Overview

* Metrocity Q3 net income rises 2.6% from Q2, driven by higher non-interest income

* Net interest margin for Q3 decreases to 3.68% from 3.77% in Q2

* Company received regulatory approvals for merger with First IC, completion expected in Q4

Outlook

* Company expects merger with First IC to be completed in Q4 2025

* MetroCity did not provide specific financial guidance for future quarters

Result Drivers

* NON-INTEREST INCOME - Increase in noninterest income driven by higher mortgage loan origination fees and small business association (SBA) loan servicing income

* LOANS HELD FOR SALE - Significant increase in loans held for sale to provide liquidity for First IC merger

* PROVISION FOR CREDIT LOSSES - Decrease in provision for credit losses due to lower reserves on residential mortgage loans

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.67

Q3 Net $17.27

Income mln

Q3 Net $31.79

Interest mln

Income

Q3 CET1 19.93%

Ratio

Q3 Loan -$543,00

Loss 0

Provisio

n

Q3 Net 3.68%

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 $33.00, about 21.9% above its October 16 closing price of $25.77

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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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.)