METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2024

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]