MetroCity Bankshares Navigates Post-Merger Integration Following Strong Annual Results

MetroCity Bankshares has reported a significant increase in profit for its 2025 fiscal year. The financial institution is now navigating a critical transition, focusing intensely on the technical and organizational integration of its recent acquisition, First IC Corporation.

For the full 2025 fiscal year, the bank posted a net income of $68.7 million, an improvement over the prior year's $64.5 million. This translated to earnings per share of $2.64. The final quarter of the year saw net profit climb to $18.3 million, or $0.68 per diluted share, compared to $16.2 million in the same period a year earlier.

Key profitability metrics remained robust. The return on equity for Q4 stood at 15.45%, while the efficiency ratio was a healthy 46.7%, indicating effective cost management relative to revenue. Furthermore, the net interest margin expanded to 3.73%.

The company's board declared a quarterly cash dividend of $0.25 per share, payable on February 13.

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Balance Sheet Growth and Merger Impact

A dramatic expansion of the loan portfolio was a hallmark of the year-end report, with total loans reaching $4.1 billion. This represents a surge of more than 36%, primarily attributable to the inclusion of First IC's assets. On an organic basis, excluding the merger, loan growth was still a positive 3.1%. A similar trend was observed in deposits, which grew by 2.7% when adjusted for the acquisition.

The Crucial Integration Phase

The bank's immediate focus is a pivotal system conversion scheduled for February 6-9, a final technical step in merging First IC's operations. The success of this integration phase is central to MetroCity's ambitious 2026 targets.

Management has set a goal of achieving 26% earnings per share (EPS) growth for 2026, a projection heavily reliant on realizing planned cost synergies from the merger. Specifically, the bank aims to reduce First IC's annual operating expenses by approximately 37%. The one-time costs associated with the merger integration are estimated at $14.9 million.

The extent to which these synergy targets are met will determine how quickly the financial benefits of the merger materialize on the balance sheet. Investors will gain clearer insight into the progress of the combined entity when MetroCity Bankshares releases its next quarterly report, currently scheduled for Friday, April 17, 2026.