Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2023

METROCITY BANKSHARES, INC.

(Exact name of registrant as specified in its charter)


Georgia	No. 001-39068	47-2528408
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


5114 Buford Highway Doraville, Georgia		30340
(Address of principal executive offices)		(Zip Code)

(770) 455-4989

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each Exchange on which registered
Common Stock, par value $0.01 per share	MCBS	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 Results of Operations and Financial Condition

On July 21, 2023, MetroCity Bankshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter ended June 30, 2023. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description

99.1	MetroCity Bankshares, Inc. Earnings Press Release dated July 21, 2023

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	METROCITY BANKSHARES, INC.

Date: July 21, 2023	By:	/s/ Lucas Stewart
		Lucas Stewart
		Chief Financial Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2023

ATLANTA, GA (July 21, 2023) – MetroCity Bankshares, Inc. (“MetroCity” or the “Company”) (NASDAQ: MCBS), holding company for Metro City Bank (the “Bank”), today reported net income of $13.1 million, or $0.51 per diluted share, for the second quarter of 2023, compared to $15.7 million, or $0.62 per diluted share, for the first quarter of 2023, and $16.1 million, or $0.63 per diluted share, for the second quarter of 2022. For the six months ended June 30, 2023, the Company reported net income of $28.8 million, or $1.13 per diluted share, compared to $35.5 million, or $1.38 per diluted share, for the same period in 2022.

Second Quarter 2023 Highlights:

●	Annualized return on average assets was 1.55%, compared to 1.87% for the first quarter of 2023 and 2.16% for the second quarter of 2022.

●

Annualized return on average equity was 14.87%, compared to 18.09% for the first quarter of 2023 and 20.65% for the second quarter of 2022. Excluding average accumulated other comprehensive income, our return on average equity was 15.50% for the second quarter of 2023, compared to 19.08% for the first quarter of 2023 and 20.90% for the second quarter of 2022.

●	Efficiency ratio of 38.8%, compared to 33.1% for the first quarter of 2023 and 37.6% for the second quarter of 2022.

●	Total assets increased by $56.1 million, or 1.6%, to $3.48 billion from the previous quarter.

●	Total deposits increased by $54.4 million, or 2.1%, to $2.70 billion from the previous quarter.

Year-to-Date 2023 Highlights:

●	Return on average assets was 1.71% for the six months ended June 30, 2023, compared to 2.34% for same period in 2022.

●

Return on average equity was 16.47% for the six months ended June 30, 2023, compared to 23.67% for same period in 2022. Excluding average accumulated other comprehensive income, our return on average equity was 17.27% for the six months ended June 30, 2023, compared to 23.81% for the same period in 2022.

●	Efficiency ratio of 35.8% for the six months ended June 30, 2023, compared to 34.6% for the same period in 2022.

Results of Operations

Net Income

Net income was $13.1 million for the second quarter of 2023, a decrease of $2.6 million, or 16.7%, from $15.7 million for the first quarter of 2023. This decrease was due to a decrease in net interest income of $1.3 million, a decrease in noninterest income of $1.3 million and an increase in noninterest expense of $855,000, offset by a decrease in provision for credit losses of $416,000 and a decrease in income tax expense of $335,000. Net income decreased by $3.0 million, or 18.6%, in the second quarter of 2023 compared to net income of $16.1 million for the second quarter of 2022. This decrease was due to a decrease in net interest income of $5.3 million, offset by an increase in noninterest income of $108,000, a decrease in noninterest expense of $1.6 million, a decrease in income tax expense of $149,000 and a decrease in provision for credit losses of $416,000.

Net income was $28.8 million for the six months ended June 30, 2023, a decrease of $6.7 million, or 18.8%, from $35.5 million for the six months ended June 30, 2022. This decrease was due to a decrease in net interest income of $9.7 million and a decrease in noninterest income of $1.5 million, offset by a decrease in noninterest expense of $3.1 million, a decrease in income tax expense of $906,000 and a decrease in provision for credit losses of $520,000.

Net Interest Income and Net Interest Margin

Interest income totaled $47.5 million for the second quarter of 2023, an increase of $1.5 million, or 3.3%, from the previous quarter, primarily due to a 10 basis points increase in the loan yield and a 73 basis points increase in the investments yield. As compared to the second quarter of 2022, interest income for the second quarter of 2023 increased by $14.5 million, or 43.8%, primarily due to an increase in average loan balances of $408.7 million coupled with a 100 basis points increase in the loan yield.

Interest expense totaled $22.5 million for the second quarter of 2023, an increase of $2.8 million, or 14.1%, from the previous quarter, primarily due to a 40 basis points increase in deposit costs and a 56 basis points increase in borrowing costs. As compared to the second quarter of 2022, interest expense for the second quarter of 2023 increased by $19.7 million, or 702.6%, due to a 333 basis points increase in deposit costs and a 225 basis points increase in borrowing costs coupled with a $291.9 million increase in average interest-bearing deposits and a $124.2 million increase in average borrowings.

The net interest margin for the second quarter of 2023 was 3.10% compared to 3.30% for the previous quarter, a decrease of 20 basis points. The yield on average interest-earning assets for the second quarter of 2023 increased by 13 basis points to 5.90% from 5.77% for the previous quarter, while the cost of average interest-bearing liabilities for the second quarter of 2023 increased by 44 basis points to 3.74% from 3.30% for the previous quarter. Average earning assets decreased by $1.3 million from the previous quarter, due to a decrease in average loans of $25.5 million, offset by an increase in average total investments of $24.2 million. Average interest-bearing liabilities decreased by $9.8 million from the previous quarter as average borrowings decreased by $32.2 million while average interest-bearing deposits increased by $22.3 million.

As compared to the same period in 2022, the net interest margin for the second quarter of 2023 decreased by 116 basis points to 3.10% from 4.26%, primarily due to a 318 basis point increase in the cost of average interest-bearing liabilities of $2.42 billion, offset by a 125 basis point increase in the yield on average interest-earning assets of $3.23 billion. Average earning assets for the second quarter of 2023 increased by $381.5 million from the second quarter of 2022, primarily due to a $408.7 million increase in average loans, offset by a $24.0 million decrease in average interest-earning cash accounts. Average interest-bearing liabilities for the second

quarter of 2023 increased by $416.1 million from the second quarter of 2022, driven by an increase in average interest-bearing deposits of $291.9 million and an increase in average borrowings of $124.2 million.

Noninterest Income

Noninterest income for the second quarter of 2023 was $4.8 million, a decrease of $1.3 million, or 20.9%, from the first quarter of 2023, primarily due to lower gains on sale of Small Business Administration (“SBA”) loans, SBA servicing income and other income, partially offset by higher mortgage loan fees. SBA loan sales totaled $30.3 million (sales premium of 5.24%) during the second quarter of 2023 compared to $36.5 million (sales premium of 6.80%) during the first quarter of 2023. Mortgage loan originations totaled $72.8 million during the second quarter 2023 compared to $43.3 million during the first quarter of 2023. During the second quarter of 2023, we recorded a $255,000 fair value adjustment gain on our SBA servicing asset which had a $0.01 per share impact on our diluted earnings per share for the quarter.

Compared to the same period in 2022, noninterest income for the second quarter of 2023 increased slightly by $108,000, or 2.3%, primarily due to higher gains on sale of SBA loans and SBA servicing income, partially offset by lower mortgage loan fees as a result of lower volume and lower gains on sale of mortgage loans, as no mortgage loans were sold during the second quarter of 2023.

Noninterest income for the six months ended June 30, 2023 totaled $10.8 million, a decrease of $1.5 million, or 12.4%, from the six month ended June 30, 2022, primarily due to lower mortgage loan fees from lower volume and lower gains on sale of mortgage loans as no mortgage loans were sold during the first half of 2023, offset by increases in gains on sale of SBA loans, SBA servicing income and other income.

Noninterest Expense

Noninterest expense for the second quarter of 2023 totaled $11.5 million, an increase of $855,000, or 8.0%, from $10.7 million for the first quarter of 2023. This increase was primarily attributable to an increase in salaries and employee benefits, FDIC deposit insurance premiums and fair value losses on our equity securities, partially offset by lower occupancy and equipment expense and loan related expenses. Compared to the second quarter of 2022, noninterest expense during the second quarter of 2023 decreased by $1.6 million, or 12.1%, primarily due to lower salaries and employee benefits and loan related expenses.

Noninterest expense for the six months ended June 30, 2023 totaled $22.2 million, a decrease of $3.1 million, or 12.2%, from $25.3 million for the six months ended June 30, 2022. This decrease was primarily attributable to a decrease in salaries and employee benefits partially due to lower commissions from lower loan volume, as well as lower loan and other real estate owned related expenses and fair value losses on our equity securities.

The Company’s efficiency ratio was 38.8% for the second quarter of 2023 compared to 33.1% and 37.6% for the first quarter of 2023 and second quarter of 2022, respectively. For the six months ended June 30, 2023, the efficiency ratio was 35.8% compared to 34.6% for the same period in 2022.

Income Tax Expense

The Company’s effective tax rate for the second quarter of 2023 was 29.6%, compared to 27.1% for the first quarter of 2023 and 26.0% for the second quarter of 2022. The Company’s effective tax rate for the six months ended June 30, 2023 was 28.2% compared to 25.6% for the same period in 2022.

Balance Sheet

Total Assets

Total assets were $3.48 billion at June 30, 2023, an increase of $56.1 million, or 1.6%, from $3.42 billion at March 31, 2023, and an increase of $307.2 million, or 9.7%, from $3.17 billion at June 30, 2022. The $56.1 million increase in total assets at June 30, 2023 compared to March 31, 2023 was primarily due to increases in cash and cash equivalents of $38.7 million, loans of $8.7 million and other assets of $9.1 million, partially offset by a decrease in Federal Home Loan Bank stock of $2.1 million. The $307.2 million increase in total assets at June 30, 2023 compared to June 30, 2022 was primarily due to increases in loans of $250.7 million, cash and cash equivalents of $39.6 million and other assets of $20.5 million, partially offset by a $3.6 million decrease in mortgage servicing rights and a $2.7 million decrease in securities available for sale.

Our investment securities portfolio made up only 0.84% of our total assets at June 30, 2023 compared to 0.87% and 1.02% at March 31, 2023 and June 30, 2022, respectively.

Loans

Loans held for investment were $3.02 billion at June 30, 2023, an increase of $8.7 million, or 0.3%, compared to $3.01 billion at March 31, 2023, and an increase of $250.7 million, or 9.1%, compared to $2.77 billion at June 30, 2022. The increase in loans at June 30, 2023 compared to March 31, 2023 was primarily due to a $17.3 million increase in commercial and industrial loans, a $3.1 million increase in residential mortgage loans and a $2.6 million increase in construction and development loans, offset by a $14.8 million decrease in commercial real estate loans. There were no loans classified as held for sale at June 30, 2023, March 31, 2023 or June 30, 2022.

Deposits

Total deposits were $2.70 billion at June 30, 2023, an increase of $54.4 million, or 2.1%, compared to total deposits of $2.64 billion at March 31, 2023, and an increase of $301.5 million, or 12.6%, compared to total deposits of $2.40 billion at June 30, 2022. The increase in total deposits at June 30, 2023 compared to March 31, 2023 was due to a $80.9 million increase in money market accounts and a $42.4 million increase in time deposits, offset by a $64.4 million decrease in interest-bearing demand deposits, a $2.5 million decrease in savings accounts and a $2.0 million decrease in noninterest-bearing deposits.

Noninterest-bearing deposits were $575.3 million at June 30, 2023, compared to $577.3 million at March 31, 2023 and $620.2 million at June 30, 2022. Noninterest-bearing deposits constituted 21.3% of total deposits at June 30, 2023, compared to 21.8% at March 31, 2023 and 25.9% at June 30, 2022. Interest-bearing deposits were $2.12 billion at June 30, 2023, compared to $2.07 billion at March 31, 2023 and $1.78 billion at June 30, 2022. Interest-bearing deposits constituted 78.7% of total deposits at June 30, 2023, compared to 78.2% at March 31, 2023 and 74.1% at June 30, 2022.

Uninsured deposits were 30.7% of total deposits at June 30, 2023, compared to 31.9% and 28.5% at March 31, 2023 and June 30, 2022, respectively. As of June 30, 2023, we had $1.19 billion of available borrowing capacity at the Federal Home Loan Bank ($702.5 million), Federal Reserve Discount Window ($444.6 million) and various other financial institutions (fed fund lines totaling $47.5 million).

Asset Quality

The Company recorded a credit provision for credit losses of $416,000 during the second quarter of 2023, compared to no provision for credit losses recorded during the first quarter of 2023 and second quarter of 2022. The credit provision recorded during the second quarter of 2023 was due to the decrease in reserves allocated to individually analyzed loans, as well as a decrease in the general reserves allocated to our residential mortgage loan portfolio as the outlook for the national housing price index improved during the second quarter 2023. Annualized net charge-offs to average loans for the second quarter of 2023 was 0.06%, compared to a net recovery of 0.00% for both the first quarter of 2023 and second quarter of 2022.

Nonperforming assets totaled $23.6 million, or 0.68% of total assets, at June 30, 2023, an increase of $4.1 million from $19.5 million, or 0.57% of total assets, at March 31, 2023, and a decrease of $10.4 million from $34.0 million, or 1.07% of total assets, at June 30, 2022. The increase in nonperforming assets at June 30, 2023 compared to March 31, 2023 was primarily due to a $4.0 million increase in nonaccrual loans and a $235,000 increase in other real estate owned.

Allowance for credit losses as a percentage of total loans was 0.60% at June 30, 2023, compared to 0.63% at March 31, 2023 and 0.60% at June 30, 2022. Allowance for credit losses as a percentage of nonperforming loans was 79.88% at June 30, 2023, compared to 101.22% and 54.79% at March 31, 2023 and June 30, 2022, respectively.

About MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. is a Georgia corporation and a registered bank holding company for its wholly-owned banking subsidiary, Metro City Bank, which is headquartered in the Atlanta, Georgia metropolitan area. Founded in 2006, Metro City Bank currently operates 20 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 future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “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 should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, 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: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows,

liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; 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; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the “SEC”), 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
770-455-4978	678-580-6414
faridtan@metrocitybank.bank	lucasstewart@metrocitybank.bank

METROCITY BANKSHARES, INC.

SELECTED FINANCIAL DATA


	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)	2023			2023			2022			2022			2022			2023			2022
Selected income statement data:
Interest income	$	47,482		$	45,965		$	43,945		$	38,297		$	33,025		$	93,447		$	64,978
Interest expense		22,512			19,732			14,995			8,509			2,805			42,244			4,105
Net interest income		24,970			26,233			28,950			29,788			30,220			51,203			60,873
Provision for credit losses		(416)			—			(1,168)			(1,703)			—			(416)			104
Noninterest income		4,761			6,016			1,794			5,101			4,653			10,777			12,309
Noninterest expense		11,534			10,679			12,379			12,688			13,119			22,213			25,298
Income tax expense		5,505			5,840			9,353			7,011			5,654			11,345			12,251
Net income		13,108			15,730			10,180			16,893			16,100			28,838			35,529
Per share data:
Basic income per share	$	0.52		$	0.63		$	0.40		$	0.66		$	0.63		$	1.15		$	1.40
Diluted income per share	$	0.51		$	0.62		$	0.40		$	0.66		$	0.63		$	1.13		$	1.38
Dividends per share	$	0.18		$	0.18		$	0.15		$	0.15		$	0.15		$	0.36		$	0.30
Book value per share (at period end)	$	14.76		$	14.04		$	13.88		$	13.76		$	12.69		$	14.76		$	12.69
Shares of common stock outstanding		25,279,846			25,143,675			25,169,709			25,370,417			25,451,125			25,279,846			25,451,125
Weighted average diluted shares		25,477,143			25,405,855			25,560,138			25,702,023			25,729,156			25,468,941			25,746,691
Performance ratios:
Return on average assets		1.55	%		1.87	%		1.19	%		2.07	%		2.16	%		1.71	%		2.34	%
Return on average equity		14.87			18.09			11.57			20.56			20.65			16.47			23.67
Dividend payout ratio		34.77			28.98			37.55			22.75			23.85			31.61			21.62
Yield on total loans		5.95			5.85			5.50			5.11			4.95			5.90			4.98
Yield on average earning assets		5.90			5.77			5.43			4.94			4.65			5.84			4.49
Cost of average interest bearing liabilities		3.74			3.30			2.49			1.51			0.56			3.52			0.40
Cost of deposits		3.88			3.48			2.61			1.48			0.55			3.69			0.41
Net interest margin		3.10			3.30			3.58			3.84			4.26			3.20			4.21
Efficiency ratio⁽¹⁾		38.79			33.11			40.26			36.37			37.62			35.84			34.57
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.06	%		(0.00)	%		(0.01)	%		(0.00)	%		(0.00)	%		0.03	%		0.03	%
Nonperforming assets to gross loans and OREO		0.78			0.64			0.80			1.09			1.22			0.78			1.22
ACL to nonperforming loans		79.88			101.22			68.88			53.25			54.79			79.88			54.79
ACL to loans held for investment		0.60			0.63			0.45			0.50			0.60			0.60			0.60
Balance sheet and capital ratios:
Gross loans held for investment to deposits		112.27	%		114.27	%		114.94	%		116.21	%		115.86	%		112.27	%		115.86	%
Noninterest bearing deposits to deposits		21.32			21.83			22.95			23.43			25.87			21.32			25.87
Investment securities to assets		0.84			0.87			0.86			0.91			1.02			0.84			1.02
Common equity to assets		10.74			10.32			10.20			10.42			10.20			10.74			10.20
Leverage ratio		10.03			9.72			9.57			9.90			10.31			10.03			10.31
Common equity tier 1 ratio		16.69			16.55			15.99			16.18			16.70			16.69			16.70
Tier 1 risk-based capital ratio		16.69			16.55			15.99			16.18			16.70			16.69			16.70
Total risk-based capital ratio		17.59			17.51			16.68			16.94			17.60			17.59			17.60
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	487,787		$	506,012		$	526,719		$	550,587		$	589,500		$	487,787		$	589,500
Mortgage loan production		72,830			43,335			88,045			255,662			326,973			116,165			489,901
Mortgage loan sales		—			—			—			—			37,928			—			94,915
SBA loans serviced for others		493,579			485,663			465,120			489,120			504,894			493,579			504,894
SBA loan production		16,110			26,239			42,419			22,193			21,407			42,349			72,096
SBA loan sales		30,298			36,458			—			8,588			—			66,756			22,898

(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
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands, except per share data)	2023		2023		2022		2022		2022
ASSETS
Cash and due from banks	$	250,503	$	216,167	$	150,964	$	164,054	$	220,027
Federal funds sold		12,224		7,897		28,521		15,669		3,069
Cash and cash equivalents		262,727		224,064		179,485		179,723		223,096
Equity securities		10,358		10,428		10,300		10,452		10,778
Securities available for sale (at fair value)		18,696		19,174		19,245		19,978		21,394
Loans		3,020,714		3,012,020		3,055,689		2,978,318		2,770,020
Allowance for credit losses		(18,091)		(18,947)		(13,888)		(14,982)		(16,678)
Loans less allowance for credit losses		3,002,623		2,993,073		3,041,801		2,963,336		2,753,342
Loans held for sale		—		—		—		—		—
Accrued interest receivable		13,877		13,642		13,171		11,732		10,990
Federal Home Loan Bank stock		15,534		17,659		17,493		15,619		15,619
Premises and equipment, net		16,374		15,165		14,257		13,664		12,847
Operating lease right-of-use asset		7,761		8,030		8,463		8,835		8,518
Foreclosed real estate, net		1,001		766		4,328		4,328		3,562
SBA servicing asset, net		8,018		7,791		7,085		8,324		8,216
Mortgage servicing asset, net		2,514		3,205		3,973		4,975		6,090
Bank owned life insurance		70,010		69,565		69,130		68,697		68,267
Other assets		45,594		36,451		38,508		38,776		25,131
Total assets	$	3,475,087	$	3,419,013	$	3,427,239	$	3,348,439	$	3,167,850

LIABILITIES
Noninterest-bearing deposits	$	575,301	$	577,282	$	611,991	$	602,246	$	620,182
Interest-bearing deposits		2,123,181		2,066,811		2,054,847		1,968,607		1,776,826
Total deposits		2,698,482		2,644,093		2,666,838		2,570,853		2,397,008
Federal Home Loan Bank advances		325,000		375,000		375,000		375,000		375,000
Other borrowings		387		387		392		396		399
Operating lease liability		7,985		8,438		8,885		9,303		9,031
Accrued interest payable		3,859		3,681		2,739		1,489		703
Other liabilities		66,211		34,453		23,964		42,369		62,640
Total liabilities	$	3,101,924	$	3,066,052	$	3,077,818	$	2,999,410	$	2,844,781

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		253		251		252		254		255
Additional paid-in capital		45,516		45,044		45,298		48,914		49,831
Retained earnings		301,752		293,139		285,832		279,475		266,426
Accumulated other comprehensive income (loss)		25,642		14,527		18,039		20,386		6,557
Total shareholders' equity		373,163		352,961		349,421		349,029		323,069
Total liabilities and shareholders' equity	$	3,475,087	$	3,419,013	$	3,427,239	$	3,348,439	$	3,167,850

METROCITY BANKSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(Dollars in thousands, except per share data)	2023		2023		2022		2022		2022		2023		2022
Interest and dividend income:
Loans, including Fees	$	44,839	$	43,982	$	41,783	$	37,263	$	32,310	$	88,821	$	63,769
Other investment income		2,582		1,939		2,116		1,011		711		4,521		1,203
Federal funds sold		61		44		46		23		4		105		6
Total interest income		47,482		45,965		43,945		38,297		33,025		93,447		64,978

Interest expense:
Deposits		19,804		17,376		13,071		6,964		2,384		37,180		3,523
FHLB advances and other borrowings		2,708		2,356		1,924		1,545		421		5,064		582
Total interest expense		22,512		19,732		14,995		8,509		2,805		42,244		4,105

Net interest income		24,970		26,233		28,950		29,788		30,220		51,203		60,873

Provision for credit losses		(416)		—		(1,168)		(1,703)		—		(416)		104

Net interest income after provision for loan losses		25,386		26,233		30,118		31,491		30,220		51,619		60,769

Noninterest income:
Service charges on deposit accounts		464		449		483		509		518		913		999
Other service charges, commissions and fees		1,266		874		1,243		2,676		3,647		2,140		5,806
Gain on sale of residential mortgage loans		—		—		—		—		806		—		2,017
Mortgage servicing income, net		(51)		(96)		(299)		(358)		(5)		(147)		96
Gain on sale of SBA loans		1,054		1,969		—		500		—		3,023		1,568
SBA servicing income, net		1,388		1,814		(72)		1,330		(1,077)		3,202		567
Other income		640		1,006		439		444		764		1,646		1,256
Total noninterest income		4,761		6,016		1,794		5,101		4,653		10,777		12,309

Noninterest expense:
Salaries and employee benefits		7,103		6,366		7,721		7,756		7,929		13,469		15,025
Occupancy		1,039		1,214		1,263		1,167		1,200		2,253		2,427
Data Processing		353		275		287		270		261		628		538
Advertising		165		146		172		158		126		311		276
Other expenses		2,874		2,678		2,936		3,337		3,603		5,552		7,032
Total noninterest expense		11,534		10,679		12,379		12,688		13,119		22,213		25,298

Income before provision for income taxes		18,613		21,570		19,533		23,904		21,754		40,183		47,780
Provision for income taxes		5,505		5,840		9,353		7,011		5,654		11,345		12,251
Net income available to common shareholders	$	13,108	$	15,730	$	10,180	$	16,893	$	16,100	$	28,838	$	35,529

METROCITY BANKSHARES, INC.

AVERAGE BALANCES AND YIELDS/RATES


	Three Months Ended
	June 30, 2023						March 31, 2023						June 30, 2022
	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⁾	$	169,976	$	2,445	5.77	%	$	145,354	$	1,805	5.04	%	$	193,955	$	560	1.16	%
Investment securities		32,525		198	2.44			32,952		178	2.19			35,754		155	1.74
Total investments		202,501		2,643	5.24			178,306		1,983	4.51			229,709		715	1.25
Construction and development		40,386		555	5.51			39,097		523	5.43			32,647		414	5.09
Commercial real estate		654,021		14,362	8.81			672,109		13,979	8.44			575,917		8,403	5.85
Commercial and industrial		47,836		1,119	9.38			47,105		1,030	8.87			54,423		915	6.74
Residential real estate		2,282,264		28,777	5.06			2,291,699		28,422	5.03			1,952,730		22,545	4.63
Consumer and other		153		26	68.16			166		28	68.41			266		33	49.76
Gross loans⁽²⁾		3,024,660		44,839	5.95			3,050,176		43,982	5.85			2,615,983		32,310	4.95
Total earning assets		3,227,161		47,482	5.90			3,228,482		45,965	5.77			2,845,692		33,025	4.65
Noninterest-earning assets		167,506						175,110						146,669
Total assets		3,394,667						3,403,592						2,992,361
Interest-bearing liabilities:
NOW and savings deposits		160,967		839	2.09			166,962		648	1.57			197,460		102	0.21
Money market deposits		956,598		10,370	4.35			978,954		9,659	4.00			1,166,272		1,860	0.64
Time deposits		927,478		8,595	3.72			876,803		7,069	3.27			389,449		422	0.43
Total interest-bearing deposits		2,045,043		19,804	3.88			2,022,719		17,376	3.48			1,753,181		2,384	0.55
Borrowings		371,000		2,708	2.93			403,170		2,356	2.37			246,779		421	0.68
Total interest-bearing liabilities		2,416,043		22,512	3.74			2,425,889		19,732	3.30			1,999,960		2,805	0.56
Noninterest-bearing liabilities:
Noninterest-bearing deposits		558,907						578,978						611,763
Other noninterest-bearing liabilities		66,037						46,138						67,979
Total noninterest-bearing liabilities		624,944						625,116						679,742
Shareholders' equity		353,680						352,587						312,659
Total liabilities and shareholders' equity	$	3,394,667					$	3,403,592					$	2,992,361
Net interest income			$	24,970					$	26,233					$	30,220
Net interest spread					2.16						2.47						4.09
Net interest margin					3.10						3.30						4.26

(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts 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


	Six Months Ended
	June 30, 2023						June 30, 2022
	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⁾	$	157,733	$	4,250	5.43	%	$	296,230	$	883	0.60	%
Investment securities		32,737		376	2.32			36,295		326	1.81
Total investments		190,470		4,626	4.90			332,525		1,209	0.73
Construction and development		39,745		1,078	5.47			31,621		792	5.05
Commercial real estate		663,015		28,341	8.62			562,598		16,290	5.84
Commercial and industrial		47,473		2,149	9.13			59,906		1,991	6.70
Residential real estate		2,286,955		57,199	5.04			1,929,915		44,619	4.66
Consumer and other		160		54	68.06			236		77	65.80
Gross loans⁽²⁾		3,037,348		88,821	5.90			2,584,276		63,769	4.98
Total earning assets		3,227,818		93,447	5.84			2,916,801		64,978	4.49
Noninterest-earning assets		171,295						144,368
Total assets		3,399,113						3,061,169
Interest-bearing liabilities:
NOW and savings deposits		163,948		1,487	1.83			192,388		178	0.19
Money market deposits		967,714		20,029	4.17			1,126,233		2,517	0.45
Time deposits		902,280		15,664	3.50			415,196		828	0.40
Total interest-bearing deposits		2,033,942		37,180	3.69			1,733,817		3,523	0.41
Borrowings		386,996		5,064	2.64			356,951		582	0.33
Total interest-bearing liabilities		2,420,938		42,244	3.52			2,090,768		4,105	0.40
Noninterest-bearing liabilities:
Noninterest-bearing deposits		568,888						600,117
Other noninterest-bearing liabilities		56,142						67,642
Total noninterest-bearing liabilities		625,030						667,759
Shareholders' equity		353,145						302,642
Total liabilities and shareholders' equity	$	3,399,113					$	3,061,169
Net interest income			$	51,203					$	60,873
Net interest spread					2.32						4.09
Net interest margin					3.20						4.21

(1)	Includes income and average balances for term federal funds sold, interest-earning cash accounts 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
	June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	51,759	1.7	%	$	49,209	1.6	%	$	47,779	1.6	%	$	51,300	1.7	%	$	45,042	1.6	%
Commercial Real Estate		625,111	20.6			639,951	21.2			657,246	21.4			608,700	20.4			581,234	20.9
Commercial and Industrial		63,502	2.1			46,208	1.5			53,173	1.7			52,693	1.8			57,843	2.1
Residential Real Estate		2,289,050	75.6			2,285,902	75.7			2,306,915	75.3			2,274,679	76.1			2,092,952	75.4
Consumer and other		102	—			50	—			216	—			198	—			165	—
Gross loans	$	3,029,524	100.0	%	$	3,021,320	100.0	%	$	3,065,329	100.0	%	$	2,987,570	100.0	%	$	2,777,236	100.0	%
Unearned income		(8,810)				(9,300)				(9,640)				(9,252)				(7,216)
Allowance for credit losses		(18,091)				(18,947)				(13,888)				(14,982)				(16,678)
Net loans	$	3,002,623			$	2,993,073			$	3,041,801			$	2,963,336			$	2,753,342

METROCITY BANKSHARES, INC.

NONPERFORMING ASSETS


	As of the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022
Nonaccrual loans	$	13,037		$	9,064		$	10,065		$	17,700		$	19,966
Past due loans 90 days or more and still accruing		—			—			180			—			—
Accruing restructured loans		9,611			9,654			9,919			10,437			10,474
Total non-performing loans		22,648			18,718			20,164			28,137			30,440
Other real estate owned		1,001			766			4,328			4,328			3,562
Total non-performing assets	$	23,649		$	19,484		$	24,492		$	32,465		$	34,002

Nonperforming loans to gross loans		0.75	%		0.62	%		0.66	%		0.94	%		1.10	%
Nonperforming assets to total assets		0.68			0.57			0.71			0.97			1.07
Allowance for credit losses to non-performing loans		79.88			101.22			68.88			53.25			54.79

METROCITY BANKSHARES, INC.

ALLOWANCE FOR LOAN LOSSES


	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022			2023			2022
Balance, beginning of period	$	18,947		$	13,888		$	14,982		$	16,678		$	16,674		$	13,888		$	16,952
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		230			(2)			(2)			(1)			(2)			228			(4)
Commercial and industrial		208			(2)			(72)			(6)			(2)			206			387
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			—			—			—			—			(5)
Total net charge-offs/(recoveries)		438			(4)			(74)			(7)			(4)			434			378
Adoption of ASU 2016-13 (CECL)		—			5,055			—			—			—			5,055			—
Provision for loan losses		(418)			—			(1,168)			(1,703)			—			(418)			104
Balance, end of period	$	18,091		$	18,947		$	13,888		$	14,982		$	16,678		$	18,091		$	16,678
Total loans at end of period	$	3,029,524		$	3,021,320		$	3,065,329		$	2,987,570		$	2,777,236		$	3,029,524		$	2,777,236
Average loans⁽¹⁾	$	3,024,660		$	3,050,176		$	3,016,144		$	2,891,934		$	2,597,019		$	3,037,348		$	2,571,633
Net charge-offs/(recoveries) to average loans		0.06	%		(0.00)	%		(0.01)	%		(0.00)	%		(0.00)	%		0.06	%		0.03	%
Allowance for credit losses to total loans		0.60			0.63			0.45			0.50			0.60			0.60			0.60

(1)	Excludes loans held for sale

Document and Entity Information	Oct. 21, 2022
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jul. 21, 2023
Entity Registrant Name	METROCITY BANKSHARES, INC.
Entity File Number	001-39068
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	47-2528408
Entity Address, Address Line One	5114 Buford Highway
Entity Address, City or Town	Doraville
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30340
City Area Code	770
Local Phone Number	455-4989
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MCBS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Central Index Key	0001747068
Amendment Flag	false