MetroCity Bankshares' Q2 net interest income rises

Overview

• Metrocity's Q2 net income rises 3.2% from Q1, driven by higher interest income

• Net interest margin improves to 3.77% from 3.67% in Q1

• Company receives regulatory approval for merger with First IC Corporation

Outlook

• Company expects merger with First IC to complete in Q4 2025

Result Drivers

• INTEREST INCOME - Increase in net interest income driven by higher average interest-earning cash and fed funds sold balance and increased loan yield

• NONINTEREST INCOME - Gains from residential mortgage loans and SBA loan sales contributed to higher noninterest income

• MERGER EXPENSES - Noninterest expenses increased due to First IC merger-related costs and higher employee benefits

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 $34.00, about 13.8% above its July 17 closing price of $29.32

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn8ddFSZa