MetroCity Bankshares (MCBS) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $16.9 million, up 29.2% year-over-year and 15.8% sequentially; six-month net income rose 9.5% to $31.6 million.

• Basic and diluted EPS for Q2 2024 were $0.67 and $0.66, respectively; six-month diluted EPS was $1.24.

• Total assets increased to $3.62 billion, up 3.2% since year-end and 4.0% year-over-year.

• Deposits grew to $2.75 billion, up 1.8% year-over-year; uninsured deposits declined to 23.4% of total deposits.

• Capital ratios remain strong, with CET1 at 18.25% and total capital at 19.12% as of June 30, 2024.

Financial highlights

• Net interest income for Q2 2024 was $30.7 million, up $5.7 million year-over-year; net interest margin rose to 3.66%.

• Noninterest income increased 18.5% to $5.6 million for Q2 2024, driven by higher mortgage-related fees and gains.

• Noninterest expense rose 13.7% year-over-year, mainly from higher salaries, benefits, and occupancy costs.

• Provision for credit losses was a net credit of $128,000 for Q2 2024, reflecting strong credit quality.

• Efficiency ratio improved to 35.9% in Q2 2024 from 38.7% a year ago.

Outlook and guidance

• Management expects continued benefit from interest rate derivatives, estimating a $12.9 million credit to interest expense for the remainder of 2024.

• The company declared a $0.20 per share dividend payable August 9, 2024.

• No material changes to risk factors or business strategy were noted for the period.