MetroCity in Georgia to buy in-state peer First IC Bank

ERIK S. LESSER/BLOOMBERG NEWS

MetroCity Bankshares in suburban Atlanta said Monday it would pay $206 million to acquire cross-town rival First IC Corp. in a bid for scale and geographic diversity.

The $3.6 billion-asset MetroCity said its cash-and-stock deal for the parent company of First IC Bank is expected to close in the fourth quarter. The banks are based in Doraville, Georgia, and both specialize in lending to Korean-American businesses. They compete in the Atlanta area but also operate across multi-state regions.

Nack Paek, MetroCity's chairman and CEO, said in a press release that the combined bank would capitalize on a larger financial base to invest in technology and services to remain competitive with larger lenders and drive long-term organic growth.

"The combined bank will have the capacity to service our customers better, offer enhanced opportunities for our employees and continue offering excellent returns to our shareholders," Paek said. "The combined balance sheet enhances our competitive position and increases the financial flexibility to continue to build the best bank possible."

The deal priced First IC at 146% of its tangible book value, which was roughly in line with the going rate for community bank acquisitions over the past year, according to S&P Global Market Intelligence data.

First IC has nearly $1.2 billion of assets, $975 million of deposits and $993 million of loans. It has 10 branches across California, Georgia, New Jersey, New York, Texas and Washington.

The merged company would have $4.8 billion of assets, $3.7 billion of deposits and $4.1 billion of loans. MetroCity has 20 branches spanning its home state, Alabama, Florida, New Jersey, New York, Texas and Virginia.

"We have been competitors and admirers of the MetroCity franchise for many years, and combining our two organizations will create a stronger banking institution," First IC Chairman Chong Chun said in the release.

MetroCity estimated it will have $14.9 million in merger-related expenses. The bank plans to trim 37% of First IC's annual noninterest expenses.

Including the cost savings, MetroCity expects the acquisition to be 26% accretive to its 2026 earnings per share. The bank projected it would need just over two years to earn back 11% dilution to its tangible book value.

Keefe, Bruyette & Woods analyst Kelly Motta called the financial expectations "attractive" and said the banks' familiarity with each other should "help to mitigate integration risks."

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The Georgia deal is the third most valuable bank acquisition announced so far in 2025.  Kalispell, Montana-based Glacier Bancorp's $245.4 million plan to buy the $1.3 billion-asset Bank of Idaho Holding Co. in Idaho Falls is No. 1 to date. The $28.2 billion-asset Glacier announced that deal in January. Glacier has more than tripled its asset base with a dozen bank acquisitions over the past decade.

Clearfield, Pennsylvania-based CNB Financial Corp.'s $214 million deal to buy in-state peer ESSA Bancorp carries the second-highest price tag so far this year. The $6.2 billion-asset CNB announced that deal in January.

MetroCity's planned acquisition is the largest deal announced in Georgia since May of last year. That's when United Bankshares in Charleston, West Virginia, agreed to pay $267 million in stock for Peachtree Corners, Georgia-based Piedmont Bancorp. That deal closed in January.