Metrocity Bankshares, Inc. has reported its earnings for the second quarter of 2025, revealing a net income of $16.8 million, or $0.65 per diluted share. This marks an increase from the first quarter of 2025, which reported a net income of $16.3 million, or $0.63 per diluted share. However, compared to the second quarter of 2024, there was a slight decrease in net income from $16.9 million, or $0.66 per diluted share.
The highlights for the second quarter of 2025 include an annualized return on average assets of 1.87%, up from 1.85% in the first quarter of 2025 but down from 1.89% in the second quarter of 2024. The annualized return on average equity was 15.74%, compared to 15.67% for the first quarter of 2025 and 17.10% for the second quarter of 2024. The efficiency ratio was 37.2%, an improvement from 38.3% in the first quarter of 2025 but slightly higher compared to 35.9% in the second quarter of 2024. Additionally, the net interest margin increased to 3.77%, up from 3.67% in the first quarter of 2025 and 3.66% in the second quarter of 2024.
Looking at the year-to-date highlights for 2025, the return on average assets increased to 1.86%, up from 1.77% for the same period in 2024. The return on average equity was 15.71%, a decrease from 16.27% for the same period in 2024. The efficiency ratio for the six months ended June 30, 2025, was 37.8%, compared to 36.8% for the same period in 2024. The net interest margin increased by 27 basis points to 3.72% for the six months ended June 30, 2025, compared to 3.45% for the same period in 2024.
Metrocity also announced the acquisition of First IC Corporation and First IC Bank on July 15, 2025. The company reported an increase in net interest income of $1.6 million and noninterest income of $277,000 for the second quarter of 2025 compared to the first quarter of 2025. However, noninterest expense also increased by $314,000. For the six months ended June 30, 2025, the net income increased to $33.1 million, compared to $31.6 million for the same period in 2024.
Interest income for the second quarter of 2025 increased by $1.5 million from the previous quarter, while interest expense decreased by $94,000. The net interest margin for the second quarter of 2025 was 3.77%, an increase of ten basis points from the previous quarter and 11 basis points from the same period in 2024.
Noninterest income for the second quarter of 2025 increased by $277,000 from the first quarter of 2025 and $174,000 from the second quarter of 2024, primarily due to higher gains on sale and servicing income from residential mortgage loans and mortgage origination fees.
Noninterest expense for the second quarter of 2025 increased by $314,000 from the first quarter of 2025 and $1.1 million from the second quarter of 2024, primarily due to higher loan-related expenses, stock-based compensation expenses, security expenses, and First IC merger-related expenses.
The company's effective tax rate for the second quarter of 2025 was 28.9%, compared to 26.2% for the first quarter of 2025 and 27.5% for the second quarter of 2024.
In terms of the balance sheet, total assets were $3.62 billion at June 30, 2025, a decrease of $44.0 million from March 31, 2025, and an increase of $318,000 from June 30, 2024. Loans held for investment were $3.12 billion at June 30, 2025, a decrease of $11.0 million from March 31, 2025, and an increase of $31.0 million from June 30, 2024. Total deposits were $2.69 billion at June 30, 2025, a decrease of $47.5 million from March 31, 2025, and a decrease of $56.4 million from June 30, 2024.
These figures illustrate the financial performance and changes in key metrics for Metrocity Bankshares, Inc. in the second quarter of 2025, providing valuable insights for investors and stakeholders. Today the company's shares have moved 0.02% to a price of $29.325. If you want to know more, read the company's complete 8-K report here.
