MetroCity Bankshares, Inc. Reports Earnings For Third Quarter 2021

Published: Oct. 22, 2021 at 9:52 AM EDT

ATLANTA, Oct. 22, 2021 /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 2021, compared to $14.4 million, or $0.56 per diluted share, for the second quarter of 2021, and $9.4 million, or $0.36 per diluted share, for the third quarter of 2020. For the nine months ended September 30, 2021, the Company reported net income of $44.3 million, or $1.71 per diluted share, compared to $26.9 million, or $1.05 per diluted share, for the same period in 2020.

MetroCity Logo (PRNewsfoto/MetroCity Bankshares)
MetroCity Logo (PRNewsfoto/MetroCity Bankshares)

Third Quarter 2021 Highlights:

  • Annualized return on average assets was 2.61%, compared to 2.53% for the second quarter of 2021 and 2.20% for the third quarter of 2020.
  • Annualized return on average equity was 25.23%, compared to 22.51% for the second quarter of 2021 and 16.22% for the third quarter of 2020.
  • Efficiency ratio of 34.8%, compared to 36.2% for the second quarter of 2021 and 42.5% for the third quarter of 2020.
  • Total assets increased by $232.4 million, or 9.2%, to $2.75 billion from the previous quarter.
  • Total loans increased by $269.9 million, or 12.9%, to $2.36 billion from the previous quarter.
  • Total deposits increased by $137.0 million, or 6.9%, to $2.11 billion from the previous quarter.
  • Net interest margin was 4.57%, compared to 4.60% for the second quarter of 2021 and 3.97% for the third quarter of 2020.

Results of Operations

Net Income

Net income was $16.9 million for the third quarter of 2021, an increase of $2.5 million, or 17.3%, from $14.4 million for the second quarter of 2021. This increase was due to an increase in net interest income of $3.4 million and an increase in noninterest income of $938,000, offset by an increase in provision for loan losses of $374,000, an increase in noninterest expense of $1.0 million and an increase in provision for income taxes of $421,000. Net income increased $7.5 million, or 79.9%, in the third quarter of 2021 compared to net income of $9.4 million for the third quarter of 2020. This increase was due to an increase in net interest income of $12.2 million and an increase in noninterest income of $1.6 million, offset by an increase in provision for loan losses of $1.1 million, an increase in noninterest expense of $3.0 million and an increase in provision for income taxes of $2.2 million.

Net Interest Income and Net Interest Margin

Interest income totaled $29.3 million for the third quarter of 2021, an increase of $3.4 million, or 13.3%, from the previous quarter, primarily due to a $261.7 million increase in average loan balances. We also recognized Paycheck Protection Program ("PPP") loan fee income of $1.9 million during the third quarter of 2021 compared to $1.7 million recognized during the second quarter of 2021. As compared to the third quarter of 2020, interest income for the third quarter of 2021 increased by $11.2 million, or 61.7%, primarily due to an increase in average loan balances of $833.5 million.
Interest expense totaled $1.1 million for the third quarter of 2021, a slight increase of $72,000, or 6.8%, from the previous quarter, primarily due to a $92.0 million increase in average deposits as deposit costs remained relatively flat. As compared to the third quarter of 2020, interest expense for the third quarter of 2021 decreased by $1.1 million, or 48.2%, primarily due to a 66 basis points decrease in deposit costs coupled with a $40.6 million decrease in higher cost average time deposits.
The net interest margin for the third quarter of 2021 was 4.57% compared to 4.60% for the previous quarter, a decrease of three basis points. The cost of average interest-bearing liabilities for the third quarter of 2021 decreased by 3 basis points to 0.28% compared with the previous quarter, while the yield on average interest-earning assets for the third quarter of 2021 decreased by 4 basis points to 4.75% from 4.79% for the previous quarter. Average earning assets increased by $280.5 million from the previous quarter, primarily due to an increase in average loans of $261.7 million and an $18.7 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $238.3 million from the previous quarter as average interest-bearing deposits increased by $92.0 million and average borrowings increased by $146.3 million. The inclusion of PPP loan average balances, interest and fees had a 23 basis point impact on the yield on average loans and a 22 basis points impact on the net interest margin for the third quarter of 2021.
As compared to the same period in 2020, the net interest margin for the third quarter of 2021 increased by 60 basis points to 4.57% from 3.97%, primarily due to a 63 basis point decrease in the cost of average interest-bearing liabilities of $1.62 billion and an increase of 24 basis points in the yield on average interest-earning assets of $2.45 billion. Average earning assets for the third quarter of 2021 increased by $848.1 million from the third quarter of 2020, primarily due to a $833.5 million increase in average loans and a $55.5 million increase in average interest-earning cash accounts, offset by a $40.0 million decrease in average securities purchased under agreements to resell. Average interest-bearing liabilities for the third quarter of 2021 increased by $665.4 million from the third quarter of 2020, driven by an increase in average interest-bearing deposits of $509.3 million and an increase in average borrowings of $156.1 million.

Noninterest Income

Noninterest income for the third quarter of 2021 was $9.5 million, an increase of $938,000, or 10.9%, from the second quarter of 2021, primarily due to higher mortgage loan fees, mortgage servicing income and gains on sale of SBA loans, partially offset by a decrease in SBA servicing income. During the third quarter of 2021, we recorded a $225,000 fair value adjustment charge on our SBA servicing asset and a $420,000 fair value impairment recovery on our mortgage servicing asset. These servicing asset adjustments had a $0.01 per share impact on our diluted earnings per share for the quarter.
Compared to the same period in 2020, noninterest income for the third quarter of 2021 increased by $1.6 million, or 19.7%, primarily due to the increase in mortgage loan fees and gains on sale of SBA loans, partially offset by a decrease in mortgage and SBA servicing income. Mortgage loan originations totaled $368.8 million during the third quarter of 2021 compared to $120.3 million during the third quarter of 2020. There were no mortgage loan sales during the third quarter of 2021 or 2020.

Noninterest Expense

Noninterest expense for the third quarter of 2021 totaled $13.1 million, an increase of $1.0 million, or 8.4%, from $12.1 million for the second quarter of 2021. This increase was primarily attributable to higher salaries and employee benefits. Compared to the third quarter of 2020, noninterest expense during the third quarter of 2021 increased by $3.0 million, or 29.2%, primarily due to higher salaries and employee benefits and  loan related expenses.
The Company's efficiency ratio was 34.8% for the third quarter of 2021 compared to 36.2% and 42.5% for the second quarter of 2021 and third quarter of 2020, respectively. For the nine months ended September 30, 2021, the efficiency ratio was 35.6% compared with 43.7% for the same period in 2020.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2021 was 23.4%, compared to 24.7% for the second quarter of 2021 and 23.7% for the third quarter of 2020.

Balance Sheet

Total Assets

Total assets were $2.75 billion at September 30, 2021, an increase of $232.4 million, or 9.2%, from $2.52 billion at June 30, 2021, and an increase of $1.01 billion, or 58.1%, from $1.74 billion at September 30, 2020. The $232.4 million increase in total assets at September 30, 2021 compared to June 30, 2021 was primarily due to increases in loans of $269.9 million and bank owned life insurance of $22.8 million, partially offset by a decrease in cash and due from banks of $58.3 million and a $2.6 million increase in the allowance for loan losses. The $1.01 billion increase in total assets at September 30, 2021 compared to September 30, 2020 was primarily due to increases in loans of $901.8 million, cash and due from banks of $141.7 million and bank owned life insurance of $23.5 million, partially offset by a $40.0 million decrease in securities purchased under agreements to resell, a $6.0 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $7.1 million

Loans

Loans held for investment were $2.36 billion at September 30, 2021, an increase of $269.9 million, or 12.9%, compared to $2.09 billion at June 30, 2021, and an increase of $901.8 million, or 61.8%, compared to $1.46 billion at September 30, 2020. The increase in loans held for investment at September 30, 2021 compared to June 30, 2021 was primarily due to a $287.8 million increase in residential mortgages, a $27.8 million increase in commercial real estate loans and a $5.5 million increase in construction and development loans, offset by a $52.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $42.0 million as of September 30, 2021. There were no loans classified as held for sale at September 30, 2021, June 30, 2021 or September 30, 2020.

Deposits

Total deposits were $2.11 billion at September 30, 2021, an increase of $137.0 million, or 6.9%, compared to total deposits of $1.97 billion at June 30, 2021, and an increase of $774.0 million, or 57.9%, compared to total deposits of $1.34 billion at September 30, 2020. The increase in total deposits at September 30, 2021 compared to June 30, 2021 was primarily due to the $22.3 million increase in noninterest-bearing demand deposits, $126.6 million increase in money market accounts and a $12.3 million increase in interest-bearing demand deposits, offset by a $24.6 million increase in time deposits.
Noninterest-bearing deposits were $640.3 million at September 30, 2021, compared to $618.1 million at June 30, 2021 and $460.7 million at September 30, 2020. Noninterest-bearing deposits constituted 30.3% of total deposits at September 30, 2021, compared to 31.3% at June 30, 2021 and 34.4% at September 30, 2020. Interest-bearing deposits were $1.47 billion at September 30, 2021, compared to $1.36 billion at June 30, 2021 and $877.1 million at September 30, 2020. Interest-bearing deposits constituted 69.7% of total deposits at September 30, 2021, compared to 68.7% at June 30, 2021 and 65.6% at September 30, 2020.

Asset Quality

The Company recorded a provision for loan losses of $2.6 million during the third quarter of 2021. Annualized net charge-offs to average loans for the third quarter of 2021 was 0.00%, compared to 0.02% for the second quarter of 2021 and 0.00% for the third quarter of 2020. We continue to include qualitative factors in our allowance for loan losses calculation in light of the continued economic uncertainties caused by the ongoing COVID-19 pandemic and related variants, partially resulting in the increased provision expense recorded during the third quarter of 2021 along with the growth in our loan portfolio. 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 $13.1 million, or 0.47% of total assets, at September 30, 2021, a decrease of $1.1 million from $14.0 million, or 0.56% of total assets, at June 30, 2021, and a decrease of $4.4 million from $17.5 million, or 1.01% of total assets, at September 30, 2020. The decrease in nonperforming assets at September 30, 2021 compared to June 30, 2021 was primarily due to a $668,000 decrease in nonaccrual loans and a $282,000 decrease in other real estate owned.
Allowance for loan losses as a percentage of total loans was 0.69% at September 30, 2021, compared to 0.66% at June 30, 2021 and 0.64% at September 30, 2020. Excluding outstanding PPP loans of $42.0 million as of September 30, 2021, $93.1 million as of June 30, 2021 and $96.9 million as of September 30, 2020, the allowance for loan losses as a percentage of total loans was 0.71% at September 30, 2021, 0.69% at June 30, 2021 and 0.68% at September 30, 2020. Allowance for loan losses as a percentage of nonperforming loans was 189.44% at September 30, 2021, compared to 147.82% and 54.24% at June 30, 2021 and September 30, 2020, respectively.

COVID-19

As of September 30, 2021, we had two non-SBA commercial customers with outstanding loan balances totaling $8.1 million that were under approved payment deferrals. This is a decline from the active payment deferrals as of June 30, 2021 that were granted to six non-SBA commercial customers with outstanding balances totaling $15.3 million. As of September 30, 2021, we had six SBA loans with outstanding gross loan balances totaling $11.7 million ($2.9 million unguaranteed book balance) that were under approved payment deferrals.  As of October 20, 2021, the SBA had granted forgiveness on (1) PPP loans totaling $93.5 million, or 96.4% of PPP loans funded from the first round of PPP funding under the Coronavirus Aid, Relief and Economic Security Act, and (2) PPP loans totaling $24.8 million, or 39.9% of PPP loans funded under the Economic Aid Act.

About MetroCity Bankshares, Inc.

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

Forward-Looking Statements

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

Contacts




Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

METROCITY BANKSHARES, INC.
SELECTED FINANCIAL DATA




As of and for the Three Months Ended


As of and for the Nine Months Ended




September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


September 30, 


September 30, 


(Dollars in thousands, except per share data)


2021


2021


2021


2020


2020


2021


2020


Selected income statement data:  























Interest income


$

29,324


$

25,888


$

22,672


$

19,839


$

18,131


$

77,884


$

57,770


Interest expense



1,135



1,063



1,138



1,411



2,192



3,336



10,078


Net interest income



28,189



24,825



21,534



18,428



15,939



74,548



47,962


Provision for loan losses



2,579



2,205



1,599



956



1,450



6,383



2,511


Noninterest income



9,532



8,594



8,186



6,138



7,964



26,312



21,073


Noninterest expense



13,111



12,093



10,708



11,077



10,150



35,912



30,023


Income tax expense



5,149



4,728



4,432



3,079



2,918



14,309



9,291


Net income



16,882



14,393



12,981



9,454



9,385



44,256



26,940


Per share data:























Basic income per share


$

0.66


$

0.56


$

0.51


$

0.37


$

0.37


$

1.73


$

1.05


Diluted income per share


$

0.66


$

0.56


$

0.50


$

0.37


$

0.36


$

1.71


$

1.05


Dividends per share


$

0.12


$

0.10


$

0.10


$

0.09


$

0.09


$

0.32


$

0.31


Book value per share (at period end)


$

10.84


$

10.33


$

9.95


$

9.54


$

9.23


$

10.84


$

9.23


Shares of common stock outstanding



25,465,236



25,578,668



25,674,573



25,674,573



25,674,067



25,465,236



25,674,067


Weighted average diluted shares



25,729,043



25,833,328



25,881,827



25,870,885



25,858,741



25,805,480



25,774,500


Performance ratios:























Return on average assets



2.61

%


2.53

%


2.62

%


2.14

%


2.20

%


2.59

%


2.17

%

Return on average equity



25.23



22.51



21.35



15.78



16.22



23.09



16.10


Dividend payout ratio



18.24



17.95



19.91



24.60



24.78



18.64



29.62


Yield on total loans



5.16



5.21



5.20



5.14



5.05



5.19



5.60


Yield on average earning assets



4.75



4.79



4.85



4.80



4.51



4.79



4.95


Cost of average interest bearing liabilities



0.28



0.31



0.38



0.56



0.91



0.32



1.35


Cost of deposits



0.28



0.29



0.36



0.55



0.94



0.30



1.41


Net interest margin



4.57



4.60



4.60



4.46



3.97



4.59



4.08


Efficiency ratio(1)



34.76



36.19



36.03



45.09



42.46



35.61



43.66


Asset quality data (at period end):  























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



0.00

%


0.02

%


0.00

%


0.04

%


0.00

%


0.00

%


0.00

%

Nonperforming assets to gross loans and OREO



0.55



0.67



0.84



1.03



1.19



0.55



1.19


ALL to nonperforming loans



189.44



147.82



98.33



77.40



54.24



189.44



54.24


ALL to loans held for investment



0.69



0.66



0.63



0.62



0.64



0.69



0.64


Balance sheet and capital ratios:























Gross loans held for investment to deposits



112.15

%


106.31

%


107.33

%


110.48

%


109.50

%


112.15

%


109.50

%

Noninterest bearing deposits to deposits



30.32



31.30



31.28



31.28



34.44



30.32



34.44


Common equity to assets



10.04



10.50



11.85



12.90



13.63



10.04



13.63


Leverage ratio



10.34



11.14



12.23



13.44



13.44



10.34



13.44


Common equity tier 1 ratio



16.64



17.75



18.97



20.00



21.09



16.64



21.09


Tier 1 risk-based capital ratio



16.64



17.75



18.97



20.00



21.09



16.64



21.09


Total risk-based capital ratio



17.67



18.72



19.88



20.86



21.96



17.67



21.96


Mortgage and SBA loan data:  























Mortgage loans serviced for others


$

669,358


$

746,660


$

856,432


$

961,670


$

1,063,500


$

669,358


$

1,063,500


Mortgage loan production



368,790



326,507



263,698



194,951



120,337



958,995



289,263


Mortgage loan sales















92,737


SBA loans serviced for others



549,818



549,238



521,182



507,442



500,047



549,818



500,047


SBA loan production



85,265



67,376



80,466



34,631



52,742



233,107



211,088


SBA loan sales



37,984



34,158



22,399



25,505



37,923



94,541



103,128






(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



September 30, 


June 30, 


March 31, 


December 31, 


September 30, 

(Dollars in thousands, except per share data)


2021


2021


2021


2020


2020

ASSETS
















Cash and due from banks


$

250,995


$

309,289


$

169,775


$

140,744


$

109,263

Federal funds sold



2,294



4,644



4,444



9,944



17,268

Cash and cash equivalents



253,289



313,933



174,219



150,688



126,531

Securities purchased under agreements to resell











40,000

Securities available for sale (at fair value)



16,507



16,722



18,739



18,117



18,204

Equity securities



993









Loans



2,361,705



2,091,767



1,866,785



1,630,344



1,459,899

Allowance for loan losses



(16,445)



(13,860)



(11,735)



(10,135)



(9,339)

Loans less allowance for loan losses



2,345,260



2,077,907



1,855,050



1,620,209



1,450,560

Loans held for sale











Accrued interest receivable



10,737



10,668



10,515



10,671



7,999

Federal Home Loan Bank stock



12,201



8,451



3,951



6,147



5,723

Premises and equipment, net



13,302



13,557



13,663



13,854



14,083

Operating lease right-of-use asset



9,672



10,078



10,483



10,348



10,786

Foreclosed real estate, net



4,374



4,656



3,844



3,844



282

SBA servicing asset, net



10,916



11,155



10,535



9,643



10,173

Mortgage servicing asset, net



8,593



9,529



11,722



12,991



14,599

Bank owned life insurance



59,061



36,263



36,033



35,806



35,578

Other assets



5,323



4,921



5,606



5,171



5,355

Total assets


$

2,750,228


$

2,517,840


$

2,154,360


$

1,897,489


$

1,739,873

















LIABILITIES
















Noninterest-bearing deposits


$

640,312


$

618,054


$

546,164


$

462,909


$

460,679

Interest-bearing deposits



1,471,515



1,356,777



1,199,756



1,016,980



877,112

Total deposits



2,111,827



1,974,831



1,745,920



1,479,889



1,337,791

Federal Home Loan Bank advances



300,000



200,000



80,000



110,000



100,000

Other borrowings



468



474



479



483



491

Operating lease liability



10,241



10,648



11,048



10,910



11,342

Accrued interest payable



208



202



206



222



310

Other liabilities



51,330



67,431



61,332



51,154



52,843

Total liabilities


$

2,474,074


$

2,253,586


$

1,898,985


$

1,652,658


$

1,502,777

















SHAREHOLDERS' EQUITY
















Preferred stock











Common stock



255



256



257



257



257

Additional paid-in capital



51,181



52,924



55,977



55,674



55,098

Retained earnings



224,711



210,910



199,102



188,705



181,576

Accumulated other comprehensive income (loss)



7



164



39



195



165

Total shareholders' equity



276,154



264,254



255,375



244,831



237,096

Total liabilities and shareholders' equity


$

2,750,228


$

2,517,840


$

2,154,360


$

1,897,489


$

1,739,873

METROCITY BANKSHARES, 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)


2021


2021


2021


2020


2020


2021


2020

Interest and dividend income:






















Loans, including Fees


$

29,127


$

25,728


$

22,500


$

19,658


$

17,880


$

77,355


$

56,214

Other investment income



196



159



170



164



187



525



1,265

Federal funds sold



1



1



2



17



64



4



291

Total interest income



29,324



25,888



22,672



19,839



18,131



77,884



57,770























Interest expense:






















Deposits



968



919



992



1,262



2,046



2,879



9,656

FHLB advances and other borrowings



167



144



146



149



146



457



422

Total interest expense



1,135



1,063



1,138



1,411



2,192



3,336



10,078























Net interest income



28,189



24,825



21,534



18,428



15,939



74,548



47,692























Provision for loan losses



2,579



2,205



1,599



956



1,450



6,383



2,511























Net interest income after provision for loan losses



25,610



22,620



19,935



17,472



14,489



68,165



45,181























Noninterest income:






















Service charges on deposit accounts



446



411



373



350



309



1,230



962

Other service charges, commissions and fees



4,147



3,877



3,398



3,223



2,076



11,422



5,322

Gain on sale of residential mortgage loans















2,529

Mortgage servicing income, net



132



(957)



166



(82)



235



(659)



1,390

Gain on sale of SBA loans



3,358



2,845



1,854



1,625



2,265



8,057



4,842

SBA servicing income, net



1,212



1,905



2,133



724



2,931



5,250



5,406

Other income



237



513



262



298



148



1,012



622

Total noninterest income



9,532



8,594



8,186



6,138



7,964



26,312



21,073























Noninterest expense:






















Salaries and employee benefits



8,679



6,915



6,699



6,822



6,416



22,293



18,678

Occupancy



1,295



1,252



1,275



1,293



1,302



3,822



3,790

Data Processing



257



283



308



313



287



848



765

Advertising



131



117



145



138



127



393



428

Other expenses



2,749



3,526



2,281



2,511



2,018



8,556



6,362

Total noninterest expense



13,111



12,093



10,708



11,077



10,150



35,912



30,023























Income before provision for income taxes



22,031



19,121



17,413



12,533



12,303



58,565



36,231

Provision for income taxes



5,149



4,728



4,432



3,079



2,918



14,309



9,291

Net income available to common shareholders


$

16,882


$

14,393


$

12,981


$

9,454


$

9,385


$

44,256


$

26,940

METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES




Three Months Ended




September 30, 2021


June 30, 2021


September 30, 2020




Average


Interest and


Yield /


Average


Interest and


Yield /


Average


Interest and


Yield /


(Dollars in thousands)


Balance


Fees


Rate


Balance


Fees


Rate


Balance


Fees


Rate


Earning Assets:


























Federal funds sold and other investments(1)


$

188,296


$

111


0.23

%

$

169,578


$

76


0.18

%

$

132,781


$

87


0.26

%

Securities purchased under agreements to resell













40,000



61


0.61


Securities available for sale



17,244



86


1.98



17,080



84


1.97



18,161



103


2.26


Total investments



205,540



197


0.38



186,658



160


0.34



190,942



251


0.52


Construction and development



53,871



727


5.35



47,173



615


5.23



33,587



414


4.90


Commercial real estate



507,039



7,648


5.98



510,241



7,344


5.77



476,174



6,547


5.47


Commercial and industrial



102,813



2,576


9.94



146,408



2,558


7.01



139,083



870


2.49


Residential real estate



1,577,276



18,144


4.56



1,275,555



15,180


4.77



757,982



10,002


5.25


Consumer and other



208



32


61.04



179



31


69.46



844



47


22.15


Gross loans(2)



2,241,207



29,127


5.16



1,979,556



25,728


5.21



1,407,670



17,880


5.05


Total earning assets



2,446,747



29,324


4.75



2,166,214



25,888


4.79



1,598,612



18,131


4.51


Noninterest-earning assets



123,888








112,161








96,234







Total assets



2,570,635








2,278,375








1,694,846







Interest-bearing liabilities:  


























NOW and savings deposits



115,775



59


0.20



107,072



53


0.20



73,299



42


0.23


Money market deposits



757,654



432


0.23



659,173



373


0.23



250,200



341


0.54


Time deposits



506,049



477


0.37



521,217



493


0.38



546,648



1,663


1.21


Total interest-bearing deposits



1,379,478



968


0.28



1,287,462



919


0.29



870,147



2,046


0.94


Borrowings



240,704



167


0.28



94,435



144


0.61



84,564



146


0.69


Total interest-bearing liabilities



1,620,182



1,135


0.28



1,381,897



1,063


0.31



954,711



2,192


0.91


Noninterest-bearing liabilities:


























Noninterest-bearing deposits



600,388








561,170








445,970







Other noninterest-bearing liabilities



84,568








78,822








64,045







Total noninterest-bearing liabilities



684,956








639,992








510,015







Shareholders' equity



265,497








256,486








230,120







Total liabilities and shareholders' equity


$

2,570,635







$

2,278,375







$

1,694,846







Net interest income





$

28,189







$

24,825







$

15,939




Net interest spread








4.47








4.48








3.60


Net interest margin








4.57








4.60








3.97






(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, 2021


September 30, 2020




Average


Interest and


Yield /


Average


Interest and


Yield /


(Dollars in thousands)


Balance


Fees


Rate


Balance


Fees


Rate


Earning Assets:


















Federal funds sold and other investments(1)


$

161,420


$

260


0.22

%

$

164,287


$

986


0.80

%

Securities purchased under agreements to resell








37,354



258


0.92


Securities available for sale



17,493



269


2.06



17,747



312


2.35


Total investments



178,913



529


0.40



219,388



1,556


0.95


Construction and development



47,380



1,874


5.29



30,822



1,232


5.34


Commercial real estate



496,957



22,069


5.94



475,036



20,537


5.77


Commercial and industrial



133,703



7,054


7.05



103,680



3,925


5.06


Residential real estate



1,315,043



46,254


4.70



730,283



30,373


5.56


Consumer and other



187



104


74.36



1,233



147


15.93


Gross loans(2)



1,993,270



77,355


5.19



1,341,054



56,214


5.60


Total earning assets



2,172,183



77,884


4.79



1,560,442



57,770


4.95


Noninterest-earning assets



115,784








94,284







Total assets



2,287,967








1,654,726







Interest-bearing liabilities:


















NOW and savings deposits



105,139



158


0.20



65,223



125


0.26


Money market deposits



651,158



1,143


0.23



215,875



1,403


0.87


Time deposits



506,445



1,578


0.42



634,657



8,128


1.71


Total interest-bearing deposits



1,262,742



2,879


0.30



915,755



9,656


1.41


Borrowings



141,435



457


0.43



81,191



422


0.69


Total interest-bearing liabilities



1,404,177



3,336


0.32



996,946



10,078


1.35


Noninterest-bearing liabilities:


















Noninterest-bearing deposits



548,844








374,310







Other noninterest-bearing liabilities



78,685








59,954







Total noninterest-bearing liabilities



627,529








434,264







Shareholders' equity



256,261








223,516







Total liabilities and shareholders' equity


$

2,287,967







$

1,654,726







Net interest income





$

74,548







$

47,692




Net interest spread








4.47








3.60


Net interest margin








4.59








4.08






(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, 2021


June 30, 2021


March 31, 2021


December 31, 2020


September 30, 2020







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and Development


$

64,140


2.7

%

$

58,668


2.8

%

$

52,202


2.8

%

$

45,653


2.8

%

$

38,607


2.6

%

Commercial Real Estate



503,417


21.2



475,658


22.7



473,281


25.3



477,419


29.2



447,596


30.6


Commercial and Industrial



82,099


3.5



134,076


6.4



166,915


8.9



137,239


8.4



146,880


10.0


Residential Real Estate



1,718,593


72.6



1,430,843


68.1



1,181,385


63.0



974,445


59.6



831,334


56.7


Consumer and other



238




169




169




183




505


0.1


Gross loans


$

2,368,487


100.0

%

$

2,099,414


100.0

%

$

1,873,952


100.0

%

$

1,634,939


100.0

%

$

1,464,922


100.0

%

Unearned income



(6,782)





(7,647)





(7,167)





(4,595)





(5,023)




Allowance for loan losses



(16,445)





(13,860)





(11,735)





(10,135)





(9,339)




Net loans


$

2,345,260




$

2,077,907




$

1,855,050




$

1,620,209




$

1,450,560




METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS




As of the Quarter Ended




September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


(Dollars in thousands)


2021


2021


2021


2020


2020


Nonaccrual loans


$

5,955


$

6,623


$

9,071


$

10,203


$

9,730


Past due loans 90 days or more and still accruing












Accruing troubled debt restructured loans



2,726



2,753



2,863



2,891



7,487


Total non-performing loans



8,681



9,376



11,934



13,094



17,217


Other real estate owned



4,374



4,656



3,844



3,844



282


Total non-performing assets


$

13,055


$

14,032


$

15,778


$

16,938


$

17,499



















Nonperforming loans to gross loans



0.37

%


0.45

%


0.64

%


0.80

%


1.18

%

Nonperforming assets to total assets



0.47



0.56



0.73



0.89



1.01


Allowance for loan losses to non-performing loans



189.44



147.82



98.33



77.40



54.24


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)


2021


2021


2021


2020


2020


2021


2020


Balance, beginning of period


$

13,860


$

11,735


$

10,135


$

9,339


$

7,894


$

10,135


$

6,839


Net charge-offs/(recoveries):























Construction and development
















Commercial real estate



(4)



23



(3)



107



(3)



16



(8)


Commercial and industrial





60



4



51





64



(25)


Residential real estate
















Consumer and other



(2)



(3)



(2)



2



8



(7)



44


Total net charge-offs/(recoveries)



(6)



80



(1)



160



5



73



11


Provision for loan losses



2,579



2,205



1,599



956



1,450



6,383



2,511


Balance, end of period


$

16,445


$

13,860


$

11,735


$

10,135


$

9,339


$

16,445


$

9,339


Total loans at end of period


$

2,368,487


$

2,099,414


$

1,873,952


$

1,634,939


$

1,464,922


$

2,368,487


$

1,464,922


Average loans(1)


$

2,241,207


$

1,979,556


$

1,753,691


$

1,522,150


$

1,407,670


$

1,993,270


$

1,319,606


Net charge-offs to average loans



0.00

%


0.02

%


0.00

%


0.04

%


0.00

%


0.00

%


0.00

%

Allowance for loan losses to total loans



0.69



0.66



0.63



0.62



0.64



0.69



0.64
























(1)   Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

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