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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.65

Q2 Net $16.83

Income mln

Q2 Net $32.18

Interest mln

Income

Q2 CET1 19.9%

Ratio

Q2 Loan $129,000

Loss

Provisio

n

Q2 Net 3.8%

Interest

Margin

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 ( MCBS ) 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:

(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.)