Metrocity Bank (CEO Kim Hwa-saeng) has posted a record-breaking performance in the third quarter (July–September), following strong results in the second quarter.
According to recent financial reports released by its holding company, Metrocity Bankshares, the bank’s Q3 net income reached $24.3 million, marking a 9.8% increase from $22.1 million in the second quarter. This is an increase of over $7 million, or more than 40%, compared to $17.3 million in the same period last year. Furthermore, the cumulative net income for the first nine months of 2026 stood at $68.7 million, up 36% ($18.4 million) from $50.4 million during the same period last year. The report attributed the profit growth to the successful finalization of the Jeil IC Bank acquisition.
Financial Health and Asset Growth
The Return on Average Assets (ROA) also saw a noticeable increase, rising to 2.12%, compared to 1.96% in the previous quarter and 1.89% in the third quarter of last year. The ROA for the nine-month period ending in September was 1.99%, surpassing the 1.87% recorded in the same period of the previous year.
However, the net interest margin for the third quarter stood at 4.07%, a slight decline from 4.11% in the previous quarter, though it showed an increase compared to 3.68% in the third quarter of last year.
As of the end of last month, total assets reached $4.6 billion, representing a 26.7% increase from $3.603 billion in the same period last year. Total deposits increased to $3.56 billion, up over 2% from $3.49 billion at the end of June, and surged more than 32% compared to $2.69 billion in September of last year. Total loans for the third quarter remained steady at $3.98 billion, maintaining a similar level to the second quarter.
Strategic Goals and Future Outlook
In a phone interview on the 27th, CEO Kim Hwa-saeng stated, "We are now in our third quarter since the merger. We have recorded an average after-tax net profit of $22.9 million every quarter, which is a result of everyone at the bank doing their absolute best." He also noted that Metrocity achieved the highest SBA loan growth rate among Korean-American banks nationwide for the 2026 fiscal year, adding, "This was possible because our scale expanded following the merger. We expect continued growth moving forward." He further evaluated, "We have built the foundation to achieve $5 billion in total assets and $100 million in net profit. The two banks have successfully become one."
Wall Street has also expressed positive evaluations regarding the bank’s profit-generating capabilities. Following the Q3 earnings release, investment analysis firm Simply Wall St released an analysis stating that "Metrocity Bank’s stock is undervalued by 35%."
The publication analyzed that the stock price of Metrocity Bankshares (MCBS), listed on NASDAQ, "has shown strong momentum with a 94.5% increase over the past three years. Nevertheless, when evaluated based on metrics such as the Return on Equity (ROE) generated by the bank, the current stock price may be about 35% lower than its fair value."
From January through September, Metrocity Bank’s average ROE reached 16.54%, surpassing the 15.70% recorded during the same period last year. The bank’s stock traded around the $3 range.
The publication highlighted the high return on equity, noting that strong profitability combined with the ability to reinvest earnings generally leads to long-term growth in both equity and enterprise value. However, it also pointed out that a $4 million tax credit significantly impacted the Q3 net income growth, meaning that tax expense reductions were a primary driver of the profit increase, and the 40% year-over-year earnings growth does not necessarily imply an identical increase in core operating income.
Meanwhile, Metrocity’s Savannah branch is scheduled to begin operations with a soft opening in early December. According to CEO Kim, Branch Manager Christy Kim will lead the Savannah branch, and staff members are scheduled to relocate around Thanksgiving.
