ATLANTA, April 22, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ:MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $19.4 million, or $0.76 per diluted share, for the first quarter of 2022, compared to $17.4 million, or $0.68 per diluted share, for the fourth quarter of 2021, and $13.0 million, or $0.50 per diluted share, for the first quarter of 2021.

First Quarter 2022 Highlights:

Annualized return on average assets was 2.52%, compared to 2.33% for the fourth quarter of 2021 and 2.62% for the first quarter of 2021.
Annualized return on average equity was 26.94%, compared to 24.80% for the fourth quarter of 2021 and 21.35% for the first quarter of 2021.
Efficiency ratio of 31.8%, compared to 33.7% for the fourth quarter of 2021 and 36.0% for the first quarter of 2021.
Total assets increased by $36.2 million, or 1.2%, to $3.14 billion from the previous quarter.
Total loans, including loans held for sale, increased by $45.2 million, or 1.8%, to $2.55 billion from the previous quarter.
Total deposits increased by $119.1 million, or 5.3%, to $2.38 billion from the previous quarter.

Results of Operations

Net Income

Net income was $19.4 million for the first quarter of 2022, an increase of $2.0 million, or 11.4%, from $17.4 million for the fourth quarter of 2021. This increase was due to an increase in net interest income of $1.0 million, a decrease in provision for loan losses of $442,000, an increase in noninterest income of $165,000, and a decrease in noninterest expense of $333,000. Net income increased $6.4 million, or 49.7%, in the first quarter of 2022 compared to net income of $13.0 million for the first quarter of 2021. This increase was due to an increase in net interest income of $9.1 million and a decrease in provision for loan losses of $1.5 million, offset by a decrease in noninterest income of $530,000, an increase in noninterest expense of $1.5 million and an increase in provision for income taxes of $2.2 million.

Net Interest Income and Net Interest Margin

Interest income totaled $32.0 million for the first quarter of 2022, an increase of $1.1 million, or 3.6%, from the previous quarter, primarily due to a seven basis points increase in the yield on average loans and a $98.8 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $503,000 during the first quarter of 2022 compared to $708,000 recognized during the fourth quarter of 2021. As compared to the first quarter of 2021, interest income for the first quarter of 2022 increased by $9.3 million, or 40.9%, primarily due to an increase in average loan balances of $798.5 million.

Interest expense totaled $1.3 million for the first quarter of 2022, an increase of $64,000, or 5.2%, from the previous quarter, primarily due to a $148.7 million increase in average interest-bearing deposits as deposit costs remained flat. As compared to the first quarter of 2021, interest expense for the first quarter of 2022 increased by $162,000, or 14.2%, primarily due to a $595.8 million increase in average interest-bearing deposit balances, partially offset with a nine basis points decrease in deposit costs.

The net interest margin for the first quarter of 2022 was 4.16% compared to 4.15% for the previous quarter, a slight increase of one basis point. The yield on average interest-earning assets for the first quarter of 2022 increased by two basis points to 4.34% from 4.32% for the previous quarter, while the cost of average interest-bearing liabilities for the first quarter of 2022 remained flat at 0.24% compared with the previous quarter. Average earning assets increased by $156.3 million from the previous quarter, primarily due to an increase in average loans of $98.8 million and a $54.3 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $151.9 million from the previous quarter as average interest-bearing deposits increased by $148.7 million and average borrowings increased by $3.2 million. The inclusion of PPP loan average balances, interest and fees had a four basis points impact on both the yield on average loans and the net interest margin for the first quarter of 2022.

As compared to the same period in 2021, the net interest margin for the first quarter of 2022 decreased by 44 basis points to 4.16% from 4.60%, primarily due to a 51 basis point decrease in the yield on average interest-earning assets of $2.99 billion and a 14 basis point decrease in the cost of average interest-bearing liabilities of $2.18 billion. Average earning assets for the first quarter of 2022 increased by $1.09 billion from the first quarter of 2021, primarily due to a $798.5 million increase in average loans and a $273.9 million increase in average interest-earning cash accounts. Average interest-bearing liabilities for the first quarter of 2022 increased by $976.7 million from the first quarter of 2021, driven by an increase in average interest-bearing deposits of $595.8 million and an increase in average borrowings of $380.9 million.

Noninterest Income

Noninterest income for the first quarter of 2022 was $7.7 million, an increase of $165,000, or 2.2%, from the fourth quarter of 2021, primarily due to higher Small Business Administration ("SBA") servicing income and gains on sale of mortgage loans, offset by lower mortgage loan fees and gains on sale of SBA loans. During the first quarter of 2022, we recorded a $323,000 fair value adjustment gain on our SBA servicing asset and a $74,000 fair value impairment recovery on our mortgage servicing asset. These servicing asset adjustments had a $0.01 per share impact on our diluted earnings per share for the quarter.

Compared to the same period in 2021, noninterest income for the first quarter of 2022 decreased by $530,000, or 6.5%, primarily due to lower mortgage loan fees, SBA and mortgage servicing income, and gains on sale of SBA loans, offset by higher gains on sale of mortgage loans.

Noninterest Expense

Noninterest expense for the first quarter of 2022 totaled $12.2 million, a decrease of $333,000, or 2.7%, from $12.5 million for the fourth quarter of 2021. This decrease was primarily attributable to lower salaries and employee benefits partially due to a decrease in commissions earned as loan volume declined during the quarter. Compared to the first quarter of 2021, noninterest expense during the first quarter of 2022 increased by $1.5 million, or 13.7%, primarily due to higher salaries and employee benefits, professional fees and FDIC insurance premiums.

The Company's efficiency ratio was 31.8% for the first quarter of 2022 compared to 33.7% and 36.0% for the fourth quarter of 2021 and first quarter of 2021, respectively.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2022 was 25.3%, compared to 27.5% for the fourth quarter of 2021 and 25.5% for the first quarter of 2021.

Balance Sheet

Total Assets

Total assets were $3.14 billion at March 31, 2022, an increase of $36.2 million, or 1.2%, from $3.11 billion at December 31, 2021, and an increase of $988.0 million, or 45.9%, from $2.15 billion at March 31, 2021. The $36.2 million increase in total assets at March 31, 2022 compared to December 31, 2021 was primarily due to increases in loans held for investment of $7.2 million, loans held for sale of $37.9 million, bank owned life insurance of $8.4 million, and other assets of $6.7 million, partially offset by a $16.6 million decrease in cash and cash equivalents. The $988.0 million increase in total assets at March 31, 2022 compared to March 31, 2021 was primarily due to increases in loans of $645.5 million, cash and due from banks of $249.2 million and bank owned life insurance of $31.8 million, partially offset by a $4.8 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $4.9 million.

Loans

Loans, including loans held for sale, were $2.55 billion at March 31, 2022, an increase of $45.2 million, or 1.8%, compared to $2.51 billion at December 31, 2021, and an increase of $683.4 million, or 36.6%, compared to $1.87 billion at March 31, 2021. The increase in loans at March 31, 2022 compared to December 31, 2021 was primarily due to a $46.5 million increase in commercial real estate loans and a $5.4 million increase in residential mortgages, offset by a $7.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $19.8 million as of March 31, 2022. PPP Loans totaled $31.0 million as of December 31, 2021 and $125.6 million as of March 31, 2021. Loans held for sale were $37.9 million at March 31, 2022. There were no loans classified as held for sale at December 31, 2021 or March 31, 2021.

Deposits

Total deposits were $2.38 billion at March 31, 2022, an increase of $119.1 million, or 5.3%, compared to total deposits of $2.26 billion at December 31, 2021, and an increase of $636.2 million, or 36.4%, compared to total deposits of $1.75 billion at March 31, 2021. The increase in total deposits at March 31, 2022 compared to December 31, 2021 was primarily due to a $23.2 million increase in noninterest-bearing demand deposits, a $129.7 million increase in money market accounts and a $29.9 million increase in interest-bearing demand deposits, offset by a $64.5 million decrease in time deposits.

Noninterest-bearing deposits were $615.7 million at March 31, 2022, compared to $592.4 million at December 31, 2021 and $546.2 million at March 31, 2021. Noninterest-bearing deposits constituted 25.8% of total deposits at March 31, 2022, compared to 26.2% at December 31, 2021 and 31.3% at March 31, 2021. Interest-bearing deposits were $1.77 billion at March 31, 2022, compared to $1.67 billion at December 31, 2021 and $1.20 billion at March 31, 2021. Interest-bearing deposits constituted 74.2% of total deposits at March 31, 2022, compared to 73.8% at December 31, 2021 and 68.7% at March 31, 2021.

Asset Quality

The Company recorded a provision for loan losses of $104,000 during the first quarter of 2022, compared to $546,000 during the fourth quarter of 2021 and $1.6 million during the first quarter of 2021. Annualized net charge-offs to average loans for the first quarter of 2022 was 0.06%, compared to 0.01% for the fourth quarter of 2021 and 0.00% for the first quarter of 2021. The Company is not required to implement the provisions of the current expected credit losses accounting standard issued by the Financial Accounting Standards Board in the Accounting Standards Update No. 2016-13 until January 1, 2023, and is continuing to account for the allowance for loan losses under the incurred loss model.

Nonperforming assets totaled $16.0 million, or 0.51% of total assets, at March 31, 2022, an increase of $553,000 from $15.4 million, or 0.50% of total assets, at December 31, 2021, and an increase of $191,000 from $15.8 million, or 0.73% of total assets, at March 31, 2021. The increase in nonperforming assets at March 31, 2022 compared to December 31, 2021 was due to a $747,000 increase in nonaccrual loans and a $204,000 increase in accruing troubled debt restructurings, offset by a $342,000 decrease in loans past due ninety days or more and still accruing an a $56,000 decrease in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.66% at March 31, 2022, compared to 0.67% at December 31, 2021 and 0.63% at March 31, 2021. Excluding outstanding PPP loans of $19.8 million as of March 31, 2022, $31.0 million as of December 31, 2021 and $125.6 million as of March 31, 2021, the allowance for loan losses as a percentage of total loans was 0.67% at March 31, 2022, 0.68% at December 31, 2021 and 0.67% at March 31, 2021. Allowance for loan losses as a percentage of nonperforming loans was 134.39% at March 31, 2022, compared to 143.69% and 98.33% at December 31, 2021 and March 31, 2021, 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 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 future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, including statements regarding the potential effects of the ongoing COVID-19 pandemic and related variants on our business and financial results and conditions, 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: general business and economic conditions, particularly those affecting the financial services; the impact of the ongoing COVID-19 pandemic and related variants on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; 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; 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; higher inflation and its impacts; 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 related to the ongoing COVID-19 pandemic and related variants. 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
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)	2022			2021			2021			2021			2021
Selected income statement data:
Interest income	$	31,953		$	30,857		$	29,324		$	25,888		$	22,672
Interest expense		1,300			1,236			1,135			1,063			1,138
Net interest income		30,653			29,621			28,189			24,825			21,534
Provision for loan losses		104			546			2,579			2,205			1,599
Noninterest income		7,656			7,491			9,532			8,594			8,186
Noninterest expense		12,179			12,512			13,111			12,093			10,708
Income tax expense		6,597			6,609			5,149			4,728			4,432
Net income		19,429			17,445			16,882			14,393			12,981
Per share data:
Basic income per share	$	0.76		$	0.69		$	0.66		$	0.56		$	0.51
Diluted income per share	$	0.76		$	0.68		$	0.66		$	0.56		$	0.50
Dividends per share	$	0.15		$	0.14		$	0.12		$	0.10		$	0.10
Book value per share (at period end)	$	12.19		$	11.40		$	10.84		$	10.33		$	9.95
Shares of common stock outstanding		25,465,236			25,465,236			25,465,236			25,578,668			25,674,573
Weighted average diluted shares		25,719,035			25,720,128			25,729,043			25,833,328			25,881,827
Performance ratios:
Return on average assets		2.52	%		2.33	%		2.61	%		2.53	%		2.62	%
Return on average equity		26.94			24.80			25.23			22.51			21.35
Dividend payout ratio		19.76			20.52			18.24			17.95			19.91
Yield on total loans		5.00			4.93			5.16			5.21			5.20
Yield on average earning assets		4.34			4.32			4.75			4.79			4.85
Cost of average interest bearing liabilities		0.24			0.24			0.28			0.31			0.38
Cost of deposits		0.27			0.27			0.28			0.29			0.36
Net interest margin		4.16			4.15			4.57			4.60			4.60
Efficiency ratio⁽¹⁾		31.79			33.71			34.76			36.19			36.03
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Nonperforming assets to gross loans and OREO		0.63			0.61			0.55			0.67			0.84
ALL to nonperforming loans		134.39			143.69			189.44			147.82			98.33
ALL to loans held for investment		0.66			0.67			0.69			0.66			0.63
Balance sheet and capital ratios:
Gross loans held for investment to deposits		105.72	%		110.98	%		112.15	%		106.31	%		107.33	%
Noninterest bearing deposits to deposits		25.84			26.18			30.32			31.30			31.28
Common equity to assets		9.88			9.34			10.04			10.50			11.85
Leverage ratio		9.46			9.44			10.34			11.14			12.23
Common equity tier 1 ratio		17.24			16.76			16.61			17.75			18.97
Tier 1 risk-based capital ratio		17.24			16.76			16.61			17.75			18.97
Total risk-based capital ratio		18.22			17.77			17.64			18.72			19.88
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	605,112		$	608,208		$	669,358		$	746,660		$	856,432
Mortgage loan production		162,933			237,195			368,790			326,507			263,698
Mortgage loan sales		56,987			—			—			—			—
SBA loans serviced for others		528,227			542,991			549,818			549,238			521,182
SBA loan production		50,689			52,727			85,265			67,376			80,466
SBA loan sales		22,898			30,169			37,984			34,158			22,399

(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
	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands, except per share data)	2022		2021		2021		2021		2021
ASSETS
Cash and due from banks	$	418,988	$	432,523	$	250,995	$	309,289	$	169,775
Federal funds sold		5,743		8,818		2,294		4,644		4,444
Cash and cash equivalents		424,731		441,341		253,289		313,933		174,219
Equity securities		11,024		11,386		993		—		—
Securities available for sale (at fair value)		23,886		25,733		16,507		16,722		18,739
Loans		2,512,300		2,505,070		2,361,705		2,091,767		1,866,785
Allowance for loan losses		(16,674)		(16,952)		(16,445)		(13,860)		(11,735)
Loans less allowance for loan losses		2,495,626		2,488,118		2,345,260		2,077,907		1,855,050
Loans held for sale		37,928		—		—		—		—
Accrued interest receivable		10,644		11,052		10,737		10,668		10,515
Federal Home Loan Bank stock		15,806		19,701		12,201		8,451		3,951
Premises and equipment, net		12,814		13,068		13,302		13,557		13,663
Operating lease right-of-use asset		8,925		9,338		9,672		10,078		10,483
Foreclosed real estate, net		3,562		3,618		4,374		4,656		3,844
SBA servicing asset, net		10,554		10,234		10,916		11,155		10,535
Mortgage servicing asset, net		6,925		7,747		8,593		9,529		11,722
Bank owned life insurance		67,841		59,437		59,061		36,263		36,033
Other assets		12,051		5,385		5,323		4,921		5,606
Total assets	$	3,142,317	$	3,106,158	$	2,750,228	$	2,517,840	$	2,154,360

LIABILITIES
Noninterest-bearing deposits	$	615,650	$	592,444	$	640,312	$	618,054	$	546,164
Interest-bearing deposits		1,766,491		1,670,576		1,471,515		1,356,777		1,199,756
Total deposits		2,382,141		2,263,020		2,111,827		1,974,831		1,745,920
Federal Home Loan Bank advances		380,000		500,000		300,000		200,000		80,000
Other borrowings		405		459		468		474		479
Operating lease liability		9,445		9,861		10,241		10,648		11,048
Accrued interest payable		207		204		208		202		206
Other liabilities		59,709		42,391		51,330		67,431		61,332
Total liabilities	$	2,831,907	$	2,815,935	$	2,474,074	$	2,253,586	$	1,898,985

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		255		255		255		256		257
Additional paid-in capital		51,753		51,559		51,181		52,924		55,977
Retained earnings		254,165		238,577		224,711		210,910		199,102
Accumulated other comprehensive income (loss)		4,237		(168)		7		164		39
Total shareholders' equity		310,410		290,223		276,154		264,254		255,375
Total liabilities and shareholders' equity	$	3,142,317	$	3,106,158	$	2,750,228	$	2,517,840	$	2,154,360

METROCITY BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands, except per share data)	2022		2021		2021		2021		2021
Interest and dividend income:
Loans, including Fees	$	31,459	$	30,496	$	29,127	$	25,728	$	22,500
Other investment income		492		360		196		159		170
Federal funds sold		2		1		1		1		2
Total interest income		31,953		30,857		29,324		25,888		22,672

Interest expense:
Deposits		1,139		1,069		968		919		992
FHLB advances and other borrowings		161		167		167		144		146
Total interest expense		1,300		1,236		1,135		1,063		1,138

Net interest income		30,653		29,621		28,189		24,825		21,534

Provision for loan losses		104		546		2,579		2,205		1,599

Net interest income after provision for loan losses		30,549		29,075		25,610		22,620		19,935

Noninterest income:
Service charges on deposit accounts		481		466		446		411		373
Other service charges, commissions and fees		2,159		3,015		4,147		3,877		3,398
Gain on sale of residential mortgage loans		1,211		—		—		—		—
Mortgage servicing income, net		101		95		132		(957)		166
Gain on sale of SBA loans		1,568		2,895		3,358		2,845		1,854
SBA servicing income, net		1,644		634		1,212		1,905		2,133
Other income		492		386		237		513		262
Total noninterest income		7,656		7,491		9,532		8,594		8,186

Noninterest expense:
Salaries and employee benefits		7,096		7,819		8,679		6,915		6,699
Occupancy		1,227		1,206		1,295		1,252		1,275
Data Processing		277		252		257		283		308
Advertising		150		148		131		117		145
Other expenses		3,429		3,087		2,749		3,526		2,281
Total noninterest expense		12,179		12,512		13,111		12,093		10,708

Income before provision for income taxes		26,026		24,054		22,031		19,121		17,413
Provision for income taxes		6,597		6,609		5,149		4,728		4,432
Net income available to common shareholders	$	19,429	$	17,445	$	16,882	$	14,393	$	12,981

METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES

	Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	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⁾	$	399,642	$	365	0.37	%	$	345,311	$	241	0.28	%	$	125,699	$	72	0.23	%
Investment securities		36,842		129	1.42			33,682		120	1.41			18,164		100	2.23
Total investments		436,484		494	0.46			378,993		361	0.38			143,863		172	0.48
Construction and development		30,583		377	5.00			50,142		639	5.06			40,954		531	5.26
Commercial real estate		549,132		7,887	5.82			524,770		7,680	5.81			491,635		7,078	5.84
Commercial and industrial		65,450		1,076	6.67			77,911		1,353	6.89			152,433		1,920	5.11
Residential real estate		1,906,847		22,074	4.69			1,800,390		20,804	4.58			1,068,495		12,930	4.91
Consumer and other		206		45	88.59			189		20	41.98			174		41	95.56
Gross loans⁽²⁾		2,552,218		31,459	5.00			2,453,402		30,496	4.93			1,753,691		22,500	5.20
Total earning assets		2,988,702		31,953	4.34			2,832,395		30,857	4.32			1,897,554		22,672	4.85
Noninterest-earning assets		142,042						140,594						111,164
Total assets		3,130,744						2,972,989						2,008,718
Interest-bearing liabilities:
NOW and savings deposits		187,259		75	0.16			136,102		64	0.19			92,312		47	0.21
Money market deposits		1,085,751		658	0.25			949,148		550	0.23			534,192		337	0.26
Time deposits		441,228		406	0.37			480,303		455	0.38			491,913		608	0.50
Total interest-bearing deposits		1,714,238		1,139	0.27			1,565,553		1,069	0.27			1,118,417		992	0.36
Borrowings		468,348		161	0.14			465,141		167	0.14			87,483		146	0.68
Total interest-bearing liabilities		2,182,586		1,300	0.24			2,030,694		1,236	0.24			1,205,900		1,138	0.38
Noninterest-bearing liabilities:
Noninterest-bearing deposits		588,343						592,300						483,691
Other noninterest-bearing liabilities		67,301						70,915						72,534
Total noninterest-bearing liabilities		655,644						663,215						556,225
Shareholders' equity		292,514						279,080						246,593
Total liabilities and shareholders' equity	$	3,130,744					$	2,972,989					$	2,008,718
Net interest income			$	30,653					$	29,621					$	21,534
Net interest spread					4.10						4.08						4.47
Net interest margin					4.16						4.15						4.60

(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
	March 31, 2022				December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	38,683	1.6	%	$	38,857	1.6	%	$	64,140	2.7	%	$	58,668	2.8	%	$	52,202	2.8	%
Commercial Real Estate		567,031	22.5			520,488	20.7			503,417	21.2			475,658	22.7			473,281	25.3
Commercial and Industrial		66,073	2.6			73,072	2.9			82,099	3.5			134,076	6.4			166,915	8.9
Residential Real Estate		1,846,434	73.3			1,879,012	74.8			1,718,593	72.6			1,430,843	68.1			1,181,385	63.0
Consumer and other		130	—			79	—			238	—			169	—			169	—
Gross loans	$	2,518,351	100.0	%	$	2,511,508	100.0	%	$	2,368,487	100.0	%	$	2,099,414	100.0	%	$	1,873,952	100.0	%
Unearned income		(6,051)				(6,438)				(6,782)				(7,647)				(7,167)
Allowance for loan losses		(16,674)				(16,952)				(16,445)				(13,860)				(11,735)
Net loans	$	2,495,626			$	2,488,118			$	2,345,260			$	2,077,907			$	1,855,050

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS


	As of the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2022			2021			2021			2021			2021
Nonaccrual loans	$	9,506		$	8,759		$	5,955		$	6,623		$	9,071
Past due loans 90 days or more and still accruing		—			342			—			—			—
Accruing troubled debt restructured loans		2,901			2,697			2,726			2,753			2,863
Total non-performing loans		12,407			11,798			8,681			9,376			11,934
Other real estate owned		3,562			3,618			4,374			4,656			3,844
Total non-performing assets	$	15,969		$	15,416		$	13,055		$	14,032		$	15,778

Nonperforming loans to gross loans		0.49	%		0.47	%		0.37	%		0.45	%		0.64	%
Nonperforming assets to total assets		0.51			0.50			0.47			0.56			0.73
Allowance for loan losses to non-performing loans		134.39			143.69			189.44			147.82			98.33

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2022			2021			2021			2021			2021
Balance, beginning of period	$	16,952		$	16,445		$	13,860		$	11,735		$	10,135
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—
Commercial real estate		(2)			39			(4)			23			(3)
Commercial and industrial		389			—			—			60			4
Residential real estate		—			—			—			—			—
Consumer and other		(5)			—			(2)			(3)			(2)
Total net charge-offs/(recoveries)		382			39			(6)			80			(1)
Provision for loan losses		104			546			2,579			2,205			1,599
Balance, end of period	$	16,674		$	16,952		$	16,445		$	13,860		$	11,735
Total loans at end of period	$	2,518,351		$	2,511,508		$	2,368,487		$	2,099,414		$	1,873,952
Average loans⁽¹⁾	$	2,533,254		$	2,453,402		$	2,241,207		$	1,979,556		$	1,753,691
Net charge-offs to average loans		0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Allowance for loan losses to total loans		0.66			0.67			0.69			0.66			0.63

(1)	Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR FIRST QUARTER 2022