MetroCity Bankshares (MCBS) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $16.7 million, up 46.1% year-over-year and 19.9% for the nine months to $48.3 million.

• Earnings per share for Q3 2024 were $0.66 basic and $0.65 diluted, compared to $0.45 in Q3 2023.

• Return on average assets for Q3 2024 was 1.86%, and return on average equity was 16.26%.

• Net interest margin for Q3 2024 was 3.58%, up 64 bps year-over-year.

• Total assets reached $3.57 billion at September 30, 2024, up 1.9% from year-end 2023.

Financial highlights

• Net interest income for Q3 2024 was $30.3 million; noninterest income was $6.6 million, up 149% year-over-year.

• Noninterest expense for Q3 2024 was $13.7 million, up 18.4% year-over-year, mainly due to higher salaries and occupancy costs.

• Allowance for credit losses was $18.6 million at September 30, 2024, representing 0.60% of total loans.

• Nonperforming loans were 0.46% of total loans; nonperforming assets were 0.44% of total assets.

• Total deposits were $2.72 billion, with noninterest-bearing deposits at 20.3% of total.

Outlook and guidance

• Management expects continued benefit from interest rate derivatives, estimating a $5.4 million credit to interest expense for the remainder of 2024.

• The company declared a dividend of $0.23 per share for Q4 2024 and authorized a new share repurchase program for up to 925,250 shares.

• Management highlights risks from economic conditions, interest rate changes, real estate market trends, and regulatory developments.