MetroCity Bankshares, Inc. (MCBS) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MCBS

MetroCity Bankshares, Inc.'s recent performance was driven by strong earnings growth, with net income of $16.8 million, or $0.65 per diluted share, in Q2 2025. The company's strategic combination with First IC Corporation received regulatory and shareholder approval, expanding its presence. A quarterly cash dividend of $0.25 per share was declared, showcasing the company's commitment to shareholder value. The bank's solid financials and growth prospects are further highlighted by its inclusion in a list of upcoming dividend increases, boasting a 7.1% dividend increase and a 19-year streak.

1.c. Company Highlights

Last Price	26.82
Change Percentage	-0.85%
Open	27.19
Previous Close	27.05
Market Cap ( Millions)	683
Volume	20553
Year High	35.45
Year Low	24.24
M A 50	26.42
M A 200	27.89

FCF Yield	4.87%
Dividend Yield	3.58%
ROE	15.39%
Debt / Equity	97.04%
Net Debt / EBIDTA	230.52%
Price To Book	1.55
Price Earnings Ratio	10.36
Price To FCF	20.54
Price To sales	12.12
EV / EBITDA	9.51

2. Transcript Summary

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3. NewsRoom

MetroCity Bankshares, Inc. Completes Acquisition of First IC Corporation

Dec -02

Source: prnewswire.com

Creative Planning Buys New Position in MetroCity Bankshares, Inc. $MCBS

Dec -02

Source: defenseworld.net

MetroCity Bankshares, Inc. and First IC Corporation Announce Expected Closing Date

Nov -14

Source: prnewswire.com

Head-To-Head Survey: First Bancorp (NASDAQ:FBNC) versus MetroCity Bankshares (NASDAQ:MCBS)

Oct -20

Source: defenseworld.net

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2025

Oct -17

Source: prnewswire.com

MetroCity Bankshares, Inc. Declares Quarterly Cash Dividend

Oct -15

Source: prnewswire.com

6 Upcoming Dividend Increases

Jul -24

Source: seekingalpha.com

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2025

Jul -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11%

MetroCity Bankshares, Inc.'s 11% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic acquisitions. Additionally, digital transformation initiatives, improved operational efficiency, and a favorable interest rate environment have contributed to the growth. Furthermore, the bank's focus on customer experience, diversified revenue streams, and effective risk management have also supported this growth.

7. Detailed Products

Consumer Banking

Personal banking services for individuals, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Financial solutions for businesses, including cash management, commercial lending, and treasury management services.

Wealth Management

Investment and wealth management services, including brokerage, investment advisory, and trust services.

Mortgage Banking

Residential and commercial mortgage lending services, including purchase and refinance loans.

Treasury Management

Cash management and treasury services for businesses, including account management and payment processing.

Credit Cards

Personal and business credit card services, including rewards programs and credit-building tools.

Insurance Services

Insurance products and services, including life insurance, home insurance, and auto insurance.

8. MetroCity Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for MetroCity Bankshares, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching banks.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the bank's strong relationships with its suppliers and the lack of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the regulatory barriers to entry and the capital requirements for starting a new bank.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the banking industry and the presence of multiple players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	46.14%
Debt Cost	4.49%
Equity Weight	53.86%
Equity Cost	6.69%
WACC	5.68%
Leverage	85.66%

11. Quality Control: MetroCity Bankshares, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Republic Bancorp

A-Score: 7.0/10

Value: 6.4

Growth: 7.0

Quality: 7.9

Yield: 6.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Bank7

A-Score: 6.8/10

Value: 6.7

Growth: 8.7

Quality: 6.2

Yield: 5.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

1st Source

A-Score: 6.4/10

Value: 6.6

Growth: 6.3

Quality: 7.1

Yield: 5.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

NBH

A-Score: 6.1/10

Value: 6.6

Growth: 6.9

Quality: 6.1

Yield: 6.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

MetroCity Bankshares

A-Score: 5.9/10

Value: 4.5

Growth: 7.1

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

Evans Bancorp

A-Score: 5.0/10

Value: 4.7

Growth: 1.9

Quality: 6.0

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.24%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.68%

MetroCity Bankshares, Inc. - US59165J1051

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MCBS

1.c. Company Highlights

Higher Growth

Strong Momentum

Average Quality

Earnings Beats

Revenues Beats

Fairly Valued

Average Growth

Stable Momentum

Revenues Miss

Better Quality

Average Yield

Medium Volatility

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11%

7. Detailed Products

Consumer Banking

Commercial Banking

Wealth Management

Mortgage Banking

Treasury Management

Credit Cards

Insurance Services

8. MetroCity Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: MetroCity Bankshares, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.82$

Current Price

26.82$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA