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MetroCity Bankshares, Inc. Reports Earnings For Third Quarter 2019

ATLANTA, Oct. 24, 2019 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $12.4 million, or $0.50 per diluted share, for the third quarter of 2019, compared with $9.9 million, or $0.40 per diluted share, for the third quarter of 2018, and $13.0 million, or $0.53 per diluted share, for the second quarter of 2019.

MetroCity Logo (PRNewsfoto/MetroCity Bankshares)

On August 30, 2019, the Company effected a 2-for-1 common stock split, as approved by the Company's board of directors. Common stock and per share data included in this earnings release have been restated to reflect this stock split.

On October 7, 2019, the Company completed its initial public offering of 1,000,000 shares of common stock at a public offering price of $13.50 per share. The Company received proceeds, before expenses, of approximately $12.6 million in the offering. The shares began trading on the Nasdaq Global Select Market on October 3, 2019, under the ticker symbol "MCBS". The underwriters of the initial public offering have a 30-day option to purchase an additional 290,850 shares of common stock at the initial public offering price less the underwriting discount.

Third Quarter 2019 Highlights:

  • Annualized return on average assets was 3.07%, compared to 3.44% for the second quarter of 2019 and 2.81% for the third quarter of 2018.
  • Annualized return on average equity was 26.44%, compared to 29.61% for the second quarter of 2019 and 25.65% for the third quarter of 2018.
  • Efficiency ratio was 37.7%, compared to 36.3% for the second quarter of 2019 and 43.3% for the third quarter of 2018.
  • Total assets increased by $120.2 million, or 7.9%, to $1.64 billion from the previous quarter.
  • Total loans, excluding loans held for sale, increased by $70.6 million, or 5.9%, to $1.26 billion from the previous quarter.
  • The yield earned on average loans, including loans held for sale, was 6.22%, compared to 6.11% for the second quarter of 2019 and 5.95% for the third quarter of 2018.
  • Annualized net recovery to average loans for the quarter was (0.11%), compared to a net charge-off to average loans ratio of 0.01% for the second quarter of 2019 and 0.07% for the third quarter of 2018.

Nack Paek, Chairman and CEO, commented, "We are pleased with our third quarter results which continues to solidify our position as one of the top performing banks in the industry. The completion of our IPO should enable us to further our growth and profitability."

Results of Operations

Net Income

Net income was $12.4 million for the third quarter of 2019, a decrease of $604,000, or 4.7%, from $13.0 million for the second quarter of 2019. This decrease was primarily due to the decrease in noninterest income of $1.1 million and a slight increase in noninterest expense of $228,000, offset by an increase in net interest income of $731,000. Net income increased $2.5 million, or 25.4%, compared to $9.9 million for the third quarter of 2018. This increase was primarily due to increases in net interest income of $1.1 million and noninterest income of $1.9 million.

Net Interest Income and Net Interest Margin

Interest income totaled $21.9 million for the third quarter of 2019, an increase of $1.1 million, or 5.2%, from the previous quarter, primarily due to an 11 basis points increase in the yield on average loans, including loans held for sale, and an 11 basis points increase in the yield on average federal funds sold and interest-bearing cash accounts. As compared to the third quarter of 2018, interest income increased by $3.1 million, or 16.7%, primarily due to the 27 basis points increase in the yield on average loans coupled with a $120.2 million increase in average loan balances.

Interest expense totaled $5.9 million for the third quarter of 2019, an increase of $359,000, or 6.4%, from the previous quarter, primarily due to a 6 basis points increase in deposit costs and a $39.3 million increase in average balances for total interest-bearing deposits. As compared to the third quarter of 2018, interest expense increased by $2.1 million, or 53.8%, primarily due to a 62 basis points increase in deposit costs.

The net interest margin for the third quarter of 2019 was 4.22% compared to 4.27% for the previous quarter, a decrease of 5 basis points. The cost of interest-bearing liabilities remained flat at 2.23%, while the yield on interest-earning assets decreased by 5 basis points to 5.78% from 5.83% for the previous quarter. Average earning assets increased by $70.6 million, primarily due to an increase in lower yielding assets including $65.5 million in federal funds sold and interest-earning cash accounts. Average interest-bearing liabilities increased by $53.5 million as average interest-bearing deposits increased by $39.3 million and average borrowings increased by $14.3 million.

As compared to the same period a year ago, the net interest margin for the third quarter of 2019 decreased by 27 basis points to 4.22% from 4.49%, primarily due to a 57 basis point increase in the cost of interest-bearing liabilities of $1.06 billion, partially offset by an increase of 13 basis points in the yield on interest-earning assets of $1.5 billion. Average earning assets increased by $185.9 million, primarily due to an increase of $120.2 million in average loans and $68.9 million in federal funds sold and interest-earning cash accounts. Average interest-bearing liabilities increased by $136.0 million, primarily driven by an increase in average interest-bearing deposits of $109.6 million and average borrowings of $26.5 million.

Noninterest Income

Noninterest income for the third quarter of 2019 was $11.0 million, a decrease of $1.1 million, or 9.1%, from the second quarter of 2019, primarily due to lower mortgage and SBA servicing income and other commissions and fees earned from mortgage loan originations.

Compared to the same period a year ago, noninterest income for the quarter increased by $1.9 million, or 20.3%, primarily due to the increase in the gains earned from the sales of SBA and mortgage loans.

Noninterest Expense

Noninterest expense for the third quarter of 2019 totaled $10.2 million, an increase of $228,000, or 2.3%, from $9.9 million for the second quarter of 2019. The increase was primarily attributable to higher salaries and employee benefits. Compared to the third quarter of 2018, noninterest expense decreased by $258,000, or 2.5%, partially due to lower mortgage related expenses.

The Company's efficiency ratio was 37.7% in the third quarter of 2019 compared with 36.3% and 43.3% for the second quarter of 2019 and third quarter of 2018, respectively.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2019 was 26.5%, compared to 25.6% for the second quarter of 2019 and 26.0% for the third quarter of 2018.

Balance Sheet

Total Assets

Total assets were $1.64 billion at September 30, 2019, an increase of $120.2 million, or 7.9%, from $1.52 billion at June 30, 2019, and an increase of $205.3 million, or 14.3%, from $1.44 billion at September 30, 2018. The $120.2 million increase from the prior quarter was primarily due to increases in cash and due from banks of $113.9 million and loans held for investment of $70.6 million, offset by a decrease in loans held for sale of $69.7 million.

Loans

Loans held for investment at September 30, 2019, were $1.26 billion, an increase of $70.6 million, or 5.9%, compared to $1.19 billion at June 30, 2019, and an increase of $181.0 million, or 16.8%, compared to $1.08 billion at September 30, 2018. Loan growth during the quarter for loans held for investment was experienced in all loan categories, with the exception of consumer and other loans. Specifically, commercial real estate increased $16.4 million and residential mortgages increased $46.3 million. Loans held for sale were zero at September 30, 2019, compared to $69.7 million at June 30, 2019 and $91.2 million at September 30, 2018.

Deposits

Total deposits at September 30, 2019 were $1.34 billion, an increase of $39.2 million, or 3.0%, over total deposits of $1.30 billion at June 30, 2019, and an increase of $80.3 million, or 6.4%, over total deposits of $1.26 billion at September 30, 2018. The increase from the prior quarter was primarily due to the increase in money market accounts and time deposits.

Noninterest bearing deposits were $311.2 million at September 30, 2019, compared to $309.3 million at June 30, 2019, and $294.6 million at September 30, 2018. Noninterest bearing deposits comprised 23.3% of total deposits at September 30, 2019, compared to 23.9% at June 30, 2019, and 23.5% at September 30, 2018. Interest bearing deposits were $1.02 billion at September 30, 2019, compared to $986.8 million at June 30, 2019, and $960.5 million at September 30, 2018. Interest bearing deposits comprised 76.7% of total deposits at September 30, 2019, compared to 76.1% at June 30, 2019, and 76.5% at September 30, 2018.

Asset Quality

The Company recorded no provision for loan losses during the third quarter of 2019 as asset quality remains strong. Annualized net charge-offs to average loans for the third quarter of 2019 was (0.11%) (a net recovery), compared to 0.01% for the second quarter of 2019, and 0.07% for the third quarter of 2018.

Nonperforming assets totaled $14.9 million, or 0.91% of total assets, at September 30, 2019, a $1.9 million decrease from $16.8 million, or 1.10% of total assets, at June 30, 2019. This decrease was mainly due to a $2.6 million decrease in nonaccrual loans, offset by a $423,000 increase in other real estate owned and a $509,000 increase in loans past due ninety days and still accruing.

Allowance for loan losses as a percentage of total loans held for investment was 0.54% at September 30, 2019, compared to 0.54% and 0.64% at June 30, 2019 and September 30, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans was 47.19% at September 30, 2019, compared to 38.67% and 75.34% at June 30, 2019 and September 30, 2018, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta metropolitan area. 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 our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "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 are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, 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. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the SEC on October 3, 2019 (Registration No. 333-233625), relating to our initial public offering, and in other documents that we file with the SEC from time to time. 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

SVP/Senior Accounting Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

 

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA


























As of or for the Three Months Ended


As of or for the Nine Months Ended




September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


September 30, 


September 30, 


(Dollars in thousands, except per share data)


2019


2019


2019


2018


2018


2019


2018


Selected income statement data: 























Interest income


$

21,908


$

20,818


$

19,862


$

19,023


$

18,766


$

62,588


$

53,856


Interest expense



5,929



5,570



5,058



4,548



3,854



16,557



10,127


Net interest income



15,979



15,248



14,804



14,475



14,912



46,031



43,729


Provision for loan losses









48



318





1,189


Noninterest income



11,001



12,098



7,434



9,104



9,145



30,533



28,505


Noninterest expense



10,162



9,934



10,064



10,485



10,420



30,160



28,090


Income tax expense



4,462



4,452



3,442



3,310



3,466



12,356



11,357


Net income



12,356



12,960



8,732



9,736



9,853



34,048



31,598


Per share data:























Basic income per share


$

0.51


$

0.54


$

0.36


$

0.40


$

0.41


$

1.40


$

1.31


Diluted income per share


$

0.50


$

0.53


$

0.36


$

0.40


$

0.40


$

1.39


$

1.29


Dividends per share


$

0.11


$

0.10


$

0.10


$

0.10


$

0.10


$

0.31


$

0.28


Book value per share (at period end)


$

8.00


$

7.58


$

7.20


$

6.95


$

6.63


$

8.00


$

6.63


Shares of common stock outstanding



24,305,378



24,305,378



24,148,062



24,258,062



24,258,062



24,305,378



24,258,062


Weighted average diluted shares



24,502,621



24,386,049



24,540,538



24,591,537



24,567,925



24,440,485



24,446,641


Performance ratios:























Return on average assets



3.07

%


3.44

%


2.42

%


2.67

%


2.81

%


2.98

%


3.13

%

Return on average equity



26.44



29.61



21.08



24.06



25.65



25.81



29.41


Dividend payout ratio



21.79



18.85



28.10



25.21



24.91



22.29



21.64


Yield on total loans



6.22



6.11



6.18



5.92



5.95



6.17



5.93


Yield on average earning assets



5.78



5.83



5.80



5.52



5.65



5.80



5.64


Cost of average interest bearing liabilities



2.23



2.23



2.09



1.88



1.66



2.19



1.49


Cost of deposits



2.29



2.23



2.10



1.89



1.67



2.21



1.49


Net interest margin



4.22



4.27



4.32



4.20



4.49



4.27



4.58


Efficiency ratio(1)



37.66



36.33



45.26



44.47



43.31



39.39



38.89


Asset quality data (at period end): 























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



(0.11)

%


0.01

%


0.04

%


0.10

%


0.07

%


(0.02)

%


0.15

%

Nonperforming assets to gross loans and OREO



1.18



1.41



0.98



0.78



0.85



1.18



0.85


ALL to nonperforming loans



47.19



38.67



58.46



74.12



75.34



47.19



75.34


ALL to loans held for investment



0.54



0.54



0.57



0.58



0.64



0.54



0.64


Balance sheet and capital ratios:























Gross loans held for investment to deposits



94.46

%


91.88

%


88.68

%


92.08

%


86.03

%


94.46

%


86.03

%

Noninterest bearing deposits to deposits



23.30



23.87



23.38



24.05



23.47



23.30



23.47


Common equity to assets



11.82



12.09



11.70



11.77



11.17



11.82



11.17


Leverage ratio



11.68



11.67



11.35



11.14



11.00



11.68



11.00


Common equity tier 1 ratio



18.62



17.99



17.40



17.44



17.17



18.62



17.17


Tier 1 risk-based capital ratio



18.62



17.99



17.40



17.44



17.17



18.62



17.17


Total risk-based capital ratio



19.31



18.66



18.09



18.16



17.95



19.31



17.95


Mortgage and SBA loan data: 























Mortgage loans serviced for others


$

1,122,551


$

1,016,352


$

839,352


$

804,188


$

685,379


$

1,122,551


$

685,379


Mortgage loan production



163,517



188,713



151,068



182,889



193,755



503,298



533,251


Mortgage loan sales



152,503



205,893



55,123



144,991



160,293



413,519



391,020


SBA loans serviced for others



446,266



443,830



425,694



431,201



433,872



446,266



433,872


SBA loan production



48,878



45,850



29,556



37,890



28,972



124,284



83,119


SBA loan sales



28,914



28,675



30,751



17,036



16,749



88,340



76,261

























______________________________________________

(1)   Represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

METROCITY BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)



















As of the Quarter Ended



September 30, 


June 30, 


March 31, 


December 31, 


September 30, 

(Dollars in thousands, except per share data)


2019


2019


2019


2018


2018

ASSETS
















Cash and due from banks


$

264,981


$

151,117


$

105,510


$

130,263


$

171,663

Federal funds sold



9,567



5,966



7,140



8,164



6,289

Cash and cash equivalents



274,548



157,083



112,650



138,427



177,952

Securities purchased under agreements to resell



15,000



15,000



15,000



15,000



15,000

Securities available for sale (at fair value)



15,913



17,846



18,712



18,888



19,099

Loans



1,259,046



1,188,419



1,136,654



1,143,575



1,078,061

Allowance for loan losses



(6,850)



(6,483)



(6,526)



(6,645)



(6,881)

Loans less allowance for loan losses



1,252,196



1,181,936



1,130,128



1,136,930



1,071,180

Loans held for sale





69,686



141,177



56,865



91,200

Accrued Interest Receivable



5,465



5,290



5,439



4,957



5,105

Federal Home Loan Bank stock



3,842



1,292



1,292



1,163



1,163

Premises and equipment, net



14,484



14,465



14,480



14,391



13,765

Operating lease right-of-use asset



12,431



12,783







Foreclosed real estate, net



423









SBA servicing asset, net



8,566



8,682



8,500



8,446



8,692

Mortgage servicing asset, net



17,740



16,771



14,909



14,934



13,475

Bank owned life insurance



20,101



19,982



19,865



19,749



19,631

Other assets



4,036



3,693



3,231



2,900



3,184

Total assets


$

1,644,745


$

1,524,509


$

1,485,383


$

1,432,650


$

1,439,446

















LIABILITIES
















Noninterest-bearing deposits


$

311,198


$

309,343


$

300,228


$

299,182


$

294,583

Interest-bearing deposits



1,024,154



986,844



983,751



945,050



960,516

Total deposits



1,335,352



1,296,187



1,283,979



1,244,232



1,255,099

Federal Home Loan Bank advances



60,000









Other borrowings



3,154



3,585



3,752



4,257



4,334

Operating lease liability



12,922



13,253







Accrued interest payable



940



1,415



1,663



1,251



889

Other liabilities



37,955



25,752



22,238



14,302



18,402

Total liabilities


$

1,450,323


$

1,340,192


$

1,311,632


$

1,264,042


$

1,278,724

















SHAREHOLDERS' EQUITY
















Preferred stock











Common stock



243



243



242



242



242

Additional paid-in capital



39,526



39,096



38,746



39,915



39,340

Retained earnings



154,652



144,989



134,833



128,555



121,272

Accumulated other comprehensive income (loss)



1



(11)



(70)



(104)



(132)

Total shareholders' equity



194,422



184,317



173,751



168,608



160,722

Total liabilities and shareholders' equity


$

1,644,745


$

1,524,509


$

1,485,383


$

1,432,650


$

1,439,446


 

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

























Three Months Ended


Nine Months Ended



September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


September 30, 


September 30, 

(Dollars in thousands, except per share data)


2019


2019


2019


2018


2018


2019


2018

Interest and dividend income:






















Loans, including Fees


$

20,857


$

20,159


$

18,839


$

18,116


$

18,153


$

59,855


$

52,130

Other investment income



907



496



868



748



500



2,271



1,421

Federal funds sold



144



163



155



159



113



462



305

Total interest income



21,908



20,818



19,862



19,023



18,766



62,588



53,856























Interest expense:






















Deposits



5,873



5,445



5,057



4,545



3,822



16,375



9,466

FHLB advances and other borrowings



56



125



1



3



32



182



661

Total interest expense



5,929



5,570



5,058



4,548



3,854



16,557



10,127























Net interest income



15,979



15,248



14,804



14,475



14,912



46,031



43,729























Provision for loan losses









48



318





1,189























Net interest income after provision for loan losses



15,979



15,248



14,804



14,427



14,594



46,031



42,540























Noninterest income:






















Service charges on deposit accounts



294



262



255



260



256



811



776

Other service charges, commissions and fees



2,592



3,058



2,399



2,727



2,792



8,049



7,668

Gain on sale of residential mortgage loans



2,901



2,615



938



1,723



1,605



6,454



3,956

Mortgage servicing income, net



2,594



3,315



1,339



2,715



3,313



7,248



9,279

SBA servicing income, net



900



1,137



1,043



791



416



3,080



2,328

Gain on sale of SBA loans



1,404



1,565



1,327



577



621



4,296



4,039

Other income



316



146



133



311



142



595



459

Total noninterest income



11,001



12,098



7,434



9,104



9,145



30,533



28,505























Noninterest expense:






















Salaries and employee benefits



6,573



6,037



6,316



6,562



6,436



18,926



17,007

Occupancy



1,161



1,231



1,155



1,133



1,075



3,547



2,953

Data Processing



245



227



293



198



214



765



644

Advertising



142



143



170



156



146



455



457

Other expenses



2,041



2,296



2,130



2,436



2,549



6,467



7,029

Total noninterest expense



10,162



9,934



10,064



10,485



10,420



30,160



28,090























Income before provision for income taxes



16,818



17,412



12,174



13,046



13,319



46,404



42,955

Provision for income taxes



4,462



4,452



3,442



3,310



3,466



12,356



11,357

Net income available to common shareholders


$

12,356


$

12,960


$

8,732


$

9,736


$

9,853


$

34,048


$

31,598

 

METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES






























Three Months Ended




September 30, 2019


June 30, 2019


September 30, 2018




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)


$

141,239


$

842



2.37

%

$

75,775


$

427


2.26

%

$

72,344


$

394


2.16

%

Securities purchased under agreements to resell



15,000



107



2.83



15,000



114


3.05



15,000



97


2.57


Securities available for sale



16,486



102



2.45



18,447



118


2.57



19,715



122


2.46


Total investments



172,725



1,051



2.41



109,222



659


2.42



107,059



613


2.27


Construction and development



34,903



579



6.58



30,060



490


6.54



48,207



746


6.14


Commercial real estate



474,455



8,210



6.87



457,599



7,599


6.66



390,424



6,484


6.59


Commercial and industrial



46,931



837



7.08



42,603



791


7.45



38,991



696


7.08


Residential real estate



772,068



11,181



5.75



790,667



11,219


5.69



727,786



10,125


5.52


Consumer and other



2,142



50



9.26



2,444



60


9.85



4,899



102


8.26


Gross loans(2)



1,330,499



20,857



6.22



1,323,373



20,159


6.11



1,210,307



18,153


5.95


Total earning assets



1,503,224



21,908



5.78



1,432,595



20,818


5.83



1,317,366



18,766


5.65


Noninterest-earning assets



95,437









80,439








74,257







Total assets



1,598,661









1,513,034








1,391,623







Interest-bearing liabilities: 



























NOW and savings deposits



49,880



40



0.32



51,413



43


0.34



69,132



64


0.37


Money market deposits



152,867



822



2.13



121,511



683


2.25



55,157



171


1.23


Time deposits



816,752



5,011



2.43



807,311



4,719


2.34



785,634



3,587


1.81


Total interest-bearing deposits



1,019,499



5,873



2.29



980,235



5,445


2.23



909,923



3,822


1.67


Borrowings



37,075



56



0.60



22,822



125


2.20



10,604



32


1.20


Total interest-bearing liabilities



1,056,574



5,929



2.23



1,003,057



5,570


2.23



920,527



3,854


1.66


Noninterest-bearing liabilities:



























Noninterest-bearing deposits



303,759









304,220








292,275







Other noninterest-bearing liabilities



52,954









30,193








26,417







Total noninterest-bearing liabilities



356,713









334,413








318,692







Shareholders' equity



185,374









175,564








152,404







Total liabilities and shareholders' equity


$

1,598,661








$

1,513,034







$

1,391,623







Net interest income





$

15,979








$

15,248







$

14,912




Net interest spread









3.55








3.60








3.99


Net interest margin









4.22








4.27








4.49



______________________________________________

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

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

 

METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES





















Nine Months Ended




September 30, 2019


September 30, 2018




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)


$

112,310


$

2,056


2.45

%

$

66,286


$

1,084


2.19

%

Securities purchased under agreements to resell



15,000



334


2.98



15,000



263


2.34


Securities available for sale



17,949



343


2.55



20,512



379


2.47


Total investments



145,259



2,733


2.52



101,798



1,726


2.27


Construction and development



34,598



1,721


6.65



47,127



2,088


5.92


Commercial real estate



453,741



23,109


6.81



388,683



18,685


6.43


Commercial and industrial



41,096



2,229


7.25



37,526



1,928


6.87


Residential real estate



764,873



32,636


5.70



695,790



29,091


5.59


Consumer and other



2,490



160


8.59



6,740



338


6.70


Gross loans(2)



1,296,798



59,855


6.17



1,175,866



52,130


5.93


Total earning assets



1,442,057



62,588


5.80



1,277,664



53,856


5.64


Noninterest-earning assets



83,947








72,787







Total assets



1,526,004








1,350,451







Interest-bearing liabilities:


















NOW and savings deposits



52,007



132


0.34



72,597



215


0.40


Money market deposits



119,931



1,957


2.18



46,801



332


0.95


Time deposits



819,510



14,286


2.33



728,331



8,919


1.64


Total interest-bearing deposits



991,448



16,375


2.21



847,729



9,466


1.49


Borrowings



21,529



182


1.13



58,913



661


1.50


Total interest-bearing liabilities



1,012,977



16,557


2.19



906,642



10,127


1.49


Noninterest-bearing liabilities:


















Noninterest-bearing deposits



300,851








280,021







Other noninterest-bearing liabilities



35,791








20,151







Total noninterest-bearing liabilities



336,642








300,172







Shareholders' equity



176,385








143,637







Total liabilities and shareholders' equity


$

1,526,004







$

1,350,451







Net interest income





$

46,031







$

43,729




Net interest spread








3.61








4.15


Net interest margin








4.27








4.58



______________________________________________

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

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

 

METROCITY BANKSHARES, INC.

LOAN DATA






























As of the Quarter Ended




September 30, 2019


June 30, 2019


March 31, 2019


December 31, 2018


September 30, 2018







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and Development


$

42,106


3.3

%

$

37,132


3.1

%

$

39,435


3.5

%

$

42,718


3.7

%

$

39,635


3.6

%

Commercial Real Estate



436,692


34.6

%


420,332


35.3

%


392,714


34.5

%


396,598


34.6

%


380,943


35.3

%

Commercial and Industrial



47,247


3.8

%


43,771


3.7

%


41,916


3.7

%


33,100


2.9

%


32,558


3.0

%

Residential Real Estate



733,702


58.2

%


687,389


57.7

%


662,272


58.1

%


670,341


58.5

%


622,842


57.7

%

Consumer and other



1,658


0.1

%


2,287


0.2

%


2,294


0.2

%


2,957


0.3

%


3,791


0.4

%

Gross loans


$

1,261,405


100

%

$

1,190,911


100

%

$

1,138,631


100

%

$

1,145,714


100

%

$

1,079,769


100

%

Unearned income



(2,359)





(2,492)





(1,977)





(2,139)





(1,708)




Allowance for loan losses



(6,850)





(6,483)





(6,526)





(6,645)





(6,881)




Net loans


$

1,252,196




$

1,181,936




$

1,130,128




$

1,136,930




$

1,071,180




 

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS




















As of the Quarter Ended




September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


(Dollars in thousands)


2019


2019


2019


2018


2018


Nonaccrual loans


$

11,039


$

13,633


$

7,865


$

5,667


$

5,814


Past due loans 90 days or more and still accruing



509










Accruing troubled debt restructured loans



2,969



3,130



3,298



3,298



3,319


Total non-performing loans



14,517



16,763



11,163



8,965



9,133


Other real estate owned



423










Total non-performing assets


$

14,940


$

16,763


$

11,163


$

8,965


$

9,133



















Nonperforming loans to gross loans



1.15

%


1.41

%


0.98

%


0.78

%


0.85

%

Nonperforming assets to total assets



0.91

%


1.10

%


0.75

%


0.63

%


0.63

%

Allowance for loan losses to non-performing loans



47.19

%


38.67

%


58.46

%


74.12

%


75.34

%

 

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES


























As of or for the Three Months Ended


As of or for the Nine Months Ended




September 30, 


June 30, 


March 31, 


December 31, 


September 30, 


September 30, 


September 30, 


(Dollars in thousands)


2019


2019


2019


2018


2018


2019


2018


Balance, beginning of period


$

6,483


$

6,526


$

6,645


$

6,881


$

6,766


$

6,645


$

6,925


Net charge-offs/(recoveries):























Construction and development
















Commercial real estate



(501)



(6)



(5)



67



(4)



(512)




Commercial and industrial





14





39





14




Residential real estate
















Consumer and other



134



35



124



178



207



293



1,233


Total net charge-offs/(recoveries)



(367)



43



119



284



203



(205)



1,233


Provision for loan losses









48



318





1,189


Balance, end of period


$

6,850


$

6,483


$

6,526


$

6,645


$

6,881


$

6,850


$

6,881


Total loans at end of period


$

1,261,405


$

1,190,911


$

1,138,631


$

1,145,714


$

1,079,769


$

1,261,405


$

1,079,769


Average loans(1)


$

1,295,657


$

1,217,943


$

1,136,450


$

1,141,020


$

1,127,294


$

1,229,864


$

1,114,232


Net charge-offs to average loans



(0.11)

%


0.01

%


0.04

%


0.10

%


0.07

%


(0.02)

%


0.15

%

Allowance for loan losses to total loans



0.54

%


0.54

%


0.57

%


0.58

%


0.64

%


0.54

%


0.64

%
























____________________________________

(1)   Excludes loans held for sale

 

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