Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 21, 2025

METROCITY BANKSHARES, INC.

(Exact name of registrant as specified in its charter)


Georgia	No. 001-39068	47-2528408
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


5114 Buford Highway Doraville, Georgia		30340
(Address of principal executive offices)		(Zip Code)

(770) 455-4989

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each Exchange on which registered
Common Stock, par value $0.01 per share	MCBS	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 Results of Operations and Financial Condition

On January 21, 2025, MetroCity Bankshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the fourth quarter ended December 31, 2024. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description

99.1	MetroCity Bankshares, Inc. Earnings Press Release dated January 21, 2025

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	METROCITY BANKSHARES, INC.

Date: January 21, 2025	By:	/s/ Lucas Stewart
		Lucas Stewart
		Chief Financial Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2024

ATLANTA, GA (January 21, 2025) – MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $16.2 million, or $0.63 per diluted share, for the fourth quarter of 2024, compared to $16.7 million, or $0.65 per diluted share, for the third quarter of 2024, and $11.3 million, or $0.44 per diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported net income of $64.5 million, or $2.52 per diluted share, compared to $51.6 million, or $2.02 per diluted share, for the same period in 2023.

Fourth Quarter 2024 Highlights:

●	Annualized return on average assets was 1.82%, compared to 1.86% for the third quarter of 2024 and 1.29% for the fourth quarter of 2023.

●

Annualized return on average equity was 15.84%, compared to 16.26% for the third quarter of 2024 and 11.71% for the fourth quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was 16.28% for the fourth quarter of 2024, compared to 17.25% for the third quarter of 2024 and 12.69% for the fourth quarter of 2023.

●	Efficiency ratio of 40.5%, compared to 37.0% for the third quarter of 2024 and 45.1% for the fourth quarter of 2023.

●	Net interest margin was 3.57%, compared to 3.58% for the third quarter of 2024 and 3.17% for the fourth quarter of 2023

●	Loans held for investment increased by $70.1 million, or 2.3%, to $3.16 billion from the previous quarter.

Full Year 2024 Highlights:

●	Return on average assets was 1.81%, compared to 1.50% for 2023.

●	Return on average equity was 16.16%, compared to 14.10% for 2023. Excluding average accumulated other comprehensive income, our return on average equity was 16.71% for 2024, compared to 15.00% for 2023.

●	Efficiency ratio of 37.8% for 2024, compared to 39.9% for 2023.

●	Net interest margin increased by 38 basis points to 3.51% from 3.13% for 2023.

●	Total assets increased by $91.2 million, or 2.6%, to $3.59 billion from $3.50 billion at December 31, 2023.

Results of Operations

Net Income

Net income was $16.2 million for the fourth quarter of 2024, a decrease of $466,000, or 2.8%, from $16.7 million for the third quarter of 2024. This decrease was primarily due to decrease in noninterest income of $1.3 million, an increase in noninterest expense of $666,000 and a decrease in net interest income of $229,000, offset by a decrease in income tax expense of $1.3 million and a decrease in provision for credit losses of $380,000. Net income increased by $4.9 million, or 43.1%, in the fourth quarter of 2024 compared to net income of $11.3 million for the fourth quarter of 2023. This increase was due to an increase in net interest income of $3.9 million, an increase in noninterest income of $609,000, a decrease in provision for credit losses of $580,000 and a decrease in income tax expense of $172,000, offset by an increase in noninterest expense of $411,000.

Net income was $64.5 million for the year ended December 31, 2024, an increase of $12.9 million, or 25.0%, from $51.6 million for the year ended December 31, 2023. This increase was due to an increase in net interest income of $16.7 million and an increase in noninterest income of $4.9 million, offset by an increase in noninterest expense of $5.7 million, an increase in income tax expense of $2.5 million and an increase in provision for credit losses of $531,000.

Net Interest Income and Net Interest Margin

Interest income totaled $52.6 million for the fourth quarter of 2024, a decrease of $1.2 million, or 2.3%, from the previous quarter, primarily due to a $40.3 million decrease in the average total investments balance, a 22 basis points decrease in the total investments yield and a 12 basis points decrease in the loan yield, offset by a $22.0 million increase in average loan balances. As compared to the fourth quarter of 2023, interest income for the fourth quarter of 2024 increased by $1.9 million, or 3.8%, primarily due to a 20 basis points increase in the loan yield coupled with a $61.9 million increase in average loan balances.

Interest expense totaled $22.6 million for the fourth quarter of 2024, a decrease of $990,000, or 4.2%, from the previous quarter, primarily due to a 16 basis points decrease in deposit costs coupled with a $10.2 million decrease in the average deposit balances. As compared to the fourth quarter of 2023, interest expense for the fourth quarter of 2024 decreased by $2.0 million or 8.1%, primarily due to a 50 basis points decrease in deposit costs coupled with a $27.0 million decrease in average deposit balances, offset by a 58 basis points increase in borrowing costs and a $60.3 million increase in the average borrowing balance. The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 4.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the fourth quarter of 2024, we recorded a credit to interest expense of $5.1 million from the benefit received on these interest rate derivatives compared to a benefit of $6.4 million and $3.1 million recorded during the third quarter of 2024 and the fourth quarter of 2023, respectively.

The net interest margin for the fourth quarter of 2024 was 3.57% compared to 3.58% for the previous quarter, a decrease of one basis point. The yield on average interest-earning assets for the fourth quarter of 2024 decreased by 11 basis points to 6.25% from 6.36% for the previous quarter, while the cost of average interest-bearing liabilities for the fourth quarter of 2024 decreased by 14 basis points to 3.55% from 3.69% for the previous quarter. Average earning assets decreased by $18.3 million from the previous quarter, due to a decrease in average total investments of $40.3 million, offset by an increase of $22.0 million in average loan balances. Average interest-bearing liabilities decreased by $10.9 million from the previous quarter as average interest-bearing deposits decreased by $10.2 million and average borrowings decreased slightly by $677,000.

As compared to the same period in 2023, the net interest margin for the fourth quarter of 2024 increased by 40 basis points to 3.57% from 3.17%, primarily due to an 11 basis points increase in the yield on average interest-earning assets of $3.35 billion and a 36 basis points decrease in the cost of average interest-bearing liabilities of $2.52 billion. Average earning assets for the fourth quarter of 2024 increased by $76.1 million from the fourth quarter of 2023, due to a $61.9 million increase in average loans and a $14.3 million increase in average total investments. Average interest-bearing liabilities for the fourth quarter of 2024 increased by $33.3 million from the fourth quarter of 2023, driven by the increase in average borrowings of $60.3 million, offset by a $27.0 decrease in average interest-bearing deposits.

Noninterest Income

Noninterest income for the fourth quarter of 2024 was $5.3 million, a decrease of $1.3 million, or 19.6%, from the third quarter of 2024, primarily due to lower gains on sale from Small Business Administration (“SBA”) and residential mortgage loans, servicing income from SBA loans, mortgage loan fees from lower volume and other income from unrealized losses recognized on our equity securities, offset by higher servicing income from mortgage loans. SBA loan sales totaled $19.2 million (sales premium of 6.25%) during the fourth quarter of 2024 compared to $28.9 million (sales premium of 6.67%) during the third quarter of 2024. Mortgage loan originations totaled $103.3 million during the fourth quarter 2024 compared to $122.4 million during the third quarter of 2024. No mortgage loans were sold during the fourth quarter of 2024 compared to $54.2 million of mortgage loan sales (average sales premium of 1.03%) during the third quarter of 2024. During the fourth quarter of 2024, we recorded a $31,000 fair value adjustment charge on our SBA servicing asset compared to a fair value gain of $202,000 during the third quarter of 2024. We also recorded a $232,000 fair value impairment recovery on our mortgage servicing asset during the fourth quarter of 2024 compared to a $252,000 fair value impairment charge recorded during the third quarter of 2024.

Compared to the same period in 2023, noninterest income for the fourth quarter of 2024 increased by $609,000, or 12.9%, primarily due to higher gains on sale of SBA loans and servicing income from our mortgage loans, offset by decreases in mortgage loan fees from lower volume and servicing income from SBA loans, as well as lower other income from unrealized losses recognized on our equity securities. During the fourth quarter of 2023, we recorded a $147,000 fair value gain on our SBA servicing asset.

Noninterest income for the year ended December 31, 2024 totaled $23.1 million, an increase of $4.9 million, or 26.7%, from the year ended December 31, 2023, primarily due to higher mortgage loan fees from higher volume, as well as higher gains on sale and servicing income from mortgage loans, offset by decreases in gains on sale and servicing income of SBA loans.

Noninterest Expense

Noninterest expense for the fourth quarter of 2024 totaled $14.3 million, an increase of $666,000, or 4.9%, from $13.7 million for the third quarter of 2024. This increase was primarily attributable to the increase in salary and employee benefits which included higher commissions from higher loan volume and higher employee salaries, 401k match and FICA taxes, partially offset by lower other real estate owned expenses. Compared to the fourth quarter of 2023, noninterest expense during the fourth quarter of 2024 increased by $411,000, or 3.0%, primarily due to higher salary and employee benefits, occupancy expense, data processing expense, security expense and loan related expenses, offset by lower FDIC insurance premiums and professional fees.

Noninterest expense for the year ended December 31, 2024 totaled $53.4 million, an increase of $5.7 million, or 11.8%, from $47.7 million for the year ended December 31, 2023. This increase was primarily

attributable to increases in salaries and employee benefits due to the increase in the number of full time equivalent employees during 2024, higher commissions from higher loan volume and higher employee insurance and stock based compensation. We also recognized higher expenses related to depreciation, rent, data processing, security, audit and accounting services, other real estate owned and FDIC insurance premiums. These expense increases were partially offset by lower loan related expenses and legal fees.

The Company’s efficiency ratio was 40.5% for the fourth quarter of 2024 compared to 37.0% and 45.1% for the third quarter of 2024 and fourth quarter of 2023, respectively. For the year ended December 31, 2024, the efficiency ratio was 37.8 % compared to 39.9% for the year ended December 31, 2023.

Income Tax Expense

The Company’s effective tax rate for the fourth quarter of 2024 was 22.1%, compared to 26.3% for the third quarter of 2024 and 29.7% for the fourth quarter of 2023. The Company’s effective tax rate for the year ended December 31, 2024 was 26.1% compared to 28.3% for the year ended December 31, 2023. The decrease in the effective tax rate during the fourth quarter of 2024 was due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the third and fourth quarter of 2024.

Balance Sheet

Total Assets

Total assets were $3.59 billion at December 31, 2024, an increase of $24.8 million, or 0.7%, from $3.57 billion at September 30, 2024, and an increase of $91.2 million, or 2.6%, from $3.50 billion at December 31, 2023. The $24.8 million increase in total assets at December 31, 2024 compared to September 30, 2024 was primarily due to increases in loans held for investment of $70.1 million and interest rate derivatives of $2.9 million, partially offset by decreases in cash and due from banks of $42.4 million and loans held for sale of $4.6 million. The $91.2 million increase in total assets at December 31, 2024 compared to December 31, 2023 was primarily due to increases in cash and due from banks of $94.2 million, loans held for investment of $15.8 million, federal funds sold of $10.9 million, Federal Home Loan Bank stock of $2.4 million and bank owned life insurance of $2.3 million, partially offset by decreases in loans held for sale of $22.3 million and interest rate derivatives of $10.0 million.

Our investment securities portfolio made up only 0.77% of our total assets at December 31, 2024 compared to 0.81% and 0.82% at September 30, 2024 and December 31, 2023, respectively.

Loans

Loans held for investment were $3.16 billion at December 31, 2024, an increase of $70.1 million, or 2.3%, compared to $3.09 billion at September 30, 2024, and an increase of $15.8 million, or 0.5%, compared to $3.14 billion at December 31, 2023. The increase in loans at December 31, 2024 compared to September 30, 2024 was due to a $27.0 million increase in residential mortgage loans, a $23.1 million increase in commercial real estate loans, a $14.6 million increase in commercial and industrial loans and a $5.0 million increase in construction and development loans. Loans classified as held for sale totaled $4.6 million and $22.3 million at September 30, 2024 and December 31, 2023, respectively. There were no loans classified as held for sale at December 31, 2024.

Deposits

Total deposits were $2.74 billion at December 31, 2024, an increase of $13.7 million, or 0.5%, compared to total deposits of $2.72 billion at September 30, 2024, and an increase of $5.9 million, or 0.2%, compared to total deposits of $2.73 billion at December 31, 2023. The increase in total deposits at December 31, 2024 compared to September 30, 2024 was due to a $58.4 million increase in interest-bearing demand deposits and a $6.6 million increase in money market accounts (includes $38.6 million decrease in brokered money market accounts), offset by a $35.0 million decrease in time deposits and a $16.2 million decrease in noninterest-bearing demand deposits.

Noninterest-bearing deposits were $536.3 million at December 31, 2024, compared to $552.5 million at September 30, 2024 and $512.0 million at December 31, 2023. Noninterest-bearing deposits constituted 19.6% of total deposits at December 31, 2024, compared to 20.3% at September 30, 2024 and 18.7% at December 31, 2023. Interest-bearing deposits were $2.20 billion at December 31, 2024, compared to $2.17 billion at September 30, 2024 and $2.22 billion at December 31, 2023. Interest-bearing deposits constituted 80.4 % of total deposits at December 31, 2024, compared to 79.7% at September 30, 2024 and 81.3% at December 31, 2023.

Uninsured deposits were 24.1% of total deposits at December 31, 2024, compared to 23.6% and 26.5% at September 30, 2024 and December 31, 2023, respectively. As of December 31, 2024, we had $1.29 billion of available borrowing capacity at the Federal Home Loan Bank ($692.6 million), Federal Reserve Discount Window ($551.6 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a provision for credit losses of $202,000 during the fourth quarter of 2024, compared to provision for credit losses of $582,000 and $782,000 recorded during the third quarter of 2024 and fourth quarter of 2023, respectively. The provision expense recorded during the fourth quarter of 2024 was primarily due to the increase in reserves allocated to our individually analyzed loans, as well as the increase in general reserves allocated to our commercial and industrial loan portfolio. Annualized net charge-offs to average loans for the fourth quarter of 2024 was 0.01%, compared to net charge-offs of 0.00% for the third quarter of 2024 and 0.04% for the fourth quarter of 2023. Net charge-offs to average loans for the year ended December 31, 2024 was 0.00% compared to 0.02% for the year ended December 31, 2023.

Nonperforming assets totaled $18.4 million, or 0.51% of total assets, at December 31, 2024, an increase of $2.6 million from $15.8 million, or 0.44% of total assets, at September 30, 2024, and an increase of $2.3 million from $16.1 million, or 0.46% of total assets, at December 31, 2023. The increase in nonperforming assets at December 31, 2024 compared to September 30, 2024 was due to a $3.7 million increase in nonaccrual loans offset by a $1.1 million decrease in other real estate owned.

Allowance for credit losses as a percentage of total loans was 0.59% at December 31, 2024, compared to 0.60% at September 30, 2024 and 0.57% at December 31, 2023. Allowance for credit losses as a percentage of nonperforming loans was 104.08% at December 31, 2024, compared to 129.85% and 123.36% at September 30, 2024 and December 31, 2023, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, changes in interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate, which could have an adverse effect on the Company’s profitability; 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; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and the surrounding region; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the “SEC”), and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not

currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts


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

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA


	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)	2024			2024			2024			2024			2023			2024			2023
Selected income statement data:
Interest income	$	52,614		$	53,833		$	54,108		$	52,358		$	50,671		$	212,913		$	192,827
Interest expense		22,554			23,544			23,396			25,273			24,549			94,767			91,348
Net interest income		30,060			30,289			30,712			27,085			26,122			118,146			101,479
Provision for credit losses		202			582			(128)			(140)			782			516			(15)
Noninterest income		5,321			6,615			5,559			5,568			4,712			23,063			18,204
Noninterest expense		14,326			13,660			13,032			12,361			13,915			53,379			47,726
Income tax expense		4,618			5,961			6,430			5,801			4,790			22,810			20,359
Net income		16,235			16,701			16,937			14,631			11,347			64,504			51,613
Per share data:
Basic income per share	$	0.64		$	0.66		$	0.67		$	0.58		$	0.45		$	2.55		$	2.05
Diluted income per share	$	0.63		$	0.65		$	0.66		$	0.57		$	0.44		$	2.52		$	2.02
Dividends per share	$	0.23		$	0.20		$	0.20		$	0.20		$	0.18		$	0.83		$	0.72
Book value per share (at period end)	$	16.59		$	16.07		$	16.08		$	15.73		$	15.14		$	16.59		$	15.14
Shares of common stock outstanding		25,402,782			25,331,916			25,331,916			25,205,506			25,205,506			25,402,782			25,205,506
Weighted average diluted shares		25,659,483			25,674,858			25,568,333			25,548,089			25,543,861			25,582,121			25,518,516
Performance ratios:
Return on average assets		1.82	%		1.86	%		1.89	%		1.65	%		1.29	%		1.81	%		1.50	%
Return on average equity		15.84			16.26			17.10			15.41			11.71			16.16			14.10
Dividend payout ratio		36.18			30.58			30.03			34.77			40.36			32.80			35.43
Yield on total loans		6.31			6.43			6.46			6.34			6.11			6.38			5.97
Yield on average earning assets		6.25			6.36			6.45			6.27			6.14			6.33			5.94
Cost of average interest bearing liabilities		3.55			3.69			3.68			3.94			3.91			3.72			3.73
Cost of deposits		3.45			3.61			3.63			3.97			3.95			3.67			3.85
Net interest margin		3.57			3.58			3.66			3.24			3.17			3.51			3.13
Efficiency ratio⁽¹⁾		40.49			37.01			35.93			37.86			45.13			37.80			39.88
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.01	%		0.00	%		(0.01)	%		(0.00)	%		0.04	%		0.00	%		0.02	%
Nonperforming assets to gross loans held for investment and OREO		0.58			0.51			0.47			0.47			0.51			0.58			0.51
ACL to nonperforming loans		104.08			129.85			138.11			135.23			123.36			104.08			123.36
ACL to loans held for investment		0.59			0.60			0.58			0.58			0.57			0.59			0.57
Balance sheet and capital ratios:
Gross loans held for investment to deposits		115.66	%		113.67	%		112.85	%		111.03	%		115.38	%		115.66	%		115.38	%
Noninterest bearing deposits to deposits		19.60			20.29			20.54			19.43			18.75			19.60			18.75
Investment securities to assets		0.77			0.81			0.78			0.78			0.82			0.77			0.82
Common equity to assets		11.72			11.41			11.26			10.87			10.89			11.72			10.89
Leverage ratio		11.42			11.12			10.75			10.27			10.20			11.42			10.20
Common equity tier 1 ratio		19.17			19.08			18.25			16.96			16.73			19.17			16.73
Tier 1 risk-based capital ratio		19.17			19.08			18.25			16.96			16.73			19.17			16.73
Total risk-based capital ratio		20.05			19.98			19.12			17.81			17.60			20.05			17.60
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	527,039		$	556,442		$	529,823		$	443,905		$	443,072		$	527,039		$	443,072
Mortgage loan production		103,250			122,355			94,056			94,016			128,931			413,677			336,987
Mortgage loan sales		—			54,193			111,424			21,873			—			187,490			—
SBA/USDA loans serviced for others		479,669			487,359			486,051			516,425			508,000			479,669			508,000
SBA loan production		35,730			35,839			8,297			10,949			27,529			90,815			88,090
SBA loan sales		19,236			28,858			—			24,065			—			72,159			71,925

(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
	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in thousands, except per share data)	2024		2024		2024		2024		2023
ASSETS
Cash and due from banks	$	236,338	$	278,752	$	325,026	$	254,331	$	142,152
Federal funds sold		13,537		12,462		2,833		4,505		2,653
Cash and cash equivalents		249,875		291,214		327,859		258,836		144,805
Equity securities		10,300		10,568		10,276		10,288		10,335
Securities available for sale (at fair value)		17,391		18,206		17,825		18,057		18,493
Loans held for investment		3,157,935		3,087,826		3,090,498		3,115,871		3,142,105
Allowance for credit losses		(18,744)		(18,589)		(17,960)		(17,982)		(18,112)
Loans less allowance for credit losses		3,139,191		3,069,237		3,072,538		3,097,889		3,123,993
Loans held for sale		—		4,598		—		72,610		22,267
Accrued interest receivable		15,858		15,667		15,286		15,686		15,125
Federal Home Loan Bank stock		20,251		20,251		20,251		19,063		17,846
Premises and equipment, net		18,276		18,158		18,160		18,081		18,132
Operating lease right-of-use asset		7,850		7,171		7,599		8,030		8,472
Foreclosed real estate, net		427		1,515		1,452		1,452		1,466
SBA servicing asset, net		7,274		7,309		7,108		7,611		7,251
Mortgage servicing asset, net		1,409		1,296		1,454		937		1,273
Bank owned life insurance		73,285		72,670		72,061		71,492		70,957
Interest rate derivatives		21,790		18,895		36,196		38,682		31,781
Other assets		10,868		12,451		7,305		8,505		10,627
Total assets	$	3,594,045	$	3,569,206	$	3,615,370	$	3,647,219	$	3,502,823

LIABILITIES
Noninterest-bearing deposits	$	536,276	$	552,472	$	564,076	$	546,760	$	512,045
Interest-bearing deposits		2,200,522		2,170,648		2,181,784		2,267,098		2,218,891
Total deposits		2,736,798		2,723,120		2,745,860		2,813,858		2,730,936
Federal Home Loan Bank advances		375,000		375,000		375,000		350,000		325,000
Operating lease liability		7,940		7,295		7,743		8,189		8,651
Accrued interest payable		3,498		3,593		3,482		3,059		4,133
Other liabilities		49,456		53,013		76,057		75,509		52,586
Total liabilities	$	3,172,692	$	3,162,021	$	3,208,142	$	3,250,615	$	3,121,306

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		254		253		253		252		252
Additional paid-in capital		49,216		47,481		46,644		46,105		45,699
Retained earnings		358,704		348,343		336,749		324,900		315,356
Accumulated other comprehensive income		13,179		11,108		23,582		25,347		20,210
Total shareholders' equity		421,353		407,185		407,228		396,604		381,517
Total liabilities and shareholders' equity	$	3,594,045	$	3,569,206	$	3,615,370	$	3,647,219	$	3,502,823

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(Dollars in thousands, except per share data)	2024		2024		2024		2024		2023		2024		2023
Interest and dividend income:
Loans, including fees	$	49,790	$	50,336	$	50,527	$	50,117	$	47,367	$	200,770	$	181,883
Other investment income		2,663		3,417		3,547		2,211		3,267		11,838		10,767
Federal funds sold		161		80		34		30		37		305		177
Total interest income		52,614		53,833		54,108		52,358		50,671		212,913		192,827

Interest expense:
Deposits		18,618		19,602		19,735		22,105		21,691		80,060		80,607
FHLB advances and other borrowings		3,936		3,942		3,661		3,168		2,858		14,707		10,741
Total interest expense		22,554		23,544		23,396		25,273		24,549		94,767		91,348

Net interest income		30,060		30,289		30,712		27,085		26,122		118,146		101,479

Provision for credit losses		202		582		(128)		(140)		782		516		(15)

Net interest income after provision for loan losses		29,858		29,707		30,840		27,225		25,340		117,630		101,494

Noninterest income:
Service charges on deposit accounts		563		531		532		447		515		2,073		1,918
Other service charges, commissions and fees		1,748		1,915		1,573		1,612		2,039		6,848		5,657
Gain on sale of residential mortgage loans		—		526		1,177		222		—		1,914		—
Mortgage servicing income, net		690		422		1,107		229		39		2,448		(193)
Gain on sale of SBA loans		811		1,083		—		1,051		—		2,945		3,299
SBA servicing income, net		956		1,231		560		1,496		1,324		4,243		4,796
Other income		553		907		610		511		795		2,592		2,727
Total noninterest income		5,321		6,615		5,559		5,568		4,712		23,063		18,204

Noninterest expense:
Salaries and employee benefits		9,277		8,512		8,048		7,370		8,971		33,207		29,304
Occupancy		1,406		1,430		1,334		1,354		1,368		5,524		4,893
Data Processing		335		311		353		294		301		1,293		1,229
Advertising		160		145		157		172		160		634		614
Other expenses		3,148		3,262		3,140		3,171		3,115		12,721		11,686
Total noninterest expense		14,326		13,660		13,032		12,361		13,915		53,379		47,726

Income before provision for income taxes		20,853		22,662		23,367		20,432		16,137		87,314		71,972
Provision for income taxes		4,618		5,961		6,430		5,801		4,790		22,810		20,359
Net income available to common shareholders	$	16,235	$	16,701	$	16,937	$	14,631	$	11,347	$	64,504	$	51,613

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES


	Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
	Average		Interest and		Yield /		Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	180,628	$	2,560	5.64	%	$	220,826	$	3,308	5.96	%	$	165,877	$	2,938	7.03	%
Investment securities		31,208		264	3.37			31,309		189	2.40			31,685		366	4.58
Total investments		211,836		2,824	5.30			252,135		3,497	5.52			197,562		3,304	6.64
Construction and development		17,974		384	8.50			14,170		302	8.48			18,002		344	7.58
Commercial real estate		757,937		16,481	8.65			740,720		17,132	9.20			664,570		14,934	8.92
Commercial and industrial		73,468		1,703	9.22			64,584		1,593	9.81			59,465		1,473	9.83
Residential real estate		2,287,731		31,172	5.42			2,295,573		31,267	5.42			2,333,247		30,577	5.20
Consumer and other		282		50	70.54			394		42	42.41			258		39	59.97
Gross loans⁽²⁾		3,137,392		49,790	6.31			3,115,441		50,336	6.43			3,075,542		47,367	6.11
Total earning assets		3,349,228		52,614	6.25			3,367,576		53,833	6.36			3,273,104		50,671	6.14
Noninterest-earning assets		192,088						207,093						223,630
Total assets		3,541,316						3,574,669						3,496,734
Interest-bearing liabilities:
NOW and savings deposits		133,728		685	2.04			119,759		770	2.56			133,765		396	1.17
Money market deposits		991,207		6,347	2.55			982,517		6,156	2.49			1,051,797		10,609	4.00
Time deposits		1,025,049		11,586	4.50			1,057,956		12,676	4.77			991,416		10,686	4.28
Total interest-bearing deposits		2,149,984		18,618	3.45			2,160,232		19,602	3.61			2,176,978		21,691	3.95
Borrowings		375,000		3,936	4.18			375,677		3,942	4.17			314,682		2,858	3.60
Total interest-bearing liabilities		2,524,984		22,554	3.55			2,535,909		23,544	3.69			2,491,660		24,549	3.91
Noninterest-bearing liabilities:
Noninterest-bearing deposits		533,931						542,939						530,935
Other noninterest-bearing liabilities		74,696						87,156						89,615
Total noninterest-bearing liabilities		608,627						630,095						620,550
Shareholders' equity		407,705						408,665						384,524
Total liabilities and shareholders' equity	$	3,541,316					$	3,574,669					$	3,496,734
Net interest income			$	30,060					$	30,289					$	26,122
Net interest spread					2.70						2.67						2.23
Net interest margin					3.57						3.58						3.17

(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts and other miscellaneous interest-earning assets.

(2)	Average loan balances include nonaccrual loans and loans held for sale.

METROCITY BANKSHARES, INC.

YTD AVERAGE BALANCES AND YIELDS/RATES


	Year Ended
	December 31, 2024						December 31, 2023
	Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	185,696	$	11,289	6.08	%	$	167,024	$	9,995	5.98	%
Investment securities		31,373		854	2.72			32,330		949	2.94
Total investments		217,069		12,143	5.59			199,354		10,944	5.49
Construction and development		17,148		1,511	8.81			31,955		1,864	5.83
Commercial real estate		738,200		66,751	9.04			659,432		57,710	8.75
Commercial and industrial		67,964		6,597	9.71			54,100		5,110	9.45
Residential real estate		2,321,075		125,737	5.42			2,299,246		117,071	5.09
Consumer and other		304		174	57.24			195		128	65.64
Gross loans⁽²⁾		3,144,691		200,770	6.38			3,044,928		181,883	5.97
Total earning assets		3,361,760		212,913	6.33			3,244,282		192,827	5.94
Noninterest-earning assets		209,058						198,938
Total assets		3,570,818						3,443,220
Interest-bearing liabilities:
NOW and savings deposits		138,827		3,537	2.55			146,543		2,264	1.54
Money market deposits		1,012,309		28,331	2.80			1,006,360		42,347	4.21
Time deposits		1,031,942		48,192	4.67			940,911		35,996	3.83
Total interest-bearing deposits		2,183,078		80,060	3.67			2,093,814		80,607	3.85
Borrowings		365,990		14,707	4.02			353,149		10,741	3.04
Total interest-bearing liabilities		2,549,068		94,767	3.72			2,446,963		91,348	3.73
Noninterest-bearing liabilities:
Noninterest-bearing deposits		536,084						555,840
Other noninterest-bearing liabilities		86,496						74,254
Total noninterest-bearing liabilities		622,580						630,094
Shareholders' equity		399,170						366,163
Total liabilities and shareholders' equity	$	3,570,818					$	3,443,220
Net interest income			$	118,146					$	101,479
Net interest spread					2.61						2.21
Net interest margin					3.51						3.13

METROCITY BANKSHARES, INC.

LOAN DATA


	As of the Quarter Ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and development	$	21,569	0.7	%	$	16,539	0.5	%	$	13,564	0.4	%	$	27,762	0.9	%	$	23,262	0.7	%
Commercial real estate		762,033	24.1			738,929	23.9			733,845	23.7			724,263	23.2			711,177	22.6
Commercial and industrial		78,220	2.5			63,606	2.1			68,300	2.2			68,560	2.2			65,904	2.1
Residential real estate		2,303,234	72.7			2,276,210	73.5			2,282,630	73.7			2,303,400	73.7			2,350,299	74.6
Consumer and other		260	—			215	—			230	—			247	—			319	—
Gross loans held for investment	$	3,165,316	100.0	%	$	3,095,499	100.0	%	$	3,098,569	100.0	%	$	3,124,232	100.0	%	$	3,150,961	100.0	%
Unearned income		(7,381)				(7,673)				(8,071)				(8,361)				(8,856)
Allowance for credit losses		(18,744)				(18,589)				(17,960)				(17,982)				(18,112)
Net loans held for investment	$	3,139,191			$	3,069,237			$	3,072,538			$	3,097,889			$	3,123,993

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS


	As of the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			2023
Nonaccrual loans	$	18,010		$	14,316		$	13,004		$	13,297		$	14,682
Past due loans 90 days or more and still accruing		—			—			—			—			—
Total non-performing loans		18,010			14,316			13,004			13,297			14,682
Other real estate owned		427			1,515			1,452			1,452			1,466
Total non-performing assets	$	18,437		$	15,831		$	14,456		$	14,749		$	16,148

Nonperforming loans to gross loans held for investment		0.57	%		0.46	%		0.42	%		0.43	%		0.47	%
Nonperforming assets to total assets		0.51			0.44			0.40			0.40			0.46
Allowance for credit losses to non-performing loans		104.08			129.85			138.11			135.23			123.36

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES


	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			2023			2024			2023
Balance, beginning of period	$	18,589		$	17,960		$	17,982		$	18,112		$	17,660		$	18,112		$	13,888
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		—			—			(82)			(1)			224			(83)			450
Commercial and industrial		99			24			(1)			(3)			85			119			289
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			—			—			—			—			—
Total net charge-offs/(recoveries)		99			24			(83)			(4)			309			36			739
Adoption of ASU 2016-13 (CECL)		—			—			—			—			—			—			5,055
Provision for loan losses		254			653			(105)			(134)			761			668			(92)
Balance, end of period	$	18,744		$	18,589		$	17,960		$	17,982		$	18,112		$	18,744		$	18,112
Total loans at end of period⁽¹⁾	$	3,165,316		$	3,095,499		$	3,098,569		$	3,124,232		$	3,150,961		$	3,165,316		$	3,150,961
Average loans⁽¹⁾	$	3,135,093		$	3,115,441		$	3,108,303		$	3,134,286		$	3,064,409		$	3,125,389		$	3,039,361
Net charge-offs/(recoveries) to average loans		0.01	%		0.00	%		(0.01)	%		(0.00)	%		0.04	%		0.00	%		0.02	%
Allowance for loan losses to total loans		0.59			0.60			0.58			0.58			0.57			0.59			0.57

(1)	Excludes loans held for sale.

Document and Entity Information	Jan. 21, 2025
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jan. 21, 2025
Entity Registrant Name	METROCITY BANKSHARES, INC.
Entity File Number	001-39068
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	47-2528408
Entity Address, Address Line One	5114 Buford Highway
Entity Address, City or Town	Doraville
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30340
City Area Code	770
Local Phone Number	455-4989
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MCBS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Central Index Key	0001747068
Amendment Flag	false

MetroCity Bankshares (NASDAQ:MCBS)
Historical Stock Chart
From Jan 2025 to Feb 2025

Click Here for more MetroCity Bankshares Charts.

MetroCity Bankshares (NASDAQ:MCBS)
Historical Stock Chart
From Feb 2024 to Feb 2025

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

MCBS MetroCity Bankshares Inc

MetroCity Bankshares Inc News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

MCBS MetroCity Bankshares Inc

MetroCity Bankshares Inc News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free