MetroCity Bankshares Reports Strong Earnings for Q4 2024 and Full Year

MetroCity Bankshares, Inc. (NASDAQ: MCBS) has reported robust earnings for the fourth quarter and full year of 2024, reflecting the company's strategic focus on improving net interest margin and managing expenses. The company's return on average assets (ROA) and return on average equity (ROE) have remained strong, outperforming industry peers.

Fourth Quarter and Full Year Highlights:

* Net income for Q4 2024: $16.2 million, up 2.8% from Q3 2024, and up 43.1% from Q4 2023.
* Net income for the full year 2024: $64.5 million, up 25.0% from 2023.
* Annualized return on average assets (ROA) for Q4 2024: 1.82%, up from 1.29% in Q4 2023.
* Annualized return on average equity (ROE) for Q4 2024: 15.84%, up from 11.71% in Q4 2023.
* Net interest margin for Q4 2024: 3.57%, up from 3.17% in Q4 2023.
* Total assets increased by 2.6% to $3.59 billion from $3.50 billion at December 31, 2023.

Key Drivers and Strategies:

1. Improved Net Interest Margin (NIM): MetroCity Bankshares has consistently improved its NIM, which was 3.57% in Q4 2024, up from 3.17% in Q4 2023. This improvement is due to better management of interest income and expenses, contributing to higher ROE and ROA.
2. Growth in Loans and Investments: The company has increased its loans held for investment and total assets, which can drive higher interest income and contribute to higher ROE and ROA. In Q4 2024, loans held for investment increased by $70.1 million, or 2.3%, compared to the previous quarter.
3. Controlling Noninterest Expenses: MetroCity Bankshares has maintained a relatively low efficiency ratio, which was 40.5% in Q4 2024. This indicates that the company is effectively managing its noninterest expenses, contributing to higher ROE and ROA.
4. Managing Credit Quality: MetroCity Bankshares has maintained a stable allowance for credit losses as a percentage of total loans, which helps to control provision for credit losses and maintain higher ROE and ROA.

By focusing on these strategies, MetroCity Bankshares has been able to maintain higher ROE and ROA compared to its industry peers. The company's strong earnings growth trajectory, combined with its ability to manage interest income and expenses effectively, positions it well for future success.