MetroCity Bankshares, Inc. is a bank holding company with its headquarters in Doraville, Georgia. The corporation recently went public and this has caused the company to receive a great deal of attention from potential investors and those who have already purchased shares. For those of you who are looking for an investment for portfolio diversification, this is an entity that is currently on the radar of other investors, and here are 20 things that you probably didn’t know about MetroCity Bankshares.
MetroCity Bankshares offers a variety of commercial and consumer financial services a well as banking services. The range of banking services includes checking and savings accounts, certificates of deposit, and business and personal loans. Other services such as money transfers and more can be made by customers.
The financial company operates within the consumer sector to serve the public with individual personal banking services, but they also cater to a few specific industries. Their specialties include Commercial Real Estate, Commercial and Industrial, Construction and Development, Residential Real Estate, Consumer and other segments.
3. Consumer loans are secured
Investors may have questions about the processes undertaken by MetroCity Bankshares and how secure their loan activities are because this has an impact upon the risk in lending to the company, therefore its profitability. The company ensures that consumer loans are secured by personal assets, reducing the lending risk to the bank. for commercial and industrial loans, most often, loans are secured by the assets of the businesses approved, decreasing the risk to the bank and its stakeholders.
4. The company is still new
MetroCity Bankshares has only been in operation for 13 years. When compared to some other financial institutions, it’s still relatively new, but it’s shown evidence of being solid. The company was founded in 2006. Although based in Doraville, Georgia, the bank offers services in both the East and South regions of the United States.
The purpose of MetroCity Bankshares filing for an initial public offering is to raise $40 million. This provides investors with the opportunity to make an investment in the company and become shareholders.
We learned that MetroCity Bankshares, Inc. has plans to focus upon a unique approach to serving businesses and individuals with financial solutions. The bank has a goal of tailoring the loan products that they offer to better meet the needs of businesses through their loan products. The primary types of loans provided at this time include residential mortgage loans for consumers and SBA, or Small Business Administration loans for businesses. Customized loan products could potentially make MetroCityBankshares more attractive to businesses, and this would be good news for investors.
7. Metro City focuses on diversity
One of the goals of this company is to serve a diverse population. The bank has established 19 branch locations offering a full range of services. These are set in multi-ethnic communities in Georgia, Texas, Virginia, New Jersey, and New York. The bank is primarily focusing on Asian-American communities with their services.
8. MCBS has plans for expansion
The firm began opening new branches in 2015 with a total of 19 open so far. Since that time 11 new branches have opened in the past four years with a total of 19 currently. the firm has plans for organic growth with continued expansion geographically into culturally diverse areas while pursuing new gateway markets. The mention of strategic acquisitions was made as a possibility, but there are not any immediate plans for making acquisitions or opening new branches. The pursuit of these options will occur at a later time.
MCBS’ most recent reports show that the total assets of the firm are valued at $1.52 billion. In the breakdown, there are $1.25 billion total loans, $1.30 billion in deposits and shareholders equity of $184.23 million. In 2018, the firm made $1 million in residential mortgage loans, which is nearly double the amount made in 2017.
10. MetroCity is turning a profit
MCBS experienced a profit on the sale of loans. In 2017, the amount was $913,000. Within one year, this amount grew to $10.3 million. This shows that MetroBank has made an increase of more than $9.4 million for the year with a 9.7% increase.
11. MCBS has a low default rate
One of the ways to examine how well a bank is doing is to look at the rate of default, and its credit quality. Granted, one must consider the market conditions as well as employment rates in the area served, the economy, and so forth, but MCBS has maintained a credit quality rating that is “exceptional.” The firm has only had to deal with a total of five foreclosures for residential mortgage loans out of a total of 7,520 of these loans which were originated by the firm between 2015 and the middle part of 2019. MCBS was also careful to add that not a single transaction resulted in a loss for the bank. This is encouraging news for potential investors.
12. Financial performance for MCBS is promising
The recent financial results issued in a report shows a promising picture for the firm. MCBS has variable cash flow from operations with a substantial yet decreasing net interest margin, and a growing net interest income, although it’s deceleration.In short, there are four key factors that point to the stability and forward progress of the firm.
MetroCity Bankshares Inc. officially went public on September 25, 2019. At the launch of the first day, MetroCity offered one million common shares along with other shareholders selling with an additional offering of 939,000 shares. Underwriters were given an option for 290,850 of the shares for purchase. The price at the IPO ranged between $14.50 and $16.50 per share.MetroCityBankshares Inc is listed on the Nasdaq Global Select Market under teh symbol MCBS. The book-running managers for the IPO were Keefe, Bruyette & Woods, and Raymond James & Associates, Inc.Hovde Group, LLC was the co-manager for the offering as a proposal.
In reviewing the current leadership of MetroCity Bankshares Inc., it’s reassuring for investors to know that the leadership of the firm. From the Chief Operating Officer to the board of directors, there are decades of experience behind the team and their records are worthy of review by potential investors in the bank.
Paek founded the bank in 2006. He also serves as the CEO and as the Chairman of the board of directors. In addition, he holds the position of Executive Chairman of the firm. Mr. Paek previously served as the president of an SBA service provider called the Government Loan Service Corporation. His previous employer was a specialist firm in the origination and servicing of Small Business Administration loans for banks. Mr. Paek was with the company from 1991 until he assisted in dissolving the firm in 2006. At this time, he turned his full attention to the success of Metro City Bank.
16. Paek founded other companies
Mr. Paek owned his own CPA firm Nack Y. Paik PC, serving Asian immigrant communities. He also founded the Summit Bank Corporation in 1987, serving as its founding director. He was also the Chairman of the Board for the firm and served in this capacity from 1992 through 1994, as well as serving as Chairman of the Audit Committee. His experience and expertise extend to the Insurance industry also. Pake worked for the Continental Insurance Companies serving the southers part of the United States between 1974 up until 1980. He was the internal audit director for the firm.
17. Paek has an international education
Mr. Paek attended college in his native country. He started out with his undergraduate studies at the Seoul National University where he earned his bachelor of science degree from its College of Commerce. He continued forward in the pursuit of higher education attending the Northern Illinois University. He earned his master’s degree in business administration from the institution. The education that he received in Seoul and in Illinois gave him a solid foundation for moving forward in the business world. He possesses a solid knowledge of the markets from the years that he’s served in various leadership positions in the banking and insurance industries, as well as his valuable insight for strategic planning and business management.
Each member of the board brings years of professional experience in finance, business, and accounting, which offers investors greater confidence in the abilities of the leadership. Sam Sang-Koo Shim is a board member since the bank was established in 2006. Mr. Shim brings over 30 years of professional experience as a certified public accountant, a certified government finance manager, and a certified valuation analyst. He is the owner of SKS Consulting Inc, and as president of the CPA firm. He also has his master’s degree in business administration as well as an MS in business. Board member Young Park has been with teh bank since 2006. He is the president and owner of Kani House Restaurants of Atlanta, Georgia. He also served as owner and President of Fortune International Jewelry from 1986 to 2013. Feiying Lu is an internal controller with Imaex Trading company. She earned a bachelor’s degree in electronic engineering from Shanghai University of Science and Technology. Frank S. Rhee is also a board member since 2006 who owns an online marketing and web design company he founded in 2013. He has extensive experience as a financial manager as well as Assistant Controller for Manufacturer’s Hanover Bank in New York from the 1990s and experience as a junior auditor for Ernst & Young.
Each member of the leadership and management team brings years of professional experience to their post at the firm. Ajit A. Patel serves as the chairman of the Compensation Committee as well as on the board since it opened in 2006. He owns two hotels in Pensacola, Florida, which he also operates and manages. He has also served as a financial consultant for the Ayco Company in the 1990s. Patel received his education at the City University in London, England, graduating in Economics and Accountancy with honors. He also holds a master’s degree in taxation which he earned at Georgia State University.
What really makes MetroCity Bankshares stand out among the crowd of banking firms are two factors. The first is that each member of the leadership, governance and management structure come with solid educational degrees and years of professional experience in the finance and business management sectors. Some specialize in economics and accounting, and all of them have owned, or still own at least one or more of their own businesses. Each has a proven track record of success in business. The second thing is that the leaders all have ties to Asia culturally and ethnically. The bank is geared towards serving Asian communities fin the United States, particularly with SBA loans to help new business owners get a good start in their careers. This is good for the entire country as it helps to bolster the economy. MetroCity Bankshares is a solid firm that represents a good risk for anyone who is considering adding a financial firm in the banking industry to their current investment portfolios. While any investment in stock is a risk, it appears that this bank is going to be around for a while. They’re off to a good start and there is every indication for consistent and well-planned growth in the near future. It’s likely that this would make a good long-term investment prospect.