MetroCity Bankshares(MCBS) - 2025 Q1 - Quarterly Results

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].