MetroCity Bankshares Reports $16.3 Million Net Income in Q1 2025, Announces Merger with First IC Corporation

MetroCity Bankshares, Inc. reported a net income of $16.3 million for the first quarter of 2025, reflecting an increase of 11.4% from $14.6 million in the same period of 2024. This growth was primarily driven by a $3.5 million rise in net interest income, which reached $30.6 million, alongside a slight decrease in income tax expenses. The bank's basic and diluted earnings per share improved to $0.64 and $0.63, respectively, compared to $0.58 and $0.57 in the prior year. Total interest income increased marginally to $52.5 million, while interest expenses decreased significantly by 13.1% to $22.0 million, contributing to a net interest margin of 3.67%, up from 3.24% a year earlier.

In terms of operational metrics, MetroCity Bank's total assets grew by 1.8% to $3.66 billion, driven by increases in cash and loans held for sale. However, gross loans held for investment decreased by 0.8% to $3.14 billion, with notable increases in construction and development loans and commercial real estate loans, offset by declines in residential real estate and commercial and industrial loans. The bank's total deposits remained stable at $2.74 billion, with a slight increase in money market accounts and noninterest-bearing deposits, while time deposits saw a decrease.

Strategically, MetroCity Bankshares announced a significant merger agreement with First IC Corporation, which is expected to enhance its market presence. The merger, subject to regulatory approvals, will combine First IC's $1.2 billion in assets with MetroCity's operations, creating a pro forma entity with approximately $4.8 billion in total assets. This acquisition aligns with the bank's strategy to expand its footprint in multi-ethnic communities across the Eastern U.S. and Texas.

The bank's allowance for credit losses stood at $18.6 million, slightly down from $18.7 million at the end of 2024, reflecting a cautious approach to credit risk management amid changing economic conditions. The provision for credit losses was recorded at $135,000 for the quarter, compared to a credit of $140,000 in the previous year. The bank maintained a strong asset quality, with nonperforming loans representing 0.54% of total loans, a decrease from 0.57% at the end of 2024.

Looking ahead, MetroCity Bankshares expressed optimism about its growth trajectory, bolstered by the anticipated benefits from the First IC merger and ongoing efforts to enhance its service offerings in diverse communities. The bank remains focused on managing its interest rate risk and maintaining a robust capital position, with all regulatory capital ratios exceeding the well-capitalized requirements as of March 31, 2025.