ATLANTA, Jan. 24, 2020 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") MCBS, holding company for Metro City Bank (the "Bank"), today reported net income of $10.7 million, or $0.42 per diluted share, for the fourth quarter of 2019, compared to $12.4 million, or $0.50 per diluted share, for the third quarter of 2019, and $9.7 million, or $0.40 per diluted share, for the fourth quarter of 2018. For the year ended December 31, 2019, net income was $44.7 million, or $1.81 per diluted share, compared to $41.3 million, or $1.69 per diluted share, for the year ended December 31, 2018.
On October 30, 2019, the Company completed its initial public offering of 1,224,513 shares of common stock, including the exercise of the over-allotment of 224,513 shares, for net proceeds of $13.9 million after deducting underwriting discounts, commissions, and estimated offering expenses.
Fourth Quarter 2019 Highlights:
- Net income of $10.7 million, or $0.42 per diluted share.
- Annualized return on average assets was 2.57%, compared to 3.07% for the third quarter of 2019 and 2.68% for the fourth quarter of 2018.
- Annualized return on average equity was 20.40%, compared to 26.44% for the third quarter of 2019 and 23.84% for the fourth quarter of 2018.
- Efficiency ratio of 40.5%, compared to 37.7% for the third quarter of 2019 and 44.5% for the fourth quarter of 2018.
Full Year 2019 Highlights:
- Net income of $44.7 million, or $1.81 per diluted share, compared to $41.3 million, or $1.69 per diluted share, in 2018.
- Return on average assets was 2.87%, compared to 3.01% in 2018.
- Return on average equity was 24.23%, compared to 27.95% in 2018.
- Efficiency ratio was 39.7%, compared to 40.3% in 2018.
- Total assets increased by $199.2 million, or 13.9%, to $1.63 billion from $1.43 billion at December 31, 2018.
- Total loans, including loans held for sale, increased by $46.5 million, or 3.9%, to $1.25 billion from $1.20 billion at December 31, 2018.
- The yield earned on average loans, including loans held for sale, was 6.14%, compared to 5.92% in 2018.
- Net charge-offs to average loans was a net recovery of 0.02% compared to a net charge-off of 0.14% in 2018.
Results of Operations
Net Income
Net income was $10.7 million for the fourth quarter of 2019, a decrease of $1.7 million, or 13.6%, from $12.4 million for the third quarter of 2019. This decrease was primarily due to decreases in net interest income of $1.0 million and noninterest income of $1.6 million, offset by decreases in noninterest expense of $322,000 and income tax expense of $668,000. Net income increased $934,000, or 9.6%, in the fourth quarter of 2019 compared to net income of $9.7 million for the fourth quarter of 2018. This increase was primarily due to increases in net interest income of $469,000 and noninterest income of $256,000, and a decrease in noninterest expense of $645,000, offset by an increase in income tax expense of $484,000.
Net Interest Income and Net Interest Margin
Interest income totaled $20.6 million for the fourth quarter of 2019, a decrease of $1.3 million, or 5.9%, from the previous quarter, primarily due to an 18 basis point decrease in the yield on average loans, including loans held for sale, and an 81 basis points decrease in the yield on average federal funds sold and interest-bearing cash accounts. As compared to the fourth quarter of 2018, interest income increased by $1.6 million, or 8.4%, primarily due to the 12 basis point increase in the yield on average loans coupled with a $64.2 million increase in average loan balances.
Interest expense totaled $5.7 million for the fourth quarter of 2019, a decrease of $248,000, or 4.2%, from the previous quarter, primarily due to a 14 basis point decrease in deposit costs. As compared to the fourth quarter of 2018, interest expense increased in the fourth quarter of 2019 by $1.1 million, or 24.9%, primarily due to a 26 basis points increase in deposit costs coupled with a $76.6 million increase in average interest-bearing deposits balances.
The net interest margin for the fourth quarter of 2019 was 3.82% compared to 4.22% for the previous quarter, a decrease of 40 basis points. The cost of interest-bearing liabilities decreased by 17 basis points to 2.06%, while the yield on interest-earning assets decreased by 51 basis points to 5.27% from 5.78% for the previous quarter. Average earning assets increased by $49.3 million, due to an increase in lower yielding assets including $101.1 million in federal funds sold and interest-earning cash accounts, offset by a $51.2 million decrease in average loans. Average interest-bearing liabilities increased by $37.3 million as average interest-bearing deposits increased by $11.7 million and average borrowings increased by $25.5 million.
As compared to the same period a year ago, the net interest margin for the fourth quarter of 2019 decreased by 38 basis points to 3.82% from 4.20%, due to an 18 basis point increase in the cost of interest-bearing liabilities of $1.09 billion and a decrease of 24 basis points in the yield on interest-earning assets of $1.55 billion. Average earning assets increased by $183.8 million, primarily due to an increase of $64.2 million in average loans and $122.9 million in federal funds sold and interest-earning cash accounts. Average interest-bearing liabilities increased by $134.6 million, driven by an increase in average interest-bearing deposits of $76.6 million and average borrowings of $58.0 million.
Noninterest Income
Noninterest income for the fourth quarter of 2019 was $9.4 million, a decrease of $1.6 million, or 14.9%, from the third quarter of 2019, primarily due to lower mortgage and SBA servicing income and gains on sale, as well a decrease in other commissions and fees earned from mortgage loan originations as loan volume declined during the fourth quarter of 2019.
Compared to the same period a year ago, noninterest income for the quarter increased by $256,000, or 2.8%, primarily due to the increase in the gains earned from the sales of SBA and mortgage loans.
Noninterest Expense
Noninterest expense for the fourth quarter of 2019 totaled $9.8 million, a decrease of $322,000, or 3.2%, from $10.2 million for the third quarter of 2019. The decrease was primarily attributable to lower salaries and employee benefits. Compared to the fourth quarter of 2018, noninterest expense decreased by $645,000, or 6.2%, partially due to lower mortgage related expenses.
The Company's efficiency ratio was 40.5% in the fourth quarter of 2019 compared with 37.7% and 44.5% for the third quarter of 2019 and fourth quarter of 2018, respectively.
Income Tax Expense
The Company's effective tax rate for the fourth quarter of 2019 was 26.2%, compared to 26.5% for the third quarter of 2019 and 25.4% for the fourth quarter of 2018. The effective tax rate for the year ended 2019 was 26.5% compared to 26.2% for the year ended 2018.
Balance Sheet
Total Assets
Total assets were $1.63 billion at December 31, 2019, a decrease of $12.9 million, or 0.8%, from $1.64 billion at September 30, 2019, and an increase of $199.2 million, or 13.9%, from $1.43 billion at December 31, 2018. The $12.9 million decrease from the prior quarter was mainly due to a decrease in loans held for investment of $97.9 million, offset by a $85.8 million increase in loans held for sale. The $199.2 million increase from the prior year end was primarily due to increases in cash and due from banks of $140.2 million and total loans, including loans held for sale, of $46.5 million.
Loans
Loans held for investment at December 31, 2019, were $1.16 billion, a decrease of $97.9 million, or 7.8%, compared to $1.26 billion at September 30, 2019, and an increase of $17.6 million, or 1.5%, compared to $1.14 billion at December 31, 2018. The decline in loans held for investment during the fourth quarter of 2019 was primarily due to a $82.1 million decrease in residential mortgages and a $11.7 million decrease in commercial real estate loans from the previous quarter. Loans held for sale were $85.8 million at December 31, 2019, compared to zero at September 30, 2019 and $56.9 million at December 31, 2018.
Deposits
Total deposits at December 31, 2019 were $1.31 billion, a decrease of $28.0 million, or 2.1%, compared to total deposits of $1.34 billion at September 30, 2019, and an increase of $63.1 million, or 5.1%, compared to total deposits of $1.24 billion at December 31, 2018. The decrease from the prior quarter was primarily due to the decrease in noninterest bearing deposits and time deposits.
Noninterest bearing deposits were $292.0 million at September 30, 2019, compared to $311.2 million at September 30, 2019, and $299.2 million at December 31, 2018. Noninterest bearing deposits constituted 22.3% of total deposits at December 31, 2019, compared to 23.3% at September 30, 2019, and 24.0% at December 31, 2018. Interest bearing deposits were $1.015 billion at December 31, 2019, compared to $1.024 billion at September 30, 2019, and $945.1 million at December 31, 2018. Interest bearing deposits constituted 77.7% of total deposits at December 31, 2019, compared to 76.7% at September 30, 2019, and 76.0% at December 31, 2018.
Asset Quality
The Company recorded no provision for loan losses during the fourth quarter of 2019 as asset quality remained strong. Annualized net charge-offs to average loans for the fourth quarter of 2019 was 0.00%, compared to a net recovery of 0.11% for the third quarter of 2019, and a net charge-off of 0.10% for the fourth quarter of 2018. Annualized net charge-offs to average loans for the year ended December 31, 2019 was a net recovery of 0.02% compared to net charge-off of 0.14% for the year ended December 31, 2018
Nonperforming assets totaled $15.1 million, or 0.93% of total assets, at December 31, 2019, an increase of $178,000 from $14.9 million, or 0.91% of total assets, at September 30, 2019, and an increase of $6.1 million from $9.0 million, or 0.63% of total assets, at December 31, 2018. The slight increase during the quarter was due to a $1.2 million increase in nonaccrual residential mortgage loans, offset by a $509,000 decrease in loans past due ninety days and still accruing and a $510,000 decrease in accruing troubled debt restructured loans.
Allowance for loan losses as a percentage of total loans held for investment was 0.59% at December 31, 2019, compared to 0.54% and 0.58% at September 30, 2019 and December 31, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans was 46.54% at December 31, 2019, compared to 47.19% and 74.12% at September 30, 2019 and December 31, 2018, respectively.
About MetroCity Bankshares, Inc.
MetroCity Bankshares, Inc. is a Georgia corporation and a bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta metropolitan area. Founded in 2006, Metro City Bank currently operates 19 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. To learn more about Metro City Bank, visit www.metrocitybank.bank.
Forward-Looking Statements
Statements in this press release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this press release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: business and economic conditions, particularly those affecting the financial services; changes in the interest rate environment, including changes to the federal funds rate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company's profitability; and legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the SEC on October 3, 2019 (Registration No. 333-233625), relating to our initial public offering, and in other documents that we file with the SEC from time to time, which are available on the SEC's website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.
Contacts
Farid Tan | Lucas Stewart |
President & Chief Financial Officer | SVP/Senior Accounting Officer |
770-455-4978 | 678-580-6414 |
METROCITY BANKSHARES, INC. | ||||||||||||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||||||||
As of or for the Three Months Ended | As of or for the Year Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Interest income | $ | 20,625 | $ | 21,908 | $ | 20,818 | $ | 19,862 | $ | 19,023 | $ | 83,213 | $ | 72,879 | ||||||||
Interest expense | 5,681 | 5,929 | 5,570 | 5,058 | 4,548 | 22,238 | 14,675 | |||||||||||||||
Net interest income | 14,944 | 15,979 | 15,248 | 14,804 | 14,475 | 60,975 | 58,204 | |||||||||||||||
Provision for loan losses | — | — | — | — | 48 | — | 1,237 | |||||||||||||||
Noninterest income | 9,360 | 11,001 | 12,098 | 7,434 | 9,104 | 39,893 | 37,609 | |||||||||||||||
Noninterest expense | 9,840 | 10,162 | 9,934 | 10,064 | 10,485 | 40,000 | 38,575 | |||||||||||||||
Income tax expense | 3,794 | 4,462 | 4,452 | 3,442 | 3,310 | 16,150 | 14,667 | |||||||||||||||
Net income | 10,670 | 12,356 | 12,960 | 8,732 | 9,736 | 44,718 | 41,334 | |||||||||||||||
Per share data: | ||||||||||||||||||||||
Basic income per share | $ | 0.42 | $ | 0.51 | $ | 0.54 | $ | 0.36 | $ | 0.40 | $ | 1.82 | $ | 1.71 | ||||||||
Diluted income per share | $ | 0.42 | $ | 0.50 | $ | 0.53 | $ | 0.36 | $ | 0.40 | $ | 1.81 | $ | 1.69 | ||||||||
Dividends per share | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.42 | $ | 0.38 | ||||||||
Book value per share (at period end) | $ | 8.49 | $ | 8.00 | $ | 7.58 | $ | 7.20 | $ | 6.95 | $ | 8.49 | $ | 6.95 | ||||||||
Shares of common stock outstanding | 25,529,891 | 24,305,378 | 24,305,378 | 24,148,062 | 24,258,062 | 25,529,891 | 24,258,062 | |||||||||||||||
Weighted average diluted shares | 25,586,733 | 24,502,621 | 24,386,049 | 24,540,538 | 24,591,537 | 24,729,535 | 24,475,698 | |||||||||||||||
Performance ratios: | ||||||||||||||||||||||
Return on average assets | 2.57 | % | 3.07 | % | 3.44 | % | 2.42 | % | 2.68 | % | 2.87 | % | 3.01 | % | ||||||||
Return on average equity | 20.40 | 26.44 | 29.61 | 21.08 | 23.84 | 24.23 | 27.95 | |||||||||||||||
Dividend payout ratio | 26.36 | 21.79 | 18.85 | 28.10 | 25.21 | 23.26 | 22.48 | |||||||||||||||
Yield on total loans | 6.04 | 6.22 | 6.11 | 6.18 | 5.92 | 6.14 | 5.92 | |||||||||||||||
Yield on average earning assets | 5.27 | 5.78 | 5.83 | 5.80 | 5.51 | 5.66 | 5.60 | |||||||||||||||
Cost of average interest bearing liabilities | 2.06 | 2.23 | 2.23 | 2.09 | 1.88 | 2.15 | 1.60 | |||||||||||||||
Cost of deposits | 2.15 | 2.29 | 2.23 | 2.10 | 1.89 | 2.19 | 1.60 | |||||||||||||||
Net interest margin | 3.82 | 4.22 | 4.27 | 4.32 | 4.20 | 4.15 | 4.48 | |||||||||||||||
Efficiency ratio(1) | 40.49 | 37.66 | 36.33 | 45.26 | 44.47 | 39.66 | 40.26 | |||||||||||||||
Asset quality data (at period end): | ||||||||||||||||||||||
Net charge-offs/(recoveries) to average loans held for investment | 0.00 | % | (0.11) | % | 0.01 | % | 0.04 | % | 0.10 | % | (0.02) | % | 0.14 | % | ||||||||
Nonperforming assets to gross loans and OREO | 1.30 | 1.18 | 1.41 | 0.98 | 0.78 | 1.30 | 0.78 | |||||||||||||||
ALL to nonperforming loans | 46.54 | 47.19 | 38.67 | 58.46 | 74.12 | 46.54 | 74.12 | |||||||||||||||
ALL to loans held for investment | 0.59 | 0.54 | 0.54 | 0.57 | 0.58 | 0.59 | 0.58 | |||||||||||||||
Balance sheet and capital ratios: | ||||||||||||||||||||||
Gross loans held for investment to deposits | 88.97 | % | 94.46 | % | 91.88 | % | 88.68 | % | 92.08 | % | 88.97 | % | 92.08 | % | ||||||||
Noninterest bearing deposits to deposits | 22.34 | 23.30 | 23.87 | 23.38 | 24.05 | 22.34 | 24.05 | |||||||||||||||
Common equity to assets | 13.28 | 11.82 | 12.09 | 11.70 | 11.77 | 13.28 | 11.77 | |||||||||||||||
Leverage ratio | 12.70 | 11.68 | 11.67 | 11.35 | 11.14 | 12.70 | 11.14 | |||||||||||||||
Common equity tier 1 ratio | 21.28 | 18.82 | 17.99 | 17.40 | 17.44 | 21.28 | 17.44 | |||||||||||||||
Tier 1 risk-based capital ratio | 21.28 | 18.82 | 17.99 | 17.40 | 17.44 | 21.28 | 17.44 | |||||||||||||||
Total risk-based capital ratio | 21.98 | 19.51 | 18.66 | 18.09 | 18.16 | 21.98 | 18.16 | |||||||||||||||
Mortgage and SBA loan data: | ||||||||||||||||||||||
Mortgage loans serviced for others | $ | 1,168,601 | $ | 1,122,551 | $ | 1,016,352 | $ | 839,352 | $ | 804,188 | $ | 1,168,601 | $ | 804,188 | ||||||||
Mortgage loan production | 112,259 | 163,517 | 188,713 | 151,068 | 182,889 | 615,557 | 716,140 | |||||||||||||||
Mortgage loan sales | 106,548 | 152,503 | 205,893 | 55,123 | 144,991 | 520,067 | 536,001 | |||||||||||||||
SBA loans serviced for others | 441,593 | 446,266 | 443,830 | 425,694 | 431,201 | 441,593 | 431,201 | |||||||||||||||
SBA loan production | 30,763 | 48,878 | 45,838 | 29,556 | 37,890 | 155,035 | 121,009 | |||||||||||||||
SBA loan sales | 30,065 | 28,914 | 28,675 | 30,751 | 17,036 | 118,405 | 93,297 | |||||||||||||||
________________________________ | ||||||||||||||||||||||
(1) Represents noninterest expense divided by the sum of net interest income plus noninterest income. | ||||||||||||||||||||||
METROCITY BANKSHARES, INC. | |||||||||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||
As of the Quarter Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 270,496 | $ | 264,981 | $ | 151,117 | $ | 105,510 | $ | 130,263 | |||||
Federal funds sold | 5,917 | 9,567 | 5,966 | 7,140 | 8,164 | ||||||||||
Cash and cash equivalents | 276,413 | 274,548 | 157,083 | 112,650 | 138,427 | ||||||||||
Securities purchased under agreements to resell | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||
Securities available for sale (at fair value) | 15,695 | 15,913 | 17,846 | 18,712 | 18,888 | ||||||||||
Loans | 1,161,162 | 1,259,046 | 1,188,419 | 1,136,654 | 1,143,575 | ||||||||||
Allowance for loan losses | (6,839) | (6,850) | (6,483) | (6,526) | (6,645) | ||||||||||
Loans less allowance for loan losses | 1,154,323 | 1,252,196 | 1,181,936 | 1,130,128 | 1,136,930 | ||||||||||
Loans held for sale | 85,793 | — | 69,686 | 141,177 | 56,865 | ||||||||||
Accrued Interest Receivable | 5,101 | 5,465 | 5,290 | 5,439 | 4,957 | ||||||||||
Federal Home Loan Bank stock | 3,842 | 3,842 | 1,292 | 1,292 | 1,163 | ||||||||||
Premises and equipment, net | 14,460 | 14,484 | 14,465 | 14,480 | 14,391 | ||||||||||
Operating lease right-of-use asset | 11,957 | 12,431 | 12,783 | — | — | ||||||||||
Foreclosed real estate, net | 423 | 423 | — | — | — | ||||||||||
SBA servicing asset, net | 8,188 | 8,566 | 8,682 | 8,500 | 8,446 | ||||||||||
Mortgage servicing asset, net | 18,068 | 17,740 | 16,771 | 14,909 | 14,934 | ||||||||||
Bank owned life insurance | 20,219 | 20,101 | 19,982 | 19,865 | 19,749 | ||||||||||
Other assets | 2,376 | 4,036 | 3,693 | 3,231 | 2,900 | ||||||||||
Total assets | $ | 1,631,858 | $ | 1,644,745 | $ | 1,524,509 | $ | 1,485,383 | $ | 1,432,650 | |||||
LIABILITIES | |||||||||||||||
Noninterest-bearing deposits | $ | 292,008 | $ | 311,198 | $ | 309,343 | $ | 300,228 | $ | 299,182 | |||||
Interest-bearing deposits | 1,015,369 | 1,024,154 | 986,844 | 983,751 | 945,050 | ||||||||||
Total deposits | 1,307,377 | 1,335,352 | 1,296,187 | 1,283,979 | 1,244,232 | ||||||||||
Federal Home Loan Bank advances | 60,000 | 60,000 | — | — | — | ||||||||||
Other borrowings | 3,129 | 3,154 | 3,585 | 3,752 | 4,257 | ||||||||||
Operating lease liability | 12,476 | 12,922 | 13,253 | — | — | ||||||||||
Accrued interest payable | 890 | 940 | 1,415 | 1,663 | 1,251 | ||||||||||
Other liabilities | 31,262 | 37,955 | 25,752 | 22,238 | 14,302 | ||||||||||
Total liabilities | $ | 1,415,134 | $ | 1,450,323 | $ | 1,340,192 | $ | 1,311,632 | $ | 1,264,042 | |||||
SHAREHOLDERS' EQUITY | |||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||
Common stock | 255 | 243 | 243 | 242 | 242 | ||||||||||
Additional paid-in capital | 53,854 | 39,526 | 39,096 | 38,746 | 39,915 | ||||||||||
Retained earnings | 162,616 | 154,652 | 144,989 | 134,833 | 128,555 | ||||||||||
Accumulated other comprehensive income (loss) | (1) | 1 | (11) | (70) | (104) | ||||||||||
Total shareholders' equity | 216,724 | 194,422 | 184,317 | 173,751 | 168,608 | ||||||||||
Total liabilities and shareholders' equity | $ | 1,631,858 | $ | 1,644,745 | $ | 1,524,509 | $ | 1,485,383 | $ | 1,432,650 | |||||
METROCITY BANKSHARES, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Interest and dividend income: | |||||||||||||||||||||
Loans, including Fees | $ | 19,483 | $ | 20,857 | $ | 20,159 | $ | 18,839 | $ | 18,116 | $ | 79,338 | $ | 70,246 | |||||||
Other investment income | 1,023 | 907 | 496 | 868 | 748 | 3,294 | 2,169 | ||||||||||||||
Federal funds sold | 119 | 144 | 163 | 155 | 159 | 581 | 464 | ||||||||||||||
Total interest income | 20,625 | 21,908 | 20,818 | 19,862 | 19,023 | 83,213 | 72,879 | ||||||||||||||
Interest expense: | |||||||||||||||||||||
Deposits | 5,576 | 5,873 | 5,445 | 5,057 | 4,545 | 21,951 | 14,011 | ||||||||||||||
FHLB advances and other borrowings | 105 | 56 | 125 | 1 | 3 | 287 | 664 | ||||||||||||||
Total interest expense | 5,681 | 5,929 | 5,570 | 5,058 | 4,548 | 22,238 | 14,675 | ||||||||||||||
Net interest income | 14,944 | 15,979 | 15,248 | 14,804 | 14,475 | 60,975 | 58,204 | ||||||||||||||
Provision for loan losses | — | — | — | — | 48 | — | 1,237 | ||||||||||||||
Net interest income after provision for loan losses | 14,944 | 15,979 | 15,248 | 14,804 | 14,427 | 60,975 | 56,967 | ||||||||||||||
Noninterest income: | |||||||||||||||||||||
Service charges on deposit accounts | 296 | 294 | 262 | 255 | 260 | 1,107 | 1,036 | ||||||||||||||
Other service charges, commissions and fees | 2,335 | 2,592 | 3,058 | 2,399 | 2,727 | 10,384 | 10,395 | ||||||||||||||
Gain on sale of residential mortgage loans | 2,687 | 2,901 | 2,615 | 938 | 1,723 | 9,141 | 5,679 | ||||||||||||||
Mortgage servicing income, net | 2,046 | 2,594 | 3,315 | 1,339 | 2,715 | 9,294 | 11,994 | ||||||||||||||
Gain on sale of SBA loans | 1,148 | 1,404 | 1,565 | 1,327 | 577 | 5,444 | 4,616 | ||||||||||||||
SBA servicing income, net | 665 | 900 | 1,137 | 1,043 | 791 | 3,745 | 3,119 | ||||||||||||||
Other income | 183 | 316 | 146 | 133 | 311 | 778 | 770 | ||||||||||||||
Total noninterest income | 9,360 | 11,001 | 12,098 | 7,434 | 9,104 | 39,893 | 37,609 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||||
Salaries and employee benefits | 5,997 | 6,573 | 6,037 | 6,316 | 6,562 | 24,923 | 23,569 | ||||||||||||||
Occupancy | 1,202 | 1,161 | 1,231 | 1,155 | 1,133 | 4,749 | 4,086 | ||||||||||||||
Data Processing | 264 | 245 | 227 | 293 | 198 | 1,029 | 842 | ||||||||||||||
Advertising | 194 | 142 | 143 | 170 | 156 | 649 | 613 | ||||||||||||||
Other expenses | 2,183 | 2,041 | 2,296 | 2,130 | 2,436 | 8,650 | 9,465 | ||||||||||||||
Total noninterest expense | 9,840 | 10,162 | 9,934 | 10,064 | 10,485 | 40,000 | 38,575 | ||||||||||||||
Income before provision for income taxes | 14,464 | 16,818 | 17,412 | 12,174 | 13,046 | 60,868 | 56,001 | ||||||||||||||
Provision for income taxes | 3,794 | 4,462 | 4,452 | 3,442 | 3,310 | 16,150 | 14,667 | ||||||||||||||
Net income available to common shareholders | $ | 10,670 | $ | 12,356 | $ | 12,960 | $ | 8,732 | $ | 9,736 | $ | 44,718 | $ | 41,334 | |||||||
METROCITY BANKSHARES, INC. | |||||||||||||||||||||||||
AVERAGE BALANCES AND YIELDS/RATES | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Average | Interest and | Yield / | Average | Interest and | Yield / | Average | Interest and | Yield / | |||||||||||||||||
(Dollars in thousands) | Balance | Fees | Rate | Balance | Fees | Rate | Balance | Fees | Rate | ||||||||||||||||
Earning Assets: | |||||||||||||||||||||||||
Federal funds sold and other investments(1) | $ | 242,388 | $ | 954 | 1.56 | % | $ | 141,239 | $ | 842 | 2.37 | % | $ | 119,502 | $ | 675 | 2.24 | % | |||||||
Securities purchased under agreements to resell | 15,000 | 87 | 2.30 | 15,000 | 107 | 2.83 | 15,000 | 108 | 2.86 | ||||||||||||||||
Securities available for sale | 15,823 | 101 | 2.53 | 16,486 | 102 | 2.45 | 19,172 | 124 | 2.57 | ||||||||||||||||
Total investments | 273,211 | 1,142 | 1.66 | 172,725 | 1,051 | 2.41 | 153,674 | 907 | 2.34 | ||||||||||||||||
Construction and development | 30,508 | 472 | 6.14 | 34,903 | 579 | 6.58 | 42,857 | 675 | 6.25 | ||||||||||||||||
Commercial real estate | 471,667 | 7,651 | 6.44 | 474,455 | 8,210 | 6.87 | 412,832 | 6,837 | 6.57 | ||||||||||||||||
Commercial and industrial | 48,664 | 820 | 6.69 | 46,931 | 837 | 7.08 | 32,300 | 578 | 7.10 | ||||||||||||||||
Residential real estate | 726,671 | 10,493 | 5.73 | 772,068 | 11,181 | 5.75 | 723,413 | 9,967 | 5.47 | ||||||||||||||||
Consumer and other | 1,778 | 47 | 10.49 | 2,142 | 50 | 9.26 | 3,650 | 59 | 6.41 | ||||||||||||||||
Gross loans(2) | 1,279,288 | 19,483 | 6.04 | 1,330,499 | 20,857 | 6.22 | 1,215,052 | 18,116 | 5.92 | ||||||||||||||||
Total earning assets | 1,552,499 | 20,625 | 5.27 | 1,503,224 | 21,908 | 5.78 | 1,368,726 | 19,023 | 5.51 | ||||||||||||||||
Noninterest-earning assets | 94,805 | 95,437 | 74,850 | ||||||||||||||||||||||
Total assets | 1,647,304 | 1,598,661 | 1,443,576 | ||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||
NOW and savings deposits | 51,259 | 40 | 0.31 | 49,880 | 40 | 0.32 | 61,264 | 57 | 0.37 | ||||||||||||||||
Money market deposits | 173,223 | 773 | 1.77 | 152,867 | 822 | 2.13 | 62,229 | 221 | 1.41 | ||||||||||||||||
Time deposits | 806,764 | 4,763 | 2.34 | 816,752 | 5,011 | 2.43 | 831,187 | 4,267 | 2.04 | ||||||||||||||||
Total interest-bearing deposits | 1,031,246 | 5,576 | 2.15 | 1,019,499 | 5,873 | 2.29 | 954,680 | 4,545 | 1.89 | ||||||||||||||||
Borrowings | 62,610 | 105 | 0.67 | 37,075 | 56 | 0.60 | 4,599 | 3 | 0.26 | ||||||||||||||||
Total interest-bearing liabilities | 1,093,856 | 5,681 | 2.06 | 1,056,574 | 5,929 | 2.23 | 959,279 | 4,548 | 1.88 | ||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||
Noninterest-bearing deposits | 291,260 | 303,759 | 297,217 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 54,652 | 52,954 | 25,072 | ||||||||||||||||||||||
Total noninterest-bearing liabilities | 345,912 | 356,713 | 322,289 | ||||||||||||||||||||||
Shareholders' equity | 207,536 | 185,374 | 162,008 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,647,304 | $ | 1,598,661 | $ | 1,443,576 | |||||||||||||||||||
Net interest income | $ | 14,944 | $ | 15,979 | $ | 14,475 | |||||||||||||||||||
Net interest spread | 3.21 | 3.55 | 3.63 | ||||||||||||||||||||||
Net interest margin | 3.82 | 4.22 | 4.20 | ||||||||||||||||||||||
________________________________ | |||||||||||||||||||||||||
(1) Includes income and average balances for term federal funds sold, interest-earning time deposits and other miscellaneous interest-earning assets. | |||||||||||||||||||||||||
(2) Average loan balances include nonaccrual loans and loans held for sale. | |||||||||||||||||||||||||
METROCITY BANKSHARES, INC. | |||||||||||||||||
AVERAGE BALANCES AND YIELDS/RATES | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||
Average | Interest and | Yield / | Average | Interest and | Yield / | ||||||||||||
(Dollars in thousands) | Balance | Fees | Rate | Balance | Fees | Rate | |||||||||||
Earning Assets: | |||||||||||||||||
Federal funds sold and other investments(1) | $ | 145,096 | $ | 3,010 | 2.07 | % | $ | 79,699 | $ | 1,758 | 2.21 | % | |||||
Securities purchased under agreements to resell | 15,000 | 421 | 2.81 | 15,000 | 372 | 2.48 | |||||||||||
Securities available for sale | 17,413 | 444 | 2.55 | 20,174 | 503 | 2.49 | |||||||||||
Total investments | 177,509 | 3,875 | 2.18 | 114,873 | 2,633 | 2.29 | |||||||||||
Construction and development | 33,567 | 2,088 | 6.22 | 46,050 | 2,763 | 6.00 | |||||||||||
Commercial real estate | 458,259 | 30,864 | 6.74 | 394,770 | 25,521 | 6.46 | |||||||||||
Commercial and industrial | 43,003 | 3,049 | 7.09 | 36,208 | 2,507 | 6.92 | |||||||||||
Residential real estate | 755,244 | 43,130 | 5.71 | 702,753 | 39,058 | 5.56 | |||||||||||
Consumer and other | 2,310 | 207 | 8.96 | 5,961 | 397 | 6.66 | |||||||||||
Gross loans(2) | 1,292,383 | 79,338 | 6.14 | 1,185,742 | 70,246 | 5.92 | |||||||||||
Total earning assets | 1,469,892 | 83,213 | 5.66 | 1,300,615 | 72,879 | 5.60 | |||||||||||
Noninterest-earning assets | 86,106 | 73,585 | |||||||||||||||
Total assets | 1,555,998 | 1,374,200 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW and savings deposits | 51,818 | 172 | 0.33 | 69,741 | 272 | 0.39 | |||||||||||
Money market deposits | 133,363 | 2,730 | 2.05 | 50,690 | 553 | 1.09 | |||||||||||
Time deposits | 816,298 | 19,049 | 2.33 | 754,256 | 13,186 | 1.75 | |||||||||||
Total interest-bearing deposits | 1,001,479 | 21,951 | 2.19 | 874,687 | 14,011 | 1.60 | |||||||||||
Borrowings | 31,884 | 287 | 0.90 | 45,223 | 664 | 1.47 | |||||||||||
Total interest-bearing liabilities | 1,033,363 | 22,238 | 2.15 | 919,910 | 14,675 | 1.60 | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||
Noninterest-bearing deposits | 297,174 | 284,702 | |||||||||||||||
Other noninterest-bearing liabilities | 40,924 | 21,683 | |||||||||||||||
Total noninterest-bearing liabilities | 338,098 | 306,385 | |||||||||||||||
Shareholders' equity | 184,537 | 147,905 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,555,998 | $ | 1,374,200 | |||||||||||||
Net interest income | $ | 60,975 | $ | 58,204 | |||||||||||||
Net interest spread | 3.51 | 4.00 | |||||||||||||||
Net interest margin | 4.15 | 4.48 | |||||||||||||||
________________________________ | |||||||||||||||||
(1) Includes income and average balances for term federal funds sold, interest-earning time deposits and other miscellaneous interest-earning assets. | |||||||||||||||||
(2) Average loan balances include nonaccrual loans and loans held for sale. | |||||||||||||||||
METROCITY BANKSHARES, INC. | ||||||||||||||||||||||||||
LOAN DATA | ||||||||||||||||||||||||||
As of the Quarter Ended | ||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
% of | % of | % of | % of | % of | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Total | Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||
Construction and Development | $ | 31,739 | 2.7 | % | $ | 42,106 | 3.3 | % | $ | 37,132 | 3.1 | % | $ | 39,435 | 3.5 | % | $ | 42,718 | 3.7 | % | ||||||
Commercial Real Estate | 424,950 | 36.5 | 436,692 | 34.6 | 420,332 | 35.3 | 392,714 | 34.5 | 396,598 | 34.6 | ||||||||||||||||
Commercial and Industrial | 53,105 | 4.6 | 47,247 | 3.8 | 43,771 | 3.7 | 41,916 | 3.7 | 33,100 | 2.9 | ||||||||||||||||
Residential Real Estate | 651,645 | 56.0 | 733,702 | 58.2 | 687,389 | 57.7 | 662,272 | 58.1 | 670,341 | 58.5 | ||||||||||||||||
Consumer and other | 1,768 | 0.2 | 1,658 | 0.1 | 2,287 | 0.2 | 2,294 | 0.2 | 2,957 | 0.3 | ||||||||||||||||
Gross loans | $ | 1,163,207 | 100 | % | $ | 1,261,405 | 100 | % | $ | 1,190,911 | 100 | % | $ | 1,138,631 | 100 | % | $ | 1,145,714 | 100 | % | ||||||
Unearned income | (2,045) | (2,359) | (2,492) | (1,977) | (2,139) | |||||||||||||||||||||
Allowance for loan losses | (6,839) | (6,850) | (6,483) | (6,526) | (6,645) | |||||||||||||||||||||
Net loans | $ | 1,154,323 | $ | 1,252,196 | $ | 1,181,936 | $ | 1,130,128 | $ | 1,136,930 | ||||||||||||||||
METROCITY BANKSHARES, INC. | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||
As of the Quarter Ended | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | September 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
Nonaccrual loans | $ | 12,236 | $ | 11,039 | $ | 13,633 | $ | 7,865 | $ | 5,667 | ||||||
Past due loans 90 days or more and still accruing | — | 509 | — | — | — | |||||||||||
Accruing troubled debt restructured loans | 2,459 | 2,969 | 3,130 | 3,298 | 3,298 | |||||||||||
Total non-performing loans | 14,695 | 14,517 | 16,763 | 11,163 | 8,965 | |||||||||||
Other real estate owned | 423 | 423 | — | — | — | |||||||||||
Total non-performing assets | $ | 15,118 | $ | 14,940 | $ | 16,763 | $ | 11,163 | $ | 8,965 | ||||||
Nonperforming loans to gross loans | 1.26 | % | 1.15 | % | 1.41 | % | 0.98 | % | 0.78 | % | ||||||
Nonperforming assets to total assets | 0.93 | 0.91 | 1.10 | 0.75 | 0.63 | |||||||||||
Allowance for loan losses to non-performing loans | 46.54 | 47.19 | 38.67 | 58.46 | 74.12 | |||||||||||
METROCITY BANKSHARES, INC. | ||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
As of or for the Three Months Ended | As of or for the Year Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||
Balance, beginning of period | $ | 6,850 | $ | 6,483 | $ | 6,526 | $ | 6,645 | $ | 6,881 | $ | 6,645 | $ | 6,925 | ||||||||
Net charge-offs/(recoveries): | ||||||||||||||||||||||
Construction and development | — | — | — | — | — | — | — | |||||||||||||||
Commercial real estate | (3) | (501) | (6) | (5) | 67 | (515) | 66 | |||||||||||||||
Commercial and industrial | — | — | 14 | — | 39 | 14 | 39 | |||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||
Consumer and other | 14 | 134 | 35 | 124 | 178 | 307 | 1,412 | |||||||||||||||
Total net charge-offs/(recoveries) | 11 | (367) | 43 | 119 | 284 | (194) | 1,517 | |||||||||||||||
Provision for loan losses | — | — | — | — | 48 | — | 1,237 | |||||||||||||||
Balance, end of period | $ | 6,839 | $ | 6,850 | $ | 6,483 | $ | 6,526 | $ | 6,645 | $ | 6,839 | $ | 6,645 | ||||||||
Total loans at end of period | $ | 1,163,207 | $ | 1,261,405 | $ | 1,190,911 | $ | 1,138,631 | $ | 1,145,714 | $ | 1,163,207 | $ | 1,145,714 | ||||||||
Average loans(1) | $ | 1,236,392 | $ | 1,295,657 | $ | 1,217,943 | $ | 1,136,450 | $ | 1,141,020 | $ | 1,218,219 | $ | 1,110,451 | ||||||||
Net charge-offs to average loans | 0.00 | % | (0.11) | % | 0.01 | % | 0.04 | % | 0.10 | % | (0.02) | % | 0.14 | % | ||||||||
Allowance for loan losses to total loans | 0.59 | 0.54 | 0.54 | 0.57 | 0.58 | 0.59 | 0.58 | |||||||||||||||
________________________________ | ||||||||||||||||||||||
(1) Excludes loans held for sale | ||||||||||||||||||||||
SOURCE MetroCity Bankshares, Inc.
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