MetroCity Bankshares(MCBS) - 2024 Q4 - Annual Results

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]