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METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2024

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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.

Positive
  • 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
Negative
  • 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 $16.9 million, up from $14.6 million in Q1 2024 and $13.1 million in Q2 2023, is driven by both increased interest income and improved efficiency ratios. This suggests stronger operational performance and cost management.

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 $128,000, indicates better loan performance and improved risk management.

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 $25.4 million might raise questions about loan demand or the bank’s lending strategy.

The growth in noninterest income by 18.5% year-over-year, especially from mortgage-related activities, indicates strong performance in the housing market and effective diversification of income streams. This is important for the bank as it reduces dependency on interest income alone.

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.

ATLANTA, July 19, 2024 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.9 million, or $0.66 per diluted share, for the second quarter of 2024, compared to $14.6 million, or $0.57 per diluted share, for the first quarter of 2024, and $13.1 million, or $0.51 per diluted share, for the second quarter of 2023. For the six months ended June 30, 2024, the Company reported net income of $31.6 million, or $1.24 per diluted share, compared to $28.8 million, or $1.13 per diluted share, for the same period in 2023. 

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Second Quarter 2024 Highlights:

  • Annualized return on average assets was 1.89%, compared to 1.65% for the first quarter of 2024 and 1.55% for the second quarter of 2023.
  • Annualized return on average equity was 17.10%, compared to 15.41% for the first quarter of 2024 and 14.87% for the second quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was 18.26% for the second quarter of 2024, compared to 16.27% for the first quarter of 2024 and 15.50% for the second quarter of 2023.
  • Efficiency ratio of 35.9%, compared to 37.9% for the first quarter of 2024 and 38.7% for the second quarter of 2023.
  • Net interest margin increased by 42 basis points to 3.66% from 3.24% 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 to 1.71% for the same period in 2023.
  • Return on average equity was 16.27% for the six months ended June 30, 2024, compared to 16.47% for the same period in 2023. Excluding average accumulated other comprehensive income, our return on average equity was 17.28% for the six months ended June 30, 2024, compared to 17.27% for the same period in 2023.
  • Efficiency ratio of 36.8% for the six months ended June 30, 2024, compared to 35.9% for the same period in 2023.
  • Net interest margin increased by 25 basis points to 3.45% from 3.20% for the same period in 2023.

Results of Operations

Net Income

Net income was $16.9 million for the second quarter of 2024, an increase of $2.3 million, or 15.8%, from $14.6 million for the first quarter of 2024. This increase was primarily due to an increase in interest income of $1.8 million and a decrease in interest expense of $1.9 million, offset by an increase in noninterest expense of $671,000 and an increase in income tax expense of $629,000. Net income increased by $3.8 million, or 29.2%, in the second quarter of 2024 compared to net income of $13.1 million for the second quarter of 2023. This increase was due to an increase in net interest income of $5.7 million and an increase in noninterest income of $868,000, offset by an increase in income tax expense of $925,000, an increase in noninterest expense of $1.6 million and an increase in provision for credit losses of $288,000.

Net income was $31.6 million for the six months ended June 30, 2024, an increase of $2.7 million, or 9.5%, from $28.8 million for the six months ended June 30, 2023. This increase was due to an increase in net interest income of $6.6 million and an increase in noninterest income of $292,000, offset by an increase in noninterest expense of $3.1 million, an increase in income tax expense of $887,000 and an increase in in provision for credit losses of $148,000.

Net Interest Income and Net Interest Margin

Interest income totaled $54.1 million for the second quarter of 2024, an increase of $1.8 million, or 3.3%, from the previous quarter, primarily due to a 122 basis points and $51.1 million increase in the fed funds sold and interest-bearing cash yield and balance, as well as a 12 basis points increase in the loan yield. As compared to the second quarter of 2023, interest income for the second quarter of 2024 increased by $6.6 million, or 14.0%, primarily due to a 51 basis points increase in the loan yield coupled with a $119.9 million increase in average loan balances, as well as a 109 basis points increase in the total investment yield.

Interest expense totaled $23.4 million for the second quarter of 2024, a decrease of $1.9 million, or 7.4%, from the previous quarter, primarily due to a 34 basis points decrease in deposit costs coupled with a $53.1 million decrease in average deposit balances, offset by a 28 basis points increase in borrowing costs and $25.4 million increase in the average borrowing balance. As compared to the second quarter of 2023, interest expense for the second quarter of 2024 increased by $884,000 or 3.9%, primarily due to a $139.8 million increase in deposit balances and a 106 basis points increase in borrowing costs. The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 5.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the second quarter of 2024, we recorded a credit to interest expense of $6.5 million from the benefit received on these interest rate derivatives compared to a benefit of $4.1 million and $857,000 recorded during the first quarter of 2024 and the second quarter of 2023, respectively.

The net interest margin for the second quarter of 2024 was 3.66% compared to 3.24% for the previous quarter, an increase of 42 basis points. The yield on average interest-earning assets for the second quarter of 2024 increased by 18 basis points to 6.45% from 6.27% for the previous quarter, while the cost of average interest-bearing liabilities for the second quarter of 2024 decreased by 26 basis points to 3.68% from 3.94% for the previous quarter. Average earning assets increased by $13.8 million from the previous quarter, due to an increase in average total investments of $50.9 million, offset by a decrease in average loans of $37.1 million. Average interest-bearing liabilities decreased by $27.7 million from the previous quarter as average interest-bearing deposits decreased by $53.1 million while average borrowings increased by $25.4 million.

As compared to the same period in 2023, the net interest margin for the second quarter of 2024 increased by 56 basis points to 3.66% from 3.10%, primarily due to a 55 basis points increase in the yield on average interest-earning assets of $3.37 billion and a six basis point decrease in the cost of average interest-bearing liabilities of $2.55 billion. Average earning assets for the second quarter of 2024 increased by $144.9 million from the second quarter of 2023, due to a $119.9 million increase in average loans and a $24.9 million decrease in average total investments. Average interest-bearing liabilities for the second quarter of 2024 increased by $138.0 million from the second quarter of 2023, driven by an increase in average interest-bearing deposits of $139.8 million, offset by a decrease in average borrowings of $1.8 million.  

Noninterest Income

Noninterest income for the second quarter of 2024 was $5.6 million, a decrease of $9,000, or 0.2%, from the first quarter of 2024, primarily due to lower gains on sale and servicing income from Small Business Administration ("SBA") loans, offset by higher gains on sale and servicing income from mortgage loans, service charges on deposit accounts and other income. Mortgage loan sales totaled $111.4 million (average sales premium of 1.05%) during the second quarter of 2024 compared to $21.9 million during the first quarter of 2024. There were no SBA loans sold during the second quarter of 2024 compared to $24.1 million SBA loan sold during the first quarter of 2024. During the second quarter of 2024, we recorded a $503,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment gain of $361,000 during the first quarter of 2024.

Compared to the same period in 2023, noninterest income for the second quarter of 2024 increased by $868,000, or 18.5%, primarily due to higher gains on sale and servicing income from mortgage loans and higher mortgage loan fees from higher volume, offset by lower gains on sale and servicing income from SBA loans. During the second quarter of 2023, we recorded a $255,000 fair value adjustment gain on our SBA servicing asset.

Noninterest income for the six months ended June 30, 2024 totaled $11.1 million, an increase of $292,000, or 2.7%, from the six months ended June 30, 2023, primarily due to higher mortgage loan fees from higher volume, as well as higher gains on sale and servicing income from mortgage loans, offset by decreases in gains on sale of SBA loans, SBA servicing income and other income.

Noninterest Expense

Noninterest expense for the second quarter of 2024 totaled $13.0 million, an increase of $671,000, or 5.4%, from $12.4 million for the first quarter of 2024. This increase was primarily attributable to increases in salary and employee benefits, data processing expense and security expense, partially offset by lower professional fees, FDIC insurance premiums, advertising expense, and loan and other real estate owned related expenses. Compared to the second quarter of 2023, noninterest expense during the second quarter of 2024 increased by $1.6 million, or 13.7%, primarily due to higher salary and employee benefits, occupancy expense, security expense and other real estate owned related expenses, offset by lower FDIC insurance premiums and professional fees.

Noninterest expense for the six months ended June 30, 2024 totaled $25.4 million, an increase of $3.1 million, or 14.0%, from $22.3 million for the six months ended June 30, 2023. This increase was primarily attributable to increases in salaries and employee benefits due to higher commissions from higher loan volume, employee insurance and stock based compensation, as well as higher expenses related to depreciation, rent, data processing and security. These expense increases were partially offset by lower loan related expenses and legal fees.

The Company's efficiency ratio was 35.9% for the second quarter of 2024 compared to 37.9% and 38.7% for the first quarter of 2024 and second quarter of 2023, respectively. For the six months ended June 30, 2024, the efficiency ratio was 36.8% compared to 35.9% for the same period in 2023.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2024 was 27.5%, compared to 28.4% for the first quarter of 2024 and 29.6% for the second quarter of 2023. The Company's effective tax rate for the six months ended June 30, 2024 was 27.9% compared to 28.2% for the same period in 2023.

Balance Sheet

Total Assets

Total assets were $3.62 billion at June 30, 2024, a decrease of $31.8 million, or 0.9%, from $3.65 billion at March 31, 2024, and an increase of $140.3 million, or 4.0%, from $3.48 billion at June 30, 2023. The $31.8 million decrease in total assets at June 30, 2024 compared to March 31, 2024 was primarily due to decreases in loans held for sale of $72.6 million, loans held for investment of $25.4 million and interest rate derivatives of $2.5 million, partially offset by an increase in cash and due from banks of $70.7 million. The $140.3 million increase in total assets at June 30, 2024 compared to June 30, 2023 was primarily due to increases in cash and due from banks of $74.5 million, loans held for investment of $69.8 million, Federal Home Loan Bank stock of $4.7 million and bank owned life insurance of $2.1 million, partially offset by decreases in federal funds sold of $9.4 million and interest rate derivatives of $3.1 million.   

Our investment securities portfolio made up only 0.78% of our total assets at June 30, 2024 compared to 0.78% and 0.84% at March 31, 2024 and June 30, 2023, respectively.

Loans

Loans held for investment were $3.09 billion at June 30, 2024, a decrease of $25.4 million, or 0.8%, compared to $3.12 billion at March 31, 2024, and an increase of $69.8 million, or 2.3%, compared to $3.02 billion at June 30, 2023. The decrease in loans at June 30, 2024 compared to March 31, 2024 was due to a $20.8 million decrease in residential mortgage loans, a $14.2 million decrease in construction and development loans and a $260,000 decrease in commercial and industrial loans, offset by a $9.6 million increase in commercial real estate loans. There were no loans classified as held for sale at June 30, 2024 and June 30, 2023. Loans held for sale were $72.6 million a at March 31, 2024.

Deposits

Total deposits were $2.75 billion at June 30, 2024, a decrease of $68.0 million, or 2.4%, compared to total deposits of $2.81 billion at March 31, 2024, and an increase of $47.4 million, or 1.8%, compared to total deposits of $2.70 billion at June 30, 2023. The decrease in total deposits at June 30, 2024 compared to March 31, 2024 was due to a $68.2 million decrease in money market accounts (includes $36.3 million decrease in brokered MMAs) and a $26.8 million decrease in interest-bearing demand deposits (mostly brokered deposits), offset by a $17.3 million increase in noninterest-bearing demand deposits, a $7.9 million increase in time deposits and a $1.8 million increase in savings accounts.

Noninterest-bearing deposits were $564.1 million at June 30, 2024, compared to $546.8 million at March 31, 2024 and $575.3 million at June 30, 2023. Noninterest-bearing deposits constituted 20.5% of total deposits at June 30, 2024, compared to 19.4% at March 31, 2024 and 21.3% at June 30, 2023. Interest-bearing deposits were $2.18 billion at June 30, 2024, compared to $2.27 billion at March 31, 2024 and $2.12 billion at June 30, 2023. Interest-bearing deposits constituted 79.5% of total deposits at June 30, 2024, compared to 80.6% at March 31, 2024 and 78.7% at June 30, 2023.

Uninsured deposits were 23.4% of total deposits at June 30, 2024, compared to 23.0% and 30.7% at March 31, 2024 and June 30, 2023, respectively. As of June 30, 2024, we had $1.27 billion of available borrowing capacity at the Federal Home Loan Bank ($709.7 million), Federal Reserve Discount Window ($509.2 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $128,000 during the second quarter of 2024, compared to a credit provision for credit losses of $140,000 and $416,000 recorded during the first quarter of 2024 and second quarter of 2023, respectively. The credit provision recorded during the second quarter of 2024 was primarily due the decrease in loan balances and an $83,000 recovery recorded during the quarter. Annualized net recoveries to average loans for the second quarter of 2024 was 0.01%, compared to a net recovery of 0.00% for the first quarter of 2024 and a net charge-off of 0.06% for the second quarter of 2023.

Nonperforming assets totaled $27.0 million, or 0.75% of total assets, at June 30, 2024, a decrease of $3.2 million from $30.3 million, or 0.83% of total assets, at March 31, 2024, and an increase of $3.4 million from $23.6 million, or 0.68% of total assets, at June 30, 2023. The decrease in nonperforming assets at June 30, 2024 compared to March 31, 2024 was due to a $2.9 million decrease in accruing restructured loans and a $293,000 decrease in nonaccrual loans.  

Allowance for credit losses as a percentage of total loans was 0.58% at June 30, 2024, compared to 0.58% at March 31, 2024 and 0.60% at June 30, 2023. Allowance for credit losses as a percentage of nonperforming loans was 70.16% at June 30, 2024, compared to 62.37% and 79.88% at March 31, 2024 and June 30, 2023, 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 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company's profitability; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and the surrounding region; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts

Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

 

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA


























As of and for the Three Months Ended


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.

 

Cision View original content:https://www.prnewswire.com/news-releases/metrocity-bankshares-inc-reports-earnings-for-second-quarter-2024-302201422.html

SOURCE MetroCity Bankshares, Inc.

FAQ

What was MetroCity Bankshares' (MCBS) net income for Q2 2024?

MetroCity Bankshares (MCBS) reported a net income of $16.9 million for Q2 2024.

How did MCBS's Q2 2024 net income compare to previous quarters?

The Q2 2024 net income of $16.9 million was up from $14.6 million in Q1 2024 and $13.1 million in Q2 2023, representing increases of 15.8% and 29.2% respectively.

What was MCBS's efficiency ratio in Q2 2024?

MCBS's efficiency ratio in Q2 2024 was 35.9%, improved from 37.9% in Q1 2024 and 38.7% in Q2 2023.

How did MCBS's net interest margin change in Q2 2024?

MCBS's net interest margin increased by 42 basis points to 3.66% in Q2 2024, up from 3.24% in Q1 2024.

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METROCITY BANKSHARES INC

NASDAQ:MCBS

MCBS Rankings

#2699 Ranked by Market Cap
#1135 Ranked by Dividends

MCBS Latest News

Oct 18, 2024
METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2024
Oct 16, 2024
MetroCity Bankshares, Inc. Declares Quarterly Cash Dividend and Announces the Continuation of its Share Repurchase Program
Jul 17, 2024
MetroCity Bankshares, Inc. Declares Quarterly Cash Dividend
Apr 19, 2024
METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2024
Apr 17, 2024
MetroCity Bankshares, Inc. Declares Quarterly Cash Dividend

MCBS Stock Data

824.55M
18.62M
26.21%
23.86%
0.42%
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