MetroCity Bankshares(MCBS) - 2024 Q3 - Quarterly Results

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]