MetroCity Bankshares(MCBS) - 2024 Q2 - Quarterly Results

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]