METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2022

Rhea-AI Summary

MetroCity Bankshares, Inc. (MCBS) reported a net income of $19.4 million for Q1 2022, up 11.4% from Q4 2021 and 49.7% year-over-year. Net interest income increased by $1.0 million quarter-over-quarter, with total assets rising by $36.2 million to $3.14 billion. Loans grew by 1.8% to $2.55 billion, and deposits surged 5.3% to $2.38 billion. The efficiency ratio improved to 31.8% from 33.7% in Q4 2021. However, noninterest income decreased by 6.5% year-over-year.

Positive

• Net income increased to $19.4 million, up 11.4% from Q4 2021.
• Total assets rose by $36.2 million to $3.14 billion.
• Total deposits surged by $119.1 million, or 5.3%, to $2.38 billion.

Negative

• Noninterest income decreased by $530,000, or 6.5%, compared to Q1 2021.
• Annualized net charge-offs to average loans increased to 0.06%.

ATLANTA, April 22, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $19.4 million, or $0.76 per diluted share, for the first quarter of 2022, compared to $17.4 million, or $0.68 per diluted share, for the fourth quarter of 2021, and $13.0 million, or $0.50 per diluted share, for the first quarter of 2021.

First Quarter 2022 Highlights:

• Annualized return on average assets was 2.52%, compared to 2.33% for the fourth quarter of 2021 and 2.62% for the first quarter of 2021.
• Annualized return on average equity was 26.94%, compared to 24.80% for the fourth quarter of 2021 and 21.35% for the first quarter of 2021.
• Efficiency ratio of 31.8%, compared to 33.7% for the fourth quarter of 2021 and 36.0% for the first quarter of 2021.
• Total assets increased by $36.2 million, or 1.2%, to $3.14 billion from the previous quarter.
• Total loans, including loans held for sale, increased by $45.2 million, or 1.8%, to $2.55 billion from the previous quarter.
• Total deposits increased by $119.1 million, or 5.3%, to $2.38 billion from the previous quarter.

Results of Operations

Net Income

Net income was $19.4 million for the first quarter of 2022, an increase of $2.0 million, or 11.4%, from $17.4 million for the fourth quarter of 2021. This increase was due to an increase in net interest income of $1.0 million, a decrease in provision for loan losses of $442,000, an increase in noninterest income of $165,000, and a decrease in noninterest expense of $333,000. Net income increased $6.4 million, or 49.7%, in the first quarter of 2022 compared to net income of $13.0 million for the first quarter of 2021. This increase was due to an increase in net interest income of $9.1 million and a decrease in provision for loan losses of $1.5 million, offset by a decrease in noninterest income of $530,000, an increase in noninterest expense of $1.5 million and an increase in provision for income taxes of $2.2 million.

Net Interest Income and Net Interest Margin

Interest income totaled $32.0 million for the first quarter of 2022, an increase of $1.1 million, or 3.6%, from the previous quarter, primarily due to a seven basis points increase in the yield on average loans and a $98.8 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $503,000 during the first quarter of 2022 compared to $708,000 recognized during the fourth quarter of 2021. As compared to the first quarter of 2021, interest income for the first quarter of 2022 increased by $9.3 million, or 40.9%, primarily due to an increase in average loan balances of $798.5 million.

Interest expense totaled $1.3 million for the first quarter of 2022, an increase of $64,000, or 5.2%, from the previous quarter, primarily due to a $148.7 million increase in average interest-bearing deposits as deposit costs remained flat. As compared to the first quarter of 2021, interest expense for the first quarter of 2022 increased by $162,000, or 14.2%, primarily due to a $595.8 million increase in average interest-bearing deposit balances, partially offset with a nine basis points decrease in deposit costs.

The net interest margin for the first quarter of 2022 was 4.16% compared to 4.15% for the previous quarter, a slight increase of one basis point. The yield on average interest-earning assets for the first quarter of 2022 increased by two basis points to 4.34% from 4.32% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2022 remained flat at 0.24% compared with the previous quarter. Average earning assets increased by $156.3 million from the previous quarter, primarily due to an increase in average loans of $98.8 million and a $54.3 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $151.9 million from the previous quarter as average interest-bearing deposits increased by $148.7 million and average borrowings increased by $3.2 million. The inclusion of PPP loan average balances, interest and fees had a four basis points impact on both the yield on average loans and the net interest margin for the first quarter of 2022.

As compared to the same period in 2021, the net interest margin for the first quarter of 2022 decreased by 44 basis points to 4.16% from 4.60%, primarily due to a 51 basis point decrease in the yield on average interest-earning assets of $2.99 billion and a 14 basis point decrease in the cost of average interest-bearing liabilities of $2.18 billion. Average earning assets for the first quarter of 2022 increased by $1.09 billion from the first quarter of 2021, primarily due to a $798.5 million increase in average loans and a $273.9 million increase in average interest-earning cash accounts. Average interest-bearing liabilities for the first quarter of 2022 increased by $976.7 million from the first quarter of 2021, driven by an increase in average interest-bearing deposits of $595.8 million and an increase in average borrowings of $380.9 million.

Noninterest Income

Noninterest income for the first quarter of 2022 was $7.7 million, an increase of $165,000, or 2.2%, from the fourth quarter of 2021, primarily due to higher Small Business Administration ("SBA") servicing income and gains on sale of mortgage loans, offset by lower mortgage loan fees and gains on sale of SBA loans. During the first quarter of 2022, we recorded a $323,000 fair value adjustment gain on our SBA servicing asset and a $74,000 fair value impairment recovery on our mortgage servicing asset. These servicing asset adjustments had a $0.01 per share impact on our diluted earnings per share for the quarter.

Compared to the same period in 2021, noninterest income for the first quarter of 2022 decreased by $530,000, or 6.5%, primarily due to lower mortgage loan fees, SBA and mortgage servicing income, and gains on sale of SBA loans, offset by higher gains on sale of mortgage loans.

Noninterest Expense

Noninterest expense for the first quarter of 2022 totaled $12.2 million, a decrease of $333,000, or 2.7%, from $12.5 million for the fourth quarter of 2021. This decrease was primarily attributable to lower salaries and employee benefits partially due to a decrease in commissions earned as loan volume declined during the quarter. Compared to the first quarter of 2021, noninterest expense during the first quarter of 2022 increased by $1.5 million, or 13.7%, primarily due to higher salaries and employee benefits, professional fees and FDIC insurance premiums.

The Company's efficiency ratio was 31.8% for the first quarter of 2022 compared to 33.7% and 36.0% for the fourth quarter of 2021 and first quarter of 2021, respectively.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2022 was 25.3%, compared to 27.5% for the fourth quarter of 2021 and 25.5% for the first quarter of 2021.

Balance Sheet

Total Assets

Total assets were $3.14 billion at March 31, 2022, an increase of $36.2 million, or 1.2%, from $3.11 billion at December 31, 2021, and an increase of $988.0 million, or 45.9%, from $2.15 billion at March 31, 2021. The $36.2 million increase in total assets at March 31, 2022 compared to December 31, 2021 was primarily due to increases in loans held for investment of $7.2 million, loans held for sale of $37.9 million, bank owned life insurance of $8.4 million, and other assets of $6.7 million, partially offset by a $16.6 million decrease in cash and cash equivalents. The $988.0 million increase in total assets at March 31, 2022 compared to March 31, 2021 was primarily due to increases in loans of $645.5 million, cash and due from banks of $249.2 million and bank owned life insurance of $31.8 million, partially offset by a $4.8 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $4.9 million. 

Loans

Loans, including loans held for sale, were $2.55 billion at March 31, 2022, an increase of $45.2 million, or 1.8%, compared to $2.51 billion at December 31, 2021, and an increase of $683.4 million, or 36.6%, compared to $1.87 billion at March 31, 2021. The increase in loans at March 31, 2022 compared to December 31, 2021 was primarily due to a $46.5 million increase in commercial real estate loans and a $5.4 million increase in residential mortgages, offset by a $7.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $19.8 million as of March 31, 2022. PPP Loans totaled $31.0 million as of December 31, 2021 and $125.6 million as of March 31, 2021. Loans held for sale were $37.9 million at March 31, 2022. There were no loans classified as held for sale at December 31, 2021 or March 31, 2021.

Deposits

Total deposits were $2.38 billion at March 31, 2022, an increase of $119.1 million, or 5.3%, compared to total deposits of $2.26 billion at December 31, 2021, and an increase of $636.2 million, or 36.4%, compared to total deposits of $1.75 billion at March 31, 2021. The increase in total deposits at March 31, 2022 compared to December 31, 2021 was primarily due to a $23.2 million increase in noninterest-bearing demand deposits, a $129.7 million increase in money market accounts and a $29.9 million increase in interest-bearing demand deposits, offset by a $64.5 million decrease in time deposits.

Noninterest-bearing deposits were $615.7 million at March 31, 2022, compared to $592.4 million at December 31, 2021 and $546.2 million at March 31, 2021. Noninterest-bearing deposits constituted 25.8% of total deposits at March 31, 2022, compared to 26.2% at December 31, 2021 and 31.3% at March 31, 2021. Interest-bearing deposits were $1.77 billion at March 31, 2022, compared to $1.67 billion at December 31, 2021 and $1.20 billion at March 31, 2021. Interest-bearing deposits constituted 74.2% of total deposits at March 31, 2022, compared to 73.8% at December 31, 2021 and 68.7% at March 31, 2021.

Asset Quality

The Company recorded a provision for loan losses of $104,000 during the first quarter of 2022, compared to $546,000 during the fourth quarter of 2021 and $1.6 million during the first quarter of 2021. Annualized net charge-offs to average loans for the first quarter of 2022 was 0.06%, compared to 0.01% for the fourth quarter of 2021 and 0.00% for the first quarter of 2021. 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 $16.0 million, or 0.51% of total assets, at March 31, 2022, an increase of $553,000 from $15.4 million, or 0.50% of total assets, at December 31, 2021, and an increase of $191,000 from $15.8 million, or 0.73% of total assets, at March 31, 2021. The increase in nonperforming assets at March 31, 2022 compared to December 31, 2021 was due to a $747,000 increase in nonaccrual loans and a $204,000 increase in accruing troubled debt restructurings, offset by a $342,000 decrease in loans past due ninety days or more and still accruing an a $56,000 decrease in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.66% at March 31, 2022, compared to 0.67% at December 31, 2021 and 0.63% at March 31, 2021. Excluding outstanding PPP loans of $19.8 million as of March 31, 2022, $31.0 million as of December 31, 2021 and $125.6 million as of March 31, 2021, the allowance for loan losses as a percentage of total loans was 0.67% at March 31, 2022, 0.68% at December 31, 2021 and 0.67% at March 31, 2021. Allowance for loan losses as a percentage of nonperforming loans was 134.39% at March 31, 2022, compared to 143.69% and 98.33% at December 31, 2021 and March 31, 2021, 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, including statements regarding the potential effects of the ongoing COVID-19 pandemic and related variants 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 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 and related variants on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; 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; changes in tax laws; higher inflation and its impacts; 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 related to the ongoing COVID-19 pandemic and related variants. 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

 

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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)		2022			2021			2021			2021			2021
Selected income statement data:
Interest income		$	31,953		$	30,857		$	29,324		$	25,888		$	22,672
Interest expense			1,300			1,236			1,135			1,063			1,138
Net interest income			30,653			29,621			28,189			24,825			21,534
Provision for loan losses			104			546			2,579			2,205			1,599
Noninterest income			7,656			7,491			9,532			8,594			8,186
Noninterest expense			12,179			12,512			13,111			12,093			10,708
Income tax expense			6,597			6,609			5,149			4,728			4,432
Net income			19,429			17,445			16,882			14,393			12,981
Per share data:
Basic income per share		$	0.76		$	0.69		$	0.66		$	0.56		$	0.51
Diluted income per share		$	0.76		$	0.68		$	0.66		$	0.56		$	0.50
Dividends per share		$	0.15		$	0.14		$	0.12		$	0.10		$	0.10
Book value per share (at period end)		$	12.19		$	11.40		$	10.84		$	10.33		$	9.95
Shares of common stock outstanding			25,465,236			25,465,236			25,465,236			25,578,668			25,674,573
Weighted average diluted shares			25,719,035			25,720,128			25,729,043			25,833,328			25,881,827
Performance ratios:
Return on average assets			2.52	%		2.33	%		2.61	%		2.53	%		2.62	%
Return on average equity			26.94			24.80			25.23			22.51			21.35
Dividend payout ratio			19.76			20.52			18.24			17.95			19.91
Yield on total loans			5.00			4.93			5.16			5.21			5.20
Yield on average earning assets			4.34			4.32			4.75			4.79			4.85
Cost of average interest bearing liabilities			0.24			0.24			0.28			0.31			0.38
Cost of deposits			0.27			0.27			0.28			0.29			0.36
Net interest margin			4.16			4.15			4.57			4.60			4.60
Efficiency ratio(1)			31.79			33.71			34.76			36.19			36.03
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Nonperforming assets to gross loans and OREO			0.63			0.61			0.55			0.67			0.84
ALL to nonperforming loans			134.39			143.69			189.44			147.82			98.33
ALL to loans held for investment			0.66			0.67			0.69			0.66			0.63
Balance sheet and capital ratios:
Gross loans held for investment to deposits			105.72	%		110.98	%		112.15	%		106.31	%		107.33	%
Noninterest bearing deposits to deposits			25.84			26.18			30.32			31.30			31.28
Common equity to assets			9.88			9.34			10.04			10.50			11.85
Leverage ratio			9.46			9.44			10.34			11.14			12.23
Common equity tier 1 ratio			17.24			16.76			16.61			17.75			18.97
Tier 1 risk-based capital ratio			17.24			16.76			16.61			17.75			18.97
Total risk-based capital ratio			18.22			17.77			17.64			18.72			19.88
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	605,112		$	608,208		$	669,358		$	746,660		$	856,432
Mortgage loan production			162,933			237,195			368,790			326,507			263,698
Mortgage loan sales			56,987			—			—			—			—
SBA loans serviced for others			528,227			542,991			549,818			549,238			521,182
SBA loan production			50,689			52,727			85,265			67,376			80,466
SBA loan sales			22,898			30,169			37,984			34,158			22,399

(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)		2022			2021			2021			2021			2021
ASSETS
Cash and due from banks		$	418,988		$	432,523		$	250,995		$	309,289		$	169,775
Federal funds sold			5,743			8,818			2,294			4,644			4,444
Cash and cash equivalents			424,731			441,341			253,289			313,933			174,219
Equity securities			11,024			11,386			993			—			—
Securities available for sale (at fair value)			23,886			25,733			16,507			16,722			18,739
Loans			2,512,300			2,505,070			2,361,705			2,091,767			1,866,785
Allowance for loan losses			(16,674)			(16,952)			(16,445)			(13,860)			(11,735)
Loans less allowance for loan losses			2,495,626			2,488,118			2,345,260			2,077,907			1,855,050
Loans held for sale			37,928			—			—			—			—
Accrued interest receivable			10,644			11,052			10,737			10,668			10,515
Federal Home Loan Bank stock			15,806			19,701			12,201			8,451			3,951
Premises and equipment, net			12,814			13,068			13,302			13,557			13,663
Operating lease right-of-use asset			8,925			9,338			9,672			10,078			10,483
Foreclosed real estate, net			3,562			3,618			4,374			4,656			3,844
SBA servicing asset, net			10,554			10,234			10,916			11,155			10,535
Mortgage servicing asset, net			6,925			7,747			8,593			9,529			11,722
Bank owned life insurance			67,841			59,437			59,061			36,263			36,033
Other assets			12,051			5,385			5,323			4,921			5,606
Total assets		$	3,142,317		$	3,106,158		$	2,750,228		$	2,517,840		$	2,154,360
LIABILITIES
Noninterest-bearing deposits		$	615,650		$	592,444		$	640,312		$	618,054		$	546,164
Interest-bearing deposits			1,766,491			1,670,576			1,471,515			1,356,777			1,199,756
Total deposits			2,382,141			2,263,020			2,111,827			1,974,831			1,745,920
Federal Home Loan Bank advances			380,000			500,000			300,000			200,000			80,000
Other borrowings			405			459			468			474			479
Operating lease liability			9,445			9,861			10,241			10,648			11,048
Accrued interest payable			207			204			208			202			206
Other liabilities			59,709			42,391			51,330			67,431			61,332
Total liabilities		$	2,831,907		$	2,815,935		$	2,474,074		$	2,253,586		$	1,898,985
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			255			255			255			256			257
Additional paid-in capital			51,753			51,559			51,181			52,924			55,977
Retained earnings			254,165			238,577			224,711			210,910			199,102
Accumulated other comprehensive income (loss)			4,237			(168)			7			164			39
Total shareholders' equity			310,410			290,223			276,154			264,254			255,375
Total liabilities and shareholders' equity		$	3,142,317		$	3,106,158		$	2,750,228		$	2,517,840		$	2,154,360

 

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)		2022			2021			2021			2021			2021
Interest and dividend income:
Loans, including Fees		$	31,459		$	30,496		$	29,127		$	25,728		$	22,500
Other investment income			492			360			196			159			170
Federal funds sold			2			1			1			1			2
Total interest income			31,953			30,857			29,324			25,888			22,672
Interest expense:
Deposits			1,139			1,069			968			919			992
FHLB advances and other borrowings			161			167			167			144			146
Total interest expense			1,300			1,236			1,135			1,063			1,138
Net interest income			30,653			29,621			28,189			24,825			21,534
Provision for loan losses			104			546			2,579			2,205			1,599
Net interest income after provision for loan losses			30,549			29,075			25,610			22,620			19,935
Noninterest income:
Service charges on deposit accounts			481			466			446			411			373
Other service charges, commissions and fees			2,159			3,015			4,147			3,877			3,398
Gain on sale of residential mortgage loans			1,211			—			—			—			—
Mortgage servicing income, net			101			95			132			(957)			166
Gain on sale of SBA loans			1,568			2,895			3,358			2,845			1,854
SBA servicing income, net			1,644			634			1,212			1,905			2,133
Other income			492			386			237			513			262
Total noninterest income			7,656			7,491			9,532			8,594			8,186
Noninterest expense:
Salaries and employee benefits			7,096			7,819			8,679			6,915			6,699
Occupancy			1,227			1,206			1,295			1,252			1,275
Data Processing			277			252			257			283			308
Advertising			150			148			131			117			145
Other expenses			3,429			3,087			2,749			3,526			2,281
Total noninterest expense			12,179			12,512			13,111			12,093			10,708
Income before provision for income taxes			26,026			24,054			22,031			19,121			17,413
Provision for income taxes			6,597			6,609			5,149			4,728			4,432
Net income available to common shareholders		$	19,429		$	17,445		$	16,882		$	14,393		$	12,981

 

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METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		March 31, 2022								December 31, 2021								March 31, 2021
		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)		$	399,642		$	365		0.37	%	$	345,311		$	241		0.28	%	$	125,699		$	72		0.23	%
Investment securities			36,842			129		1.42			33,682			120		1.41			18,164			100		2.23
Total investments			436,484			494		0.46			378,993			361		0.38			143,863			172		0.48
Construction and development			30,583			377		5.00			50,142			639		5.06			40,954			531		5.26
Commercial real estate			549,132			7,887		5.82			524,770			7,680		5.81			491,635			7,078		5.84
Commercial and industrial			65,450			1,076		6.67			77,911			1,353		6.89			152,433			1,920		5.11
Residential real estate			1,906,847			22,074		4.69			1,800,390			20,804		4.58			1,068,495			12,930		4.91
Consumer and other			206			45		88.59			189			20		41.98			174			41		95.56
Gross loans(2)			2,552,218			31,459		5.00			2,453,402			30,496		4.93			1,753,691			22,500		5.20
Total earning assets			2,988,702			31,953		4.34			2,832,395			30,857		4.32			1,897,554			22,672		4.85
Noninterest-earning assets			142,042								140,594								111,164
Total assets			3,130,744								2,972,989								2,008,718
Interest-bearing liabilities:
NOW and savings deposits			187,259			75		0.16			136,102			64		0.19			92,312			47		0.21
Money market deposits			1,085,751			658		0.25			949,148			550		0.23			534,192			337		0.26
Time deposits			441,228			406		0.37			480,303			455		0.38			491,913			608		0.50
Total interest-bearing deposits			1,714,238			1,139		0.27			1,565,553			1,069		0.27			1,118,417			992		0.36
Borrowings			468,348			161		0.14			465,141			167		0.14			87,483			146		0.68
Total interest-bearing liabilities			2,182,586			1,300		0.24			2,030,694			1,236		0.24			1,205,900			1,138		0.38
Noninterest-bearing liabilities:
Noninterest-bearing deposits			588,343								592,300								483,691
Other noninterest-bearing liabilities			67,301								70,915								72,534
Total noninterest-bearing liabilities			655,644								663,215								556,225
Shareholders' equity			292,514								279,080								246,593
Total liabilities and shareholders' equity		$	3,130,744							$	2,972,989							$	2,008,718
Net interest income					$	30,653							$	29,621							$	21,534
Net interest spread								4.10								4.08								4.47
Net interest margin								4.16								4.15								4.60

(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, 2022					December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and Development		$	38,683		1.6	%	$	38,857		1.6	%	$	64,140		2.7	%	$	58,668		2.8	%	$	52,202		2.8	%
Commercial Real Estate			567,031		22.5			520,488		20.7			503,417		21.2			475,658		22.7			473,281		25.3
Commercial and Industrial			66,073		2.6			73,072		2.9			82,099		3.5			134,076		6.4			166,915		8.9
Residential Real Estate			1,846,434		73.3			1,879,012		74.8			1,718,593		72.6			1,430,843		68.1			1,181,385		63.0
Consumer and other			130		—			79		—			238		—			169		—			169		—
Gross loans		$	2,518,351		100.0	%	$	2,511,508		100.0	%	$	2,368,487		100.0	%	$	2,099,414		100.0	%	$	1,873,952		100.0	%
Unearned income			(6,051)					(6,438)					(6,782)					(7,647)					(7,167)
Allowance for loan losses			(16,674)					(16,952)					(16,445)					(13,860)					(11,735)
Net loans		$	2,495,626				$	2,488,118				$	2,345,260				$	2,077,907				$	1,855,050

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2022			2021			2021			2021			2021
Nonaccrual loans		$	9,506		$	8,759		$	5,955		$	6,623		$	9,071
Past due loans 90 days or more and still accruing			—			342			—			—			—
Accruing troubled debt restructured loans			2,901			2,697			2,726			2,753			2,863
Total non-performing loans			12,407			11,798			8,681			9,376			11,934
Other real estate owned			3,562			3,618			4,374			4,656			3,844
Total non-performing assets		$	15,969		$	15,416		$	13,055		$	14,032		$	15,778
Nonperforming loans to gross loans			0.49	%		0.47	%		0.37	%		0.45	%		0.64	%
Nonperforming assets to total assets			0.51			0.50			0.47			0.56			0.73
Allowance for loan losses to non-performing loans			134.39			143.69			189.44			147.82			98.33

 

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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)		2022			2021			2021			2021			2021
Balance, beginning of period		$	16,952		$	16,445		$	13,860		$	11,735		$	10,135
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—
Commercial real estate			(2)			39			(4)			23			(3)
Commercial and industrial			389			—			—			60			4
Residential real estate			—			—			—			—			—
Consumer and other			(5)			—			(2)			(3)			(2)
Total net charge-offs/(recoveries)			382			39			(6)			80			(1)
Provision for loan losses			104			546			2,579			2,205			1,599
Balance, end of period		$	16,674		$	16,952		$	16,445		$	13,860		$	11,735
Total loans at end of period		$	2,518,351		$	2,511,508		$	2,368,487		$	2,099,414		$	1,873,952
Average loans(1)		$	2,533,254		$	2,453,402		$	2,241,207		$	1,979,556		$	1,753,691
Net charge-offs to average loans			0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Allowance for loan losses to total loans			0.66			0.67			0.69			0.66			0.63

(1)	Excludes loans held for sale

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What is MetroCity Bankshares' net income for Q1 2022?

MetroCity Bankshares reported a net income of $19.4 million for Q1 2022.

How did total assets change in Q1 2022 for MCBS?

Total assets increased by $36.2 million to $3.14 billion in Q1 2022.

What was the change in total deposits for MetroCity Bankshares in Q1 2022?

Total deposits rose by $119.1 million, or 5.3%, to $2.38 billion in Q1 2022.

How did noninterest income perform in Q1 2022 for MCBS?

Noninterest income decreased by $530,000, or 6.5%, compared to Q1 2021.

What was the efficiency ratio for MetroCity Bankshares in Q1 2022?

The efficiency ratio improved to 31.8% for Q1 2022.