METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2024

ATLANTA, April 19, 2024 /PRNewswire/ — MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $14.6 million, or $0.57 per diluted share, for the first quarter of 2024, compared to $11.3 million, or $0.44 per diluted share, for the fourth quarter of 2023, and $15.7 million, or $0.62 per diluted share, for the first quarter of 2023.

First Quarter 2024 Highlights:

  • Annualized return on average assets was 1.65%, compared to 1.29% for the fourth quarter of 2023 and 1.87% for the first quarter of 2023.
  • Annualized return on average equity was 15.41%, compared to 11.71% for the fourth quarter of 2023 and 18.09% for the first quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was 16.27% for the first quarter of 2024, compared to 12.69% for the fourth quarter of 2023 and 19.08% for the first quarter of 2023.
  • Efficiency ratio of 37.9%, compared to 45.1% for the fourth quarter of 2023 and 33.4% for the first quarter of 2023.
  • Total assets increased by $144.4 million, or 4.1%, to $3.65 billion from the previous quarter.
  • Total deposits increased by $82.9 million, or 3.0%, to $2.81 billion from the previous quarter.
  • Net interest margin increased by 7 basis points to 3.24% from 3.17% for the previous quarter.

Results of Operations

Net Income

Net income was $14.6 million for the first quarter of 2024, an increase of $3.3 million, or 28.9%, from $11.3 million for the fourth quarter of 2023. This increase was due to an increase in net interest income of $963,000, a decrease in provision for credit losses of $922,000, an increase in noninterest income of $856,000 and a decrease in noninterest expense of $1.6 million, offset by an increase in income tax expense of $1.0 million. Net income decreased by $1.1 million, or 7.0%, in the first quarter of 2024 compared to net income of $15.7 million for the first quarter of 2023. This decrease was due to a decrease in noninterest income of $576,000 and an increase in noninterest expense of $1.6 million, offset by an increase in net interest income of $852,000 and a decrease in provision for credit losses of $140,000.

Net Interest Income and Net Interest Margin

Interest income totaled $52.4 million for the first quarter of 2024, an increase of $1.7 million, or 3.3%, from the previous quarter, primarily due to a 23 basis points increase in the loan yield and a $106.2 million increase in average loan balances. As compared to the first quarter of 2023, interest income for the first quarter of 2024 increased by $6.4 million, or 13.9%, primarily due to a 49 basis points increase in the loan yield coupled with a $131.5 million increase in average loan balances, as well as a 60 basis points increase in the total investment yield.

Interest expense totaled $25.3 million for the first quarter of 2024, an increase of $724,000, or 2.9%, from the previous quarter, primarily due to a 35 basis points increase in time deposit costs and an 11 basis point increase in borrowings costs coupled with a $90.1 million increase in average interest-bearing liabilities. As compared to the first quarter of 2023, interest expense for the first quarter of 2024 increased by $5.5 million, or 28.1%, due to a 49 basis points increase in deposit costs and a 134 basis points increase in borrowing costs coupled with a $215.2 million increase in average interest-bearing deposits. 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 5.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the first quarter of 2024, we recorded a credit to interest expense of $4.1 million from the benefit received on these interest rate derivatives compared to a benefit of $3.1 million and $166,000 recorded during the fourth quarter of 2023 and the first quarter of 2023, respectively.

The net interest margin for the first quarter of 2024 was 3.24% compared to 3.17% for the previous quarter, an increase of seven basis points. The yield on average interest-earning assets for the first quarter of 2024 increased by 13 basis points to 6.27% from 6.14% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2024 increased by three basis points to 3.94% from 3.91% for the previous quarter. Average earning assets increased by $85.2 million from the previous quarter, due to an increase in average loans of $106.2 million, offset by a decrease in average total investments of $21.0 million. Average interest-bearing liabilities increased by $90.1 million from the previous quarter as average interest-bearing deposits increased by $60.9 million and average borrowings increased by $29.2 million.

As compared to the same period in 2023, the net interest margin for the first quarter of 2024 decreased by six basis points to 3.24% from 3.30%, primarily due to a 64 basis point increase in the cost of average interest-bearing liabilities of $2.58 billion, offset by a 50 basis point increase in the yield on average interest-earning assets of $3.36 billion. Average earning assets for the first quarter of 2024 increased by $129.8 million from the first quarter of 2023, due to a $131.5 million increase in average loans, offset by a $1.8 million decrease in average total investments. Average interest-bearing liabilities for the first quarter of 2024 increased by $155.8 million from the first quarter of 2023, driven by an increase in average interest-bearing deposits of $215.2 million, offset by a decrease in average borrowings of $59.3 million.  

Noninterest Income

Noninterest income for the first quarter of 2024 was $5.6 million, an increase of $856,000, or 18.2%, from the fourth quarter of 2023, primarily due to higher gains on sale of Small Business Administration (“SBA”) and residential mortgage loans, as well as higher SBA and mortgage servicing income, offset by lower mortgage loan fees, service charges on deposit accounts and other income. SBA and mortgage loan sales totaled $24.1 million and $21.9 million, respectively, during the first quarter of 2024. There were no SBA or mortgage loan sales during the fourth quarter of 2023. Mortgage loan originations totaled $94.0 million during the first quarter 2024 compared to $128.9 million during the fourth quarter of 2023. During the first quarter of 2024, we recorded a $361,000 fair value adjustment gain on our SBA servicing asset compared to a fair value adjustment gain of $147,000 during the fourth quarter of 2023.

Compared to the same period in 2023, noninterest income for the first quarter of 2024 decreased by $576,000, or 9.4%, primarily due to lower gains on sale and servicing income from SBA loans and other income, offset by higher mortgage loan fees from higher volume, as well as higher gains on sale and servicing income from mortgage loans. During the first quarter of 2023, we recorded a $708,000 fair value adjustment gain on our SBA servicing asset.

Noninterest Expense

Noninterest expense for the first quarter of 2024 totaled $12.4 million, a decrease of $1.6 million, or 11.2%, from $13.9 million for the fourth quarter of 2023. This decrease was primarily attributable to decreases in salary and employee benefits and occupancy expense, partially offset by higher professional fees, FDIC insurance premiums and loan and other real estate owned related expenses. Compared to the first quarter of 2023, noninterest expense during the first quarter of 2024 increased by $1.6 million, or 14.4%, primarily due to higher salary and employee benefits, occupancy expense, FDIC insurance premiums and professional fees, partially offset by lower loan and other real estate owned related expenses.

The Company’s efficiency ratio was 37.9% for the first quarter of 2024 compared to 45.1% and 33.4% for the fourth quarter of 2023 and first quarter of 2023, respectively.

Income Tax Expense

The Company’s effective tax rate for the first quarter of 2024 was 28.4%, compared to 29.7% for the fourth quarter of 2023 and 27.1% for the first quarter of 2023.

Balance Sheet

Total Assets

Total assets were $3.65 billion at March 31, 2024, an increase of $144.4 million, or 4.1%, from $3.50 billion at December 31, 2023, and an increase of $228.2 million, or 6.7%, from $3.42 billion at March 31, 2023. The $144.4 million increase in total assets at March 31, 2024 compared to December 31, 2023 was primarily due to increases in cash and cash equivalents of $114.0 million, loans held for sale of $52.1 million and interest rate derivatives of $6.9 million, partially offset by decreases in loans held for investment of $28.0 million and other assets of $2.1 million. The $228.2 million increase in total assets at March 31, 2024 compared to March 31, 2023 was primarily due to increases in loans held for investment of $102.0 million, loans held for sale of $74.4 million, cash and cash equivalents of $34.8 million and interest rate derivatives of $14.7 million, partially offset by decreases in other assets of $3.9 million and mortgage servicing asset of $2.3 million

Our investment securities portfolio made up only 0.78% of our total assets at March 31, 2024 compared to 0.82% and 0.87% at December 31, 2023 and March 31, 2023, respectively.

Loans

Loans held for investment were $3.11 billion at March 31, 2024, a decrease of $28.0 million, or 0.9%, compared to $3.14 billion at December 31, 2023, and an increase of $102.0 million, or 3.4%, compared to $3.01 billion at March 31, 2023. The decrease in loans at March 31, 2024 compared to December 31, 2023 was due to a $48.7 million decrease in residential mortgage loans, offset by a $13.1 million increase in commercial real estate loans, a $4.5 million increase in construction and development loans and a $2.7 million increase in commercial and industrial loans. Loans held for sale were $74.4 million and $22.3 million at March 31, 2024 and December 31, 2023, respectively. There were no loans classified as held for sale at March 31, 2023.

Deposits

Total deposits were $2.81 billion at March 31, 2024, an increase of $82.9 million, or 3.0%, compared to total deposits of $2.73 billion at December 31, 2023, and an increase of $169.8 million, or 6.4%, compared to total deposits of $2.64 billion at March 31, 2023. The increase in total deposits at March 31, 2024 compared to December 31, 2023 was due to a $50.2 million increase in time deposits, a $34.7 million increase in noninterest-bearing demand deposits and a $2.6 million increase in interest-bearing demand deposits, offset by a $2.9 million decrease in money market accounts and a $1.6 million decrease in savings accounts.

Noninterest-bearing deposits were $546.8 million at March 31, 2024, compared to $512.0 million at December 31, 2023 and $577.3 million at March 31, 2023. Noninterest-bearing deposits constituted 19.4% of total deposits at March 31, 2024, compared to 18.7% at December 31, 2023 and 21.8% at March 31, 2023. Interest-bearing deposits were $2.27 billion at March 31, 2024, compared to $2.22 billion at December 31, 2023 and $2.07 billion at March 31, 2023. Interest-bearing deposits constituted 80.6% of total deposits at March 31, 2024, compared to 81.3% at December 31, 2023 and 78.2% at March 31, 2023.

Uninsured deposits were 23.0% of total deposits at March 31, 2024, compared to 26.5% and 31.9% at December 31, 2023 and March 31, 2023, respectively. As of March 31, 2024, we had $1.22 billion of available borrowing capacity at the Federal Home Loan Bank ($694.9 million), Federal Reserve Discount Window ($480.8 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $140,000 during the first quarter of 2024, compared to a provision for credit losses expense of $782,000 recorded during the fourth quarter of 2023. No provision for credit losses was recorded during the first quarter of 2023. The credit provision recorded during the first quarter of 2024 was primarily due the decrease in the general reserves allocated to our residential mortgage loan portfolio as a large amount of residential mortgage loans were moved from loans held for investment to loans held for sale during the quarter. Annualized net recoveries to average loans for the first quarter of 2024 was 0.00%, compared to a net charge-off of 0.04% for the fourth quarter of 2023 and a net recovery of 0.00% for the first quarter of 2023.

Nonperforming assets totaled $30.3 million, or 0.83% of total assets, at March 31, 2024, a decrease of $8.1 million from $38.4 million, or 1.10% of total assets, at December 31, 2023, and an increase of $10.8 million from $19.5 million, or 0.57% of total assets, at March 31, 2023. The decrease in nonperforming assets at March 31, 2024 compared to December 31, 2023 was due to a $1.4 million decrease in nonaccrual loans, a $6.7 million decrease in accruing restructured loans and a $14,000 decrease in other real estate owned.  

Allowance for credit losses as a percentage of total loans was 0.58% at March 31, 2024, compared to 0.57% at December 31, 2023 and 0.63% at March 31, 2023. Allowance for credit losses as a percentage of nonperforming loans was 62.37% at March 31, 2024, compared to 49.06% and 101.22% at December 31, 2023 and March 31, 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

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA






















As of and for the Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands, except per share data)


2024


2023


2023


2023


2023


Selected income statement data: 

















Interest income


$

52,358


$

50,671


$

48,709


$

47,482


$

45,965


Interest expense



25,273



24,549



24,555



22,512



19,732


Net interest income



27,085



26,122



24,154



24,970



26,233


Provision for credit losses



(140)



782



(381)



(416)




Noninterest income



5,568



4,712



2,657



4,691



6,144


Noninterest expense



12,361



13,915



11,540



11,464



10,807


Income tax expense



5,801



4,790



4,224



5,505



5,840


Net income



14,631



11,347



11,428



13,108



15,730


Per share data:

















Basic income per share


$

0.58


$

0.45


$

0.45


$

0.52


$

0.63


Diluted income per share


$

0.57


$

0.44


$

0.45


$

0.51


$

0.62


Dividends per share


$

0.20


$

0.18


$

0.18


$

0.18


$

0.18


Book value per share (at period end)


$

15.73


$

15.14


$

15.24


$

14.76


$

14.04


Shares of common stock outstanding



25,205,506



25,205,506



25,241,157



25,279,846



25,143,675


Weighted average diluted shares



25,548,089



25,543,861



25,591,874



25,477,143



25,405,855


Performance ratios:

















Return on average assets



1.65

%


1.29

%


1.30

%


1.55

%


1.87

%

Return on average equity



15.41



11.71



12.14



14.87



18.09


Dividend payout ratio



34.77



40.36



40.18



34.77



28.98


Yield on total loans



6.34



6.11



5.98



5.95



5.85


Yield on average earning assets



6.27



6.14



5.92



5.90



5.77


Cost of average interest bearing liabilities



3.94



3.91



3.97



3.74



3.30


Cost of deposits



3.97



3.95



4.05



3.88



3.48


Net interest margin



3.24



3.17



2.94



3.10



3.30


Efficiency ratio(1)



37.86



45.13



43.04



38.65



33.38


Asset quality data (at period end): 

















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



(0.00)

%


0.04

%


(0.00)

%


0.06

%


(0.00)

%

Nonperforming assets to gross loans held for investment and OREO



0.97



1.22



1.25



0.78



0.64


ACL to nonperforming loans



62.37



49.06



47.61



79.88



101.22


ACL to loans held for investment



0.58



0.57



0.58



0.60



0.63


Balance sheet and capital ratios:

















Gross loans held for investment to deposits



110.97

%


115.38

%


111.77

%


112.27

%


114.27

%

Noninterest bearing deposits to deposits



19.43



18.75



20.58



21.32



21.83


Investment securities to assets



0.78



0.82



0.79



0.84



0.87


Common equity to assets



10.87



10.89



10.96



10.74



10.32


Leverage ratio



10.27



10.20



10.07



10.03



9.72


Common equity tier 1 ratio



16.85



16.73



17.03



16.69



16.55


Tier 1 risk-based capital ratio



16.85



16.73



17.03



16.69



16.55


Total risk-based capital ratio



17.69



17.60



17.91



17.59



17.51


Mortgage and SBA loan data: 

















Mortgage loans serviced for others


$

443,905


$

443,072


$

464,823


$

487,787


$

506,012


Mortgage loan production



94,016



128,931



91,891



72,830



43,335


Mortgage loan sales



21,873










SBA/USDA loans serviced for others



516,425



508,000



487,827



493,579



485,663


SBA loan production



10,117



27,529



18,212



16,110



26,239


SBA loan sales



24,065





5,169



30,298



36,458














(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



March 31, 


December 31, 


September 30, 


June 30, 


March 31, 

(Dollars in thousands, except per share data)


2024


2023


2023


2023


2023

ASSETS
















Cash and due from banks


$

254,331


$

142,152


$

279,106


$

250,503


$

216,167

Federal funds sold



4,505



2,653



2,951



12,224



7,897

Cash and cash equivalents



258,836



144,805



282,057



262,727



224,064

Equity securities



10,288



10,335



10,113



10,358



10,428

Securities available for sale (at fair value)



18,057



18,493



17,664



18,696



19,174

Loans held for investment



3,114,067



3,142,105



3,029,947



3,020,714



3,012,020

Allowance for credit losses



(17,982)



(18,112)



(17,660)



(18,091)



(18,947)

Loans less allowance for credit losses



3,096,085



3,123,993



3,012,287



3,002,623



2,993,073

Loans held for sale



74,414



22,267







Accrued interest receivable



15,686



15,125



14,612



13,877



13,642

Federal Home Loan Bank stock



19,063



17,846



17,846



15,534



17,659

Premises and equipment, net



18,081



18,132



17,459



16,374



15,165

Operating lease right-of-use asset



8,030



8,472



7,340



7,761



8,030

Foreclosed real estate, net



1,452



1,466



761



1,001



766

SBA servicing asset, net



7,611



7,251



7,107



8,018



7,791

Mortgage servicing asset, net



937



1,273



1,823



2,514



3,205

Bank owned life insurance



71,492



70,957



70,462



70,010



69,565

Interest rate derivatives



38,682



31,781



46,502



39,284



24,008

Other assets



8,505



10,627



4,994



6,310



12,443

Total assets


$

3,647,219


$

3,502,823


$

3,511,027


$

3,475,087


$

3,419,013

















LIABILITIES
















Noninterest-bearing deposits


$

546,760


$

512,045


$

559,540


$

575,301


$

577,282

Interest-bearing deposits



2,267,098



2,218,891



2,159,048



2,123,181



2,066,811

Total deposits



2,813,858



2,730,936



2,718,588



2,698,482



2,644,093

Federal Home Loan Bank advances



350,000



325,000



325,000



325,000



375,000

Other borrowings









387



387

Operating lease liability



8,189



8,651



7,537



7,985



8,438

Accrued interest payable



3,059



4,133



3,915



3,859



3,681

Other liabilities



75,509



52,586



71,283



66,211



34,453

Total liabilities


$

3,250,615


$

3,121,306


$

3,126,323


$

3,101,924


$

3,066,052

















SHAREHOLDERS’ EQUITY
















Preferred stock











Common stock



252



252



252



253



251

Additional paid-in capital



46,105



45,699



45,580



45,516



45,044

Retained earnings



324,900



315,356



308,589



301,752



293,139

Accumulated other comprehensive income



25,347



20,210



30,283



25,642



14,527

Total shareholders’ equity



396,604



381,517



384,704



373,163



352,961

Total liabilities and shareholders’ equity


$

3,647,219


$

3,502,823


$

3,511,027


$

3,475,087


$

3,419,013

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)





















Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands, except per share data)


2024


2023


2023


2023


2023


Interest and dividend income:

















Loans, including fees


$

50,117


$

47,367


$

45,695


$

44,839


$

43,982


Other investment income



2,211



3,267



2,979



2,582



1,939


Federal funds sold



30



37



35



61



44


Total interest income



52,358



50,671



48,709



47,482



45,965



















Interest expense:

















Deposits



22,105



21,691



21,736



19,804



17,376


FHLB advances and other borrowings



3,168



2,858



2,819



2,708



2,356


Total interest expense



25,273



24,549



24,555



22,512



19,732



















Net interest income



27,085



26,122



24,154



24,970



26,233



















Provision for credit losses



(140)



782



(381)



(416)





















Net interest income after provision for loan losses



27,225



25,340



24,535



25,386



26,233



















Noninterest income:

















Service charges on deposit accounts



447



515



490



464



449


Other service charges, commissions and fees



1,612



2,039



1,478



1,266



874


Gain on sale of residential mortgage loans



222










Mortgage servicing income, net



229



39



(85)



(51)



(96)


Gain on sale of SBA loans



1,051





244



1,054



1,969


SBA servicing income, net



1,496



1,324



270



1,388



1,814


Other income



511



795



260



570



1,134


Total noninterest income



5,568



4,712



2,657



4,691



6,144



















Noninterest expense:

















Salaries and employee benefits



7,370



8,971



6,864



7,103



6,366


Occupancy



1,354



1,368



1,272



1,039



1,214


Data Processing



294



301



300



353



275


Advertising



172



160



143



165



146


Other expenses



3,171



3,115



2,961



2,804



2,806


Total noninterest expense



12,361



13,915



11,540



11,464



10,807



















Income before provision for income taxes



20,432



16,137



15,652



18,613



21,570


Provision for income taxes



5,801



4,790



4,224



5,505



5,840


Net income available to common shareholders


$

14,631


$

11,347


$

11,428


$

13,108


$

15,730



METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES






























Three Months Ended




March 31, 2024


December 31, 2023


March 31, 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)


$

144,934


$

2,052


5.69

%

$

165,877


$

2,938


7.03

%

$

145,354


$

1,805


5.04

%

Investment securities



31,611



189


2.40



31,685



366


4.58



32,952



178


2.19


Total investments



176,545



2,241


5.11



197,562



3,304


6.64



178,306



1,983


4.51


Construction and development



21,970



505


9.24



18,002



344


7.58



39,097



523


5.43


Commercial real estate



716,051



16,108


9.05



664,570



14,934


8.92



672,109



13,979


8.44


Commercial and industrial



64,575



1,574


9.80



59,465



1,473


9.83



47,105



1,030


8.87


Residential real estate



2,378,879



31,890


5.39



2,333,247



30,577


5.20



2,291,699



28,422


5.03


Consumer and other



249



40


64.61



258



39


59.97



166



28


68.41


Gross loans(2)



3,181,724



50,117


6.34



3,075,542



47,367


6.11



3,050,176



43,982


5.85


Total earning assets



3,358,269



52,358


6.27



3,273,104



50,671


6.14



3,228,482



45,965


5.77


Noninterest-earning assets



213,802








223,630








175,110







Total assets



3,572,071








3,496,734








3,403,592







Interest-bearing liabilities: 


























NOW and savings deposits



158,625



885


2.24



133,765



396


1.17



166,962



648


1.57


Money market deposits



1,077,469



9,692


3.62



1,051,797



10,609


4.00



978,954



9,659


4.00


Time deposits



1,001,792



11,528


4.63



991,416



10,686


4.28



876,803



7,069


3.27


Total interest-bearing deposits



2,237,886



22,105


3.97



2,176,978



21,691


3.95



2,022,719



17,376


3.48


Borrowings



343,847



3,168


3.71



314,682



2,858


3.60



403,170



2,356


2.37


Total interest-bearing liabilities



2,581,733



25,273


3.94



2,491,660



24,549


3.91



2,425,889



19,732


3.30


Noninterest-bearing liabilities:


























Noninterest-bearing deposits



522,300








530,935








578,978







Other noninterest-bearing liabilities



86,190








89,615








46,138







Total noninterest-bearing liabilities



608,490








620,550








625,116







Shareholders’ equity



381,848








384,524








352,587







Total liabilities and shareholders’ equity


$

3,572,071







$

3,496,734







$

3,403,592







Net interest income





$

27,085







$

26,122







$

26,233




Net interest spread








2.33








2.23








2.47


Net interest margin








3.24








3.17








3.30















(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.

LOAN DATA































As of the Quarter Ended




March 31, 2024


December 31, 2023


September 30, 2023


June 30, 2023


March 31, 2023







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and development


$

27,762


0.9

%

$

23,262


0.7

%

$

41,783


1.4

%

$

51,759


1.7

%

$

49,209


1.6

%

Commercial real estate



724,263


23.2



711,177


22.6



624,122


20.5



625,111


20.6



639,951


21.2


Commercial and industrial



68,560


2.2



65,904


2.1



61,332


2.0



63,502


2.1



46,208


1.5


Residential real estate



2,301,596


73.7



2,350,299


74.6



2,310,981


76.1



2,289,050


75.6



2,285,902


75.7


Consumer and other



247




319




240




102




50



Gross loans held for investment


$

3,122,428


100.0

%

$

3,150,961


100.0

%

$

3,038,458


100.0

%

$

3,029,524


100.0

%

$

3,021,320


100.0

%

Unearned income



(8,361)





(8,856)





(8,511)





(8,810)





(9,300)




Allowance for credit losses



(17,982)





(18,112)





(17,660)





(18,091)





(18,947)




Net loans held for investment


$

3,096,085




$

3,123,993




$

3,012,287




$

3,002,623




$

2,993,073




METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS




















As of the Quarter Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands)


2024


2023


2023


2023


2023


Nonaccrual loans


$

13,297


$

14,682


$

15,127


$

13,037


$

9,064


Past due loans 90 days or more and still accruing












Accruing restructured loans



15,534



22,233



21,964



9,611



9,654


Total non-performing loans



28,831



36,915



37,091



22,648



18,718


Other real estate owned



1,452



1,466



761



1,001



766


Total non-performing assets


$

30,283


$

38,381


$

37,852


$

23,649


$

19,484



















Nonperforming loans to gross loans held for investment



0.92

%


1.17

%


1.22

%


0.75

%


0.62

%

Nonperforming assets to total assets



0.83



1.10



1.08



0.68



0.57


Allowance for credit losses to non-performing loans



62.37



49.06



47.61



79.88



101.22


METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES




















As of and for the Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands)


2024


2023


2023


2023


2023


Balance, beginning of period


$

18,112


$

17,660


$

18,091


$

18,947


$

13,888


Net charge-offs/(recoveries):

















Construction and development












Commercial real estate



(1)



224



(1)



230



(2)


Commercial and industrial



(3)



85



(3)



208



(2)


Residential real estate












Consumer and other












Total net charge-offs/(recoveries)



(4)



309



(4)



438



(4)


Adoption of ASU 2016-13 (CECL)











5,055


Provision for loan losses



(134)



761



(435)



(418)




Balance, end of period


$

17,982


$

18,112


$

17,660


$

18,091


$

18,947


Total loans at end of period


$

3,122,428


$

3,150,961


$

3,038,458


$

3,029,524


$

3,021,320


Average loans(1)


$

3,133,384


$

3,064,409


$

3,029,231


$

3,024,660


$

3,050,176


Net charge-offs/(recoveries) to average loans



(0.00)

%


0.04

%


(0.00)

%


0.06

%


(0.00)

%

Allowance for loan losses to total loans



0.58



0.57



0.58



0.60



0.63




(1)

Excludes loans held for sale.

SOURCE MetroCity Bankshares, Inc.


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