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]

Financial Performance - For the three months ended June 30, 2024, net interest income was $30.712 million, an increase from $24.970 million in the same period of 2023, reflecting a year-over-year growth of 22%[138]. - Net income for the three months ended June 30, 2024, was $16.937 million, representing a 29% increase from $13.108 million in the same period of 2023[138]. - Basic earnings per share for Q2 2024 rose to $0.67 from $0.52 in Q2 2023, while diluted earnings per share increased to $0.66 from $0.51[143]. - Interest income for Q2 2024 totaled $54.1 million, up 14.0% from $47.5 million in Q2 2023, primarily due to a 51 basis points increase in loan yield[144]. - The net interest margin for Q2 2024 improved by 56 basis points to 3.66%, driven by a 55 basis points increase in the yield on average interest-earning assets[150]. - Net income for Q2 2024 was $16.9 million, a 29.2% increase from $13.1 million in Q2 2023, driven by a $5.7 million increase in net interest income[142]. 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[124]. - The provision for credit losses for the three months ended June 30, 2024, was a reversal of $128,000 compared to a provision of $416,000 in the same period of 2023[138]. - The allowance for credit losses as a percentage of gross loans was 0.58% as of June 30, 2024, compared to 0.60% in the same period of 2023[161]. - The allowance for credit losses was $18.0 million at June 30, 2024, a decrease of $152,000, or 0.8%, compared to $18.1 million at December 31, 2023[185]. - The adequacy of reserves for credit losses is critical, influenced by economic conditions and the quality of the loan portfolio[128]. Asset and Deposit Management - As of June 30, 2024, MetroCity Bankshares, Inc. reported total assets of $3.62 billion, total loans of $3.09 billion, total deposits of $2.75 billion, and total shareholders' equity of $407.2 million[133]. - The company's total deposits increased by 0.5% to $2.75 billion as of June 30, 2024, with uninsured deposits decreasing to 23.4% of total deposits from 26.5% at the end of 2023[141]. - Total assets increased $112.5 million, or 3.2%, to $3.62 billion at June 30, 2024 compared to $3.50 billion at December 31, 2023[178]. - The average balance of total deposits was $2,729,933 thousand with a weighted average rate of 2.91% for the six months ended June 30, 2024[197]. - Brokered deposits decreased to $751.7 million, or 27.4% of total deposits, at June 30, 2024, down from $766.3 million, or 28.1% of total deposits, at December 31, 2023[195]. Risk Management - The risk management framework must effectively mitigate various risks, including credit risk and liquidity risk, to ensure financial stability[121]. - The company highlighted the impact of prolonged elevated interest rates and inflation on its financial projections and credit quality[119]. - Interest rate risk is identified as the primary market risk, with management actively monitoring and managing this risk through various simulations and assessments[212][214]. - The company maintains off-balance sheet financial instruments, including commitments to extend credit and standby letters of credit, which involve credit and interest rate risk[210]. Operational Efficiency - The efficiency ratio for the three months ended June 30, 2024, was 35.93%, an improvement from 38.65% in the same period of 2023[138]. - The company faces challenges in maintaining expenses in line with current projections amid competitive pressures from other financial institutions[121]. - Noninterest expense for the three months ended June 30, 2024 was $13.0 million, an increase of $1.6 million, or 13.7%, compared to $11.5 million for the same period in 2023[172]. Capital and Liquidity - The company's capital ratios remain strong, with common equity Tier 1 and total capital ratios at 18.25% and 19.12%, respectively, as of June 30, 2024[141]. - The company's total capital ratio was 19.12% as of June 30, 2024, exceeding the minimum requirement for "well-capitalized" institutions[208]. - The Tier 1 capital ratio was 18.25% as of June 30, 2024, above the required 8.50%[208]. - The liquidity position is supported by management of liquid assets and access to alternative sources of funds, including wholesale/brokered deposits and additional borrowings[202]. Market and Economic Conditions - The concentration of the loan portfolio in real estate loans poses risks related to market fluctuations and borrower financial health[120]. - The company is subject to regulatory scrutiny and must comply with capital and liquidity requirements, impacting its growth plans[118]. - The Economic Value of Equity (EVE) sensitivity showed a potential decrease of (16.30)% in a +300 basis point shock scenario as of June 30, 2024[220].

Financial Performance - Net income for Q2 2024 was $16.9 million, a 15.8% increase from Q1 2024 and a 29.2% increase from Q2 2023[1][5] - Net income for the six months ended June 30, 2024, was $31.567 million, compared to $28.838 million for the same period in 2023[36] - The company reported a return on average equity of 17.10% for Q2 2024, up from 15.41% in Q1 2024 and 11.71% in Q2 2023[36] Income and Expenses - Noninterest income for Q2 2024 was $5.6 million, a decrease of 0.2% from Q1 2024, but an increase of 18.5% from Q2 2023[12][13] - Noninterest expense for Q2 2024 totaled $13.0 million, an increase of 5.4% from Q1 2024[15] - The efficiency ratio improved to 35.9% in Q2 2024 from 37.9% in Q1 2024[18] Interest and Loans - Net interest income for Q2 2024 was $30.712 million, an increase from $27.085 million in Q1 2024 and $26.122 million in Q2 2023[36] - Net interest margin increased by 42 basis points to 3.66% in Q2 2024 compared to 3.24% in Q1 2024[9] - Loans held for investment were $3.09 billion, a decrease of $25.4 million, or 0.8%, from Q1 2024[22] Assets and Liabilities - Total assets decreased by $31.8 million, or 0.9%, from Q1 2024 to $3.62 billion as of June 30, 2024[20] - Total liabilities decreased to $3,208,142,000 as of June 30, 2024, down from $3,250,615,000 as of March 31, 2024[39] - Total deposits were $2.75 billion, a decrease of $68.0 million, or 2.4%, from Q1 2024[23] Credit Quality - The company recorded a credit provision for credit losses of $128,000 in Q2 2024, a decrease from $140,000 in Q1 2024 and $416,000 in Q2 2023[27] - Nonperforming assets totaled $27.0 million, or 0.75% of total assets, as of June 30, 2024, down from $30.3 million (0.83%) at March 31, 2024, but up from $23.6 million (0.68%) at June 30, 2023[28] - The allowance for credit losses as a percentage of total loans was 0.58% as of June 30, 2024, unchanged from March 31, 2024, and down from 0.60% at June 30, 2023[29] Economic Outlook - The company anticipates potential impacts from economic conditions, including inflation and interest rate fluctuations, which may affect future financial performance[31]

Core Insights - MetroCity Bankshares, Inc. reported a net income of $16.9 million for Q2 2024, an increase from $14.6 million in Q1 2024 and $13.1 million in Q2 2023, reflecting strong financial performance [5][14] - Total assets decreased by $31.8 million, or 0.9%, from Q1 2024 to $3.62 billion, but increased by $140.3 million, or 4.0%, compared to Q2 2023 [10] - Loans held for investment were $3.09 billion, a decrease of $25.4 million, or 0.8%, from Q1 2024, but an increase of $69.8 million, or 2.3%, from Q2 2023 [10] - Total deposits were $2.75 billion, a decrease of $68.0 million, or 2.4%, from Q1 2024, but an increase of $47.4 million, or 1.8%, from Q2 2023 [11] - The efficiency ratio improved to 35.9% in Q2 2024 from 37.9% in Q1 2024 and 38.7% in Q2 2023, indicating better cost management [9] Financial Performance - Net interest income for the six months ended June 30, 2024, was $57.8 million, up from $51.2 million for the same period in 2023 [14][16] - Noninterest income for the six months ended June 30, 2024, totaled $11.1 million, compared to $10.8 million for the same period in 2023 [15] - Noninterest expense increased by $3.1 million, or 14.0%, to $25.4 million for the six months ended June 30, 2024, primarily due to higher salaries and employee benefits [9] Asset Quality - Nonperforming assets totaled $27.0 million, or 0.75% of total assets, at June 30, 2024, a decrease from $30.3 million, or 0.83% of total assets, at March 31, 2024 [12][17] - The allowance for credit losses as a percentage of total loans was 0.58% at June 30, 2024, unchanged from March 31, 2024 [12][17] Capital and Liquidity - The common equity tier 1 ratio was 18.00% at June 30, 2024, indicating strong capital adequacy [14] - The company had $1.27 billion of available borrowing capacity at the Federal Home Loan Bank and other financial institutions as of June 30, 2024 [11]

Core Viewpoint - MetroCity Bankshares, Inc. has declared a quarterly cash dividend of $0.20 per share on its common stock, payable on August 9, 2024, to shareholders of record as of July 31, 2024 [1] Company Overview - MetroCity Bankshares, Inc. is a Georgia corporation and serves as a bank holding company for its wholly-owned banking subsidiary, Metro City Bank, headquartered in the Atlanta metropolitan area [2] - Metro City Bank operates 20 full-service branch locations across multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to _______ (I.R.S. Employer Identification No.) 5114 Buford Highway Doraville, Georgia 30340 (Address of principal executive offices ...

Exhibit 99.1 FOR IMMEDIATE RELEASE METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2024 ATLANTA, GA (April 19, 2024) – MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ: MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $14.6 million, or $0.57 per diluted share, for the first quarter of 2024, compared to $11.3 million, or $0.44 per diluted share, for the fourth quarter of 2023, and $15.7 million, or $0.62 per diluted share, for the first quar ...