MetroCity Bankshares (MCBS) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $17.3 million, up 3.4% year-over-year, with basic and diluted EPS of $0.68 and $0.67; nine-month net income reached $50.4 million, a 4.4% increase.

• Annualized return on average assets for Q3 2025 was 1.89%, and return on average equity was 15.69%.

• The pending acquisition of First IC Corporation is expected to close in Q4 2025, with all regulatory approvals received and a pro forma company with $4.8 billion in assets.

Financial highlights

• Net interest income for Q3 2025 was $31.8 million, up $1.5 million year-over-year; net interest margin increased to 3.68%.

• Noninterest income for Q3 2025 was $6.2 million, down 6.6% year-over-year but up 7.8% sequentially, mainly due to lower gains on loan sales.

• Noninterest expense rose 7.4% year-over-year to $14.7 million, driven by higher salaries, benefits, and merger-related costs.

• Total assets grew 1.0% since year-end to $3.63 billion; total loans held for investment decreased 6.2% to $2.97 billion.

• Total deposits declined to $2.69 billion, with noninterest-bearing deposits comprising 20.2% of the total.

Outlook and guidance

• Management expects continued benefit from interest rate derivatives, estimating a $3.2 million credit to interest expense for the remainder of 2025 and $7.6 million in 2026.

• The First IC merger is anticipated to close in Q4 2025, with integration risks, cost synergies, and economic and regulatory risks highlighted.