NASDAQ$MCBS

Metrocity Bankshares Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Metrocity's net income decreased slightly, but increased significantly year-over-year, driven by growth in net interest income and noninterest income.

MetroCity Bankshares, Inc. reported a net income of $16.7 million for Q3 2024, a slight decrease from the previous quarter but a significant increase compared to Q3 2023. The increase was driven by growth in net interest income and noninterest income. The company's annualized return on average assets was 1.86%, and the annualized return on average equity was 16.26%.

  • Net income was $16.7 million, or $0.65 per diluted share.
  • Annualized return on average assets was 1.86%.
  • Annualized return on average equity was 16.26%.
  • Efficiency ratio was 37.0%.

Headline financials

Total Revenue

$36.9M

Previous: $27.1M+36.4%
EPS

$0.65

Previous: $0.45+44.4%
Efficiency Ratio

37.0%

Previous: 43.6%-15.1%
Nonperforming Assets to Total Assets

0.4%

No prior period
Return on Average Assets

1.9%

Previous: 1.3%+43.1%
Return on Average Equity

16.3%

Previous: 12.1%+33.9%
Net Interest Margin

3.6%

No prior period
Capital Expenditures

-$877K

Previous: -$3.99M+78.0%
Free Cash Flow

$15.8M

Previous: $7.44M+112.7%
Net Income

$16.7M

Previous: $11.4M+46.1%
Operating Income

$7.2M

Previous: $18.6M-61.2%
Gross Profit

$36.3M

Previous: $26.6M+36.2%

Revenue & EPS history

Metrocity · Revenue · Quarterly

$36.9M

Q3 2024+36.4%vs Q3 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Metrocity · $20.6M total across 3 segments · Q4 2019

  • Loans including fees
    $19.5M
  • Other investment income
    $1.02M
  • Federal funds sold
    $119K

Forward guidance

This press release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. Factors that could cause such differences include economic conditions, changes in interest rates, real estate market conditions, and regulatory changes. The company can give no assurance that the results contemplated in the forward-looking statements will be realized.

Tailwinds

  • 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, constitute “forward-looking statements
  • 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.”
  • Metro City Bank currently operates 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia.
  • As of September 30, 2024, we had $1.28 billion of available borrowing capacity at the Federal Home Loan Bank ($701.6 million), Federal Reserve Discount Window ($532.2 million) and various other financial institutions (fed fund lines totaling $47.5 million).
  • The weighted average pay rate for these interest rate derivatives is 2.29%

Headwinds

  • the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing
  • potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto
  • risks arising from media coverage of the banking industry
  • risks arising from perceived instability in the banking sector
  • changes in the interest rate environment, including changes to the federal funds rate

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+2.8%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

52%

17 / 33 earnings

Positive

+18.3%

Q1 2019

Best reaction

-7.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+1.2%+3.3%
Q4 2025+2.8%+8.8%+2.5%
Q3 2025-2.7%-2.1%+1.9%
Q2 2025-1.9%-0.9%+0.8%
Q1 2025+2.1%+1.3%+0.4%
Q4 2024-0.7%-1.5%-3.6%
Q3 2024-7.0%-5.8%+4.6%
Q2 2024+8.0%+6.2%-2.9%
Q1 2024+7.2%+7.4%+14.1%
Q4 2023-1.6%-0.7%-4.1%
Q3 2023-1.7%-0.6%+9.5%
Q2 2023+0.1%+6.2%-4.0%
Q1 2023-0.7%-2.0%-1.2%
Q4 2022-2.6%-5.1%-1.9%
Q3 2022-0.6%+0.9%+3.5%
Q2 2022-2.4%-0.8%+4.4%
Q1 2022-2.5%-6.6%-10.9%
Q4 2021+4.6%+0.2%-4.3%
Q3 2021+3.3%+4.5%+24.5%
Q2 2021+3.7%+7.9%+15.8%
Q1 2021+5.9%+5.5%+14.5%
Q4 2020+1.7%-2.3%+0.3%
Q3 2020-2.5%-4.2%-0.8%
Q2 2020-0.1%+2.4%+6.2%
Q1 2019+18.3%+15.1%+55.5%
Q1 2020+12.9%+20.8%+5.2%
Q4 2017+15.5%+10.9%-1.2%
Q2 2019+15.5%+10.9%-1.2%
Q4 2018+15.5%+10.9%-1.2%
Q4 2019-2.6%-6.5%-20.4%
Q3 2018+0.0%-0.4%+15.1%
Q3 2019+3.9%+4.3%+1.4%
Q2 2018-0.4%
Q1 2018
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015

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