METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2024

PR Newswire · 10/18 14:04

ATLANTA, Oct. 18, 2024 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.7 million, or $0.65 per diluted share, for the third quarter of 2024, compared to $16.9 million, or $0.66 per diluted share, for the second quarter of 2024, and $11.4 million, or $0.45 per diluted share, for the third quarter of 2023. For the nine months ended September 30, 2024, the Company reported net income of $48.3 million, or $1.89 per diluted share, compared to $40.3 million, or $1.58 per diluted share, for the same period in 2023.

Third Quarter 2024 Highlights:

  • Annualized return on average assets was 1.86%, compared to 1.89% for the second quarter of 2024 and 1.30% for the third quarter of 2023.
  • Annualized return on average equity was 16.26%, compared to 17.10% for the second quarter of 2024 and 12.14% for the third quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was 17.25% for the third quarter of 2024, compared to 18.26% for the second quarter of 2024 and 13.04% for the third quarter of 2023.
  • Efficiency ratio of 37.0%, compared to 35.9% for the second quarter of 2024 and 43.0% for the third quarter of 2023.
  • Net interest margin was 3.58% compared to 3.66% for the previous quarter.

Year-to-Date 2024 Highlights:

  • Return on average assets was 1.80% for the nine months ended September 30, 2024, compared to 1.57% for the same period in 2023.
  • Return on average equity was 16.27% for the nine months ended September 30, 2024, compared to 14.96% for the same period in 2023. Excluding average accumulated other comprehensive income, our return on average equity was 17.27% for the nine months ended September 30, 2024, compared to 15.81% for the same period in 2023.
  • Efficiency ratio of 36.9% for the nine months ended September 30, 2024, compared to 38.1% for the same period in 2023.
  • Net interest margin increased by 39 basis points to 3.50% from 3.11% for the same period in 2023.

Results of Operations

Net Income

Net income was $16.7 million for the third quarter of 2024, a decrease of $236,000, or 1.4%, from $16.9 million for the second quarter of 2024. This decrease was primarily due to an increase in provision for credit losses of $710,000, a decrease in net interest income of $423,000 and an increase in noninterest expense of $628,000, offset by an increase in noninterest income of $1.1 million and a decrease in income tax expense of $469,000. Net income increased by $5.3 million, or 46.1%, in the third quarter of 2024 compared to net income of $11.4 million for the third quarter of 2023. This increase was due to an increase in net interest income of $6.1 million and an increase in noninterest income of $4.0 million, offset by an increase in noninterest expense of $2.1 million, an increase in income tax expense of $1.7 million and an increase in provision for credit losses of $963,000.

Net income was $48.3 million for the nine months ended September 30, 2024, an increase of $8.0 million, or 19.9%, from $40.3 million for the nine months ended September 30, 2023. This increase was due to an increase in net interest income of $12.7 million and an increase in noninterest income of $4.3 million, offset by an increase in noninterest expense of $5.2 million, an increase in income tax expense of $2.6 million and an increase in in provision for credit losses of $1.1 million.

Net Interest Income and Net Interest Margin

Interest income totaled $53.8 million for the third quarter of 2024, a decrease of $275,000, or 0.5%, from the previous quarter, primarily due to a $29.2 million decrease in average loans balances and a three basis points decrease in the loan yield, as well as an 81 basis points decrease in the total investment yield. As compared to the third quarter of 2023, interest income for the third quarter of 2024 increased by $5.1 million, or 10.5%, primarily due to a 45 basis points increase in the loan yield coupled with a $86.2 million increase in average loan balances, as well as a 38 basis points increase in the total investment yield and a $19.7 million increase in the total investment average balances.

Interest expense totaled $23.5 million for the third quarter of 2024, an increase of $148,000, or 0.6 %, from the previous quarter, primarily due to an 18 basis points increase in borrowing costs and a $6.4 million increase in the average borrowing balance, offset by a two basis points decrease in deposit costs coupled with a $24.6 million decrease in average deposit balances. As compared to the third quarter of 2023, interest expense for the third quarter of 2024 decreased by $1.1 million or 4.1%, primarily due to a 44 basis points decrease in deposit costs, offset by a 73 basis points increase in borrowing costs and a $50.7 million increase in the average borrowing balance. The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 4.83%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the third quarter of 2024, we recorded a credit to interest expense of $6.4 million from the benefit received on these interest rate derivatives compared to a benefit of $6.5 million and $1.3 million recorded during the second quarter of 2024 and the third quarter of 2023, respectively.

The net interest margin for the third quarter of 2024 was 3.58% compared to 3.66% for the previous quarter, a decrease of eight basis points. The yield on average interest-earning assets for the third quarter of 2024 decreased by nine basis points to 6.36% from 6.45% for the previous quarter, while the cost of average interest-bearing liabilities for the third quarter of 2024 increased by one basis point to 3.69% from 3.68% for the previous quarter. Average earning assets decreased by $4.5 million from the previous quarter, due to a decrease in average loans of $29.2 million, offset by an increase in average total investments of $24.7 million. Average interest-bearing liabilities decreased by $18.1 million from the previous quarter as average interest-bearing deposits decreased by $24.6 million while average borrowings increased by $6.4 million.

As compared to the same period in 2023, the net interest margin for the third quarter of 2024 increased by 64 basis points to 3.58% from 2.94%, primarily due to a 44 basis points increase in the yield on average interest-earning assets of $3.37 billion and a 28 basis points decrease in the cost of average interest-bearing liabilities of $2.54 billion. Average earning assets for the third quarter of 2024 increased by $105.9 million from the third quarter of 2023, due to a $86.2 million increase in average loans and a $19.7 million increase in average total investments. Average interest-bearing liabilities for the third quarter of 2024 increased by $82.4 million from the third quarter of 2023, driven by increases in average borrowings of $50.7 million and average interest-bearing deposits of $31.8 million.  

Noninterest Income

Noninterest income for the third quarter of 2024 was $6.6 million, an increase of $1.1 million, or 19.0%, from the second quarter of 2024, primarily due to higher gains on sale and servicing income from Small Business Administration ("SBA") loans, higher mortgage loan fees from higher volume and higher other income from unrealized gains recognized on our equity securities, offset by lower gains on sale and servicing income from mortgage loans. SBA loan sales totaled $28.9 million (sales premium of 6.67%) during the third quarter of 2024 compared to no SBA loans sold during the second quarter of 2024. Mortgage loan originations totaled $122.4 million during the third quarter 2024 compared to $94.1 million during the second quarter of 2024. Mortgage loan sales totaled $54.2 million (average sales premium of 1.03%) during the third quarter of 2024 compared to $111.4 million (average sales premium of 1.06%) during the second quarter of 2024. During the third quarter of 2024, we recorded a $202,000 fair value adjustment gain on our SBA servicing asset compared to a fair value adjustment charge of $503,000 during the second quarter of 2024. We also recorded a $252,000 fair value impairment charge on our mortgage servicing asset during the third quarter of 2024 compared to no impairment recorded during the second quarter of 2024.

Compared to the same period in 2023, noninterest income for the third quarter of 2024 increased by $4.0 million, or 149.0%, primarily due to higher gains on sale and servicing income from mortgage and SBA loans, higher mortgage loan fees from higher volume and higher other income from higher bank owned life insurance income and unrealized gains recognized on our equity securities. During the third quarter of 2023, we recorded a $909,000 fair value adjustment charge on our SBA servicing asset.

Noninterest income for the nine months ended September 30, 2024 totaled $17.7 million, an increase of $4.3 million, or 31.5%, from the nine months ended September 30, 2023, primarily due to higher mortgage loan fees from higher volume, as well as higher gains on sale and servicing income from mortgage loans, offset by decreases in gains on sale and servicing income of SBA loans.

Noninterest Expense

Noninterest expense for the third quarter of 2024 totaled $13.7 million, an increase of $628,000, or 4.8%, from $13.0 million for the second quarter of 2024. This increase was primarily attributable to higher commissions from higher loan volume, as well as higher stock based compensation  and other real estate owned expenses, partially offset by lower FDIC insurance premiums, data processing expense, and security expense. Compared to the third quarter of 2023, noninterest expense during the third quarter of 2024 increased by $2.1 million, or 18.4%, primarily due to higher salary and employee benefits, occupancy expense, security expense and other real estate owned related expenses, offset by lower FDIC insurance premiums and professional fees.

Noninterest expense for the nine months ended September 30, 2024 totaled $39.1 million, an increase of $5.2 million, or 15.5%, from $33.8 million for the nine months ended September 30, 2023. This increase was primarily attributable to increases in salaries and employee benefits including higher commissions from higher loan volume, employee insurance and stock based compensation, as well as higher expenses related to depreciation, rent, data processing, security, other real estate owned and FDIC insurance premiums. These expense increases were partially offset by lower loan related expenses and legal fees.

The Company's efficiency ratio was 37.0% for the third quarter of 2024 compared to 35.9% and 43.0% for the second quarter of 2024 and third quarter of 2023, respectively. For the nine months ended September 30, 2024, the efficiency ratio was 36.9 % compared to 38.1% for the same period in 2023.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2024 was 26.3%, compared to 27.5% for the second quarter of 2024 and 27.0% for the third quarter of 2023. The Company's effective tax rate for the nine months ended September 30, 2024 was 27.4% compared to 27.9% for the same period in 2023.

Balance Sheet

Total Assets

Total assets were $3.57 billion at September 30, 2024, a decrease of $46.2 million, or 1.3%, from $3.62 billion at June 30, 2024, and an increase of $58.2 million, or 1.7%, from $3.51 billion at September 30, 2023. The $46.2 million decrease in total assets at September 30, 2024 compared to June 30, 2024 was primarily due to decreases in cash and due from banks of $46.3 million, interest rate derivatives of $17.3 million and loans held for investment of $2.7 million, partially offset by an increase in federal funds sold of $9.6 million, other assets of $5.1 million and loans held for sale of $4.6 million. The $58.2 million increase in total assets at September 30, 2024 compared to September 30, 2023 was primarily due to increases in loans held for investment of $57.9 million, federal funds sold of $9.5 million, other assets of $7.5 million and loans held for sale of $4.6 million, partially offset by a decrease in interest rate derivatives of $27.6 million.   

Our investment securities portfolio made up only 0.81% of our total assets at September 30, 2024 compared to 0.78% and 0.79% at June 30, 2024 and September 30, 2023, respectively.

Loans

Loans held for investment were $3.09 billion at September 30, 2024, a decrease of $2.7 million, or 0.1%, compared to $3.09 billion at June 30, 2024, and an increase of $57.9 million, or 1.9%, compared to $3.03 billion at September 30, 2023. The decrease in loans at September 30, 2024 compared to June 30, 2024 was due to a $6.4 million decrease in residential mortgage loans and a $4.7 million decrease in commercial and industrial loans, offset by a $5.1 million increase in commercial real estate loans and a $3.0 million increase in construction and development loans. Loans classified as held for sale totaled $4.6 million at September 30, 2024. There were no loans classified as held for sale at June 30, 2024 or September 30, 2023.

Deposits

Total deposits were $2.72 billion at September 30, 2024, a decrease of $22.7 million, or 0.8%, compared to total deposits of $2.75 billion at June 30, 2024, and an increase of $4.5 million, or 0.2%, compared to total deposits of $2.72 billion at September 30, 2023. The decrease in total deposits at September 30, 2024 compared to June 30, 2024 was due to a $17.2 million decrease in interest-bearing demand deposits, an $11.6 million decrease in noninterest-bearing demand deposits and a $2.4 million decrease in savings accounts, offset by an  $8.0 million increase in money market accounts (includes $11.4 million increase in brokered MMAs) and a $448,000 increase in time deposits.  

Noninterest-bearing deposits were $552.5 million at September 30, 2024, compared to $564.1 million at June 30, 2024 and $559.5 million at September 30, 2023. Noninterest-bearing deposits constituted 20.3% of total deposits at September 30, 2024, compared to 20.5% at June 30, 2024 and 20.6% at September 30, 2023. Interest-bearing deposits were $2.17 billion at September 30, 2024, compared to $2.18 billion at June 30, 2024 and $2.16 billion at September 30, 2023. Interest-bearing deposits constituted 79.7 % of total deposits at September 30, 2024, compared to 79.5% at June 30, 2024 and 79.4% at September 30, 2023.

Uninsured deposits were 23.6% of total deposits at September 30, 2024, compared to 23.4% and 27.2% at June 30, 2024 and September 30, 2023, respectively. As of September 30, 2024, we had $1.28 billion of available borrowing capacity at the Federal Home Loan Bank ($701.6 million), Federal Reserve Discount Window ($532.2 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a provision for credit losses of $582,000 during the third quarter of 2024, compared to a credit to provision for credit losses of $128,000 and $381,000 recorded during the second quarter of 2024 and third quarter of 2023, respectively. The provision expense recorded during the third quarter of 2024 was primarily due the increase in reserves allocated to our individually analyzed loans, as well as the increase in general reserves allocated to our commercial real estate loan portfolio due to higher loan balances. Annualized net charge-offs to average loans for the third quarter of 2024 was 0.00%, compared to a net recovery of 0.01% for the second quarter of 2024 and a net recovery of 0.00% for the third quarter of 2023.

Nonperforming assets totaled $15.8 million, or 0.44% of total assets, at September 30, 2024, an increase of $1.4 million from $14.5 million, or 0.40% of total assets, at June 30, 2024, and a decrease of $57,000 from $15.9 million, or 0.45% of total assets, at September 30, 2023. The increase in nonperforming assets at September 30, 2024 compared to June 30, 2024 was due to a $1.3 million increase in nonaccrual loans and a $63,000 increase in other real estate owned.  

Allowance for credit losses as a percentage of total loans was 0.60% at September 30, 2024, compared to 0.58% at both June 30, 2024 and September 30, 2023. Allowance for credit losses as a percentage of nonperforming loans was 129.85% at September 30, 2024, compared to 138.11% and 116.74% at June 30, 2024 and September 30, 2023, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company's profitability; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and the surrounding region; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts

Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

 

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA







As of and for the Three Months Ended



As of and for the Nine Months Ended







September 30, 



June 30, 



March 31, 



December 31, 



September 30, 



September 30, 



September 30, 



(Dollars in thousands, except per share data)



2024



2024



2024



2023



2023



2024



2023



Selected income statement data: 













































Interest income



$

53,833



$

54,108



$

52,358



$

50,671



$

48,709



$

160,299



$

142,156



Interest expense





23,544





23,396





25,273





24,549





24,555





72,213





66,799



Net interest income





30,289





30,712





27,085





26,122





24,154





88,086





75,357



Provision for credit losses





582





(128)





(140)





782





(381)





314





(797)



Noninterest income





6,615





5,559





5,568





4,712





2,657





17,742





13,492



Noninterest expense





13,660





13,032





12,361





13,915





11,540





39,053





33,811



Income tax expense





5,961





6,430





5,801





4,790





4,224





18,192





15,569



Net income





16,701





16,937





14,631





11,347





11,428





48,269





40,266



Per share data:













































Basic income per share



$

0.66



$

0.67



$

0.58



$

0.45



$

0.45



$

1.91



$

1.60



Diluted income per share



$

0.65



$

0.66



$

0.57



$

0.44



$

0.45



$

1.89



$

1.58



Dividends per share



$

0.20



$

0.20



$

0.20



$

0.18



$

0.18



$

0.60



$

0.54



Book value per share (at period end)



$

16.07



$

16.08



$

15.73



$

15.14



$

15.24



$

16.07



$

15.24



Shares of common stock outstanding





25,331,916





25,331,916





25,205,506





25,205,506





25,241,157





25,331,916





25,241,157



Weighted average diluted shares





25,674,858





25,568,333





25,548,089





25,543,861





25,591,874





25,591,072





25,510,689



Performance ratios:













































Return on average assets





1.86

%



1.89

%



1.65

%



1.29

%



1.30

%



1.80

%



1.57

%

Return on average equity





16.26





17.10





15.41





11.71





12.14





16.27





14.96



Dividend payout ratio





30.58





30.03





34.77





40.36





40.18





31.66





34.04



Yield on total loans





6.43





6.46





6.34





6.11





5.98





6.41





5.93



Yield on average earning assets





6.36





6.45





6.27





6.14





5.92





6.36





5.88



Cost of average interest bearing liabilities





3.69





3.68





3.94





3.91





3.97





3.77





3.67



Cost of deposits





3.61





3.63





3.97





3.95





4.05





3.74





3.81



Net interest margin





3.58





3.66





3.24





3.17





2.94





3.50





3.11



Efficiency ratio(1)





37.01





35.93





37.86





45.13





43.04





36.90





38.18



Asset quality data (at period end): 













































Net charge-offs/(recoveries) to average loans held for investment





0.00

%



(0.01)

%



(0.00)

%



0.04

%



(0.00)

%



0.00

%



0.02

%

Nonperforming assets to gross loans held for investment and OREO





0.51





0.47





0.47





0.51





0.52





0.51





0.52



ACL to nonperforming loans





129.85





138.11





135.23





123.36





116.74





129.85





116.74



ACL to loans held for investment





0.60





0.58





0.58





0.57





0.58





0.60





0.58



Balance sheet and capital ratios:













































Gross loans held for investment to deposits





113.67

%



112.85

%



110.97

%



115.38

%



111.77

%



113.67

%



111.77

%

Noninterest bearing deposits to deposits





20.29





20.54





19.43





18.75





20.58





20.29





20.58



Investment securities to assets





0.81





0.78





0.78





0.82





0.79





0.81





0.79



Common equity to assets





11.41





11.26





10.87





10.89





10.96





11.41





10.96



Leverage ratio





11.12





10.75





10.27





10.20





10.07





11.12





10.07



Common equity tier 1 ratio





19.08





18.25





16.96





16.73





17.03





19.08





17.03



Tier 1 risk-based capital ratio





19.08





18.25





16.96





16.73





17.03





19.08





17.03



Total risk-based capital ratio





19.98





19.12





17.81





17.60





17.91





19.98





17.91



Mortgage and SBA loan data: 













































Mortgage loans serviced for others



$

556,442



$

529,823



$

443,905



$

443,072



$

464,823



$

556,442



$

464,823



Mortgage loan production





122,355





94,056





94,016





128,931





91,891





310,427





208,056



Mortgage loan sales





54,193





111,424





21,873













187,490







SBA/USDA loans serviced for others





487,359





486,051





516,425





508,000





487,827





487,359





487,827



SBA loan production





35,839





8,297





11,397





27,529





18,212





55,533





55,561



SBA loan sales





28,858









24,065









5,169





52,923





71,925



____________________

(1)   Represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)







As of the Quarter Ended





September 30, 



June 30, 



March 31, 



December 31, 



September 30, 

(Dollars in thousands, except per share data)



2024



2024



2024



2023



2023

ASSETS































Cash and due from banks



$

278,752



$

325,026



$

254,331



$

142,152



$

279,106

Federal funds sold





12,462





2,833





4,505





2,653





2,951

Cash and cash equivalents





291,214





327,859





258,836





144,805





282,057

Equity securities





10,568





10,276





10,288





10,335





10,113

Securities available for sale (at fair value)





18,206





17,825





18,057





18,493





17,664

Loans held for investment





3,087,826





3,090,498





3,115,871





3,142,105





3,029,947

Allowance for credit losses





(18,589)





(17,960)





(17,982)





(18,112)





(17,660)

Loans less allowance for credit losses





3,069,237





3,072,538





3,097,889





3,123,993





3,012,287

Loans held for sale





4,598









72,610





22,267





Accrued interest receivable





15,667





15,286





15,686





15,125





14,612

Federal Home Loan Bank stock





20,251





20,251





19,063





17,846





17,846

Premises and equipment, net





18,158





18,160





18,081





18,132





17,459

Operating lease right-of-use asset





7,171





7,599





8,030





8,472





7,340

Foreclosed real estate, net





1,515





1,452





1,452





1,466





761

SBA servicing asset, net





7,309





7,108





7,611





7,251





7,107

Mortgage servicing asset, net





1,296





1,454





937





1,273





1,823

Bank owned life insurance





72,670





72,061





71,492





70,957





70,462

Interest rate derivatives





18,895





36,196





38,682





31,781





46,502

Other assets





12,451





7,305





8,505





10,627





4,994

Total assets



$

3,569,206



$

3,615,370



$

3,647,219



$

3,502,823



$

3,511,027

































LIABILITIES































Noninterest-bearing deposits



$

552,472



$

564,076



$

546,760



$

512,045



$

559,540

Interest-bearing deposits





2,170,648





2,181,784





2,267,098





2,218,891





2,159,048

Total deposits





2,723,120





2,745,860





2,813,858





2,730,936





2,718,588

Federal Home Loan Bank advances





375,000





375,000





350,000





325,000





325,000

Operating lease liability





7,295





7,743





8,189





8,651





7,537

Accrued interest payable





3,593





3,482





3,059





4,133





3,915

Other liabilities





53,013





76,057





75,509





52,586





71,283

Total liabilities



$

3,162,021



$

3,208,142



$

3,250,615



$

3,121,306



$

3,126,323

































SHAREHOLDERS' EQUITY































Preferred stock





















Common stock





253





253





252





252





252

Additional paid-in capital





47,481





46,644





46,105





45,699





45,580

Retained earnings





348,343





336,749





324,900





315,356





308,589

Accumulated other comprehensive income





11,108





23,582





25,347





20,210





30,283

Total shareholders' equity





407,185





407,228





396,604





381,517





384,704

Total liabilities and shareholders' equity



$

3,569,206



$

3,615,370



$

3,647,219



$

3,502,823



$

3,511,027

 

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)







Three Months Ended



Nine Months Ended





September 30, 



June 30, 



March 31, 



December 31, 



September 30, 



September 30, 



September 30, 

(Dollars in thousands, except per share data)



2024



2024



2024



2023



2023



2024



2023

Interest and dividend income:











































Loans, including fees



$

50,336



$

50,527



$

50,117



$

47,367



$

45,695



$

150,980



$

134,516

Other investment income





3,417





3,547





2,211





3,267





2,979





9,175





7,500

Federal funds sold





80





34





30





37





35





144





140

Total interest income





53,833





54,108





52,358





50,671





48,709





160,299





142,156













































Interest expense:











































Deposits





19,602





19,735





22,105





21,691





21,736





61,442





58,916

FHLB advances and other borrowings





3,942





3,661





3,168





2,858





2,819





10,771





7,883

Total interest expense





23,544





23,396





25,273





24,549





24,555





72,213





66,799













































Net interest income





30,289





30,712





27,085





26,122





24,154





88,086





75,357













































Provision for credit losses





582





(128)





(140)





782





(381)





314





(797)













































Net interest income after provision for loan losses





29,707





30,840





27,225





25,340





24,535





87,772





76,154













































Noninterest income:











































Service charges on deposit accounts





531





532





447





515





490





1,510





1,403

Other service charges, commissions and fees





1,915





1,573





1,612





2,039





1,478





5,100





3,618

Gain on sale of residential mortgage loans





526





1,177





222













1,925





Mortgage servicing income, net





422





1,107





229





39





(85)





1,758





(232)

Gain on sale of SBA loans





1,083









1,051









244





2,134





3,267

SBA servicing income, net





1,231





560





1,496





1,324





270





3,287





3,472

Other income





907





610





511





795





260





2,028





1,964

Total noninterest income





6,615





5,559





5,568





4,712





2,657





17,742





13,492













































Noninterest expense:











































Salaries and employee benefits





8,512





8,048





7,370





8,971





6,864





23,930





20,333

Occupancy





1,430





1,334





1,354





1,368





1,272





4,118





3,525

Data Processing





311





353





294





301





300





958





928

Advertising





145





157





172





160





143





474





454

Other expenses





3,262





3,140





3,171





3,115





2,961





9,573





8,571

Total noninterest expense





13,660





13,032





12,361





13,915





11,540





39,053





33,811













































Income before provision for income taxes





22,662





23,367





20,432





16,137





15,652





66,461





55,835

Provision for income taxes





5,961





6,430





5,801





4,790





4,224





18,192





15,569

Net income available to common shareholders



$

16,701



$

16,937



$

14,631



$

11,347



$

11,428



$

48,269



$

40,266

 

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES







Three Months Ended







September 30, 2024



June 30, 2024



September 30, 2023







Average



Interest and



Yield /



Average



Interest and



Yield /



Average



Interest and



Yield /



(Dollars in thousands)



Balance



Fees



Rate



Balance



Fees



Rate



Balance



Fees



Rate



Earning Assets:



















































Federal funds sold and other investments(1)



$

220,826



$

3,308



5.96

%

$

196,068



$

3,368



6.91

%

$

200,245



$

2,807



5.56

%

Investment securities





31,309





189



2.40





31,364





213



2.73





32,172





207



2.55



Total investments





252,135





3,497



5.52





227,432





3,581



6.33





232,417





3,014



5.14



Construction and development





14,170





302



8.48





14,501





320



8.88





30,584





442



5.73



Commercial real estate





740,720





17,132



9.20





737,846





17,030



9.28





647,244





14,435



8.85



Commercial and industrial





64,584





1,593



9.81





69,208





1,728



10.04





61,774





1,488



9.56



Residential real estate





2,295,573





31,267



5.42





2,322,763





31,408



5.44





2,289,428





29,296



5.08



Consumer and other





394





42



42.41





290





41



56.86





201





34



67.11



Gross loans(2)





3,115,441





50,336



6.43





3,144,608





50,527



6.46





3,029,231





45,695



5.98



Total earning assets





3,367,576





53,833



6.36





3,372,040





54,108



6.45





3,261,648





48,709



5.92



Noninterest-earning assets





207,093















223,455















214,834













Total assets





3,574,669















3,595,495















3,476,482













Interest-bearing liabilities: 



















































NOW and savings deposits





119,759





770



2.56





143,460





1,198



3.36





125,078





381



1.21



Money market deposits





982,517





6,156



2.49





998,601





6,135



2.47





1,036,955





11,709



4.48



Time deposits





1,057,956





12,676



4.77





1,042,758





12,402



4.78





966,408





9,646



3.96



Total interest-bearing deposits





2,160,232





19,602



3.61





2,184,819





19,735



3.63





2,128,441





21,736



4.05



Borrowings





375,677





3,942



4.17





369,232





3,661



3.99





325,025





2,819



3.44



Total interest-bearing liabilities





2,535,909





23,544



3.69





2,554,051





23,396



3.68





2,453,466





24,555



3.97



Noninterest-bearing liabilities:



















































Noninterest-bearing deposits





542,939















545,114















555,074













Other noninterest-bearing liabilities





87,156















98,066















94,528













Total noninterest-bearing liabilities





630,095















643,180















649,602













Shareholders' equity





408,665















398,264















373,414













Total liabilities and shareholders' equity



$

3,574,669













$

3,595,495













$

3,476,482













Net interest income









$

30,289













$

30,712













$

24,154







Net interest spread















2.67















2.77















1.95



Net interest margin















3.58















3.66















2.94



____________________

(1)   Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.

(2)   Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC.

YTD AVERAGE BALANCES AND YIELDS/RATES







Nine Months Ended







September 30, 2024



September 30, 2023







Average



Interest and



Yield /



Average



Interest and



Yield /



(Dollars in thousands)



Balance



Fees



Rate



Balance



Fees



Rate



Earning Assets:



































Federal funds sold and other investments(1)



$

187,398



$

8,729



6.22

%

$

167,411



$

7,057



5.64

%

Investment securities





31,428





590



2.51





32,547





583



2.39



Total investments





218,826





9,319



5.69





199,958





7,640



5.11



Construction and development





16,871





1,127



8.92





36,658





1,520



5.54



Commercial real estate





731,573





50,270



9.18





657,700





42,776



8.70



Commercial and industrial





66,116





4,894



9.89





52,292





3,637



9.30



Residential real estate





2,332,271





94,565



5.42





2,287,788





86,495



5.05



Consumer and other





311





124



53.26





174





88



67.62



Gross loans(2)





3,147,142





150,980



6.41





3,034,612





134,516



5.93



Total earning assets





3,365,968





160,299



6.36





3,234,570





142,156



5.88



Noninterest-earning assets





214,756















190,616













Total assets





3,580,724















3,425,186













Interest-bearing liabilities:



































NOW and savings deposits





140,539





2,852



2.71





150,849





1,869



1.66



Money market deposits





1,019,394





21,984



2.88





991,048





31,738



4.28



Time deposits





1,034,256





36,606



4.73





923,891





25,309



3.66



Total interest-bearing deposits





2,194,189





61,442



3.74





2,065,788





58,916



3.81



Borrowings





362,965





10,771



3.96





366,112





7,883



2.88



Total interest-bearing liabilities





2,557,154





72,213



3.77





2,431,900





66,799



3.67



Noninterest-bearing liabilities:



































Noninterest-bearing deposits





536,807















564,233













Other noninterest-bearing liabilities





90,459















69,078













Total noninterest-bearing liabilities





627,266















633,311













Shareholders' equity





396,304















359,975













Total liabilities and shareholders' equity



$

3,580,724













$

3,425,186













Net interest income









$

88,086













$

75,357







Net interest spread















2.59















2.21



Net interest margin















3.50















3.11



 

METROCITY BANKSHARES, INC.

LOAN DATA







As of the Quarter Ended







September 30, 2024



June 30, 2024



March 31, 2024



December 31, 2023



September 30, 2023













% of









% of









% of









% of









% of



(Dollars in thousands)



Amount



Total



Amount



Total



Amount



Total



Amount



Total



Amount



Total



Construction and development



$

16,539



0.5

%

$

13,564



0.4

%

$

27,762



0.9

%

$

23,262



0.7

%

$

41,783



1.4

%

Commercial real estate





738,929



23.9





733,845



23.7





724,263



23.2





711,177



22.6





624,122



20.5



Commercial and industrial





63,606



2.1





68,300



2.2





68,560



2.2





65,904



2.1





61,332



2.0



Residential real estate





2,276,210



73.5





2,282,630



73.7





2,303,400



73.7





2,350,299



74.6





2,310,981



76.1



Consumer and other





215







230







247







319







240





Gross loans held for investment



$

3,095,499



100.0

%

$

3,098,569



100.0

%

$

3,124,232



100.0

%

$

3,150,961



100.0

%

$

3,038,458



100.0

%

Unearned income





(7,673)









(8,071)









(8,361)









(8,856)









(8,511)







Allowance for credit losses





(18,589)









(17,960)









(17,982)









(18,112)









(17,660)







Net loans held for investment



$

3,069,237







$

3,072,538







$

3,097,889







$

3,123,993







$

3,012,287







 

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS







As of the Quarter Ended







September 30, 



June 30, 



March 31, 



December 31, 



September 30, 



(Dollars in thousands)



2024



2024



2024



2023



2023



Nonaccrual loans



$

14,316



$

13,004



$

13,297



$

14,682



$

15,127



Past due loans 90 days or more and still accruing























Total non-performing loans





14,316





13,004





13,297





14,682





15,127



Other real estate owned





1,515





1,452





1,452





1,466





761



Total non-performing assets



$

15,831



$

14,456



$

14,749



$

16,148



$

15,888





































Nonperforming loans to gross loans held for investment





0.46

%



0.42

%



0.43

%



0.47

%



0.50

%

Nonperforming assets to total assets





0.44





0.40





0.40





0.46





0.45



Allowance for credit losses to non-performing loans





129.85





138.11





135.23





123.36





116.74



 

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES







As of and for the Three Months Ended



As of and for the Nine Months Ended







September 30, 



June 30, 



March 31, 



December 31, 



September 30, 



September 30, 



September 30, 



(Dollars in thousands)



2024



2024



2024



2023



2023



2024



2023



Balance, beginning of period



$

17,960



$

17,982



$

18,112



$

17,660



$

18,091



$

18,112



$

13,888



Net charge-offs/(recoveries):













































Construction and development































Commercial real estate









(82)





(1)





224





(1)





(83)





227



Commercial and industrial





24





(1)





(3)





85





(3)





20





203



Residential real estate































Consumer and other































Total net charge-offs/(recoveries)





24





(83)





(4)





309





(4)





(63)





430



Adoption of ASU 2016-13 (CECL)





























5,055



Provision for loan losses





653





(105)





(134)





761





(435)





414





(853)



Balance, end of period



$

18,589



$

17,960



$

17,982



$

18,112



$

17,660



$

18,589



$

17,660



Total loans at end of period(1)



$

3,095,499



$

3,098,569



$

3,124,232



$

3,150,961



$

3,038,458



$

3,095,499



$

3,038,458



Average loans(1)



$

3,115,441



$

3,108,303



$

3,134,286



$

3,064,409



$

3,029,231



$

3,123,423



$

3,034,612



Net charge-offs/(recoveries) to average loans





0.00

%



(0.01)

%



(0.00)

%



0.04

%



(0.00)

%



0.00

%



0.02

%

Allowance for loan losses to total loans





0.60





0.58





0.58





0.57





0.58





0.60





0.58



____________________

(1)   Excludes loans held for sale.

 

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SOURCE MetroCity Bankshares, Inc.