MetroCity Bankshares, Inc. Reports Earnings For Second Quarter 2021

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ATLANTA, July 23, 2021 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $14.4 million, or $0.56 per diluted share, for the second quarter of 2021, compared to $13.0 million, or $0.50 per diluted share, for the first quarter of 2021, and $7.7 million, or $0.30 per diluted share, for the second quarter of 2020. For the six months ended June 30, 2021, the Company reported net income of $27.4 million, or $1.06 per diluted share, compared to $17.6 million, or $0.68 per diluted share, for the same period in 2020.

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

Second Quarter 2021 Highlights:

  • Annualized return on average assets was 2.53%, compared to 2.62% for the first quarter of 2021 and 1.89% for the second quarter of 2020.

  • Annualized return on average equity was 22.51%, compared to 21.35% for the first quarter of 2021 and 13.92% for the second quarter of 2020.

  • Efficiency ratio of 36.2%, compared to 36.0% for the first quarter of 2021 and 45.6% for the second quarter of 2020.

  • Total assets increased by $363.5 million, or 16.9%, to $2.52 billion from the previous quarter.

  • Total loans increased by $225.0 million, or 12.1%, to $2.09 billion from the previous quarter.

  • Total deposits increased by $228.9 million, or 13.1%, to $1.97 billion from the previous quarter.

  • Net interest margin was 4.60%, compared to 4.60% for the first quarter of 2021 and 4.09% for the second quarter of 2020.

Results of Operations

Net Income

Net income was $14.4 million for the second quarter of 2021, an increase of $1.4 million, or 10.9%, from $13.0 million for the first quarter of 2021. This increase was due to an increase in net interest income of $3.3 million and an increase in noninterest income of $408,000, offset by an increase in provision for loan losses of $606,000, an increase in noninterest expense of $1.4 million and an increase in provision for income taxes of $296,000. Net income increased $6.7 million, or 86.0%, in the second quarter of 2021 compared to net income of $7.7 million for the second quarter of 2020. This increase was due to an increase in net interest income of $9.0 million and an increase in noninterest income of $3.1 million, offset by an increase in provision for loan losses of $1.1 million, an increase in noninterest expense of $2.4 million and an increase in provision for income taxes of $1.9 million.

Net Interest Income and Net Interest Margin

Interest income totaled $25.9 million for the second quarter of 2021, an increase of $3.2 million, or 14.2%, from the previous quarter, primarily due to a $225.9 million increase in average loan balances. We also recognized Paycheck Protection Program ("PPP") loan fee income of $1.7 million during the second quarter of 2021 compared to $1.1 million recognized during the first quarter of 2021. As compared to the second quarter of 2020, interest income for the second quarter of 2021 increased by $6.8 million, or 35.7%, primarily due to an increase in average loan balances of $648.8 million.

Interest expense totaled $1.1 million for the second quarter of 2021, a slight decrease of $75,000, or 6.6%, from the previous quarter, primarily due to a three basis points decrease in the cost of average money market deposits and a 12 basis points decrease in the cost of average time deposits. As compared to the second quarter of 2020, interest expense for the second quarter of 2021 decreased by $2.2 million, or 67.2%, primarily due to a 109 basis points decrease in deposit costs coupled with a $111.0 million decrease in higher cost average time deposits.

The net interest margin for the second and first quarter of 2021 was 4.60%. The cost of average interest-bearing liabilities for the second quarter of 2021 decreased by 7 basis points to 0.31% compared with the previous quarter, while the yield on average interest-earning assets for the second quarter of 2021 decreased by 6 basis points to 4.79% from 4.85% for the previous quarter. Average earning assets increased by $268.7 million from the previous quarter, primarily due to an increase in average loans of $225.9 million and a $43.9 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $176.0 million from the previous quarter as average interest-bearing deposits increased by $169.0 million and average borrowings increased by $7.0 million. The inclusion of PPP loan average balances, interest and fees had a 14 basis point impact on the yield on average loans and a 16 basis points impact on the net interest margin for the second quarter of 2021.

As compared to the same period in 2020, the net interest margin for the second quarter of 2021 increased by 51 basis points to 4.60% from 4.09%, primarily due to a 101 basis point decrease in the cost of average interest-bearing liabilities of $1.38 billion and a decrease of 14 basis points in the yield on average interest-earning assets of $2.17 billion. Average earning assets for the second quarter of 2021 increased by $610.0 million from the second quarter of 2020, primarily due to a $648.8 million increase in average loans, offset by a $40.0 million decrease in average securities purchased under agreements to resell. Average interest-bearing liabilities for the second quarter of 2021 increased by $394.7 million from the second quarter of 2020, driven by an increase in average interest-bearing deposits of $383.3 million and an increase in average borrowings of $11.3 million.

Noninterest Income

Noninterest income for the second quarter of 2021 was $8.6 million, an increase of $408,000, or 5.0%, from the first quarter of 2021, primarily due to higher mortgage loan fees and gains on sale of SBA loans, partially offset by decreases in mortgage and SBA servicing income. During the second quarter of 2021, we recorded a $624,000 fair value adjustment gain on our SBA servicing asset and a $603,000 fair value impairment charge on our mortgage servicing asset. These servicing asset adjustments had no impact on our diluted earnings per share for the quarter.

Compared to the same period in 2020, noninterest income for the second quarter of 2021 increased by $3.1 million, or 56.3%, primarily due to the increase in mortgage loan fees and gains on sale of SBA loans, partially offset by a decrease in mortgage servicing income. Mortgage loan originations totaled $326.5 million during the second quarter of 2021 compared to $48.9 million during the second quarter of 2020. There were no mortgage loan sales during the second quarter of 2021 or 2020.

Noninterest Expense

Noninterest expense for the second quarter of 2021 totaled $12.1 million, an increase of $1.4 million, or 12.9%, from $10.7 million for the first quarter of 2021. This increase was primarily attributable to higher salaries and employee benefits, professional fees and expenses related to other real estate owned. Compared to the second quarter of 2020, noninterest expense during the second quarter of 2021 increased by $2.4 million, or 24.4%, primarily due to higher salaries and employee benefits, loan related expenses and other real estate owned related expenses.

The Company's efficiency ratio was 36.2% for the second quarter of 2021 compared to 36.0% and 45.6% for the first quarter of 2021 and second quarter of 2020, respectively. For the six months ended June 30, 2021, the efficiency ratio was 36.1% compared with 44.3% for the same period in 2020.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2021 was 24.7%, compared to 25.5% for the first quarter of 2021 and 26.7% for the second quarter of 2020.

Balance Sheet

Total Assets

Total assets were $2.52 billion at June 30, 2021, an increase of $363.5 million, or 16.9%, from $2.15 billion at March 31, 2021, and an increase of $796.1 million, or 46.2%, from $1.72 billion at June 30, 2020. The $363.5 million increase in total assets at June 30, 2021 compared to March 31, 2021 was primarily due to increases in loans of $225.0 million and cash and due from banks of $139.5 million, partially offset by a $2.1 million increase in the allowance for loan losses. The $796.1 million increase in total assets at June 30, 2021 compared to June 30, 2020 was primarily due to increases in loans of $726.8 million, cash and due from banks of $101.0 million and bank owned life insurance of $15.8 million, partially offset by a decrease in the mortgage servicing asset of $6.5 million and an increase in the allowance for loan losses of $6.0 million.

Loans

Loans held for investment were $2.09 billion at June 30, 2021, an increase of $225.0 million, or 12.1%, compared to $1.87 billion at March 31, 2021, and an increase of $726.8 million, or 53.2%, compared to $1.36 billion at June 30, 2020. The increase in loans held for investment at June 30, 2021 compared to March 31, 2021 was primarily due to a $249.5 million increase in residential mortgages, a $6.5 million increase in construction and development loans and a $2.4 million increase in commercial real estate loans, offset by a $32.8 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $93.1 million as of June 30, 2021. There were no loans classified as held for sale at June 30, 2021, March 31, 2021 or June 30, 2020.

Deposits

Total deposits were $1.97 billion at June 30, 2021, an increase of $228.9 million, or 13.1%, compared to total deposits of $1.75 billion at March 31, 2021, and an increase of $624.9 million, or 46.3%, compared to total deposits of $1.35 billion at June 30, 2020. The increase in total deposits at June 30, 2021 compared to March 31, 2021 was primarily due to the $71.9 million increase in noninterest-bearing demand deposits, $131.5 million increase in money market accounts, $9.5 million increase in interest-bearing demand deposits, and a $11.6 million increase in time deposits. The increase in money market accounts was primarily due to the increase of $119.6 million in brokered money market balances during the quarter.

Noninterest-bearing deposits were $618.1 million at June 30, 2021, compared to $546.2 million at March 31, 2021 and $449.2 million at June 30, 2020. Noninterest-bearing deposits constituted 31.3% of total deposits at June 30, 2021, compared to 31.3% at March 31, 2021 and 33.3% at June 30, 2020. Interest-bearing deposits were $1.36 billion at June 30, 2021, compared to $1.20 billion at March 31, 2021 and $900.7 million at June 30, 2020. Interest-bearing deposits constituted 68.7% of total deposits at June 30, 2021, compared to 68.7% at March 31, 2021 and 66.7% at June 30, 2020.

Asset Quality

The Company recorded a provision for loan losses of $2.2 million during the second quarter of 2021. Annualized net charge-offs to average loans for the second quarter of 2021 was 0.02%, compared to 0.00% for the first quarter of 2021 and 0.01% for the second 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, partially resulting in the increased provision expense recorded during the second 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 $14.0 million, or 0.56% of total assets, at June 30, 2021, a decrease of $1.8 million from $15.8 million, or 0.73% of total assets, at March 31, 2021, and a slight increase of $378,000 from $13.7 million, or 0.79% of total assets, at June 30, 2020. The decrease in nonperforming assets at June 30, 2021 compared to March 31, 2021 was primarily due to a $2.4 million decrease in nonaccrual loans, partially offset by an $812,000 increase in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.66% at June 30, 2021, compared to 0.63% at March 31, 2021 and 0.58% at June 30, 2020. Excluding outstanding PPP loans of $93.1 million as of June 30, 2021, $125.6 million as of March 31, 2021 and $96.1 million as of June 30, 2020, the allowance for loan losses as a percentage of total loans was 0.69% at June 30, 2021, 0.67% at March 31, 2021 and 0.62% at June 30, 2020. Allowance for loan losses as a percentage of nonperforming loans was 147.82% at June 30, 2021, compared to 98.33% and 59.66% at March 31, 2021 and June 30, 2020, respectively.

COVID-19

As of June 30, 2021, we had six non-SBA commercial customers with outstanding loan balances totaling $15.3 million that were under approved payment deferrals. This is a decline from the active payment deferrals as of March 31, 2021 that were granted to nine non-SBA commercial customers with outstanding balances totaling $26.5 million. As of June 30, 2021, we had seven SBA loans with outstanding gross loan balances totaling $13.3 million ($3.3 million unguaranteed book balance) that were under approved payment deferrals. As of July 20, 2021, the SBA had granted forgiveness on (1) PPP loans totaling $71.8 million, or 74.1% 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 $3.9 million, or 6.3% 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 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 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; 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; 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. 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

Chief Accounting 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)


2021


2021


2020


2020


2020


2021


2020


Selected income statement data:























Interest income


$

25,888


$

22,672


$

19,839


$

18,131


$

19,083


$

48,560


$

39,639


Interest expense



1,063



1,138



1,411



2,192



3,240



2,201



7,886


Net interest income



24,825



21,534



18,428



15,939



15,843



46,359



31,753


Provision for loan losses



2,205



1,599



956



1,450



1,061



3,804



1,061


Noninterest income



8,594



8,186



6,138



7,964



5,500



16,780



13,109


Noninterest expense



12,093



10,708



11,077



10,150



9,724



22,801



19,873


Income tax expense



4,728



4,432



3,079



2,918



2,819



9,160



6,373


Net income



14,393



12,981



9,454



9,385



7,739



27,374



17,555


Per share data:























Basic income per share


$

0.56


$

0.51


$

0.37


$

0.37


$

0.30


$

1.07


$

0.69


Diluted income per share


$

0.56


$

0.50


$

0.37


$

0.36


$

0.30


$

1.06


$

0.68


Dividends per share


$

0.10


$

0.10


$

0.09


$

0.09


$

0.11


$

0.20


$

0.22


Book value per share (at period end)


$

10.33


$

9.95


$

9.54


$

9.23


$

8.94


$

10.33


$

8.94


Shares of common stock outstanding



25,578,668



25,674,573



25,674,573



25,674,067



25,674,067



25,578,668



25,674,067


Weighted average diluted shares



25,833,328



25,881,827



25,870,885



25,858,741



25,717,339



25,840,530



25,731,714


Performance ratios:























Return on average assets



2.53

%


2.62

%


2.14

%


2.20

%


1.89

%


2.57

%


2.16

%

Return on average equity



22.51



21.35



15.78



16.22



13.92



21.94



16.03


Dividend payout ratio



17.95



19.91



24.60



24.78



36.53



18.88



32.21


Yield on total loans



5.21



5.20



5.14



5.05



5.69



5.21



5.90


Yield on average earning assets



4.79



4.85



4.80



4.51



4.93



4.82



5.17


Cost of average interest bearing liabilities



0.31



0.38



0.56



0.91



1.32



0.34



1.56


Cost of deposits



0.29



0.36



0.55



0.94



1.38



0.32



1.63


Net interest margin



4.60



4.60



4.46



3.97



4.09



4.60



4.14


Efficiency ratio(1)



36.19



36.03



45.09



42.46



45.56



36.11



44.30


Asset quality data (at period end):























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



0.02

%


0.00

%


0.04

%


0.00

%


0.01

%


0.01

%


0.00

%

Nonperforming assets to gross loans and OREO



0.67



0.84



1.03



1.19



1.00



0.67



1.00


ALL to nonperforming loans



147.82



98.33



77.40



54.24



59.66



147.82



59.66


ALL to loans held for investment



0.66



0.63



0.62



0.64



0.58



0.66



0.58


Balance sheet and capital ratios:























Gross loans held for investment to deposits



106.31

%


107.33

%


110.48

%


109.50

%


101.48

%


106.31

%


101.48

%

Noninterest bearing deposits to deposits



31.30



31.28



31.28



34.44



33.28



31.30



33.28


Common equity to assets



10.50



11.85



12.90



13.63



13.32



10.50



13.32


Leverage ratio



11.14



12.23



13.44



13.44



13.44



11.14



13.44


Common equity tier 1 ratio



17.71



18.97



20.00



21.09



21.75



17.71



21.75


Tier 1 risk-based capital ratio



17.71



18.97



20.00



21.09



21.75



17.71



21.75


Total risk-based capital ratio



18.68



19.88



20.86



21.96



22.53



18.68



22.53


Mortgage and SBA loan data:























Mortgage loans serviced for others


$

746,660


$

856,432


$

961,670


$

1,063,500


$

1,136,824


$

746,660


$

1,136,824


Mortgage loan production



326,507



263,698



194,951



120,337



48,850



590,205



168,926


Mortgage loan sales















92,737


SBA loans serviced for others



549,238



521,182



507,442



500,047



476,629



549,238



476,629


SBA loan production



67,376



80,466



34,631



52,742



114,899



147,842



158,435


SBA loan sales



34,158



22,399



25,505



37,923



35,247



56,557



65,205


________________________________________

(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)


2021


2021


2020


2020


2020

ASSETS
















Cash and due from banks


$

309,289


$

169,775


$

140,744


$

109,263


$

208,325

Federal funds sold



...

4,644



4,444



9,944



17,268



7,444

Cash and cash equivalents



313,933



174,219



150,688



126,531



215,769

Securities purchased under agreements to resell









40,000



40,000

Securities available for sale (at fair value)



16,722



18,739



18,117



18,204



18,415

Loans



2,091,767



1,866,785



1,630,344



1,459,899



1,364,989

Allowance for loan losses



(13,860)



(11,735)



(10,135)



(9,339)



(7,894)

Loans less allowance for loan losses



2,077,907



1,855,050



1,620,209



1,450,560



1,357,095

Loans held for sale











Accrued interest receivable



10,668



10,515



10,671



7,999



8,270

Federal Home Loan Bank stock



8,451



3,951



6,147



5,723



4,873

Premises and equipment, net



13,557



13,663



13,854



14,083



14,231

Operating lease right-of-use asset



10,078



10,483



10,348



10,786



11,220

Foreclosed real estate, net



4,656



3,844



3,844



282



423

SBA servicing asset, net



11,155



10,535



9,643



10,173



8,446

Mortgage servicing asset, net



9,529



11,722



12,991



14,599



16,064

Bank owned life insurance



36,263



36,033



35,806



35,578



20,450

Other assets



4,921



5,606



5,171



5,355



6,501

Total assets


$

2,517,840


$

2,154,360


$

1,897,489


$

1,739,873


$

1,721,757

















LIABILITIES
















Noninterest-bearing deposits


$

618,054


$

546,164


$

462,909


$

460,679


$

449,185

Interest-bearing deposits



1,356,777



1,199,756



1,016,980



877,112



900,713

Total deposits



1,974,831



1,745,920



1,479,889



1,337,791



1,349,898

Federal Home Loan Bank advances



200,000



80,000



110,000



100,000



80,000

Other borrowings



474



479



483



491



3,060

Operating lease liability



10,648



11,048



10,910



11,342



11,769

Accrued interest payable



202



206



222



310



549

Other liabilities



67,431



61,332



51,154



52,843



47,060

Total liabilities


$

2,253,586


$

1,898,985


$

1,652,658


$

1,502,777


$

1,492,336

















SHAREHOLDERS' EQUITY
















Preferred stock











Common stock



256



257



257



257



257

Additional paid-in capital



52,924



55,977



55,674



55,098



54,524

Retained earnings



210,910



199,102



188,705



181,576



174,518

Accumulated other comprehensive income (loss)



164



39



195



165



122

Total shareholders' equity



264,254



255,375



244,831



237,096



229,421

Total liabilities and shareholders' equity


$

2,517,840


$

2,154,360


$

1,897,489


$

1,739,873


$

1,721,757


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)


2021


2021


2020


2020


2020


2021


2020

Interest and dividend income:






















Loans, including Fees


$

25,728


$

22,500


$

19,658


$

17,880


$

18,826


$

48,228


$

38,334

Other investment income



159



170



164



187



196



329



1,078

Federal funds sold



1



2



17



64



61



3



227

Total interest income



25,888



22,672



19,839



18,131



19,083



48,560



39,639























Interest expense:






















Deposits



919



992



1,262



2,046



3,096



1,911



7,610

FHLB advances and other borrowings



144



146



149



146



144



290



276

Total interest expense



1,063



1,138



1,411



2,192



3,240



2,201



7,886























Net interest income



24,825



21,534



18,428



15,939



15,843



46,359



31,753























Provision for loan losses



2,205



1,599



956



1,450



1,061



3,804



1,061























Net interest income after provision for loan losses



22,620



19,935



17,472



14,489



14,782



42,555



30,692























Noninterest income:






















Service charges on deposit accounts



411



373



350



309



277



784



653

Other service charges, commissions and fees



3,877



3,398



3,223



2,076



990



7,275



3,245

Gain on sale of residential mortgage loans















2,529

Mortgage servicing income, net



(957)



166



(82)



235



783



(791)



1,155

Gain on sale of SBA loans



2,845



1,854



1,625



2,265



1,276



4,699



2,577

SBA servicing income, net



1,905



2,133



724



2,931



1,959



4,038



2,475

Other income



513



262



298



148



215



775



475

Total noninterest income



8,594



8,186



6,138



7,964



5,500



16,780



13,109























Noninterest expense:






















Salaries and employee benefits



6,915



6,699



6,822



6,416



5,749



13,614



12,262

Occupancy



1,252



1,275



1,293



1,302



1,277



2,527



2,488

Data Processing



283



308



313



287



201



591



478

Advertising



117



145



138



127



140



262



301

Other expenses



3,526



2,281



2,511



2,018



2,357



5,807



4,344

Total noninterest expense



12,093



10,708



11,077



10,150



9,724



22,801



19,873























Income before provision for income taxes



19,121



17,413



12,533



12,303



10,558



36,534



23,928

Provision for income taxes



4,728



4,432



3,079



2,918



2,819



9,160



6,373

Net income available to common shareholders


$

14,393


$

12,981


$

9,454


$

9,385


$

7,739


$

27,374


$

17,555

METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES




Three Months Ended




June 30, 2021


March 31, 2021


June 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)


$

169,578


$

76


0.18

%

$

125,699


$

72


0.23

%

$

167,059


$

97


0.23

%

Securities purchased under agreements to resell













40,000



57


0.57


Securities available for sale



17,080



84


1.97



18,164



100


2.23



18,410



103


2.25


Total investments



186,658



160


0.34



143,863



172


0.48



225,469



257


0.46


Construction and development



47,173



615


5.23



40,954



531


5.26



31,617



421


5.36


Commercial real estate



510,241



7,344


5.77



491,635



7,078


5.84



472,113



6,470


5.51


Commercial and industrial



146,408



2,558


7.01



152,433



1,920


5.11



111,629



2,076


7.48


Residential real estate



1,275,555



15,180


4.77



1,068,495



12,930


4.91



714,095



9,801


5.52


Consumer and other



179



31


69.46



174



41


95.56



1,275



58


18.30


Gross loans(2)



1,979,556



25,728


5.21



1,753,691



22,500


5.20



1,330,729



18,826


5.69


Total earning assets



2,166,214



25,888


4.79



1,897,554



22,672


4.85



1,556,198



19,083


4.93


Noninterest-earning assets



112,161








111,164








93,152







Total assets



2,278,375








2,008,718








1,649,350







Interest-bearing liabilities:


























NOW and savings deposits



107,072



53


0.20



92,312



47


0.21



64,081



40


0.26


Money market deposits



659,173



373


0.23



534,192



337


0.26



207,785



393


0.76


Time deposits



521,217



493


0.38



491,913



608


0.50



632,257



2,663


1.69


Total interest-bearing deposits



1,287,462



919


0.29



1,118,417



992


0.36



904,123



3,096


1.38


Borrowings



94,435



144


0.61



87,483



146


0.68



83,096



144


0.70


Total interest-bearing liabilities



1,381,897



1,063


0.31



1,205,900



1,138


0.38



987,219



3,240


1.32


Noninterest-bearing liabilities:


























Noninterest-bearing deposits



561,170








483,691








377,136







Other noninterest-bearing liabilities



78,822








72,534








61,449







Total noninterest-bearing liabilities



639,992








556,225








438,585







Shareholders' equity



256,486








246,593








223,546







Total liabilities and shareholders' equity


$

2,278,375







$

2,008,718







$

1,649,350







Net interest income





$

24,825







$

21,534







$

15,843




Net interest spread








4.48








4.47








3.61


Net interest margin








4.60








4.60








4.09


________________________________________

(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, 2021


June 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)


$

147,760


$

149


0.20

%

$

180,214


$

899


1.00

%

Securities purchased under agreements to resell








36,016



197


1.10


Securities available for sale



17,619



183


2.09



17,537



209


2.40


Total investments



165,379



332


0.40



233,767



1,305


1.12


Construction and development



44,081



1,147


5.25



29,425



817


5.58


Commercial real estate



500,989



14,422


5.81



474,464



13,991


5.93


Commercial and industrial



149,403



4,478


6.04



85,781



3,055


7.16


Residential real estate



1,172,597



28,109


4.83



716,282



20,371


5.72


Consumer and other



177



72


82.03



1,430



100


14.06


Gross loans(2)



1,867,247



48,228


5.21



1,307,382



38,334


5.90


Total earning assets



2,032,626



48,560


4.82



1,541,149



39,639


5.17


Noninterest-earning assets



111,665








93,323







Total assets



2,144,291








1,634,472







Interest-bearing liabilities:


















NOW and savings deposits



99,732



99


0.20



61,141



83


0.27


Money market deposits



597,028



711


0.24



198,524



1,062


1.08


Time deposits



506,646



1,101


0.44



679,145



6,465


1.91


Total interest-bearing deposits



1,203,406



1,911


0.32



938,810



7,610


1.63


Borrowings



90,978



290


0.64



79,486



276


0.70


Total interest-bearing liabilities



1,294,384



2,201


0.34



1,018,296



7,886


1.56


Noninterest-bearing liabilities:


















Noninterest-bearing deposits



522,645








338,112







Other noninterest-bearing liabilities



75,695








57,887







Total noninterest-bearing liabilities



598,340








395,999







Shareholders' equity



251,567








220,177







Total liabilities and shareholders' equity


$

2,144,291







$

1,634,472







Net interest income





$

46,359







$

31,753




Net interest spread








4.48








3.61


Net interest margin








4.60








4.14


________________________________________

(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, 2021


March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and Development


$

58,668


2.8

%

$

52,202


2.8

%

$

45,653


2.8

%

$

38,607


2.6

%

$

42,847


3.1

%

Commercial Real Estate



475,658


22.7



473,281


25.3



477,419


29.2



447,596


30.6



429,019


31.3


Commercial and Industrial



134,076


6.4



166,915


8.9



137,239


8.4



146,880


10.0



141,540


10.3


Residential Real Estate



1,430,843


68.1



1,181,385


63.0



974,445


59.6



831,334


56.7



755,521


55.2


Consumer and other



169




169




183




505


0.1



967


0.1


Gross loans


$

2,099,414


100.0

%

$

1,873,952


100.0

%

$

1,634,939


100.0

%

$

1,464,922


100.0

%

$

1,369,894


100.0

%

Unearned income



(7,647)





(7,167)





(4,595)





(5,023)





(4,905)




Allowance for loan losses



(13,860)





(11,735)





(10,135)





(9,339)





(7,894)




Net loans


$

2,077,907




$

1,855,050




$

1,620,209




$

1,450,560




$

1,357,095




METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS




As of the Quarter Ended




June 30,


March 31,