MetroCity Bankshares (MCBS) AI Stock Analysis

• Market Cap: $825.93M
• Dividend Yield: 3.36%
• Average Volume (3M): 36.91K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.96
• Revenue Growth: -0.23%
• EPS Growth: 10.95%
• Country: US
• Employees: 240
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 28,818,281
• 10 Day Avg. Volume: 42,724
• 30 Day Avg. Volume: 36,907
• PEG Ratio: 0.51
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 3.45
• P/FCF Ratio: 12.99
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.98
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 9.95
• 1Y Price Target: $31.00
• Price Target Upside: 8.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $30.00 ▲(5.08% Upside)

MetroCity Bankshares' overall score is driven by strong corporate events and solid financial performance. The company's strategic acquisition and share repurchase program bolster its market position and shareholder value. Technical indicators support a positive outlook, while valuation metrics suggest reasonable pricing.

Positive Factors

Strategic Acquisition

The acquisition of First IC Corporation enhances MetroCity's competitive position by increasing total assets and expanding its branch network, which can lead to improved market presence and operational scale.

Share Repurchase Program

The share repurchase program reflects MetroCity's commitment to enhancing shareholder value, providing flexibility to manage capital efficiently and potentially increasing the stock's attractiveness to investors.

Strong Profitability Margins

Strong profitability margins indicate efficient operations and effective cost management, which can sustain long-term financial health and provide a buffer against revenue fluctuations.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in expanding market share or product adoption, potentially impacting future earnings and long-term growth prospects.

Revenue Growth Challenges

Challenges in revenue growth may indicate market saturation or increased competition, which could hinder the company's ability to scale and sustain its market position.

Moderate Equity Ratio

A moderate equity ratio indicates a reliance on debt, which can increase financial risk and limit flexibility in downturns, potentially impacting long-term stability.

MetroCity Bankshares Business Overview & Revenue Model

Company Description

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also offers construction and development, commercial real estate, commercial and industrial, single family residential mortgage, small business administration, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It serves small to medium-sized businesses, individuals, businesses, municipalities, and other entities. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is headquartered in Doraville, Georgia.

How the Company Makes Money

MetroCity Bankshares generates revenue primarily through interest income earned on loans and mortgages issued to customers. The bank charges interest on various loan products, including personal loans, business loans, and home mortgages, which constitutes a significant portion of its earnings. Additionally, MCBS earns non-interest income through service fees associated with checking and savings accounts, transaction fees, and other ancillary services provided to customers. The bank may also engage in investment activities, generating earnings from securities and other financial instruments. Significant partnerships with local businesses and community organizations further enhance its customer base and contribute to its overall profitability.

MetroCity Bankshares Financial Statement Overview

Summary

MetroCity Bankshares demonstrates solid financial health with strong profitability and cash flow metrics. While revenue growth has faced challenges, the company maintains efficient operations and a stable balance sheet.

Income Statement

MetroCity Bankshares shows a mixed performance in its income statement. The TTM data indicates a significant decline in revenue growth rate, which is concerning. However, the company maintains strong profitability margins, with a high EBIT and EBITDA margin, suggesting efficient operations. The net profit margin is exceptionally high in the TTM period, indicating strong bottom-line performance despite revenue challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, which has improved over time. The return on equity remains strong, indicating effective use of shareholder funds. However, the equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is strong, indicating good cash conversion. The free cash flow to net income ratio is also healthy, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.33M	234.43M	209.38M	162.29M	139.21M	102.96M
Gross Profit	145.94M	139.15M	118.05M	137.44M	127.71M	88.00M
EBITDA	93.85M	90.27M	74.66M	95.09M	85.43M	51.69M
Net Income	66.63M	64.50M	51.61M	62.60M	61.70M	36.39M
Balance Sheet
Total Assets	3.63B	3.59B	3.50B	3.43B	3.11B	1.90B
Cash, Cash Equivalents and Short-Term Investments	216.41M	253.73M	160.65M	170.21M	458.26M	158.86M
Total Debt	432.70M	382.94M	335.46M	384.28M	510.32M	121.39M
Total Liabilities	3.18B	3.17B	3.12B	3.08B	2.82B	1.65B
Stockholders Equity	445.89M	421.35M	381.52M	349.42M	290.22M	244.83M
Cash Flow
Free Cash Flow	61.25M	62.22M	77.17M	132.34M	65.05M	142.02M
Operating Cash Flow	62.11M	63.50M	82.10M	134.69M	65.43M	142.56M
Investing Cash Flow	-121.50M	5.87M	-110.27M	-651.82M	-930.55M	-477.86M
Financing Cash Flow	-4.67M	35.70M	-6.51M	255.27M	1.16B	209.58M

MetroCity Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCBS, the sentiment is Positive. The current price of 28.55 is above the 20-day moving average (MA) of 26.94, above the 50-day MA of 26.40, and above the 200-day MA of 27.44, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 90.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCBS.

MetroCity Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRST	78 Outperform	$787.26M	14.25	8.35%	3.46%	5.75%	20.52%
MBWM	77 Outperform	$809.59M	9.44	13.79%	3.01%	5.64%	6.24%
HAFC	77 Outperform	$860.92M	11.98	9.49%	3.76%	3.34%	15.52%
HTB	76 Outperform	$799.29M	12.69	10.88%	1.07%	0.21%	14.54%
CCBG	76 Outperform	$764.85M	12.55	11.90%	2.23%	9.43%	17.64%
MCBS	74 Outperform	$825.93M	11.07	15.62%	3.36%	-0.23%	10.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

MetroCity Bankshares Corporate Events

MetroCity Bankshares Completes Acquisition of First IC Corporation

On December 1, 2025, MetroCity Bankshares, Inc. completed its acquisition of First IC Corporation, merging First IC Bank into Metro City Bank. This strategic move enhances MetroCity’s competitive position, increasing its total assets to approximately $4.8 billion and expanding its branch network across eight states. The merger, valued at approximately $110.6 million in cash and 3,384,381 shares of MCBS common stock, aims to create a stronger banking entity for its customers and communities.

MetroCity Bankshares Announces Merger Completion Date

MetroCity Bankshares, Inc. and First IC Corporation have announced the expected completion of their merger on December 1, 2025, following the receipt of all necessary regulatory approvals and shareholder consent. This merger will see First IC Corporation merge into MetroCity Bankshares, with Metro City Bank absorbing First IC Bank, potentially enhancing MetroCity’s market presence and operational scale.

MetroCity Bankshares Declares Quarterly Cash Dividend

On October 15, 2025, MetroCity Bankshares, Inc. announced a quarterly cash dividend of $0.25 per share on its common stock, payable on November 7, 2025, to shareholders of record as of October 29, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to investors seeking regular income, potentially impacting its market positioning positively.

MetroCity Bankshares Announces Share Repurchase Program

On September 17, 2025, MetroCity Bankshares, Inc. announced the continuation of its share repurchase program, allowing the company to buy back up to 923,976 shares of its common stock. This program, beginning October 1, 2025, and ending September 30, 2026, aims to enhance shareholder value and will comply with SEC rules, including Rule 10b-18. The repurchases may occur in the open market or through private transactions, with the flexibility to modify, suspend, or discontinue the program as needed.