MetroCity Bankshares, Inc. Reports Earnings For Second Quarter 2021

Rhea-AI Summary

MetroCity Bankshares, Inc. (MCBS) reported Q2 2021 net income of $14.4 million, or $0.56 per diluted share, up from $13.0 million in Q1 2021 and $7.7 million in Q2 2020. Total assets rose 16.9% to $2.52 billion, while total loans increased 12.1% to $2.09 billion. Net interest margin remained stable at 4.60%. The annualized return on average assets was 2.53%, and return on average equity hit 22.51%. Noninterest income grew 5.0% from Q1, primarily due to higher mortgage fees.

Positive

• Net income increased 10.9% QoQ and 86.0% YoY.
• Total assets increased by $363.5 million or 16.9% from Q1 2021.
• Total loans rose 12.1% to $2.09 billion.
• Noninterest income grew 5.0% QoQ and 56.3% YoY.

Negative

• Increase in provision for loan losses by $606,000 QoQ.
• Noninterest expense was $12.1 million, up 12.9% QoQ.

ATLANTA, July 23, 2021 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $14.4 million, or $0.56 per diluted share, for the second quarter of 2021, compared to $13.0 million, or $0.50 per diluted share, for the first quarter of 2021, and $7.7 million, or $0.30 per diluted share, for the second quarter of 2020. For the six months ended June 30, 2021, the Company reported net income of $27.4 million, or $1.06 per diluted share, compared to $17.6 million, or $0.68 per diluted share, for the same period in 2020.

Second Quarter 2021 Highlights:

• Annualized return on average assets was 2.53%, compared to 2.62% for the first quarter of 2021 and 1.89% for the second quarter of 2020.
• Annualized return on average equity was 22.51%, compared to 21.35% for the first quarter of 2021 and 13.92% for the second quarter of 2020.
• Efficiency ratio of 36.2%, compared to 36.0% for the first quarter of 2021 and 45.6% for the second quarter of 2020.
• Total assets increased by $363.5 million, or 16.9%, to $2.52 billion from the previous quarter.
• Total loans increased by $225.0 million, or 12.1%, to $2.09 billion from the previous quarter.
• Total deposits increased by $228.9 million, or 13.1%, to $1.97 billion from the previous quarter.
• Net interest margin was 4.60%, compared to 4.60% for the first quarter of 2021 and 4.09% for the second quarter of 2020.

Results of Operations

Net Income

Net income was $14.4 million for the second quarter of 2021, an increase of $1.4 million, or 10.9%, from $13.0 million for the first quarter of 2021. This increase was due to an increase in net interest income of $3.3 million and an increase in noninterest income of $408,000, offset by an increase in provision for loan losses of $606,000, an increase in noninterest expense of $1.4 million and an increase in provision for income taxes of $296,000.  Net income increased $6.7 million, or 86.0%, in the second quarter of 2021 compared to net income of $7.7 million for the second quarter of 2020. This increase was due to an increase in net interest income of $9.0 million and an increase in noninterest income of $3.1 million, offset by an increase in provision for loan losses of $1.1 million, an increase in noninterest expense of $2.4 million and an increase in provision for income taxes of $1.9 million.

Net Interest Income and Net Interest Margin

Interest income totaled $25.9 million for the second quarter of 2021, an increase of $3.2 million, or 14.2%, from the previous quarter, primarily due to a $225.9 million increase in average loan balances. We also recognized Paycheck Protection Program ("PPP") loan fee income of $1.7 million during the second quarter of 2021 compared to $1.1 million recognized during the first quarter of 2021. As compared to the second quarter of 2020, interest income for the second quarter of 2021 increased by $6.8 million, or 35.7%, primarily due to an increase in average loan balances of $648.8 million.

Interest expense totaled $1.1 million for the second quarter of 2021, a slight decrease of $75,000, or 6.6%, from the previous quarter, primarily due to a three basis points decrease in the cost of average money market deposits and a 12 basis points decrease in the cost of average time deposits. As compared to the second quarter of 2020, interest expense for the second quarter of 2021 decreased by $2.2 million, or 67.2%, primarily due to a 109 basis points decrease in deposit costs coupled with a $111.0 million decrease in higher cost average time deposits.

The net interest margin for the second and first quarter of 2021 was 4.60%. The cost of average interest-bearing liabilities for the second quarter of 2021 decreased by 7 basis points to 0.31% compared with the previous quarter, while the yield on average interest-earning assets for the second quarter of 2021 decreased by 6 basis points to 4.79% from 4.85% for the previous quarter. Average earning assets increased by $268.7 million from the previous quarter, primarily due to an increase in average loans of $225.9 million and a $43.9 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $176.0 million from the previous quarter as average interest-bearing deposits increased by $169.0 million and average borrowings increased by $7.0 million. The inclusion of PPP loan average balances, interest and fees had a 14 basis point impact on the yield on average loans and a 16 basis points impact on the net interest margin for the second quarter of 2021.

As compared to the same period in 2020, the net interest margin for the second quarter of 2021 increased by 51 basis points to 4.60% from 4.09%, primarily due to a 101 basis point decrease in the cost of average interest-bearing liabilities of $1.38 billion and a decrease of 14 basis points in the yield on average interest-earning assets of $2.17 billion. Average earning assets for the second quarter of 2021 increased by $610.0 million from the second quarter of 2020, primarily due to a $648.8 million increase in average loans, offset by a $40.0 million decrease in average securities purchased under agreements to resell. Average interest-bearing liabilities for the second quarter of 2021 increased by $394.7 million from the second quarter of 2020, driven by an increase in average interest-bearing deposits of $383.3 million and an increase in average borrowings of $11.3 million.

Noninterest Income

Noninterest income for the second quarter of 2021 was $8.6 million, an increase of $408,000, or 5.0%, from the first quarter of 2021, primarily due to higher mortgage loan fees and gains on sale of SBA loans, partially offset by decreases in mortgage and SBA servicing income. During the second quarter of 2021, we recorded a $624,000 fair value adjustment gain on our SBA servicing asset and a $603,000 fair value impairment charge on our mortgage servicing asset. These servicing asset adjustments had no impact on our diluted earnings per share for the quarter.

Compared to the same period in 2020, noninterest income for the second quarter of 2021 increased by $3.1 million, or 56.3%, primarily due to the increase in mortgage loan fees and gains on sale of SBA loans, partially offset by a decrease in mortgage servicing income. Mortgage loan originations totaled $326.5 million during the second quarter of 2021 compared to $48.9 million during the second quarter of 2020. There were no mortgage loan sales during the second quarter of 2021 or 2020.

Noninterest Expense

Noninterest expense for the second quarter of 2021 totaled $12.1 million, an increase of $1.4 million, or 12.9%, from $10.7 million for the first quarter of 2021. This increase was primarily attributable to higher salaries and employee benefits, professional fees and expenses related to other real estate owned. Compared to the second quarter of 2020, noninterest expense during the second quarter of 2021 increased by $2.4 million, or 24.4%, primarily due to higher salaries and employee benefits, loan related expenses and other real estate owned related expenses.

The Company's efficiency ratio was 36.2% for the second quarter of 2021 compared to 36.0% and 45.6% for the first quarter of 2021 and second quarter of 2020, respectively. For the six months ended June 30, 2021, the efficiency ratio was 36.1% compared with 44.3% for the same period in 2020.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2021 was 24.7%, compared to 25.5% for the first quarter of 2021 and 26.7% for the second quarter of 2020.

Balance Sheet

Total Assets

Total assets were $2.52 billion at June 30, 2021, an increase of $363.5 million, or 16.9%, from $2.15 billion at March 31, 2021, and an increase of $796.1 million, or 46.2%, from $1.72 billion at June 30, 2020. The $363.5 million increase in total assets at June 30, 2021 compared to March 31, 2021 was primarily due to increases in loans of $225.0 million and cash and due from banks of $139.5 million, partially offset by a $2.1 million increase in the allowance for loan losses. The $796.1 million increase in total assets at June 30, 2021 compared to June 30, 2020 was primarily due to increases in loans of $726.8 million, cash and due from banks of $101.0 million and bank owned life insurance of $15.8 million, partially offset by a decrease in the mortgage servicing asset of $6.5 million and an increase in the allowance for loan losses of $6.0 million. 

Loans

Loans held for investment were $2.09 billion at June 30, 2021, an increase of $225.0 million, or 12.1%, compared to $1.87 billion at March 31, 2021, and an increase of $726.8 million, or 53.2%, compared to $1.36 billion at June 30, 2020. The increase in loans held for investment at June 30, 2021 compared to March 31, 2021 was primarily due to a $249.5 million increase in residential mortgages, a $6.5 million increase in construction and development loans and a $2.4 million increase in commercial real estate loans, offset by a $32.8 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $93.1 million as of June 30, 2021. There were no loans classified as held for sale at June 30, 2021, March 31, 2021 or June 30, 2020.

Deposits

Total deposits were $1.97 billion at June 30, 2021, an increase of $228.9 million, or 13.1%, compared to total deposits of $1.75 billion at March 31, 2021, and an increase of $624.9 million, or 46.3%, compared to total deposits of $1.35 billion at June 30, 2020. The increase in total deposits at June 30, 2021 compared to March 31, 2021 was primarily due to the $71.9 million increase in noninterest-bearing demand deposits, $131.5 million increase in money market accounts, $9.5 million increase in interest-bearing demand deposits, and a $11.6 million increase in time deposits. The increase in money market accounts was primarily due to the increase of $119.6 million in brokered money market balances during the quarter.

Noninterest-bearing deposits were $618.1 million at June 30, 2021, compared to $546.2 million at March 31, 2021 and $449.2 million at June 30, 2020. Noninterest-bearing deposits constituted 31.3% of total deposits at June 30, 2021, compared to 31.3% at March 31, 2021 and 33.3% at June 30, 2020. Interest-bearing deposits were $1.36 billion at June 30, 2021, compared to $1.20 billion at March 31, 2021 and $900.7 million at June 30, 2020. Interest-bearing deposits constituted 68.7% of total deposits at June 30, 2021, compared to 68.7% at March 31, 2021 and 66.7% at June 30, 2020.

Asset Quality

The Company recorded a provision for loan losses of $2.2 million during the second quarter of 2021. Annualized net charge-offs to average loans for the second quarter of 2021 was 0.02%, compared to 0.00% for the first quarter of 2021 and 0.01% for the second quarter of 2020. We continue to include qualitative factors in our allowance for loan losses calculation in light of the continued economic uncertainties caused by the ongoing COVID-19 pandemic, partially resulting in the increased provision expense recorded during the second quarter of 2021 along with the growth in our loan portfolio. The Company is not required to implement the provisions of the current expected credit losses accounting standard issued by the Financial Accounting Standards Board in the Accounting Standards Update No. 2016-13 until January 1, 2023, and is continuing to account for the allowance for loan losses under the incurred loss model.

Nonperforming assets totaled $14.0 million, or 0.56% of total assets, at June 30, 2021, a decrease of $1.8 million from $15.8 million, or 0.73% of total assets, at March 31, 2021, and a slight increase of $378,000 from $13.7 million, or 0.79% of total assets, at June 30, 2020. The decrease in nonperforming assets at June 30, 2021 compared to March 31, 2021 was primarily due to a $2.4 million decrease in nonaccrual loans, partially offset by an $812,000 increase in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.66% at June 30, 2021, compared to 0.63% at March 31, 2021 and 0.58% at June 30, 2020. Excluding outstanding PPP loans of $93.1 million as of June 30, 2021, $125.6 million as of March 31, 2021 and $96.1 million as of June 30, 2020, the allowance for loan losses as a percentage of total loans was 0.69% at June 30, 2021, 0.67% at March 31, 2021 and 0.62% at June 30, 2020. Allowance for loan losses as a percentage of nonperforming loans was 147.82% at June 30, 2021, compared to 98.33% and 59.66% at March 31, 2021 and June 30, 2020, respectively.

COVID-19

As of June 30, 2021, we had six non-SBA commercial customers with outstanding loan balances totaling $15.3 million that were under approved payment deferrals. This is a decline from the active payment deferrals as of March 31, 2021 that were granted to nine non-SBA commercial customers with outstanding balances totaling $26.5 million. As of June 30, 2021, we had seven SBA loans with outstanding gross loan balances totaling $13.3 million ($3.3 million unguaranteed book balance) that were under approved payment deferrals.  As of July 20, 2021, the SBA had granted forgiveness on (1) PPP loans totaling $71.8 million, or 74.1% of PPP loans funded from the first round of PPP funding under the Coronavirus Aid, Relief and Economic Security Act, and (2) PPP loans totaling $3.9 million, or 6.3% of PPP loans funded under the Economic Aid Act.

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 19 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, including statements regarding the potential effects of the ongoing COVID-19 pandemic on our business and financial results and conditions, 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 of 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: general business and economic conditions, particularly those affecting the financial services; the impact of the ongoing COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the ongoing COVID-19 pandemic; changes in the interest rate environment, including changes to the federal funds rate; 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, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to, the ongoing COVID-19 pandemic; changes in tax laws; 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 related to the ongoing COVID-19 pandemic. 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	Chief Accounting 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 Six Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)		2021			2021			2020			2020			2020			2021			2020
Selected income statement data:
Interest income		$	25,888		$	22,672		$	19,839		$	18,131		$	19,083		$	48,560		$	39,639
Interest expense			1,063			1,138			1,411			2,192			3,240			2,201			7,886
Net interest income			24,825			21,534			18,428			15,939			15,843			46,359			31,753
Provision for loan losses			2,205			1,599			956			1,450			1,061			3,804			1,061
Noninterest income			8,594			8,186			6,138			7,964			5,500			16,780			13,109
Noninterest expense			12,093			10,708			11,077			10,150			9,724			22,801			19,873
Income tax expense			4,728			4,432			3,079			2,918			2,819			9,160			6,373
Net income			14,393			12,981			9,454			9,385			7,739			27,374			17,555
Per share data:
Basic income per share		$	0.56		$	0.51		$	0.37		$	0.37		$	0.30		$	1.07		$	0.69
Diluted income per share		$	0.56		$	0.50		$	0.37		$	0.36		$	0.30		$	1.06		$	0.68
Dividends per share		$	0.10		$	0.10		$	0.09		$	0.09		$	0.11		$	0.20		$	0.22
Book value per share (at period end)		$	10.33		$	9.95		$	9.54		$	9.23		$	8.94		$	10.33		$	8.94
Shares of common stock outstanding			25,578,668			25,674,573			25,674,573			25,674,067			25,674,067			25,578,668			25,674,067
Weighted average diluted shares			25,833,328			25,881,827			25,870,885			25,858,741			25,717,339			25,840,530			25,731,714
Performance ratios:
Return on average assets			2.53	%		2.62	%		2.14	%		2.20	%		1.89	%		2.57	%		2.16	%
Return on average equity			22.51			21.35			15.78			16.22			13.92			21.94			16.03
Dividend payout ratio			17.95			19.91			24.60			24.78			36.53			18.88			32.21
Yield on total loans			5.21			5.20			5.14			5.05			5.69			5.21			5.90
Yield on average earning assets			4.79			4.85			4.80			4.51			4.93			4.82			5.17
Cost of average interest bearing liabilities			0.31			0.38			0.56			0.91			1.32			0.34			1.56
Cost of deposits			0.29			0.36			0.55			0.94			1.38			0.32			1.63
Net interest margin			4.60			4.60			4.46			3.97			4.09			4.60			4.14
Efficiency ratio(1)			36.19			36.03			45.09			42.46			45.56			36.11			44.30
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			0.02	%		0.00	%		0.04	%		0.00	%		0.01	%		0.01	%		0.00	%
Nonperforming assets to gross loans and OREO			0.67			0.84			1.03			1.19			1.00			0.67			1.00
ALL to nonperforming loans			147.82			98.33			77.40			54.24			59.66			147.82			59.66
ALL to loans held for investment			0.66			0.63			0.62			0.64			0.58			0.66			0.58
Balance sheet and capital ratios:
Gross loans held for investment to deposits			106.31	%		107.33	%		110.48	%		109.50	%		101.48	%		106.31	%		101.48	%
Noninterest bearing deposits to deposits			31.30			31.28			31.28			34.44			33.28			31.30			33.28
Common equity to assets			10.50			11.85			12.90			13.63			13.32			10.50			13.32
Leverage ratio			11.14			12.23			13.44			13.44			13.44			11.14			13.44
Common equity tier 1 ratio			17.71			18.97			20.00			21.09			21.75			17.71			21.75
Tier 1 risk-based capital ratio			17.71			18.97			20.00			21.09			21.75			17.71			21.75
Total risk-based capital ratio			18.68			19.88			20.86			21.96			22.53			18.68			22.53
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	746,660		$	856,432		$	961,670		$	1,063,500		$	1,136,824		$	746,660		$	1,136,824
Mortgage loan production			326,507			263,698			194,951			120,337			48,850			590,205			168,926
Mortgage loan sales			—			—			—			—			—			—			92,737
SBA loans serviced for others			549,238			521,182			507,442			500,047			476,629			549,238			476,629
SBA loan production			67,376			80,466			34,631			52,742			114,899			147,842			158,435
SBA loan sales			34,158			22,399			25,505			37,923			35,247			56,557			65,205

________________________________________

(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
		June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands, except per share data)		2021			2021			2020			2020			2020
ASSETS
Cash and due from banks		$	309,289		$	169,775		$	140,744		$	109,263		$	208,325
Federal funds sold			4,644			4,444			9,944			17,268			7,444
Cash and cash equivalents			313,933			174,219			150,688			126,531			215,769
Securities purchased under agreements to resell			—			—			—			40,000			40,000
Securities available for sale (at fair value)			16,722			18,739			18,117			18,204			18,415
Loans			2,091,767			1,866,785			1,630,344			1,459,899			1,364,989
Allowance for loan losses			(13,860)			(11,735)			(10,135)			(9,339)			(7,894)
Loans less allowance for loan losses			2,077,907			1,855,050			1,620,209			1,450,560			1,357,095
Loans held for sale			—			—			—			—			—
Accrued interest receivable			10,668			10,515			10,671			7,999			8,270
Federal Home Loan Bank stock			8,451			3,951			6,147			5,723			4,873
Premises and equipment, net			13,557			13,663			13,854			14,083			14,231
Operating lease right-of-use asset			10,078			10,483			10,348			10,786			11,220
Foreclosed real estate, net			4,656			3,844			3,844			282			423
SBA servicing asset, net			11,155			10,535			9,643			10,173			8,446
Mortgage servicing asset, net			9,529			11,722			12,991			14,599			16,064
Bank owned life insurance			36,263			36,033			35,806			35,578			20,450
Other assets			4,921			5,606			5,171			5,355			6,501
Total assets		$	2,517,840		$	2,154,360		$	1,897,489		$	1,739,873		$	1,721,757
LIABILITIES
Noninterest-bearing deposits		$	618,054		$	546,164		$	462,909		$	460,679		$	449,185
Interest-bearing deposits			1,356,777			1,199,756			1,016,980			877,112			900,713
Total deposits			1,974,831			1,745,920			1,479,889			1,337,791			1,349,898
Federal Home Loan Bank advances			200,000			80,000			110,000			100,000			80,000
Other borrowings			474			479			483			491			3,060
Operating lease liability			10,648			11,048			10,910			11,342			11,769
Accrued interest payable			202			206			222			310			549
Other liabilities			67,431			61,332			51,154			52,843			47,060
Total liabilities		$	2,253,586		$	1,898,985		$	1,652,658		$	1,502,777		$	1,492,336
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			256			257			257			257			257
Additional paid-in capital			52,924			55,977			55,674			55,098			54,524
Retained earnings			210,910			199,102			188,705			181,576			174,518
Accumulated other comprehensive income (loss)			164			39			195			165			122
Total shareholders' equity			264,254			255,375			244,831			237,096			229,421
Total liabilities and shareholders' equity		$	2,517,840		$	2,154,360		$	1,897,489		$	1,739,873		$	1,721,757

 

METROCITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended															Six Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)		2021			2021			2020			2020			2020			2021			2020
Interest and dividend income:
Loans, including Fees		$	25,728		$	22,500		$	19,658		$	17,880		$	18,826		$	48,228		$	38,334
Other investment income			159			170			164			187			196			329			1,078
Federal funds sold			1			2			17			64			61			3			227
Total interest income			25,888			22,672			19,839			18,131			19,083			48,560			39,639
Interest expense:
Deposits			919			992			1,262			2,046			3,096			1,911			7,610
FHLB advances and other borrowings			144			146			149			146			144			290			276
Total interest expense			1,063			1,138			1,411			2,192			3,240			2,201			7,886
Net interest income			24,825			21,534			18,428			15,939			15,843			46,359			31,753
Provision for loan losses			2,205			1,599			956			1,450			1,061			3,804			1,061
Net interest income after provision for loan losses			22,620			19,935			17,472			14,489			14,782			42,555			30,692
Noninterest income:
Service charges on deposit accounts			411			373			350			309			277			784			653
Other service charges, commissions and fees			3,877			3,398			3,223			2,076			990			7,275			3,245
Gain on sale of residential mortgage loans			—			—			—			—			—			—			2,529
Mortgage servicing income, net			(957)			166			(82)			235			783			(791)			1,155
Gain on sale of SBA loans			2,845			1,854			1,625			2,265			1,276			4,699			2,577
SBA servicing income, net			1,905			2,133			724			2,931			1,959			4,038			2,475
Other income			513			262			298			148			215			775			475
Total noninterest income			8,594			8,186			6,138			7,964			5,500			16,780			13,109
Noninterest expense:
Salaries and employee benefits			6,915			6,699			6,822			6,416			5,749			13,614			12,262
Occupancy			1,252			1,275			1,293			1,302			1,277			2,527			2,488
Data Processing			283			308			313			287			201			591			478
Advertising			117			145			138			127			140			262			301
Other expenses			3,526			2,281			2,511			2,018			2,357			5,807			4,344
Total noninterest expense			12,093			10,708			11,077			10,150			9,724			22,801			19,873
Income before provision for income taxes			19,121			17,413			12,533			12,303			10,558			36,534			23,928
Provision for income taxes			4,728			4,432			3,079			2,918			2,819			9,160			6,373
Net income available to common shareholders		$	14,393		$	12,981		$	9,454		$	9,385		$	7,739		$	27,374		$	17,555

 

METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		June 30, 2021								March 31, 2021								June 30, 2020
		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)		$	169,578		$	76		0.18	%	$	125,699		$	72		0.23	%	$	167,059		$	97		0.23	%
Securities purchased under agreements to resell			—			—		—			—			—		—			40,000			57		0.57
Securities available for sale			17,080			84		1.97			18,164			100		2.23			18,410			103		2.25
Total investments			186,658			160		0.34			143,863			172		0.48			225,469			257		0.46
Construction and development			47,173			615		5.23			40,954			531		5.26			31,617			421		5.36
Commercial real estate			510,241			7,344		5.77			491,635			7,078		5.84			472,113			6,470		5.51
Commercial and industrial			146,408			2,558		7.01			152,433			1,920		5.11			111,629			2,076		7.48
Residential real estate			1,275,555			15,180		4.77			1,068,495			12,930		4.91			714,095			9,801		5.52
Consumer and other			179			31		69.46			174			41		95.56			1,275			58		18.30
Gross loans(2)			1,979,556			25,728		5.21			1,753,691			22,500		5.20			1,330,729			18,826		5.69
Total earning assets			2,166,214			25,888		4.79			1,897,554			22,672		4.85			1,556,198			19,083		4.93
Noninterest-earning assets			112,161								111,164								93,152
Total assets			2,278,375								2,008,718								1,649,350
Interest-bearing liabilities:
NOW and savings deposits			107,072			53		0.20			92,312			47		0.21			64,081			40		0.26
Money market deposits			659,173			373		0.23			534,192			337		0.26			207,785			393		0.76
Time deposits			521,217			493		0.38			491,913			608		0.50			632,257			2,663		1.69
Total interest-bearing deposits			1,287,462			919		0.29			1,118,417			992		0.36			904,123			3,096		1.38
Borrowings			94,435			144		0.61			87,483			146		0.68			83,096			144		0.70
Total interest-bearing liabilities			1,381,897			1,063		0.31			1,205,900			1,138		0.38			987,219			3,240		1.32
Noninterest-bearing liabilities:
Noninterest-bearing deposits			561,170								483,691								377,136
Other noninterest-bearing liabilities			78,822								72,534								61,449
Total noninterest-bearing liabilities			639,992								556,225								438,585
Shareholders' equity			256,486								246,593								223,546
Total liabilities and shareholders' equity		$	2,278,375							$	2,008,718							$	1,649,350
Net interest income					$	24,825							$	21,534							$	15,843
Net interest spread								4.48								4.47								3.61
Net interest margin								4.60								4.60								4.09

________________________________________
(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.
AVERAGE BALANCES AND YIELDS/RATES
		Six Months Ended
		June 30, 2021								June 30, 2020
		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)		$	147,760		$	149		0.20	%	$	180,214		$	899		1.00	%
Securities purchased under agreements to resell			—			—		—			36,016			197		1.10
Securities available for sale			17,619			183		2.09			17,537			209		2.40
Total investments			165,379			332		0.40			233,767			1,305		1.12
Construction and development			44,081			1,147		5.25			29,425			817		5.58
Commercial real estate			500,989			14,422		5.81			474,464			13,991		5.93
Commercial and industrial			149,403			4,478		6.04			85,781			3,055		7.16
Residential real estate			1,172,597			28,109		4.83			716,282			20,371		5.72
Consumer and other			177			72		82.03			1,430			100		14.06
Gross loans(2)			1,867,247			48,228		5.21			1,307,382			38,334		5.90
Total earning assets			2,032,626			48,560		4.82			1,541,149			39,639		5.17
Noninterest-earning assets			111,665								93,323
Total assets			2,144,291								1,634,472
Interest-bearing liabilities:
NOW and savings deposits			99,732			99		0.20			61,141			83		0.27
Money market deposits			597,028			711		0.24			198,524			1,062		1.08
Time deposits			506,646			1,101		0.44			679,145			6,465		1.91
Total interest-bearing deposits			1,203,406			1,911		0.32			938,810			7,610		1.63
Borrowings			90,978			290		0.64			79,486			276		0.70
Total interest-bearing liabilities			1,294,384			2,201		0.34			1,018,296			7,886		1.56
Noninterest-bearing liabilities:
Noninterest-bearing deposits			522,645								338,112
Other noninterest-bearing liabilities			75,695								57,887
Total noninterest-bearing liabilities			598,340								395,999
Shareholders' equity			251,567								220,177
Total liabilities and shareholders' equity		$	2,144,291							$	1,634,472
Net interest income					$	46,359							$	31,753
Net interest spread								4.48								3.61
Net interest margin								4.60								4.14

________________________________________
(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
		June 30, 2021					March 31, 2021					December 31, 2020					September 30, 2020					June 30, 2020
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and Development		$	58,668		2.8	%	$	52,202		2.8	%	$	45,653		2.8	%	$	38,607		2.6	%	$	42,847		3.1	%
Commercial Real Estate			475,658		22.7			473,281		25.3			477,419		29.2			447,596		30.6			429,019		31.3
Commercial and Industrial			134,076		6.4			166,915		8.9			137,239		8.4			146,880		10.0			141,540		10.3
Residential Real Estate			1,430,843		68.1			1,181,385		63.0			974,445		59.6			831,334		56.7			755,521		55.2
Consumer and other			169		—			169		—			183		—			505		0.1			967		0.1
Gross loans		$	2,099,414		100.0	%	$	1,873,952		100.0	%	$	1,634,939		100.0	%	$	1,464,922		100.0	%	$	1,369,894		100.0	%
Unearned income			(7,647)					(7,167)					(4,595)					(5,023)					(4,905)
Allowance for loan losses			(13,860)					(11,735)					(10,135)					(9,339)					(7,894)
Net loans		$	2,077,907				$	1,855,050				$	1,620,209				$	1,450,560				$	1,357,095

 

METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS
		As of the Quarter Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)		2021			2021			2020			2020			2020
Nonaccrual loans		$	6,623		$	9,071		$	10,203		$	9,730		$	10,335
Past due loans 90 days or more and still accruing			—			—			—			—			—
Accruing troubled debt restructured loans			2,753			2,863			2,891			7,487			2,896
Total non-performing loans			9,376			11,934			13,094			17,217			13,231
Other real estate owned			4,656			3,844			3,844			282			423
Total non-performing assets		$	14,032		$	15,778		$	16,938		$	17,499		$	13,654
Nonperforming loans to gross loans			0.45	%		0.64	%		0.80	%		1.18	%		0.97	%
Nonperforming assets to total assets			0.56			0.73			0.89			1.01			0.79
Allowance for loan losses to non-performing loans			147.82			98.33			77.40			54.24			59.66

 

METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES
		As of and for the Three Months Ended															As of and for the Six Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)		2021			2021			2020			2020			2020			2021			2020
Balance, beginning of period		$	11,735		$	10,135		$	9,339		$	7,894		$	6,859		$	10,135		$	6,839
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—			—			—
Commercial real estate			23			(3)			107			(3)			(3)			20			(5)
Commercial and industrial			60			4			51			—			—			64			(25)
Residential real estate			—			—			—			—			—			—			—
Consumer and other			(3)			(2)			2			8			29			(5)			36
Total net charge-offs/(recoveries)			80			(1)			160			5			26			79			6
Provision for loan losses			2,205			1,599			956			1,450			1,061			3,804			1,061
Balance, end of period		$	13,860		$	11,735		$	10,135		$	9,339		$	7,894		$	13,860		$	7,894
Total loans at end of period		$	2,099,414		$	1,873,952		$	1,634,939		$	1,464,922		$	1,369,894		$	2,099,414		$	1,369,894
Average loans(1)		$	1,979,556		$	1,753,691		$	1,522,150		$	1,407,670		$	1,330,729		$	1,867,247		$	1,278,784
Net charge-offs to average loans			0.02	%		0.00	%		0.04	%		0.00	%		0.01	%		0.01	%		0.00	%
Allowance for loan losses to total loans			0.66			0.63			0.62			0.64			0.58			0.66			0.58

________________________________________

(1)   Excludes loans held for sale

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What were the earnings per share for MCBS in Q2 2021?

MetroCity reported earnings per share of $0.56 for Q2 2021.

How much did MetroCity's total assets increase in Q2 2021?

Total assets increased by $363.5 million, or 16.9%.

What is the net income for MCBS for the first half of 2021?

Net income for the six months ended June 30, 2021, was $27.4 million.

How did the net interest margin change in Q2 2021 for MCBS?

The net interest margin remained stable at 4.60%.

What drove the increase in noninterest income for MCBS?

Increased mortgage loan fees and gains on sale of SBA loans drove the 5.0% QoQ increase.