MetroCity Bankshares Q2 profit rises on First IC deal

Overview

• US regional bank's Q2 net income and EPS rose yr/yr, reflecting First IC acquisition impact

• Net interest margin for Q2 rose to 4.11% from 3.77% a year earlier

• Noninterest expense increased yr/yr due to higher costs from First IC acquisition

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• FIRST IC ACQUISITION - Year-on-year growth in net income and net interest income driven by First IC acquisition in Q4 2025

• LOWER SBA SERVICING INCOME - Sequential decline in net income mainly due to lower SBA servicing income and higher tax expense

• LOWER NONINTEREST EXPENSE - Noninterest expense fell from Q1 due to reduced merger-related costs and lower salaries and benefits

Company press release: ID:nPn6S59Za

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Metrocity Bankshares Inc is $38.00, about 5.3% above its July 23 closing price of $36.10

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

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• July 23 - First Mid Bancshares Q2 profit beats on Two Rivers Bank deal boost

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)