METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2021

Rhea-AI Summary

MetroCity Bankshares, Inc. (NASDAQ: MCBS) reported a net income of $17.4 million for Q4 2021, a rise from $16.9 million in Q3 2021 and $9.5 million in Q4 2020. The annual net income for 2021 reached $61.7 million, up 69.5% from 2020. Total assets increased by $355.9 million (12.9%) to $3.11 billion in Q4 2021, with loans rising by 6.1% to $2.51 billion. The efficiency ratio improved to 33.7%. However, the annualized return on average assets declined to 2.33%.

Positive

• Net income increased 69.5% year-over-year to $61.7 million in 2021.
• Total assets increased by 63.7% year-over-year.
• Loans increased by 53.7% year-over-year, totaling $2.51 billion.

Negative

• Annualized return on average assets decreased to 2.33% from 2.61% in Q3 2021.
• Net interest margin decreased to 4.15% from 4.57% in Q3 2021.

ATLANTA, Jan. 24, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $17.4 million, or $0.68 per diluted share, for the fourth quarter of 2021, compared to $16.9 million, or $0.66 per diluted share, for the third quarter of 2021, and $9.5 million, or $0.37 per diluted share, for the fourth quarter of 2020. For the year ended December 31, 2021, the Company reported net income of $61.7 million, or $2.39 per diluted share, compared to $36.4 million, or $1.41 per diluted share, for the year ended December 31, 2020.

Fourth Quarter 2021 Highlights:

• Annualized return on average assets was 2.33%, compared to 2.61% for the third quarter of 2021 and 2.14% for the fourth quarter of 2020.
• Annualized return on average equity was 24.80%, compared to 25.23% for the third quarter of 2021 and 15.78% for the fourth quarter of 2020.
• Efficiency ratio of 33.7%, compared to 34.8% for the third quarter of 2021 and 45.1% for the fourth quarter of 2020.
• Total assets increased by $355.9 million, or 12.9%, to $3.11 billion from the previous quarter.
• Total loans increased by $143.4 million, or 6.1%, to $2.51 billion from the previous quarter.
• Total deposits increased by $151.2 million, or 7.2%, to $2.26 billion from the previous quarter.

Full Year 2021 Highlights:

• Return on average assets was 2.51%, compared to 2.17% for 2020.
• Return on average equity was 23.55%, compared to 16.02% for 2020.
• Efficiency ratio of 35.1%, compared to 44.0% for 2020.
• Total assets increased by $1.21 billion, or 63.7%, to $3.11 billion from $1.90 billion at December 31, 2020.  
• Total loans increased by $874.7 million, or 53.7%, to $2.51 billion from $1.63 billion at December 31, 2020.
• Total deposits increased by $783.1 million, or 52.9%, to $2.26 billion from $1.48 billion at December 31, 2020.
• Net interest margin increased to 4.45% compared to 4.18% in 2020.

Results of Operations

Net Income

Net income was $17.4 million for the fourth quarter of 2021, an increase of $563,000, or 3.3%, from $16.9 million for the third quarter of 2021. This increase was due to an increase in net interest income of $1.4 million, a decrease in provision for loan losses of $2.0 million and a decrease in noninterest expense of $599,000, offset by a decrease in noninterest income of $2.0 million and an increase in provision for taxes of $1.5 million. Net income increased $8.0 million, or 84.5%, in the fourth quarter of 2021 compared to net income of $9.5 million for the fourth quarter of 2020. This increase was due to an increase in net interest income of $11.2 million, an increase in noninterest income of $1.3 million and a decrease in provision for loan losses of $410,000, offset by an increase in noninterest expense of $1.4 million and an increase in provision for income taxes of $3.5 million.

Net income was $61.7 million for the year ended December 31, 2021, an increase of $25.3 million, or 69.5%, from $36.4 million for the year ended December 31, 2020. This increase was due to an increase in net interest income of $38.0 million and an increase in noninterest income of $6.6 million, offset by an increase in provision for loan losses of $3.5 million, an increase in noninterest expense of $7.3 million and an increase in provision for taxes of $8.5 million.

Net Interest Income and Net Interest Margin

Interest income totaled $30.9 million for the fourth quarter of 2021, an increase of $1.5 million, or 5.2%, from the previous quarter, primarily due to a $212.2 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $708,000 during the fourth quarter of 2021 compared to $1.9 million recognized during the third quarter of 2021. As compared to the fourth quarter of 2020, interest income for the fourth quarter of 2021 increased by $11.0 million, or 55.5%, primarily due to an increase in average loan balances of $931.3 million.

Interest expense totaled $1.2 million for the fourth quarter of 2021, an increase of $101,000, or 8.9%, from the previous quarter, primarily due to a $186.1 million increase in average interest-bearing deposits as deposit costs remained relatively flat. As compared to the fourth quarter of 2020, interest expense for the fourth quarter of 2021 decreased by $175,000, or 12.4%, primarily due to a 28 basis points decrease in deposit costs.

The net interest margin for the fourth quarter of 2021 was 4.15% compared to 4.57% for the previous quarter, a decrease of 42 basis points. The yield on average interest-earning assets for the fourth quarter of 2021 decreased by 43 basis points to 4.32% from 4.75% for the previous quarter, while the cost of average interest-bearing liabilities for the fourth quarter of 2021 decreased by four basis points to 0.24% compared with the previous quarter. Average earning assets increased by $385.6 million from the previous quarter, primarily due to an increase in average loans of $212.2 million and a $157.0 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $410.5 million from the previous quarter as average interest-bearing deposits increased by $186.1 million and average borrowings increased by $224.4 million. The inclusion of PPP loan average balances, interest and fees had a six basis points impact on both the yield on average loans and the net interest margin for the fourth quarter of 2021.

As compared to the same period in 2020, the net interest margin for the fourth quarter of 2021 decreased by 31 basis points to 4.15% from 4.46%, primarily due to a 48 basis point decrease in the yield on average interest-earning assets of $2.83 billion and a 32 basis point decrease in the cost of average interest-bearing liabilities of $2.03 billion. Average earning assets for the fourth quarter of 2021 increased by $1.19 billion from the fourth quarter of 2020, primarily due to a $931.3 million increase in average loans and a $248.1 million increase in average interest-earning cash accounts. Average interest-bearing liabilities for the fourth quarter of 2021 increased by $1.04 billion from the fourth quarter of 2020, driven by an increase in average interest-bearing deposits of $658.5 million and an increase in average borrowings of $376.9 million.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $7.5 million, a decrease of $2.0 million, or 21.4%, from the third quarter of 2021, primarily due to lower mortgage loan fees, mortgage and Small Business Administration ("SBA") servicing income and gains on sale of SBA loans, partially offset by an increase in other income. Mortgage loan originations totaled $237.2 million during the fourth quarter of 2021 compared to $368.8 million during the third quarter of 2021. During the fourth quarter of 2021, we recorded a $676,000 fair value adjustment charge on our SBA servicing asset and a $460,000 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 2020, noninterest income for the fourth quarter of 2021 increased by $1.4 million, or 22.0%, primarily due to the increase in service charges on deposit accounts, mortgage servicing income and gains on sale of SBA loans, partially offset by a decrease in SBA servicing income.

Noninterest income for the year ended December 31, 2021 totaled $33.8 million, an increase of $6.6 million, or 24.2%, from the year ended December 31, 2020, primarily due to higher mortgage loan fees and gains on sale of SBA loans, offset by decreases in mortgage and SBA serving income and gains on sale of mortgage loans. Mortgage loan originations totaled $1.20 billion during the year ended December 31, 2021 compared to $484.2 million during the year ended December 31, 2020. There were no mortgage loan sales during the year ended December 31, 2021 compared to $92.7 million of mortgage loan sales during the year ended December 31, 2020.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 totaled $12.5 million, a decrease of $599,000, or 4.6%, from $13.1 million for the third quarter of 2021. This decrease was primarily attributable to lower salaries and employee benefits mainly due to a decrease in commissions earned as loan volume declined during the quarter. Compared to the fourth quarter of 2020, noninterest expense during the fourth quarter of 2021 increased by $1.4 million, or 13.0%, primarily due to higher salaries and employee benefits, loan related expenses and FDIC insurance premiums.

Noninterest expense for the year ended December 31, 2021 totaled $48.4 million, an increase of $7.3 million, or 17.8%, from $41.1 million for the year ended December 31, 2020. This increase was primarily attributable to higher salaries and employee benefits due to increased commissions earned from higher loan volume, loan and other real estate owned related expenses and FDIC insurance premiums.

The Company's efficiency ratio was 33.7% for the fourth quarter of 2021 compared to 34.8% and 45.1% for the third quarter of 2021 and fourth quarter of 2020, respectively. For the year ended December 31, 2021, the efficiency ratio was 35.1% compared with 44.0% for the same period in 2020.

Income Tax Expense

The Company's effective tax rate for the fourth quarter of 2021 was 27.5%, compared to 23.4% for the third quarter of 2021 and 24.6% for the fourth quarter of 2020. The effective tax rate for the year ended December 31, 2021 was 25.3% compared to 25.4% for the year ended December 31, 2020.

Balance Sheet

Total Assets

Total assets were $3.11 billion at December 31, 2021, an increase of $355.9 million, or 12.9%, from $2.75 billion at September 30, 2021, and an increase of $1.21 billion, or 63.7%, from $1.90 billion at December 31, 2020. The $355.9 million increase in total assets at December 31, 2021 compared to September 30, 2021 was primarily due to increases in loans of $143.4 million, cash and cash equivalents of $188.1 million, equity securities of $10.4 million and securities available for sale of $9.2 million. The $1.21 billion increase in total assets at December 31, 2021 compared to December 31, 2020 was primarily due to increases in loans of $874.7 million, cash and due from banks of $291.8 million and bank owned life insurance of $23.6 million, partially offset by a $5.2 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $6.8 million. 

Loans

Loans held for investment were $2.51 billion at December 31, 2021, an increase of $143.4 million, or 6.1%, compared to $2.36 billion at September 30, 2021, and an increase of $874.7 million, or 53.7%, compared to $1.63 billion at December 31, 2020. The increase in loans held for investment at December 31, 2021 compared to September 30, 2021 was primarily due to a $160.4 million increase in residential mortgages and a $17.1 million increase in commercial real estate loans, offset by a $25.3 million decrease in construction and development loans and a $9.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $31.0 million as of December 31, 2021. There were no loans classified as held for sale at December 31, 2021, September 30, 2021 or December 31, 2020.

Deposits

Total deposits were $2.26 billion at December 31, 2021, an increase of $151.2 million, or 7.2%, compared to total deposits of $2.11 billion at September 30, 2021, and an increase of $783.1 million, or 52.9%, compared to total deposits of $1.48 billion at December 31, 2020. The increase in total deposits at December 31, 2021 compared to September 30, 2021 was primarily due to a $181.4 million increase in money market accounts and a $46.9 million increase in interest-bearing demand deposits, offset by a $47.9 million decrease in noninterest-bearing demand deposits and $31.1 million decrease in time deposits.

Noninterest-bearing deposits were $592.4 million at December 31, 2021, compared to $640.3 million at September 30, 2021 and $462.9 million at December 31, 2020. Noninterest-bearing deposits constituted 26.2% of total deposits at December 31, 2021, compared to 30.3% at September 30, 2021 and 31.3% at December 31, 2020. Interest-bearing deposits were $1.67 billion at December 31, 2021, compared to $1.47 billion at September 30, 2021 and $1.02 billion at December 31, 2020. Interest-bearing deposits constituted 73.8% of total deposits at December 31, 2021, compared to 69.7% at September 30, 2021 and 68.7% at December 31, 2020.

Asset Quality

The Company recorded a provision for loan losses of $546,000 during the fourth quarter of 2021, compared to $2.6 million during the third quarter of 2021 and $956,000 during the fourth quarter of 2020. Annualized net charge-offs to average loans for the fourth quarter of 2021 was 0.01%, compared to 0.00% for the third quarter of 2021 and 0.04% for the fourth quarter of 2020. 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 $15.4 million, or 0.50% of total assets, at December 31, 2021, an increase of $2.3 million from $13.1 million, or 0.47% of total assets, at September 30, 2021, and a decrease of $1.5 million from $16.9 million, or 0.89% of total assets, at December 31, 2020. The increase in nonperforming assets at December 31, 2021 compared to September 30, 2021 was primarily due to a $2.8 million increase in nonaccrual loans and a $342,000 increase in loans past due ninety days or more and still accruing, offset by a $756,000 decrease in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.67% at December 31, 2021, compared to 0.69% at September 30, 2021 and 0.62% at December 31, 2020. Excluding outstanding PPP loans of $31.0 million as of December 31, 2021, $42.0 million as of September 30, 2021 and $92.4 million as of December 31, 2020, the allowance for loan losses as a percentage of total loans was 0.68% at December 31, 2021, 0.71% at September 30, 2021 and 0.66% at December 31, 2020. Allowance for loan losses as a percentage of nonperforming loans was 143.69% at December 31, 2021, compared to 189.44% and 77.40% at September 30, 2021 and December 31, 2020, respectively.

COVID-19

As of December 31, 2021, we had two non-SBA commercial customers with outstanding loan balances totaling $8.1 million that were under approved payment deferrals. This is consistent with the active payment deferrals as of September 30, 2021 that were granted to two non-SBA commercial customers with outstanding balances totaling $8.1 million. As of December 31, 2021, we had four SBA loans with outstanding gross loan balances totaling $6.5 million ($1.6 million unguaranteed book balance) that were under approved payment deferrals.  As of January 20, 2022, the SBA had granted forgiveness on (1) PPP loans totaling $95.1 million, or 98.0% 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 $34.9 million, or 56.3% 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 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; potential increases in the provision for loan losses resulting from the ongoing COVID-19 pandemic and related variants; 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 and related variants; 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 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

 

METROCITY BANKSHARES, INC.
SELECTED FINANCIAL DATA
		As of and for the Three Months Ended															As of and for the Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)		2021			2021			2021			2021			2020			2021			2020
Selected income statement data:
Interest income		$	30,857		$	29,324		$	25,888		$	22,672		$	19,839		$	108,741		$	77,609
Interest expense			1,236			1,135			1,063			1,138			1,411			4,572			11,489
Net interest income			29,621			28,189			24,825			21,534			18,428			104,169			66,120
Provision for loan losses			546			2,579			2,205			1,599			956			6,929			3,467
Noninterest income			7,491			9,532			8,594			8,186			6,138			33,803			27,211
Noninterest expense			12,512			13,111			12,093			10,708			11,077			48,424			41,100
Income tax expense			6,609			5,149			4,728			4,432			3,079			20,918			12,370
Net income			17,445			16,882			14,393			12,981			9,454			61,701			36,394
Per share data:
Basic income per share		$	0.69		$	0.66		$	0.56		$	0.51		$	0.37		$	2.41		$	1.42
Diluted income per share		$	0.68		$	0.66		$	0.56		$	0.50		$	0.37		$	2.39		$	1.41
Dividends per share		$	0.14		$	0.12		$	0.10		$	0.10		$	0.09		$	0.46		$	0.40
Book value per share (at period end)		$	11.40		$	10.84		$	10.33		$	9.95		$	9.54		$	11.40		$	9.54
Shares of common stock outstanding			25,465,236			25,465,236			25,578,668			25,674,573			25,674,573			25,465,236			25,674,573
Weighted average diluted shares			25,720,128			25,729,043			25,833,328			25,881,827			25,870,885			25,788,781			25,798,549
Performance ratios:
Return on average assets			2.33	%		2.61	%		2.53	%		2.62	%		2.14	%		2.51	%		2.17	%
Return on average equity			24.80			25.23			22.51			21.35			15.78			23.55			16.02
Dividend payout ratio			20.52			18.24			17.95			19.91			24.60			19.17			28.32
Yield on total loans			4.93			5.16			5.21			5.20			5.14			5.11			5.47
Yield on average earning assets			4.32			4.75			4.79			4.85			4.80			4.65			4.91
Cost of average interest bearing liabilities			0.24			0.28			0.31			0.38			0.56			0.29			1.15
Cost of deposits			0.27			0.28			0.29			0.36			0.55			0.29			1.20
Net interest margin			4.15			4.57			4.60			4.60			4.46			4.45			4.18
Efficiency ratio(1)			33.71			34.76			36.19			36.03			45.09			35.10			44.04
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			0.01	%		0.00	%		0.02	%		0.00	%		0.04	%		0.01	%		0.01	%
Nonperforming assets to gross loans and OREO			0.61			0.55			0.67			0.84			1.03			0.61			1.03
ALL to nonperforming loans			143.69			189.44			147.82			98.33			77.40			143.69			77.40
ALL to loans held for investment			0.67			0.69			0.66			0.63			0.62			0.67			0.62
Balance sheet and capital ratios:
Gross loans held for investment to deposits			110.98	%		112.15	%		106.31	%		107.33	%		110.48	%		110.98	%		110.48	%
Noninterest bearing deposits to deposits			26.18			30.32			31.30			31.28			31.28			26.18			31.28
Common equity to assets			9.34			10.04			10.50			11.85			12.90			9.34			12.90
Leverage ratio			9.44			10.34			11.14			12.23			13.44			9.44			13.44
Common equity tier 1 ratio			16.72			16.61			17.75			18.97			20.00			16.72			20.00
Tier 1 risk-based capital ratio			16.72			16.61			17.75			18.97			20.00			16.72			20.00
Total risk-based capital ratio			17.73			17.64			18.72			19.88			20.86			17.73			20.86
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	608,208		$	669,358		$	746,660		$	856,432		$	961,670		$	608,208		$	961,670
Mortgage loan production			237,195			368,790			326,507			263,698			194,951			1,196,190			484,214
Mortgage loan sales			—			—			—			—			—			—			92,737
SBA loans serviced for others			542,991			549,818			549,238			521,182			507,442			542,991			507,442
SBA loan production			52,727			85,265			67,376			80,466			34,631			285,834			245,719
SBA loan sales			30,169			37,984			34,158			22,399			25,505			124,710			128,633

(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
		December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands, except per share data)		2021			2021			2021			2021			2020
ASSETS
Cash and due from banks		$	432,523		$	250,995		$	309,289		$	169,775		$	140,744
Federal funds sold			8,818			2,294			4,644			4,444			9,944
Cash and cash equivalents			441,341			253,289			313,933			174,219			150,688
Equity securities			11,386			993			—			—			—
Securities available for sale (at fair value)			25,733			16,507			16,722			18,739			18,117
Loans			2,505,070			2,361,705			2,091,767			1,866,785			1,630,344
Allowance for loan losses			(16,952)			(16,445)			(13,860)			(11,735)			(10,135)
Loans less allowance for loan losses			2,488,118			2,345,260			2,077,907			1,855,050			1,620,209
Loans held for sale			—			—			—			—			—
Accrued interest receivable			11,052			10,737			10,668			10,515			10,671
Federal Home Loan Bank stock			19,701			12,201			8,451			3,951			6,147
Premises and equipment, net			13,068			13,302			13,557			13,663			13,854
Operating lease right-of-use asset			9,338			9,672			10,078			10,483			10,348
Foreclosed real estate, net			3,618			4,374			4,656			3,844			3,844
SBA servicing asset, net			10,234			10,916			11,155			10,535			9,643
Mortgage servicing asset, net			7,747			8,593			9,529			11,722			12,991
Bank owned life insurance			59,437			59,061			36,263			36,033			35,806
Other assets			5,385			5,323			4,921			5,606			5,171
Total assets		$	3,106,158		$	2,750,228		$	2,517,840		$	2,154,360		$	1,897,489
LIABILITIES
Noninterest-bearing deposits		$	592,444		$	640,312		$	618,054		$	546,164		$	462,909
Interest-bearing deposits			1,670,576			1,471,515			1,356,777			1,199,756			1,016,980
Total deposits			2,263,020			2,111,827			1,974,831			1,745,920			1,479,889
Federal Home Loan Bank advances			500,000			300,000			200,000			80,000			110,000
Other borrowings			459			468			474			479			483
Operating lease liability			9,861			10,241			10,648			11,048			10,910
Accrued interest payable			204			208			202			206			222
Other liabilities			42,391			51,330			67,431			61,332			51,154
Total liabilities		$	2,815,935		$	2,474,074		$	2,253,586		$	1,898,985		$	1,652,658
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			255			255			256			257			257
Additional paid-in capital			51,559			51,181			52,924			55,977			55,674
Retained earnings			238,577			224,711			210,910			199,102			188,705
Accumulated other comprehensive income (loss)			(168)			7			164			39			195
Total shareholders' equity			290,223			276,154			264,254			255,375			244,831
Total liabilities and shareholders' equity		$	3,106,158		$	2,750,228		$	2,517,840		$	2,154,360		$	1,897,489

 

 

METROCITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended															Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)		2021			2021			2021			2021			2020			2021			2020
Interest and dividend income:
Loans, including Fees		$	30,496		$	29,127		$	25,728		$	22,500		$	19,658		$	107,851		$	75,872
Other investment income			360			196			159			170			164			885			1,429
Federal funds sold			1			1			1			2			17			5			308
Total interest income			30,857			29,324			25,888			22,672			19,839			108,741			77,609
Interest expense:
Deposits			1,069			968			919			992			1,262			3,948			10,918
FHLB advances and other borrowings			167			167			144			146			149			624			571
Total interest expense			1,236			1,135			1,063			1,138			1,411			4,572			11,489
Net interest income			29,621			28,189			24,825			21,534			18,428			104,169			66,120
Provision for loan losses			546			2,579			2,205			1,599			956			6,929			3,467
Net interest income after provision for loan losses			29,075			25,610			22,620			19,935			17,472			97,240			62,653
Noninterest income:
Service charges on deposit accounts			466			446			411			373			350			1,696			1,312
Other service charges, commissions and fees			3,015			4,147			3,877			3,398			3,223			14,437			8,545
Gain on sale of residential mortgage loans			—			—			—			—			—			—			2,529
Mortgage servicing income, net			95			132			(957)			166			(82)			(564)			1,308
Gain on sale of SBA loans			2,895			3,358			2,845			1,854			1,625			10,952			6,467
SBA servicing income, net			634			1,212			1,905			2,133			724			5,884			6,130
Other income			386			237			513			262			298			1,398			920
Total noninterest income			7,491			9,532			8,594			8,186			6,138			33,803			27,211
Noninterest expense:
Salaries and employee benefits			7,819			8,679			6,915			6,699			6,822			30,112			25,500
Occupancy			1,206			1,295			1,252			1,275			1,293			5,028			5,083
Data Processing			252			257			283			308			313			1,100			1,078
Advertising			148			131			117			145			138			541			566
Other expenses			3,087			2,749			3,526			2,281			2,511			11,643			8,873
Total noninterest expense			12,512			13,111			12,093			10,708			11,077			48,424			41,100
Income before provision for income taxes			24,054			22,031			19,121			17,413			12,533			82,619			48,764
Provision for income taxes			6,609			5,149			4,728			4,432			3,079			20,918			12,370
Net income available to common shareholders		$	17,445		$	16,882		$	14,393		$	12,981		$	9,454		$	61,701		$	36,394

 

 

METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		December 31, 2021								September 30, 2021								December 31, 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)		$	345,311		$	241		0.28	%	$	188,296		$	111		0.23	%	$	97,228		$	70		0.29	%
Securities purchased under agreements to resell			—			—		—			—			—		—			7,826			13		0.66
Investment securities			33,682			120		1.41			17,244			86		1.98			17,983			98		2.17
Total investments			378,993			361		0.38			205,540			197		0.38			123,037			181		0.59
Construction and development			50,142			639		5.06			53,871			727		5.35			34,145			453		5.28
Commercial real estate			524,770			7,680		5.81			507,039			7,648		5.98			488,746			6,779		5.52
Commercial and industrial			77,911			1,353		6.89			102,813			2,576		9.94			138,021			1,376		3.97
Residential real estate			1,800,390			20,804		4.58			1,577,276			18,144		4.56			860,977			11,018		5.09
Consumer and other			189			20		41.98			208			32		61.04			261			32		48.78
Gross loans(2)			2,453,402			30,496		4.93			2,241,207			29,127		5.16			1,522,150			19,658		5.14
Total earning assets			2,832,395			30,857		4.32			2,446,747			29,324		4.75			1,645,187			19,839		4.80
Noninterest-earning assets			140,594								123,888								111,078
Total assets			2,972,989								2,570,635								1,756,265
Interest-bearing liabilities:
NOW and savings deposits			136,102			64		0.19			115,775			59		0.20			78,697			41		0.21
Money market deposits			949,148			550		0.23			757,654			432		0.23			346,193			328		0.38
Time deposits			480,303			455		0.38			506,049			477		0.37			482,162			893		0.74
Total interest-bearing deposits			1,565,553			1,069		0.27			1,379,478			968		0.28			907,052			1,262		0.55
Borrowings			465,141			167		0.14			240,704			167		0.28			88,208			149		0.67
Total interest-bearing liabilities			2,030,694			1,236		0.24			1,620,182			1,135		0.28			995,260			1,411		0.56
Noninterest-bearing liabilities:
Noninterest-bearing deposits			592,300								600,388								453,984
Other noninterest-bearing liabilities			70,915								84,568								68,702
Total noninterest-bearing liabilities			663,215								684,956								522,686
Shareholders' equity			279,080								265,497								238,319
Total liabilities and shareholders' equity		$	2,972,989							$	2,570,635							$	1,756,265
Net interest income					$	29,621							$	28,189							$	18,428
Net interest spread								4.08								4.47								4.24
Net interest margin								4.15								4.57								4.46

(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
		Year Ended
		December 31, 2021								December 31, 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)		$	207,771		$	500		0.24	%	$	147,431		$	1,056		0.72	%
Securities purchased under agreements to resell			—			—		—			29,932			271		0.91
Investment securities			21,573			390		1.81			17,806			410		2.30
Total investments			229,344			890		0.39			195,169			1,737		0.89
Construction and development			48,076			2,513		5.23			31,658			1,685		5.32
Commercial real estate			503,968			29,750		5.90			478,481			27,316		5.71
Commercial and industrial			119,640			8,407		7.03			112,313			5,301		4.72
Residential real estate			1,437,377			67,058		4.67			763,136			41,391		5.42
Consumer and other			188			123		65.43			989			179		18.10
Gross loans(2)			2,109,249			107,851		5.11			1,386,577			75,872		5.47
Total earning assets			2,338,593			108,741		4.65			1,581,746			77,609		4.91
Noninterest-earning assets			122,038								98,504
Total assets			2,460,631								1,680,250
Interest-bearing liabilities:
NOW and savings deposits			112,943			222		0.20			68,610			166		0.24
Money market deposits			726,268			1,693		0.23			248,633			1,731		0.70
Time deposits			499,856			2,033		0.41			596,325			9,021		1.51
Total interest-bearing deposits			1,339,067			3,948		0.29			913,568			10,918		1.20
Borrowings			223,027			624		0.28			82,955			571		0.69
Total interest-bearing liabilities			1,562,094			4,572		0.29			996,523			11,489		1.15
Noninterest-bearing liabilities:
Noninterest-bearing deposits			559,797								394,338
Other noninterest-bearing liabilities			76,727								62,153
Total noninterest-bearing liabilities			636,524								456,491
Shareholders' equity			262,013								227,236
Total liabilities and shareholders' equity		$	2,460,631							$	1,680,250
Net interest income					$	104,169							$	66,120
Net interest spread								4.36								3.76
Net interest margin								4.45								4.18

(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
		December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and Development		$	38,857		1.6	%	$	64,140		2.7	%	$	58,668		2.8	%	$	52,202		2.8	%	$	45,653		2.8	%
Commercial Real Estate			520,488		20.7			503,417		21.2			475,658		22.7			473,281		25.3			477,419		29.2
Commercial and Industrial			73,072		2.9			82,099		3.5			134,076		6.4			166,915		8.9			137,239		8.4
Residential Real Estate			1,879,012		74.8			1,718,593		72.6			1,430,843		68.1			1,181,385		63.0			974,445		59.6
Consumer and other			79		—			238		—			169		—			169		—			183		—
Gross loans		$	2,511,508		100.0	%	$	2,368,487		100.0	%	$	2,099,414		100.0	%	$	1,873,952		100.0	%	$	1,634,939		100.0	%
Unearned income			(6,438)					(6,782)					(7,647)					(7,167)					(4,595)
Allowance for loan losses			(16,952)					(16,445)					(13,860)					(11,735)					(10,135)
Net loans		$	2,488,118				$	2,345,260				$	2,077,907				$	1,855,050				$	1,620,209

 

 

METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS
		As of the Quarter Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)		2021			2021			2021			2021			2020
Nonaccrual loans		$	8,759		$	5,955		$	6,623		$	9,071		$	10,203
Past due loans 90 days or more and still accruing			342			—			—			—			—
Accruing troubled debt restructured loans			2,697			2,726			2,753			2,863			2,891
Total non-performing loans			11,798			8,681			9,376			11,934			13,094
Other real estate owned			3,618			4,374			4,656			3,844			3,844
Total non-performing assets		$	15,416		$	13,055		$	14,032		$	15,778		$	16,938
Nonperforming loans to gross loans			0.47	%		0.37	%		0.45	%		0.64	%		0.80	%
Nonperforming assets to total assets			0.50			0.47			0.56			0.73			0.89
Allowance for loan losses to non-performing loans			143.69			189.44			147.82			98.33			77.40

 

 

METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES
		As of and for the Three Months Ended															As of and for the Year Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)		2021			2021			2021			2021			2020			2021			2020
Balance, beginning of period		$	16,445		$	13,860		$	11,735		$	10,135		$	9,339		$	10,135		$	6,839
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—			—			—
Commercial real estate			39			(4)			23			(3)			107			55			99
Commercial and industrial			—			—			60			4			51			64			26
Residential real estate			—			—			—			—			—			—			—
Consumer and other			—			(2)			(3)			(2)			2			(7)			46
Total net charge-offs/(recoveries)			39			(6)			80			(1)			160			112			171
Provision for loan losses			546			2,579			2,205			1,599			956			6,929			3,467
Balance, end of period		$	16,952		$	16,445		$	13,860		$	11,735		$	10,135		$	16,952		$	10,135
Total loans at end of period		$	2,511,508		$	2,368,487		$	2,099,414		$	1,873,952		$	1,634,939		$	2,511,508		$	1,634,939
Average loans(1)		$	2,453,402		$	2,241,207		$	1,979,556		$	1,753,691		$	1,522,150		$	2,109,249		$	1,365,129
Net charge-offs to average loans			0.01	%		0.00	%		0.02	%		0.00	%		0.04	%		0.01	%		0.01	%
Allowance for loan losses to total loans			0.67			0.69			0.66			0.63			0.62			0.67			0.62

(1)	Excludes loans held for sale

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What was MetroCity Bankshares' net income for Q4 2021?

MetroCity Bankshares reported a net income of $17.4 million for Q4 2021.

How much did total assets increase for MetroCity Bankshares in Q4 2021?

Total assets increased by $355.9 million, or 12.9%, to $3.11 billion in Q4 2021.

What is the FY 2021 net income for MetroCity Bankshares?

The net income for MetroCity Bankshares for the year ended December 31, 2021, was $61.7 million.

What was the annualized return on average assets for MetroCity Bankshares?

The annualized return on average assets for MetroCity Bankshares was 2.33% in Q4 2021.

How much did loans increase for MetroCity Bankshares in Q4 2021?

Loans increased by $143.4 million, or 6.1%, to $2.51 billion in Q4 2021.