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Metrocity Bankshares Inc

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2025

ATLANTA , April 18, 2025 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.3 million, or $0.63 per diluted share, for the first quarter of 2025, compared to $16.2 million, or $0.63 per diluted share, for the fourth quarter of 2024, and $14.6 million, or $0.57 per diluted share, for the first quarter of 2024.

First Quarter 2025 Highlights:

  • Annualized return on average assets was 1.85%, compared to 1.82% for the fourth quarter of 2024 and 1.65% for the first quarter of 2024.
  • Annualized return on average equity was 15.67%, compared to 15.84% for the fourth quarter of 2024 and 15.41% for the first quarter of 2024. Excluding average accumulated other comprehensive income, our return on average equity was 16.18% for the first quarter of 2025, compared to 16.28% for the fourth quarter of 2024 and 16.27% for the first quarter of 2024.
  • Efficiency ratio of 38.3%, compared to 40.5% for the fourth quarter of 2024 and 37.9% for the first quarter of 2024.
  • Net interest margin was 3.67%, compared to 3.57% for the fourth quarter of 2024 and 3.24% for the first quarter of 2024.
  • Commercial real estate loans increased by $30.1 million, or 4.0%, to $792.1 million from the previous quarter.

Acquisition of First IC Corporation and First IC Bank

On March 16, 2025, MetroCity and First IC Corporation ("First IC"), the parent company of First IC Bank,  announced the signing of a definitive merger agreement for MetroCity to acquire First IC in a cash and stock transaction. Under the terms of the merger agreement, which was unanimously approved by the Boards of Directors of both companies, First IC shareholders will receive 3,384,588 shares of MetroCity common stock and $111,965,213 in cash, subject to certain adjustments. The merger is expected to close in the fourth quarter of 2025, subject to satisfaction of customer closing conditions, including the receipt of required regulatory approvals and approval by the shareholders of First IC.

First IC had approximately $1.2 billion in total assets, $977 million in total deposits, and $1.0 billion in total loans as of March 31, 2025. The pro forma company is projected to have approximately $4.8 billion in total assets, $3.7 billion in total deposits and $4.1 billion in total loans. Together, the combined company is expected to have significant strategic positioning with the scale to compete and prioritize investments in technology and growth.

Results of Operations

Net Income

Net income was $16.3 million for the first quarter of 2025, an increase of $62,000, or 0.4%, from $16.2 million for the fourth quarter of 2024. This increase was primarily due to a decrease in noninterest expense of $527,000, an increase in net interest income of $494,000, an increase in noninterest income of $135,000 and a decrease in provision for credit losses of $67,000, offset by an increase in income tax expense of $1.2 million Net income increased by $1.7 million, or 11.4%, in the first quarter of 2025 compared to net income of $14.6 million for the first quarter of 2024. This increase was due to an increase in net interest income of $3.5 million and a decrease in income tax expense of $22,000, offset by an increase in noninterest expense of $1.4 million, an increase in provision for credit losses of $275,000 and a decrease in noninterest income of $112,000.

Net Interest Income and Net Interest Margin

Interest income totaled $52.5 million for the first quarter of 2025, a decrease of $95,000, or 0.2%, from the previous quarter, primarily due to a $20.3 million decrease in the average total investments balance and a 90 basis points decrease in the total investments yield, offset by a 9 basis points increase in the loan yield and a $47.0 million increase in average loan balances. As compared to the first quarter of 2024, interest income for the first quarter of 2025 increased by $161,000, or 0.3%, primarily due to a 6 basis points increase in the loan yield coupled with a $2.6 million increase in average loan balances and a $15.0 million increase in average total investment balances, offset by a 71 basis points decrease in the total investments yield.

Interest expense totaled $22.0 million for the first quarter of 2025, a decrease of $589,000, or 2.6%, from the previous quarter, primarily due to a 19 basis points decrease in time deposit costs coupled with a $18.4 million decrease in the average time deposits. As compared to the first quarter of 2024, interest expense for the first quarter of 2025 decreased by $3.3 million, or 13.1%, primarily due to a 61 basis points decrease in deposit costs coupled with a $67.0 million decrease in average deposit balances, offset by a 44 basis points increase in borrowing costs and a $46.2 million increase in the average borrowing balance. The Company currently has interest rate derivative agreements totaling $950.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 4.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the first quarter of 2025, we recorded a credit to interest expense of $4.3 million from the benefit received on these interest rate derivatives compared to a benefit of $5.1 million and $4.1 million recorded during the fourth quarter of 2024 and the first quarter of 2024, respectively.

The net interest margin for the first quarter of 2025 was 3.67% compared to 3.57% for the previous quarter, an increase of ten basis points. The yield on average interest-earning assets for the first quarter of 2025 increased by six basis points to 6.31% from 6.25% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2025 decreased by seven basis points to 3.48% from 3.55% for the previous quarter. Average earning assets increased by $26.6 million from the previous quarter, due to an increase in average loan balances of $47.0 million, offset by a decrease of $20.3 million in average total investments. Average interest-bearing liabilities increased by $35.9 million from the previous quarter as average interest-bearing deposits increased by $20.9 million and average borrowings increased by $15.0 million.

As compared to the same period in 2024, the net interest margin for the first quarter of 2025 increased by 43 basis points to 3.67% from 3.24%, primarily due to a four basis points increase in the yield on average interest-earning assets of $3.38 billion and a 46 basis points decrease in the cost of average interest-bearing liabilities of $2.56 billion. Average earning assets for the first quarter of 2025 increased by $17.6 million from the first quarter of 2024, due to a $15.0 million increase in average total investments and a $2.6 million increase in average loans. Average interest-bearing liabilities for the first quarter of 2025 decreased by $20.8 million from the first quarter of 2024, driven by the decrease in average interest-bearing deposits of $67.0 million, offset by a $46.2 increase in average borrowings.  

Noninterest Income

Noninterest income for the first quarter of 2025 was $5.5 million, an increase of $135,000, or 2.5%, from the fourth quarter of 2024, primarily due to higher gains on sale from our residential mortgage loans and other income from unrealized gains recognized by our equity securities, offset by lower gains on sale and servicing income from our Small Business Administration ("SBA") loans, lower servicing income from our  residential mortgage loans and lower mortgage loan fees from lower volume. SBA loan sales totaled $16.6 million (sales premium of 5.97%) during the first quarter of 2025 compared to $19.2 million (sales premium of 6.25%) during the fourth quarter of 2024. Mortgage loan originations totaled $91.1 million during the first quarter 2025 compared to $103.3 million during the fourth quarter of 2024. Mortgage loan sales totaled $40.1 million (average sales premium of 1.06%) during the first quarter of 2025. No mortgage loans were sold during the fourth quarter of 2024. During the first quarter of 2025, we recorded a $104,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment charge of $31,000 during the fourth quarter of 2024. We also recorded a $42,000 fair value impairment charge on our mortgage servicing asset during the first quarter of 2025 compared to a $232,000 fair value impairment recovery recorded during the fourth quarter of 2024.

Compared to the first quarter of 2024, noninterest income for the first quarter of 2025 decreased by $112,000, or 2.0%, primarily due to lower gains on sale and servicing income from our SBA loans, offset by increases in gains on sale and servicing income from our residential mortgage loans, as well as higher other income from unrealized gains recognized on our equity securities and an increased bank owned life insurance income. During the first quarter of 2024, we recorded a $360,000 fair value gain on our SBA servicing asset.

Noninterest Expense

Noninterest expense for the first quarter of 2025 totaled $13.8 million, a decrease of $527,000, or 3.7%, from $14.3 million for the fourth quarter of 2024. This decrease was primarily attributable to the decrease in salaries and employee benefits which included lower 401k match, FICA taxes and stock-based compensation expenses, partially offset by higher legal fees and security expense. Included in other noninterest expenses during the first quarter of 2025 were $262,000 of merger-related due diligence expenses.

Compared to the first quarter of 2024, noninterest expense during the first quarter of 2025 increased by $1.4 million, or 11.6%, primarily due to higher salary and employee benefits, occupancy expense, data processing expense, security expense and merger-related expenses, offset by lower FDIC insurance premiums and professional fees.

The Company's efficiency ratio was 38.3% for the first quarter of 2025 compared to 40.5% and 37.9% for the fourth quarter of 2024 and first quarter of 2024, respectively.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2025 was 26.2%, compared to 22.1% for the fourth quarter of 2024 and 28.4% for the first quarter of 2024. The effective tax rate was much lower during the fourth quarter of 2024 due to a tax provision to tax return adjustment recorded for our 2023 state tax returns filed during the fourth quarter of 2024.

Balance Sheet

Total Assets

Total assets were $3.66 billion at March 31, 2025, an increase of $65.9 million, or 1.8%, from $3.59 billion at December 31, 2024, and an increase of $12.5 million, or 0.3%, from $3.65 billion at March 31, 2024. The $65.9 million increase in total assets at March 31, 2025 compared to December 31, 2024 was primarily due to increases in cash and due from banks of $36.0 million, loans held for sale of $35.7 million, other assets of $14.9 million and equity securities of $8.1 million, partially offset by decreases in loans held for investment of $26.6 million and interest rate derivatives of $4.6 million. The $12.5 million increase in total assets at March 31, 2025 compared to March 31, 2024 was primarily due to increases in cash and due from banks of $18.0 million, other assets of $17.3 million, loans held for investment of $15.5 million, federal funds sold of $8.2 million, equity securities of $8.2 million, Federal Home Loan Bank stock of $3.6 million and bank owned life insurance of $2.4 million, partially offset by decreases in loans held for sale of $36.9 million and interest rate derivatives of $21.5 million.   

Our investment securities portfolio made up only 0.93% of our total assets at March 31, 2025 compared to 0.77% and 0.78% at December 31, 2024 and March 31, 2024, respectively.

Loans

Loans held for investment were $3.13 billion at March 31, 2025, a decrease of $26.6 million, or 0.8%, compared to $3.16 billion at December 31, 2024, and an increase of $15.5 million, or 0.5%, compared to $3.12 billion at March 31, 2024. The decrease in loans at March 31, 2025 compared to December 31, 2024 was due to a $56.4 million decrease in residential mortgage loans and a $6.7 million decrease in commercial and industrial loans, offset by a $30.1 million increase in commercial real estate loans and a $6.8 million increase in construction and development loans. Loans classified as held for sale totaled $35.7 million and $72.6 million at March 31, 2025 and March 31, 2024, respectively. There were no loans classified as held for sale at December 31, 2024.

Deposits

Total deposits were $2.74 billion at March 31, 2025, an increase of $232,000 compared to total deposits of $2.74 billion at December 31, 2024, and a decrease of $76.8 million, or 2.7%, compared to total deposits of $2.81 billion at March 31, 2024. The increase in total deposits at March 31, 2025 compared to December 31, 2024 was due to a $44.5 million increase in money market accounts and a $3.7 million increase in noninterest-bearing demand deposits, offset by a $36.2 million decrease in time deposits, a $11.6 million decrease in interest-bearing demand deposits and a $238,000 decrease in savings accounts.

Noninterest-bearing deposits were $540.0 million at March 31, 2025, compared to $536.3 million at December 31, 2024 and $546.8 million at March 31, 2024. Noninterest-bearing deposits constituted 19.7% of total deposits at March 31, 2025, compared to 19.6% at December 31, 2024 and 19.4% at March 31, 2024. Interest-bearing deposits were $2.20 billion at March 31, 2025, compared to $2.20 billion at December 31, 2024 and $2.27 billion at March 31, 2024. Interest-bearing deposits constituted 80.3% of total deposits at March 31, 2025, compared to 80.4% at December 31, 2024 and 80.6% at March 31, 2024.

Uninsured deposits were 24.3% of total deposits at March 31, 2025, compared to 24.1% and 23.0% at December 31, 2024 and March 31, 2024, respectively. As of March 31, 2025, we had $1.26 billion of available borrowing capacity at the Federal Home Loan Bank ($648.6 million), Federal Reserve Discount Window ($561.0 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a provision for credit losses of $135,000 during the first quarter of 2025, compared to provision for credit losses of $202,000 during the fourth quarter of 2024 and a credit provision for credit losses of $140,000 during the first quarter of 2024. The provision expense recorded during the first quarter of 2025 was primarily due to the increase in general reserves allocated to our commercial real estate loans, partially offset by the decrease in reserves allocated to our residential real estate loan portfolio and individually analyzed loans. Annualized net charge-offs to average loans for the first quarter of 2025 was 0.02%, compared to net charge-offs of 0.01% for the fourth quarter of 2024 and 0.00% for the first quarter of 2024.

Nonperforming assets totaled $18.5 million, or 0.51% of total assets, at March 31, 2025, an increase of $93,000 from $18.4 million, or 0.51% of total assets, at December 31, 2024, and an increase of $3.8 million from $14.7 million, or 0.40% of total assets, at March 31, 2024. The increase in nonperforming assets at March 31, 2025 compared to December 31, 2024 was due to a $1.3 million increase in other real estate owned offset by a $1.2 million decrease in nonaccrual loans.  

Allowance for credit losses as a percentage of total loans was 0.59% at March 31, 2025, compared to 0.59% at December 31, 2024 and 0.58% at March 31, 2024. Allowance for credit losses as a percentage of nonperforming loans was 110.52% at March 31, 2025, compared to 104.08% and 135.23% at December 31, 2024 and March 31, 2024, respectively.

About MetroCity Bankshares, Inc.

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

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, increasing insurance costs, elevated interest rates, including the impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers' businesses; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposits, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate, which could have an adverse effect on the Company's profitability; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; risks associated with the proposed merger of First IC with the Company (the "Proposed Merger"), including (a) the risk that the cost savings and any revenue synergies from the Proposed Merger is less than or different from expectations, (b) disruption from the Proposed Merger with customer, supplier, or employee relationships, (c) the occurrence of any event, change, or other circumstances that could give rise to the termination of the Agreement and Plan of Merger by and between the Company and First IC, (d) the failure to obtain necessary regulatory approvals for the Proposed Merger, (e) the failure to obtain the approval of First IC's shareholders in connection with the Proposed Merger, (f) the possibility that the costs, fees, expenses and charges related to the Proposed Merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (g) the failure of the conditions to the Proposed Merger to be satisfied, (h) the risks related to the integration of the combined businesses, including the risk that the integration will be materially delayed or will be more costly or difficult than expected, (i) the diversion of management time on merger-related issues, (j) the ability of the Company to effectively manage the larger and more complex operations of the combined company following the Proposed Merger, (k) the risks associated with the Company's pursuit of future acquisitions, (l) the risk of expansion into new geographic or product markets, (m) reputational risk and the reaction of the parties' customers to the Proposed Merger, (n) the Company's ability to successfully execute its various business strategies, including its ability to execute on potential acquisition opportunities, (o) the risk of potential litigation or regulatory action related to the Proposed Merger, and (p) general competitive, economic, political, and market conditions; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and the surrounding region; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts




Farid Tan

Lucas Stewart

President

Chief Financial Officer

770-455-4978

678-580-6414

faridtan@metrocitybank.bank

lucasstewart@metrocitybank.bank

 

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA




















As of and for the Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands, except per share data)


2025


2024


2024


2024


2024


Selected income statement data: 

















Interest income


$

52,519


$

52,614


$

53,833


$

54,108


$

52,358


Interest expense



21,965



22,554



23,544



23,396



25,273


Net interest income



30,554



30,060



30,289



30,712



27,085


Provision for credit losses



135



202



582



(128)



(140)


Noninterest income



5,456



5,321



6,615



5,559



5,568


Noninterest expense



13,799



14,326



13,660



13,032



12,361


Income tax expense



5,779



4,618



5,961



6,430



5,801


Net income



16,297



16,235



16,701



16,937



14,631


Per share data:

















Basic income per share


$

0.64


$

0.64


$

0.66


$

0.67


$

0.58


Diluted income per share


$

0.63


$

0.63


$

0.65


$

0.66


$

0.57


Dividends per share


$

0.23


$

0.23


$

0.20


$

0.20


$

0.20


Book value per share (at period end)


$

16.85


$

16.59


$

16.07


$

16.08


$

15.73


Shares of common stock outstanding



25,402,782



25,402,782



25,331,916



25,331,916



25,205,506


Weighted average diluted shares



25,707,989



25,659,483



25,674,858



25,568,333



25,548,089


Performance ratios:

















Return on average assets



1.85

%


1.82

%


1.86

%


1.89

%


1.65

%

Return on average equity



15.67



15.84



16.26



17.10



15.41


Dividend payout ratio



36.14



36.18



30.58



30.03



34.77


Yield on total loans



6.40



6.31



6.43



6.46



6.34


Yield on average earning assets



6.31



6.25



6.36



6.45



6.27


Cost of average interest bearing liabilities



3.48



3.55



3.69



3.68



3.94


Cost of deposits



3.36



3.45



3.61



3.63



3.97


Net interest margin



3.67



3.57



3.58



3.66



3.24


Efficiency ratio(1)



38.32



40.49



37.01



35.93



37.86


Asset quality data (at period end): 

















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



0.02

%


0.01

%


0.00

%


(0.01)

%


(0.00)

%

Nonperforming assets to gross loans held for investment and OREO



0.59



0.58



0.51



0.47



0.47


ACL to nonperforming loans



110.52



104.08



129.85



138.11



135.23


ACL to loans held for investment



0.59



0.59



0.60



0.58



0.58


Balance sheet and capital ratios:

















Gross loans held for investment to deposits



114.68

%


115.66

%


113.67

%


112.85

%


111.03

%

Noninterest bearing deposits to deposits



19.73



19.60



20.29



20.54



19.43


Investment securities to assets



0.93



0.77



0.81



0.78



0.78


Common equity to assets



11.69



11.72



11.41



11.26



10.87


Leverage ratio



11.76



11.57



11.12



10.75



10.27


Common equity tier 1 ratio



19.23



19.17



19.08



18.25



16.96


Tier 1 risk-based capital ratio



19.23



19.17



19.08



18.25



16.96


Total risk-based capital ratio



20.09



20.05



19.98



19.12



17.81


Mortgage and SBA loan data: 

















Mortgage loans serviced for others


$

537,590


$

527,039


$

556,442


$

529,823


$

443,905


Mortgage loan production



91,122



103,250



122,355



94,056



94,016


Mortgage loan sales



40,051



—



54,193



111,424



21,873


SBA/USDA loans serviced for others



474,143



479,669



487,359



486,051



516,425


SBA loan production



20,412



35,730



35,839



8,297



10,949


SBA loan sales



16,579



19,236



28,858



—



24,065


_____________________________________________

(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



March 31, 


December 31, 


September 30, 


June 30, 


March 31, 

(Dollars in thousands)


2025


2024


2024


2024


2024

ASSETS
















Cash and due from banks


$

272,317


$

236,338


$

278,752


$

325,026


$

254,331

Federal funds sold



12,738



13,537



12,462



2,833



4,505

Cash and cash equivalents



285,055



249,875



291,214



327,859



258,836

Equity securities



18,440



10,300



10,568



10,276



10,288

Securities available for sale (at fair value)



15,426



17,391



18,206



17,825



18,057

Loans held for investment



3,131,325



3,157,935



3,087,826



3,090,498



3,115,871

Allowance for credit losses



(18,592)



(18,744)



(18,589)



(17,960)



(17,982)

Loans less allowance for credit losses



3,112,733



3,139,191



3,069,237



3,072,538



3,097,889

Loans held for sale



35,742



—



4,598



—



72,610

Accrued interest receivable



16,498



15,858



15,667



15,286



15,686

Federal Home Loan Bank stock



22,693



20,251



20,251



20,251



19,063

Premises and equipment, net



18,045



18,276



18,158



18,160



18,081

Operating lease right-of-use asset



7,906



7,850



7,171



7,599



8,030

Foreclosed real estate, net



1,707



427



1,515



1,452



1,452

SBA servicing asset, net



7,167



7,274



7,309



7,108



7,611

Mortgage servicing asset, net



1,476



1,409



1,296



1,454



937

Bank owned life insurance



73,900



73,285



72,670



72,061



71,492

Interest rate derivatives



17,166



21,790



18,895



36,196



38,682

Other assets



25,771



10,868



12,451



7,305



8,505

Total assets


$

3,659,725


$

3,594,045


$

3,569,206


$

3,615,370


$

3,647,219

















LIABILITIES
















Noninterest-bearing deposits


$

539,975


$

536,276


$

552,472


$

564,076


$

546,760

Interest-bearing deposits



2,197,055



2,200,522



2,170,648



2,181,784



2,267,098

Total deposits



2,737,030



2,736,798



2,723,120



2,745,860



2,813,858

Federal Home Loan Bank advances



425,000



375,000



375,000



375,000



350,000

Operating lease liability



7,962



7,940



7,295



7,743



8,189

Accrued interest payable



3,487



3,498



3,593



3,482



3,059

Other liabilities



58,277



49,456



53,013



76,057



75,509

Total liabilities


$

3,231,756


$

3,172,692


$

3,162,021


$

3,208,142


$

3,250,615

















SHAREHOLDERS' EQUITY
















Preferred stock



—



—



—



—



—

Common stock



254



254



253



253



252

Additional paid-in capital



49,645



49,216



47,481



46,644



46,105

Retained earnings



369,110



358,704



348,343



336,749



324,900

Accumulated other comprehensive income



8,960



13,179



11,108



23,582



25,347

Total shareholders' equity



427,969



421,353



407,185



407,228



396,604

Total liabilities and shareholders' equity


$

3,659,725


$

3,594,045


$

3,569,206


$

3,615,370


$

3,647,219

 

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)





















Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands)


2025


2024


2024


2024


2024


Interest and dividend income:

















Loans, including fees


$

50,253


$

49,790


$

50,336


$

50,527


$

50,117


Other investment income



2,126



2,663



3,417



3,547



2,211


Federal funds sold



140



161



80



34



30


Total interest income



52,519



52,614



53,833



54,108



52,358



















Interest expense:

















Deposits



17,977



18,618



19,602



19,735



22,105


FHLB advances and other borrowings



3,988



3,936



3,942



3,661



3,168


Total interest expense



21,965



22,554



23,544



23,396



25,273



















Net interest income



30,554



30,060



30,289



30,712



27,085



















Provision for credit losses



135



202



582



(128)



(140)



















Net interest income after provision for loan losses



30,419



29,858



29,707



30,840



27,225



















Noninterest income:

















Service charges on deposit accounts



500



563



531



532



447


Other service charges, commissions and fees



1,596



1,748



1,915



1,573



1,612


Gain on sale of residential mortgage loans



399



—



526



1,177



222


Mortgage servicing income, net



618



690



422



1,107



229


Gain on sale of SBA loans



658



811



1,083



—



1,051


SBA servicing income, net



913



956



1,231



560



1,496


Other income



772



553



907



610



511


Total noninterest income



5,456



5,321



6,615



5,559



5,568



















Noninterest expense:

















Salaries and employee benefits



8,493



9,277



8,512



8,048



7,370


Occupancy and equipment



1,417



1,406



1,430



1,334



1,354


Data Processing



345



335



311



353



294


Advertising



167



160



145



157



172


Other expenses



3,377



3,148



3,262



3,140



3,171


Total noninterest expense



13,799



14,326



13,660



13,032



12,361



















Income before provision for income taxes



22,076



20,853



22,662



23,367



20,432


Provision for income taxes



5,779



4,618



5,961



6,430



5,801


Net income available to common shareholders


$

16,297


$

16,235


$

16,701


$

16,937


$

14,631


 

METROCITY BANKSHARES, INC.

QTD AVERAGE BALANCES AND YIELDS/RATES





























Three Months Ended




March 31, 2025


December 31, 2024


March 31, 2024




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)


$

159,478


$

2,098


5.34

%

$

180,628


$

2,560


5.64

%

$

144,934


$

2,052


5.69

%

Investment securities



32,034



168


2.13



31,208



264


3.37



31,611



189


2.40


Total investments



191,512



2,266


4.40



211,836



2,824


5.30



176,545



2,241


5.11


Construction and development



23,321



480


8.35



17,974



384


8.50



21,970



505


9.24


Commercial real estate



779,884



16,157


8.40



757,937



16,481


8.65



716,051



16,108


9.05


Commercial and industrial



72,799



1,588


8.85



73,468



1,703


9.22



64,575



1,574


9.80


Residential real estate



2,308,071



31,986


5.62



2,287,731



31,172


5.42



2,378,879



31,890


5.39


Consumer and other



276



42


61.71



282



50


70.54



249



40


64.61


Gross loans(2)



3,184,351



50,253


6.40



3,137,392



49,790


6.31



3,181,724



50,117


6.34


Total earning assets



3,375,863



52,519


6.31



3,349,228



52,614


6.25



3,358,269



52,358


6.27


Noninterest-earning assets



197,272








192,088








213,802







Total assets



3,573,135








3,541,316








3,572,071







Interest-bearing liabilities: 


























NOW and savings deposits



153,739



952


2.51



133,728



685


2.04



158,625



885


2.24


Money market deposits



1,010,471



6,321


2.54



991,207



6,347


2.55



1,077,469



9,692


3.62


Time deposits



1,006,677



10,704


4.31



1,025,049



11,586


4.50



1,001,792



11,528


4.63


Total interest-bearing deposits



2,170,887



17,977


3.36



2,149,984



18,618


3.45



2,237,886



22,105


3.97


Borrowings



390,000



3,988


4.15



375,000



3,936


4.18



343,847



3,168


3.71


Total interest-bearing liabilities



2,560,887



21,965


3.48



2,524,984



22,554


3.55



2,581,733



25,273


3.94


Noninterest-bearing liabilities:


























Noninterest-bearing deposits



519,125








533,931








522,300







Other noninterest-bearing liabilities



71,444








74,696








86,190







Total noninterest-bearing liabilities



590,569








608,627








608,490







Shareholders' equity



421,679








407,705








381,848







Total liabilities and shareholders' equity


$

3,573,135







$

3,541,316







$

3,572,071







Net interest income





$

30,554







$

30,060







$

27,085




Net interest spread








2.83








2.70








2.33


Net interest margin








3.67








3.57








3.24


_____________________________________________

(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




March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024


March 31, 2024







% of





% of





% of





% of





% of


(Dollars in thousands)


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Amount


Total


Construction and development


$

28,403


0.9

%

$

21,569


0.7

%

$

16,539


0.5

%

$

13,564


0.4

%

$

27,762


0.9

%

Commercial real estate



792,149


25.2



762,033


24.1



738,929


23.9



733,845


23.7



724,263


23.2


Commercial and industrial



71,518


2.3



78,220


2.5



63,606


2.1



68,300


2.2



68,560


2.2


Residential real estate



2,246,818


71.6



2,303,234


72.7



2,276,210


73.5



2,282,630


73.7



2,303,400


73.7


Consumer and other



67


—



260


—



215


—



230


—



247


—


Gross loans held for investment


$

3,138,955


100.0

%

$

3,165,316


100.0

%

$

3,095,499


100.0

%

$

3,098,569


100.0

%

$

3,124,232


100.0

%

Unearned income



(7,630)





(7,381)





(7,673)





(8,071)





(8,361)




Allowance for credit losses



(18,592)





(18,744)





(18,589)





(17,960)





(17,982)




Net loans held for investment


$

3,112,733




$

3,139,191




$

3,069,237




$

3,072,538




$

3,097,889




 

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS




















As of the Quarter Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands)


2025


2024


2024


2024


2024


Nonaccrual loans


$

16,823


$

18,010


$

14,316


$

13,004


$

13,297


Past due loans 90 days or more and still accruing



—



—



—



—



—


Total non-performing loans



16,823



18,010



14,316



13,004



13,297


Other real estate owned



1,707



427



1,515



1,452



1,452


Total non-performing assets


$

18,530


$

18,437


$

15,831


$

14,456


$

14,749



















Nonperforming loans to gross loans held for investment



0.54

%


0.57

%


0.46

%


0.42

%


0.43

%

Nonperforming assets to total assets



0.51



0.51



0.44



0.40



0.40


Allowance for credit losses to non-performing loans



110.52



104.08



129.85



138.11



135.23


 

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES




















As of and for the Three Months Ended




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 


(Dollars in thousands)


2025


2024


2024


2024


2024


Balance, beginning of period


$

18,744


$

18,589


$

17,960


$

17,982


$

18,112


Net charge-offs/(recoveries):

















Construction and development



—



—



—



—



—


Commercial real estate



(1)



—



—



(82)



(1)


Commercial and industrial



170



99



24



(1)



(3)


Residential real estate



—



—



—



—



—


Consumer and other



—



—



—



—



—


Total net charge-offs/(recoveries)



169



99



24



(83)



(4)


Adoption of ASU 2016-13 (CECL)



—



—



—



—



—


Provision for loan losses



17



254



653



(105)



(134)


Balance, end of period


$

18,592


$

18,744


$

18,589


$

17,960


$

17,982


Total loans at end of period(1)


$

3,138,955


$

3,165,316


$

3,095,499


$

3,098,569


$

3,124,232


Average loans(1)


$

3,166,480


$

3,135,093


$

3,115,441


$

3,108,303


$

3,134,286


Net charge-offs/(recoveries) to average loans



0.02

%


0.01

%


0.00

%


(0.01)

%


(0.00)

%

Allowance for loan losses to total loans



0.59



0.59



0.60



0.58



0.58


_____________________________________________

(1)   Excludes loans held for sale.

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SOURCE MetroCity Bankshares, Inc.