What are the key risks to MCBS's EPS outlook for Q1 2025?

The key risks to MetroCity Bankshares' (MCBS) EPS outlook for Q1 2025 can be analyzed as follows:

1. **Interest Rate Risks**: The Federal Reserve's monetary policy actions, especially the trajectory of interest rates, present a significant risk to banks like MCBS. Rising interest rates can enhance net interest margins but also increase borrowing costs for customers, potentially affecting loan demand and credit quality.
2. **Economic Conditions**: A slowdown in the broader economy or regional economic downturns could lead to decreased loan demand, higher loan delinquencies, and increased provision for credit losses, all of which would negatively impact EPS.
3. **Credit Risks**: The bank's exposure to credit risks, particularly in commercial real estate and industrial portfolios, could lead to increased loan losses if borrowers experience financial distress.
4. **Operational Risks**: Cybersecurity threats could lead to increased expenses related to data security and potential losses due to cyber-attacks, directly impacting the bottom line.
5. **Regulatory and Compliance Risks**: Changes in regulatory requirements or enforcement actions could result in additional costs and operational burdens, affecting the bank's profitability.
6. **Merger and Integration Risks**: The recently announced merger with First IC Corporation presents integration risks, including the potential for disruption to MCBS's operations, customer relationships, and technology systems, which could impact short-term profitability while long-term synergies are being realized.

In summary, MCBS's EPS outlook for Q1 2025 is subject to various risks, including interest rate and economic conditions, credit and operational risks, regulatory challenges, and merger-related disruptions. Managing these risks effectively will be crucial for the bank to achieve its earnings targets.