshares and First IC Corporation Announce Strategic Merger

In a significant development in the banking sector, MetroCity Bankshares, Inc., the parent of Metro City Bank, has announced its decision to merge with First IC Corporation, which operates First IC Bank. This strategic combination is expected to introduce substantial enhancements in both institutions’ service offerings and market strength.

Key Details of the Merger

On March 17, 2025, MetroCity and First IC formally announced their merger agreement, which has been unanimously approved by the boards of directors from both companies. The merger will be executed through a cash and stock transaction where First IC shareholders will receive a total payout that includes 3,384,588 shares of MetroCity common stock and approximately $111 million in cash, marking an illustrative blend of 46% in stock and 54% in cash. Based on the closing price of MetroCity's stock prior to the announcement, the deal values First IC shares at around $22.71 each, translating to an overall transaction value of $206 million.

As of the end of 2024, First IC Corporation reported total assets of $1.2 billion, along with $975 million in deposits and $993 million in loans. Following the merger, the newly formed entity is positioned to boast approximately $4.8 billion in assets, $3.7 billion in deposits, and $4.1 billion in loans. The combined company aims to leverage this scale to drive competitive growth, particularly through investments in technology.

Remarks from Leadership

Chong Chun, Chairman of First IC Corporation, expressed enthusiasm about the merger, stating, "Combining our two organizations will create a stronger banking institution for our customers, employees, and communities." He emphasized that this merger aligns with their shared values, prioritizing enhanced service offerings and future opportunities for all stakeholders.

MetroCity's Chairman and CEO, Nack Paek, shared a similar sentiment, voicing excitement about the merger’s potential to offer improved service to clients and provide benefits to employees while ensuring robust returns for shareholders. "The enhanced balance sheet will not only bolster our competitive position but also allow us to reinvest in building the best bank possible," he noted.

Expected Outcomes

The merger is projected to yield approximately 26% earnings per share accretion for MetroCity shareholders by the end of the first complete fiscal year post-merger. It is also anticipated that the tangible book value payback period will be around 2.4 years. As stakeholders await completion, they are keen on the anticipated benefits and growth trajectory of the new entity.

Timeline and Approvals

Current projections indicate that the merger will close in the fourth quarter of 2025 upon satisfying customary closing conditions. This includes obtaining requisite regulatory approvals and approval from First IC shareholders.

Both companies have engaged trusted advisors to navigate the complexities of this acquisition. Hillworth Bank Partners served as the financial advisor to MetroCity, while Stephens Inc. took on the same role for First IC, ensuring a comprehensive analysis during the merger planning process.

Background on the Organizations

MetroCity Bankshares, headquartered in Doraville, Georgia, currently operates 20 banks across seven states, boasting assets equal to approximately $3.6 billion as of the end of 2024. On the other hand, First IC Corporation, also based in Doraville, has its own lineage dating back to 2000 and features ten banking locations along with two loan offices across multiple states.

With this merger, both MetroCity and First IC plan to broaden their reach and enhance their operational capabilities, benefitting shareholders, employees, and customers alike while reinforcing their commitments to community service and financial stability.

The details might seem nebulous initially, but the anticipated synergy stands a chance to reshape the landscape of banking in Georgia and beyond, offering more refined and diversified banking solutions. As the financial community and stakeholders keep tabs on this merging of legacies, the potential for growth and innovation appears promising.

For further inquiries, representatives from both sides are prepared to share insights into upcoming developments and expectations as the merger progresses.