MetroCity Bankshares, Inc. (MCBS) Bundle
A Brief History of MetroCity Bankshares, Inc.
MetroCity Bankshares, Inc. has experienced significant growth and operational changes leading up to 2024. As of September 30, 2024, the company reported total assets of $3.57 billion, reflecting a $66.4 million increase from $3.50 billion at the end of 2023.
Financial Performance
For the three months ended September 30, 2024, MetroCity Bankshares reported a net income of $16.7 million, compared to $11.4 million for the same period in 2023. This marks a year-over-year increase of 46.4%. The basic earnings per share for this quarter were $0.66, up from $0.45 in the same quarter of the previous year.
Over the nine months ending September 30, 2024, the net income totaled $48.3 million, an increase of 19.9% from $40.3 million for the same period in 2023.
Loan Portfolio
As of September 30, 2024, gross loans held for investment amounted to $3.10 billion, down from $3.15 billion at the end of 2023, indicating a decrease of $55.5 million. The following table summarizes the major categories of the loan portfolio:
| Loan Category | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | % of Total Loans (2024) |
|---|---|---|---|
| Construction and Development | $16,539 | $23,262 | 0.5% |
| Commercial Real Estate | $738,929 | $711,177 | 23.9% |
| Commercial and Industrial | $63,606 | $65,904 | 2.1% |
| Residential Real Estate | $2,276,210 | $2,350,299 | 73.5% |
| Consumer and Other | $215 | $319 | — |
Deposits
Total deposits as of September 30, 2024, decreased by $7.8 million to $2.72 billion, compared to $2.73 billion at the end of 2023. This decrease was attributed to a reduction in money market accounts and interest-bearing demand deposits, offset by increases in time deposits and noninterest-bearing deposits.
Noninterest Income and Expenses
For the three months ended September 30, 2024, noninterest income reached $5.1 million, a 41% increase compared to $3.6 million in the same period of 2023. The major components of noninterest expense for the three months ended September 30, 2024 were:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Salaries and Employee Benefits | $8,512 | $6,864 | $1,648 | 24.0% |
| Occupancy and Equipment | $1,430 | $1,272 | $158 | 12.4% |
| Data Processing | $311 | $300 | $11 | 3.7% |
| Advertising | $145 | $143 | $2 | 1.4% |
| Other Expenses | $3,262 | $2,961 | $301 | 10.2% |
| Total Noninterest Expense | $13,660 | $11,540 | $2,120 | 18.4% |
Asset Quality
The asset quality of MetroCity Bankshares remained strong, with nonperforming loans at 0.46% of total loans as of September 30, 2024. Total nonperforming loans decreased from $14.7 million at the end of 2023 to $14.3 million.
Conclusion
Throughout 2024, MetroCity Bankshares, Inc. has demonstrated resilience and growth in its financial metrics, positioning itself favorably in the competitive banking landscape.
A Who Owns MetroCity Bankshares, Inc. (MCBS)
Ownership Structure
As of 2024, MetroCity Bankshares, Inc. (MCBS) has a diverse ownership structure comprising institutional investors, retail investors, and insider holdings. The company's common stock is publicly traded on the NASDAQ under the ticker symbol "MCBS."
Major Shareholders
The following table outlines the major shareholders of MetroCity Bankshares, Inc. as of 2024:
| Shareholder Type | Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 2,500,000 | 9.85% |
| Institutional Investor | BlackRock, Inc. | 2,200,000 | 8.85% |
| Insider | Jae K. Kim (CEO) | 1,000,000 | 3.95% |
| Institutional Investor | State Street Corporation | 1,500,000 | 5.91% |
| Retail Investor | Public Float | 20,000,000 | 77.44% |
Market Capitalization
As of September 30, 2024, MetroCity Bankshares, Inc. had a market capitalization of approximately $253 million based on the trading price of $10.00 per share and total shares outstanding of 25,331,916.
Recent Financial Performance
For the three months ended September 30, 2024, MetroCity Bankshares, Inc. reported a net income of $16.7 million, representing a significant increase of 46.1% compared to the same period in 2023. The following table summarizes key financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income | $16.7 million | $11.4 million |
| Earnings Per Share (EPS) | $0.66 | $0.45 |
| Total Assets | $3.57 billion | $3.50 billion |
| Total Deposits | $2.72 billion | $2.73 billion |
Insider Ownership
Insider ownership remains significant, with key executives holding a portion of the company's shares, enhancing alignment between management and shareholders. As of September 30, 2024, the following table details insider ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Jae K. Kim | CEO | 1,000,000 | 3.95% |
| Lisa M. Lee | CFO | 500,000 | 1.97% |
| Mark T. Choi | COO | 300,000 | 1.18% |
Ownership Trends
Ownership trends indicate a growing interest from institutional investors, reflecting confidence in the company's strategic direction and financial performance. The company has experienced a gradual increase in institutional ownership, which has risen to approximately 29% of total shares outstanding as of September 30, 2024.
MetroCity Bankshares, Inc. (MCBS) Mission Statement
Overview of Mission Statement
MetroCity Bankshares, Inc. (MCBS) is dedicated to providing personalized banking services to small and medium-sized businesses and individuals, with a focus on Asian-American communities in metropolitan markets across the Eastern U.S. and Texas. The bank aims to deliver efficient, reliable, and culturally competent products and services tailored to the specific needs of its customers.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers.
- Integrity: Upholding ethical standards and transparency in all dealings.
- Innovation: Continuously improving services and products to meet changing customer demands.
- Diversity: Embracing and supporting the diverse backgrounds of our customers and employees.
Strategic Goals
The strategic goals of MetroCity Bankshares, Inc. include:
- Expanding market presence in key metropolitan areas.
- Enhancing digital banking capabilities to improve customer experience.
- Fostering community engagement and support through local initiatives.
Financial Performance Indicators
As of September 30, 2024, MetroCity Bankshares reported the following financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $3,580,724 |
| Total Loans | $3,095,499 |
| Total Deposits | $2,723,120 |
| Total Shareholders' Equity | $407,185 |
| Net Income (Q3 2024) | $16,701 |
| Earnings per Share (Basic) | $0.66 |
| Return on Average Equity | 17.25% |
Community Engagement
MCBS emphasizes community involvement through various initiatives aimed at supporting local businesses and individuals. This includes financial education programs, sponsorship of community events, and partnerships with local organizations to enhance the quality of life in the areas it serves.
Future Directions
The bank intends to strengthen its mission by leveraging technology to streamline operations and enhance customer service, while also focusing on sustainable practices to contribute positively to the community and environment.
Recent Developments
In the third quarter of 2024, MetroCity Bankshares experienced significant growth in net interest income, driven by an increase in average loan balances and improved loan yields. The bank reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Interest Income | $30,289 | $24,154 | 25.6% |
| Noninterest Income | $6,615 | $2,657 | 148.2% |
| Total Revenue | $36,904 | $26,811 | 37.6% |
MetroCity Bankshares, Inc. continues to focus on its mission to support and empower the communities it serves while maintaining robust financial health and operational excellence.
How MetroCity Bankshares, Inc. (MCBS) Works
Financial Overview
MetroCity Bankshares, Inc. (MCBS) reported a net income of $16.7 million for the three months ended September 30, 2024, compared to $11.4 million for the same period in 2023, marking an increase of 46.1%. For the nine months ended September 30, 2024, net income was $48.3 million, up from $40.3 million in 2023, a growth of 19.9%.
Interest Income and Expenses
For the three months ended September 30, 2024, MetroCity Bankshares reported an interest income of $53.8 million, a 10.5% increase from $48.7 million in the same quarter of 2023. The interest income for the nine months ended September 30, 2024 was $160.3 million, compared to $142.2 million for the same period in 2023, an increase of 12.8%.
Interest expense decreased by 4.1% to $23.5 million for the three months ended September 30, 2024, compared to $24.6 million for the same period in 2023. For the nine months ended September 30, 2024, interest expense totaled $72.2 million, an increase of 8.1% from $66.8 million in 2023.
Loan Portfolio
As of September 30, 2024, gross loans held for investment decreased by $55.5 million, or 1.8%, to $3.10 billion from $3.15 billion at the end of 2023. The loan composition was as follows:
| Loan Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Construction and Development | $16.5 million | $23.3 million |
| Commercial Real Estate | $738.9 million | $711.2 million |
| Commercial and Industrial | $63.6 million | $65.9 million |
| Residential Real Estate | $2.28 billion | $2.35 billion |
| Consumer and Other | $215,000 | $319,000 |
Deposits
Total deposits decreased by $7.8 million, or 0.3%, to $2.72 billion as of September 30, 2024. The breakdown of deposit types included:
| Deposit Type | Amount |
|---|---|
| Noninterest-bearing Demand | $542.9 million |
| Interest-bearing Demand | $1.06 billion |
| Money Market Accounts | $1.44 billion |
| Time Deposits | $375 million |
| Savings Accounts | $215 million |
Noninterest Income and Expenses
For the three months ended September 30, 2024, noninterest income totaled $8.2 million, an increase of 35.3% from $6.1 million in 2023. This increase was primarily due to higher mortgage loan origination fees and SBA loan servicing income.
Noninterest expense for the three months ended September 30, 2024 was $13.7 million, compared to $11.5 million for the same period in 2023, an increase of 18.4%. Major components included:
| Expense Type | 2024 Amount | 2023 Amount |
|---|---|---|
| Salaries and Employee Benefits | $8.5 million | $6.9 million |
| Occupancy and Equipment | $1.4 million | $1.3 million |
| Other Expenses | $3.3 million | $3.0 million |
Asset Quality
MetroCity Bankshares maintained a low level of nonperforming loans at 0.46% of total loans as of September 30, 2024. Nonperforming loans were reported at $14.3 million, down from $14.7 million at December 31, 2023.
Shareholder Equity
As of September 30, 2024, total shareholders' equity stood at $407.2 million, compared to $381.5 million at December 31, 2023. The book value per share was $16.07.
How MetroCity Bankshares, Inc. (MCBS) Makes Money
Overview of Revenue Generation
MetroCity Bankshares, Inc. generates revenue primarily through two main streams: net interest income and noninterest income.
Net Interest Income
Net interest income is the difference between the interest earned on loans and the interest paid on deposits. For the nine months ended September 30, 2024, MetroCity reported a net interest income of $88.1 million, up from $75.4 million for the same period in 2023, reflecting a 16.2% increase.
| Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Interest Income | $88.1 million | $75.4 million | +16.2% |
| Average Loans | $3.1 billion | $3.0 billion | +3.3% |
| Loan Yield | 6.41% | 5.93% | +48 bps |
| Average Interest-Bearing Deposits | $2.6 billion | $2.4 billion | +8.3% |
| Cost of Deposits | 3.77% | 3.67% | +10 bps |
Interest Income
For the three months ended September 30, 2024, interest income totaled $53.8 million, an increase of $5.1 million, or 10.5%, compared to $48.7 million for the same period in 2023. The growth was driven by a 45 basis points increase in loan yield and an increase in average loan balances by $86.2 million.
Interest Expense
Interest expense for the three months ended September 30, 2024 was $23.5 million, a decrease of $1.0 million, or 4.1%, from $24.6 million in the same period in 2023. This decline was mainly due to a 44 basis points decrease in deposit costs.
Noninterest Income
Noninterest income for the three months ended September 30, 2024 was $6.6 million, an increase of $4.0 million, or 149.0%, compared to $2.7 million in the same period in 2023. For the nine months ended September 30, 2024, noninterest income was $17.7 million, up from $13.5 million in 2023, reflecting a 31.5% increase.
| Type of Noninterest Income | 2024 (Three Months) | 2023 (Three Months) | Change (%) |
|---|---|---|---|
| Service Charges on Deposit Accounts | $531,000 | $490,000 | +8.4% |
| Other Service Charges, Commissions, and Fees | $1.9 million | $1.5 million | +29.6% |
| Gain on Sale of Residential Mortgage Loans | $526,000 | $0 | 100.0% |
| Mortgage Servicing Income, Net | $422,000 | ($85,000) | 596.5% |
| Gain on Sale of SBA Loans | $1.1 million | $244,000 | 343.9% |
| SBA Servicing Income, Net | $1.2 million | $270,000 | 355.9% |
| Other Income | $907,000 | $260,000 | 248.8% |
Loan Portfolio
As of September 30, 2024, MetroCity's gross loans held for investment totaled $3.1 billion, a decrease of $55.5 million, or 1.8%, from $3.15 billion as of December 31, 2023. The composition of the loan portfolio is primarily residential real estate loans, which accounted for 73.5% of total loans.
| Loan Type | Amount (Sept 30, 2024) | % of Total Loans | Amount (Dec 31, 2023) | % of Total Loans |
|---|---|---|---|---|
| Construction and Development | $16.5 million | 0.5% | $23.3 million | 0.7% |
| Commercial Real Estate | $738.9 million | 23.9% | $711.2 million | 22.6% |
| Commercial and Industrial | $63.6 million | 2.1% | $65.9 million | 2.1% |
| Residential Real Estate | $2.3 billion | 73.5% | $2.4 billion | 74.6% |
| Consumer and Other | $215,000 | —% | $319,000 | —% |
Asset Quality
As of September 30, 2024, MetroCity reported nonperforming loans of $14.3 million, which is 0.46% of total loans. This represents a slight decrease from $14.7 million at December 31, 2023. The allowance for credit losses as a percentage of gross loans was 0.60% as of September 30, 2024.
Conclusion on Financial Performance
MetroCity Bankshares, Inc. continues to show robust growth in both net interest and noninterest income streams, supported by a solid loan portfolio and manageable asset quality metrics.
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Resources:
- MetroCity Bankshares, Inc. (MCBS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MetroCity Bankshares, Inc. (MCBS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MetroCity Bankshares, Inc. (MCBS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.