MetroCity Bankshares Inc (MCBS) Reports Q3 2023 Earnings
Net income for Q3 2023 was $11.4 million, a decrease from $13.1 million in Q2 2023 and $16.9 million in Q3 2022.
Net interest income for Q3 2023 was $24.15 million, a decrease from $24.97 million in Q2 2023.
Total assets increased by 1.0% from Q2 2023, reaching $3.51 billion in Q3 2023.
Nonperforming assets increased to $37.8 million, or 1.08% of total assets, in Q3 2023.
On October 20, 2023, MetroCity Bankshares Inc (NASDAQ:MCBS) released its earnings report for the third quarter of 2023. The company reported a net income of $11.4 million, marking a decrease of 12.8% from the second quarter of 2023 and a 32.4% decrease from the third quarter of 2022. For the nine months ended September 30, 2023, the company reported a net income of $40.3 million, a decrease of 23.2% from the same period in 2022.
Financial Performance
Net interest income for the third quarter of 2023 was $24.15 million, a decrease from $24.97 million in the second quarter of 2023. The decrease was primarily due to a decrease in noninterest income of $1.9 million, a decrease in net interest income of $816,000, and an increase in noninterest expense of $251,000, offset by a decrease in income tax expense of $1.3 million.
Noninterest income for the third quarter of 2023 was $2.9 million, a decrease of 39.0% from the second quarter of 2023, primarily due to lower gains on sale of Small Business Administration (SBA) loans and SBA servicing income, partially offset by higher mortgage loan fees.
Balance Sheet and Asset Quality
Total assets were $3.51 billion at the end of September 2023, an increase of 1.0% from $3.48 billion at the end of June 2023. The increase in total assets was primarily due to increases in cash and cash equivalents, loans, and other assets.
Nonperforming assets totaled $37.8 million, or 1.08% of total assets, at the end of September 2023, an increase from $23.6 million, or 0.68% of total assets, at the end of June 2023. The increase in nonperforming assets was primarily due to an increase in accruing restructured loans and nonaccrual loans.
The company's efficiency ratio was 43.6% for the third quarter of 2023 compared to 38.8% for the second quarter of 2023 and 36.4% for the third quarter of 2022.
MetroCity Bankshares Inc (NASDAQ:MCBS) is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia.
This article first appeared on GuruFocus.
