Doraville, Georgia-based MetroCity Bank will acquire First IC Bank, which is headquartered in the same Atlanta suburb, in a roughly $206 million deal set to close in the fourth quarter, the banks announced Monday.
Acquiring First IC will give MetroCity 10 added branches and two loan production offices in Georgia, California, New York, New Jersey, Texas and Washington. First IC counts $1.2 billion in assets, the bank said. By comparison, MetroCity counts $3.6 billion, with a 20-branch footprint that encompasses seven states. Both banks specialize in lending to Korean-American businesses.
“We have been competitors and admirers of the MetroCity franchise for many years, and combining our two organizations will create a stronger banking institution for our customers, employees and communities,” Chong Chun, chair of First IC Corp., the bank’s parent company. “I am proud of our strong team, the bank and legacy we have built together, and the positive impact we've made."
Under the deal, First IC shareholders will receive 3,384,588 shares of MetroCity common stock and $111,965,213 in cash. MetroCity is buying the First IC stock at an implied price of $22.71 per share – roughly 146% of its tangible book value. The deal’s $206 million value is based on MetroCity’s closing price of $27.78 per share Friday.
MetroCity estimated it will have $14.9 million in expenses connected to the transaction, American Banker reported. The bank plans to cut 37% of First IC’s annual noninterest expenses.
"We too have long competed with and admired the First IC franchise and are excited about combining our two organizations," Nack Paek, MetroCity's CEO, said Monday. "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. The combined balance sheet enhances our competitive position and increases the financial flexibility to continue to build the best bank possible."
The combined entity is expected to have $4.8 billion in assets, $3.7 billion in deposits and $4.1 billion in loans. First IC, for reference, counted $975 million in deposits and $993 million in loans as of Dec. 31.
MetroCity expects the deal to be 26% accretive to its 2026 earnings per share. The bank said it would take slightly less than 2½ years to earn back its tangible book value.
