MetroCity Bankshares, Inc. - FORM 8-K - EX-99.1

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8-K - 8-K - MetroCity Bankshares, Inc.	mcbs-20200124x8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER 2019

ATLANTA, GA (January 24, 2020) – MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $10.7 million, or $0.42 per diluted share, for the fourth quarter of 2019, compared to $12.4 million, or $0.50 per diluted share, for the third quarter of 2019, and $9.7 million, or $0.40 per diluted share, for the fourth quarter of 2018. For the year ended December 31, 2019, net income was $44.7 million, or $1.81 per diluted share, compared to $41.3 million, or $1.69 per diluted share, for the year ended December 31, 2018.

On October 30 2019, the Company completed its initial public offering of 1,224,513 shares of common stock, including the exercise of the over-allotment of 224,513 shares, for net proceeds of $13.9 million after deducting underwriting discounts, commissions, and estimated offering expenses.

Fourth Quarter 2019 Highlights:

Net income of $10.7 million, or $0.42 per diluted share.

Annualized return on average assets was 2.57%, compared to 3.07% for the third quarter of 2019 and 2.68% for the fourth quarter of 2018.

Annualized return on average equity was 20.40%, compared to 26.44% for the third quarter of 2019 and 23.84% for the fourth quarter of 2018.

Efficiency ratio of 40.5%, compared to 37.7% for the third quarter of 2019 and 44.5% for the fourth quarter of 2018.

Full Year 2019 Highlights:

Net income of $44.7 million, or $1.81 per diluted share, compared to $41.3 million, or $1.69 per diluted share, in 2018.

Return on average assets was 2.87%, compared to 3.01% in 2018.

Return on average equity was 24.23%, compared to 27.95% in 2018.

Efficiency ratio was 39.7%, compared to 40.3% in 2018.

Total assets increased by $199.2 million, or 13.9%, to $1.63 billion from $1.43 billion at December 31, 2018.

Total loans, including loans held for sale, increased by $46.5 million, or 3.9%, to $1.25 billion from $1.20 billion at December 31, 2018.

The yield earned on average loans, including loans held for sale, was 6.14%, compared to 5.92% in 2018.

Net charge-offs to average loans was a net recovery of 0.02% compared to a net charge-off of 0.14% in 2018.

Results of Operations

Net Income

Net income was $10.7 million for the fourth quarter of 2019, a decrease of $1.7 million, or 13.6%, from $12.4 million for the third quarter of 2019. This decrease was primarily due to decreases in net interest income of $1.0 million and noninterest income of $1.6 million, offset by decreases in noninterest expense of $322,000 and income tax expense of $668,000. Net income increased $934,000, or 9.6%, in the fourth quarter of 2019 compared to net income of $9.7 million for the fourth quarter of 2018. This increase was primarily due to increases in net interest income of $469,000 and noninterest income of $256,000, and a decrease in noninterest expense of $645,000, offset by an increase in income tax expense of $484,000.

Net Interest Income and Net Interest Margin

Interest income totaled $20.6 million for the fourth quarter of 2019, a decrease of $1.3 million, or 5.9%, from the previous quarter, primarily due to an 18 basis point decrease in the yield on average loans, including loans held for sale, and an 81 basis points decrease in the yield on average federal funds sold and interest-bearing cash accounts. As compared to the fourth quarter of 2018, interest income increased by $1.6 million, or 8.4%, primarily due to the 12 basis point increase in the yield on average loans coupled with a $64.2 million increase in average loan balances.

Interest expense totaled $5.7 million for the fourth quarter of 2019, a decrease of $248,000, or 4.2%, from the previous quarter, primarily due to a 14 basis point decrease in deposit costs. As compared to the fourth quarter of 2018, interest expense increased in the fourth quarter of 2019 by $1.1 million, or 24.9%, primarily due to a 26 basis points increase in deposit costs coupled with a $76.6 million increase in average interest-bearing deposits balances.

The net interest margin for the fourth quarter of 2019 was 3.82% compared to 4.22% for the previous quarter, a decrease of 40 basis points. The cost of interest-bearing liabilities decreased by 17 basis points to 2.06%, while the yield on interest-earning assets decreased by 51 basis points to 5.27% from 5.78% for the previous quarter. Average earning assets increased by $49.3 million, due to an increase in lower yielding assets including $101.1 million in federal funds sold and interest-earning cash accounts, offset by a $51.2 million decrease in average loans. Average interest-bearing liabilities increased by $37.3 million as average interest-bearing deposits increased by $11.7 million and average borrowings increased by $25.5 million.

As compared to the same period a year ago, the net interest margin for the fourth quarter of 2019 decreased by 38 basis points to 3.82% from 4.20%, due to an 18 basis point increase in the cost of interest-bearing liabilities of $1.09 billion and a decrease of 24 basis points in the yield on interest-earning assets of $1.55 billion. Average earning assets increased by $183.8 million, primarily due to an increase of $64.2 million in average loans and $122.9 million in federal funds sold and interest-earning cash accounts. Average interest-bearing liabilities increased by $134.6 million, driven by an increase in average interest-bearing deposits of $76.6 million and average borrowings of $58.0 million.

Noninterest Income

Noninterest income for the fourth quarter of 2019 was $9.4 million, a decrease of $1.6 million, or 14.9%, from the third quarter of 2019, primarily due to lower mortgage and SBA servicing income and gains on sale, as well a decrease in other commissions and fees earned from mortgage loan originations as loan volume declined during the fourth quarter of 2019.

Compared to the same period a year ago, noninterest income for the quarter increased by $256,000, or 2.8%, primarily due to the increase in the gains earned from the sales of SBA and mortgage loans.

Noninterest Expense

Noninterest expense for the fourth quarter of 2019 totaled $9.8 million, a decrease of $322,000, or 3.2%, from $10.2 million for the third quarter of 2019. The decrease was primarily attributable to lower salaries and employee benefits. Compared to the fourth quarter of 2018, noninterest expense decreased by $645,000, or 6.2%, partially due to lower mortgage related expenses.

The Company’s efficiency ratio was 40.5% in the fourth quarter of 2019 compared with 37.7% and 44.5% for the third quarter of 2019 and fourth quarter of 2018, respectively.

Income Tax Expense

The Company’s effective tax rate for the fourth quarter of 2019 was 26.2%, compared to 26.5% for the third quarter of 2019 and 25.4% for the fourth quarter of 2018. The effective tax rate for the year ended 2019 was 26.5% compared to 26.2% for the year ended 2018.

Balance Sheet

Total Assets

Total assets were $1.63 billion at December 31, 2019, a decrease of $12.9 million, or 0.8%, from $1.64 billion at September 30, 2019, and an increase of $199.2 million, or 13.9%, from $1.43 billion at December 31, 2018. The $12.9 million decrease from the prior quarter was mainly due to a decrease in loans held for investment of $97.9 million, offset by a $85.8 million increase in loans held for sale. The $199.2 million increase from the prior year end was primarily due to increases in cash and due from banks of $140.2 million and total loans, including loans held for sale, of $46.5 million.

Loans

Loans held for investment at December 31, 2019, were $1.16 billion, a decrease of $97.9 million, or 7.8%, compared to $1.26 billion at September 30, 2019, and an increase of $17.6 million, or 1.5%, compared to $1.14 billion at December 31, 2018. The decline in loans held for investment during the fourth quarter of 2019 was primarily due to a $82.1 million decrease in residential mortgages and a $11.7 million decrease in commercial real estate loans from the previous quarter. Loans held for sale were $85.8 million at December 31, 2019, compared to zero at September 30, 2019 and $56.9 million at December 31, 2018.

Deposits

Total deposits at December 31, 2019 were $1.31 billion, a decrease of $28.0 million, or 2.1%, compared to total deposits of $1.34 billion at September 30, 2019, and an increase of $63.1 million, or 5.1%, compared to total deposits of $1.24 billion at December 31, 2018. The decrease from the prior quarter was primarily due to the decrease in noninterest bearing deposits and time deposits.

Noninterest bearing deposits were $292.0 million at September 30, 2019, compared to $311.2 million at September 30, 2019, and $299.2 million at December 31, 2018. Noninterest bearing deposits constituted 22.3% of total deposits at December 31, 2019, compared to 23.3% at September 30, 2019, and 24.0% at December 31, 2018. Interest bearing deposits were $1.015 billion at December 31, 2019, compared to $1.024 billion at September 30, 2019, and $945.1 million at December 31, 2018. Interest bearing deposits constituted 77.7% of total deposits at December 31, 2019, compared to 76.7% at September 30, 2019, and 76.0% at December 31, 2018.

Asset Quality

The Company recorded no provision for loan losses during the fourth quarter of 2019 as asset quality remained strong. Annualized net charge-offs to average loans for the fourth quarter of 2019 was 0.00%, compared to a net recovery of 0.11% for the third quarter of 2019, and a net charge-off of 0.10% for the fourth quarter of 2018. Annualized net charge-offs to average loans for the year ended December 31, 2019 was a net recovery of 0.02% compared to net charge-off of 0.14% for the year ended December 31, 2018

Nonperforming assets totaled $15.1 million, or 0.93% of total assets, at December 31, 2019, an increase of $178,000 from $14.9 million, or 0.91% of total assets, at September 30, 2019, and an increase of $6.1 million from $9.0 million, or 0.63% of total assets, at December 31, 2018. The slight increase during the quarter was due to a $1.2 million increase in nonaccrual residential mortgage loans, offset by a $509,000 decrease in loans past due ninety days and still accruing and a $510,000 decrease in accruing troubled debt restructured loans.

Allowance for loan losses as a percentage of total loans held for investment was 0.59% at December 31, 2019, compared to 0.54% and 0.58% at September 30, 2019 and December 31, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans was 46.54% at December 31, 2019, compared to 47.19% and 74.12% at September 30, 2019 and December 31, 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. 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 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 are not historical in nature and 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. Factors that might cause such differences include, but are not limited to: business and economic conditions, particularly those affecting the financial services; 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; and legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations. 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, 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	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 Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)	2019			2019			2019			2019			2018			2019			2018
Selected income statement data:
Interest income	$	20,625		$	21,908		$	20,818		$	19,862		$	19,023		$	83,213		$	72,879
Interest expense		5,681			5,929			5,570			5,058			4,548			22,238			14,675
Net interest income		14,944			15,979			15,248			14,804			14,475			60,975			58,204
Provision for loan losses		—			—			—			—			48			—			1,237
Noninterest income		9,360			11,001			12,098			7,434			9,104			39,893			37,609
Noninterest expense		9,840			10,162			9,934			10,064			10,485			40,000			38,575
Income tax expense		3,794			4,462			4,452			3,442			3,310			16,150			14,667
Net income		10,670			12,356			12,960			8,732			9,736			44,718			41,334
Per share data:
Basic income per share	$	0.42		$	0.51		$	0.54		$	0.36		$	0.40		$	1.82		$	1.71
Diluted income per share	$	0.42		$	0.50		$	0.53		$	0.36		$	0.40		$	1.81		$	1.69
Dividends per share	$	0.11		$	0.11		$	0.10		$	0.10		$	0.10		$	0.42		$	0.38
Book value per share (at period end)	$	8.49		$	8.00		$	7.58		$	7.20		$	6.95		$	8.49		$	6.95
Shares of common stock outstanding		25,529,891			24,305,378			24,305,378			24,148,062			24,258,062			25,529,891			24,258,062
Weighted average diluted shares		25,586,733			24,502,621			24,386,049			24,540,538			24,591,537			24,729,535			24,475,698
Performance ratios:
Return on average assets		2.57	%		3.07	%		3.44	%		2.42	%		2.68	%		2.87	%		3.01	%
Return on average equity		20.40			26.44			29.61			21.08			23.84			24.23			27.95
Dividend payout ratio		26.36			21.79			18.85			28.10			25.21			23.26			22.48
Yield on total loans		6.04			6.22			6.11			6.18			5.92			6.14			5.92
Yield on average earning assets		5.27			5.78			5.83			5.80			5.51			5.66			5.60
Cost of average interest bearing liabilities		2.06			2.23			2.23			2.09			1.88			2.15			1.60
Cost of deposits		2.15			2.29			2.23			2.10			1.89			2.19			1.60
Net interest margin		3.82			4.22			4.27			4.32			4.20			4.15			4.48
Efficiency ratio(1)		40.49			37.66			36.33			45.26			44.47			39.66			40.26
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.00	%		(0.11)	%		0.01	%		0.04	%		0.10	%		(0.02)	%		0.14	%
Nonperforming assets to gross loans and OREO		1.30			1.18			1.41			0.98			0.78			1.30			0.78
ALL to nonperforming loans		46.54			47.19			38.67			58.46			74.12			46.54			74.12
ALL to loans held for investment		0.59			0.54			0.54			0.57			0.58			0.59			0.58
Balance sheet and capital ratios:
Gross loans held for investment to deposits		88.97	%		94.46	%		91.88	%		88.68	%		92.08	%		88.97	%		92.08	%
Noninterest bearing deposits to deposits		22.34			23.30			23.87			23.38			24.05			22.34			24.05
Common equity to assets		13.28			11.82			12.09			11.70			11.77			13.28			11.77
Leverage ratio		12.70			11.68			11.67			11.35			11.14			12.70			11.14
Common equity tier 1 ratio		21.28			18.82			17.99			17.40			17.44			21.28			17.44
Tier 1 risk-based capital ratio		21.28			18.82			17.99			17.40			17.44			21.28			17.44
Total risk-based capital ratio		21.98			19.51			18.66			18.09			18.16			21.98			18.16
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	1,168,601		$	1,122,551		$	1,016,352		$	839,352		$	804,188		$	1,168,601		$	804,188
Mortgage loan production		112,259			163,517			188,713			151,068			182,889			615,557			716,140
Mortgage loan sales		106,548			152,503			205,893			55,123			144,991			520,067			536,001
SBA loans serviced for others		441,593			446,266			443,830			425,694			431,201			441,593			431,201
SBA loan production		30,763			48,878			45,838			29,556			37,890			155,035			121,009
SBA loan sales		30,065			28,914			28,675			30,751			17,036			118,405			93,297

(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)	2019		2019		2019		2019		2018
ASSETS
Cash and due from banks	$	270,496	$	264,981	$	151,117	$	105,510	$	130,263
Federal funds sold		5,917		9,567		5,966		7,140		8,164
Cash and cash equivalents		276,413		274,548		157,083		112,650		138,427
Securities purchased under agreements to resell		15,000		15,000		15,000		15,000		15,000
Securities available for sale (at fair value)		15,695		15,913		17,846		18,712		18,888
Loans		1,161,162		1,259,046		1,188,419		1,136,654		1,143,575
Allowance for loan losses		(6,839)		(6,850)		(6,483)		(6,526)		(6,645)
Loans less allowance for loan losses		1,154,323		1,252,196		1,181,936		1,130,128		1,136,930
Loans held for sale		85,793		—		69,686		141,177		56,865
Accrued Interest Receivable		5,101		5,465		5,290		5,439		4,957
Federal Home Loan Bank stock		3,842		3,842		1,292		1,292		1,163
Premises and equipment, net		14,460		14,484		14,465		14,480		14,391
Operating lease right-of-use asset		11,957		12,431		12,783		—		—
Foreclosed real estate, net		423		423		—		—		—
SBA servicing asset, net		8,188		8,566		8,682		8,500		8,446
Mortgage servicing asset, net		18,068		17,740		16,771		14,909		14,934
Bank owned life insurance		20,219		20,101		19,982		19,865		19,749
Other assets		2,376		4,036		3,693		3,231		2,900
Total assets	$	1,631,858	$	1,644,745	$	1,524,509	$	1,485,383	$	1,432,650

LIABILITIES
Noninterest-bearing deposits	$	292,008	$	311,198	$	309,343	$	300,228	$	299,182
Interest-bearing deposits		1,015,369		1,024,154		986,844		983,751		945,050
Total deposits		1,307,377		1,335,352		1,296,187		1,283,979		1,244,232
Federal Home Loan Bank advances		60,000		60,000		—		—		—
Other borrowings		3,129		3,154		3,585		3,752		4,257
Operating lease liability		12,476		12,922		13,253		—		—
Accrued interest payable		890		940		1,415		1,663		1,251
Other liabilities		31,262		37,955		25,752		22,238		14,302
Total liabilities	$	1,415,134	$	1,450,323	$	1,340,192	$	1,311,632	$	1,264,042

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		255		243		243		242		242
Additional paid-in capital		53,854		39,526		39,096		38,746		39,915
Retained earnings		162,616		154,652		144,989		134,833		128,555
Accumulated other comprehensive income (loss)		(1)		1		(11)		(70)		(104)
Total shareholders' equity		216,724		194,422		184,317		173,751		168,608
Total liabilities and shareholders' equity	$	1,631,858	$	1,644,745	$	1,524,509	$	1,485,383	$	1,432,650

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)	2019		2019		2019		2019		2018		2019		2018
Interest and dividend income:
Loans, including Fees	$	19,483	$	20,857	$	20,159	$	18,839	$	18,116	$	79,338	$	70,246
Other investment income		1,023		907		496		868		748		3,294		2,169
Federal funds sold		119		144		163		155		159		581		464
Total interest income		20,625		21,908		20,818		19,862		19,023		83,213		72,879

Interest expense:
Deposits		5,576		5,873		5,445		5,057		4,545		21,951		14,011
FHLB advances and other borrowings		105		56		125		1		3		287		664
Total interest expense		5,681		5,929		5,570		5,058		4,548		22,238		14,675

Net interest income		14,944		15,979		15,248		14,804		14,475		60,975		58,204

Provision for loan losses		—		—		—		—		48		—		1,237

Net interest income after provision for loan losses		14,944		15,979		15,248		14,804		14,427		60,975		56,967

Noninterest income:
Service charges on deposit accounts		296		294		262		255		260		1,107		1,036
Other service charges, commissions and fees		2,335		2,592		3,058		2,399		2,727		10,384		10,395
Gain on sale of residential mortgage loans		2,687		2,901		2,615		938		1,723		9,141		5,679
Mortgage servicing income, net		2,046		2,594		3,315		1,339		2,715		9,294		11,994
Gain on sale of SBA loans		1,148		1,404		1,565		1,327		577		5,444		4,616
SBA servicing income, net		665		900		1,137		1,043		791		3,745		3,119
Other income		183		316		146		133		311		778		770
Total noninterest income		9,360		11,001		12,098		7,434		9,104		39,893		37,609

Noninterest expense:
Salaries and employee benefits		5,997		6,573		6,037		6,316		6,562		24,923		23,569
Occupancy		1,202		1,161		1,231		1,155		1,133		4,749		4,086
Data Processing		264		245		227		293		198		1,029		842
Advertising		194		142		143		170		156		649		613
Other expenses		2,183		2,041		2,296		2,130		2,436		8,650		9,465
Total noninterest expense		9,840		10,162		9,934		10,064		10,485		40,000		38,575

Income before provision for income taxes		14,464		16,818		17,412		12,174		13,046		60,868		56,001
Provision for income taxes		3,794		4,462		4,452		3,442		3,310		16,150		14,667
Net income available to common shareholders	$	10,670	$	12,356	$	12,960	$	8,732	$	9,736	$	44,718	$	41,334

METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES


	Three Months Ended
	December 31, 2019						September 30, 2019						December 31, 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)	$	242,388	$	954	1.56	%	$	141,239	$	842	2.37	%	$	119,502	$	675	2.24	%
Securities purchased under agreements to resell		15,000		87	2.30			15,000		107	2.83			15,000		108	2.86
Securities available for sale		15,823		101	2.53			16,486		102	2.45			19,172		124	2.57
Total investments		273,211		1,142	1.66			172,725		1,051	2.41			153,674		907	2.34
Construction and development		30,508		472	6.14			34,903		579	6.58			42,857		675	6.25
Commercial real estate		471,667		7,651	6.44			474,455		8,210	6.87			412,832		6,837	6.57
Commercial and industrial		48,664		820	6.69			46,931		837	7.08			32,300		578	7.10
Residential real estate		726,671		10,493	5.73			772,068		11,181	5.75			723,413		9,967	5.47
Consumer and other		1,778		47	10.49			2,142		50	9.26			3,650		59	6.41
Gross loans(2)		1,279,288		19,483	6.04			1,330,499		20,857	6.22			1,215,052		18,116	5.92
Total earning assets		1,552,499		20,625	5.27			1,503,224		21,908	5.78			1,368,726		19,023	5.51
Noninterest-earning assets		94,805						95,437						74,850
Total assets		1,647,304						1,598,661						1,443,576
Interest-bearing liabilities:
NOW and savings deposits		51,259		40	0.31			49,880		40	0.32			61,264		57	0.37
Money market deposits		173,223		773	1.77			152,867		822	2.13			62,229		221	1.41
Time deposits		806,764		4,763	2.34			816,752		5,011	2.43			831,187		4,267	2.04
Total interest-bearing deposits		1,031,246		5,576	2.15			1,019,499		5,873	2.29			954,680		4,545	1.89
Borrowings		62,610		105	0.67			37,075		56	0.60			4,599		3	0.26
Total interest-bearing liabilities		1,093,856		5,681	2.06			1,056,574		5,929	2.23			959,279		4,548	1.88
Noninterest-bearing liabilities:
Noninterest-bearing deposits		291,260						303,759						297,217
Other noninterest-bearing liabilities		54,652						52,954						25,072
Total noninterest-bearing liabilities		345,912						356,713						322,289
Shareholders' equity		207,536						185,374						162,008
Total liabilities and shareholders' equity	$	1,647,304					$	1,598,661					$	1,443,576
Net interest income			$	14,944					$	15,979					$	14,475
Net interest spread					3.21						3.55						3.63
Net interest margin					3.82						4.22						4.20

(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


	Year Ended
	December 31, 2019						December 31, 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)	$	145,096	$	3,010	2.07	%	$	79,699	$	1,758	2.21	%
Securities purchased under agreements to resell		15,000		421	2.81			15,000		372	2.48
Securities available for sale		17,413		444	2.55			20,174		503	2.49
Total investments		177,509		3,875	2.18			114,873		2,633	2.29
Construction and development		33,567		2,088	6.22			46,050		2,763	6.00
Commercial real estate		458,259		30,864	6.74			394,770		25,521	6.46
Commercial and industrial		43,003		3,049	7.09			36,208		2,507	6.92
Residential real estate		755,244		43,130	5.71			702,753		39,058	5.56
Consumer and other		2,310		207	8.96			5,961		397	6.66
Gross loans(2)		1,292,383		79,338	6.14			1,185,742		70,246	5.92
Total earning assets		1,469,892		83,213	5.66			1,300,615		72,879	5.60
Noninterest-earning assets		86,106						73,585
Total assets		1,555,998						1,374,200
Interest-bearing liabilities:
NOW and savings deposits		51,818		172	0.33			69,741		272	0.39
Money market deposits		133,363		2,730	2.05			50,690		553	1.09
Time deposits		816,298		19,049	2.33			754,256		13,186	1.75
Total interest-bearing deposits		1,001,479		21,951	2.19			874,687		14,011	1.60
Borrowings		31,884		287	0.90			45,223		664	1.47
Total interest-bearing liabilities		1,033,363		22,238	2.15			919,910		14,675	1.60
Noninterest-bearing liabilities:
Noninterest-bearing deposits		297,174						284,702
Other noninterest-bearing liabilities		40,924						21,683
Total noninterest-bearing liabilities		338,098						306,385
Shareholders' equity		184,537						147,905
Total liabilities and shareholders' equity	$	1,555,998					$	1,374,200
Net interest income			$	60,975					$	58,204
Net interest spread					3.51						4.00
Net interest margin					4.15						4.48

(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
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	31,739	2.7	%	$	42,106	3.3	%	$	37,132	3.1	%	$	39,435	3.5	%	$	42,718	3.7	%
Commercial Real Estate		424,950	36.5			436,692	34.6			420,332	35.3			392,714	34.5			396,598	34.6
Commercial and Industrial		53,105	4.6			47,247	3.8			43,771	3.7			41,916	3.7			33,100	2.9
Residential Real Estate		651,645	56.0			733,702	58.2			687,389	57.7			662,272	58.1			670,341	58.5
Consumer and other		1,768	0.2			1,658	0.1			2,287	0.2			2,294	0.2			2,957	0.3
Gross loans	$	1,163,207	100	%	$	1,261,405	100	%	$	1,190,911	100	%	$	1,138,631	100	%	$	1,145,714	100	%
Unearned income		(2,045)				(2,359)				(2,492)				(1,977)				(2,139)
Allowance for loan losses		(6,839)				(6,850)				(6,483)				(6,526)				(6,645)
Net loans	$	1,154,323			$	1,252,196			$	1,181,936			$	1,130,128			$	1,136,930

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS


	As of the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			September 30,
(Dollars in thousands)	2019			2019			2019			2019			2018
Nonaccrual loans	$	12,236		$	11,039		$	13,633		$	7,865		$	5,667
Past due loans 90 days or more and still accruing		—			509			—			—			—
Accruing troubled debt restructured loans		2,459			2,969			3,130			3,298			3,298
Total non-performing loans		14,695			14,517			16,763			11,163			8,965
Other real estate owned		423			423			—			—			—
Total non-performing assets	$	15,118		$	14,940		$	16,763		$	11,163		$	8,965

Nonperforming loans to gross loans		1.26	%		1.15	%		1.41	%		0.98	%		0.78	%
Nonperforming assets to total assets		0.93			0.91			1.10			0.75			0.63
Allowance for loan losses to non-performing loans		46.54			47.19			38.67			58.46			74.12

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES


	As of or for the Three Months Ended															As of or for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2019			2019			2019			2019			2018			2019			2018
Balance, beginning of period	$	6,850		$	6,483		$	6,526		$	6,645		$	6,881		$	6,645		$	6,925
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		(3)			(501)			(6)			(5)			67			(515)			66
Commercial and industrial		—			—			14			—			39			14			39
Residential real estate		—			—			—			—			—			—			—
Consumer and other		14			134			35			124			178			307			1,412
Total net charge-offs/(recoveries)		11			(367)			43			119			284			(194)			1,517
Provision for loan losses		—			—			—			—			48			—			1,237
Balance, end of period	$	6,839		$	6,850		$	6,483		$	6,526		$	6,645		$	6,839		$	6,645
Total loans at end of period	$	1,163,207		$	1,261,405		$	1,190,911		$	1,138,631		$	1,145,714		$	1,163,207		$	1,145,714
Average loans(1)	$	1,236,392		$	1,295,657		$	1,217,943		$	1,136,450		$	1,141,020		$	1,218,219		$	1,110,451
Net charge-offs to average loans		0.00	%		(0.11)	%		0.01	%		0.04	%		0.10	%		(0.02)	%		0.14	%
Allowance for loan losses to total loans		0.59			0.54			0.54			0.57			0.58			0.59			0.58

(1)Excludes loans held for sale

MetroCity Bankshares, Inc. - FORM 8-K - EX-99.1 - January 24, 2020

Attached files

MetroCity Bankshares, Inc. Reports