Metrocity Bankshares, Inc. has reported its earnings for the first quarter of 2025. The net income for this period was $16.3 million, which is a slight increase from the fourth quarter of 2024 and a more significant increase from the first quarter of 2024, which stood at $16.2 million and $14.6 million, respectively. The annualized return on average assets was 1.85% for the first quarter of 2025, up from 1.82% in the previous quarter and 1.65% in the first quarter of 2024.
The company's annualized return on average equity was reported at 15.67%, slightly down from 15.84% in the fourth quarter of 2024, but up from 15.41% in the first quarter of 2024. Excluding average accumulated other comprehensive income, the return on average equity for the first quarter of 2025 was 16.18%, compared to 16.28% for the fourth quarter of 2024 and 16.27% for the first quarter of 2024.
The efficiency ratio for the first quarter of 2025 was 38.3%, improved from 40.5% in the previous quarter and 37.9% in the first quarter of 2024. The net interest margin also showed improvement, standing at 3.67% for the first quarter of 2025, up from 3.57% in the previous quarter and 3.24% in the first quarter of 2024.
Commercial real estate loans increased by $30.1 million, or 4.0%, to $792.1 million from the previous quarter. Notably, the acquisition of First IC Corporation and First IC Bank is expected to significantly impact the company's financials, with projected total assets to reach approximately $4.8 billion, total deposits of $3.7 billion, and total loans of $4.1 billion.
In terms of noninterest income, the company reported $5.5 million for the first quarter of 2025, marking an increase of $135,000, or 2.5%, from the fourth quarter of 2024. However, compared to the first quarter of 2024, noninterest income decreased by $112,000, or 2.0%.
Noninterest expense for the first quarter of 2025 totaled $13.8 million, a decrease of $527,000, or 3.7%, from the fourth quarter of 2024. However, compared to the first quarter of 2024, noninterest expense increased by $1.4 million, or 11.6%.
The company's effective tax rate for the first quarter of 2025 was 26.2%, compared to 22.1% for the fourth quarter of 2024 and 28.4% for the first quarter of 2024.
Total assets were $3.66 billion at March 31, 2025, an increase of $65.9 million, or 1.8%, from December 31, 2024. Loans held for investment were $3.13 billion at March 31, 2025, a decrease of $26.6 million, or 0.8%, compared to December 31, 2024. Total deposits were $2.74 billion at March 31, 2025, an increase of $232,000 compared to December 31, 2024.
The provision for credit losses during the first quarter of 2025 was $135,000, compared to $202,000 during the fourth quarter of 2024 and a credit provision for credit losses of $140,000 during the first quarter of 2024.
These figures show the dynamic performance of Metrocity Bankshares, Inc. and its strategic positioning in the market, especially in light of the pending acquisition of First IC Corporation and First IC Bank. Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $26.99. For the full picture, make sure to review MetroCity Bankshares's 8-K report.
