ATLANTA, Oct. 21, 2022 /PRNewswire/ -- MetroCity Bankshares, Inc. ("MetroCity" or the "Company") (NASDAQ:MCBS), holding company for Metro City Bank (the "Bank"), today reported net income of $16.9 million, or $0.66 per diluted share, for the third quarter of 2022, compared to $16.1 million, or $0.63 per diluted share, for the second quarter of 2022, and $16.9 million, or $0.66 per diluted share, for the third quarter of 2021. For the nine months ended September 30, 2022, the Company reported net income of $52.4 million, or $2.04 per diluted share, compared to $44.3 million, or $1.71 per diluted share, for the same period in 2021.

Third Quarter 2022 Highlights:

Annualized return on average assets was 2.07%, compared to 2.16% for the second quarter of 2022 and 2.61% for the third quarter of 2021.
Annualized return on average equity was 20.56%, compared to 20.65% for the second quarter of 2022 and 25.23% for the third quarter of 2021.
Efficiency ratio of 36.4%, compared to 37.6% for the second quarter of 2022 and 34.8% for the third quarter of 2021.
Total assets increased by $180.6 million, or 5.7%, to $3.35 billion from the previous quarter.
Total loans increased by $208.3 million, or 7.5%, to $2.98 billion from the previous quarter.
Total deposits increased by $173.8 million, or 7.3%, to $2.57 billion from the previous quarter
Annualized net charge-off to average loans for the quarter was 0.00%, compared to 0.00% for both the second quarter of 2022 and the third quarter of 2021.

Results of Operations

Net Income

Net income was $16.9 million for the third quarter of 2022, an increase of $793,000, or 4.9%, from $16.1 million for the second quarter of 2022. This increase was primarily due to a $1.7 million credit provision for loan losses recorded during the quarter, an increase in noninterest income of $448,000, and a decrease in noninterest expense of $431,000, offset by a decrease in net interest income of $432,000 and an increase in income tax expense of $1.4 million. Net income increased by $11,000, or 0.1%, in the third quarter of 2022 compared to net income of $16.9 million for the third quarter of 2021. This slight increase was due to an increase in net interest income of $1.6 million, a decrease in provision for loan losses of $4.3 million and a decrease in noninterest expense of $423,000, offset by a decrease in noninterest income of $4.4 million and an increase in provision for income taxes of $1.9 million.

Net Interest Income and Net Interest Margin

Interest income totaled $38.3 million for the third quarter of 2022, an increase of $5.3 million, or 16.0%, from the previous quarter, primarily due to a $276.0 million increase in average loan balances. We recognized Paycheck Protection Program ("PPP") loan fee income of $145,000 during the third quarter of 2022 compared to $341,000 recognized during the second quarter of 2022. As compared to the third quarter of 2021, interest income for the third quarter of 2022 increased by $9.0 million, or 30.6%, primarily due to an increase in average loan balances of $650.7 million.

Interest expense totaled $8.5 million for the third quarter of 2022, an increase of $5.7 million, or 203.4%, from the previous quarter, primarily due to a 93 basis points increase in deposit costs and a 95 basis points increase in borrowing costs coupled with a $112.8 million increase in average interest-bearing deposits and a $128.6 million increase in average borrowings. As compared to the third quarter of 2021, interest expense for the third quarter of 2022 increased by $7.4 million, or 649.7%, due to a 120 basis points increase in deposit costs and a 135 basis points increase in borrowing costs coupled with a $486.5 million increase in average interest-bearing deposits and a $134.7 million increase in average borrowings.

The net interest margin for the third quarter of 2022 was 3.84% compared to 4.26% for the previous quarter, a decrease of 42 basis points. The yield on average interest-earning assets for the third quarter of 2022 increased by 29 basis points to 4.94% from 4.65% for the previous quarter, while the cost of average interest-bearing liabilities for the third quarter of 2022 increased by 95 basis points to 1.51% from 0.56% for the previous quarter. Average earning assets increased by $232.2 million from the previous quarter, primarily due to an increase in average loans of $276.0 million, offset by a decrease of $42.8 million in average interest-earning cash accounts. Average interest-bearing liabilities increased by $241.4 million from the previous quarter as average interest-bearing deposits increased by $112.8 million and average borrowings increased by $128.6 million.

As compared to the same period in 2021, the net interest margin for the third quarter of 2022 decreased by 73 basis points to 3.84% from 4.57%, primarily due to a 123 basis point increase in the cost of average interest-bearing liabilities of $2.24 billion, offset by a 19 basis point increase in the yield on average interest-earning assets of $3.08 billion. Average earning assets for the third quarter of 2022 increased by $631.2 million from the third quarter of 2021, primarily due to a $650.7 million increase in average loans. Average interest-bearing liabilities for the third quarter of 2022 increased by $621.2 million from the third quarter of 2021, driven by an increase in average interest-bearing deposits of $486.5 million and an increase in average borrowings of $134.7 million.

Noninterest Income

Noninterest income for the third quarter of 2022 was $5.1 million, an increase of $448,000, or 9.6%, from the second quarter of 2022, primarily due to a significant increase in Small Business Administration ("SBA") servicing income and higher gains on sale of SBA loans as no SBA loans were sold during the second quarter of 2022, partially offset by lower mortgage loan fees, gains on sale of mortgage loans and mortgage servicing income. During the third quarter of 2022, we recorded a $111,000 fair value gain on our SBA servicing asset and no fair value impairment adjustment was recorded on our mortgage servicing asset.

Compared to the same period in 2021, noninterest income for the third quarter of 2022 decreased by $4.4 million, or 46.5%, primarily due to much lower gains on sale of SBA loans, mortgage loan fees and mortgage servicing income.

Noninterest Expense

Noninterest expense for the third quarter of 2022 totaled $12.7 million, a decrease of $431,000, or 3.3%, from $13.1 million for the second quarter of 2022. This decrease was primarily attributable to lower employee salaries, professional fees and FDIC deposit insurance premiums. Compared to the third quarter of 2021, noninterest expense during the third quarter of 2022 decreased by $423,000, or 3.2%, primarily due to lower salaries and commissions, occupancy expenses and bank security expenses, partially offset by higher communications expenses.

The Company's efficiency ratio was 36.4% for the third quarter of 2022 compared to 37.6% and 34.8% for the second quarter of 2022 and third quarter of 2021, respectively. For the nine months ended September 30, 2022, the efficiency ratio was 35.2% compared with 35.6% for the same period in 2021.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2022 was 29.3%, compared to 26.0% for the second quarter of 2022 and 23.4% for the third quarter of 2021. The significant increase in the effective tax rate during the third quarter of 2022 was due to additional income tax expense of $1.4 million recorded during the quarter for the re-allocation of state income tax apportionment schedules for prior year's tax returns.

Balance Sheet

Total Assets

Total assets were $3.35 billion at September 30, 2022, an increase of $180.6 million, or 5.7%, from $3.17 billion at June 30, 2022, and an increase of $598.2 million, or 21.8%, from $2.75 billion at September 30, 2021. The $180.6 million increase in total assets at September 30, 2022 compared to June 30, 2022 was primarily due to increases in loans of $208.3 million, other assets of $13.6 million and federal funds sold of $12.6 million, partially offset by a decrease in cash and due from banks of $56.0 million. The $598.2 million increase in total assets at September 30, 2022 compared to September 30, 2021 was primarily due to increases in loans of $616.6 million, federal funds sold of $13.4 million, equity securities of $9.5 million, bank owned life insurance of $9.6 million and other assets of $33.5 million, partially offset by a $86.9 million decrease in cash and due from banks.

Loans

Loans held for investment were $2.98 billion at September 30, 2022, an increase of $208.3 million, or 7.5%, compared to $2.77 billion at June 30, 2022, and an increase of $616.6 million, or 26.1%, compared to $2.36 billion at September 30, 2021. The increase in loans at September 30, 2022 compared to June 30, 2022 was primarily due to a $6.3 million increase in construction and development loans, a $27.5 million increase in commercial real estate loans and a $181.7 million increase in residential mortgages, offset by a $5.2 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $1.6 million as of September 30, 2022. PPP loans totaled $8.9 million as of June 30, 2022 and $42.0 million as of September 30, 2021. There were no loans classified as held for sale at September 30, 2022, June 30, 2022 or September 30, 2021.

Deposits

Total deposits were $2.57 billion at September 30, 2022, an increase of $173.8 million, or 7.3%, compared to total deposits of $2.40 billion at June 30, 2022, and an increase of $459.0 million, or 21.7%, compared to total deposits of $2.11 billion at September 30, 2021. The increase in total deposits at September 30, 2022 compared to June 30, 2022 was due to a $199.5 million increase in time deposits and a $5.6 million increase in money market accounts, offset by a $17.9 million decrease in noninterest-bearing demand deposits, a $7.4 million decrease in interest-bearing demand deposits and a $6.0 million decrease in savings accounts.

Noninterest-bearing deposits were $602.2 million at September 30, 2022, compared to $620.2 million at June 30, 2022 and $640.3 million at September 30, 2021. Noninterest-bearing deposits constituted 23.4% of total deposits at September 30, 2022, compared to 25.9% at June 30, 2022 and 30.3% at September 30, 2021. Interest-bearing deposits were $1.97 billion at September 30, 2022, compared to $1.78 billion at June 30, 2022 and $1.47 billion at September 30, 2021. Interest-bearing deposits constituted 76.6% of total deposits at September 30, 2022, compared to 74.1% at June 30, 2022 and 69.7% at September 30, 2021.

Asset Quality

The Company recorded a credit provision for loan losses of $1.7 million during the third quarter of 2022, compared to a $2.6 million provision expense during the third quarter of 2021. No provision for loan losses was recorded during the second quarter of 2022. The credit provision recorded during the third quarter of 2022 was due to the release of additional reserves allocated for the uncertainties in our loan portfolio caused by the ongoing COVID-19 pandemic. Annualized net charge-offs to average loans for the third quarter of 2022 was 0.00%, compared to 0.00% for both the second quarter of 2022 and third 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 $32.5 million, or 0.97% of total assets, at September 30, 2022, a decrease of $1.5 million from $34.0 million, or 1.07% of total assets, at June 30, 2022, and an increase of $19.4 million from $13.1 million, or 0.47% of total assets, at September 30, 2021. The decrease in nonperforming assets at September 30, 2022 compared to June 30, 2022 was due to a $2.3 million decrease in nonaccrual loans and a $37,000 decrease in accruing troubled debt restructurings, offset by a $766,000 increase in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.50% at September 30, 2022, compared to 0.60% at June 30, 2022 and 0.69% at September 30, 2021. Allowance for loan losses as a percentage of nonperforming loans was 53.25% at September 30, 2022, compared to 54.79% and 189.44% at June 30, 2022 and September 30, 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 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; 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; higher inflation and its impacts; 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 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

METROCITYBANKSHARES, INC SELECTED FINANCIAL DATA
	As of and for the Three Months Ended															As of and for the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)	2022			2022			2022			2021			2021			2022			2021
Selected income statement data:
Interest income	$	38,297		$	33,025		$	31,953		$	30,857		$	29,324		$	103,275		$	77,884
Interest expense		8,509			2,805			1,300			1,236			1,135			12,614			3,336
Net interest income		29,788			30,220			30,653			29,621			28,189			90,661			74,548
Provision for loan losses		(1,703)			—			104			546			2,579			(1,599)			6,383
Noninterest income		5,101			4,653			7,656			7,491			9,532			17,410			26,312
Noninterest expense		12,688			13,119			12,179			12,512			13,111			37,986			35,912
Income tax expense		7,011			5,654			6,597			6,609			5,149			19,262			14,309
Net income		16,893			16,100			19,429			17,445			16,882			52,422			44,256
Per share data:
Basic income per share	$	0.66		$	0.63		$	0.76		$	0.69		$	0.66		$	2.06		$	1.73
Diluted income per share	$	0.66		$	0.63		$	0.76		$	0.68		$	0.66		$	2.04		$	1.71
Dividends per share	$	0.15		$	0.15		$	0.15		$	0.14		$	0.12		$	0.45		$	0.32
Book value per share (at period end)	$	13.76		$	12.69		$	12.19		$	11.40		$	10.84		$	13.76		$	10.84
Shares of common stock outstanding		25,370,417			25,451,125			25,465,236			25,465,236			25,465,236			25,370,417			25,465,236
Weighted average diluted shares		25,702,023			25,729,156			25,719,035			25,720,128			25,729,043			25,732,004			25,805,480
Performance ratios:
Return on average assets		2.07	%		2.16	%		2.52	%		2.33	%		2.61	%		2.25	%		2.59	%
Return on average equity		20.56			20.65			26.94			24.80			25.23			22.57			23.09
Dividend payout ratio		22.75			23.85			19.76			20.52			18.24			21.98			18.64
Yield on total loans		5.11			4.95			5.00			4.93			5.16			5.03			5.19
Yield on average earning assets		4.94			4.65			4.34			4.32			4.75			4.65			4.79
Cost of average interest bearing liabilities		1.51			0.56			0.24			0.24			0.28			0.79			0.32
Cost of deposits		1.48			0.55			0.27			0.27			0.28			0.79			0.30
Net interest margin		3.84			4.26			4.16			4.15			4.57			4.08			4.59
Efficiency ratio⁽¹⁾		36.37			37.62			31.79			33.71			34.76			35.15			35.61
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.00	%		0.00	%		0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Nonperforming assets to gross loans and OREO		1.09			1.22			0.63			0.61			0.55			1.09			0.55
ALL to nonperforming loans		53.25			54.79			134.39			143.69			189.44			53.25			189.44
ALL to loans held for investment		0.50			0.60			0.66			0.67			0.69			0.50			0.69
Balance sheet and capital ratios:
Gross loans held for investment to deposits		116.21	%		115.86	%		105.72	%		110.98	%		112.15	%		116.21	%		112.15	%
Noninterest bearing deposits to deposits		23.43			25.87			25.84			26.18			30.32			23.43			30.32
Common equity to assets		10.42			10.20			9.88			9.34			10.04			10.42			10.04
Leverage ratio		9.90			10.31			9.46			9.44			10.34			9.90			10.34
Common equity tier 1 ratio		16.18			16.70			17.24			16.76			16.61			16.18			16.61
Tier 1 risk-based capital ratio		16.18			16.70			17.24			16.76			16.61			16.18			16.61
Total risk-based capital ratio		16.94			17.60			18.22			17.77			17.64			16.94			17.64
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	550,587		$	589,500		$	605,112		$	608,208		$	669,358		$	550,587		$	669,358
Mortgage loan production		255,662			326,973			162,933			237,195			368,790			745,568			958,995
Mortgage loan sales		—			37,928			56,987			—			—			94,915			—
SBA loans serviced for others		489,120			504,894			528,227			542,991			549,818			489,120			549,818
SBA loan production		22,193			21,407			50,689			52,727			85,265			94,289			233,107
SBA loan sales		8,588			—			22,898			30,169			37,984			31,486			94,541
_____________________________________________
(1) Represents noninterest expense divided by the sum of net interest income plus noninterest income.

METROCITYBANKSHARES, INC CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	As of the Quarter Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands, except per share data)	2022		2022		2022		2021		2021
ASSETS
Cash and due from banks	$	164,054	$	220,027	$	418,988	$	432,523	$	250,995
Federal funds sold		15,669		3,069		5,743		8,818		2,294
Cash and cash equivalents		179,723		223,096		424,731		441,341		253,289
Equity securities		10,452		10,778		11,024		11,386		993
Securities available for sale (at fair value)		19,978		21,394		23,886		25,733		16,507
Loans		2,978,318		2,770,020		2,512,300		2,505,070		2,361,705
Allowance for loan losses		(14,982)		(16,678)		(16,674)		(16,952)		(16,445)
Loans less allowance for loan losses		2,963,336		2,753,342		2,495,626		2,488,118		2,345,260
Loans held for sale		—		—		37,928		—		—
Accrued interest receivable		11,732		10,990		10,644		11,052		10,737
Federal Home Loan Bank stock		15,619		15,619		15,806		19,701		12,201
Premises and equipment, net		13,664		12,847		12,814		13,068		13,302
Operating lease right-of-use asset		8,835		8,518		8,925		9,338		9,672
Foreclosed real estate, net		4,328		3,562		3,562		3,618		4,374
SBA servicing asset, net		8,324		8,216		10,554		10,234		10,916
Mortgage servicing asset, net		4,975		6,090		6,925		7,747		8,593
Bank owned life insurance		68,697		68,267		67,841		59,437		59,061
Other assets		38,776		25,131		12,051		5,385		5,323
Total assets	$	3,348,439	$	3,167,850	$	3,142,317	$	3,106,158	$	2,750,228


LIABILITIES
Noninterest-bearing deposits	$	602,246	$	620,182	$	615,650	$	592,444	$	640,312
Interest-bearing deposits		1,968,607		1,776,826		1,766,491		1,670,576		1,471,515
Total deposits		2,570,853		2,397,008		2,382,141		2,263,020		2,111,827
Federal Home Loan Bank advances		375,000		375,000		380,000		500,000		300,000
Other borrowings		396		399		405		459		468
Operating lease liability		9,303		9,031		9,445		9,861		10,241
Accrued interest payable		1,489		703		207		204		208
Other liabilities		42,369		62,640		59,709		42,391		51,330
Total liabilities	$	2,999,410	$	2,844,781	$	2,831,907	$	2,815,935	$	2,474,074


SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		254		255		255		255		255
Additional paid-in capital		48,914		49,831		51,753		51,559		51,181
Retained earnings		279,475		266,426		254,165		238,577		224,711
Accumulated other comprehensive income (loss)		20,386		6,557		4,237		(168)		7
Total shareholders' equity		349,029		323,069		310,410		290,223		276,154
Total liabilities and shareholders' equity	$	3,348,439	$	3,167,850	$	3,142,317	$	3,106,158	$	2,750,228

METROCITYBANKSHARES, INC CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(Dollars in thousands, except per share data)	2022		2022		2022		2021		2021		2022		2021
Interest and dividend income:
Loans, including Fees	$	37,263	$	32,310	$	31,459	$	30,496	$	29,127	$	101,032	$	77,355
Other investment income		1,011		711		492		360		196		2,214		525
Federal funds sold		23		4		2		1		1		29		4
Total interest income		38,297		33,025		31,953		30,857		29,324		103,275		77,884


Interest expense:
Deposits		6,964		2,384		1,139		1,069		968		10,487		2,879
FHLB advances and other borrowings		1,545		421		161		167		167		2,127		457
Total interest expense		8,509		2,805		1,300		1,236		1,135		12,614		3,336


Net interest income		29,788		30,220		30,653		29,621		28,189		90,661		74,548


Provision for loan losses		(1,703)		—		104		546		2,579		(1,599)		6,383


Net interest income after provision for loan losses		31,491		30,220		30,549		29,075		25,610		92,260		68,165


Noninterest income:
Service charges on deposit accounts		509		518		481		466		446		1,508		1,230
Other service charges, commissions and fees		2,676		3,647		2,159		3,015		4,147		8,482		11,422
Gain on sale of residential mortgage loans		—		806		1,211		—		—		2,017		—
Mortgage servicing income, net		(358)		(5)		101		95		132		(262)		(659)
Gain on sale of SBA loans		500		—		1,568		2,895		3,358		2,068		8,057
SBA servicing income, net		1,330		(1,077)		1,644		634		1,212		1,897		5,250
Other income		444		764		492		386		237		1,700		1,012
Total noninterest income		5,101		4,653		7,656		7,491		9,532		17,410		26,312


Noninterest expense:
Salaries and employee benefits		7,756		7,929		7,096		7,819		8,679		22,781		22,293
Occupancy		1,167		1,200		1,227		1,206		1,295		3,594		3,822
Data Processing		270		261		277		252		257		808		848
Advertising		158		126		150		148		131		434		393
Other expenses		3,337		3,603		3,429		3,087		2,749		10,369		8,556
Total noninterest expense		12,688		13,119		12,179		12,512		13,111		37,986		35,912


Income before provision for income taxes		23,904		21,754		26,026		24,054		22,031		71,684		58,565
Provision for income taxes		7,011		5,654		6,597		6,609		5,149		19,262		14,309
Net income available to common shareholders	$	16,893	$	16,100	$	19,429	$	17,445	$	16,882	$	52,422	$	44,256

METROCITYBANKSHARES, INC AVERAGE BALANCES AND YIELDS/RATES
	Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 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⁾	$	151,177	$	903	2.37	%	$	193,955	$	592	1.22	%	$	188,296	$	111	0.23	%
Investment securities		34,792		131	1.49			35,754		123	1.38			17,244		86	1.98
Total investments		185,969		1,034	2.21			229,709		715	1.25			205,540		197	0.38
Construction and development		38,636		530	5.44			32,647		414	5.09			53,871		727	5.35
Commercial real estate		601,370		9,905	6.53			575,917		8,403	5.85			507,039		7,648	5.98
Commercial and industrial		50,605		909	7.13			54,423		915	6.74			102,813		2,576	9.94
Residential real estate		2,201,186		25,885	4.67			1,952,730		22,545	4.63			1,577,276		18,144	4.56
Consumer and other		137		34	98.46			266		33	49.76			208		32	61.04
Gross loans⁽²⁾		2,891,934		37,263	5.11			2,615,983		32,310	4.95			2,241,207		29,127	5.16
Total earning assets		3,077,903		38,297	4.94			2,845,692		33,025	4.65			2,446,747		29,324	4.75
Noninterest-earning assets		158,579						146,669						123,888
Total assets		3,236,482						2,992,361						2,570,635
Interest-bearing liabilities:
NOW and savings deposits		186,459		338	0.72			197,460		102	0.21			115,775		59	0.20
Money market deposits		1,179,954		5,189	1.74			1,166,272		1,860	0.64			757,654		432	0.23
Time deposits		499,577		1,437	1.14			389,449		422	0.43			506,049		477	0.37
Total interest-bearing deposits		1,865,990		6,964	1.48			1,753,181		2,384	0.55			1,379,478		968	0.28
Borrowings		375,405		1,545	1.63			246,779		421	0.68			240,704		167	0.28
Total interest-bearing liabilities		2,241,395		8,509	1.51			1,999,960		2,805	0.56			1,620,182		1,135	0.28
Noninterest-bearing liabilities:
Noninterest-bearing deposits		599,902						611,763						600,388
Other noninterest-bearing liabilities		69,131						67,979						84,568
Total noninterest-bearing liabilities		669,033						679,742						684,956
Shareholders' equity		326,054						312,659						265,497
Total liabilities and shareholders' equity	$	3,236,482					$	2,992,361					$	2,570,635
Net interest income			$	29,788					$	30,220					$	28,189
Net interest spread					3.43						4.09						4.47
Net interest margin					3.84						4.26						4.57
______________________________________________
(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
	Nine Months Ended
	September 30, 2022						September 30, 2021
	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⁾	$	247,348	$	1,860	1.01	%	$	161,420	$	260	0.22	%
Investment securities		35,789		383	1.43			17,493		269	2.06
Total investments		283,137		2,243	1.06			178,913		529	0.40
Construction and development		33,985		1,322	5.20			47,380		1,874	5.29
Commercial real estate		575,664		26,195	6.08			496,957		22,069	5.94
Commercial and industrial		56,772		2,900	6.83			133,703		7,054	7.05
Residential real estate		2,021,332		70,504	4.66			1,315,043		46,254	4.70
Consumer and other		203		111	73.11			187		104	74.36
Gross loans⁽²⁾		2,687,956		101,032	5.03			1,993,270		77,355	5.19
Total earning assets		2,971,093		103,275	4.65			2,172,183		77,884	4.79
Noninterest-earning assets		149,157						115,784
Total assets		3,120,250						2,287,967
Interest-bearing liabilities:
NOW and savings deposits		190,390		515	0.36			105,139		158	0.20
Money market deposits		1,144,337		7,706	0.90			651,158		1,143	0.23
Time deposits		443,632		2,266	0.68			506,445		1,578	0.42
Total interest-bearing deposits		1,778,359		10,487	0.79			1,262,742		2,879	0.30
Borrowings		363,170		2,127	0.78			141,435		457	0.43
Total interest-bearing liabilities		2,141,529		12,614	0.79			1,404,177		3,336	0.32
Noninterest-bearing liabilities:
Noninterest-bearing deposits		600,045						548,844
Other noninterest-bearing liabilities		68,144						78,685
Total noninterest-bearing liabilities		668,189						627,529
Shareholders' equity		310,532						256,261
Total liabilities and shareholders' equity	$	3,120,250					$	2,287,967
Net interest income			$	90,661					$	74,548
Net interest spread					3.86						4.47
Net interest margin					4.08						4.59
_______________________________________________
(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
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	51,300	1.7	%	$	45,042	1.6	%	$	38,683	1.6	%	$	38,857	1.6	%	$	64,140	2.7	%
Commercial Real Estate		608,700	20.4			581,234	20.9			567,031	22.5			520,488	20.7			503,417	21.2
Commercial and Industrial		52,693	1.8			57,843	2.1			66,073	2.6			73,072	2.9			82,099	3.5
Residential Real Estate		2,274,679	76.1			2,092,952	75.4			1,846,434	73.3			1,879,012	74.8			1,718,593	72.6
Consumer and other		198	—			165	—			130	—			79	—			238	—
Gross loans	$	2,987,570	100.0	%	$	2,777,236	100.0	%	$	2,518,351	100.0	%	$	2,511,508	100.0	%	$	2,368,487	100.0	%
Unearned income		(9,252)				(7,216)				(6,051)				(6,438)				(6,782)
Allowance for loan losses		(14,982)				(16,678)				(16,674)				(16,952)				(16,445)
Net loans	$	2,963,336			$	2,753,342			$	2,495,626			$	2,488,118			$	2,345,260

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS
	As of the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2022			2022			2022			2021			2021
Nonaccrual loans	$	17,700		$	19,966		$	9,506		$	8,759		$	5,955
Past due loans 90 days or more and still accruing		—			—			—			342			—
Accruing troubled debt restructured loans		10,437			10,474			2,901			2,697			2,726
Total non-performing loans		28,137			30,440			12,407			11,798			8,681
Other real estate owned		4,328			3,562			3,562			3,618			4,374
Total non-performing assets	$	32,465		$	34,002		$	15,969		$	15,416		$	13,055


Nonperforming loans to gross loans		0.94	%		1.10	%		0.49	%		0.47	%		0.37	%
Nonperforming assets to total assets		0.97			1.07			0.51			0.50			0.47
Allowance for loan losses to non-performing loans		53.25			54.79			134.39			143.69			189.44

METROCITY BANKSHARES, INC. ALLOWANCE FOR LOAN LOSSES
	As of and for the Three Months Ended															As of and for the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2022			2022			2022			2021			2021			2022			2021
Balance, beginning of period	$	16,678		$	16,674		$	16,952		$	16,445		$	13,860		$	16,952		$	10,135
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		(1)			(2)			(2)			39			(4)			(5)			16
Commercial and industrial		(6)			(2)			389			—			—			381			64
Residential real estate		—			—			—			—			—			—			—
Consumer and other		—			—			(5)			—			(2)			(5)			(7)
Total net charge-offs/(recoveries)		(7)			(4)			382			39			(6)			371			73
Provision for loan losses		(1,703)			—			104			546			2,579			(1,599)			6,383
Balance, end of period	$	14,982		$	16,678		$	16,674		$	16,952		$	16,445		$	14,982		$	16,445
Total loans at end of period	$	2,987,570		$	2,777,236		$	2,518,351		$	2,511,508		$	2,368,487		$	2,987,570		$	2,368,487
Average loans⁽¹⁾	$	2,891,934		$	2,597,019		$	2,533,254		$	2,453,402		$	2,241,207		$	2,678,474		$	1,993,270
Net charge-offs to average loans		0.00	%		0.00	%		0.06	%		0.01	%		0.00	%		0.02	%		0.00	%
Allowance for loan losses to total loans		0.50			0.60			0.66			0.67			0.69			0.50			0.69
________________________________________________
(1) Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

METROCITY BANKSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2022