MetroCity Bankshares Q4 Net Income Rises 12.8% YoY; First IC Acquisition Drives Loan Growth
MetroCity Bankshares reported Q4 net income of $18.3 million, or $0.68 per diluted share, up 6.0% sequentially and 12.8% year over year, driven by a $5.9 million increase in net interest income. The acquisition of First IC boosted loans to $4.1 billion and deposits to $3.65 billion.
1. MetroCity Delivers Record Quarterly and Annual Net Income
MetroCity Bankshares reported fourth-quarter net income of $18.3 million, or $0.68 per diluted share, up 12.8% year-over-year from $16.2 million and 6.0% sequentially from $17.3 million. For the full year 2025, net income reached $68.7 million, or $2.64 per diluted share, a 6.5% increase from $64.5 million in 2024. These gains were driven by a $12.3 million rise in net interest income and a $2.1 million increase in noninterest income, partially offset by $9.6 million in higher noninterest expenses and $1.4 million in additional income tax expense.
2. Strong Net Interest Margin and Loan Growth
Net interest margin expanded to 3.73% in Q4 2025, up five basis points from the prior quarter and 16 basis points year-over-year, supported by a 19-basis-point decline in funding costs. Average loans held for investment increased by $384.9 million from Q3, including $370.6 million from the First IC acquisition, while excluding acquired balances loans grew 3.1%. Investment balances rose by $14.3 million sequentially. Deposit balances grew by $952.9 million, or 35.4%, driven largely by acquisition-related inflows; organic deposit growth was 2.7%.
3. Profitability and Efficiency Metrics Continue Uptrend
Annualized return on average assets in Q4 was 1.80%, down slightly from 1.82% in Q4 2024 but stable sequentially, while annualized return on average equity was 15.45%, compared with 15.84% a year ago. Adjusted return on average shareholders’ equity, which excludes accumulated other comprehensive income and merger-related adjustments, improved to 17.83% from 16.28% a year earlier and 16.10% in Q3. The efficiency ratio was 46.7%, compared with 40.5% in Q4 2024 and 38.7% in Q3, reflecting increased investments in operations to support franchise growth.
4. Integration of First IC Acquisition Bolsters Franchise
On December 1, 2025, MetroCity completed its acquisition of First IC Corporation and First IC Bank, adding $1.1 billion in loans and $952.9 million in deposits. The deal boosted average earning assets by $384.9 million and interest-earning liabilities by $297.0 million in Q4. CEO Nack Paek highlighted that the acquisition strengthens competitive positioning and financial flexibility, creating scale in key markets and laying the groundwork for further expansion of commercial and consumer lending platforms.