ATLANTA, Oct. 22, 2021 /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 2021, compared to $14.4 million, or $0.56 per diluted share, for the second quarter of 2021, and $9.4 million, or $0.36 per diluted share, for the third quarter of 2020. For the nine months ended September 30, 2021, the Company reported net income of $44.3 million, or $1.71 per diluted share, compared to $26.9 million, or $1.05 per diluted share, for the same period in 2020.

Third Quarter 2021 Highlights:

Annualized return on average assets was 2.61%, compared to 2.53% for the second quarter of 2021 and 2.20% for the third quarter of 2020.
Annualized return on average equity was 25.23%, compared to 22.51% for the second quarter of 2021 and 16.22% for the third quarter of 2020.
Efficiency ratio of 34.8%, compared to 36.2% for the second quarter of 2021 and 42.5% for the third quarter of 2020.
Total assets increased by $232.4 million, or 9.2%, to $2.75 billion from the previous quarter.
Total loans increased by $269.9 million, or 12.9%, to $2.36 billion from the previous quarter.
Total deposits increased by $137.0 million, or 6.9%, to $2.11 billion from the previous quarter.
Net interest margin was 4.57%, compared to 4.60% for the second quarter of 2021 and 3.97% for the third quarter of 2020.

Results of Operations

Net Income

Net income was $16.9 million for the third quarter of 2021, an increase of $2.5 million, or 17.3%, from $14.4 million for the second quarter of 2021. This increase was due to an increase in net interest income of $3.4 million and an increase in noninterest income of $938,000, offset by an increase in provision for loan losses of $374,000, an increase in noninterest expense of $1.0 million and an increase in provision for income taxes of $421,000. Net income increased $7.5 million, or 79.9%, in the third quarter of 2021 compared to net income of $9.4 million for the third quarter of 2020. This increase was due to an increase in net interest income of $12.2 million and an increase in noninterest income of $1.6 million, offset by an increase in provision for loan losses of $1.1 million, an increase in noninterest expense of $3.0 million and an increase in provision for income taxes of $2.2 million.

Net Interest Income and Net Interest Margin

Interest income totaled $29.3 million for the third quarter of 2021, an increase of $3.4 million, or 13.3%, from the previous quarter, primarily due to a $261.7 million increase in average loan balances. We also recognized Paycheck Protection Program ("PPP") loan fee income of $1.9 million during the third quarter of 2021 compared to $1.7 million recognized during the second quarter of 2021. As compared to the third quarter of 2020, interest income for the third quarter of 2021 increased by $11.2 million, or 61.7%, primarily due to an increase in average loan balances of $833.5 million.

Interest expense totaled $1.1 million for the third quarter of 2021, a slight increase of $72,000, or 6.8%, from the previous quarter, primarily due to a $92.0 million increase in average deposits as deposit costs remained relatively flat. As compared to the third quarter of 2020, interest expense for the third quarter of 2021 decreased by $1.1 million, or 48.2%, primarily due to a 66 basis points decrease in deposit costs coupled with a $40.6 million decrease in higher cost average time deposits.

The net interest margin for the third quarter of 2021 was 4.57% compared to 4.60% for the previous quarter, a decrease of three basis points. The cost of average interest-bearing liabilities for the third quarter of 2021 decreased by 3 basis points to 0.28% compared with the previous quarter, while the yield on average interest-earning assets for the third quarter of 2021 decreased by 4 basis points to 4.75% from 4.79% for the previous quarter. Average earning assets increased by $280.5 million from the previous quarter, primarily due to an increase in average loans of $261.7 million and an $18.7 million increase in average interest-earning cash accounts. Average interest-bearing liabilities increased by $238.3 million from the previous quarter as average interest-bearing deposits increased by $92.0 million and average borrowings increased by $146.3 million. The inclusion of PPP loan average balances, interest and fees had a 23 basis point impact on the yield on average loans and a 22 basis points impact on the net interest margin for the third quarter of 2021.

As compared to the same period in 2020, the net interest margin for the third quarter of 2021 increased by 60 basis points to 4.57% from 3.97%, primarily due to a 63 basis point decrease in the cost of average interest-bearing liabilities of $1.62 billion and an increase of 24 basis points in the yield on average interest-earning assets of $2.45 billion. Average earning assets for the third quarter of 2021 increased by $848.1 million from the third quarter of 2020, primarily due to a $833.5 million increase in average loans and a $55.5 million increase in average interest-earning cash accounts, offset by a $40.0 million decrease in average securities purchased under agreements to resell. Average interest-bearing liabilities for the third quarter of 2021 increased by $665.4 million from the third quarter of 2020, driven by an increase in average interest-bearing deposits of $509.3 million and an increase in average borrowings of $156.1 million.

Noninterest Income

Noninterest income for the third quarter of 2021 was $9.5 million, an increase of $938,000, or 10.9%, from the second quarter of 2021, primarily due to higher mortgage loan fees, mortgage servicing income and gains on sale of SBA loans, partially offset by a decrease in SBA servicing income. During the third quarter of 2021, we recorded a $225,000 fair value adjustment charge on our SBA servicing asset and a $420,000 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 2020, noninterest income for the third quarter of 2021 increased by $1.6 million, or 19.7%, primarily due to the increase in mortgage loan fees and gains on sale of SBA loans, partially offset by a decrease in mortgage and SBA servicing income. Mortgage loan originations totaled $368.8 million during the third quarter of 2021 compared to $120.3 million during the third quarter of 2020. There were no mortgage loan sales during the third quarter of 2021 or 2020.

Noninterest Expense

Noninterest expense for the third quarter of 2021 totaled $13.1 million, an increase of $1.0 million, or 8.4%, from $12.1 million for the second quarter of 2021. This increase was primarily attributable to higher salaries and employee benefits. Compared to the third quarter of 2020, noninterest expense during the third quarter of 2021 increased by $3.0 million, or 29.2%, primarily due to higher salaries and employee benefits and loan related expenses.

The Company's efficiency ratio was 34.8% for the third quarter of 2021 compared to 36.2% and 42.5% for the second quarter of 2021 and third quarter of 2020, respectively. For the nine months ended September 30, 2021, the efficiency ratio was 35.6% compared with 43.7% for the same period in 2020.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2021 was 23.4%, compared to 24.7% for the second quarter of 2021 and 23.7% for the third quarter of 2020.

Balance Sheet

Total Assets

Total assets were $2.75 billion at September 30, 2021, an increase of $232.4 million, or 9.2%, from $2.52 billion at June 30, 2021, and an increase of $1.01 billion, or 58.1%, from $1.74 billion at September 30, 2020. The $232.4 million increase in total assets at September 30, 2021 compared to June 30, 2021 was primarily due to increases in loans of $269.9 million and bank owned life insurance of $22.8 million, partially offset by a decrease in cash and due from banks of $58.3 million and a $2.6 million increase in the allowance for loan losses. The $1.01 billion increase in total assets at September 30, 2021 compared to September 30, 2020 was primarily due to increases in loans of $901.8 million, cash and due from banks of $141.7 million and bank owned life insurance of $23.5 million, partially offset by a $40.0 million decrease in securities purchased under agreements to resell, a $6.0 million decrease in the mortgage servicing asset and an increase in the allowance for loan losses of $7.1 million.

Loans

Loans held for investment were $2.36 billion at September 30, 2021, an increase of $269.9 million, or 12.9%, compared to $2.09 billion at June 30, 2021, and an increase of $901.8 million, or 61.8%, compared to $1.46 billion at September 30, 2020. The increase in loans held for investment at September 30, 2021 compared to June 30, 2021 was primarily due to a $287.8 million increase in residential mortgages, a $27.8 million increase in commercial real estate loans and a $5.5 million increase in construction and development loans, offset by a $52.0 million decrease in commercial and industrial loans primarily due to PPP loan forgiveness. Included in commercial and industrial loans are PPP loans totaling $42.0 million as of September 30, 2021. There were no loans classified as held for sale at September 30, 2021, June 30, 2021 or September 30, 2020.

Deposits

Total deposits were $2.11 billion at September 30, 2021, an increase of $137.0 million, or 6.9%, compared to total deposits of $1.97 billion at June 30, 2021, and an increase of $774.0 million, or 57.9%, compared to total deposits of $1.34 billion at September 30, 2020. The increase in total deposits at September 30, 2021 compared to June 30, 2021 was primarily due to the $22.3 million increase in noninterest-bearing demand deposits, $126.6 million increase in money market accounts and a $12.3 million increase in interest-bearing demand deposits, offset by a $24.6 million increase in time deposits.

Noninterest-bearing deposits were $640.3 million at September 30, 2021, compared to $618.1 million at June 30, 2021 and $460.7 million at September 30, 2020. Noninterest-bearing deposits constituted 30.3% of total deposits at September 30, 2021, compared to 31.3% at June 30, 2021 and 34.4% at September 30, 2020. Interest-bearing deposits were $1.47 billion at September 30, 2021, compared to $1.36 billion at June 30, 2021 and $877.1 million at September 30, 2020. Interest-bearing deposits constituted 69.7% of total deposits at September 30, 2021, compared to 68.7% at June 30, 2021 and 65.6% at September 30, 2020.

Asset Quality

The Company recorded a provision for loan losses of $2.6 million during the third quarter of 2021. Annualized net charge-offs to average loans for the third quarter of 2021 was 0.00%, compared to 0.02% for the second quarter of 2021 and 0.00% for the third quarter of 2020. We continue to include qualitative factors in our allowance for loan losses calculation in light of the continued economic uncertainties caused by the ongoing COVID-19 pandemic and related variants, partially resulting in the increased provision expense recorded during the third quarter of 2021 along with the growth in our loan portfolio. 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 $13.1 million, or 0.47% of total assets, at September 30, 2021, a decrease of $1.1 million from $14.0 million, or 0.56% of total assets, at June 30, 2021, and a decrease of $4.4 million from $17.5 million, or 1.01% of total assets, at September 30, 2020. The decrease in nonperforming assets at September 30, 2021 compared to June 30, 2021 was primarily due to a $668,000 decrease in nonaccrual loans and a $282,000 decrease in other real estate owned.

Allowance for loan losses as a percentage of total loans was 0.69% at September 30, 2021, compared to 0.66% at June 30, 2021 and 0.64% at September 30, 2020. Excluding outstanding PPP loans of $42.0 million as of September 30, 2021, $93.1 million as of June 30, 2021 and $96.9 million as of September 30, 2020, the allowance for loan losses as a percentage of total loans was 0.71% at September 30, 2021, 0.69% at June 30, 2021 and 0.68% at September 30, 2020. Allowance for loan losses as a percentage of nonperforming loans was 189.44% at September 30, 2021, compared to 147.82% and 54.24% at June 30, 2021 and September 30, 2020, respectively.

COVID-19

As of September 30, 2021, we had two non-SBA commercial customers with outstanding loan balances totaling $8.1 million that were under approved payment deferrals. This is a decline from the active payment deferrals as of June 30, 2021 that were granted to six non-SBA commercial customers with outstanding balances totaling $15.3 million. As of September 30, 2021, we had six SBA loans with outstanding gross loan balances totaling $11.7 million ($2.9 million unguaranteed book balance) that were under approved payment deferrals. As of October 20, 2021, the SBA had granted forgiveness on (1) PPP loans totaling $93.5 million, or 96.4% of PPP loans funded from the first round of PPP funding under the Coronavirus Aid, Relief and Economic Security Act, and (2) PPP loans totaling $24.8 million, or 39.9% of PPP loans funded under the Economic Aid Act.

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 of 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; potential increases in the provision for loan losses resulting from the ongoing COVID-19 pandemic and related variants; 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, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to, the ongoing COVID-19 pandemic and related variants; changes in tax laws; 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															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)	2021			2021			2021			2020			2020			2021			2020
Selected income statement data:
Interest income	$	29,324		$	25,888		$	22,672		$	19,839		$	18,131		$	77,884		$	57,770
Interest expense		1,135			1,063			1,138			1,411			2,192			3,336			10,078
Net interest income		28,189			24,825			21,534			18,428			15,939			74,548			47,962
Provision for loan losses		2,579			2,205			1,599			956			1,450			6,383			2,511
Noninterest income		9,532			8,594			8,186			6,138			7,964			26,312			21,073
Noninterest expense		13,111			12,093			10,708			11,077			10,150			35,912			30,023
Income tax expense		5,149			4,728			4,432			3,079			2,918			14,309			9,291
Net income		16,882			14,393			12,981			9,454			9,385			44,256			26,940
Per share data:
Basic income per share	$	0.66		$	0.56		$	0.51		$	0.37		$	0.37		$	1.73		$	1.05
Diluted income per share	$	0.66		$	0.56		$	0.50		$	0.37		$	0.36		$	1.71		$	1.05
Dividends per share	$	0.12		$	0.10		$	0.10		$	0.09		$	0.09		$	0.32		$	0.31
Book value per share (at period end)	$	10.84		$	10.33		$	9.95		$	9.54		$	9.23		$	10.84		$	9.23
Shares of common stock outstanding		25,465,236			25,578,668			25,674,573			25,674,573			25,674,067			25,465,236			25,674,067
Weighted average diluted shares		25,729,043			25,833,328			25,881,827			25,870,885			25,858,741			25,805,480			25,774,500
Performance ratios:
Return on average assets		2.61	%		2.53	%		2.62	%		2.14	%		2.20	%		2.59	%		2.17	%
Return on average equity		25.23			22.51			21.35			15.78			16.22			23.09			16.10
Dividend payout ratio		18.24			17.95			19.91			24.60			24.78			18.64			29.62
Yield on total loans		5.16			5.21			5.20			5.14			5.05			5.19			5.60
Yield on average earning assets		4.75			4.79			4.85			4.80			4.51			4.79			4.95
Cost of average interest bearing liabilities		0.28			0.31			0.38			0.56			0.91			0.32			1.35
Cost of deposits		0.28			0.29			0.36			0.55			0.94			0.30			1.41
Net interest margin		4.57			4.60			4.60			4.46			3.97			4.59			4.08
Efficiency ratio⁽¹⁾		34.76			36.19			36.03			45.09			42.46			35.61			43.66
Asset quality data (at period end):
Net charge-offs/(recoveries) to average loans held for investment		0.00	%		0.02	%		0.00	%		0.04	%		0.00	%		0.00	%		0.00	%
Nonperforming assets to gross loans and OREO		0.55			0.67			0.84			1.03			1.19			0.55			1.19
ALL to nonperforming loans		189.44			147.82			98.33			77.40			54.24			189.44			54.24
ALL to loans held for investment		0.69			0.66			0.63			0.62			0.64			0.69			0.64
Balance sheet and capital ratios:
Gross loans held for investment to deposits		112.15	%		106.31	%		107.33	%		110.48	%		109.50	%		112.15	%		109.50	%
Noninterest bearing deposits to deposits		30.32			31.30			31.28			31.28			34.44			30.32			34.44
Common equity to assets		10.04			10.50			11.85			12.90			13.63			10.04			13.63
Leverage ratio		10.34			11.14			12.23			13.44			13.44			10.34			13.44
Common equity tier 1 ratio		16.64			17.75			18.97			20.00			21.09			16.64			21.09
Tier 1 risk-based capital ratio		16.64			17.75			18.97			20.00			21.09			16.64			21.09
Total risk-based capital ratio		17.67			18.72			19.88			20.86			21.96			17.67			21.96
Mortgage and SBA loan data:
Mortgage loans serviced for others	$	669,358		$	746,660		$	856,432		$	961,670		$	1,063,500		$	669,358		$	1,063,500
Mortgage loan production		368,790			326,507			263,698			194,951			120,337			958,995			289,263
Mortgage loan sales		—			—			—			—			—			—			92,737
SBA loans serviced for others		549,818			549,238			521,182			507,442			500,047			549,818			500,047
SBA loan production		85,265			67,376			80,466			34,631			52,742			233,107			211,088
SBA loan sales		37,984			34,158			22,399			25,505			37,923			94,541			103,128

(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
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands, except per share data)	2021		2021		2021		2020		2020
ASSETS
Cash and due from banks	$	250,995	$	309,289	$	169,775	$	140,744	$	109,263
Federal funds sold		2,294		4,644		4,444		9,944		17,268
Cash and cash equivalents		253,289		313,933		174,219		150,688		126,531
Securities purchased under agreements to resell		—		—		—		—		40,000
Securities available for sale (at fair value)		16,507		16,722		18,739		18,117		18,204
Equity securities		993		—		—		—		—
Loans		2,361,705		2,091,767		1,866,785		1,630,344		1,459,899
Allowance for loan losses		(16,445)		(13,860)		(11,735)		(10,135)		(9,339)
Loans less allowance for loan losses		2,345,260		2,077,907		1,855,050		1,620,209		1,450,560
Loans held for sale		—		—		—		—		—
Accrued interest receivable		10,737		10,668		10,515		10,671		7,999
Federal Home Loan Bank stock		12,201		8,451		3,951		6,147		5,723
Premises and equipment, net		13,302		13,557		13,663		13,854		14,083
Operating lease right-of-use asset		9,672		10,078		10,483		10,348		10,786
Foreclosed real estate, net		4,374		4,656		3,844		3,844		282
SBA servicing asset, net		10,916		11,155		10,535		9,643		10,173
Mortgage servicing asset, net		8,593		9,529		11,722		12,991		14,599
Bank owned life insurance		59,061		36,263		36,033		35,806		35,578
Other assets		5,323		4,921		5,606		5,171		5,355
Total assets	$	2,750,228	$	2,517,840	$	2,154,360	$	1,897,489	$	1,739,873

LIABILITIES
Noninterest-bearing deposits	$	640,312	$	618,054	$	546,164	$	462,909	$	460,679
Interest-bearing deposits		1,471,515		1,356,777		1,199,756		1,016,980		877,112
Total deposits		2,111,827		1,974,831		1,745,920		1,479,889		1,337,791
Federal Home Loan Bank advances		300,000		200,000		80,000		110,000		100,000
Other borrowings		468		474		479		483		491
Operating lease liability		10,241		10,648		11,048		10,910		11,342
Accrued interest payable		208		202		206		222		310
Other liabilities		51,330		67,431		61,332		51,154		52,843
Total liabilities	$	2,474,074	$	2,253,586	$	1,898,985	$	1,652,658	$	1,502,777

SHAREHOLDERS' EQUITY
Preferred stock		—		—		—		—		—
Common stock		255		256		257		257		257
Additional paid-in capital		51,181		52,924		55,977		55,674		55,098
Retained earnings		224,711		210,910		199,102		188,705		181,576
Accumulated other comprehensive income (loss)		7		164		39		195		165
Total shareholders' equity		276,154		264,254		255,375		244,831		237,096
Total liabilities and shareholders' equity	$	2,750,228	$	2,517,840	$	2,154,360	$	1,897,489	$	1,739,873

METROCITY BANKSHARES, 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)	2021		2021		2021		2020		2020		2021		2020
Interest and dividend income:
Loans, including Fees	$	29,127	$	25,728	$	22,500	$	19,658	$	17,880	$	77,355	$	56,214
Other investment income		196		159		170		164		187		525		1,265
Federal funds sold		1		1		2		17		64		4		291
Total interest income		29,324		25,888		22,672		19,839		18,131		77,884		57,770

Interest expense:
Deposits		968		919		992		1,262		2,046		2,879		9,656
FHLB advances and other borrowings		167		144		146		149		146		457		422
Total interest expense		1,135		1,063		1,138		1,411		2,192		3,336		10,078

Net interest income		28,189		24,825		21,534		18,428		15,939		74,548		47,692

Provision for loan losses		2,579		2,205		1,599		956		1,450		6,383		2,511

Net interest income after provision for loan losses		25,610		22,620		19,935		17,472		14,489		68,165		45,181

Noninterest income:
Service charges on deposit accounts		446		411		373		350		309		1,230		962
Other service charges, commissions and fees		4,147		3,877		3,398		3,223		2,076		11,422		5,322
Gain on sale of residential mortgage loans		—		—		—		—		—		—		2,529
Mortgage servicing income, net		132		(957)		166		(82)		235		(659)		1,390
Gain on sale of SBA loans		3,358		2,845		1,854		1,625		2,265		8,057		4,842
SBA servicing income, net		1,212		1,905		2,133		724		2,931		5,250		5,406
Other income		237		513		262		298		148		1,012		622
Total noninterest income		9,532		8,594		8,186		6,138		7,964		26,312		21,073

Noninterest expense:
Salaries and employee benefits		8,679		6,915		6,699		6,822		6,416		22,293		18,678
Occupancy		1,295		1,252		1,275		1,293		1,302		3,822		3,790
Data Processing		257		283		308		313		287		848		765
Advertising		131		117		145		138		127		393		428
Other expenses		2,749		3,526		2,281		2,511		2,018		8,556		6,362
Total noninterest expense		13,111		12,093		10,708		11,077		10,150		35,912		30,023

Income before provision for income taxes		22,031		19,121		17,413		12,533		12,303		58,565		36,231
Provision for income taxes		5,149		4,728		4,432		3,079		2,918		14,309		9,291
Net income available to common shareholders	$	16,882	$	14,393	$	12,981	$	9,454	$	9,385	$	44,256	$	26,940

METROCITY BANKSHARES, INC. AVERAGE BALANCES AND YIELDS/RATES

	Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 2020
	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⁾	$	188,296	$	111	0.23	%	$	169,578	$	76	0.18	%	$	132,781	$	87	0.26	%
Securities purchased under agreements to resell		—		—	—			—		—	—			40,000		61	0.61
Securities available for sale		17,244		86	1.98			17,080		84	1.97			18,161		103	2.26
Total investments		205,540		197	0.38			186,658		160	0.34			190,942		251	0.52
Construction and development		53,871		727	5.35			47,173		615	5.23			33,587		414	4.90
Commercial real estate		507,039		7,648	5.98			510,241		7,344	5.77			476,174		6,547	5.47
Commercial and industrial		102,813		2,576	9.94			146,408		2,558	7.01			139,083		870	2.49
Residential real estate		1,577,276		18,144	4.56			1,275,555		15,180	4.77			757,982		10,002	5.25
Consumer and other		208		32	61.04			179		31	69.46			844		47	22.15
Gross loans⁽²⁾		2,241,207		29,127	5.16			1,979,556		25,728	5.21			1,407,670		17,880	5.05
Total earning assets		2,446,747		29,324	4.75			2,166,214		25,888	4.79			1,598,612		18,131	4.51
Noninterest-earning assets		123,888						112,161						96,234
Total assets		2,570,635						2,278,375						1,694,846
Interest-bearing liabilities:
NOW and savings deposits		115,775		59	0.20			107,072		53	0.20			73,299		42	0.23
Money market deposits		757,654		432	0.23			659,173		373	0.23			250,200		341	0.54
Time deposits		506,049		477	0.37			521,217		493	0.38			546,648		1,663	1.21
Total interest-bearing deposits		1,379,478		968	0.28			1,287,462		919	0.29			870,147		2,046	0.94
Borrowings		240,704		167	0.28			94,435		144	0.61			84,564		146	0.69
Total interest-bearing liabilities		1,620,182		1,135	0.28			1,381,897		1,063	0.31			954,711		2,192	0.91
Noninterest-bearing liabilities:
Noninterest-bearing deposits		600,388						561,170						445,970
Other noninterest-bearing liabilities		84,568						78,822						64,045
Total noninterest-bearing liabilities		684,956						639,992						510,015
Shareholders' equity		265,497						256,486						230,120
Total liabilities and shareholders' equity	$	2,570,635					$	2,278,375					$	1,694,846
Net interest income			$	28,189					$	24,825					$	15,939
Net interest spread					4.47						4.48						3.60
Net interest margin					4.57						4.60						3.97


(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, 2021						September 30, 2020
	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⁾	$	161,420	$	260	0.22	%	$	164,287	$	986	0.80	%
Securities purchased under agreements to resell		—		—	—			37,354		258	0.92
Securities available for sale		17,493		269	2.06			17,747		312	2.35
Total investments		178,913		529	0.40			219,388		1,556	0.95
Construction and development		47,380		1,874	5.29			30,822		1,232	5.34
Commercial real estate		496,957		22,069	5.94			475,036		20,537	5.77
Commercial and industrial		133,703		7,054	7.05			103,680		3,925	5.06
Residential real estate		1,315,043		46,254	4.70			730,283		30,373	5.56
Consumer and other		187		104	74.36			1,233		147	15.93
Gross loans⁽²⁾		1,993,270		77,355	5.19			1,341,054		56,214	5.60
Total earning assets		2,172,183		77,884	4.79			1,560,442		57,770	4.95
Noninterest-earning assets		115,784						94,284
Total assets		2,287,967						1,654,726
Interest-bearing liabilities:
NOW and savings deposits		105,139		158	0.20			65,223		125	0.26
Money market deposits		651,158		1,143	0.23			215,875		1,403	0.87
Time deposits		506,445		1,578	0.42			634,657		8,128	1.71
Total interest-bearing deposits		1,262,742		2,879	0.30			915,755		9,656	1.41
Borrowings		141,435		457	0.43			81,191		422	0.69
Total interest-bearing liabilities		1,404,177		3,336	0.32			996,946		10,078	1.35
Noninterest-bearing liabilities:
Noninterest-bearing deposits		548,844						374,310
Other noninterest-bearing liabilities		78,685						59,954
Total noninterest-bearing liabilities		627,529						434,264
Shareholders' equity		256,261						223,516
Total liabilities and shareholders' equity	$	2,287,967					$	1,654,726
Net interest income			$	74,548					$	47,692
Net interest spread					4.47						3.60
Net interest margin					4.59						4.08


(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, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020
			% of				% of				% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total		Amount		Total		Amount		Total
Construction and Development	$	64,140	2.7	%	$	58,668	2.8	%	$	52,202	2.8	%	$	45,653	2.8	%	$	38,607	2.6	%
Commercial Real Estate		503,417	21.2			475,658	22.7			473,281	25.3			477,419	29.2			447,596	30.6
Commercial and Industrial		82,099	3.5			134,076	6.4			166,915	8.9			137,239	8.4			146,880	10.0
Residential Real Estate		1,718,593	72.6			1,430,843	68.1			1,181,385	63.0			974,445	59.6			831,334	56.7
Consumer and other		238	—			169	—			169	—			183	—			505	0.1
Gross loans	$	2,368,487	100.0	%	$	2,099,414	100.0	%	$	1,873,952	100.0	%	$	1,634,939	100.0	%	$	1,464,922	100.0	%
Unearned income		(6,782)				(7,647)				(7,167)				(4,595)				(5,023)
Allowance for loan losses		(16,445)				(13,860)				(11,735)				(10,135)				(9,339)
Net loans	$	2,345,260			$	2,077,907			$	1,855,050			$	1,620,209			$	1,450,560

METROCITY BANKSHARES, INC. NONPERFORMING ASSETS

	As of the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2021			2021			2021			2020			2020
Nonaccrual loans	$	5,955		$	6,623		$	9,071		$	10,203		$	9,730
Past due loans 90 days or more and still accruing		—			—			—			—			—
Accruing troubled debt restructured loans		2,726			2,753			2,863			2,891			7,487
Total non-performing loans		8,681			9,376			11,934			13,094			17,217
Other real estate owned		4,374			4,656			3,844			3,844			282
Total non-performing assets	$	13,055		$	14,032		$	15,778		$	16,938		$	17,499

Nonperforming loans to gross loans		0.37	%		0.45	%		0.64	%		0.80	%		1.18	%
Nonperforming assets to total assets		0.47			0.56			0.73			0.89			1.01
Allowance for loan losses to non-performing loans		189.44			147.82			98.33			77.40			54.24

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)	2021			2021			2021			2020			2020			2021			2020
Balance, beginning of period	$	13,860		$	11,735		$	10,135		$	9,339		$	7,894		$	10,135		$	6,839
Net charge-offs/(recoveries):
Construction and development		—			—			—			—			—			—			—
Commercial real estate		(4)			23			(3)			107			(3)			16			(8)
Commercial and industrial		—			60			4			51			—			64			(25)
Residential real estate		—			—			—			—			—			—			—
Consumer and other		(2)			(3)			(2)			2			8			(7)			44
Total net charge-offs/(recoveries)		(6)			80			(1)			160			5			73			11
Provision for loan losses		2,579			2,205			1,599			956			1,450			6,383			2,511
Balance, end of period	$	16,445		$	13,860		$	11,735		$	10,135		$	9,339		$	16,445		$	9,339
Total loans at end of period	$	2,368,487		$	2,099,414		$	1,873,952		$	1,634,939		$	1,464,922		$	2,368,487		$	1,464,922
Average loans⁽¹⁾	$	2,241,207		$	1,979,556		$	1,753,691		$	1,522,150		$	1,407,670		$	1,993,270		$	1,319,606
Net charge-offs to average loans		0.00	%		0.02	%		0.00	%		0.04	%		0.00	%		0.00	%		0.00	%
Allowance for loan losses to total loans		0.69			0.66			0.63			0.62			0.64			0.69			0.64

(1) Excludes loans held for sale

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SOURCE MetroCity Bankshares, Inc.

MetroCity Bankshares, Inc. Reports Earnings For Third Quarter 2021