METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2023

Rhea-AI Summary

MetroCity Bankshares, Inc. (NASDAQ: MCBS) announced a net income of $15.7 million, or $0.62 per diluted share, for Q1 2023, rising by 54.5% from Q4 2022 but down 19.0% from Q1 2022. The annualized return on average assets improved to 1.87%, while the return on average equity rose to 18.09%. Despite a 4.6% increase in interest income to $46.0 million, net interest income fell by $2.7 million. Noninterest income surged 235.3% to $6.0 million, primarily due to gains on SBA loans. Total assets decreased slightly to $3.42 billion, with loans down 1.4% from Q4 2022. The efficiency ratio improved to 33.1%, reflecting better cost management.

Positive

• Net income increased by 54.5% from Q4 2022.
• Noninterest income surged 235.3% in Q1 2023.
• Efficiency ratio improved to 33.1%.

Negative

• Net income decreased by 19.0% from Q1 2022.
• Net interest income fell $2.7 million.
• Total assets decreased $8.2 million from Q4 2022.

ATLANTA, April 21, 2023 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $15.7 million, or $0.62 per diluted share, for the first quarter of 2023, compared to $10.2 million, or $0.40 per diluted share, for the fourth quarter of 2022, and $19.4 million, or $0.76 per diluted share, for the first quarter of 2022.

First Quarter 2023 Highlights:

• Annualized return on average assets was 1.87%, compared to 1.19% for the fourth quarter of 2022 and 2.52% for the first quarter of 2022.
• Annualized return on average equity was 18.09%, compared to 11.57% for the fourth quarter of 2022 and 26.94% for the first quarter of 2022.
• Efficiency ratio of 33.1%, compared to 40.3% for the fourth quarter of 2022 and 31.8% for the first quarter of 2022.
• Annualized net recoveries to average loans for the quarter was 0.00%, compared to a net recovery ratio of 0.01% for the fourth quarter of 2022 and a net charge-off ratio of 0.06% for the first quarter of 2022.

Results of Operations

Net Income

Net income was $15.7 million for the first quarter of 2023, an increase of $5.5 million, or 54.5%, from $10.2 million for the fourth quarter of 2022. This increase was due to an increase in noninterest income of $4.2 million, a decrease in noninterest expense of $1.7 million and a decrease in income tax expense of $3.5 million, offset by a decrease in net interest income of $2.7 million and an increase in provision for credit losses of $1.2 million. Net income decreased by $3.7 million, or 19.0%, in the first quarter of 2023 compared to net income of $19.4 million for the first quarter of 2022. This decrease was due to a decrease in net interest income of $4.4 million and a decrease in noninterest income of $1.6 million, offset by a decrease in noninterest expense of $1.5 million and a decrease in provision for income taxes of $757,000.

Net Interest Income and Net Interest Margin

Interest income totaled $46.0 million for the first quarter of 2023, an increase of $2.0 million, or 4.6%, from the previous quarter, primarily due to a 35 basis points increase in the loan yield coupled with a $34.0 million increase in average loan balances. As compared to the first quarter of 2022, interest income for the first quarter of 2023 increased by $14.0 million, or 43.9%, primarily due to an increase in average loan balances of $498.0 million coupled with an 85 basis points increase in the loan yield.

Interest expense totaled $19.7 million for the first quarter of 2023, an increase of $4.7 million, or 31.6%, from the previous quarter, primarily due to a 87 basis points increase in deposit costs and a 48 basis points increase in borrowing costs coupled with a $38.0 million increase in average interest-bearing deposits. As compared to the first quarter of 2022, interest expense for the first quarter of 2023 increased by $18.4 million, or 1,417.8%, due to a 321 basis points increase in deposit costs and a 223 basis points increase in borrowing costs coupled with a $308.5 million increase in average interest-bearing deposits.

The net interest margin for the first quarter of 2023 was 3.30% compared to 3.58% for the previous quarter, a decrease of 28 basis points. The yield on average interest-earning assets for the first quarter of 2023 increased by 34 basis points to 5.77% from 5.43% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2023 increased by 81 basis points to 3.30% from 2.49% for the previous quarter. Average earning assets increased by $19.6 million from the previous quarter, due to an increase in average loans of $34.0 million offset by a decrease in average total investments of $14.4 million. Average interest-bearing liabilities increased by $38.1 million from the previous quarter as average interest-bearing deposits increased by $38.0 million while average borrowings remained flat.

As compared to the same period in 2022, the net interest margin for the first quarter of 2023 decreased by 86 basis points to 3.30% from 4.16%, primarily due to a 306 basis point increase in the cost of average interest-bearing liabilities of $2.43 billion, offset by a 143 basis point increase in the yield on average interest-earning assets of $3.23 billion. Average earning assets for the first quarter of 2023 increased by $240.0 million from the first quarter of 2022, primarily due to a $498.0 million increase in average loans, offset by a $254.3 million decrease in average interest-earning cash accounts. Average interest-bearing liabilities for the first quarter of 2023 increased by $243.3 million from the first quarter of 2022, driven by an increase in average interest-bearing deposits of $308.5 million, offset by a decrease in average borrowings of $65.2 million.

Noninterest Income

Noninterest income for the first quarter of 2023 was $6.0 million, an increase of $4.2 million, or 235.3%, from the fourth quarter of 2022, primarily due to higher gains on sale of Small Business Administration ("SBA") loans, SBA servicing income and other income, partially offset by lower mortgage loan fees. SBA loan sales totaled $36.5 million during the first quarter of 2023 compared to no loan sales during the fourth quarter of 2022. Mortgage loan originations totaled $43.3 million during the first quarter 2023 compared to $88.0 million during the fourth quarter of 2022. During the first quarter of 2023, we recorded a $708,000 fair value adjustment gain on our SBA servicing asset which had a $0.02 per share impact on our diluted earnings per share for the quarter.

Compared to the same period in 2022, noninterest income for the first quarter of 2023 decreased by $1.6 million, or 21.4%, primarily due to lower mortgage loan fees as a result of lower volume and lower gains on sale of mortgage loans as no mortgage loans were sold during the first quarter of 2023.

Noninterest Expense

Noninterest expense for the first quarter of 2023 totaled $10.7 million, a decrease of $1.7 million, or 13.7%, from $12.4 million for the fourth quarter of 2022. This decrease was primarily attributable to a decrease in salaries and employee benefits partially due to lower commissions from lower loan volume, as well as lower loan related expenses and FDIC deposit insurance premiums. Compared to the first quarter of 2022, noninterest expense during the first quarter of 2023 decreased by $1.5 million, or 12.3%, primarily due to lower salaries and employee benefits, FDIC deposit insurance premiums and fair value losses on our equity securities.

The Company's efficiency ratio was 33.1 % for the first quarter of 2023 compared to 40.3% and 31.8% for the fourth quarter of 2022 and first quarter of 2022, respectively.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2023 was 27.1%, compared to 47.9% for the fourth quarter of 2022 and 25.3% for the first quarter of 2022. The significant elevated effective tax rate during the fourth quarter of 2022 was due to the re-allocation of state income tax apportionment schedules for prior year's tax returns, as well as corrections made for the treatments of prior year's state tax credits.

Balance Sheet

Total Assets

Total assets were $3.42 billion at March 31, 2023, a decrease of $8.2 million, or 0.2%, from $3.43 billion at December 31, 2022, and an increase of $276.7 million, or 8.8%, from $3.14 billion at March 31, 2022. The $8.2 million decrease in total assets at March 31, 2023 compared to December 31, 2022 was primarily due to decreases in loans of $43.7 million, federal funds sold of $20.6 million, other real estate owned of $3.6 million and other assets of $2.1 million, partially offset by an increase in cash and due from banks of $65.2 million. The $276.7 million increase in total assets at March 31, 2023 compared to March 31, 2022 was primarily due to increases in loans of $499.7 million and other assets of $24.4 million, partially offset by a $202.8 million decrease in cash and due from banks. 

Our investment securities portfolio made up only 0.87% of our total assets at March 31, 2023 compared to 0.86% and 1.11% at December 31, 2022 and March 31, 2022, respectively.

Loans

Loans held for investment were $3.01 billion at March 31, 2023, a decrease of $43.7 million, or 1.4%, compared to $3.06 billion at December 31, 2022, and an increase of $499.7 million, or 19.9%, compared to $2.51 billion at March 31, 2022. The decrease in loans at March 31, 2023 compared to December 31, 2022 was primarily due to a $21.0 million decrease in residential mortgage loans, a $17.3 million decrease in commercial real estate loans and a $7.0 million decrease in commercial and industrial loans, offset by a $1.4 million increase in construction and development loans. There were no loans classified as held for sale at March 31, 2023, December 31, 2022 or March 31, 2022.

Deposits

Total deposits were $2.64 billion at March 31, 2023, a decrease of $22.7 million, or 0.9%, compared to total deposits of $2.67 billion at December 31, 2022, and an increase of $262.0 million, or 11.0%, compared to total deposits of $2.38 billion at March 31, 2022. The decrease in total deposits at March 31, 2023 compared to December 31, 2022 was due to a $82.5 million decrease in money market accounts, a $34.7 million decrease in noninterest-bearing deposits and a $3.1 million decrease in savings accounts, offset by a $93.2 million increase in time deposits and a $4.4 million increase interest-bearing demand deposits.

Noninterest-bearing deposits were $577.3 million at March 31, 2023, compared to $612.0 million at December 31, 2022 and $615.7 million at March 31, 2022. Noninterest-bearing deposits constituted 21.8% of total deposits at March 31, 2023, compared to 22.9% at December 31, 2022 and 25.8% at March 31, 2022. Interest-bearing deposits were $2.07 billion at March 31, 2023, compared to $2.05 billion at December 31, 2022 and $1.77 billion at March 31, 2022. Interest-bearing deposits constituted 78.2% of total deposits at March 31, 2023, compared to 77.1% at December 31, 2022 and 74.2% at March 31, 2022.

Uninsured deposits were 31.9% of total deposits at March 31, 2023, compared to 32.5% and 27.4% at December 31, 2022 and March 31, 2022, respectively. As of March 31, 2023, we had $1.13 billion of available borrowing capacity at the Federal Home Loan Bank ($657.0 million), Federal Reserve Discount Window ($429.0 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

On January 1, 2023, the Company adopted ASC 326, which provides for an expected credit loss model, referred to as the "Current Expected Credit Loss" ("CECL") model. The adoption of this standard resulted in an increase to the allowance for loan losses of $5.1 million and the creation of an allowance for unfunded commitments of $239,000. These one-time cumulative adjustments resulted in a $3.9 million tax-effected decrease to retained earnings. 

The Company recorded no provision for credit losses during the first quarter of 2023, compared to a $1.2 million credit provision recorded during the fourth quarter of 2022 and a $104,000 provision expense recorded during the first quarter of 2022. Annualized net recoveries to average loans for the first quarter of 2023 was 0.00%, compared to a net recovery of 0.01% for the fourth quarter of 2022 and net charge-offs of 0.06% for the first quarter of 2022.

Nonperforming assets totaled $19.5 million, or 0.57% of total assets, at March 31, 2023, a decrease of $5.0 million from $24.5 million, or 0.71% of total assets, at December 31, 2022, and an increase of $3.5 million from $16.0 million, or 0.51% of total assets, at March 31, 2022. The decrease in nonperforming assets at March 31, 2023 compared to December 31, 2022 was primarily due to a $1.0 million decrease in nonaccrual loans and a $3.6 million decrease in other real estate owned.  

Allowance for credit losses as a percentage of total loans was 0.63% at March 31, 2023, compared to 0.45% at December 31, 2022 and 0.66% at March 31, 2022. Allowance for credit losses as a percentage of nonperforming loans was 101.22% at March 31, 2023, compared to 68.88% and 134.39% at December 31, 2022 and March 31, 2022, 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 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, 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 the recent 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; 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
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)		2023			2022			2022			2022			2022
Selected income statement data:
Interest income		$	45,965		$	43,945		$	38,297		$	33,025		$	31,953
Interest expense			19,732			14,995			8,509			2,805			1,300
Net interest income			26,233			28,950			29,788			30,220			30,653
Provision for credit losses			—			(1,168)			(1,703)			—			104
Noninterest income			6,016			1,794			5,101			4,653			7,656
Noninterest expense			10,679			12,379			12,688			13,119			12,179
Income tax expense			5,840			9,353			7,011			5,654			6,597
Net income			15,730			10,180			16,893			16,100			19,429
Per share data:
Basic income per share		$	0.63		$	0.40		$	0.66		$	0.63		$	0.76
Diluted income per share		$	0.62		$	0.40		$	0.66		$	0.63		$	0.76
Dividends per share		$	0.18		$	0.15		$	0.15		$	0.15		$	0.15
Book value per share (at period end)		$	14.04		$	13.88		$	13.76		$	12.69		$	12.19
Shares of common stock outstanding			25,143,675			25,169,709			25,370,417			25,451,125			25,465,236
Weighted average diluted shares			25,405,855			25,560,138			25,702,023			25,729,156			25,719,035
Performance ratios:
Return on average assets			1.87	%		1.19	%		2.07	%		2.16	%		2.52	%
Return on average equity			18.09			11.57			20.56			20.65			26.94
Dividend payout ratio			28.98			37.55			22.75			23.85			19.76
Yield on total loans			5.85			5.50			5.11			4.95			5.00
Yield on average earning assets			5.77			5.43			4.94			4.65			4.34
Cost of average interest bearing liabilities			3.30			2.49			1.51			0.56			0.24
Cost of deposits			3.48			2.61			1.48			0.55			0.27
Net interest margin			3.30			3.58			3.84			4.26			4.16
Efficiency ratio(1)			33.11			40.26			36.37			37.62			31.79
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			(0.00)	%		(0.01)	%		(0.00)	%		(0.00)	%		0.06	%
Nonperforming assets to gross loans and OREO			0.64			0.80			1.09			1.22			0.63
ACL to nonperforming loans			101.22			68.88			53.25			54.79			134.39
ACL to loans held for investment			0.63			0.45			0.50			0.60			0.66
Balance sheet and capital ratios:
Gross loans held for investment to deposits			114.27	%		114.94	%		116.21	%		115.86	%		105.72	%
Noninterest bearing deposits to deposits			21.83			22.95			23.43			25.87			25.84
Investment securities to assets			0.87			0.86			0.91			1.02			1.11
Common equity to assets			10.32			10.20			10.42			10.20			9.88
Leverage ratio			9.72			9.57			9.90			10.31			9.46
Common equity tier 1 ratio			16.55			15.99			16.18			16.70			17.24
Tier 1 risk-based capital ratio			16.55			15.99			16.18			16.70			17.24
Total risk-based capital ratio			17.50			16.68			16.94			17.60			18.22
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	506,012		$	526,719		$	550,587		$	589,500		$	605,112
Mortgage loan production			43,335			88,045			255,662			326,973			162,933
Mortgage loan sales			—			—			—			37,928			56,987
SBA loans serviced for others			485,663			465,120			489,120			504,894			528,227
SBA loan production			15,352			42,419			22,193			21,407			50,689
SBA loan sales			36,458			—			8,588			—			22,898

___________________________________
(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)		2023			2022			2022			2022			2022
ASSETS
Cash and due from banks		$	216,167		$	150,964		$	164,054		$	220,027		$	418,988
Federal funds sold			7,897			28,521			15,669			3,069			5,743
Cash and cash equivalents			224,064			179,485			179,723			223,096			424,731
Equity securities			10,428			10,300			10,452			10,778			11,024
Securities available for sale (at fair value)			19,174			19,245			19,978			21,394			23,886
Loans			3,012,020			3,055,689			2,978,318			2,770,020			2,512,300
Allowance for credit losses			(18,947)			(13,888)			(14,982)			(16,678)			(16,674)
Loans less allowance for credit losses			2,993,073			3,041,801			2,963,336			2,753,342			2,495,626
Loans held for sale			—			—			—			—			37,928
Accrued interest receivable			13,642			13,171			11,732			10,990			10,644
Federal Home Loan Bank stock			17,659			17,493			15,619			15,619			15,806
Premises and equipment, net			15,165			14,257			13,664			12,847			12,814
Operating lease right-of-use asset			8,030			8,463			8,835			8,518			8,925
Foreclosed real estate, net			766			4,328			4,328			3,562			3,562
SBA servicing asset, net			7,791			7,085			8,324			8,216			10,554
Mortgage servicing asset, net			3,205			3,973			4,975			6,090			6,925
Bank owned life insurance			69,565			69,130			68,697			68,267			67,841
Other assets			36,451			38,508			38,776			25,131			12,051
Total assets		$	3,419,013		$	3,427,239		$	3,348,439		$	3,167,850		$	3,142,317
LIABILITIES
Noninterest-bearing deposits		$	577,282		$	611,991		$	602,246		$	620,182		$	615,650
Interest-bearing deposits			2,066,811			2,054,847			1,968,607			1,776,826			1,766,491
Total deposits			2,644,093			2,666,838			2,570,853			2,397,008			2,382,141
Federal Home Loan Bank advances			375,000			375,000			375,000			375,000			380,000
Other borrowings			387			392			396			399			405
Operating lease liability			8,438			8,885			9,303			9,031			9,445
Accrued interest payable			3,681			2,739			1,489			703			207
Other liabilities			34,453			23,964			42,369			62,640			59,709
Total liabilities		$	3,066,052		$	3,077,818		$	2,999,410		$	2,844,781		$	2,831,907
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			251			252			254			255			255
Additional paid-in capital			45,044			45,298			48,914			49,831			51,753
Retained earnings			293,139			285,832			279,475			266,426			254,165
Accumulated other comprehensive income (loss)			14,527			18,039			20,386			6,557			4,237
Total shareholders' equity			352,961			349,421			349,029			323,069			310,410
Total liabilities and shareholders' equity		$	3,419,013		$	3,427,239		$	3,348,439		$	3,167,850		$	3,142,317

 

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)		2023			2022			2022			2022			2022
Interest and dividend income:
Loans, including Fees		$	43,982		$	41,783		$	37,263		$	32,310		$	31,459
Other investment income			1,939			2,116			1,011			711			492
Federal funds sold			44			46			23			4			2
Total interest income			45,965			43,945			38,297			33,025			31,953
Interest expense:
Deposits			17,376			13,071			6,964			2,384			1,139
FHLB advances and other borrowings			2,356			1,924			1,545			421			161
Total interest expense			19,732			14,995			8,509			2,805			1,300
Net interest income			26,233			28,950			29,788			30,220			30,653
Provision for credit losses			—			(1,168)			(1,703)			—			104
Net interest income after provision for loan losses			26,233			30,118			31,491			30,220			30,549
Noninterest income:
Service charges on deposit accounts			449			483			509			518			481
Other service charges, commissions and fees			874			1,243			2,676			3,647			2,159
Gain on sale of residential mortgage loans			—			—			—			806			1,211
Mortgage servicing income, net			(96)			(299)			(358)			(5)			101
Gain on sale of SBA loans			1,969			—			500			—			1,568
SBA servicing income, net			1,814			(72)			1,330			(1,077)			1,644
Other income			1,006			439			444			764			492
Total noninterest income			6,016			1,794			5,101			4,653			7,656
Noninterest expense:
Salaries and employee benefits			6,366			7,721			7,756			7,929			7,096
Occupancy			1,214			1,263			1,167			1,200			1,227
Data Processing			275			287			270			261			277
Advertising			146			172			158			126			150
Other expenses			2,678			2,936			3,337			3,603			3,429
Total noninterest expense			10,679			12,379			12,688			13,119			12,179
Income before provision for income taxes			21,570			19,533			23,904			21,754			26,026
Provision for income taxes			5,840			9,353			7,011			5,654			6,597
Net income available to common shareholders		$	15,730		$	10,180		$	16,893		$	16,100		$	19,429

 

METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		March 31, 2023								December 31, 2022								March 31, 2022
		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)		$	145,354		$	1,805		5.04	%	$	159,297		$	1,777		4.43	%	$	399,642		$	324		0.33	%
Investment securities			32,952			178		2.19			33,405			385		4.57			36,842			170		1.87
Total investments			178,306			1,983		4.51			192,702			2,162		4.45			436,484			494		0.46
Construction and development			39,097			523		5.43			40,244			575		5.67			30,583			377		5.00
Commercial real estate			672,109			13,979		8.44			628,641			12,387		7.82			549,132			7,887		5.82
Commercial and industrial			47,105			1,030		8.87			51,788			1,021		7.82			65,450			1,076		6.67
Residential real estate			2,291,699			28,422		5.03			2,295,309			27,773		4.80			1,906,847			22,074		4.69
Consumer and other			166			28		68.41			162			27		66.12			206			45		88.59
Gross loans(2)			3,050,176			43,982		5.85			3,016,144			41,783		5.50			2,552,218			31,459		5.00
Total earning assets			3,228,482			45,965		5.77			3,208,846			43,945		5.43			2,988,702			31,953		4.34
Noninterest-earning assets			175,110								177,040								142,042
Total assets			3,403,592								3,385,886								3,130,744
Interest-bearing liabilities:
NOW and savings deposits			166,962			648		1.57			173,214			531		1.22			187,259			75		0.16
Money market deposits			978,954			9,659		4.00			1,089,198			8,361		3.05			1,085,751			658		0.25
Time deposits			876,803			7,069		3.27			722,285			4,179		2.30			441,228			406		0.37
Total interest-bearing deposits			2,022,719			17,376		3.48			1,984,697			13,071		2.61			1,714,238			1,139		0.27
Borrowings			403,170			2,356		2.37			403,113			1,924		1.89			468,348			161		0.14
Total interest-bearing liabilities			2,425,889			19,732		3.30			2,387,810			14,995		2.49			2,182,586			1,300		0.24
Noninterest-bearing liabilities:
Noninterest-bearing deposits			578,978								597,250								588,343
Other noninterest-bearing liabilities			46,138								51,692								67,301
Total noninterest-bearing liabilities			625,116								648,942								655,644
Shareholders' equity			352,587								349,134								292,514
Total liabilities and shareholders' equity		$	3,403,592							$	3,385,886							$	3,130,744
Net interest income					$	26,233							$	28,950							$	30,653
Net interest spread								2.47								2.94								4.10
Net interest margin								3.30								3.58								4.16

___________________________________
(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, 2023					December 31, 2022					September 30, 2022					June 30, 2022					March 31, 2022
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and Development		$	49,209		1.6	%	$	47,779		1.6	%	$	51,300		1.7	%	$	45,042		1.6	%	$	38,683		1.6	%
Commercial Real Estate			639,951		21.2			657,246		21.4			608,700		20.4			581,234		20.9			567,031		22.5
Commercial and Industrial			46,208		1.5			53,173		1.7			52,693		1.8			57,843		2.1			66,073		2.6
Residential Real Estate			2,285,902		75.7			2,306,915		75.3			2,274,679		76.1			2,092,952		75.4			1,846,434		73.3
Consumer and other			50		—			216		—			198		—			165		—			130		—
Gross loans		$	3,021,320		100.0	%	$	3,065,329		100.0	%	$	2,987,570		100.0	%	$	2,777,236		100.0	%	$	2,518,351		100.0	%
Unearned income			(9,300)					(9,640)					(9,252)					(7,216)					(6,051)
Allowance for credit losses			(18,947)					(13,888)					(14,982)					(16,678)					(16,674)
Net loans		$	2,993,073				$	3,041,801				$	2,963,336				$	2,753,342				$	2,495,626

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2023			2022			2022			2022			2022
Nonaccrual loans		$	9,064		$	10,065		$	17,700		$	19,966		$	9,506
Past due loans 90 days or more and still accruing			—			180			—			—			—
Accruing restructured loans			9,654			9,919			10,437			10,474			2,901
Total non-performing loans			18,718			20,164			28,137			30,440			12,407
Other real estate owned			766			4,328			4,328			3,562			3,562
Total non-performing assets		$	19,484		$	24,492		$	32,465		$	34,002		$	15,969
Nonperforming loans to gross loans			0.62	%		0.66	%		0.94	%		1.10	%		0.49	%
Nonperforming assets to total assets			0.57			0.71			0.97			1.07			0.51
Allowance for credit losses to non-performing loans			101.22			68.88			53.25			54.79			134.39

 

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)		2023			2022			2022			2022			2022
Balance, beginning of period		$	13,888		$	14,982		$	16,678		$	16,674		$	16,952
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—
Commercial real estate			(2)			(2)			(1)			(2)			(2)
Commercial and industrial			(2)			(72)			(6)			(2)			389
Residential real estate			—			—			—			—			—
Consumer and other			—			—			—			—			(5)
Total net charge-offs/(recoveries)			(4)			(74)			(7)			(4)			382
Adoption of ASU 2016-13 (CECL)			5,055			—			—			—			—
Provision for credit losses			—			(1,168)			(1,703)			—			104
Balance, end of period		$	18,947		$	13,888		$	14,982		$	16,678		$	16,674
Total loans at end of period		$	3,021,320		$	3,065,329		$	2,987,570		$	2,777,236		$	2,518,351
Average loans(1)		$	3,050,176		$	3,016,144		$	2,891,934		$	2,597,019		$	2,533,254
Net charge-offs/(recoveries) to average loans			0.00	%		(0.01)	%		0.00	%		0.00	%		0.06	%
Allowance for credit losses to total loans			0.63			0.45			0.50			0.60			0.66

___________________________________
(1)	Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

FAQ

What is MetroCity Bankshares' net income for Q1 2023?

MetroCity Bankshares reported a net income of $15.7 million for Q1 2023.

How did MetroCity Bankshares' performance compare to Q1 2022?

Net income for Q1 2023 decreased by 19.0% from Q1 2022.

What was the efficiency ratio for MetroCity Bankshares in Q1 2023?

The efficiency ratio for Q1 2023 was 33.1%.

What changes occurred in MetroCity Bankshares' total assets in Q1 2023?

Total assets decreased by $8.2 million from Q4 2022.

How did net interest income change for MetroCity Bankshares in Q1 2023?

Net interest income fell by $2.7 million in Q1 2023.