METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2021
01/24/2022 - 12:31 PM
ATLANTA , Jan. 24, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $17.4 million , or $0.68 per diluted share, for the fourth quarter of 2021, compared to $16.9 million , or $0.66 per diluted share, for the third quarter of 2021, and $9.5 million , or $0.37 per diluted share, for the fourth quarter of 2020. For the year ended December 31, 2021 , the Company reported net income of $61.7 million , or $2.39 per diluted share, compared to $36.4 million , or $1.41 per diluted share, for the year ended December 31, 2020 .
Fourth Quarter 2021 Highlights:
Annualized return on average assets was 2.33% , compared to 2.61% for the third quarter of 2021 and 2.14% for the fourth quarter of 2020. Annualized return on average equity was 24.80% , compared to 25.23% for the third quarter of 2021 and 15.78% for the fourth quarter of 2020. Efficiency ratio of 33.7% , compared to 34.8% for the third quarter of 2021 and 45.1% for the fourth quarter of 2020. Total assets increased by $355.9 million , or 12.9% , to $3.11 billion from the previous quarter. Total loans increased by $143.4 million , or 6.1% , to $2.51 billion from the previous quarter. Total deposits increased by $151.2 million , or 7.2% , to $2.26 billion from the previous quarter. Full Year 2021 Highlights:
Return on average assets was 2.51% , compared to 2.17% for 2020. Return on average equity was 23.55% , compared to 16.02% for 2020. Efficiency ratio of 35.1% , compared to 44.0% for 2020. Total assets increased by $1.21 billion , or 63.7% , to $3.11 billion from $1.90 billion at December 31, 2020 . Total loans increased by $874.7 million , or 53.7% , to $2.51 billion from $1.63 billion at December 31, 2020 . Total deposits increased by $783.1 million , or 52.9% , to $2.26 billion from $1.48 billion at December 31, 2020 . Net interest margin increased to 4.45% compared to 4.18% in 2020. Results of Operations
Net Income
Net income was $17.4 million for the fourth quarter of 2021, an increase of $563,000 , or 3.3% , from $16.9 million for the third quarter of 2021. This increase was due to an increase in net interest income of $1.4 million , a decrease in provision for loan losses of $2.0 million and a decrease in noninterest expense of $599,000 , offset by a decrease in noninterest income of $2.0 million and an increase in provision for taxes of $1.5 million . Net income increased $8.0 million , or 84.5% , in the fourth quarter of 2021 compared to net income of $9.5 million for the fourth quarter of 2020. This increase was due to an increase in net interest income of $11.2 million , an increase in noninterest income of $1.3 million and a decrease in provision for loan losses of $410,000 , offset by an increase in noninterest expense of $1.4 million and an increase in provision for income taxes of $3.5 million .
Net income was $61.7 million for the year ended December 31, 2021 , an increase of $25.3 million , or 69.5% , from $36.4 million for the year ended December 31, 2020 . This increase was due to an increase in net interest income of $38.0 million and an increase in noninterest income of $6.6 million , offset by an increase in provision for loan losses of $3.5 million , an increase in noninterest expense of $7.3 million and an increase in provision for taxes of $8.5 million .
Net Interest Income and Net Interest Margin
Interest income totaled $30.9 million for the fourth quarter of 2021, an increase of $1.5 million , or 5.2% , from the previous quarter, primarily due to a $212.2 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $708,000 during the fourth quarter of 2021 compared to $1.9 million recognized during the third quarter of 2021. As compared to the fourth quarter of 2020, interest income for the fourth quarter of 2021 increased by $11.0 million , or 55.5% , primarily due to an increase in average loan balances of $931.3 million .
Interest expense totaled $1.2 million for the fourth quarter of 2021, an increase of $101,000 , or 8.9% , from the previous quarter, primarily due to a $186.1 million increase in average interest-bearing deposits as deposit costs remained relatively flat. As compared to the fourth quarter of 2020, interest expense for the fourth quarter of 2021 decreased by $175,000 , or 12.4% , primarily due to a 28 basis points decrease in deposit costs.
The net interest margin for the fourth quarter of 2021 was 4.15% compared to 4.57% for the previous quarter, a decrease of 42 basis points. The yield on average interest-earning assets for the fourth quarter of 2021 decreased by 43 basis points to 4.32% from 4.75% for the previous quarter, while the cost of average interest-bearing liabilities for the fourth quarter of 2021 decreased by four basis points to 0.24% compared with the previous quarter. Average earning assets increased by $385.6 million from the previous quarter, primarily due to an increase in average loans of $212.2 million and a $157.0 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $410.5 million from the previous quarter as average interest-bearing deposits increased by $186.1 million and average borrowings increased by $224.4 million . The inclusion of PPP loan average balances, interest and fees had a six basis points impact on both the yield on average loans and the net interest margin for the fourth quarter of 2021.
As compared to the same period in 2020, the net interest margin for the fourth quarter of 2021 decreased by 31 basis points to 4.15% from 4.46% , primarily due to a 48 basis point decrease in the yield on average interest-earning assets of $2.83 billion and a 32 basis point decrease in the cost of average interest-bearing liabilities of $2.03 billion . Average earning assets for the fourth quarter of 2021 increased by $1.19 billion from the fourth quarter of 2020, primarily due to a $931.3 million increase in average loans and a $248.1 million increase in average interest-earning cash accounts. Average interest-bearing liabilities for the fourth quarter of 2021 increased by $1.04 billion from the fourth quarter of 2020, driven by an increase in average interest-bearing deposits of $658.5 million and an increase in average borrowings of $376.9 million .
Noninterest Income
Noninterest income for the fourth quarter of 2021 was $7.5 million , a decrease of $2.0 million , or 21.4% , from the third quarter of 2021, primarily due to lower mortgage loan fees, mortgage and Small Business Administration ("SBA") servicing income and gains on sale of SBA loans, partially offset by an increase in other income. Mortgage loan originations totaled $237.2 million during the fourth quarter of 2021 compared to $368.8 million during the third quarter of 2021. During the fourth quarter of 2021, we recorded a $676,000 fair value adjustment charge on our SBA servicing asset and a $460,000 fair value impairment recovery on our mortgage servicing asset. These servicing asset adjustments had a $0.01 per share impact on our diluted earnings per share for the quarter.
Compared to the same period in 2020, noninterest income for the fourth quarter of 2021 increased by $1.4 million , or 22.0% , primarily due to the increase in service charges on deposit accounts, mortgage servicing income and gains on sale of SBA loans, partially offset by a decrease in SBA servicing income.
Noninterest income for the year ended December 31, 2021 totaled $33.8 million , an increase of $6.6 million , or 24.2% , from the year ended December 31, 2020 , primarily due to higher mortgage loan fees and gains on sale of SBA loans, offset by decreases in mortgage and SBA serving income and gains on sale of mortgage loans. Mortgage loan originations totaled $1.20 billion during the year ended December 31, 2021 compared to $484.2 million during the year ended December 31, 2020 . There were no mortgage loan sales during the year ended December 31, 2021 compared to $92.7 million of mortgage loan sales during the year ended December 31, 2020 .
Noninterest Expense
Noninterest expense for the fourth quarter of 2021 totaled $12.5 million , a decrease of $599,000 , or 4.6% , from $13.1 million for the third quarter of 2021. This decrease was primarily attributable to lower salaries and employee benefits mainly due to a decrease in commissions earned as loan volume declined during the quarter. Compared to the fourth quarter of 2020, noninterest expense during the fourth quarter of 2021 increased by $1.4 million , or 13.0% , primarily due to higher salaries and employee benefits, loan related expenses and FDIC insurance premiums.
Noninterest expense for the year ended December 31, 2021 totaled $48.4 million , an increase of $7.3 million , or 17.8% , from $41.1 million for the year ended December 31, 2020 . This increase was primarily attributable to higher salaries and employee benefits due to increased commissions earned from higher loan volume, loan and other real estate owned related expenses and FDIC insurance premiums.
The Company's efficiency ratio was 33.7% for the fourth quarter of 2021 compared to 34.8% and 45.1% for the third quarter of 2021 and fourth quarter of 2020, respectively. For the year ended December 31, 2021 , the efficiency ratio was 35.1% compared with 44.0% for the same period in 2020.
Income Tax Expense
The Company's effective tax rate for the fourth quarter of 2021 was 27.5% , compared to 23.4% for the third quarter of 2021 and 24.6% for the fourth quarter of 2020. The effective tax rate for the year ended December 31, 2021 was 25.3% compared to 25.4% for the year ended December 31, 2020 .
Balance Sheet
Total Assets
Total assets were $3.11 billion at December 31, 2021 , an increase of $355.9 million , or 12.9% , from $2.75 billion at September 30, 2021 , and an increase of $1.21 billion , or 63.7% , from $1.90 billion at December 31, 2020 . The $355.9 million increase in total assets at December 31, 2021 compared to September 30, 2021 was primarily due to increases in loans of $143.4 million , cash and cash equivalents of $188.1 million , equity securities of $10.4 million and securities available for sale of $9.2 million . The $1.21 billion increase in total assets at December 31, 2021 compared to December 31, 2020 was primarily due to increases in loans of $874.7 million , cash and due from banks of $291.8 million and bank owned life insurance of $23.6 million , partially offset by a $5.2 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $6.8 million .
Loans
Loans held for investment were $2.51 billion at December 31, 2021 , an increase of $143.4 million , or 6.1% , compared to $2.36 billion at September 30, 2021 , and an increase of $874.7 million , or 53.7% , compared to $1.63 billion at December 31, 2020 . The increase in loans held for investment at December 31, 2021 compared to September 30, 2021 was primarily due to a $160.4 million increase in residential mortgages and a $17.1 million increase in commercial real estate loans, offset by a $25.3 million decrease in construction and development loans and a $9.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $31.0 million as of December 31, 2021 . There were no loans classified as held for sale at December 31, 2021 , September 30, 2021 or December 31, 2020 .
Deposits
Total deposits were $2.26 billion at December 31, 2021 , an increase of $151.2 million , or 7.2% , compared to total deposits of $2.11 billion at September 30, 2021 , and an increase of $783.1 million , or 52.9% , compared to total deposits of $1.48 billion at December 31, 2020 . The increase in total deposits at December 31, 2021 compared to September 30, 2021 was primarily due to a $181.4 million increase in money market accounts and a $46.9 million increase in interest-bearing demand deposits, offset by a $47.9 million decrease in noninterest-bearing demand deposits and $31.1 million decrease in time deposits.
Noninterest-bearing deposits were $592.4 million at December 31, 2021 , compared to $640.3 million at September 30, 2021 and $462.9 million at December 31, 2020 . Noninterest-bearing deposits constituted 26.2% of total deposits at December 31, 2021 , compared to 30.3% at September 30, 2021 and 31.3% at December 31, 2020 . Interest-bearing deposits were $1.67 billion at December 31, 2021 , compared to $1.47 billion at September 30, 2021 and $1.02 billion at December 31, 2020 . Interest-bearing deposits constituted 73.8% of total deposits at December 31, 2021 , compared to 69.7% at September 30, 2021 and 68.7% at December 31, 2020 .
Asset Quality
The Company recorded a provision for loan losses of $546,000 during the fourth quarter of 2021, compared to $2.6 million during the third quarter of 2021 and $956,000 during the fourth quarter of 2020. Annualized net charge-offs to average loans for the fourth quarter of 2021 was 0.01% , compared to 0.00% for the third quarter of 2021 and 0.04% for the fourth quarter of 2020. 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 $15.4 million , or 0.50% of total assets, at December 31, 2021 , an increase of $2.3 million from $13.1 million , or 0.47% of total assets, at September 30, 2021 , and a decrease of $1.5 million from $16.9 million , or 0.89% of total assets, at December 31, 2020 . The increase in nonperforming assets at December 31, 2021 compared to September 30, 2021 was primarily due to a $2.8 million increase in nonaccrual loans and a $342,000 increase in loans past due ninety days or more and still accruing, offset by a $756,000 decrease in other real estate owned.
Allowance for loan losses as a percentage of total loans was 0.67% at December 31, 2021 , compared to 0.69% at September 30, 2021 and 0.62% at December 31, 2020 . Excluding outstanding PPP loans of $31.0 million as of December 31, 2021 , $42.0 million as of September 30, 2021 and $92.4 million as of December 31, 2020 , the allowance for loan losses as a percentage of total loans was 0.68% at December 31, 2021 , 0.71% at September 30, 2021 and 0.66% at December 31, 2020 . Allowance for loan losses as a percentage of nonperforming loans was 143.69% at December 31, 2021 , compared to 189.44% and 77.40% at September 30, 2021 and December 31, 2020 , respectively.
COVID-19
As of December 31, 2021 , we had two non-SBA commercial customers with outstanding loan balances totaling $8.1 million that were under approved payment deferrals. This is consistent with the active payment deferrals as of September 30, 2021 that were granted to two non-SBA commercial customers with outstanding balances totaling $8.1 million . As of December 31, 2021 , we had four SBA loans with outstanding gross loan balances totaling $6.5 million ($1.6 million unguaranteed book balance) that were under approved payment deferrals. As of January 20, 2022 , the SBA had granted forgiveness on (1) PPP loans totaling $95.1 million , or 98.0% 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 $34.9 million , or 56.3% 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 and related variants on our business and financial results and conditions, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: general business and economic conditions, particularly those affecting the financial services; the impact of the ongoing COVID-19 pandemic and related variants on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the ongoing COVID-19 pandemic and related variants; 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 and related variants; 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 and related variants. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov . In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.
Contacts
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)
2021
2021
2021
2021
2020
2021
2020
Selected income statement data:
Interest income
$
30,857
$
29,324
$
25,888
$
22,672
$
19,839
$
108,741
$
77,609
Interest expense
1,236
1,135
1,063
1,138
1,411
4,572
11,489
Net interest income
29,621
28,189
24,825
21,534
18,428
104,169
66,120
Provision for loan losses
546
2,579
2,205
1,599
956
6,929
3,467
Noninterest income
7,491
9,532
8,594
8,186
6,138
33,803
27,211
Noninterest expense
12,512
13,111
12,093
10,708
11,077
48,424
41,100
Income tax expense
6,609
5,149
4,728
4,432
3,079
20,918
12,370
Net income
17,445
16,882
14,393
12,981
9,454
61,701
36,394
Per share data:
Basic income per share
$
0.69
$
0.66
$
0.56
$
0.51
$
0.37
$
2.41
$
1.42
Diluted income per share
$
0.68
$
0.66
$
0.56
$
0.50
$
0.37
$
2.39
$
1.41
Dividends per share
$
0.14
$
0.12
$
0.10
$
0.10
$
0.09
$
0.46
$
0.40
Book value per share (at period end)
$
11.40
$
10.84
$
10.33
$
9.95
$
9.54
$
11.40
$
9.54
Shares of common stock outstanding
25,465,236
25,465,236
25,578,668
25,674,573
25,674,573
25,465,236
25,674,573
Weighted average diluted shares
25,720,128
25,729,043
25,833,328
25,881,827
25,870,885
25,788,781
25,798,549
Performance ratios:
Return on average assets
2.33
%
2.61
%
2.53
%
2.62
%
2.14
%
2.51
%
2.17
%
Return on average equity
24.80
25.23
22.51
21.35
15.78
23.55
16.02
Dividend payout ratio
20.52
18.24
17.95
19.91
24.60
19.17
28.32
Yield on total loans
4.93
5.16
5.21
5.20
5.14
5.11
5.47
Yield on average earning assets
4.32
4.75
4.79
4.85
4.80
4.65
4.91
Cost of average interest bearing liabilities
0.24
0.28
0.31
0.38
0.56
0.29
1.15
Cost of deposits
0.27
0.28
0.29
0.36
0.55
0.29
1.20
Net interest margin
4.15
4.57
4.60
4.60
4.46
4.45
4.18
Efficiency ratio(1)
33.71
34.76
36.19
36.03
45.09
35.10
44.04
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment
0.01
%
0.00
%
0.02
%
0.00
%
0.04
%
0.01
%
0.01
%
Nonperforming assets to gross loans and OREO
0.61
0.55
0.67
0.84
1.03
0.61
1.03
ALL to nonperforming loans
143.69
189.44
147.82
98.33
77.40
143.69
77.40
ALL to loans held for investment
0.67
0.69
0.66
0.63
0.62
0.67
0.62
Balance sheet and capital ratios:
Gross loans held for investment to deposits
110.98
%
112.15
%
106.31
%
107.33
%
110.48
%
110.98
%
110.48
%
Noninterest bearing deposits to deposits
26.18
30.32
31.30
31.28
31.28
26.18
31.28
Common equity to assets
9.34
10.04
10.50
11.85
12.90
9.34
12.90
Leverage ratio
9.44
10.34
11.14
12.23
13.44
9.44
13.44
Common equity tier 1 ratio
16.72
16.61
17.75
18.97
20.00
16.72
20.00
Tier 1 risk-based capital ratio
16.72
16.61
17.75
18.97
20.00
16.72
20.00
Total risk-based capital ratio
17.73
17.64
18.72
19.88
20.86
17.73
20.86
Mortgage and SBA loan data:
Mortgage loans serviced for others
$
608,208
$
669,358
$
746,660
$
856,432
$
961,670
$
608,208
$
961,670
Mortgage loan production
237,195
368,790
326,507
263,698
194,951
1,196,190
484,214
Mortgage loan sales
—
—
—
—
—
—
92,737
SBA loans serviced for others
542,991
549,818
549,238
521,182
507,442
542,991
507,442
SBA loan production
52,727
85,265
67,376
80,466
34,631
285,834
245,719
SBA loan sales
30,169
37,984
34,158
22,399
25,505
124,710
128,633
(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)
2021
2021
2021
2021
2020
ASSETS
Cash and due from banks
$
432,523
$
250,995
$
309,289
$
169,775
$
140,744
Federal funds sold
8,818
2,294
4,644
4,444
9,944
Cash and cash equivalents
441,341
253,289
313,933
174,219
150,688
Equity securities
11,386
993
—
—
—
Securities available for sale (at fair value)
25,733
16,507
16,722
18,739
18,117
Loans
2,505,070
2,361,705
2,091,767
1,866,785
1,630,344
Allowance for loan losses
(16,952)
(16,445)
(13,860)
(11,735)
(10,135)
Loans less allowance for loan losses
2,488,118
2,345,260
2,077,907
1,855,050
1,620,209
Loans held for sale
—
—
—
—
—
Accrued interest receivable
11,052
10,737
10,668
10,515
10,671
Federal Home Loan Bank stock
19,701
12,201
8,451
3,951
6,147
Premises and equipment, net
13,068
13,302
13,557
13,663
13,854
Operating lease right-of-use asset
9,338
9,672
10,078
10,483
10,348
Foreclosed real estate, net
3,618
4,374
4,656
3,844
3,844
SBA servicing asset, net
10,234
10,916
11,155
10,535
9,643
Mortgage servicing asset, net
7,747
8,593
9,529
11,722
12,991
Bank owned life insurance
59,437
59,061
36,263
36,033
35,806
Other assets
5,385
5,323
4,921
5,606
5,171
Total assets
$
3,106,158
$
2,750,228
$
2,517,840
$
2,154,360
$
1,897,489
LIABILITIES
Noninterest-bearing deposits
$
592,444
$
640,312
$
618,054
$
546,164
$
462,909
Interest-bearing deposits
1,670,576
1,471,515
1,356,777
1,199,756
1,016,980
Total deposits
2,263,020
2,111,827
1,974,831
1,745,920
1,479,889
Federal Home Loan Bank advances
500,000
300,000
200,000
80,000
110,000
Other borrowings
459
468
474
479
483
Operating lease liability
9,861
10,241
10,648
11,048
10,910
Accrued interest payable
204
208
202
206
222
Other liabilities
42,391
51,330
67,431
61,332
51,154
Total liabilities
$
2,815,935
$
2,474,074
$
2,253,586
$
1,898,985
$
1,652,658
SHAREHOLDERS' EQUITY
Preferred stock
—
—
—
—
—
Common stock
255
255
256
257
257
Additional paid-in capital
51,559
51,181
52,924
55,977
55,674
Retained earnings
238,577
224,711
210,910
199,102
188,705
Accumulated other comprehensive income (loss)
(168)
7
164
39
195
Total shareholders' equity
290,223
276,154
264,254
255,375
244,831
Total liabilities and shareholders' equity
$
3,106,158
$
2,750,228
$
2,517,840
$
2,154,360
$
1,897,489
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)
2021
2021
2021
2021
2020
2021
2020
Interest and dividend income:
Loans, including Fees
$
30,496
$
29,127
$
25,728
$
22,500
$
19,658
$
107,851
$
75,872
Other investment income
360
196
159
170
164
885
1,429
Federal funds sold
1
1
1
2
17
5
308
Total interest income
30,857
29,324
25,888
22,672
19,839
108,741
77,609
Interest expense:
Deposits
1,069
968
919
992
1,262
3,948
10,918
FHLB advances and other borrowings
167
167
144
146
149
624
571
Total interest expense
1,236
1,135
1,063
1,138
1,411
4,572
11,489
Net interest income
29,621
28,189
24,825
21,534
18,428
104,169
66,120
Provision for loan losses
546
2,579
2,205
1,599
956
6,929
3,467
Net interest income after provision for loan losses
29,075
25,610
22,620
19,935
17,472
97,240
62,653
Noninterest income:
Service charges on deposit accounts
466
446
411
373
350
1,696
1,312
Other service charges, commissions and fees
3,015
4,147
3,877
3,398
3,223
14,437
8,545
Gain on sale of residential mortgage loans
—
—
—
—
—
—
2,529
Mortgage servicing income, net
95
132
(957)
166
(82)
(564)
1,308
Gain on sale of SBA loans
2,895
3,358
2,845
1,854
1,625
10,952
6,467
SBA servicing income, net
634
1,212
1,905
2,133
724
5,884
6,130
Other income
386
237
513
262
298
1,398
920
Total noninterest income
7,491
9,532
8,594
8,186
6,138
33,803
27,211
Noninterest expense:
Salaries and employee benefits
7,819
8,679
6,915
6,699
6,822
30,112
25,500
Occupancy
1,206
1,295
1,252
1,275
1,293
5,028
5,083
Data Processing
252
257
283
308
313
1,100
1,078
Advertising
148
131
117
145
138
541
566
Other expenses
3,087
2,749
3,526
2,281
2,511
11,643
8,873
Total noninterest expense
12,512
13,111
12,093
10,708
11,077
48,424
41,100
Income before provision for income taxes
24,054
22,031
19,121
17,413
12,533
82,619
48,764
Provision for income taxes
6,609
5,149
4,728
4,432
3,079
20,918
12,370
Net income available to common shareholders
$
17,445
$
16,882
$
14,393
$
12,981
$
9,454
$
61,701
$
36,394
METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES
Three Months Ended
December 31, 2021
September 30, 2021
December 31, 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)
$
345,311
$
241
0.28
%
$
188,296
$
111
0.23
%
$
97,228
$
70
0.29
%
Securities purchased under agreements to resell
—
—
—
—
—
—
7,826
13
0.66
Investment securities
33,682
120
1.41
17,244
86
1.98
17,983
98
2.17
Total investments
378,993
361
0.38
205,540
197
0.38
123,037
181
0.59
Construction and development
50,142
639
5.06
53,871
727
5.35
34,145
453
5.28
Commercial real estate
524,770
7,680
5.81
507,039
7,648
5.98
488,746
6,779
5.52
Commercial and industrial
77,911
1,353
6.89
102,813
2,576
9.94
138,021
1,376
3.97
Residential real estate
1,800,390
20,804
4.58
1,577,276
18,144
4.56
860,977
11,018
5.09
Consumer and other
189
20
41.98
208
32
61.04
261
32
48.78
Gross loans(2)
2,453,402
30,496
4.93
2,241,207
29,127
5.16
1,522,150
19,658
5.14
Total earning assets
2,832,395
30,857
4.32
2,446,747
29,324
4.75
1,645,187
19,839
4.80
Noninterest-earning assets
140,594
123,888
111,078
Total assets
2,972,989
2,570,635
1,756,265
Interest-bearing liabilities:
NOW and savings deposits
136,102
64
0.19
115,775
59
0.20
78,697
41
0.21
Money market deposits
949,148
550
0.23
757,654
432
0.23
346,193
328
0.38
Time deposits
480,303
455
0.38
506,049
477
0.37
482,162
893
0.74
Total interest-bearing deposits
1,565,553
1,069
0.27
1,379,478
968
0.28
907,052
1,262
0.55
Borrowings
465,141
167
0.14
240,704
167
0.28
88,208
149
0.67
Total interest-bearing liabilities
2,030,694
1,236
0.24
1,620,182
1,135
0.28
995,260
1,411
0.56
Noninterest-bearing liabilities:
Noninterest-bearing deposits
592,300
600,388
453,984
Other noninterest-bearing liabilities
70,915
84,568
68,702
Total noninterest-bearing liabilities
663,215
684,956
522,686
Shareholders' equity
279,080
265,497
238,319
Total liabilities and shareholders' equity
$
2,972,989
$
2,570,635
$
1,756,265
Net interest income
$
29,621
$
28,189
$
18,428
Net interest spread
4.08
4.47
4.24
Net interest margin
4.15
4.57
4.46
(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
Year Ended
December 31, 2021
December 31, 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)
$
207,771
$
500
0.24
%
$
147,431
$
1,056
0.72
%
Securities purchased under agreements to resell
—
—
—
29,932
271
0.91
Investment securities
21,573
390
1.81
17,806
410
2.30
Total investments
229,344
890
0.39
195,169
1,737
0.89
Construction and development
48,076
2,513
5.23
31,658
1,685
5.32
Commercial real estate
503,968
29,750
5.90
478,481
27,316
5.71
Commercial and industrial
119,640
8,407
7.03
112,313
5,301
4.72
Residential real estate
1,437,377
67,058
4.67
763,136
41,391
5.42
Consumer and other
188
123
65.43
989
179
18.10
Gross loans(2)
2,109,249
107,851
5.11
1,386,577
75,872
5.47
Total earning assets
2,338,593
108,741
4.65
1,581,746
77,609
4.91
Noninterest-earning assets
122,038
98,504
Total assets
2,460,631
1,680,250
Interest-bearing liabilities:
NOW and savings deposits
112,943
222
0.20
68,610
166
0.24
Money market deposits
726,268
1,693
0.23
248,633
1,731
0.70
Time deposits
499,856
2,033
0.41
596,325
9,021
1.51
Total interest-bearing deposits
1,339,067
3,948
0.29
913,568
10,918
1.20
Borrowings
223,027
624
0.28
82,955
571
0.69
Total interest-bearing liabilities
1,562,094
4,572
0.29
996,523
11,489
1.15
Noninterest-bearing liabilities:
Noninterest-bearing deposits
559,797
394,338
Other noninterest-bearing liabilities
76,727
62,153
Total noninterest-bearing liabilities
636,524
456,491
Shareholders' equity
262,013
227,236
Total liabilities and shareholders' equity
$
2,460,631
$
1,680,250
Net interest income
$
104,169
$
66,120
Net interest spread
4.36
3.76
Net interest margin
4.45
4.18
(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
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
December 31, 2020
% of
% of
% of
% of
% of
(Dollars in thousands)
Amount
Total
Amount
Total
Amount
Total
Amount
Total
Amount
Total
Construction and Development
$
38,857
1.6
%
$
64,140
2.7
%
$
58,668
2.8
%
$
52,202
2.8
%
$
45,653
2.8
%
Commercial Real Estate
520,488
20.7
503,417
21.2
475,658
22.7
473,281
25.3
477,419
29.2
Commercial and Industrial
73,072
2.9
82,099
3.5
134,076
6.4
166,915
8.9
137,239
8.4
Residential Real Estate
1,879,012
74.8
1,718,593
72.6
1,430,843
68.1
1,181,385
63.0
974,445
59.6
Consumer and other
79
—
238
—
169
—
169
—
183
—
Gross loans
$
2,511,508
100.0
%
$
2,368,487
100.0
%
$
2,099,414
100.0
%
$
1,873,952
100.0
%
$
1,634,939
100.0
%
Unearned income
(6,438)
(6,782)
(7,647)
(7,167)
(4,595)
Allowance for loan losses
(16,952)
(16,445)
(13,860)
(11,735)
(10,135)
Net loans
$
2,488,118
$
2,345,260
$
2,077,907
$
1,855,050
$
1,620,209
METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS
As of the Quarter Ended
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in thousands)
2021
2021
2021
2021
2020
Nonaccrual loans
$
8,759
$
5,955
$
6,623
$
9,071
$
10,203
Past due loans 90 days or more and still accruing
342
—
—
—
—
Accruing troubled debt restructured loans
2,697
2,726
2,753
2,863
2,891
Total non-performing loans
11,798
8,681
9,376
11,934
13,094
Other real estate owned
3,618
4,374
4,656
3,844
3,844
Total non-performing assets
$
15,416
$
13,055
$
14,032
$
15,778
$
16,938
Nonperforming loans to gross loans
0.47
%
0.37
%
0.45
%
0.64
%
0.80
%
Nonperforming assets to total assets
0.50
0.47
0.56
0.73
0.89
Allowance for loan losses to non-performing loans
143.69
189.44
147.82
98.33
77.40
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)
2021
2021
2021
2021
2020
2021
2020
Balance, beginning of period
$
16,445
$
13,860
$
11,735
$
10,135
$
9,339
$
10,135
$
6,839
Net charge-offs/(recoveries):
Construction and development
—
—
—
—
—
—
—
Commercial real estate
39
(4)
23
(3)
107
55
99
Commercial and industrial
—
—
60
4
51
64
26
Residential real estate
—
—
—
—
—
—
—
Consumer and other
—
(2)
(3)
(2)
2
(7)
46
Total net charge-offs/(recoveries)
39
(6)
80
(1)
160
112
171
Provision for loan losses
546
2,579
2,205
1,599
956
6,929
3,467
Balance, end of period
$
16,952
$
16,445
$
13,860
$
11,735
$
10,135
$
16,952
$
10,135
Total loans at end of period
$
2,511,508
$
2,368,487
$
2,099,414
$
1,873,952
$
1,634,939
$
2,511,508
$
1,634,939
Average loans(1)
$
2,453,402
$
2,241,207
$
1,979,556
$
1,753,691
$
1,522,150
$
2,109,249
$
1,365,129
Net charge-offs to average loans
0.01
%
0.00
%
0.02
%
0.00
%
0.04
%
0.01
%
0.01
%
Allowance for loan losses to total loans
0.67
0.69
0.66
0.63
0.62
0.67
0.62
(1)
Excludes loans held for sale
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SOURCE MetroCity Bankshares, Inc.