Metrocity Bankshares, Inc. Announces Earnings Results For Third Quarter 2025

MetroCity Bankshares, Inc. (MCBS) today announced its financial results for the recent quarter, reporting earnings per share of $0.67, which met analysts’ expectations. The company also achieved a significant revenue increase, posting $54.0 million, surpassing estimates by $16.3 million. This strong performance highlights MetroCity’s continued growth and resilience in the competitive banking sector.

Key Highlights:

• Net income for Q3 2025 was $17.3 million, up from $16.8 million in Q2 2025 and $16.7 million in Q3 2024.
• Annualized return on average assets increased to 1.89% in Q3 2025, compared to 1.87% in Q2 2025.
• Total loans increased by $71.6 million to $3.20 billion from Q2 2025.
• The merger with First IC Corporation is expected to be completed in Q4 2025.
• Noninterest income rose by 7.8% from Q2 2025, driven by higher mortgage loan origination fees and service charges.

MetroCity Bankshares, Inc. reported a net income of $17.3 million for the third quarter of 2025, reflecting a 2.6% increase from the previous quarter and a 3.4% increase year-over-year. The growth in net income was attributed to a rise in noninterest income and a decrease in provisions for credit losses. The company also noted an increase in total loans, which rose by $71.6 million to $3.20 billion, indicating strong lending activity. The annualized return on average assets improved to 1.89%, while the efficiency ratio was reported at 38.7%.

Looking ahead, MetroCity is set to complete its merger with First IC Corporation later in the fourth quarter of 2025, which is anticipated to enhance its market position. Management highlighted that the merger is subject to customary closing conditions but expressed optimism about the potential benefits. The company continues to focus on increasing its noninterest income, which saw a notable rise due to higher mortgage loan origination fees and service charges, despite some declines in gains from loan sales.

MetroCity Bankshares, Inc. (MCBS) has experienced a notable decline in its stock price, with a 16.11% drop over the past year, reflecting broader market challenges and investor sentiment. Over the last month alone, the stock has fallen by 9.90%, indicating a potential loss of confidence among shareholders. Despite these price fluctuations, the company’s fundamentals present a more stable picture; with a price-to-earnings ratio of 10.01, MCBS appears to be trading at a reasonable valuation compared to its peers. The two-year compound annual growth rate (CAGR) for earnings per share stands at an impressive 8.30%, suggesting that the company has been able to grow its profitability even amidst market volatility. However, the revenue CAGR of 9.87% and a net profit margin of 28.17% highlight the bank’s operational efficiency and ability to generate profits. On the downside, the negative free cash flow CAGR of -23.65% raises concerns about the company’s liquidity and ability to fund future growth. Additionally, a return on invested capital of 8.62% indicates that while the company is generating returns, there may be room for improvement in capital allocation. Overall, while MetroCity Bankshares faces short-term price pressures, its underlying financial metrics suggest a resilient business model that could appeal to long-term investors.

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also offers construction and development, commercial real estate, commercial and industrial, single family residential mortgage, small business administration, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It serves small to medium-sized businesses, individuals, businesses, municipalities, and other entities. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is headquartered in Doraville, Georgia.