MetroCity Bankshares (MCBS) Stock: Q1 2025 Earnings With Solid Profit, Higher NIM, and Acquisition Plans

TLDR

Q1 2025 net income reached $16.3 million, or $0.63 per share. Net interest margin rose to 3.67%, up from 3.57% in Q4 2024. Return on average assets improved to 1.85%. Efficiency ratio tightened to 38.3%, indicating stronger cost control. MetroCity announced the acquisition of First IC Corporation in a cash and stock deal.

MetroCity Bankshares, Inc. (NASDAQ: $MCBS) closed at $26.99 on April 17, 2025, up 1.20% for the day. The company released its Q1 2025 earnings report on April 18, showing stable earnings performance, improved net interest margin, and continued growth in commercial lending. The bank also announced its planned acquisition of First IC Corporation, marking a major strategic move.

MetroCity Bankshares, Inc. (NASDAQ: $MCBS)

Earnings and Profitability Metrics

MetroCity posted a net income of $16.3 million, or $0.63 per diluted share, for the first quarter of 2025. This was consistent with Q4 2024 results and reflected an increase from $14.6 million, or $0.57 per share, in Q1 2024.

Return on average assets rose to 1.85% from 1.82% in the previous quarter, highlighting efficient asset utilization. Return on average equity stood at 15.67%, slightly down from 15.84% in Q4 2024. When excluding accumulated other comprehensive income, return on equity reached 16.18%.

Efficiency and Net Interest Margin

The bank’s efficiency ratio dropped to 38.3% from 40.5% in Q4, pointing to tighter cost control. Net interest margin increased to 3.67% from 3.57% in Q4 and 3.24% a year ago, driven by better interest income generation relative to funding costs.

Loan Growth and Commercial Real Estate Lending

Commercial real estate loans grew by $30.1 million, or 4.0%, reaching $792.1 million by quarter-end. This segment continues to be a core strength for MetroCity, providing consistent revenue while supporting overall loan portfolio expansion.

Acquisition of First IC Corporation

In a major development, MetroCity announced on March 16 a definitive merger agreement with First IC Corporation, the parent of First IC Bank. The acquisition, structured as a cash and stock transaction, includes the issuance of 3,384,588 MetroCity shares and $111.97 million in cash, subject to adjustments.

The merger awaits shareholder and regulatory approvals and is expected to close in Q4 2025. Post-merger, the combined entity would hold $4.8 billion in assets, $3.7 billion in deposits, and $4.1 billion in loans, significantly boosting MetroCity’s scale and market presence. The deal positions the bank for increased investment in technology and enhanced competitive strength.

Stock Performance and Valuation

Despite a strong earnings release, MetroCity’s stock is down 14.90% YTD, underperforming the S&P 500’s -10.18%. Over longer periods, however, the bank has delivered impressive returns—22.80% over one year, 37.90% over three years, and 207.48% over five years. These figures reflect strong fundamentals and consistent profitability.

Earnings Date

The company is expected to report its next earnings between July 17 and July 21, 2025.

MetroCity’s Q1 2025 results underline its disciplined financial approach, solid profitability, and growth focus through strategic expansion. If the First IC merger proceeds as planned, the bank will likely benefit from enhanced market positioning and operational scale.

 

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