Cision PR Newswire

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2022

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.