METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2021
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
Farid Tan | Lucas Stewart |
President | Chief Financial Officer |
770-455-4978 | 678-580-6414 |
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 |
SOURCE MetroCity Bankshares, Inc.
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