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METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2022
Press Releases

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2022

ATLANTA, Oct. 21, 2022 /PRNewswire/ — MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $16.9 million, or $0.66 per diluted share, for the third quarter of 2022, compared to $16.1 million, or $0.63 per diluted share, for the second quarter of 2022, and $16.9 million, or $0.66 per diluted share, for the third quarter of 2021. For the nine months ended September 30, 2022, the Company reported net income of $52.4 million, or $2.04 per diluted share, compared to $44.3 million, or $1.71 per diluted share, for the same period in 2021.

Third Quarter 2022 Highlights:
  • Annualized return on average assets was 2.07%, compared to 2.16% for the second quarter of 2022 and 2.61% for the third quarter of 2021.
  • Annualized return on average equity was 20.56%, compared to 20.65% for the second quarter of 2022 and 25.23% for the third quarter of 2021.
  • Efficiency ratio of 36.4%, compared to 37.6% for the second quarter of 2022 and 34.8% for the third quarter of 2021.
  • Total assets increased by $180.6 million, or 5.7%, to $3.35 billion from the previous quarter.
  • Total loans increased by $208.3 million, or 7.5%, to $2.98 billion from the previous quarter.
  • Total deposits increased by $173.8 million, or 7.3%, to $2.57 billion from the previous quarter
  • Annualized net charge-off to average loans for the quarter was 0.00%, compared to 0.00% for both the second quarter of 2022 and the third quarter of 2021.

Results of Operations

Net Income

Net income was $16.9 million for the third quarter of 2022, an increase of $793,000, or 4.9%, from $16.1 million for the second quarter of 2022. This increase was primarily due to a $1.7 million credit provision for loan losses recorded during the quarter, an increase in noninterest income of $448,000, and a decrease in noninterest expense of $431,000, offset by a decrease in net interest income of $432,000 and an increase in income tax expense of $1.4 million. Net income increased by $11,000, or 0.1%, in the third quarter of 2022 compared to net income of $16.9 million for the third quarter of 2021. This slight increase was due to an increase in net interest income of $1.6 million, a decrease in provision for loan losses of $4.3 million and a decrease in noninterest expense of $423,000, offset by a decrease in noninterest income of $4.4 million and an increase in provision for income taxes of $1.9 million.

Net Interest Income and Net Interest Margin

Interest income totaled $38.3 million for the third quarter of 2022, an increase of $5.3 million, or 16.0%, from the previous quarter, primarily due to a $276.0 million increase in average loan balances. We recognized Paycheck Protection Program (“PPP”) loan fee income of $145,000 during the third quarter of 2022 compared to $341,000 recognized during the second quarter of 2022. As compared to the third quarter of 2021, interest income for the third quarter of 2022 increased by $9.0 million, or 30.6%, primarily due to an increase in average loan balances of $650.7 million.

Interest expense totaled $8.5 million for the third quarter of 2022, an increase of $5.7 million, or 203.4%, from the previous quarter, primarily due to a 93 basis points increase in deposit costs and a 95 basis points increase in borrowing costs coupled with a $112.8 million increase in average interest-bearing deposits and a $128.6 million increase in average borrowings. As compared to the third quarter of 2021, interest expense for the third quarter of 2022 increased by $7.4 million, or 649.7%, due to a 120 basis points increase in deposit costs and a 135 basis points increase in borrowing costs coupled with a $486.5 million increase in average interest-bearing deposits and a $134.7 million increase in average borrowings.

The net interest margin for the third quarter of 2022 was 3.84% compared to 4.26% for the previous quarter, a decrease of 42 basis points. The yield on average interest-earning assets for the third quarter of 2022 increased by 29 basis points to 4.94% from 4.65% for the previous quarter, while the cost of average interest-bearing liabilities for the third quarter of 2022 increased by 95 basis points to 1.51% from 0.56% for the previous quarter. Average earning assets increased by $232.2 million from the previous quarter, primarily due to an increase in average loans of $276.0 million, offset by a decrease of $42.8 million in average interest-earning cash accounts. Average interest-bearing liabilities increased by $241.4 million from the previous quarter as average interest-bearing deposits increased by $112.8 million and average borrowings increased by $128.6 million.

As compared to the same period in 2021, the net interest margin for the third quarter of 2022 decreased by 73 basis points to 3.84% from 4.57%, primarily due to a 123 basis point increase in the cost of average interest-bearing liabilities of $2.24 billion, offset by a 19 basis point increase in the yield on average interest-earning assets of $3.08 billion. Average earning assets for the third quarter of 2022 increased by $631.2 million from the third quarter of 2021, primarily due to a $650.7 million increase in average loans. Average interest-bearing liabilities for the third quarter of 2022 increased by $621.2 million from the third quarter of 2021, driven by an increase in average interest-bearing deposits of $486.5 million and an increase in average borrowings of $134.7 million.

Noninterest Income

Noninterest income for the third quarter of 2022 was $5.1 million, an increase of $448,000, or 9.6%, from the second quarter of 2022, primarily due to a significant increase in Small Business Administration (“SBA”) servicing income and higher gains on sale of SBA loans as no SBA loans were sold during the second quarter of 2022, partially offset by lower mortgage loan fees, gains on sale of mortgage loans and mortgage servicing income. During the third quarter of 2022, we recorded a $111,000 fair value gain on our SBA servicing asset and no fair value impairment adjustment was recorded on our mortgage servicing asset.

Compared to the same period in 2021, noninterest income for the third quarter of 2022 decreased by $4.4 million, or 46.5%, primarily due to much lower gains on sale of SBA loans, mortgage loan fees and mortgage servicing income.

Noninterest Expense

Noninterest expense for the third quarter of 2022 totaled $12.7 million, a decrease of $431,000, or 3.3%, from $13.1 million for the second quarter of 2022. This decrease was primarily attributable to lower employee salaries, professional fees and FDIC deposit insurance premiums. Compared to the third quarter of 2021, noninterest expense during the third quarter of 2022 decreased by $423,000, or 3.2%, primarily due to lower salaries and commissions, occupancy expenses and bank security expenses, partially offset by higher communications expenses.

The Company’s efficiency ratio was 36.4% for the third quarter of 2022 compared to 37.6% and 34.8% for the second quarter of 2022 and third quarter of 2021, respectively. For the nine months ended September 30, 2022, the efficiency ratio was 35.2% compared with 35.6% for the same period in 2021.

Income Tax Expense

The Company’s effective tax rate for the third quarter of 2022 was 29.3%, compared to 26.0% for the second quarter of 2022 and 23.4% for the third quarter of 2021. The significant increase in the effective tax rate during the third quarter of 2022 was due to additional income tax expense of $1.4 million recorded during the quarter for the re-allocation of state income tax apportionment schedules for prior year’s tax returns.

Balance Sheet

Total Assets

Total assets were $3.35 billion at September 30, 2022, an increase of $180.6 million, or 5.7%, from $3.17 billion at June 30, 2022, and an increase of $598.2 million, or 21.8%, from $2.75 billion at September 30, 2021. The $180.6 million increase in total assets at September 30, 2022 compared to June 30, 2022 was primarily due to increases in loans of $208.3 million, other assets of $13.6 million and federal funds sold of $12.6 million, partially offset by a decrease in cash and due from banks of $56.0 million. The $598.2 million increase in total assets at September 30, 2022 compared to September 30, 2021 was primarily due to increases in loans of $616.6 million, federal funds sold of $13.4 million, equity securities of $9.5 million, bank owned life insurance of $9.6 million and other assets of $33.5 million, partially offset by a $86.9 million decrease in cash and due from banks. 

Loans

Loans held for investment were $2.98 billion at September 30, 2022, an increase of $208.3 million, or 7.5%, compared to $2.77 billion at June 30, 2022, and an increase of $616.6 million, or 26.1%, compared to $2.36 billion at September 30, 2021. The increase in loans at September 30, 2022 compared to June 30, 2022 was primarily due to a $6.3 million increase in construction and development loans, a $27.5 million increase in commercial real estate loans and a $181.7 million increase in residential mortgages, offset by a $5.2 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $1.6 million as of September 30, 2022. PPP loans totaled $8.9 million as of June 30, 2022 and $42.0 million as of September 30, 2021. There were no loans classified as held for sale at September 30, 2022, June 30, 2022 or September 30, 2021.

Deposits

Total deposits were $2.57 billion at September 30, 2022, an increase of $173.8 million, or 7.3%, compared to total deposits of $2.40 billion at June 30, 2022, and an increase of $459.0 million, or 21.7%, compared to total deposits of $2.11 billion at September 30, 2021. The increase in total deposits at September 30, 2022 compared to June 30, 2022 was due to a $199.5 million increase in time deposits and a $5.6 million increase in money market accounts, offset by a $17.9 million decrease in noninterest-bearing demand deposits, a $7.4 million decrease in interest-bearing demand deposits and a $6.0 million decrease in savings accounts.

Noninterest-bearing deposits were $602.2 million at September 30, 2022, compared to $620.2 million at June 30, 2022 and $640.3 million at September 30, 2021. Noninterest-bearing deposits constituted 23.4% of total deposits at September 30, 2022, compared to 25.9% at June 30, 2022 and 30.3% at September 30, 2021. Interest-bearing deposits were $1.97 billion at September 30, 2022, compared to $1.78 billion at June 30, 2022 and $1.47 billion at September 30, 2021. Interest-bearing deposits constituted 76.6% of total deposits at September 30, 2022, compared to 74.1% at June 30, 2022 and 69.7% at September 30, 2021.

Asset Quality

The Company recorded a credit provision for loan losses of $1.7 million during the third quarter of 2022, compared to a $2.6 million provision expense during the third quarter of 2021. No provision for loan losses was recorded during the second quarter of 2022. The credit provision recorded during the third quarter of 2022 was due to the release of additional reserves allocated for the uncertainties in our loan portfolio caused by the ongoing COVID-19 pandemic. Annualized net charge-offs to average loans for the third quarter of 2022 was 0.00%, compared to 0.00% for both the second quarter of 2022 and third 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 $32.5 million, or 0.97% of total assets, at September 30, 2022, a decrease of $1.5 million from $34.0 million, or 1.07% of total assets, at June 30, 2022, and an increase of $19.4 million from $13.1 million, or 0.47% of total assets, at September 30, 2021. The decrease in nonperforming assets at September 30, 2022 compared to June 30, 2022 was due to a $2.3 million decrease in nonaccrual loans and a $37,000 decrease in accruing troubled debt restructurings, offset by a $766,000 increase in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.50% at September 30, 2022, compared to 0.60% at June 30, 2022 and 0.69% at September 30, 2021. Allowance for loan losses as a percentage of nonperforming loans was 53.25% at September 30, 2022, compared to 54.79% and 189.44% at June 30, 2022 and September 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; 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; higher inflation and its impacts; 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; 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

 

METROCITYBANKSHARES, INC

SELECTED FINANCIAL DATA
 




As of and for the Three Months Ended


As of and for the Nine Months Ended




September 30,


June 30,


March 31,


December 31,


September 30,


September 30,


September 30,


(Dollars in thousands, except per share data)


2022


2022


2022


2021


2021


2022


2021


Selected income statement data:























Interest income


$

38,297


$

33,025


$

31,953


$

30,857


$

29,324


$

103,275


$

77,884


Interest expense



8,509



2,805



1,300



1,236



1,135



12,614



3,336


Net interest income



29,788



30,220



30,653



29,621



28,189



90,661



74,548


Provision for loan losses



(1,703)





104



546



2,579



(1,599)



6,383


Noninterest income



5,101



4,653



7,656



7,491



9,532



17,410



26,312


Noninterest expense



12,688



13,119



12,179



12,512



13,111



37,986



35,912


Income tax expense



7,011



5,654



6,597



6,609



5,149



19,262



14,309


Net income



16,893



16,100



19,429



17,445



16,882



52,422



44,256


Per share data:























Basic income per share


$

0.66


$

0.63


$

0.76


$

0.69


$

0.66


$

2.06


$

1.73


Diluted income per share


$

0.66


$

0.63


$

0.76


$

0.68


$

0.66


$

2.04


$

1.71


Dividends per share


$

0.15


$

0.15


$

0.15


$

0.14


$

0.12


$

0.45


$

0.32


Book value per share (at period end)


$

13.76


$

12.69


$

12.19


$

11.40


$

10.84


$

13.76


$

10.84


Shares of common stock outstanding



25,370,417



25,451,125



25,465,236



25,465,236



25,465,236



25,370,417



25,465,236


Weighted average diluted shares



25,702,023



25,729,156



25,719,035



25,720,128



25,729,043



25,732,004



25,805,480


Performance ratios:























Return on average assets



2.07

%


2.16

%


2.52

%


2.33

%


2.61

%


2.25

%


2.59

%

Return on average equity



20.56



20.65



26.94



24.80



25.23



22.57



23.09


Dividend payout ratio



22.75



23.85



19.76



20.52



18.24



21.98



18.64


Yield on total loans



5.11



4.95



5.00



4.93



5.16



5.03



5.19


Yield on average earning assets



4.94



4.65



4.34



4.32



4.75



4.65



4.79


Cost of average interest bearing liabilities



1.51



0.56



0.24



0.24



0.28



0.79



0.32


Cost of deposits



1.48



0.55



0.27



0.27



0.28



0.79



0.30


Net interest margin



3.84



4.26



4.16



4.15



4.57



4.08



4.59


Efficiency ratio(1)



36.37



37.62



31.79



33.71



34.76



35.15



35.61


Asset quality data (at period end):























Net charge-offs/(recoveries) to average loans held for investment



0.00

%


0.00

%


0.06

%


0.01

%


0.00

%


0.02

%


0.00

%

Nonperforming assets to gross loans and OREO



1.09



1.22



0.63



0.61



0.55



1.09



0.55


ALL to nonperforming loans



53.25



54.79



134.39



143.69



189.44



53.25



189.44


ALL to loans held for investment



0.50



0.60



0.66



0.67



0.69



0.50



0.69


Balance sheet and capital ratios:























Gross loans held for investment to deposits



116.21

%


115.86

%


105.72

%


110.98

%


112.15

%


116.21

%


112.15

%

Noninterest bearing deposits to deposits



23.43



25.87



25.84



26.18



30.32



23.43



30.32


Common equity to assets



10.42



10.20



9.88



9.34



10.04



10.42



10.04


Leverage ratio



9.90



10.31



9.46



9.44



10.34



9.90



10.34


Common equity tier 1 ratio



16.18



16.70



17.24



16.76



16.61



16.18



16.61


Tier 1 risk-based capital ratio



16.18



16.70



17.24



16.76



16.61



16.18



16.61


Total risk-based capital ratio



16.94



17.60



18.22



17.77



17.64



16.94



17.64


Mortgage and SBA loan data:























Mortgage loans serviced for others


$

550,587


$

589,500


$

605,112


$

608,208


$

669,358


$

550,587


$

669,358


Mortgage loan production



255,662



326,973



162,933



237,195



368,790



745,568



958,995


Mortgage loan sales





37,928



56,987







94,915




SBA loans serviced for others



489,120



504,894



528,227



542,991



549,818



489,120



549,818


SBA loan production



22,193



21,407



50,689



52,727



85,265



94,289



233,107


SBA loan sales



8,588





22,898



30,169



37,984



31,486



94,541


_____________________________________________

(1)   Represents noninterest expense divided by the sum of net interest income plus noninterest income.






 

 

METROCITYBANKSHARES, INC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)



As of the Quarter Ended



September 30,


June 30,


March 31,


December 31,


September 30,

(Dollars in thousands, except per share data)


2022


2022


2022


2021


2021

ASSETS
















Cash and due from banks


$

164,054


$

220,027


$

418,988


$

432,523


$

250,995

Federal funds sold



15,669



3,069



5,743



8,818



2,294

Cash and cash equivalents



179,723



223,096



424,731



441,341



253,289

Equity securities



10,452



10,778



11,024



11,386



993

Securities available for sale (at fair value)



19,978



21,394



23,886



25,733



16,507

Loans



2,978,318



2,770,020



2,512,300



2,505,070



2,361,705

Allowance for loan losses



(14,982)



(16,678)



(16,674)



(16,952)



(16,445)

Loans less allowance for loan losses



2,963,336



2,753,342



2,495,626



2,488,118



2,345,260

Loans held for sale







37,928





Accrued interest receivable



11,732



10,990



10,644



11,052



10,737

Federal Home Loan Bank stock



15,619



15,619



15,806



19,701



12,201

Premises and equipment, net



13,664



12,847



12,814



13,068



13,302

Operating lease right-of-use asset



8,835



8,518



8,925



9,338



9,672

Foreclosed real estate, net



4,328



3,562



3,562



3,618



4,374

SBA servicing asset, net



8,324



8,216



10,554



10,234



10,916

Mortgage servicing asset, net



4,975



6,090



6,925



7,747



8,593

Bank owned life insurance



68,697



68,267



67,841



59,437



59,061

Other assets



38,776



25,131



12,051



5,385



5,323

Total assets


$

3,348,439


$

3,167,850


$

3,142,317


$

3,106,158


$

2,750,228


















LIABILITIES
















Noninterest-bearing deposits


$

602,246


$

620,182


$

615,650


$

592,444


$

640,312

Interest-bearing deposits



1,968,607



1,776,826



1,766,491



1,670,576



1,471,515

Total deposits



2,570,853



2,397,008



2,382,141



2,263,020



2,111,827

Federal Home Loan Bank advances



375,000



375,000



380,000



500,000



300,000

Other borrowings



396



399



405



459



468

Operating lease liability



9,303



9,031



9,445



9,861



10,241

Accrued interest payable



1,489



703



207



204



208

Other liabilities



42,369



62,640



59,709



42,391



51,330

Total liabilities


$

2,999,410


$

2,844,781


$

2,831,907


$

2,815,935


$

2,474,074


















SHAREHOLDERS’ EQUITY
















Preferred stock











Common stock



254



255



255



255



255

Additional paid-in capital



48,914



49,831



51,753



51,559



51,181

Retained earnings



279,475



266,426



254,165



238,577



224,711

Accumulated other comprehensive income (loss)



20,386



6,557



4,237



(168)



7

Total shareholders’ equity



349,029



323,069



310,410



290,223



276,154

Total liabilities and shareholders’ equity


$

3,348,439


$

3,167,850


$

3,142,317


$

3,106,158


$

2,750,228

 

 

METROCITYBANKSHARES, INC

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)



Three Months Ended


Nine Months Ended



September 30,


June 30,


March 31,


December 31,


September 30,


September 30,


September 30,

(Dollars in thousands, except per share data)


2022


2022


2022


2021


2021


2022


2021

Interest and dividend income:






















Loans, including Fees


$

37,263


$

32,310


$

31,459


$

30,496


$

29,127


$

101,032


$

77,355

Other investment income



1,011



711



492



360



196



2,214



525

Federal funds sold



23



4



2



1



1



29



4

Total interest income



38,297



33,025



31,953



30,857



29,324



103,275



77,884
























Interest expense:






















Deposits



6,964



2,384



1,139



1,069



968



10,487



2,879

FHLB advances and other borrowings



1,545



421



161



167



167



2,127



457

Total interest expense



8,509



2,805



1,300



1,236



1,135



12,614



3,336
























Net interest income



29,788



30,220



30,653



29,621



28,189



90,661



74,548













































Provision for loan losses



(1,703)





104



546



2,579



(1,599)



6,383













































Net interest income after provision for loan losses



31,491



30,220



30,549



29,075



25,610



92,260



68,165













































Noninterest income:






















Service charges on deposit accounts



509



518



481



466



446



1,508



1,230

Other service charges, commissions and fees



2,676



3,647



2,159



3,015



4,147



8,482



11,422

Gain on sale of residential mortgage loans





806



1,211







2,017



Mortgage servicing income, net



(358)



(5)



101



95



132



(262)



(659)

Gain on sale of SBA loans



500





1,568



2,895



3,358



2,068



8,057

SBA servicing income, net



1,330



(1,077)



1,644



634



1,212



1,897



5,250

Other income



444



764



492



386



237



1,700



1,012

Total noninterest income



5,101



4,653



7,656



7,491



9,532



17,410



26,312
























Noninterest expense:






















Salaries and employee benefits



7,756



7,929



7,096



7,819



8,679



22,781



22,293

Occupancy



1,167



1,200



1,227



1,206



1,295



3,594



3,822

Data Processing



270



261



277



252



257



808



848

Advertising



158



126



150



148



131



434



393

Other expenses



3,337



3,603



3,429



3,087



2,749



10,369



8,556

Total noninterest expense



12,688



13,119



12,179



12,512



13,111



37,986



35,912














Income before provision for income taxes



23,904



21,754



26,026



24,054



22,031



71,684



58,565

Provision for income taxes



7,011



5,654



6,597



6,609



5,149



19,262



14,309

Net income available to common shareholders


$

16,893


$

16,100


$

19,429


$

17,445


$

16,882


$

52,422


$

44,256

 

 

METROCITYBANKSHARES, INC

AVERAGE BALANCES AND YIELDS/RATES



Three Months Ended




September 30, 2022


June 30, 2022


September 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)


$

151,177


$

903


2.37

%

$

193,955


$

592


1.22

%

$

188,296


$

111


0.23

%

Investment securities



34,792



131


1.49



35,754



123


1.38



17,244



86


1.98


Total investments



185,969



1,034


2.21



229,709



715


1.25



205,540



197


0.38


Construction and development



38,636



530


5.44



32,647



414


5.09



53,871



727


5.35


Commercial real estate



601,370



9,905


6.53



575,917



8,403


5.85



507,039



7,648


5.98


Commercial and industrial



50,605



909


7.13



54,423



915


6.74



102,813



2,576


9.94


Residential real estate



2,201,186



25,885


4.67



1,952,730



22,545


4.63



1,577,276



18,144


4.56


Consumer and other



137



34


98.46



266



33


49.76



208



32


61.04


Gross loans(2)



2,891,934



37,263


5.11



2,615,983



32,310


4.95



2,241,207



29,127


5.16


Total earning assets



3,077,903



38,297


4.94



2,845,692



33,025


4.65



2,446,747



29,324


4.75


Noninterest-earning assets



158,579








146,669








123,888







Total assets



3,236,482








2,992,361








2,570,635







Interest-bearing liabilities:


























NOW and savings deposits



186,459



338


0.72



197,460



102


0.21



115,775



59


0.20


Money market deposits



1,179,954



5,189


1.74



1,166,272



1,860


0.64



757,654



432


0.23


Time deposits



499,577



1,437


1.14



389,449



422


0.43



506,049



477


0.37


Total interest-bearing deposits



1,865,990



6,964


1.48



1,753,181



2,384


0.55



1,379,478



968


0.28


Borrowings



375,405



1,545


1.63



246,779



421


0.68



240,704



167


0.28


Total interest-bearing liabilities



2,241,395



8,509


1.51



1,999,960



2,805


0.56



1,620,182



1,135


0.28


Noninterest-bearing liabilities:


























Noninterest-bearing deposits



599,902








611,763








600,388







Other noninterest-bearing liabilities



69,131








67,979








84,568







Total noninterest-bearing liabilities



669,033








679,742








684,956







Shareholders’ equity



326,054








312,659








265,497







Total liabilities and shareholders’ equity


$

3,236,482







$

2,992,361







$

2,570,635







Net interest income





$

29,788







$

30,220







$

28,189




Net interest spread








3.43








4.09








4.47


Net interest margin








3.84








4.26








4.57


______________________________________________

(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



Nine Months Ended




September 30, 2022


September 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)


$

247,348


$

1,860


1.01

%

$

161,420


$

260


0.22

%

Investment securities



35,789



383


1.43



17,493



269


2.06


Total investments



283,137



2,243


1.06



178,913



529


0.40


Construction and development



33,985



1,322


5.20



47,380



1,874


5.29


Commercial real estate



575,664



26,195


6.08



496,957



22,069


5.94


Commercial and industrial



56,772



2,900


6.83



133,703



7,054


7.05


Residential real estate



2,021,332



70,504


4.66



1,315,043



46,254


4.70


Consumer and other



203



111


73.11



187



104


74.36


Gross loans(2)



2,687,956



101,032


5.03



1,993,270



77,355


5.19


Total earning assets



2,971,093



103,275


4.65



2,172,183



77,884


4.79


Noninterest-earning assets



149,157








115,784







Total assets



3,120,250








2,287,967







Interest-bearing liabilities:


















NOW and savings deposits



190,390



515


0.36



105,139



158


0.20


Money market deposits



1,144,337



7,706


0.90



651,158



1,143


0.23


Time deposits



443,632



2,266


0.68



506,445



1,578


0.42


Total interest-bearing deposits



1,778,359



10,487


0.79



1,262,742



2,879


0.30


Borrowings



363,170



2,127


0.78



141,435



457


0.43


Total interest-bearing liabilities



2,141,529



12,614


0.79



1,404,177



3,336


0.32


Noninterest-bearing liabilities:


















Noninterest-bearing deposits



600,045








548,844







Other noninterest-bearing liabilities



68,144








78,685







Total noninterest-bearing liabilities



668,189








627,529







Shareholders’ equity



310,532








256,261







Total liabilities and shareholders’ equity


$

3,120,250







$

2,287,967







Net interest income





$

90,661







$

74,548




Net interest spread








3.86








4.47


Net interest margin








4.08








4.59


_______________________________________________

(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




September 30, 2022


June 30, 2022


March 31, 2022


December 31, 2021


September 30, 2021







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and Development


$

51,300


1.7

%

$

45,042


1.6

%

$

38,683


1.6

%

$

38,857


1.6

%

$

64,140


2.7

%

Commercial Real Estate



608,700


20.4



581,234


20.9



567,031


22.5



520,488


20.7



503,417


21.2


Commercial and Industrial



52,693


1.8



57,843


2.1



66,073


2.6



73,072


2.9



82,099


3.5


Residential Real Estate



2,274,679


76.1



2,092,952


75.4



1,846,434


73.3



1,879,012


74.8



1,718,593


72.6


Consumer and other



198




165




130




79




238



Gross loans


$

2,987,570


100.0

%

$

2,777,236


100.0

%

$

2,518,351


100.0

%

$

2,511,508


100.0

%

$

2,368,487


100.0

%

Unearned income



(9,252)





(7,216)





(6,051)





(6,438)





(6,782)




Allowance for loan losses



(14,982)





(16,678)





(16,674)





(16,952)





(16,445)




Net loans


$

2,963,336




$

2,753,342




$

2,495,626




$

2,488,118




$

2,345,260




 

 

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS



As of the Quarter Ended




September 30,


June 30,


March 31,


December 31,


September 30,


(Dollars in thousands)


2022


2022


2022


2021


2021


Nonaccrual loans


$

17,700


$

19,966


$

9,506


$

8,759


$

5,955


Past due loans 90 days or more and still accruing









342




Accruing troubled debt restructured loans



10,437



10,474



2,901



2,697



2,726


Total non-performing loans



28,137



30,440



12,407



11,798



8,681


Other real estate owned



4,328



3,562



3,562



3,618



4,374


Total non-performing assets


$

32,465


$

34,002


$

15,969


$

15,416


$

13,055





















Nonperforming loans to gross loans



0.94

%


1.10

%


0.49

%


0.47

%


0.37

%

Nonperforming assets to total assets



0.97



1.07



0.51



0.50



0.47


Allowance for loan losses to non-performing loans



53.25



54.79



134.39



143.69



189.44


 

 

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES




As of and for the Three Months Ended


As of and for the Nine Months Ended




September 30,


June 30,


March 31,


December 31,


September 30,


September 30,


September 30,


(Dollars in thousands)


2022


2022


2022


2021


2021


2022


2021


Balance, beginning of period


$

16,678


$

16,674


$

16,952


$

16,445


$

13,860


$

16,952


$

10,135


Net charge-offs/(recoveries):























Construction and development
















Commercial real estate



(1)



(2)



(2)



39



(4)



(5)



16


Commercial and industrial



(6)



(2)



389







381



64


Residential real estate
















Consumer and other







(5)





(2)



(5)



(7)


Total net charge-offs/(recoveries)



(7)



(4)



382



39



(6)



371



73


Provision for loan losses



(1,703)





104



546



2,579



(1,599)



6,383


Balance, end of period


$

14,982


$

16,678


$

16,674


$

16,952


$

16,445


$

14,982


$

16,445


Total loans at end of period


$

2,987,570


$

2,777,236


$

2,518,351


$

2,511,508


$

2,368,487


$

2,987,570


$

2,368,487


Average loans(1)


$

2,891,934


$

2,597,019


$

2,533,254


$

2,453,402


$

2,241,207


$

2,678,474


$

1,993,270


Net charge-offs to average loans



0.00

%


0.00

%


0.06

%


0.01

%


0.00

%


0.02

%


0.00

%

Allowance for loan losses to total loans



0.50



0.60



0.66



0.67



0.69



0.50



0.69


________________________________________________

(1)   Excludes loans held for sale

 

 

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