Financial Performance - Net income for the first quarter of 2025 was $16.3 million, an increase of 0.4% from the previous quarter and 11.4% from the same quarter last year[1][6]. - Annualized return on average assets was 1.85%, up from 1.82% in the fourth quarter of 2024 and 1.65% in the first quarter of 2024[5]. - The efficiency ratio improved to 38.3% from 40.5% in the previous quarter and 37.9% in the same quarter last year[5][15]. - Net income for Q1 2025 was $16,297,000, a marginal increase from $16,235,000 in Q4 2024[33]. - Basic income per share remained stable at $0.64 in Q1 2025, consistent with Q4 2024[33]. - Net interest income increased to $30,554,000 in Q1 2025 from $30,060,000 in Q4 2024, representing a growth of 1.64%[33]. - Noninterest income for the first quarter of 2025 was $5.5 million, a 2.5% increase from the previous quarter but a 2.0% decrease from the same quarter last year[12][13]. - Noninterest income rose to $5,456,000 in Q1 2025 compared to $5,321,000 in Q4 2024, an increase of 2.54%[33]. - Total noninterest expense decreased to $13,799,000 from $14,326,000 in the previous quarter, a reduction of 3.69%[38]. - Net income available to common shareholders for the quarter was $16,297,000, slightly up from $16,235,000 in the previous quarter, representing an increase of 0.38%[38]. Asset and Loan Management - Total assets increased by $65.9 million, or 1.8%, to $3.66 billion compared to the previous quarter[17]. - Total assets as of March 31, 2025, were $3,659,725,000, up from $3,594,045,000 at the end of Q4 2024[36]. - Total loans at the end of the period were $3,138,955 thousand, a decrease from $3,165,316 thousand in the prior quarter, representing a decline of 0.8%[48]. - Loans held for investment decreased by $26.6 million, or 0.8%, from the previous quarter, while total loans increased by $30.1 million in commercial real estate loans[19]. - The average balance of gross loans was $3,184,351,000, with an interest income of $50,253,000, yielding a rate of 6.40%[40]. - Residential real estate loans comprised 71.6% of total loans, amounting to $2,246,818,000 as of March 31, 2025[44]. Credit Quality and Losses - The provision for credit losses in Q1 2025 was $135,000, down from $202,000 in Q4 2024 and $140,000 in Q1 2024, primarily due to increased reserves for commercial real estate loans[24]. - Nonperforming assets reached $18.5 million, or 0.51% of total assets, as of March 31, 2025, an increase from $18.4 million at December 31, 2024, and $14.7 million at March 31, 2024[25]. - The allowance for credit losses as a percentage of total loans was 0.59% at March 31, 2025, unchanged from December 31, 2024, and slightly up from 0.58% at March 31, 2024[26]. - The allowance for credit losses as a percentage of nonperforming loans was 110.52% at March 31, 2025, compared to 104.08% at December 31, 2024, and 135.23% at March 31, 2024[26]. - Nonaccrual loans decreased to $16,823 thousand as of March 31, 2025, from $18,010 thousand in the previous quarter, representing a decline of 6.6%[46]. - Total non-performing loans increased to $16,823 thousand from $14,316 thousand in the prior quarter, marking a rise of 17.5%[46]. - The allowance for loan losses to total loans ratio remained stable at 0.59% as of March 31, 2025, consistent with the previous quarter[48]. Market and Operational Risks - Forward-looking statements indicate potential risks including economic conditions, regulatory changes, and impacts from proposed mergers, which could materially affect future financial performance[28][29]. - The company is pursuing a proposed merger with First IC, which carries risks related to cost savings, regulatory approvals, and integration challenges[29]. - The company emphasizes the importance of cybersecurity and technological advancements in maintaining competitive advantage in the financial services industry[29]. - The impact of geopolitical events, such as conflicts in Ukraine and Israel, may also pose risks to the company's operations and financial results[29]. - The company cautions against undue reliance on forward-looking statements due to inherent uncertainties and risks[30]. Deposit and Interest Metrics - Total deposits were $2.74 billion, showing a slight increase from the previous quarter but a decrease of 2.7% compared to the same quarter last year[20]. - Total deposits increased to $2,737,030,000 in Q1 2025 from $2,736,798,000 in Q4 2024[36]. - Net interest margin increased to 3.67%, up 10 basis points from the previous quarter and 43 basis points from the same quarter last year[9][10]. - Interest income for Q1 2025 was $52,519,000, slightly down from $52,614,000 in Q4 2024[33]. - Total interest income for the three months ended March 31, 2025, was $52,519,000, a slight decrease of 0.18% from $52,614,000 in the previous quarter[38].

Financial Performance - MetroCity Bankshares reported net income of $16.3 million, or $0.63 per diluted share, for Q1 2025, a slight increase from $16.2 million in Q4 2024 and a significant rise from $14.6 million in Q1 2024 [1][4] - The annualized return on average assets was 1.85%, compared to 1.82% in Q4 2024 and 1.65% in Q1 2024 [10] - The annualized return on average equity was 15.67%, down from 15.84% in Q4 2024 but up from 15.41% in Q1 2024 [10] Income Statement Highlights - Net interest income for Q1 2025 was $30.6 million, an increase from $30.1 million in Q4 2024 and $27.1 million in Q1 2024 [28] - Noninterest income increased to $5.5 million in Q1 2025, up from $5.3 million in Q4 2024, but decreased from $5.6 million in Q1 2024 [9][12] - Noninterest expense decreased to $13.8 million in Q1 2025 from $14.3 million in Q4 2024, but increased from $12.4 million in Q1 2024 [13][14] Balance Sheet Overview - Total assets reached $3.66 billion as of March 31, 2025, an increase of $65.9 million from $3.59 billion at December 31, 2024 [16] - Loans held for investment were $3.13 billion, a decrease of $26.6 million from the previous quarter but an increase of $15.5 million from the same period last year [18] - Total deposits were $2.74 billion, showing a slight increase from the previous quarter but a decrease of $76.8 million from Q1 2024 [19] Acquisition Activity - MetroCity announced the acquisition of First IC Corporation and First IC Bank in a cash and stock transaction valued at approximately $112 million [2] - The merger is expected to close in Q4 2025, pending regulatory approvals and shareholder consent [2][3] Asset Quality - The provision for credit losses was $135,000 in Q1 2025, down from $202,000 in Q4 2024 [22] - Nonperforming assets totaled $18.5 million, or 0.51% of total assets, as of March 31, 2025, an increase from $14.7 million, or 0.40%, a year earlier [24] Key Ratios - The efficiency ratio improved to 38.3% in Q1 2025 from 40.5% in Q4 2024 [10][14] - The net interest margin increased to 3.67% in Q1 2025, up from 3.57% in Q4 2024 and 3.24% in Q1 2024 [10][7][8]

Core Viewpoint - MetroCity Bankshares, Inc. has announced a definitive merger agreement to acquire First IC Corporation and its subsidiary, First IC Bank, in a cash and stock transaction valued at approximately $206 million [1][2]. Financial Details - First IC shareholders will receive 3,384,588 shares of MetroCity common stock and $111,965,213 in cash, with the total consideration comprising approximately 46% stock and 54% cash [2]. - The implied purchase price is $22.71 per First IC common share, based on MetroCity's closing stock price of $27.78 on March 14, 2025 [2]. - The pro forma company will have approximately $4.8 billion in assets, $3.7 billion in deposits, and $4.1 billion in loans post-merger [3]. Strategic Positioning - The merger is expected to enhance the combined company's strategic positioning, allowing for increased investments in technology and growth [3]. - MetroCity shareholders are projected to see approximately 26% EPS accretion in the first full year post-merger, factoring in expected cost savings [3]. - The tangible book value payback period is estimated to be around 2.4 years [3]. Leadership Statements - Leaders from both companies expressed enthusiasm about the merger, highlighting the potential for improved services and opportunities for customers and employees [4]. - The merger is seen as a way to create a stronger banking institution that aligns with shared values and enhances community impact [4]. Timeline and Approvals - The merger is anticipated to close in the fourth quarter of 2025, pending regulatory approvals and shareholder consent from First IC [5]. Advisory Roles - Hillworth Bank Partners served as financial advisor to MetroCity, while Stephens Inc. acted as financial advisor to First IC [6].

Interest Rate Risk Management - The company has identified interest rate risk as its primary source of market risk, which arises from changes in market interest rates affecting earnings and asset values [390]. - As of December 31, 2024, a +200 basis point increase in interest rates is projected to decrease net interest income by 0.20% over 12 months and 7.00% over 24 months [400]. - The Economic Value of Equity (EVE) is projected to decrease by 26.30% with a +400 basis point shock as of December 31, 2024 [400]. - The company utilizes income simulations and EVE simulations to measure and manage interest rate risk, assessing potential earnings impacts over a two-year horizon [396]. - The asset liability committee (ALCO) focuses on ensuring a stable and increasing flow of net interest income through balance sheet management [393]. - The company’s interest rate risk measurement is reported to the ALCO at least quarterly, including assessments of any policy limit breaches [395]. - The Company utilizes interest rate swap and cap agreements as part of its asset/liability management strategy to manage interest rate risk [485]. - The notional amount for interest rate swaps designated as cash flow hedges remained at $800,000 for both years ended December 31, 2024, and 2023, with a weighted-average pay rate of 2.28% and a weighted-average receive rate of 5.15% in 2024 [571]. - Net interest income from interest rate swaps increased significantly to $20,863,000 in 2024 from $5,246,000 in 2023, reflecting a substantial growth of 298% [571]. Financial Performance - Net income for 2024 was $64,504 thousand, up 25% from $51,613 thousand in 2023 [422]. - Total assets increased to $3,594,045 thousand in 2024 from $3,502,823 thousand in 2023, representing a growth of 2.6% [420]. - Total interest income rose to $212,913 thousand in 2024, a 10.4% increase compared to $192,827 thousand in 2023 [422]. - Noninterest income increased to $23,063 thousand in 2024, up 26.7% from $18,204 thousand in 2023 [422]. - Earnings per share (EPS) for 2024 was $2.55, an increase from $2.05 in 2023 [422]. - Shareholders' equity grew to $421,353 thousand in 2024, up from $381,517 thousand in 2023, reflecting a 10.5% increase [420]. - The comprehensive income for 2024 was $57,473 thousand, compared to $53,784 thousand in 2023, indicating a growth of 6.3% [424]. - The total provision for income taxes for the year ended December 31, 2024, was $22,810,000, representing an increase of 12% from $20,359,000 in 2023 [572]. - The federal statutory tax rate remained consistent at 21.0% for the years ended December 31, 2024, 2023, and 2022, with the total provision for income taxes as a percentage of income increasing to 26.1% in 2024 from 28.3% in 2023 [572]. Credit Losses and Allowances - The company employs regression analysis of peer data to estimate expected credit losses for its loan segments, incorporating economic projections from third parties [414]. - The allowance for credit losses (ACL) on loans is estimated at each balance sheet date and deducted from the loans' amortized cost basis [457]. - The Company uses the discounted cash flow (DCF) method to estimate expected credit losses for each loan segment, adjusting for prepayment speed and probability of default [468]. - The Company has identified several loan pools for measuring expected credit losses, including construction and development, commercial real estate, and single-family residential mortgages [463][464][466]. - The Company recorded a provision for credit losses of $516,000 in 2024, compared to a benefit of $(15,000) in 2023 [430]. - The allowance for credit losses increased to $18,744 as of December 31, 2024, compared to $18,112 in 2023, indicating a rise of 3.48% [526]. - The total allowance for credit losses allocated to collateral-dependent loans was $748,000 as of December 31, 2024, up from $282,000 in 2023 [532]. - The Company does not anticipate any credit loss impairment on securities available for sale, with no payment defaults expected as of December 31, 2024 [521]. Loans and Deposits - Total loans as of December 31, 2024, amounted to $3,165,316, an increase from $3,150,961 in 2023, reflecting a growth of approximately 0.37% [526]. - The Company’s residential real estate loans totaled $2,303,234 as of December 31, 2024, a slight decrease from $2,350,299 in 2023 [526]. - Total deposits slightly increased to $2,736,798 thousand in 2024 from $2,730,936 thousand in 2023 [420]. - The unpaid principal balances of serviced SBA and USDA loans decreased to $479.7 million in 2024 from $508.0 million in 2023, a decline of 5.0% [555]. - The outstanding principal of residential mortgage loans serviced for others rose to $527.0 million in 2024, up from $443.1 million in 2023, an increase of 19.0% [559]. - Loan modifications for borrowers experiencing financial difficulty totaled $13,425 in 2024, representing 0.43% of total loans [546]. Regulatory Compliance and Accounting Standards - The company has faced risks related to compliance with governmental and regulatory requirements, including the Dodd-Frank Act [19]. - The company has adopted a new accounting standard for credit losses effective January 1, 2023, using a modified retrospective method [406]. - The company adopted ASU 2022-02, eliminating specific reserves for troubled debt restructurings, enhancing disclosure requirements for loan modifications [507]. - The company has evaluated other accounting standards updates issued during 2024 and does not expect them to have a material impact on consolidated financial statements [514]. - The company is currently assessing the impact of the SEC's new climate-related disclosure rules, effective for the fiscal year beginning January 1, 2026 [513]. Stock and Compensation - The company recognized compensation expense for restricted stock of $2.6 million in 2024, up from $2.4 million in 2023, indicating a 8.3% increase year-over-year [584]. - As of December 31, 2024, the company had 207,865 nonvested shares of restricted stock with a weighted average grant-date fair value of $20.20 [584]. - The company had 169,134 outstanding stock options as of December 31, 2024, with an aggregate intrinsic value of $3,256,000 [581]. - The company recognized no compensation expense for stock options during the years ended December 31, 2024, 2023, and 2022, maintaining a consistent approach to stock option accounting [581].

Group 1 - MetroCity Bankshares, Inc. (NASDAQ: MCBS) is expected to see slight earnings growth this year due to very low loan growth [1] - The average margin for MetroCity Bankshares is anticipated to be higher this year compared to the previous year [1]

Financial Performance - Net income for Q4 2024 was $16.2 million, a decrease of 2.8% from Q3 2024, but an increase of 43.1% compared to Q4 2023[5] - Net income for the quarter was $16,235,000, an increase from $16,937,000 in the prior quarter, representing a decrease of 4.1%[37] - Net income available to common shareholders for the year ended December 31, 2024, was $64,504 thousand, up from $51,613 thousand in 2023, indicating a year-over-year growth of approximately 25%[42] Asset and Loan Growth - Loans held for investment increased by $70.1 million, or 2.3%, to $3.16 billion from the previous quarter[4] - Total assets increased by $91.2 million, or 2.6%, to $3.59 billion compared to December 31, 2023[4] - Total assets as of December 31, 2024, increased to $3,594,045 thousand from $3,502,823 thousand a year ago, representing a growth of approximately 2.6%[40] - Total loans at the end of the period reached $3,165,316 thousand, an increase from $3,095,499 thousand in the previous quarter[55] Income and Expense Analysis - Noninterest income for Q4 2024 was $5.3 million, a decrease of 19.6% from Q3 2024, but an increase of 12.9% compared to Q4 2023[12] - Noninterest expense for Q4 2024 totaled $14.3 million, an increase of 4.9% from Q3 2024[15] - Total noninterest expense for the year was $53,379 thousand, up from $47,726 thousand in the previous year, reflecting an increase of about 12%[42] Efficiency and Ratios - Efficiency ratio for Q4 2024 was 40.5%, compared to 37.0% for Q3 2024 and 45.1% for Q4 2023[18] - The common equity tier 1 ratio stood at 19.17%, an increase from 18.25% in the previous quarter, showing an improvement of 5.0%[37] - The allowance for credit losses as a percentage of total loans was 0.59% at December 31, 2024, compared to 0.60% at September 30, 2024[29] Credit Quality and Losses - The provision for credit losses was $202,000 in Q4 2024, down from $582,000 in Q3 2024 and $782,000 in Q4 2023[27] - Nonperforming assets totaled $18.4 million, or 0.51% of total assets, at December 31, 2024, an increase from 0.44% at September 30, 2024[28] - The net charge-offs to average loans ratio was 0.01% for the current quarter, compared to 0.00% in the previous quarter[55] Deposits and Borrowing Capacity - Total deposits were $2.74 billion at December 31, 2024, an increase of 0.5% from September 30, 2024[24] - Noninterest-bearing deposits were $536.3 million at December 31, 2024, constituting 19.6% of total deposits, a decrease from 20.3% at September 30, 2024[25] - The company had $1.29 billion of available borrowing capacity at the Federal Home Loan Bank, Federal Reserve Discount Window, and other financial institutions as of December 31, 2024[26] Interest Income and Yield - Interest income totaled $52.6 million for Q4 2024, a decrease of 2.3% from the previous quarter, but an increase of 3.8% compared to Q4 2023[7] - The average yield on earning assets for the year ended December 31, 2024, was 6.33%, compared to 5.94% for the previous year, showing an increase of 6.6%[48] - Net interest income for the quarter ended December 31, 2024, was $30,060 thousand, compared to $26,122 thousand for the same quarter last year, reflecting an increase of about 15%[42] Branch Operations - MetroCity Bank operates 20 full-service branch locations across multiple states, focusing on multi-ethnic communities[31]

Core Insights - MetroCity Bankshares, Inc. reported a net income of $16.2 million for Q4 2024, a decrease of 2.8% from Q3 2024 but an increase of 43.1% compared to Q4 2023 [1][2][3] Financial Performance - Net income for the full year 2024 was $64.5 million, up 25.0% from $51.6 million in 2023, driven by increases in net interest income and noninterest income [3][10] - The annualized return on average assets was 1.82% for Q4 2024, compared to 1.29% for Q4 2023, while the return on average equity was 15.84%, up from 11.71% in the same period [11][11] - The efficiency ratio for Q4 2024 was 40.5%, compared to 45.1% in Q4 2023, indicating improved operational efficiency [14] Net Interest Income and Margin - Net interest income for Q4 2024 was $30.06 million, a slight decrease from the previous quarter but an increase from the same quarter last year [29] - The net interest margin for Q4 2024 was 3.57%, up 40 basis points from 3.17% in Q4 2023, reflecting improved asset yields [6][7] Noninterest Income - Noninterest income for Q4 2024 was $5.3 million, down 19.6% from Q3 2024 but up 12.9% from Q4 2023, primarily due to higher gains on SBA loans [8][9][10] Noninterest Expense - Noninterest expense for Q4 2024 totaled $14.3 million, an increase of 4.9% from Q3 2024, mainly due to higher salaries and employee benefits [12][13] Balance Sheet Highlights - Total assets increased to $3.59 billion at December 31, 2024, a 2.6% increase from the previous year, driven by growth in loans held for investment [16] - Loans held for investment rose to $3.16 billion, a 2.3% increase from the previous quarter [18] - Total deposits were $2.74 billion, reflecting a 0.5% increase from the previous quarter [19] Asset Quality - The provision for credit losses was $202,000 in Q4 2024, a decrease from previous quarters, with net charge-offs to average loans at 0.01% [22][24] - Nonperforming assets totaled $18.4 million, or 0.51% of total assets, an increase from the previous quarter [23]

Financial Performance - Net income for the three months ended September 30, 2024, was $16.70 million, compared to $11.43 million for the same period in 2023, marking a year-over-year increase of 46.2%[167]. - Basic earnings per share for the three months ended September 30, 2024, was $0.66, compared to $0.45 for the same period in 2023, an increase of 46.7%[167]. - For the nine months ended September 30, 2024, net income increased by 19.9% to $48.3 million from $40.3 million in the same period in 2023, attributed to a $12.7 million increase in net interest income[171]. - Noninterest income increased to $6.62 million for the three months ended September 30, 2024, from $4.71 million in the same period of 2023, reflecting a growth of 40.5%[167]. - Net interest income for the three months ended September 30, 2024, was $30.29 million, compared to $26.12 million for the same period in 2023, representing an increase of 15.5%[167]. Credit Losses and Allowances - The adoption of the CECL model resulted in an increase of the allowance for credit losses by $5.1 million and a reduction of retained earnings by $3.8 million[152]. - Provision for credit losses for the three months ended September 30, 2024, was $582 thousand, compared to a negative provision of $381 thousand for the same period in 2023[167]. - The allowance for credit losses (ACL) as a percentage of gross loans was 0.60% as of September 30, 2024, compared to 0.58% as of September 30, 2023[190]. - The allowance for credit losses increased to $18.6 million at September 30, 2024, up by $477,000 or 2.6% from $18.1 million at December 31, 2023[223]. - The allowance for credit losses to nonperforming loans was 129.85% at September 30, 2024, compared to 123.36% at December 31, 2023[226]. Loan Portfolio and Asset Management - The concentration of the loan portfolio in real estate loans poses additional risks related to market fluctuations and collateral values[148]. - Average loans increased by $86.2 million in Q3 2024, with notable increases in commercial real estate loans by $93.5 million and residential mortgage loans by $6.1 million[173]. - Gross loans reached $3,115,441 thousand, generating interest income of $50,336 thousand, with a yield of 6.43%[183]. - Residential real estate loans amounted to $2,295,573 thousand, contributing $31,267 thousand in interest income at a yield of 5.42%[183]. - Nonperforming loans to total loans remained low at 0.46% as of September 30, 2024, with nonperforming loans totaling $14.3 million, a decrease from $14.7 million at December 31, 2023[221]. Deposits and Funding - Total deposits decreased by $7.8 million, or 0.3%, to $2.72 billion at September 30, 2024, compared to $2.73 billion at December 31, 2023[233]. - Uninsured deposits were estimated at $648.8 million, representing 23.6% of total deposits at September 30, 2024, down from 26.5% at December 31, 2023[234]. - Brokered deposits accounted for 27.6% of total deposits at September 30, 2024, compared to 28.1% at December 31, 2023, totaling $751.0 million[235]. - The average total deposits for the three months ended September 30, 2024, was $2,703,171, with a weighted average rate of 2.88%[238]. - Time deposits increased by $58.5 million, contributing to the overall deposit changes[233]. Interest Income and Expense - Interest income for Q3 2024 totaled $53.8 million, a 10.5% increase from $48.7 million in Q3 2023, primarily due to a 45 basis points increase in loan yield[173]. - Interest expense for Q3 2024 decreased by 4.1% to $23.5 million from $24.6 million in Q3 2023, mainly due to a 44 basis points decrease in deposit costs[175]. - The net interest margin for Q3 2024 increased by 64 basis points to 3.58% from 2.94% in Q3 2023, driven by a 44 basis points increase in yield on average interest-earning assets[179]. - The company anticipates continued growth in interest income driven by an increase in average balances and improved rates[185]. - The company recorded a credit to interest expense of $6.4 million from interest rate derivatives for the three months ended September 30, 2024, up from $1.3 million in the same period of 2023[239]. Risk Management and Economic Conditions - The company faces risks from general economic conditions, including employment levels, interest rates, and inflation, which could affect customer behavior and financial performance[146]. - The risk management framework must effectively mitigate various risks inherent to banking operations, including credit and liquidity risks[149]. - Interest rate risk is identified as the primary source of market risk, arising from timing differences in repricing and maturities of interest-earning assets and interest-bearing liabilities[254][255]. - The company’s liquidity position is supported by liquid assets and access to alternative funding sources, including wholesale/brokered deposits and additional borrowings[243]. - The company is subject to increased competition from other financial institutions and fintech companies, which may impact its market position[149]. Capital and Regulatory Compliance - The company must comply with capital and liquidity requirements, which may affect its ability to raise capital on favorable terms[146]. - The Bank's total capital to risk-weighted assets ratio was 20.03% as of September 30, 2024, compared to 17.60% as of December 31, 2023, indicating a strong capital position[249]. - The company’s capital ratios exceeded all regulatory requirements, categorizing the Bank as "well-capitalized" as of September 30, 2024[247]. - The company declared a cash dividend of $0.23 per share on October 16, 2024, payable on November 8, 2024[250]. - The company maintained $532.2 million in Federal Reserve discount window funds available as of September 30, 2024, compared to $446.3 million as of December 31, 2023[244]. Interest Rate Sensitivity - As of September 30, 2024, a hypothetical +200 basis point increase in interest rates is projected to result in a net interest income increase of 1.70%, while a -200 basis point decrease would lead to a decline of 4.10%[265]. - The Economic Value of Equity (EVE) is projected to decrease by 11.80% under a +300 basis point shock scenario as of September 30, 2024, and by 22.20% under the same scenario as of December 31, 2023[266]. - The sensitivity of EVE to a -200 basis point shock is projected to be 18.60% as of December 31, 2023, indicating a significant potential impact on equity value[266]. - The asset liability committee (ALCO) focuses on ensuring a stable and increasing flow of net interest income through active management of the balance sheet[256]. - The company utilizes income simulations and EVE simulations as primary tools for measuring and managing interest rate risk, assessing potential earnings impacts over a two-year horizon[259].

Financial Performance - Net income for Q3 2024 was $16.7 million, a decrease of 1.4% from Q2 2024, but an increase of 46.1% compared to Q3 2023[1][3] - Noninterest income for Q3 2024 was $6.6 million, a 19.0% increase from Q2 2024 and a 149.0% increase from Q3 2023[9][10] - Net interest income for September 2024 was $30,289,000, compared to $27,085,000 for September 2023, representing an increase of 8.1%[25] - Net income for September 2024 was $16,701,000, up from $14,631,000 in September 2023, reflecting a year-over-year increase of 14.2%[25] - Net income available to common shareholders for the third quarter of 2024 was $16,701 thousand, an increase from $11,428 thousand in the same quarter of 2023, representing a growth of 46.2%[28] Asset and Liability Management - Total assets were $3.57 billion at September 30, 2024, a decrease of 1.3% from June 30, 2024, but an increase of 1.7% from September 30, 2023[15] - Total deposits were $2.72 billion at September 30, 2024, a decrease of 0.8% from June 30, 2024, but an increase of 0.2% from September 30, 2023[17] - Total liabilities decreased to $3,162,021 thousand from $3,208,142 thousand, a decline of about 1.4%[27] - Total assets as of September 30, 2024, were $3,574,669 thousand, compared to $3,476,482 thousand as of September 30, 2023, indicating a year-over-year increase of 2.8%[30] - The bank's total assets increased to $3,580,724 thousand, up from $3,425,186 thousand year-over-year[32] Credit Quality and Provisions - The company recorded a provision for credit losses of $582,000 in Q3 2024, compared to a credit of $128,000 in Q2 2024[20] - Nonperforming assets totaled $15.8 million, or 0.44% of total assets, at September 30, 2024, an increase from $14.5 million at June 30, 2024[21] - The provision for credit losses was $582,000 for September 2024, a decrease from $782,000 in September 2023, indicating improved asset quality[25] - The allowance for credit losses as a percentage of total loans was 0.60% at September 30, 2024, compared to 0.58% at June 30, 2024[21] - The net charge-offs for the period were $24 thousand, with a provision for loan losses of $653 thousand[37] Efficiency and Profitability Ratios - Efficiency ratio for Q3 2024 was 37.0%, compared to 35.9% in Q2 2024 and 43.0% in Q3 2023[13] - The effective tax rate for Q3 2024 was 26.3%, down from 27.5% in Q2 2024 and 27.0% in Q3 2023[14] - The efficiency ratio improved to 37.01% in September 2024 from 37.86% in September 2023, indicating better cost management[25] - The average yield on earning assets for the third quarter of 2024 was 6.36%, compared to 5.92% in the same quarter of 2023, reflecting an increase of 0.44 percentage points[30] Loan and Deposit Composition - Loans held for investment were $3.09 billion at September 30, 2024, a slight decrease of 0.1% from June 30, 2024, but an increase of 1.9% from September 30, 2023[17] - Noninterest-bearing deposits were $552.5 million at September 30, 2024, constituting 20.3% of total deposits[18] - Interest-bearing deposits were $2.17 billion at September 30, 2024, making up 79.7% of total deposits[18] - The bank's residential real estate loans accounted for 73.5% of gross loans held for investment, reflecting a slight decrease from 76.1% in the previous year[34] Growth in Specific Segments - SBA loan production for September 2024 was $35,839,000, significantly higher than $8,297,000 in September 2023, indicating strong growth in this segment[25] - Total noninterest income increased to $6,615 thousand in the third quarter of 2024, up from $2,657 thousand in the same quarter of 2023, marking a significant growth of 148.5%[28]

Core Points - MetroCity Bankshares, Inc. declared a quarterly cash dividend of $0.23 per share on its common stock, payable on November 8, 2024, to shareholders of record as of October 30, 2024 [1] - The board of directors approved the continuation of its share repurchase program, allowing the repurchase of up to 925,250 shares, which is the remaining amount from the previous plan, starting from October 17, 2024, to September 30, 2025 [2][3] Company Overview - MetroCity Bankshares, Inc. is a Georgia corporation and a bank holding company for its wholly-owned banking subsidiary, Metro City Bank, headquartered in the Atlanta metropolitan area, operating 20 full-service branch locations in multi-ethnic communities across several states [4]