MetroCity Bankshares, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>MetroCity Bankshares, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and position as of December 31, 2023.</b>

AI Summary

MetroCity Bankshares, Inc. (MCBS) filed a Annual Report (10-K) with the SEC on March 11, 2024. MetroCity Bankshares, Inc. filed its 2023 Form 10-K on March 11, 2024. The filing covers the fiscal year ending December 31, 2023. The company is classified under SIC code 6022 for State Commercial Banks. MetroCity Bankshares, Inc. is incorporated in Georgia (GA). The filing includes data related to common stock, retained earnings, and accumulated other comprehensive income for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking MetroCity Bankshares, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of MetroCity Bankshares' financial health and operational activities for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's asset base, liabilities, equity, and profitability trends over the past year.

Risk Assessment

Risk Level: low — MetroCity Bankshares, Inc. shows low risk based on this filing. The filing is a standard 10-K for a commercial bank, indicating routine disclosure rather than immediate significant events.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand MetroCity Bankshares' performance and strategic positioning.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-03-11 — Filing Date (Date the 10-K was filed)
• 0001747068-24-000010 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• MetroCity Bankshares, Inc. (company) — Filer name
• GA (location) — State of incorporation and business address
• 6022 (industry_code) — Standard Industrial Classification for State Commercial Banks

FAQ

Industry Context

MetroCity Bankshares, Inc. operates within the commercial banking sector, a highly regulated industry focused on deposit-taking, lending, and other financial services.

Regulatory Implications

Commercial banks are subject to extensive regulation by federal and state authorities to ensure financial stability and protect consumers.

What Investors Should Do

1. Analyze the balance sheet and income statement for trends in loans, deposits, and net interest income.
2. Examine disclosures related to capital adequacy and regulatory compliance.
3. Review any stated risk factors concerning interest rate sensitivity, credit risk, or economic conditions.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-11: Filing Date — Date MetroCity Bankshares, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share MCBS Nasdaq Global Select
• $17.89 — million based upon the closing price of $17.89 as reported on Nasdaq on June 30, 2023.
• $3.50 b — cember 31, 2023, we had total assets of $3.50 billion, total loans held for investment
• $3.14 b — ion, total loans held for investment of $3.14 billion, total deposits of $2.73 billion
• $2.73 billion — ent of $3.14 billion, total deposits of $2.73 billion and total shareholders' equity of $381.
• $381.5 million — llion and total shareholders' equity of $381.5 million. We are a full-service commercial bank
• $23.3 m — construction and development loans was $23.3 million, or 0.7%, of our total loan portf
• $47.8 m — tfolio held for investment, compared to $47.8 million, or 1.6%, of our total loan portf
• $14.3 m — mber 7 Table of Contents 31, 2023, $14.3 million, or 61.7%, of construction and de
• $3.5 m — dings and commercial rental properties; $3.5 million, or 15.0%, were for the construct
• $1.9 m — physician's offices and nursing homes; $1.9 million, or 8.2%, were for the constructi
• $1.7 m — for the construction of liquor stores; $1.7 million, or 7.2%, were for the constructi
• $548,000 — equately secured. We had approximately $548,000 of construction and development loans o
• $711.2 m — e. Commercial real estate loans made up $711.2 million, or 22.6%, of our total loan port
• $657.2 m — tment at December 31, 2023, compared to $657.2 million, or 21.4%, of our total loan port

Filing Documents

• mcbs-20231231x10k.htm (10-K) — 5735KB
• mcbs-20231231xex4d1.htm (EX-4.1) — 23KB
• mcbs-20231231xex21d1.htm (EX-21.1) — 6KB
• mcbs-20231231xex23d1.htm (EX-23.1) — 2KB
• mcbs-20231231xex31d1.htm (EX-31.1) — 10KB
• mcbs-20231231xex31d2.htm (EX-31.2) — 10KB
• mcbs-20231231xex32d1.htm (EX-32.1) — 6KB
• mcbs-20231231xex32d2.htm (EX-32.2) — 6KB
• mcbs-20231231xex97.htm (EX-97) — 59KB
• mcbs-20231231x10k006.jpg (GRAPHIC) — 32KB
• 0001747068-24-000010.txt (&nbsp;) — 23337KB
• mcbs-20231231.xsd (EX-101.SCH) — 93KB
• mcbs-20231231_cal.xml (EX-101.CAL) — 118KB
• mcbs-20231231_def.xml (EX-101.DEF) — 391KB
• mcbs-20231231_lab.xml (EX-101.LAB) — 842KB
• mcbs-20231231_pre.xml (EX-101.PRE) — 681KB
• mcbs-20231231x10k_htm.xml (XML) — 6026KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 24 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 39 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 40 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 40 Item 6. [Reserved] 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 65 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 68 Item 9. Changes in Disagreements With Accountants on Accounting and Financial Disclosure 114 Item 9A.

Controls and Procedures

Controls and Procedures 114 Item 9B. Other Information 115 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevents Inspections 115 PART III Item 10. Directors, Executive Officers, and Corporate Governance 115 Item 11.

Executive Compensation

Executive Compensation 115 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 115 Item 13. Certain Relationships and Related Transactions, and Director Independence 115 Item 14. Principal Accounting Fees and Services 116 PART IV Item 15. Exhibits, Financial Statement Schedules 116 Item 16. Form 10-K Summary 117

SIGNATURES

SIGNATURES 118 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "strive," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors discussed elsewhere in this annual report and the following: g eneral economic and business conditions in our local markets, including con

Business

Item 1. Business Our Company We are MetroCity Bankshares, Inc. (the "Company"), a bank holding company incorporated in 2014 and headquartered in the Atlanta metropolitan area. We operate through our wholly-owned banking subsidiary, Metro City Bank, a Georgia state-chartered commercial bank that was founded in 2006 (the "Bank"). We currently operate 20 full-service branch locations in multi-ethnic communities in Alabama, Florida, Georgia, New York, New Jersey, Texas and Virginia. As of December 31, 2023, we had total assets of $3.50 billion, total loans held for investment of $3.14 billion, total deposits of $2.73 billion and total shareholders' equity of $381.5 million. We are a full-service commercial bank focused on delivering personalized service in an efficient and reliable manner to the small- to medium-sized businesses and individuals in our markets, predominantly Asian-American communities in growing metropolitan markets in the Eastern U.S. and Texas. We offer a suite of loan and deposit products tailored to meet the needs of the businesses and individuals already established in our communities, as well as first generation immigrants 6 Table of Contents who desire to establish and grow their own businesses, purchase a home, or educate their children in the United States. Through our diverse and experienced management team and talented employees, we are able to speak the language of our customers and provide them with services and products in a culturally competent manner. We have successfully grown our franchise since our founding primarily through de novo branch openings in vibrant, diverse markets where we feel our banking products and services will be well-received. We have a proven track record of opening these new branches in a disciplined, cost efficient manner, without compromising the quality of our customer service or our profitability. Our consistent expansion efforts have given us the know-how and expertise to lower the cost of opening and

View Full Filing

View this 10-K filing on SEC EDGAR