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.