MetroCity Bankshares Reports Q2 2025 Financial Results with $16.8M Net Income

MetroCity Bankshares, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $16.8 million, a slight decrease of 0.7% from $16.9 million in the same period last year. For the first half of 2025, net income increased by 4.9% to $33.1 million compared to $31.6 million in the prior year. The company's earnings per share for the second quarter were $0.66, down from $0.67 in the previous year, while the six-month figures showed an increase to $1.30 from $1.25. The increase in net income for the first half was attributed to a rise in net interest income, which grew by $4.9 million, despite higher noninterest expenses and provisions for credit losses.

Total assets for MetroCity Bankshares increased to $3.62 billion as of June 30, 2025, up from $3.59 billion at the end of 2024. This growth was primarily driven by increases in cash and due from banks, equity securities, and loans held for sale, although loans held for investment decreased by $36.4 million to $3.13 billion. The bank's total deposits also saw a decline of $47.3 million, totaling $2.69 billion, largely due to decreases in interest-bearing demand deposits and time deposits, partially offset by an increase in money market accounts.

In terms of operational developments, MetroCity Bankshares is in the process of merging with First IC Corporation, which is expected to be completed in the fourth quarter of 2025. This merger will significantly expand the company's asset base, projecting a combined total of approximately $4.8 billion in assets. The merger has received all necessary regulatory approvals and shareholder support, indicating a strategic move to enhance market presence and operational capacity.

The bank's provision for credit losses was $129,000 for the second quarter, compared to a credit of $128,000 in the same period last year. The allowance for credit losses remained stable at $18.7 million, reflecting management's assessment of credit risk in the current economic environment. The bank's nonperforming loans decreased to $14.4 million, representing 0.46% of total loans, down from $18.0 million at the end of 2024. This improvement in asset quality is indicative of effective risk management practices.

Looking ahead, MetroCity Bankshares anticipates continued growth driven by the upcoming merger and strategic initiatives aimed at enhancing its service offerings. The bank remains focused on maintaining strong capital ratios, with a total capital ratio of 20.78% as of June 30, 2025, well above the regulatory minimum. The management's outlook reflects confidence in navigating potential economic challenges while capitalizing on growth opportunities in its target markets.