METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2024
MetroCity Bankshares, Inc. (NASDAQ: MCBS) reported net income of $16.9 million, or $0.66 per diluted share, for Q2 2024, up from $14.6 million in Q1 2024 and $13.1 million in Q2 2023. Key highlights include:
- Annualized return on average assets: 1.89%
- Annualized return on average equity: 17.10%
- Efficiency ratio: 35.9%
- Net interest margin: 3.66%, up 42 basis points from Q1
The increase in net income was primarily due to higher interest income and lower interest expense. Total assets were $3.62 billion, down 0.9% from Q1 2024 but up 4.0% year-over-year. Loans held for investment decreased by 0.8% to $3.09 billion, while total deposits decreased by 2.4% to $2.75 billion compared to Q1 2024.
MetroCity Bankshares, Inc. (NASDAQ: MCBS) ha riportato un reddito netto di 16,9 milioni di dollari, ovvero 0,66 dollari per azione diluita, per il secondo trimestre del 2024, in aumento rispetto ai 14,6 milioni di dollari del primo trimestre 2024 e ai 13,1 milioni di dollari del secondo trimestre 2023. I principali risultati includono:
- Rendimento annualizzato su attivi medi: 1,89%
- Rendimento annualizzato su patrimonio medio: 17,10%
- Rapporto di efficienza: 35,9%
- Margine di interesse netto: 3,66%, in aumento di 42 punti base rispetto al primo trimestre
L'aumento del reddito netto è stato principalmente dovuto a un maggior reddito da interessi e a una minore spesa per interessi. Il totale delle attività era di 3,62 miliardi di dollari, in calo dello 0,9% rispetto al primo trimestre 2024, ma in aumento del 4,0% anno su anno. I prestiti detenuti per investimento sono diminuiti dello 0,8% a 3,09 miliardi di dollari, mentre i depositi totali sono diminuiti del 2,4% a 2,75 miliardi di dollari rispetto al primo trimestre 2024.
MetroCity Bankshares, Inc. (NASDAQ: MCBS) reportó un ingreso neto de 16,9 millones de dólares, o 0,66 dólares por acción diluida, para el segundo trimestre de 2024, un aumento respecto a los 14,6 millones de dólares del primer trimestre de 2024 y los 13,1 millones de dólares del segundo trimestre de 2023. Los aspectos destacados incluyen:
- Retorno anualizado sobre activos promedio: 1,89%
- Retorno anualizado sobre patrimonio promedio: 17,10%
- Ratio de eficiencia: 35,9%
- Margen de interés neto: 3,66%, un aumento de 42 puntos básicos con respecto al primer trimestre
El aumento en el ingreso neto se debió principalmente a un mayor ingreso por intereses y a un menor gasto por intereses. Los activos totales fueron de 3,62 mil millones de dólares, una disminución del 0,9% con respecto al primer trimestre de 2024, pero un aumento del 4,0% en comparación con el año anterior. Los préstamos mantenidos para inversión disminuyeron un 0,8% a 3,09 mil millones de dólares, mientras que los depósitos totales disminuyeron un 2,4% a 2,75 mil millones de dólares en comparación con el primer trimestre de 2024.
MetroCity Bankshares, Inc. (NASDAQ: MCBS)는 2024년 2분기 동안 순이익 1,690만 달러, 즉 희석 주당 0.66달러를 기록했다고 발표했습니다. 이는 2024년 1분기 1,460만 달러 및 2023년 2분기 1,310만 달러에서 증가한 수치입니다. 주요 하이라이트는 다음과 같습니다:
- 평균 자산에 대한 연환산 수익률: 1.89%
- 평균 자기자본에 대한 연환산 수익률: 17.10%
- 효율성 비율: 35.9%
- 순이자 마진: 3.66%, 1분기 대비 42 베이시스 포인트 증가
순이익 증가의 주요 원인은 이자 수익 증가와 이자 비용 감소 때문입니다. 총 자산은 36억 2천만 달러로, 2024년 1분기 대비 0.9% 감소했으나 전년 대비 4.0% 증가했습니다. 투자용으로 보유한 대출은 30억 9천만 달러로 0.8% 감소했으며, 총 예금은 2024년 1분기 대비 2.4% 감소한 27억 5천만 달러입니다.
MetroCity Bankshares, Inc. (NASDAQ: MCBS) a annoncé un revenu net de 16,9 millions de dollars, soit 0,66 dollar par action diluée, pour le deuxième trimestre 2024, en hausse par rapport à 14,6 millions de dollars au premier trimestre 2024 et 13,1 millions de dollars au deuxième trimestre 2023. Les faits marquants comprennent :
- Rendement annualisé sur les actifs moyens : 1,89%
- Rendement annualisé sur les capitaux propres moyens : 17,10%
- Taux d'efficacité : 35,9%
- Marge d'intérêt nette : 3,66%, en hausse de 42 points de base par rapport au premier trimestre
L'augmentation du revenu net est principalement due à des revenus d'intérêts plus élevés et à des charges d'intérêts plus faibles. Les actifs totaux s'élevaient à 3,62 milliards de dollars, soit une baisse de 0,9% par rapport au premier trimestre 2024, mais une augmentation de 4,0% par rapport à l'année précédente. Les prêts détenus pour investissement ont diminué de 0,8% à 3,09 milliards de dollars, tandis que les dépôts totaux ont diminué de 2,4% à 2,75 milliards de dollars par rapport au premier trimestre 2024.
MetroCity Bankshares, Inc. (NASDAQ: MCBS) berichtete über ein Nettoergebnis von 16,9 Millionen Dollar, was 0,66 Dollar pro verwässerter Aktie für das 2. Quartal 2024 entspricht. Dies stellt einen Anstieg im Vergleich zu 14,6 Millionen Dollar im 1. Quartal 2024 und 13,1 Millionen Dollar im 2. Quartal 2023 dar. Wichtige Höhepunkte sind:
- Annualisierter Gesamtertrag auf durchschnittliche Vermögenswerte: 1,89%
- Annualisierter Gesamtertrag auf durchschnittliches Eigenkapital: 17,10%
- Effizienzquote: 35,9%
- Nettozinsertrag: 3,66%, um 42 Basispunkte im Vergleich zum 1. Quartal gestiegen
Der Anstieg des Nettoergebnisses war hauptsächlich auf höhere Zinserträge und niedrigere Zinsaufwendungen zurückzuführen. Die Gesamtsumme der Vermögenswerte betrug 3,62 Milliarden Dollar, was einem Rückgang um 0,9% im Vergleich zum 1. Quartal 2024 entspricht, jedoch einem Anstieg um 4,0% im Jahresvergleich. Die für Investitionen gehaltenen Kredite sanken um 0,8% auf 3,09 Milliarden Dollar, während die Gesamteinlagen im Vergleich zum 1. Quartal 2024 um 2,4% auf 2,75 Milliarden Dollar sanken.
- Net income increased by 15.8% quarter-over-quarter and 29.2% year-over-year
- Net interest margin improved by 42 basis points to 3.66%
- Efficiency ratio improved to 35.9% from 37.9% in Q1 2024
- Annualized return on average assets and equity increased to 1.89% and 17.10% respectively
- Total assets decreased by 0.9% compared to Q1 2024
- Loans held for investment decreased by 0.8% quarter-over-quarter
- Total deposits decreased by 2.4% compared to Q1 2024
- Nonperforming assets increased to 0.75% of total assets, up from 0.68% in Q2 2023
Insights
MetroCity Bankshares' second quarter earnings report displays significant improvement across multiple financial metrics. The net income growth to
The net interest margin (NIM) increase to 3.66% from 3.24% last quarter indicates more effective asset and liability management. The NIM is a important metric for banks, reflecting the difference between interest income generated and interest paid out, which directly impacts profitability.
Additionally, the efficiency ratio of 35.9% is notably lower compared to previous quarters, reflecting better cost control. This is particularly important in the banking sector, where operating costs can significantly impact net income.
However, it’s worth noting the noninterest expense increase of 5.4%, which could indicate rising operational costs. Investors should monitor whether these are one-time expenses or part of an ongoing trend.
Overall, the financial performance improvements are encouraging, but watching how the bank manages increasing expenses will be key moving forward.
MetroCity Bankshares’ report highlights a positive trend in asset quality. The decrease in nonperforming assets to $27.0 million from $30.3 million last quarter, alongside a credit provision of
The decrease in loans held for sale and interest-bearing liabilities suggests a strategic shift in the bank's asset allocation, which can be seen as a move to optimize profitability. However, the slight decrease in total loans held for investment by
The growth in noninterest income by
Despite the overall positive performance, the increase in salary and employee benefits suggests rising operational costs that investors should keep an eye on. Balancing income growth with expense management will be critical for sustained performance.
Second Quarter 2024 Highlights:
- Annualized return on average assets was
1.89% , compared to1.65% for the first quarter of 2024 and1.55% for the second quarter of 2023. - Annualized return on average equity was
17.10% , compared to15.41% for the first quarter of 2024 and14.87% for the second quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was18.26% for the second quarter of 2024, compared to16.27% for the first quarter of 2024 and15.50% for the second quarter of 2023. - Efficiency ratio of
35.9% , compared to37.9% for the first quarter of 2024 and38.7% for the second quarter of 2023. - Net interest margin increased by 42 basis points to
3.66% from3.24% for the previous quarter.
Year-to-Date 2024 Highlights:
- Return on average assets was
1.77% for the six months ended June 30, 2024, compared to1.71% for the same period in 2023. - Return on average equity was
16.27% for the six months ended June 30, 2024, compared to16.47% for the same period in 2023. Excluding average accumulated other comprehensive income, our return on average equity was17.28% for the six months ended June 30, 2024, compared to17.27% for the same period in 2023. - Efficiency ratio of
36.8% for the six months ended June 30, 2024, compared to35.9% for the same period in 2023. - Net interest margin increased by 25 basis points to
3.45% from3.20% for the same period in 2023.
Results of Operations
Net Income
Net income was
Net income was
Net Interest Income and Net Interest Margin
Interest income totaled
Interest expense totaled
The net interest margin for the second quarter of 2024 was
As compared to the same period in 2023, the net interest margin for the second quarter of 2024 increased by 56 basis points to
Noninterest Income
Noninterest income for the second quarter of 2024 was
Compared to the same period in 2023, noninterest income for the second quarter of 2024 increased by
Noninterest income for the six months ended June 30, 2024 totaled
Noninterest Expense
Noninterest expense for the second quarter of 2024 totaled
Noninterest expense for the six months ended June 30, 2024 totaled
The Company's efficiency ratio was
Income Tax Expense
The Company's effective tax rate for the second quarter of 2024 was
Balance Sheet
Total Assets
Total assets were
Our investment securities portfolio made up only
Loans
Loans held for investment were
Deposits
Total deposits were
Noninterest-bearing deposits were
Uninsured deposits were
Asset Quality
The Company recorded a credit provision for credit losses of
Nonperforming assets totaled
Allowance for credit losses as a percentage of total loans was
About MetroCity Bankshares, Inc.
MetroCity Bankshares, Inc. is a
Forward-Looking Statements
Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company's profitability; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from
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 Six Months Ended | |||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Interest income | $ | 54,108 | $ | 52,358 | $ | 50,671 | $ | 48,709 | $ | 47,482 | $ | 106,466 | $ | 93,447 | ||||||||
Interest expense | 23,396 | 25,273 | 24,549 | 24,555 | 22,512 | 48,669 | 42,244 | |||||||||||||||
Net interest income | 30,712 | 27,085 | 26,122 | 24,154 | 24,970 | 57,797 | 51,203 | |||||||||||||||
Provision for credit losses | (128) | (140) | 782 | (381) | (416) | (268) | (416) | |||||||||||||||
Noninterest income | 5,559 | 5,568 | 4,712 | 2,657 | 4,691 | 11,127 | 10,835 | |||||||||||||||
Noninterest expense | 13,032 | 12,361 | 13,915 | 11,540 | 11,464 | 25,393 | 22,271 | |||||||||||||||
Income tax expense | 6,430 | 5,801 | 4,790 | 4,224 | 5,505 | 12,232 | 11,345 | |||||||||||||||
Net income | 16,937 | 14,631 | 11,347 | 11,428 | 13,108 | 31,567 | 28,838 | |||||||||||||||
Per share data: | ||||||||||||||||||||||
Basic income per share | $ | 0.67 | $ | 0.58 | $ | 0.45 | $ | 0.45 | $ | 0.52 | $ | 1.25 | $ | 1.15 | ||||||||
Diluted income per share | $ | 0.66 | $ | 0.57 | $ | 0.44 | $ | 0.45 | $ | 0.51 | $ | 1.24 | $ | 1.13 | ||||||||
Dividends per share | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.40 | $ | 0.36 | ||||||||
Book value per share (at period end) | $ | 16.08 | $ | 15.73 | $ | 15.14 | $ | 15.24 | $ | 14.76 | $ | 16.08 | $ | 14.76 | ||||||||
Shares of common stock outstanding | 25,331,916 | 25,205,506 | 25,205,506 | 25,241,157 | 25,279,846 | 25,331,916 | 25,279,846 | |||||||||||||||
Weighted average diluted shares | 25,568,333 | 25,548,089 | 25,543,861 | 25,591,874 | 25,477,143 | 25,547,171 | 25,468,941 | |||||||||||||||
Performance ratios: | ||||||||||||||||||||||
Return on average assets | 1.89 | % | 1.65 | % | 1.29 | % | 1.30 | % | 1.55 | % | 1.77 | % | 1.71 | % | ||||||||
Return on average equity | 17.10 | 15.41 | 11.71 | 12.14 | 14.87 | 16.27 | 16.47 | |||||||||||||||
Dividend payout ratio | 30.03 | 34.77 | 40.36 | 40.18 | 34.77 | 32.23 | 31.61 | |||||||||||||||
Yield on total loans | 6.46 | 6.34 | 6.11 | 5.98 | 5.95 | 6.40 | 5.90 | |||||||||||||||
Yield on average earning assets | 6.45 | 6.27 | 6.14 | 5.92 | 5.90 | 6.36 | 5.84 | |||||||||||||||
Cost of average interest bearing liabilities | 3.68 | 3.94 | 3.91 | 3.97 | 3.74 | 3.81 | 3.52 | |||||||||||||||
Cost of deposits | 3.63 | 3.97 | 3.95 | 4.05 | 3.88 | 3.80 | 3.69 | |||||||||||||||
Net interest margin | 3.66 | 3.24 | 3.17 | 2.94 | 3.10 | 3.45 | 3.20 | |||||||||||||||
Efficiency ratio(1) | 35.93 | 37.86 | 45.13 | 43.04 | 38.65 | 36.84 | 35.84 | |||||||||||||||
Asset quality data (at period end): | ||||||||||||||||||||||
Net charge-offs/(recoveries) to average loans held for investment | (0.01) | % | (0.00) | % | 0.04 | % | (0.00) | % | 0.06 | % | (0.01) | % | 0.03 | % | ||||||||
Nonperforming assets to gross loans held for investment and OREO | 0.87 | 0.97 | 1.22 | 1.25 | 0.78 | 0.87 | 0.78 | |||||||||||||||
ACL to nonperforming loans | 70.16 | 62.37 | 49.06 | 47.61 | 79.88 | 70.16 | 79.88 | |||||||||||||||
ACL to loans held for investment | 0.58 | 0.58 | 0.57 | 0.58 | 0.60 | 0.58 | 0.60 | |||||||||||||||
Balance sheet and capital ratios: | ||||||||||||||||||||||
Gross loans held for investment to deposits | 112.85 | % | 110.97 | % | 115.38 | % | 111.77 | % | 112.27 | % | 112.85 | % | 112.27 | % | ||||||||
Noninterest bearing deposits to deposits | 20.54 | 19.43 | 18.75 | 20.58 | 21.32 | 20.54 | 21.32 | |||||||||||||||
Investment securities to assets | 0.78 | 0.78 | 0.82 | 0.79 | 0.84 | 0.78 | 0.84 | |||||||||||||||
Common equity to assets | 11.26 | 10.87 | 10.89 | 10.96 | 10.74 | 11.26 | 10.74 | |||||||||||||||
Leverage ratio | 10.57 | 10.27 | 10.20 | 10.07 | 10.03 | 10.57 | 10.03 | |||||||||||||||
Common equity tier 1 ratio | 18.00 | 16.96 | 16.73 | 17.03 | 16.69 | 18.00 | 16.69 | |||||||||||||||
Tier 1 risk-based capital ratio | 18.00 | 16.96 | 16.73 | 17.03 | 16.69 | 18.00 | 16.69 | |||||||||||||||
Total risk-based capital ratio | 18.87 | 17.81 | 17.60 | 17.91 | 17.59 | 18.87 | 17.59 | |||||||||||||||
Mortgage and SBA loan data: | ||||||||||||||||||||||
Mortgage loans serviced for others | $ | 529,823 | $ | 443,905 | $ | 443,072 | $ | 464,823 | $ | 487,787 | $ | 529,823 | $ | 487,787 | ||||||||
Mortgage loan production | 94,056 | 94,016 | 128,931 | 91,891 | 72,830 | 188,072 | 116,165 | |||||||||||||||
Mortgage loan sales | 111,424 | 21,873 | — | — | — | 133,297 | — | |||||||||||||||
SBA/USDA loans serviced for others | 486,051 | 516,425 | 508,000 | 487,827 | 493,579 | 486,051 | 493,579 | |||||||||||||||
SBA loan production | 8,297 | 11,397 | 27,529 | 18,212 | 16,110 | 19,694 | 42,349 | |||||||||||||||
SBA loan sales | — | 24,065 | — | 5,169 | 30,298 | 24,065 | 66,756 |
______________________________________________ | |
(1) | Represents noninterest expense divided by the sum of net interest income plus noninterest income. |
METROCITY BANKSHARES, INC. | |||||||||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
As of the Quarter Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
(Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 325,026 | $ | 254,331 | $ | 142,152 | $ | 279,106 | $ | 250,503 | |||||
Federal funds sold | 2,833 | 4,505 | 2,653 | 2,951 | 12,224 | ||||||||||
Cash and cash equivalents | 327,859 | 258,836 | 144,805 | 282,057 | 262,727 | ||||||||||
Equity securities | 10,276 | 10,288 | 10,335 | 10,113 | 10,358 | ||||||||||
Securities available for sale (at fair value) | 17,825 | 18,057 | 18,493 | 17,664 | 18,696 | ||||||||||
Loans held for investment | 3,090,498 | 3,115,871 | 3,142,105 | 3,029,947 | 3,020,714 | ||||||||||
Allowance for credit losses | (17,960) | (17,982) | (18,112) | (17,660) | (18,091) | ||||||||||
Loans less allowance for credit losses | 3,072,538 | 3,097,889 | 3,123,993 | 3,012,287 | 3,002,623 | ||||||||||
Loans held for sale | — | 72,610 | 22,267 | — | — | ||||||||||
Accrued interest receivable | 15,286 | 15,686 | 15,125 | 14,612 | 13,877 | ||||||||||
Federal Home Loan Bank stock | 20,251 | 19,063 | 17,846 | 17,846 | 15,534 | ||||||||||
Premises and equipment, net | 18,160 | 18,081 | 18,132 | 17,459 | 16,374 | ||||||||||
Operating lease right-of-use asset | 7,599 | 8,030 | 8,472 | 7,340 | 7,761 | ||||||||||
Foreclosed real estate, net | 1,452 | 1,452 | 1,466 | 761 | 1,001 | ||||||||||
SBA servicing asset, net | 7,108 | 7,611 | 7,251 | 7,107 | 8,018 | ||||||||||
Mortgage servicing asset, net | 1,454 | 937 | 1,273 | 1,823 | 2,514 | ||||||||||
Bank owned life insurance | 72,061 | 71,492 | 70,957 | 70,462 | 70,010 | ||||||||||
Interest rate derivatives | 36,196 | 38,682 | 31,781 | 46,502 | 39,284 | ||||||||||
Other assets | 7,305 | 8,505 | 10,627 | 4,994 | 6,310 | ||||||||||
Total assets | $ | 3,615,370 | $ | 3,647,219 | $ | 3,502,823 | $ | 3,511,027 | $ | 3,475,087 | |||||
LIABILITIES | |||||||||||||||
Noninterest-bearing deposits | $ | 564,076 | $ | 546,760 | $ | 512,045 | $ | 559,540 | $ | 575,301 | |||||
Interest-bearing deposits | 2,181,784 | 2,267,098 | 2,218,891 | 2,159,048 | 2,123,181 | ||||||||||
Total deposits | 2,745,860 | 2,813,858 | 2,730,936 | 2,718,588 | 2,698,482 | ||||||||||
Federal Home Loan Bank advances | 375,000 | 350,000 | 325,000 | 325,000 | 325,000 | ||||||||||
Other borrowings | — | — | — | — | 387 | ||||||||||
Operating lease liability | 7,743 | 8,189 | 8,651 | 7,537 | 7,985 | ||||||||||
Accrued interest payable | 3,482 | 3,059 | 4,133 | 3,915 | 3,859 | ||||||||||
Other liabilities | 76,057 | 75,509 | 52,586 | 71,283 | 66,211 | ||||||||||
Total liabilities | $ | 3,208,142 | $ | 3,250,615 | $ | 3,121,306 | $ | 3,126,323 | $ | 3,101,924 | |||||
SHAREHOLDERS' EQUITY | |||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||
Common stock | 253 | 252 | 252 | 252 | 253 | ||||||||||
Additional paid-in capital | 46,644 | 46,105 | 45,699 | 45,580 | 45,516 | ||||||||||
Retained earnings | 336,749 | 324,900 | 315,356 | 308,589 | 301,752 | ||||||||||
Accumulated other comprehensive income | 23,582 | 25,347 | 20,210 | 30,283 | 25,642 | ||||||||||
Total shareholders' equity | 407,228 | 396,604 | 381,517 | 384,704 | 373,163 | ||||||||||
Total liabilities and shareholders' equity | $ | 3,615,370 | $ | 3,647,219 | $ | 3,502,823 | $ | 3,511,027 | $ | 3,475,087 |
METROCITY BANKSHARES, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||
Interest and dividend income: | |||||||||||||||||||||
Loans, including fees | $ | 50,527 | $ | 50,117 | $ | 47,367 | $ | 45,695 | $ | 44,839 | $ | 100,644 | $ | 88,821 | |||||||
Other investment income | 3,547 | 2,211 | 3,267 | 2,979 | 2,582 | 5,758 | 4,521 | ||||||||||||||
Federal funds sold | 34 | 30 | 37 | 35 | 61 | 64 | 105 | ||||||||||||||
Total interest income | 54,108 | 52,358 | 50,671 | 48,709 | 47,482 | 106,466 | 93,447 | ||||||||||||||
Interest expense: | |||||||||||||||||||||
Deposits | 19,735 | 22,105 | 21,691 | 21,736 | 19,804 | 41,840 | 37,180 | ||||||||||||||
FHLB advances and other borrowings | 3,661 | 3,168 | 2,858 | 2,819 | 2,708 | 6,829 | 5,064 | ||||||||||||||
Total interest expense | 23,396 | 25,273 | 24,549 | 24,555 | 22,512 | 48,669 | 42,244 | ||||||||||||||
Net interest income | 30,712 | 27,085 | 26,122 | 24,154 | 24,970 | 57,797 | 51,203 | ||||||||||||||
Provision for credit losses | (128) | (140) | 782 | (381) | (416) | (268) | (416) | ||||||||||||||
Net interest income after provision for loan losses | 30,840 | 27,225 | 25,340 | 24,535 | 25,386 | 58,065 | 51,619 | ||||||||||||||
Noninterest income: | |||||||||||||||||||||
Service charges on deposit accounts | 532 | 447 | 515 | 490 | 464 | 979 | 913 | ||||||||||||||
Other service charges, commissions and fees | 1,573 | 1,612 | 2,039 | 1,478 | 1,266 | 3,185 | 2,140 | ||||||||||||||
Gain on sale of residential mortgage loans | 1,177 | 222 | — | — | — | 1,399 | — | ||||||||||||||
Mortgage servicing income, net | 1,107 | 229 | 39 | (85) | (51) | 1,336 | (147) | ||||||||||||||
Gain on sale of SBA loans | — | 1,051 | — | 244 | 1,054 | 1,051 | 3,023 | ||||||||||||||
SBA servicing income, net | 560 | 1,496 | 1,324 | 270 | 1,388 | 2,056 | 3,202 | ||||||||||||||
Other income | 610 | 511 | 795 | 260 | 570 | 1,121 | 1,704 | ||||||||||||||
Total noninterest income | 5,559 | 5,568 | 4,712 | 2,657 | 4,691 | 11,127 | 10,835 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||||
Salaries and employee benefits | 8,048 | 7,370 | 8,971 | 6,864 | 7,103 | 15,418 | 13,469 | ||||||||||||||
Occupancy | 1,334 | 1,354 | 1,368 | 1,272 | 1,039 | 2,688 | 2,253 | ||||||||||||||
Data Processing | 353 | 294 | 301 | 300 | 353 | 647 | 628 | ||||||||||||||
Advertising | 157 | 172 | 160 | 143 | 165 | 329 | 311 | ||||||||||||||
Other expenses | 3,140 | 3,171 | 3,115 | 2,961 | 2,804 | 6,311 | 5,610 | ||||||||||||||
Total noninterest expense | 13,032 | 12,361 | 13,915 | 11,540 | 11,464 | 25,393 | 22,271 | ||||||||||||||
Income before provision for income taxes | 23,367 | 20,432 | 16,137 | 15,652 | 18,613 | 43,799 | 40,183 | ||||||||||||||
Provision for income taxes | 6,430 | 5,801 | 4,790 | 4,224 | 5,505 | 12,232 | 11,345 | ||||||||||||||
Net income available to common shareholders | $ | 16,937 | $ | 14,631 | $ | 11,347 | $ | 11,428 | $ | 13,108 | $ | 31,567 | $ | 28,838 |
METROCITY BANKSHARES, INC. | |||||||||||||||||||||||||
QTD AVERAGE BALANCES AND YIELDS/RATES | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||||
Average | Interest and | Yield / | Average | Interest and | Yield / | Average | Interest and | Yield / | |||||||||||||||||
(Dollars in thousands) | Balance | Fees | Rate | Balance | Fees | Rate | Balance | Fees | Rate | ||||||||||||||||
Earning Assets: | |||||||||||||||||||||||||
Federal funds sold and other investments(1) | $ | 196,068 | $ | 3,368 | 6.91 | % | $ | 144,934 | $ | 2,052 | 5.69 | % | $ | 169,976 | $ | 2,445 | 5.77 | % | |||||||
Investment securities | 31,364 | 213 | 2.73 | 31,611 | 189 | 2.40 | 32,525 | 198 | 2.44 | ||||||||||||||||
Total investments | 227,432 | 3,581 | 6.33 | 176,545 | 2,241 | 5.11 | 202,501 | 2,643 | 5.24 | ||||||||||||||||
Construction and development | 14,501 | 320 | 8.88 | 21,970 | 505 | 9.24 | 40,386 | 555 | 5.51 | ||||||||||||||||
Commercial real estate | 737,846 | 17,030 | 9.28 | 716,051 | 16,108 | 9.05 | 654,021 | 14,362 | 8.81 | ||||||||||||||||
Commercial and industrial | 69,208 | 1,728 | 10.04 | 64,575 | 1,574 | 9.80 | 47,836 | 1,119 | 9.38 | ||||||||||||||||
Residential real estate | 2,322,763 | 31,408 | 5.44 | 2,378,879 | 31,890 | 5.39 | 2,282,264 | 28,777 | 5.06 | ||||||||||||||||
Consumer and other | 290 | 41 | 56.86 | 249 | 40 | 64.61 | 153 | 26 | 68.16 | ||||||||||||||||
Gross loans(2) | 3,144,608 | 50,527 | 6.46 | 3,181,724 | 50,117 | 6.34 | 3,024,660 | 44,839 | 5.95 | ||||||||||||||||
Total earning assets | 3,372,040 | 54,108 | 6.45 | 3,358,269 | 52,358 | 6.27 | 3,227,161 | 47,482 | 5.90 | ||||||||||||||||
Noninterest-earning assets | 223,455 | 213,802 | 167,506 | ||||||||||||||||||||||
Total assets | 3,595,495 | 3,572,071 | 3,394,667 | ||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||
NOW and savings deposits | 143,460 | 1,198 | 3.36 | 158,625 | 885 | 2.24 | 160,967 | 839 | 2.09 | ||||||||||||||||
Money market deposits | 998,601 | 6,135 | 2.47 | 1,077,469 | 9,692 | 3.62 | 956,598 | 10,370 | 4.35 | ||||||||||||||||
Time deposits | 1,042,758 | 12,402 | 4.78 | 1,001,792 | 11,528 | 4.63 | 927,478 | 8,595 | 3.72 | ||||||||||||||||
Total interest-bearing deposits | 2,184,819 | 19,735 | 3.63 | 2,237,886 | 22,105 | 3.97 | 2,045,043 | 19,804 | 3.88 | ||||||||||||||||
Borrowings | 369,232 | 3,661 | 3.99 | 343,847 | 3,168 | 3.71 | 371,000 | 2,708 | 2.93 | ||||||||||||||||
Total interest-bearing liabilities | 2,554,051 | 23,396 | 3.68 | 2,581,733 | 25,273 | 3.94 | 2,416,043 | 22,512 | 3.74 | ||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||
Noninterest-bearing deposits | 545,114 | 522,300 | 558,907 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 98,066 | 86,190 | 66,037 | ||||||||||||||||||||||
Total noninterest-bearing liabilities | 643,180 | 608,490 | 624,944 | ||||||||||||||||||||||
Shareholders' equity | 398,264 | 381,848 | 353,680 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,595,495 | $ | 3,572,071 | $ | 3,394,667 | |||||||||||||||||||
Net interest income | $ | 30,712 | $ | 27,085 | $ | 24,970 | |||||||||||||||||||
Net interest spread | 2.77 | 2.33 | 2.16 | ||||||||||||||||||||||
Net interest margin | 3.66 | 3.24 | 3.10 |
______________________________________________ | |
(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. | |||||||||||||||||
YTD AVERAGE BALANCES AND YIELDS/RATES | |||||||||||||||||
Six Months Ended | |||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||
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) | $ | 170,500 | $ | 5,420 | 6.39 | % | $ | 157,733 | $ | 4,250 | 5.43 | % | |||||
Investment securities | 31,488 | 402 | 2.57 | 32,737 | 376 | 2.32 | |||||||||||
Total investments | 201,988 | 5,822 | 5.80 | 190,470 | 4,626 | 4.90 | |||||||||||
Construction and development | 18,236 | 825 | 9.10 | 39,745 | 1,078 | 5.47 | |||||||||||
Commercial real estate | 726,949 | 33,138 | 9.17 | 663,015 | 28,341 | 8.62 | |||||||||||
Commercial and industrial | 66,891 | 3,301 | 9.92 | 47,473 | 2,149 | 9.13 | |||||||||||
Residential real estate | 2,350,821 | 63,298 | 5.41 | 2,286,955 | 57,199 | 5.04 | |||||||||||
Consumer and other | 269 | 82 | 61.30 | 160 | 54 | 68.06 | |||||||||||
Gross loans(2) | 3,163,166 | 100,644 | 6.40 | 3,037,348 | 88,821 | 5.90 | |||||||||||
Total earning assets | 3,365,154 | 106,466 | 6.36 | 3,227,818 | 93,447 | 5.84 | |||||||||||
Noninterest-earning assets | 218,629 | 171,295 | |||||||||||||||
Total assets | 3,583,783 | 3,399,113 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW and savings deposits | 151,043 | 2,082 | 2.77 | 163,948 | 1,487 | 1.83 | |||||||||||
Money market deposits | 1,038,035 | 15,828 | 3.07 | 967,714 | 20,029 | 4.17 | |||||||||||
Time deposits | 1,022,275 | 23,930 | 4.71 | 902,280 | 15,664 | 3.50 | |||||||||||
Total interest-bearing deposits | 2,211,353 | 41,840 | 3.80 | 2,033,942 | 37,180 | 3.69 | |||||||||||
Borrowings | 356,539 | 6,829 | 3.85 | 386,996 | 5,064 | 2.64 | |||||||||||
Total interest-bearing liabilities | 2,567,892 | 48,669 | 3.81 | 2,420,938 | 42,244 | 3.52 | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||
Noninterest-bearing deposits | 533,707 | 568,888 | |||||||||||||||
Other noninterest-bearing liabilities | 92,128 | 56,142 | |||||||||||||||
Total noninterest-bearing liabilities | 625,835 | 625,030 | |||||||||||||||
Shareholders' equity | 390,056 | 353,145 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,583,783 | $ | 3,399,113 | |||||||||||||
Net interest income | $ | 57,797 | $ | 51,203 | |||||||||||||
Net interest spread | 2.55 | 2.32 | |||||||||||||||
Net interest margin | 3.45 | 3.20 |
METROCITY BANKSHARES, INC. | ||||||||||||||||||||||||||
LOAN DATA | ||||||||||||||||||||||||||
As of the Quarter Ended | ||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||
% of | % of | % of | % of | % of | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Total | Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||
Construction and development | $ | 13,564 | 0.4 | % | $ | 27,762 | 0.9 | % | $ | 23,262 | 0.7 | % | $ | 41,783 | 1.4 | % | $ | 51,759 | 1.7 | % | ||||||
Commercial real estate | 733,845 | 23.7 | 724,263 | 23.2 | 711,177 | 22.6 | 624,122 | 20.5 | 625,111 | 20.6 | ||||||||||||||||
Commercial and industrial | 68,300 | 2.2 | 68,560 | 2.2 | 65,904 | 2.1 | 61,332 | 2.0 | 63,502 | 2.1 | ||||||||||||||||
Residential real estate | 2,282,630 | 73.7 | 2,303,400 | 73.7 | 2,350,299 | 74.6 | 2,310,981 | 76.1 | 2,289,050 | 75.6 | ||||||||||||||||
Consumer and other | 230 | — | 247 | — | 319 | — | 240 | — | 102 | — | ||||||||||||||||
Gross loans held for investment | $ | 3,098,569 | 100.0 | % | $ | 3,124,232 | 100.0 | % | $ | 3,150,961 | 100.0 | % | $ | 3,038,458 | 100.0 | % | $ | 3,029,524 | 100.0 | % | ||||||
Unearned income | (8,071) | (8,361) | (8,856) | (8,511) | (8,810) | |||||||||||||||||||||
Allowance for credit losses | (17,960) | (17,982) | (18,112) | (17,660) | (18,091) | |||||||||||||||||||||
Net loans held for investment | $ | 3,072,538 | $ | 3,097,889 | $ | 3,123,993 | $ | 3,012,287 | $ | 3,002,623 |
METROCITY BANKSHARES, INC. | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||
As of the Quarter Ended | ||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||
Nonaccrual loans | $ | 13,004 | $ | 13,297 | $ | 14,682 | $ | 15,127 | $ | 13,037 | ||||||
Past due loans 90 days or more and still accruing | — | — | — | — | — | |||||||||||
Accruing restructured loans | 12,593 | 15,534 | 22,233 | 21,964 | 9,611 | |||||||||||
Total non-performing loans | 25,597 | 28,831 | 36,915 | 37,091 | 22,648 | |||||||||||
Other real estate owned | 1,452 | 1,452 | 1,466 | 761 | 1,001 | |||||||||||
Total non-performing assets | $ | 27,049 | $ | 30,283 | $ | 38,381 | $ | 37,852 | $ | 23,649 | ||||||
Nonperforming loans to gross loans held for investment | 0.83 | % | 0.92 | % | 1.17 | % | 1.22 | % | 0.75 | % | ||||||
Nonperforming assets to total assets | 0.75 | 0.83 | 1.10 | 1.08 | 0.68 | |||||||||||
Allowance for credit losses to non-performing loans | 70.16 | 62.37 | 49.06 | 47.61 | 79.88 |
METROCITY BANKSHARES, INC. | ||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
Balance, beginning of period | $ | 17,982 | $ | 18,112 | $ | 17,660 | $ | 18,091 | $ | 18,947 | $ | 18,112 | $ | 13,888 | ||||||||
Net charge-offs/(recoveries): | ||||||||||||||||||||||
Construction and development | — | — | — | — | — | — | — | |||||||||||||||
Commercial real estate | (82) | (1) | 224 | (1) | 230 | (83) | 228 | |||||||||||||||
Commercial and industrial | (1) | (3) | 85 | (3) | 208 | (4) | 206 | |||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||
Consumer and other | — | — | — | — | — | — | — | |||||||||||||||
Total net charge-offs/(recoveries) | (83) | (4) | 309 | (4) | 438 | (87) | 434 | |||||||||||||||
Adoption of ASU 2016-13 (CECL) | — | — | — | — | — | — | 5,055 | |||||||||||||||
Provision for loan losses | (105) | (134) | 761 | (435) | (418) | (239) | (418) | |||||||||||||||
Balance, end of period | $ | 17,960 | $ | 17,982 | $ | 18,112 | $ | 17,660 | $ | 18,091 | $ | 17,960 | $ | 18,091 | ||||||||
Total loans at end of period | $ | 3,098,569 | $ | 3,124,232 | $ | 3,150,961 | $ | 3,038,458 | $ | 3,029,524 | $ | 3,098,569 | $ | 3,029,524 | ||||||||
Average loans(1) | $ | 3,108,303 | $ | 3,134,286 | $ | 3,064,409 | $ | 3,029,231 | $ | 3,024,660 | $ | 3,131,540 | $ | 3,037,348 | ||||||||
Net charge-offs/(recoveries) to average loans | (0.01) | % | (0.00) | % | 0.04 | % | (0.00) | % | 0.06 | % | (0.01) | % | 0.03 | % | ||||||||
Allowance for loan losses to total loans | 0.58 | 0.58 | 0.57 | 0.58 | 0.60 | 0.58 | 0.60 |
______________________________________________ | |
(1) | Excludes loans held for sale. |
View original content:https://www.prnewswire.com/news-releases/metrocity-bankshares-inc-reports-earnings-for-second-quarter-2024-302201422.html
SOURCE MetroCity Bankshares, Inc.
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