METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2022

Rhea-AI Summary

MetroCity Bankshares, Inc. (NASDAQ: MCBS) reported a net income of $16.1 million ($0.63 per diluted share) for Q2 2022, down 17.1% from Q1 2022 but up 11.9% year-over-year. Total assets increased to $3.17 billion, driven by a 10.3% rise in total loans to $2.77 billion. The annualized return on average assets was 2.16%, while the efficiency ratio rose to 37.6%. Interest income increased by 3.4% sequentially, bolstered by higher average loan balances, despite a significant rise in interest expenses. Noninterest income experienced a sharp decline, primarily due to lower SBA servicing income.

Positive

• Net income increased by 11.9% year-over-year to $16.1 million.
• Total loans rose by 10.3%, reaching $2.77 billion.
• Interest income grew by 3.4% from the previous quarter.

Negative

• Net income decreased by 17.1% from Q1 2022.
• Noninterest income decreased by 39.2% from Q1 2022.
• Nonperforming assets increased significantly to $34.0 million.

ATLANTA, July 22, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.1 million, or $0.63 per diluted share, for the second quarter of 2022, compared to $19.4 million, or $0.76 per diluted share, for the first quarter of 2022, and $14.4 million, or $0.56 per diluted share, for the second quarter of 2021. For the six months ended June 30, 2022, the Company reported net income of $35.5 million, or $1.38 per diluted share, compared to $27.4 million, or $1.06 per diluted share, for the same period in 2021.

Second Quarter 2022 Highlights:

• Annualized return on average assets was 2.16%, compared to 2.52% for the first quarter of 2022 and 2.53% for the second quarter of 2021.
• Annualized return on average equity was 20.65%, compared to 26.94% for the first quarter of 2022 and 22.51% for the second quarter of 2021.
• Efficiency ratio of 37.6%, compared to 31.8% for the first quarter of 2022 and 36.2% for the second quarter of 2021.
• Total loans increased by $257.7 million, or 10.3%, to $2.77 billion from the previous quarter.
• Net interest margin was 4.26%, compared to 4.16% for the first quarter of 2022 and 4.60% for the second quarter of 2021.

Results of Operations

Net Income

Net income was $16.1 million for the second quarter of 2022, a decrease of $3.3 million, or 17.1%, from $19.4 million for the first quarter of 2022. This decrease was due to an decrease in noninterest income of $3.0 million, a decrease in net interest income of $433,000 and an increase in noninterest expense of $940,000, offset by a decrease in income tax expense of $943,000. Net income increased $1.7 million, or 11.9%, in the second quarter of 2022 compared to net income of $14.4 million for the second quarter of 2021. This increase was due to an increase in net interest income of $5.4 million and a decrease in provision for loan losses of $2.2 million, offset by a decrease in noninterest income of $3.9 million, an increase in noninterest expense of $1.0 million and an increase in provision for income taxes of $926,000.

Net Interest Income and Net Interest Margin

Interest income totaled $33.0 million for the second quarter of 2022, an increase of $1.1 million, or 3.4%, from the previous quarter, primarily due to a $63.8 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $341,000 during the second quarter of 2022 compared to $503,000 recognized during the first quarter of 2022. As compared to the second quarter of 2021, interest income for the second quarter of 2022 increased by $7.1 million, or 27.6%, primarily due to an increase in average loan balances of $636.4 million.

Interest expense totaled $2.8 million for the second quarter of 2022, an increase of $1.5 million, or 115.8%, from the previous quarter, primarily due to a 28 basis points increase in deposit costs and a 54 basis points increase in borrowing costs. As compared to the second quarter of 2021, interest expense for the second quarter of 2022 increased by $1.7 million, or 163.9%, primarily due to a $465.7 million increase in average interest-bearing deposit balances coupled with a 26 basis points increase in deposit costs.

The net interest margin for the second quarter of 2022 was 4.26% compared to 4.16% for the previous quarter, an increase of ten basis points. The yield on average interest-earning assets for the second quarter of 2022 increased by 31 basis points to 4.65% from 4.34% for the previous quarter, while the cost of average interest-bearing liabilities for the second quarter of 2022 increased by 32 basis points to 0.56% from 0.24% for the previous quarter. Average earning assets decreased by $143.0 million from the previous quarter, primarily due to a decrease of $205.7 million in average interest-earning cash accounts offset by an increase in average loans of $63.8 million. Average interest-bearing liabilities decreased by $182.6 million from the previous quarter as average borrowings decreased by $221.5 million and interest-bearing deposits increased by $38.9 million. The inclusion of PPP loan average balances, interest and fees had a three basis points impact on both the yield on average loans and the net interest margin for the second quarter of 2022.

As compared to the same period in 2021, the net interest margin for the second quarter of 2022 decreased by 34 basis points to 4.26% from 4.60%, primarily due to a 14 basis point decrease in the yield on average interest-earning assets of $2.85 billion and a 25 basis point increase in the cost of average interest-bearing liabilities of $2.00 billion. Average earning assets for the second quarter of 2022 increased by $679.5 million from the second quarter of 2021, due to a $636.4 million increase in average loans and a $43.1 million increase in total investments. Average interest-bearing liabilities for the second quarter of 2022 increased by $618.0 million from the second quarter of 2021, driven by an increase in average interest-bearing deposits of $465.7 million and an increase in average borrowings of $152.3 million.

Noninterest Income

Noninterest income for the second quarter of 2022 was $4.7 million, a decrease of $3.0 million, or 39.2%, from the first quarter of 2022, primarily due to a significant decrease in Small Business Administration ("SBA") servicing income and gains on sale of SBA loans, partially offset by higher mortgage loan fees as mortgage loan originations totaled  $327.0 million during the second quarter of 2022 compared to $162.9 million for the previous quarter. We elected not to sell any SBA loans during the second quarter of 2022 as premiums drastically declined during the quarter. During the second quarter of 2022, we recorded a $2.3 million fair value loss on our SBA servicing asset and an $88,000 fair value impairment recovery on our mortgage servicing asset. These servicing asset adjustments had a $0.07 per share impact on our diluted earnings per share for the quarter.

Compared to the same period in 2021, noninterest income for the second quarter of 2022 decreased by $3.9 million, or 45.9%, primarily due to much lower SBA servicing income and gains on sale of SBA loans, offset by higher gains on sale of mortgage loans and mortgage serving income.

Noninterest Expense

Noninterest expense for the second quarter of 2022 totaled $13.1 million, an increase of $940,000, or 7.7%, from $12.2 million for the first quarter of 2022. This increase was primarily attributable to higher salaries and employee benefits partially due to an increase in commissions earned as loan volume increased during the quarter. Compared to the second quarter of 2021, noninterest expense during the second quarter of 2022 increased by $1.0 million, or 8.5%, primarily due to higher salaries and employee benefits and IT-related expenses.

The Company's efficiency ratio was 37.6% for the second quarter of 2022 compared to 31.8% and 36.2% for the first quarter of 2022 and second quarter of 2021, respectively. For the six months ended June 30, 2022, the efficiency ratio was 34.6% compared with 36.1% for the same period in 2021.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2022 was 26.0%, compared to 25.3% for the first quarter of 2022 and 24.7% for the second quarter of 2021.

Balance Sheet

Total Assets

Total assets were $3.17 billion at June 30, 2022, an increase of $25.5 million, or 0.8%, from $3.14 billion at March 31, 2022, and an increase of $650.0 million, or 25.8%, from $2.52 billion at June 30, 2021. The $25.5 million increase in total assets at June 30, 2022 compared to March 31, 2022 was primarily due to increases in loans held for investment of $257.7 million and other assets of $13.1 million, partially offset by decreases in cash and cash equivalents of $201.6 million and loans held for sale of $37.9 million. The $650.0 million increase in total assets at June 30, 2022 compared to June 30, 2021 was primarily due to increases in loans of $678.3 million, equity securities of $10.8 million, bank owned life insurance of $32.0 million and other assets of $20.2 million, offset by a $90.8 million decrease in cash and cash equivalents and an increase in the allowance for loan losses of $2.8 million. 

Loans

Loans held for investment were $2.77 billion at June 30, 2022, an increase of $257.7 million, or 10.3%, compared to $2.51 billion at March 31, 2022, and an increase of $678.3 million, or 32.4%, compared to $2.09 billion at June 30, 2021. The increase in loans at June 30, 2022 compared to March 31, 2022 was primarily due to a $6.4 million increase in construction and development loans, a $14.2 million increase in commercial real estate loans and a $246.5 million increase in residential mortgages, offset by a $8.2 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $8.9 million as of June 30, 2022. PPP Loans totaled $19.8 million as of March 31, 2022 and $93.1 million as of June 30, 2021. There were no loans classified as held for sale at June 30, 2022 or June 30, 2021. Loans held for sale were $37.9 million at March 31, 2022.

Deposits

Total deposits were $2.40 billion at June 30, 2022, an increase of $14.9 million, or 0.6%, compared to total deposits of $2.38 billion at March 31, 2022, and an increase of $422.2 million, or 21.4%, compared to total deposits of $1.97 billion at June 30, 2021. The increase in total deposits at June 30, 2022 compared to March 31, 2022 was due to an $11.3 million increase in money market accounts, a $4.5 million increase in noninterest-bearing demand deposits, a $2.7 million increase in time deposits and a $0.7 million increase in interest-bearing demand deposits, offset by a $4.3 million decrease in savings accounts.

Noninterest-bearing deposits were $620.2 million at June 30, 2022, compared to $615.7 million at March 31, 2022 and $618.1 million at June 30, 2021. Noninterest-bearing deposits constituted 25.9% of total deposits at June 30, 2022, compared to 25.8% at March 31, 2022 and 31.3% at June 30, 2021. Interest-bearing deposits were $1.78 billion at June 30, 2022, compared to $1.77 billion at March 31, 2022 and $1.36 billion at June 30, 2021. Interest-bearing deposits constituted 74.1% of total deposits at June 30, 2022, compared to 74.2% at March 31, 2022 and 68.7% at June 30, 2021.

Asset Quality

The Company recorded no provision for loan losses during the second quarter of 2022, compared to $104,000 during the first quarter of 2022 and $2.2 million during the second quarter of 2021. Annualized net charge-offs to average loans for the second quarter of 2022 was 0.00%, compared to 0.06% for the first quarter of 2022 and 0.02% for the second quarter of 2021. The Company is not required to implement the provisions of the current expected credit losses accounting standard issued by the Financial Accounting Standards Board in the Accounting Standards Update No. 2016-13 until January 1, 2023, and is continuing to account for the allowance for loan losses under the incurred loss model.

Nonperforming assets totaled $34.0 million, or 1.07% of total assets, at June 30, 2022, an increase of $18.0 million from $16.0 million, or 0.51% of total assets, at March 31, 2022, and an increase of $20.0 million from $14.0 million, or 0.56% of total assets, at June 30, 2021. The increase in nonperforming assets at June 30, 2022 compared to March 31, 2022 was due to a $10.4 million increase in nonaccrual loans and a $7.6 million increase in accruing troubled debt restructurings.

Allowance for loan losses as a percentage of total loans was 0.60% at June 30, 2022, compared to 0.66% at both March 31, 2022 and June 30, 2021. Excluding outstanding PPP loans of $8.9 million as of June 30, 2022, $19.8 million as of March 31, 2022 and $93.1 million as of June 30, 2021, the allowance for loan losses as a percentage of total loans was 0.60% at June 30, 2022, 0.67% at March 31, 2022 and 0.69% at June 30, 2021. Allowance for loan losses as a percentage of nonperforming loans was 54.79% at June 30, 2022, compared to 134.39% and 147.82% at March 31, 2022 and June 30, 2021, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 19 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, including statements regarding the effects of the ongoing COVID-19 pandemic and related variants on our business and financial results and conditions, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: general business and economic conditions, particularly those affecting the financial services; the impact of the ongoing COVID-19 pandemic and related variants on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company's profitability; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs related to the ongoing COVID-19 pandemic and related variants. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts

Farid Tan	Lucas Stewart
President	Chief Financial Officer
770-455-4978	678-580-6414
faridtan@metrocitybank.bank	lucasstewart@metrocitybank.bank

 

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)		2022			2022			2021			2021			2021			2022			2021
Selected income statement data:
Interest income		$	33,025		$	31,953		$	30,857		$	29,324		$	25,888		$	64,978		$	48,560
Interest expense			2,805			1,300			1,236			1,135			1,063			4,105			2,201
Net interest income			30,220			30,653			29,621			28,189			24,825			60,873			46,359
Provision for loan losses			—			104			546			2,579			2,205			104			3,804
Noninterest income			4,653			7,656			7,491			9,532			8,594			12,309			16,780
Noninterest expense			13,119			12,179			12,512			13,111			12,093			25,298			22,801
Income tax expense			5,654			6,597			6,609			5,149			4,728			12,251			9,160
Net income			16,100			19,429			17,445			16,882			14,393			35,529			27,374
Per share data:
Basic income per share		$	0.63		$	0.76		$	0.69		$	0.66		$	0.56		$	1.40		$	1.07
Diluted income per share		$	0.63		$	0.76		$	0.68		$	0.66		$	0.56		$	1.38		$	1.06
Dividends per share		$	0.15		$	0.15		$	0.14		$	0.12		$	0.10		$	0.30		$	0.20
Book value per share (at period end)		$	12.69		$	12.19		$	11.40		$	10.84		$	10.33		$	12.69		$	10.33
Shares of common stock outstanding			25,451,125			25,465,236			25,465,236			25,465,236			25,578,668			25,451,125			25,578,668
Weighted average diluted shares			25,729,156			25,719,035			25,720,128			25,729,043			25,833,328			25,746,691			25,840,530
Performance ratios:
Return on average assets			2.16	%		2.52	%		2.33	%		2.61	%		2.53	%		2.34	%		2.57	%
Return on average equity			20.65			26.94			24.80			25.23			22.51			23.67			21.94
Dividend payout ratio			23.85			19.76			20.52			18.24			17.95			21.62			18.88
Yield on total loans			4.95			5.00			4.93			5.16			5.21			4.98			5.21
Yield on average earning assets			4.65			4.34			4.32			4.75			4.79			4.49			4.82
Cost of average interest bearing liabilities			0.56			0.24			0.24			0.28			0.31			0.40			0.34
Cost of deposits			0.55			0.27			0.27			0.28			0.29			0.41			0.32
Net interest margin			4.26			4.16			4.15			4.57			4.60			4.21			4.60
Efficiency ratio(1)			37.62			31.79			33.71			34.76			36.19			34.57			36.11
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment			0.00	%		0.06	%		0.01	%		0.00	%		0.02	%		0.03	%		0.01	%
Nonperforming assets to gross loans and OREO			1.22			0.63			0.61			0.55			0.67			1.22			0.67
ALL to nonperforming loans			54.79			134.39			143.69			189.44			147.82			54.79			147.82
ALL to loans held for investment			0.60			0.66			0.67			0.69			0.66			0.60			0.66
Balance sheet and capital ratios:
Gross loans held for investment to deposits			115.86	%		105.72	%		110.98	%		112.15	%		106.31	%		115.86	%		106.31	%
Noninterest bearing deposits to deposits			25.87			25.84			26.18			30.32			31.30			25.87			31.30
Common equity to assets			10.20			9.88			9.34			10.04			10.50			10.20			10.50
Leverage ratio			10.31			9.46			9.44			10.34			11.14			10.31			11.14
Common equity tier 1 ratio			16.70			17.24			16.76			16.61			17.75			16.70			17.75
Tier 1 risk-based capital ratio			16.70			17.24			16.76			16.61			17.75			16.70			17.75
Total risk-based capital ratio			17.60			18.22			17.77			17.64			18.72			17.60			18.72
Mortgage and SBA loan data:
Mortgage loans serviced for others		$	589,500		$	605,112		$	608,208		$	669,358		$	746,660		$	589,500		$	746,660
Mortgage loan production			326,968			162,933			237,195			368,790			326,507			489,901			590,205
Mortgage loan sales			37,928			56,987			—			—			—			94,915			—
SBA loans serviced for others			504,894			528,227			542,991			549,818			549,238			504,894			549,238
SBA loan production			21,407			50,689			52,727			85,265			67,376			72,096			147,842
SBA loan sales			—			22,898			30,169			37,984			34,158			22,898			56,557
________________________
(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)		2022			2022			2021			2021			2021
ASSETS
Cash and due from banks		$	220,027		$	418,988		$	432,523		$	250,995		$	309,289
Federal funds sold			3,069			5,743			8,818			2,294			4,644
Cash and cash equivalents			223,096			424,731			441,341			253,289			313,933
Equity securities			10,778			11,024			11,386			993			—
Securities available for sale (at fair value)			21,394			23,886			25,733			16,507			16,722
Loans			2,770,020			2,512,300			2,505,070			2,361,705			2,091,767
Allowance for loan losses			(16,678)			(16,674)			(16,952)			(16,445)			(13,860)
Loans less allowance for loan losses			2,753,342			2,495,626			2,488,118			2,345,260			2,077,907
Loans held for sale			—			37,928			—			—			—
Accrued interest receivable			10,990			10,644			11,052			10,737			10,668
Federal Home Loan Bank stock			15,619			15,806			19,701			12,201			8,451
Premises and equipment, net			12,847			12,814			13,068			13,302			13,557
Operating lease right-of-use asset			8,518			8,925			9,338			9,672			10,078
Foreclosed real estate, net			3,562			3,562			3,618			4,374			4,656
SBA servicing asset, net			8,216			10,554			10,234			10,916			11,155
Mortgage servicing asset, net			6,090			6,925			7,747			8,593			9,529
Bank owned life insurance			68,267			67,841			59,437			59,061			36,263
Other assets			25,131			12,051			5,385			5,323			4,921
Total assets		$	3,167,850		$	3,142,317		$	3,106,158		$	2,750,228		$	2,517,840
LIABILITIES
Noninterest-bearing deposits		$	620,182		$	615,650		$	592,444		$	640,312		$	618,054
Interest-bearing deposits			1,776,826			1,766,491			1,670,576			1,471,515			1,356,777
Total deposits			2,397,008			2,382,141			2,263,020			2,111,827			1,974,831
Federal Home Loan Bank advances			375,000			380,000			500,000			300,000			200,000
Other borrowings			399			405			459			468			474
Operating lease liability			9,031			9,445			9,861			10,241			10,648
Accrued interest payable			703			207			204			208			202
Other liabilities			62,640			59,709			42,391			51,330			67,431
Total liabilities		$	2,844,781		$	2,831,907		$	2,815,935		$	2,474,074		$	2,253,586
SHAREHOLDERS' EQUITY
Preferred stock			—			—			—			—			—
Common stock			255			255			255			255			256
Additional paid-in capital			49,831			51,753			51,559			51,181			52,924
Retained earnings			266,426			254,165			238,577			224,711			210,910
Accumulated other comprehensive income (loss)			6,557			4,237			(168)			7			164
Total shareholders' equity			323,069			310,410			290,223			276,154			264,254
Total liabilities and shareholders' equity		$	3,167,850		$	3,142,317		$	3,106,158		$	2,750,228		$	2,517,840

 

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)		2022			2022			2021			2021			2021			2022			2021
Interest and dividend income:
Loans, including Fees		$	32,310		$	31,459		$	30,496		$	29,127		$	25,728		$	63,769		$	48,228
Other investment income			711			492			360			196			159			1,203			329
Federal funds sold			4			2			1			1			1			6			3
Total interest income			33,025			31,953			30,857			29,324			25,888			64,978			48,560
Interest expense:
Deposits			2,384			1,139			1,069			968			919			3,523			1,911
FHLB advances and other borrowings			421			161			167			167			144			582			290
Total interest expense			2,805			1,300			1,236			1,135			1,063			4,105			2,201
Net interest income			30,220			30,653			29,621			28,189			24,825			60,873			46,359
Provision for loan losses			—			104			546			2,579			2,205			104			3,804
Net interest income after provision for loan losses			30,220			30,549			29,075			25,610			22,620			60,769			42,555
Noninterest income:
Service charges on deposit accounts			518			481			466			446			411			999			784
Other service charges, commissions and fees			3,647			2,159			3,015			4,147			3,877			5,806			7,275
Gain on sale of residential mortgage loans			806			1,211			—			—			—			2,017			—
Mortgage servicing income, net			(5)			101			95			132			(957)			96			(791)
Gain on sale of SBA loans			—			1,568			2,895			3,358			2,845			1,568			4,699
SBA servicing income, net			(1,077)			1,644			634			1,212			1,905			567			4,038
Other income			764			492			386			237			513			1,256			775
Total noninterest income			4,653			7,656			7,491			9,532			8,594			12,309			16,780
Noninterest expense:
Salaries and employee benefits			7,929			7,096			7,819			8,679			6,915			15,025			13,614
Occupancy			1,200			1,227			1,206			1,295			1,252			2,427			2,527
Data Processing			261			277			252			257			283			538			591
Advertising			126			150			148			131			117			276			262
Other expenses			3,603			3,429			3,087			2,749			3,526			7,032			5,807
Total noninterest expense			13,119			12,179			12,512			13,111			12,093			25,298			22,801
Income before provision for income taxes			21,754			26,026			24,054			22,031			19,121			47,780			36,534
Provision for income taxes			5,654			6,597			6,609			5,149			4,728			12,251			9,160
Net income available to common shareholders		$	16,100		$	19,429		$	17,445		$	16,882		$	14,393		$	35,529		$	27,374

 

METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES
		Three Months Ended
		June 30, 2022								March 31, 2022								June 30, 2021
		Average			Interest and			Yield /		Average			Interest and			Yield /		Average			Interest and			Yield /
(Dollars in thousands)		Balance			Fees			Rate		Balance			Fees			Rate		Balance			Fees			Rate
Earning Assets:
Federal funds sold and other investments(1)		$	193,955		$	592		1.22	%	$	399,642		$	365		0.37	%	$	169,578		$	76		0.18	%
Investment securities			35,754			123		1.38			36,842			129		1.42			17,080			84		1.97
Total investments			229,709			715		1.25			436,484			494		0.46			186,658			160		0.34
Construction and development			32,647			414		5.09			30,583			377		5.00			47,173			615		5.23
Commercial real estate			575,917			8,403		5.85			549,132			7,887		5.82			510,241			7,344		5.77
Commercial and industrial			54,423			915		6.74			65,450			1,076		6.67			146,408			2,558		7.01
Residential real estate			1,952,730			22,545		4.63			1,906,847			22,074		4.69			1,275,555			15,180		4.77
Consumer and other			266			33		49.76			206			45		88.59			179			31		69.46
Gross loans(2)			2,615,983			32,310		4.95			2,552,218			31,459		5.00			1,979,556			25,728		5.21
Total earning assets			2,845,692			33,025		4.65			2,988,702			31,953		4.34			2,166,214			25,888		4.79
Noninterest-earning assets			146,669								142,042								112,161
Total assets			2,992,361								3,130,744								2,278,375
Interest-bearing liabilities:
NOW and savings deposits			197,460			102		0.21			187,259			75		0.16			107,072			53		0.20
Money market deposits			1,166,272			1,860		0.64			1,085,751			658		0.25			659,173			373		0.23
Time deposits			389,449			422		0.43			441,228			406		0.37			521,217			493		0.38
Total interest-bearing deposits			1,753,181			2,384		0.55			1,714,238			1,139		0.27			1,287,462			919		0.29
Borrowings			246,779			421		0.68			468,348			161		0.14			94,435			144		0.61
Total interest-bearing liabilities			1,999,960			2,805		0.56			2,182,586			1,300		0.24			1,381,897			1,063		0.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits			611,763								588,343								561,170
Other noninterest-bearing liabilities			67,979								67,301								78,822
Total noninterest-bearing liabilities			679,742								655,644								639,992
Shareholders' equity			312,659								292,514								256,486
Total liabilities and shareholders' equity		$	2,992,361							$	3,130,744							$	2,278,375
Net interest income					$	30,220							$	30,653							$	24,825
Net interest spread								4.09								4.10								4.48
Net interest margin								4.26								4.16								4.60
______________________________
(1)   Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)   Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES
		Six Months Ended
		June 30, 2022								June 30, 2021
		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)		$	296,230		$	956		0.65	%	$	147,760		$	149		0.20	%
Investment securities			36,295			253		1.41			17,619			183		2.09
Total investments			332,525			1,209		0.73			165,379			332		0.40
Construction and development			31,621			792		5.05			44,081			1,147		5.25
Commercial real estate			562,598			16,290		5.84			500,989			14,422		5.81
Commercial and industrial			59,906			1,991		6.70			149,403			4,478		6.04
Residential real estate			1,929,915			44,619		4.66			1,172,597			28,109		4.83
Consumer and other			236			77		65.80			177			72		82.03
Gross loans(2)			2,584,276			63,769		4.98			1,867,247			48,228		5.21
Total earning assets			2,916,801			64,978		4.49			2,032,626			48,560		4.82
Noninterest-earning assets			144,368								111,665
Total assets			3,061,169								2,144,291
Interest-bearing liabilities:
NOW and savings deposits			192,388			178		0.19			99,732			99		0.20
Money market deposits			1,126,233			2,517		0.45			597,028			711		0.24
Time deposits			415,196			828		0.40			506,646			1,101		0.44
Total interest-bearing deposits			1,733,817			3,523		0.41			1,203,406			1,911		0.32
Borrowings			356,951			582		0.33			90,978			290		0.64
Total interest-bearing liabilities			2,090,768			4,105		0.40			1,294,384			2,201		0.34
Noninterest-bearing liabilities:
Noninterest-bearing deposits			600,117								522,645
Other noninterest-bearing liabilities			67,642								75,695
Total noninterest-bearing liabilities			667,759								598,340
Shareholders' equity			302,642								251,567
Total liabilities and shareholders' equity		$	3,061,169							$	2,144,291
Net interest income					$	60,873							$	46,359
Net interest spread								4.09								4.48
Net interest margin								4.21								4.60
______________________________
(1)   Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.
(2)   Average loan balances include nonaccrual loans and loans held for sale.

 

METROCITY BANKSHARES, INC. LOAN DATA
		As of the Quarter Ended
		June 30, 2022					March 31, 2022					December 31, 2021					September 30, 2021					June 30, 2021
					% of					% of					% of					% of					% of
(Dollars in thousands)		Amount			Total		Amount			Total		Amount			Total		Amount			Total		Amount			Total
Construction and Development		$	45,042		1.6	%	$	38,683		1.6	%	$	38,857		1.6	%	$	64,140		2.7	%	$	58,668		2.8	%
Commercial Real Estate			581,234		20.9			567,031		22.5			520,488		20.7			503,417		21.2			475,658		22.7
Commercial and Industrial			57,843		2.1			66,073		2.6			73,072		2.9			82,099		3.5			134,076		6.4
Residential Real Estate			2,092,952		75.4			1,846,434		73.3			1,879,012		74.8			1,718,593		72.6			1,430,843		68.1
Consumer and other			165		—			130		—			79		—			238		—			169		—
Gross loans		$	2,777,236		100.0	%	$	2,518,351		100.0	%	$	2,511,508		100.0	%	$	2,368,487		100.0	%	$	2,099,414		100.0	%
Unearned income			(7,216)					(6,051)					(6,438)					(6,782)					(7,647)
Allowance for loan losses			(16,678)					(16,674)					(16,952)					(16,445)					(13,860)
Net loans		$	2,753,342				$	2,495,626				$	2,488,118				$	2,345,260				$	2,077,907

 

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
		As of the Quarter Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)		2022			2022			2021			2021			2021
Nonaccrual loans		$	19,966		$	9,506		$	8,759		$	5,955		$	6,623
Past due loans 90 days or more and still accruing			—			—			342			—			—
Accruing troubled debt restructured loans			10,474			2,901			2,697			2,726			2,753
Total non-performing loans			30,440			12,407			11,798			8,681			9,376
Other real estate owned			3,562			3,562			3,618			4,374			4,656
Total non-performing assets		$	34,002		$	15,969		$	15,416		$	13,055		$	14,032
Nonperforming loans to gross loans			1.10	%		0.49	%		0.47	%		0.37	%		0.45	%
Nonperforming assets to total assets			1.07			0.51			0.50			0.47			0.56
Allowance for loan losses to non-performing loans			54.79			134.39			143.69			189.44			147.82

 

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)		2022			2022			2021			2021			2021			2022			2021
Balance, beginning of period		$	16,674		$	16,952		$	16,445		$	13,860		$	11,735		$	16,952		$	10,135
Net charge-offs/(recoveries):
Construction and development			—			—			—			—			—			—			—
Commercial real estate			(2)			(2)			39			(4)			23			(4)			20
Commercial and industrial			(2)			389			—			—			60			387			64
Residential real estate			—			—			—			—			—			—			—
Consumer and other			—			(5)			—			(2)			(3)			(5)			(5)
Total net charge-offs/(recoveries)			(4)			382			39			(6)			80			378			79
Provision for loan losses			—			104			546			2,579			2,205			104			3,804
Balance, end of period		$	16,678		$	16,674		$	16,952		$	16,445		$	13,860		$	16,678		$	13,860
Total loans at end of period		$	2,777,236		$	2,518,351		$	2,511,508		$	2,368,487		$	2,099,414		$	2,777,236		$	2,099,414
Average loans(1)		$	2,597,019		$	2,533,254		$	2,453,402		$	2,241,207		$	1,979,556		$	2,571,633		$	1,867,247
Net charge-offs to average loans			0.00	%		0.06	%		0.01	%		0.00	%		0.02	%		0.03	%		0.01	%
Allowance for loan losses to total loans			0.60			0.66			0.67			0.69			0.66			0.60			0.66
___________________________________
(1)   Excludes loans held for sale

 

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SOURCE MetroCity Bankshares, Inc.

FAQ

What was MetroCity Bankshares' net income for Q2 2022?

MetroCity Bankshares reported a net income of $16.1 million for Q2 2022.

How did the loans perform in Q2 2022 for MCBS?

Total loans increased by 10.3% to $2.77 billion in Q2 2022.

What is the efficiency ratio for MetroCity Bankshares in Q2 2022?

The efficiency ratio was reported at 37.6% for Q2 2022.

How did interest income change for MCBS in Q2 2022?

Interest income increased by 3.4% from the previous quarter.

What are the nonperforming assets reported for MCBS?

Nonperforming assets totaled $34.0 million, or 1.07% of total assets, as of June 30, 2022.