ATLANTA, July 19, 2024 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ:MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.9 million, or $0.66 per diluted share, for the second quarter of 2024, compared to $14.6 million, or $0.57 per diluted share, for the first quarter of 2024, and $13.1 million, or $0.51 per diluted share, for the second quarter of 2023. For the six months ended June 30, 2024, the Company reported net income of $31.6 million, or $1.24 per diluted share, compared to $28.8 million, or $1.13 per diluted share, for the same period in 2023.

Second Quarter 2024 Highlights:

Annualized return on average assets was 1.89%, compared to 1.65% for the first quarter of 2024 and 1.55% for the second quarter of 2023.
Annualized return on average equity was 17.10%, compared to 15.41% for the first quarter of 2024 and 14.87% for the second quarter of 2023. Excluding average accumulated other comprehensive income, our return on average equity was 18.26% for the second quarter of 2024, compared to 16.27% for the first quarter of 2024 and 15.50% for the second quarter of 2023.
Efficiency ratio of 35.9%, compared to 37.9% for the first quarter of 2024 and 38.7% for the second quarter of 2023.
Net interest margin increased by 42 basis points to 3.66% from 3.24% for the previous quarter.

Year-to-Date 2024 Highlights:

Return on average assets was 1.77% for the six months ended June 30, 2024, compared to 1.71% for the same period in 2023.
Return on average equity was 16.27% for the six months ended June 30, 2024, compared to 16.47% for the same period in 2023. Excluding average accumulated other comprehensive income, our return on average equity was 17.28% for the six months ended June 30, 2024, compared to 17.27% for the same period in 2023.
Efficiency ratio of 36.8% for the six months ended June 30, 2024, compared to 35.9% for the same period in 2023.
Net interest margin increased by 25 basis points to 3.45% from 3.20% for the same period in 2023.

Results of Operations

Net Income

Net income was $16.9 million for the second quarter of 2024, an increase of $2.3 million, or 15.8%, from $14.6 million for the first quarter of 2024. This increase was primarily due to an increase in interest income of $1.8 million and a decrease in interest expense of $1.9 million, offset by an increase in noninterest expense of $671,000 and an increase in income tax expense of $629,000. Net income increased by $3.8 million, or 29.2%, in the second quarter of 2024 compared to net income of $13.1 million for the second quarter of 2023. This increase was due to an increase in net interest income of $5.7 million and an increase in noninterest income of $868,000, offset by an increase in income tax expense of $925,000, an increase in noninterest expense of $1.6 million and an increase in provision for credit losses of $288,000.

Net income was $31.6 million for the six months ended June 30, 2024, an increase of $2.7 million, or 9.5%, from $28.8 million for the six months ended June 30, 2023. This increase was due to an increase in net interest income of $6.6 million and an increase in noninterest income of $292,000, offset by an increase in noninterest expense of $3.1 million, an increase in income tax expense of $887,000 and an increase in in provision for credit losses of $148,000.

Net Interest Income and Net Interest Margin

Interest income totaled $54.1 million for the second quarter of 2024, an increase of $1.8 million, or 3.3%, from the previous quarter, primarily due to a 122 basis points and $51.1 million increase in the fed funds sold and interest-bearing cash yield and balance, as well as a 12 basis points increase in the loan yield. As compared to the second quarter of 2023, interest income for the second quarter of 2024 increased by $6.6 million, or 14.0%, primarily due to a 51 basis points increase in the loan yield coupled with a $119.9 million increase in average loan balances, as well as a 109 basis points increase in the total investment yield.

Interest expense totaled $23.4 million for the second quarter of 2024, a decrease of $1.9 million, or 7.4%, from the previous quarter, primarily due to a 34 basis points decrease in deposit costs coupled with a $53.1 million decrease in average deposit balances, offset by a 28 basis points increase in borrowing costs and $25.4 million increase in the average borrowing balance. As compared to the second quarter of 2023, interest expense for the second quarter of 2024 increased by $884,000 or 3.9%, primarily due to a $139.8 million increase in deposit balances and a 106 basis points increase in borrowing costs. The Company currently has interest rate derivative agreements totaling $850.0 million that are designated as cash flow hedges of our deposit accounts indexed to the Effective Federal Funds Rate (currently 5.33%). The weighted average pay rate for these interest rate derivatives is 2.29%. During the second quarter of 2024, we recorded a credit to interest expense of $6.5 million from the benefit received on these interest rate derivatives compared to a benefit of $4.1 million and $857,000 recorded during the first quarter of 2024 and the second quarter of 2023, respectively.

The net interest margin for the second quarter of 2024 was 3.66% compared to 3.24% for the previous quarter, an increase of 42 basis points. The yield on average interest-earning assets for the second quarter of 2024 increased by 18 basis points to 6.45% from 6.27% for the previous quarter, while the cost of average interest-bearing liabilities for the second quarter of 2024 decreased by 26 basis points to 3.68% from 3.94% for the previous quarter. Average earning assets increased by $13.8 million from the previous quarter, due to an increase in average total investments of $50.9 million, offset by a decrease in average loans of $37.1 million. Average interest-bearing liabilities decreased by $27.7 million from the previous quarter as average interest-bearing deposits decreased by $53.1 million while average borrowings increased by $25.4 million.

As compared to the same period in 2023, the net interest margin for the second quarter of 2024 increased by 56 basis points to 3.66% from 3.10%, primarily due to a 55 basis points increase in the yield on average interest-earning assets of $3.37 billion and a six basis point decrease in the cost of average interest-bearing liabilities of $2.55 billion. Average earning assets for the second quarter of 2024 increased by $144.9 million from the second quarter of 2023, due to a $119.9 million increase in average loans and a $24.9 million decrease in average total investments. Average interest-bearing liabilities for the second quarter of 2024 increased by $138.0 million from the second quarter of 2023, driven by an increase in average interest-bearing deposits of $139.8 million, offset by a decrease in average borrowings of $1.8 million.

Noninterest Income

Noninterest income for the second quarter of 2024 was $5.6 million, a decrease of $9,000, or 0.2%, from the first quarter of 2024, primarily due to lower gains on sale and servicing income from Small Business Administration ("SBA") loans, offset by higher gains on sale and servicing income from mortgage loans, service charges on deposit accounts and other income. Mortgage loan sales totaled $111.4 million (average sales premium of 1.05%) during the second quarter of 2024 compared to $21.9 million during the first quarter of 2024. There were no SBA loans sold during the second quarter of 2024 compared to $24.1 million SBA loan sold during the first quarter of 2024. During the second quarter of 2024, we recorded a $503,000 fair value adjustment charge on our SBA servicing asset compared to a fair value adjustment gain of $361,000 during the first quarter of 2024.

Compared to the same period in 2023, noninterest income for the second quarter of 2024 increased by $868,000, or 18.5%, primarily due to higher gains on sale and servicing income from mortgage loans and higher mortgage loan fees from higher volume, offset by lower gains on sale and servicing income from SBA loans. During the second quarter of 2023, we recorded a $255,000 fair value adjustment gain on our SBA servicing asset.

Noninterest income for the six months ended June 30, 2024 totaled $11.1 million, an increase of $292,000, or 2.7%, from the six months ended June 30, 2023, primarily due to higher mortgage loan fees from higher volume, as well as higher gains on sale and servicing income from mortgage loans, offset by decreases in gains on sale of SBA loans, SBA servicing income and other income.

Noninterest Expense

Noninterest expense for the second quarter of 2024 totaled $13.0 million, an increase of $671,000, or 5.4%, from $12.4 million for the first quarter of 2024. This increase was primarily attributable to increases in salary and employee benefits, data processing expense and security expense, partially offset by lower professional fees, FDIC insurance premiums, advertising expense, and loan and other real estate owned related expenses. Compared to the second quarter of 2023, noninterest expense during the second quarter of 2024 increased by $1.6 million, or 13.7%, primarily due to higher salary and employee benefits, occupancy expense, security expense and other real estate owned related expenses, offset by lower FDIC insurance premiums and professional fees.

Noninterest expense for the six months ended June 30, 2024 totaled $25.4 million, an increase of $3.1 million, or 14.0%, from $22.3 million for the six months ended June 30, 2023. This increase was primarily attributable to increases in salaries and employee benefits due to higher commissions from higher loan volume, employee insurance and stock based compensation, as well as higher expenses related to depreciation, rent, data processing and security. These expense increases were partially offset by lower loan related expenses and legal fees.

The Company's efficiency ratio was 35.9% for the second quarter of 2024 compared to 37.9% and 38.7% for the first quarter of 2024 and second quarter of 2023, respectively. For the six months ended June 30, 2024, the efficiency ratio was 36.8% compared to 35.9% for the same period in 2023.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2024 was 27.5%, compared to 28.4% for the first quarter of 2024 and 29.6% for the second quarter of 2023. The Company's effective tax rate for the six months ended June 30, 2024 was 27.9% compared to 28.2% for the same period in 2023.

Balance Sheet

Total Assets

Total assets were $3.62 billion at June 30, 2024, a decrease of $31.8 million, or 0.9%, from $3.65 billion at March 31, 2024, and an increase of $140.3 million, or 4.0%, from $3.48 billion at June 30, 2023. The $31.8 million decrease in total assets at June 30, 2024 compared to March 31, 2024 was primarily due to decreases in loans held for sale of $72.6 million, loans held for investment of $25.4 million and interest rate derivatives of $2.5 million, partially offset by an increase in cash and due from banks of $70.7 million. The $140.3 million increase in total assets at June 30, 2024 compared to June 30, 2023 was primarily due to increases in cash and due from banks of $74.5 million, loans held for investment of $69.8 million, Federal Home Loan Bank stock of $4.7 million and bank owned life insurance of $2.1 million, partially offset by decreases in federal funds sold of $9.4 million and interest rate derivatives of $3.1 million.

Our investment securities portfolio made up only 0.78% of our total assets at June 30, 2024 compared to 0.78% and 0.84% at March 31, 2024 and June 30, 2023, respectively.

Loans

Loans held for investment were $3.09 billion at June 30, 2024, a decrease of $25.4 million, or 0.8%, compared to $3.12 billion at March 31, 2024, and an increase of $69.8 million, or 2.3%, compared to $3.02 billion at June 30, 2023. The decrease in loans at June 30, 2024 compared to March 31, 2024 was due to a $20.8 million decrease in residential mortgage loans, a $14.2 million decrease in construction and development loans and a $260,000 decrease in commercial and industrial loans, offset by a $9.6 million increase in commercial real estate loans. There were no loans classified as held for sale at June 30, 2024 and June 30, 2023. Loans held for sale were $72.6 million a at March 31, 2024.

Deposits

Total deposits were $2.75 billion at June 30, 2024, a decrease of $68.0 million, or 2.4%, compared to total deposits of $2.81 billion at March 31, 2024, and an increase of $47.4 million, or 1.8%, compared to total deposits of $2.70 billion at June 30, 2023. The decrease in total deposits at June 30, 2024 compared to March 31, 2024 was due to a $68.2 million decrease in money market accounts (includes $36.3 million decrease in brokered MMAs) and a $26.8 million decrease in interest-bearing demand deposits (mostly brokered deposits), offset by a $17.3 million increase in noninterest-bearing demand deposits, a $7.9 million increase in time deposits and a $1.8 million increase in savings accounts.

Noninterest-bearing deposits were $564.1 million at June 30, 2024, compared to $546.8 million at March 31, 2024 and $575.3 million at June 30, 2023. Noninterest-bearing deposits constituted 20.5% of total deposits at June 30, 2024, compared to 19.4% at March 31, 2024 and 21.3% at June 30, 2023. Interest-bearing deposits were $2.18 billion at June 30, 2024, compared to $2.27 billion at March 31, 2024 and $2.12 billion at June 30, 2023. Interest-bearing deposits constituted 79.5% of total deposits at June 30, 2024, compared to 80.6% at March 31, 2024 and 78.7% at June 30, 2023.

Uninsured deposits were 23.4% of total deposits at June 30, 2024, compared to 23.0% and 30.7% at March 31, 2024 and June 30, 2023, respectively. As of June 30, 2024, we had $1.27 billion of available borrowing capacity at the Federal Home Loan Bank ($709.7 million), Federal Reserve Discount Window ($509.2 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $128,000 during the second quarter of 2024, compared to a credit provision for credit losses of $140,000 and $416,000 recorded during the first quarter of 2024 and second quarter of 2023, respectively. The credit provision recorded during the second quarter of 2024 was primarily due the decrease in loan balances and an $83,000 recovery recorded during the quarter. Annualized net recoveries to average loans for the second quarter of 2024 was 0.01%, compared to a net recovery of 0.00% for the first quarter of 2024 and a net charge-off of 0.06% for the second quarter of 2023.

Nonperforming assets totaled $27.0 million, or 0.75% of total assets, at June 30, 2024, a decrease of $3.2 million from $30.3 million, or 0.83% of total assets, at March 31, 2024, and an increase of $3.4 million from $23.6 million, or 0.68% of total assets, at June 30, 2023. The decrease in nonperforming assets at June 30, 2024 compared to March 31, 2024 was due to a $2.9 million decrease in accruing restructured loans and a $293,000 decrease in nonaccrual loans.

Allowance for credit losses as a percentage of total loans was 0.58% at June 30, 2024, compared to 0.58% at March 31, 2024 and 0.60% at June 30, 2023. Allowance for credit losses as a percentage of nonperforming loans was 70.16% at June 30, 2024, compared to 62.37% and 79.88% at March 31, 2024 and June 30, 2023, respectively.

About MetroCity Bankshares, Inc.

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

Forward-Looking Statements

Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; 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; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and the surrounding region; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

Contacts

Farid Tan	Lucas Stewart
President	Chief Financial Officer
770-455-4978	678-580-6414
faridtan@metrocitybank.bank	lucasstewart@metrocitybank.bank

METROCITY BANKSHARES, INC.
SELECTED FINANCIAL DATA

	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)	2024			2024			2023			2023			2023			2024			2023
Selected income statement data:
Interest income	$	54,108		$	52,358		$	50,671		$	48,709		$	47,482		$	106,466		$	93,447
Interest expense		23,396			25,273			24,549			24,555			22,512			48,669			42,244
Net interest income		30,712			27,085			26,122			24,154			24,970			57,797			51,203
Provision for credit losses		(128)			(140)			782			(381)			(416)			(268)			(416)
Noninterest income		5,559			5,568			4,712			2,657			4,691			11,127			10,835
Noninterest expense		13,032			12,361			13,915			11,540			11,464			25,393			22,271
Income tax expense		6,430			5,801			4,790			4,224			5,505			12,232			11,345
Net income		16,937			14,631			11,347			11,428			13,108			31,567			28,838
Per share data:
Basic income per share	$	0.67		$	0.58		$	0.45		$	0.45		$	0.52		$	1.25		$	1.15
Diluted income per share	$	0.66		$	0.57		$	0.44		$	0.45		$	0.51		$	1.24		$	1.13
Dividends per share	$	0.20		$	0.20		$	0.18		$	0.18		$	0.18		$	0.40		$	0.36
Book value per share (at period end)	$	16.08		$	15.73		$	15.14		$	15.24		$	14.76		$	16.08		$	14.76
Shares of common stock outstanding		25,331,916			25,205,506			25,205,506			25,241,157			25,279,846			25,331,916			25,279,846
Weighted average diluted shares		25,568,333			25,548,089			25,543,861			25,591,874			25,477,143			25,547,171			25,468,941
Performance ratios:
Return on average assets		1.89	%		1.65	%		1.29	%		1.30	%		1.55	%		1.77	%		1.71	%
Return on average equity		17.10			15.41			11.71			12.14			14.87			16.27			16.47
Dividend payout ratio		30.03			34.77			40.36			40.18			34.77			32.23			31.61
Yield on total loans		6.46			6.34			6.11			5.98			5.95			6.40			5.90
Yield on average earning assets		6.45			6.27			6.14			5.92			5.90			6.36			5.84
Cost of average interest bearing liabilities		3.68			3.94			3.91			3.97			3.74			3.81			3.52
Cost of deposits		3.63			3.97			3.95			4.05			3.88			3.80			3.69
Net interest margin		3.66			3.24			3.17			2.94			3.10			3.45			3.20
Efficiency ratio⁽¹⁾		35.93			37.86			45.13			43.04			38.65			36.84			35.84
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		(0.01)	%		(0.00)	%		0.04	%		(0.00)	%		0.06	%		(0.01)	%		0.03	%
Nonperforming assets to gross loans held for investment and OREO		0.87			0.97			1.22			1.25			0.78			0.87			0.78
ACL to nonperforming loans		70.16			62.37			49.06			47.61			79.88			70.16			79.88
ACL to loans held for investment		0.58			0.58			0.57			0.58			0.60			0.58			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits		112.85	%		110.97	%		115.38	%		111.77	%		112.27	%		112.85	%		112.27	%
Noninterest bearing deposits to deposits		20.54			19.43			18.75			20.58			21.32			20.54			21.32
Investment securities to assets		0.78			0.78			0.82			0.79			0.84			0.78			0.84
Common equity to assets		11.26			10.87			10.89			10.96			10.74			11.26			10.74
Leverage ratio		10.57			10.27			10.20			10.07			10.03			10.57			10.03
Common equity tier 1 ratio		18.00			16.96			16.73			17.03			16.69			18.00			16.69
Tier 1 risk-based capital ratio		18.00			16.96			16.73			17.03			16.69			18.00			16.69
Total risk-based capital ratio		18.87			17.81			17.60			17.91			17.59			18.87			17.59
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	529,823		$	443,905		$	443,072		$	464,823		$	487,787		$	529,823		$	487,787
Mortgage loan production		94,056			94,016			128,931			91,891			72,830			188,072			116,165
Mortgage loan sales		111,424			21,873			—			—			—			133,297			—
SBA/USDA loans serviced for others		486,051			516,425			508,000			487,827			493,579			486,051			493,579
SBA loan production		8,297			11,397			27,529			18,212			16,110			19,694			42,349
SBA loan sales		—			24,065			—			5,169			30,298			24,065			66,756

______________________________________________
(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
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands, except per share data)	2024		2024		2023		2023		2023
ASSETS
Cash and due from banks	$	325,026	$	254,331	$	142,152	$	279,106	$	250,503
Federal funds sold		2,833		4,505		2,653		2,951		12,224
Cash and cash equivalents		327,859		258,836		144,805		282,057		262,727
Equity securities		10,276		10,288		10,335		10,113		10,358
Securities available for sale (at fair value)		17,825		18,057		18,493		17,664		18,696
Loans held for investment		3,090,498		3,115,871		3,142,105		3,029,947		3,020,714
Allowance for credit losses		(17,960)		(17,982)		(18,112)		(17,660)		(18,091)
Loans less allowance for credit losses		3,072,538		3,097,889		3,123,993		3,012,287		3,002,623
Loans held for sale		—		72,610		22,267		—		—
Accrued interest receivable		15,286		15,686		15,125		14,612		13,877
Federal Home Loan Bank stock		20,251		19,063		17,846		17,846		15,534
Premises and equipment, net		18,160		18,081		18,132		17,459		16,374
Operating lease right-of-use asset		7,599		8,030		8,472		7,340		7,761
Foreclosed real estate, net		1,452		1,452		1,466		761		1,001
SBA servicing asset, net		7,108		7,611		7,251		7,107		8,018
Mortgage servicing asset, net		1,454		937		1,273		1,823		2,514
Bank owned life insurance		72,061		71,492		70,957		70,462		70,010
Interest rate derivatives		36,196		38,682		31,781		46,502		39,284
Other assets		7,305		8,505		10,627		4,994		6,310
Total assets	$	3,615,370	$	3,647,219	$	3,502,823	$	3,511,027	$	3,475,087

LIABILITIES
Noninterest-bearing deposits	$	564,076	$	546,760	$	512,045	$	559,540	$	575,301
Interest-bearing deposits		2,181,784		2,267,098		2,218,891		2,159,048		2,123,181
Total deposits		2,745,860		2,813,858		2,730,936		2,718,588		2,698,482
Federal Home Loan Bank advances		375,000		350,000		325,000		325,000		325,000
Other borrowings		—		—		—		—		387
Operating lease liability		7,743		8,189		8,651		7,537		7,985
Accrued interest payable		3,482		3,059		4,133		3,915		3,859
Other liabilities		76,057		75,509		52,586		71,283		66,211
Total liabilities	$	3,208,142	$	3,250,615	$	3,121,306	$	3,126,323	$	3,101,924

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		253		252		252		252		253
Additional paid-in capital		46,644		46,105		45,699		45,580		45,516
Retained earnings		336,749		324,900		315,356		308,589		301,752
Accumulated other comprehensive income		23,582		25,347		20,210		30,283		25,642
Total shareholders' equity		407,228		396,604		381,517		384,704		373,163
Total liabilities and shareholders' equity	$	3,615,370	$	3,647,219	$	3,502,823	$	3,511,027	$	3,475,087

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

	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(Dollars in thousands, except per share data)	2024		2024		2023		2023		2023		2024		2023
Interest and dividend income:
Loans, including fees	$	50,527	$	50,117	$	47,367	$	45,695	$	44,839	$	100,644	$	88,821
Other investment income		3,547		2,211		3,267		2,979		2,582		5,758		4,521
Federal funds sold		34		30		37		35		61		64		105
Total interest income		54,108		52,358		50,671		48,709		47,482		106,466		93,447

Interest expense:
Deposits		19,735		22,105		21,691		21,736		19,804		41,840		37,180
FHLB advances and other borrowings		3,661		3,168		2,858		2,819		2,708		6,829		5,064
Total interest expense		23,396		25,273		24,549		24,555		22,512		48,669		42,244

Net interest income		30,712		27,085		26,122		24,154		24,970		57,797		51,203

Provision for credit losses		(128)		(140)		782		(381)		(416)		(268)		(416)

Net interest income after provision for loan losses		30,840		27,225		25,340		24,535		25,386		58,065		51,619

Noninterest income:
Service charges on deposit accounts		532		447		515		490		464		979		913
Other service charges, commissions and fees		1,573		1,612		2,039		1,478		1,266		3,185		2,140
Gain on sale of residential mortgage loans		1,177		222		—		—		—		1,399		—
Mortgage servicing income, net		1,107		229		39		(85)		(51)		1,336		(147)
Gain on sale of SBA loans		—		1,051		—		244		1,054		1,051		3,023
SBA servicing income, net		560		1,496		1,324		270		1,388		2,056		3,202
Other income		610		511		795		260		570		1,121		1,704
Total noninterest income		5,559		5,568		4,712		2,657		4,691		11,127		10,835

Noninterest expense:
Salaries and employee benefits		8,048		7,370		8,971		6,864		7,103		15,418		13,469
Occupancy		1,334		1,354		1,368		1,272		1,039		2,688		2,253
Data Processing		353		294		301		300		353		647		628
Advertising		157		172		160		143		165		329		311
Other expenses		3,140		3,171		3,115		2,961		2,804		6,311		5,610
Total noninterest expense		13,032		12,361		13,915		11,540		11,464		25,393		22,271

Income before provision for income taxes		23,367		20,432		16,137		15,652		18,613		43,799		40,183
Provision for income taxes		6,430		5,801		4,790		4,224		5,505		12,232		11,345
Net income available to common shareholders	$	16,937	$	14,631	$	11,347	$	11,428	$	13,108	$	31,567	$	28,838

METROCITY BANKSHARES, INC.
QTD AVERAGE BALANCES AND YIELDS/RATES


	Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
	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⁾	$	196,068	$	3,368	6.91	%	$	144,934	$	2,052	5.69	%	$	169,976	$	2,445	5.77	%
Investment securities		31,364		213	2.73			31,611		189	2.40			32,525		198	2.44
Total investments		227,432		3,581	6.33			176,545		2,241	5.11			202,501		2,643	5.24
Construction and development		14,501		320	8.88			21,970		505	9.24			40,386		555	5.51
Commercial real estate		737,846		17,030	9.28			716,051		16,108	9.05			654,021		14,362	8.81
Commercial and industrial		69,208		1,728	10.04			64,575		1,574	9.80			47,836		1,119	9.38
Residential real estate		2,322,763		31,408	5.44			2,378,879		31,890	5.39			2,282,264		28,777	5.06
Consumer and other		290		41	56.86			249		40	64.61			153		26	68.16
Gross loans⁽²⁾		3,144,608		50,527	6.46			3,181,724		50,117	6.34			3,024,660		44,839	5.95
Total earning assets		3,372,040		54,108	6.45			3,358,269		52,358	6.27			3,227,161		47,482	5.90
Noninterest-earning assets		223,455						213,802						167,506
Total assets		3,595,495						3,572,071						3,394,667
Interest-bearing liabilities:
NOW and savings deposits		143,460		1,198	3.36			158,625		885	2.24			160,967		839	2.09
Money market deposits		998,601		6,135	2.47			1,077,469		9,692	3.62			956,598		10,370	4.35
Time deposits		1,042,758		12,402	4.78			1,001,792		11,528	4.63			927,478		8,595	3.72
Total interest-bearing deposits		2,184,819		19,735	3.63			2,237,886		22,105	3.97			2,045,043		19,804	3.88
Borrowings		369,232		3,661	3.99			343,847		3,168	3.71			371,000		2,708	2.93
Total interest-bearing liabilities		2,554,051		23,396	3.68			2,581,733		25,273	3.94			2,416,043		22,512	3.74
Noninterest-bearing liabilities:
Noninterest-bearing deposits		545,114						522,300						558,907
Other noninterest-bearing liabilities		98,066						86,190						66,037
Total noninterest-bearing liabilities		643,180						608,490						624,944
Shareholders' equity		398,264						381,848						353,680
Total liabilities and shareholders' equity	$	3,595,495					$	3,572,071					$	3,394,667
Net interest income			$	30,712					$	27,085					$	24,970
Net interest spread					2.77						2.33						2.16
Net interest margin					3.66						3.24						3.10

______________________________________________
(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.
YTD AVERAGE BALANCES AND YIELDS/RATES


	Six Months Ended
	June 30, 2024						June 30, 2023
	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⁾	$	170,500	$	5,420	6.39	%	$	157,733	$	4,250	5.43	%
Investment securities		31,488		402	2.57			32,737		376	2.32
Total investments		201,988		5,822	5.80			190,470		4,626	4.90
Construction and development		18,236		825	9.10			39,745		1,078	5.47
Commercial real estate		726,949		33,138	9.17			663,015		28,341	8.62
Commercial and industrial		66,891		3,301	9.92			47,473		2,149	9.13
Residential real estate		2,350,821		63,298	5.41			2,286,955		57,199	5.04
Consumer and other		269		82	61.30			160		54	68.06
Gross loans⁽²⁾		3,163,166		100,644	6.40			3,037,348		88,821	5.90
Total earning assets		3,365,154		106,466	6.36			3,227,818		93,447	5.84
Noninterest-earning assets		218,629						171,295
Total assets		3,583,783						3,399,113
Interest-bearing liabilities:
NOW and savings deposits		151,043		2,082	2.77			163,948		1,487	1.83
Money market deposits		1,038,035		15,828	3.07			967,714		20,029	4.17
Time deposits		1,022,275		23,930	4.71			902,280		15,664	3.50
Total interest-bearing deposits		2,211,353		41,840	3.80			2,033,942		37,180	3.69
Borrowings		356,539		6,829	3.85			386,996		5,064	2.64
Total interest-bearing liabilities		2,567,892		48,669	3.81			2,420,938		42,244	3.52
Noninterest-bearing liabilities:
Noninterest-bearing deposits		533,707						568,888
Other noninterest-bearing liabilities		92,128						56,142
Total noninterest-bearing liabilities		625,835						625,030
Shareholders' equity		390,056						353,145
Total liabilities and shareholders' equity	$	3,583,783					$	3,399,113
Net interest income			$	57,797					$	51,203
Net interest spread					2.55						2.32
Net interest margin					3.45						3.20

METROCITY BANKSHARES, INC.
LOAN DATA


	As of the Quarter Ended
	June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and development	$	13,564	0.4	%	$	27,762	0.9	%	$	23,262	0.7	%	$	41,783	1.4	%	$	51,759	1.7	%
Commercial real estate		733,845	23.7			724,263	23.2			711,177	22.6			624,122	20.5			625,111	20.6
Commercial and industrial		68,300	2.2			68,560	2.2			65,904	2.1			61,332	2.0			63,502	2.1
Residential real estate		2,282,630	73.7			2,303,400	73.7			2,350,299	74.6			2,310,981	76.1			2,289,050	75.6
Consumer and other		230	—			247	—			319	—			240	—			102	—
Gross loans held for investment	$	3,098,569	100.0	%	$	3,124,232	100.0	%	$	3,150,961	100.0	%	$	3,038,458	100.0	%	$	3,029,524	100.0	%
Unearned income		(8,071)				(8,361)				(8,856)				(8,511)				(8,810)
Allowance for credit losses		(17,960)				(17,982)				(18,112)				(17,660)				(18,091)
Net loans held for investment	$	3,072,538			$	3,097,889			$	3,123,993			$	3,012,287			$	3,002,623

METROCITY BANKSHARES, INC.
NONPERFORMING ASSETS

	As of the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2023			2023
Nonaccrual loans	$	13,004		$	13,297		$	14,682		$	15,127		$	13,037
Past due loans 90 days or more and still accruing		—			—			—			—			—
Accruing restructured loans		12,593			15,534			22,233			21,964			9,611
Total non-performing loans		25,597			28,831			36,915			37,091			22,648
Other real estate owned		1,452			1,452			1,466			761			1,001
Total non-performing assets	$	27,049		$	30,283		$	38,381		$	37,852		$	23,649

Nonperforming loans to gross loans held for investment		0.83	%		0.92	%		1.17	%		1.22	%		0.75	%
Nonperforming assets to total assets		0.75			0.83			1.10			1.08			0.68
Allowance for credit losses to non-performing loans		70.16			62.37			49.06			47.61			79.88

METROCITY BANKSHARES, INC.
ALLOWANCE FOR LOAN LOSSES

	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2023			2023			2024			2023
Balance, beginning of period	$	17,982		$	18,112		$	17,660		$	18,091		$	18,947		$	18,112		$	13,888
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		(82)			(1)			224			(1)			230			(83)			228
Commercial and industrial		(1)			(3)			85			(3)			208			(4)			206
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			—			—			—			—			—
Total net charge-offs/(recoveries)		(83)			(4)			309			(4)			438			(87)			434
Adoption of ASU 2016-13 (CECL)		—			—			—			—			—			—			5,055
Provision for loan losses		(105)			(134)			761			(435)			(418)			(239)			(418)
Balance, end of period	$	17,960		$	17,982		$	18,112		$	17,660		$	18,091		$	17,960		$	18,091
Total loans at end of period	$	3,098,569		$	3,124,232		$	3,150,961		$	3,038,458		$	3,029,524		$	3,098,569		$	3,029,524
Average loans⁽¹⁾	$	3,108,303		$	3,134,286		$	3,064,409		$	3,029,231		$	3,024,660		$	3,131,540		$	3,037,348
Net charge-offs/(recoveries) to average loans		(0.01)	%		(0.00)	%		0.04	%		(0.00)	%		0.06	%		(0.01)	%		0.03	%
Allowance for loan losses to total loans		0.58			0.58			0.57			0.58			0.60			0.58			0.60

______________________________________________
(1)	Excludes loans held for sale.

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SOURCE MetroCity Bankshares, Inc.

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2024