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
faridtan@metrocitybank.bank	lucasstewart@metrocitybank.bank

METROCITY BANKSHARES, INC.
SELECTED FINANCIAL DATA

	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)	2021			2021			2021			2021			2020			2021			2020
Selected income statement data:
Interest income	$	30,857		$	29,324		$	25,888		$	22,672		$	19,839		$	108,741		$	77,609
Interest expense		1,236			1,135			1,063			1,138			1,411			4,572			11,489
Net interest income		29,621			28,189			24,825			21,534			18,428			104,169			66,120
Provision for loan losses		546			2,579			2,205			1,599			956			6,929			3,467
Noninterest income		7,491			9,532			8,594			8,186			6,138			33,803			27,211
Noninterest expense		12,512			13,111			12,093			10,708			11,077			48,424			41,100
Income tax expense		6,609			5,149			4,728			4,432			3,079			20,918			12,370
Net income		17,445			16,882			14,393			12,981			9,454			61,701			36,394
Per share data:
Basic income per share	$	0.69		$	0.66		$	0.56		$	0.51		$	0.37		$	2.41		$	1.42
Diluted income per share	$	0.68		$	0.66		$	0.56		$	0.50		$	0.37		$	2.39		$	1.41
Dividends per share	$	0.14		$	0.12		$	0.10		$	0.10		$	0.09		$	0.46		$	0.40
Book value per share (at period end)	$	11.40		$	10.84		$	10.33		$	9.95		$	9.54		$	11.40		$	9.54
Shares of common stock outstanding		25,465,236			25,465,236			25,578,668			25,674,573			25,674,573			25,465,236			25,674,573
Weighted average diluted shares		25,720,128			25,729,043			25,833,328			25,881,827			25,870,885			25,788,781			25,798,549
Performance ratios:
Return on average assets		2.33	%		2.61	%		2.53	%		2.62	%		2.14	%		2.51	%		2.17	%
Return on average equity		24.80			25.23			22.51			21.35			15.78			23.55			16.02
Dividend payout ratio		20.52			18.24			17.95			19.91			24.60			19.17			28.32
Yield on total loans		4.93			5.16			5.21			5.20			5.14			5.11			5.47
Yield on average earning assets		4.32			4.75			4.79			4.85			4.80			4.65			4.91
Cost of average interest bearing liabilities		0.24			0.28			0.31			0.38			0.56			0.29			1.15
Cost of deposits		0.27			0.28			0.29			0.36			0.55			0.29			1.20
Net interest margin		4.15			4.57			4.60			4.60			4.46			4.45			4.18
Efficiency ratio⁽¹⁾		33.71			34.76			36.19			36.03			45.09			35.10			44.04
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.01	%		0.00	%		0.02	%		0.00	%		0.04	%		0.01	%		0.01	%
Nonperforming assets to gross loans and OREO		0.61			0.55			0.67			0.84			1.03			0.61			1.03
ALL to nonperforming loans		143.69			189.44			147.82			98.33			77.40			143.69			77.40
ALL to loans held for investment		0.67			0.69			0.66			0.63			0.62			0.67			0.62
Balance sheet and capital ratios:
Gross loans held for investment to deposits		110.98	%		112.15	%		106.31	%		107.33	%		110.48	%		110.98	%		110.48	%
Noninterest bearing deposits to deposits		26.18			30.32			31.30			31.28			31.28			26.18			31.28
Common equity to assets		9.34			10.04			10.50			11.85			12.90			9.34			12.90
Leverage ratio		9.44			10.34			11.14			12.23			13.44			9.44			13.44
Common equity tier 1 ratio		16.72			16.61			17.75			18.97			20.00			16.72			20.00
Tier 1 risk-based capital ratio		16.72			16.61			17.75			18.97			20.00			16.72			20.00
Total risk-based capital ratio		17.73			17.64			18.72			19.88			20.86			17.73			20.86
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	608,208		$	669,358		$	746,660		$	856,432		$	961,670		$	608,208		$	961,670
Mortgage loan production		237,195			368,790			326,507			263,698			194,951			1,196,190			484,214
Mortgage loan sales		—			—			—			—			—			—			92,737
SBA loans serviced for others		542,991			549,818			549,238			521,182			507,442			542,991			507,442
SBA loan production		52,727			85,265			67,376			80,466			34,631			285,834			245,719
SBA loan sales		30,169			37,984			34,158			22,399			25,505			124,710			128,633



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

METROCITY BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	As of the Quarter Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in thousands, except per share data)	2021		2021		2021		2021		2020
ASSETS
Cash and due from banks	$	432,523	$	250,995	$	309,289	$	169,775	$	140,744
Federal funds sold		8,818		2,294		4,644		4,444		9,944
Cash and cash equivalents		441,341		253,289		313,933		174,219		150,688
Equity securities		11,386		993		—		—		—
Securities available for sale (at fair value)		25,733		16,507		16,722		18,739		18,117
Loans		2,505,070		2,361,705		2,091,767		1,866,785		1,630,344
Allowance for loan losses		(16,952)		(16,445)		(13,860)		(11,735)		(10,135)
Loans less allowance for loan losses		2,488,118		2,345,260		2,077,907		1,855,050		1,620,209
Loans held for sale		—		—		—		—		—
Accrued interest receivable		11,052		10,737		10,668		10,515		10,671
Federal Home Loan Bank stock		19,701		12,201		8,451		3,951		6,147
Premises and equipment, net		13,068		13,302		13,557		13,663		13,854
Operating lease right-of-use asset		9,338		9,672		10,078		10,483		10,348
Foreclosed real estate, net		3,618		4,374		4,656		3,844		3,844
SBA servicing asset, net		10,234		10,916		11,155		10,535		9,643
Mortgage servicing asset, net		7,747		8,593		9,529		11,722		12,991
Bank owned life insurance		59,437		59,061		36,263		36,033		35,806
Other assets		5,385		5,323		4,921		5,606		5,171
Total assets	$	3,106,158	$	2,750,228	$	2,517,840	$	2,154,360	$	1,897,489

LIABILITIES
Noninterest-bearing deposits	$	592,444	$	640,312	$	618,054	$	546,164	$	462,909
Interest-bearing deposits		1,670,576		1,471,515		1,356,777		1,199,756		1,016,980
Total deposits		2,263,020		2,111,827		1,974,831		1,745,920		1,479,889
Federal Home Loan Bank advances		500,000		300,000		200,000		80,000		110,000
Other borrowings		459		468		474		479		483
Operating lease liability		9,861		10,241		10,648		11,048		10,910
Accrued interest payable		204		208		202		206		222
Other liabilities		42,391		51,330		67,431		61,332		51,154
Total liabilities	$	2,815,935	$	2,474,074	$	2,253,586	$	1,898,985	$	1,652,658

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		255		255		256		257		257
Additional paid-in capital		51,559		51,181		52,924		55,977		55,674
Retained earnings		238,577		224,711		210,910		199,102		188,705
Accumulated other comprehensive income (loss)		(168)		7		164		39		195
Total shareholders' equity		290,223		276,154		264,254		255,375		244,831
Total liabilities and shareholders' equity	$	3,106,158	$	2,750,228	$	2,517,840	$	2,154,360	$	1,897,489

METROCITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(Dollars in thousands, except per share data)	2021		2021		2021		2021		2020		2021		2020
Interest and dividend income:
Loans, including Fees	$	30,496	$	29,127	$	25,728	$	22,500	$	19,658	$	107,851	$	75,872
Other investment income		360		196		159		170		164		885		1,429
Federal funds sold		1		1		1		2		17		5		308
Total interest income		30,857		29,324		25,888		22,672		19,839		108,741		77,609

Interest expense:
Deposits		1,069		968		919		992		1,262		3,948		10,918
FHLB advances and other borrowings		167		167		144		146		149		624		571
Total interest expense		1,236		1,135		1,063		1,138		1,411		4,572		11,489

Net interest income		29,621		28,189		24,825		21,534		18,428		104,169		66,120

Provision for loan losses		546		2,579		2,205		1,599		956		6,929		3,467

Net interest income after provision for loan losses		29,075		25,610		22,620		19,935		17,472		97,240		62,653

Noninterest income:
Service charges on deposit accounts		466		446		411		373		350		1,696		1,312
Other service charges, commissions and fees		3,015		4,147		3,877		3,398		3,223		14,437		8,545
Gain on sale of residential mortgage loans		—		—		—		—		—		—		2,529
Mortgage servicing income, net		95		132		(957)		166		(82)		(564)		1,308
Gain on sale of SBA loans		2,895		3,358		2,845		1,854		1,625		10,952		6,467
SBA servicing income, net		634		1,212		1,905		2,133		724		5,884		6,130
Other income		386		237		513		262		298		1,398		920
Total noninterest income		7,491		9,532		8,594		8,186		6,138		33,803		27,211

Noninterest expense:
Salaries and employee benefits		7,819		8,679		6,915		6,699		6,822		30,112		25,500
Occupancy		1,206		1,295		1,252		1,275		1,293		5,028		5,083
Data Processing		252		257		283		308		313		1,100		1,078
Advertising		148		131		117		145		138		541		566
Other expenses		3,087		2,749		3,526		2,281		2,511		11,643		8,873
Total noninterest expense		12,512		13,111		12,093		10,708		11,077		48,424		41,100

Income before provision for income taxes		24,054		22,031		19,121		17,413		12,533		82,619		48,764
Provision for income taxes		6,609		5,149		4,728		4,432		3,079		20,918		12,370
Net income available to common shareholders	$	17,445	$	16,882	$	14,393	$	12,981	$	9,454	$	61,701	$	36,394

METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES

	Three Months Ended
	December 31, 2021						September 30, 2021						December 31, 2020
	Average		Interest and		Yield /		Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	345,311	$	241	0.28	%	$	188,296	$	111	0.23	%	$	97,228	$	70	0.29	%
Securities purchased under agreements to resell		—		—	—			—		—	—			7,826		13	0.66
Investment securities		33,682		120	1.41			17,244		86	1.98			17,983		98	2.17
Total investments		378,993		361	0.38			205,540		197	0.38			123,037		181	0.59
Construction and development		50,142		639	5.06			53,871		727	5.35			34,145		453	5.28
Commercial real estate		524,770		7,680	5.81			507,039		7,648	5.98			488,746		6,779	5.52
Commercial and industrial		77,911		1,353	6.89			102,813		2,576	9.94			138,021		1,376	3.97
Residential real estate		1,800,390		20,804	4.58			1,577,276		18,144	4.56			860,977		11,018	5.09
Consumer and other		189		20	41.98			208		32	61.04			261		32	48.78
Gross loans⁽²⁾		2,453,402		30,496	4.93			2,241,207		29,127	5.16			1,522,150		19,658	5.14
Total earning assets		2,832,395		30,857	4.32			2,446,747		29,324	4.75			1,645,187		19,839	4.80
Noninterest-earning assets		140,594						123,888						111,078
Total assets		2,972,989						2,570,635						1,756,265
Interest-bearing liabilities:
NOW and savings deposits		136,102		64	0.19			115,775		59	0.20			78,697		41	0.21
Money market deposits		949,148		550	0.23			757,654		432	0.23			346,193		328	0.38
Time deposits		480,303		455	0.38			506,049		477	0.37			482,162		893	0.74
Total interest-bearing deposits		1,565,553		1,069	0.27			1,379,478		968	0.28			907,052		1,262	0.55
Borrowings		465,141		167	0.14			240,704		167	0.28			88,208		149	0.67
Total interest-bearing liabilities		2,030,694		1,236	0.24			1,620,182		1,135	0.28			995,260		1,411	0.56
Noninterest-bearing liabilities:
Noninterest-bearing deposits		592,300						600,388						453,984
Other noninterest-bearing liabilities		70,915						84,568						68,702
Total noninterest-bearing liabilities		663,215						684,956						522,686
Shareholders' equity		279,080						265,497						238,319
Total liabilities and shareholders' equity	$	2,972,989					$	2,570,635					$	1,756,265
Net interest income			$	29,621					$	28,189					$	18,428
Net interest spread					4.08						4.47						4.24
Net interest margin					4.15						4.57						4.46


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

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

METROCITY BANKSHARES, INC.
AVERAGE BALANCES AND YIELDS/RATES

	Year Ended
	December 31, 2021						December 31, 2020
	Average		Interest and		Yield /		Average		Interest and		Yield /
(Dollars in thousands)	Balance		Fees		Rate		Balance		Fees		Rate
Earning Assets:
Federal funds sold and other investments⁽¹⁾	$	207,771	$	500	0.24	%	$	147,431	$	1,056	0.72	%
Securities purchased under agreements to resell		—		—	—			29,932		271	0.91
Investment securities		21,573		390	1.81			17,806		410	2.30
Total investments		229,344		890	0.39			195,169		1,737	0.89
Construction and development		48,076		2,513	5.23			31,658		1,685	5.32
Commercial real estate		503,968		29,750	5.90			478,481		27,316	5.71
Commercial and industrial		119,640		8,407	7.03			112,313		5,301	4.72
Residential real estate		1,437,377		67,058	4.67			763,136		41,391	5.42
Consumer and other		188		123	65.43			989		179	18.10
Gross loans⁽²⁾		2,109,249		107,851	5.11			1,386,577		75,872	5.47
Total earning assets		2,338,593		108,741	4.65			1,581,746		77,609	4.91
Noninterest-earning assets		122,038						98,504
Total assets		2,460,631						1,680,250
Interest-bearing liabilities:
NOW and savings deposits		112,943		222	0.20			68,610		166	0.24
Money market deposits		726,268		1,693	0.23			248,633		1,731	0.70
Time deposits		499,856		2,033	0.41			596,325		9,021	1.51
Total interest-bearing deposits		1,339,067		3,948	0.29			913,568		10,918	1.20
Borrowings		223,027		624	0.28			82,955		571	0.69
Total interest-bearing liabilities		1,562,094		4,572	0.29			996,523		11,489	1.15
Noninterest-bearing liabilities:
Noninterest-bearing deposits		559,797						394,338
Other noninterest-bearing liabilities		76,727						62,153
Total noninterest-bearing liabilities		636,524						456,491
Shareholders' equity		262,013						227,236
Total liabilities and shareholders' equity	$	2,460,631					$	1,680,250
Net interest income			$	104,169					$	66,120
Net interest spread					4.36						3.76
Net interest margin					4.45						4.18


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

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

METROCITY BANKSHARES, INC.
LOAN DATA

	As of the Quarter Ended
	December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	38,857	1.6	%	$	64,140	2.7	%	$	58,668	2.8	%	$	52,202	2.8	%	$	45,653	2.8	%
Commercial Real Estate		520,488	20.7			503,417	21.2			475,658	22.7			473,281	25.3			477,419	29.2
Commercial and Industrial		73,072	2.9			82,099	3.5			134,076	6.4			166,915	8.9			137,239	8.4
Residential Real Estate		1,879,012	74.8			1,718,593	72.6			1,430,843	68.1			1,181,385	63.0			974,445	59.6
Consumer and other		79	—			238	—			169	—			169	—			183	—
Gross loans	$	2,511,508	100.0	%	$	2,368,487	100.0	%	$	2,099,414	100.0	%	$	1,873,952	100.0	%	$	1,634,939	100.0	%
Unearned income		(6,438)				(6,782)				(7,647)				(7,167)				(4,595)
Allowance for loan losses		(16,952)				(16,445)				(13,860)				(11,735)				(10,135)
Net loans	$	2,488,118			$	2,345,260			$	2,077,907			$	1,855,050			$	1,620,209

METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS

	As of the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020
Nonaccrual loans	$	8,759		$	5,955		$	6,623		$	9,071		$	10,203
Past due loans 90 days or more and still accruing		342			—			—			—			—
Accruing troubled debt restructured loans		2,697			2,726			2,753			2,863			2,891
Total non-performing loans		11,798			8,681			9,376			11,934			13,094
Other real estate owned		3,618			4,374			4,656			3,844			3,844
Total non-performing assets	$	15,416		$	13,055		$	14,032		$	15,778		$	16,938

Nonperforming loans to gross loans		0.47	%		0.37	%		0.45	%		0.64	%		0.80	%
Nonperforming assets to total assets		0.50			0.47			0.56			0.73			0.89
Allowance for loan losses to non-performing loans		143.69			189.44			147.82			98.33			77.40

METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES

	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020			2021			2020
Balance, beginning of period	$	16,445		$	13,860		$	11,735		$	10,135		$	9,339		$	10,135		$	6,839
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		39			(4)			23			(3)			107			55			99
Commercial and industrial		—			—			60			4			51			64			26
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			(2)			(3)			(2)			2			(7)			46
Total net charge-offs/(recoveries)		39			(6)			80			(1)			160			112			171
Provision for loan losses		546			2,579			2,205			1,599			956			6,929			3,467
Balance, end of period	$	16,952		$	16,445		$	13,860		$	11,735		$	10,135		$	16,952		$	10,135
Total loans at end of period	$	2,511,508		$	2,368,487		$	2,099,414		$	1,873,952		$	1,634,939		$	2,511,508		$	1,634,939
Average loans⁽¹⁾	$	2,453,402		$	2,241,207		$	1,979,556		$	1,753,691		$	1,522,150		$	2,109,249		$	1,365,129
Net charge-offs to average loans		0.01	%		0.00	%		0.02	%		0.00	%		0.04	%		0.01	%		0.01	%
Allowance for loan losses to total loans		0.67			0.69			0.66			0.63			0.62			0.67			0.62


(1)	Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND YEAR ENDED 2021