MetroCity Bankshares, Inc. reported first‑quarter 2026 results that showed net income of $22.3 million, or $0.77 per diluted share, up 21.9% from $18.3 million ($0.68) in the fourth quarter of 2025 and $16.3 million ($0.63) in the first quarter of 2025. The company’s earnings beat analyst expectations, with consensus EPS of $0.72 and revenue of $50.9 million beating the $50.60 million estimate.
Revenue rose 3.5% to $50.9 million, driven by a $10.7 million increase in interest income and a $901,000 rise in non‑interest income. Net interest margin expanded to 4.08% from 3.73% in the prior quarter, while the average yield on interest‑earning assets climbed to 6.51% and the cost of average interest‑bearing liabilities fell to 3.25%. These margin gains reflect a stronger loan mix and higher loan yields, offset by modest increases in non‑interest expenses, including merger‑related costs.
On the balance‑sheet side, total assets stood at $4.7 billion as of March 31, 2026, and total deposits were $3.63 billion. The bank also announced a quarterly dividend increase to $0.29 per share, up from $0.25, payable May 8, 2026 to holders of record April 29.
Management highlighted the 21.9% year‑over‑year rise in net income as evidence of disciplined cost management and a favorable loan‑mix shift. The company’s focus on expanding its loan portfolio while maintaining a low cost of funds underpins the margin expansion and supports the outlook for continued profitability.
The results underscore MetroCity’s ability to generate higher interest income through a combination of loan growth and improved yields, while keeping deposit costs low. The modest decline in non‑interest income from mortgage gains and the increase in merger‑related expenses represent headwinds that the company is managing through cost controls. Overall, the earnings beat and margin expansion signal strong execution and a resilient business model, though the bank remains mindful of the headwinds that could affect future periods.
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