1. MCBS reported Q2 2025 net income of $16.8 million. 2. Annualized return on average assets slightly increased to 1.87%. 3. Acquisition of First IC Corporation expected to complete Q4 2025. 4. Efficiency ratio improved to 37.2%, indicating better cost management. 5. Nonperforming assets decreased by $3.3 million to $15.2 million.
MCBS shows stable earnings growth and improved efficiency. Historical growth trends, like consistent increases in net income, often correlate with positive market responses.
The reported gains in income and the merger approval present actionable insights for investors, indicating potential stock valuation growth.
The successful merger and improvements in asset quality suggest a favorable long-term outlook.
MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.8 million, or $0.65 per diluted share, for the second quarter of 2025, compared to $16.3 million, or $0.63 per diluted share, for the first quarter of 2025, and $16.9 million, or $0.66 per diluted share, for the second quarter of 2024. For the six months ended June 30, 2025, the Company reported net income of $33.1 million, or $1.29 per diluted share, compared to $31.6 million, or $1.24 per diluted share, for the same period in 2024.
On July 15, 2025, MetroCity announced that we received all required regulatory approvals and non-objections to complete MetroCity's merger with First IC Corporation ("First IC"), the parent company of First IC Bank. In addition, on July 15, 2025, First IC's shareholders voted to approve the merger. The merger is expected to be completed early in the fourth quarter of 2025, and remains subject to the satisfaction of customary closing conditions.
Net income was $16.8 million for the second quarter of 2025, an increase of $529,000, or 3.2%, from $16.3 million for the first quarter of 2025. This increase was primarily due to an increase in net interest income of $1.6 million and an increase in noninterest income of $277,000, offset by an increase in income tax expense of $1.1 million and an increase in noninterest expense of $314,000. Net income decreased by $111,000, or 0.7%, in the second quarter of 2025 compared to net income of $16.9 million for the second quarter of 2024. This decrease was due to increases in noninterest expense of $1.1 million, income tax expense of $413,000, and provision for credit losses of $257,000, offset by increases in net interest income of $1.5 million and noninterest income of $174,000.
Interest income totaled $54.0 million for the second quarter of 2025, an increase of $1.5 million, or 2.9%, from the previous quarter, primarily due to a $72.5 million increase in the average interest-earning cash and fed funds sold balance and a nine basis points increase in the loan yield, offset by a 16 basis points decrease in the total investments yield and a $34.1 million decrease in average loan balances. As compared to the second quarter of 2024, interest income for the second quarter of 2025 decreased by $59,000, or 0.1%, primarily due to a 169 basis points decrease in the total investments yield, offset by a $41.4 million increase in the average total investments balance, a $5.7 million increase in average loan balances and a three basis points increase in the loan yield.
Total interest expense decreased by $1.5 million, or 6.5%, primarily due to a 38 basis points decrease in deposit costs coupled with a $22.6 million decrease in average deposit balances, offset by a 13 basis points increase in borrowing costs and a $56.9 million increase in the average borrowings balance.
The Company's effective tax rate for the second quarter of 2025 was 28.9%, compared to 26.2% for the first quarter of 2025 and 27.5% for the second quarter of 2024.
Total assets were $3.62 billion at June 30, 2025, a decrease of $44.0 million, or 1.2%, from $3.66 billion at March 31, 2025... (further content from the original text can be added here)
MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.
Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934... (further content from the original text can be added here)
Farid Tan
President
770-455-4978
[email protected]
Lucas Stewart
Chief Financial Officer
678-580-6414
[email protected]