Metropolitan Bank Holding Corp. Reports Second Quarter 2024 Results

Strong Earnings, Liquidity, Capital and Asset Quality While Executing Strategic Initiatives 

Financial Highlights

  • Loans at June 30, 2024 were $5.8 billion, an increase of $119.7 million from March 31, 2024 and $689.3 million from June 30, 2023.
  • Total deposits at June 30, 2024 were $6.2 billion, a decrease of $67.9 million from March 31, 2024 and an increase of $881.1 million from June 30, 2023.
  • Net interest margin for the second quarter of 2024 expanded 4 basis points to 3.44% from 3.40% for the first quarter of 2024.
  • Diluted earnings per share of $1.50 for the second quarter of 2024, an increase of 2.7% compared to the first quarter of 2024, inclusive of $5.5 million of expenses related to the Global Payments Group (“GPG”) wind down, regulatory remediation, and the core banking digital transformation.
  • Return on average equity of 9.9% and return on average tangible common equity1 of 10.1% for the second quarter of 2024.
  • Asset quality continues to be stable. Non-performing loans declined to 0.53% at June 30, 2024 compared to 0.91% at March 31, 2024.
  • Liquidity remains strong. At June 30, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.4 billion, which represented 228% of uninsured deposit balances.
  • The Company and Bank are “well capitalized” under applicable regulatory guidelines, with total risk-based capital ratios of 13.0% and 12.8%, respectively, at June 30, 2024, well above regulatory minimums.

1 Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024 compared to $16.2 million, or $1.46 per diluted common share, for the first quarter of 2024, and $15.6 million, or $1.37 per diluted common share, for the second quarter of 2023.

Mark DeFazio, President and Chief Executive Officer, commented,

“Our strong second quarter financial results were underscored by an increase in the net interest margin and stable asset quality despite the persistence of a challenging operating environment. At the same time, we are progressing well on two major strategic initiatives - our digital transformation project and the exit from BaaS activities. We remain confident that our strategy and execution this year will position MCB for continued success.”

Balance Sheet

Total cash and cash equivalents were $244.7 million at June 30, 2024, a decrease of $289.7 million, or 54.2%, from March 31, 2024 and an increase of $42.9 million, or 21.3%, from June 30, 2023. The decrease from March 31, 2024, primarily reflects a $150.0 million decrease in wholesale funding and an increase in the loan book of $119.7 million. The increase from June 30, 2023, primarily reflects an $881.1 million increase in deposits, partially offset by an increase in the loan book of $689.3 and a $193.0 million decrease in wholesale funding.

Total loans, net of deferred fees and unamortized costs, were $5.8 billion at June 30, 2024, an increase of $119.7 million, or 2.1%, from March 31, 2024, and an increase of $689.3 million, or 13.4%, from June 30, 2023. Loan production was $290.8 million for the second quarter of 2024 compared to $269.6 million for the prior linked quarter and $425.4 million for the prior year period. The increase in total loans from March 31, 2024 was due primarily to an increase of $104.9 million in commercial real estate (“CRE”) loans (including owner-occupied) and $47.8 million in commercial and industrial (“C&I”) loans, partially offset by a decrease of $27.9 million of multi-family loans. The increase in total loans from June 30, 2023 was due primarily to an increase of $509.2 million in CRE loans (including owner-occupied) and $150.6 million in C&I loans.

Total deposits were $6.2 billion at June 30, 2024, a decrease of $67.9 million, or 1.1%, from March 31, 2024, and an increase of $881.1 million, or 16.7%, from June 30, 2023. The decrease from March 31, 2024 was due primarily to a decrease of $127.5 million in retail deposits with loan customers and other (GPG) deposits, partially offset by an increase in property manager and municipal deposits of $71.3 million. The increase in deposits from June 30, 2023, was due to broad based increases across most of the Bank’s various deposit verticals.

At June 30, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.4 billion. The Company and the Bank each met all the requirements to be considered “well capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 358.4% of total risk-based capital at June 30, 2024, compared to 363.3% and 363.2% at March 31, 2024 and June 30, 2023, respectively.

Income Statement

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six Months Ended

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

 

Jun. 30,

 

Jun. 30,

 

(dollars in thousands, except per share data)

 

2024

 

2024

 

2023

 

 

2024

 

2023

 

Total revenues(1)

 

$

67,678

 

$

66,713

 

$

61,606

 

 

$

134,391

 

$

127,114

 

Net income (loss)

 

$

16,799

 

$

16,203

 

$

15,561

 

 

 

33,002

 

 

40,637

 

Diluted earnings (loss) per common share

 

$

1.50

 

$

1.46

 

$

1.37

 

 

 

2.96

 

 

3.59

 

Return on average assets(2)

 

 

0.92

%

 

0.91

%

 

0.98

%

 

 

0.91

%

 

1.30

%

Return on average equity(2)

 

 

9.9

%

 

9.8

%

 

10.1

%

 

 

9.9

%

 

13.6

%

Return on average tangible common equity(2), (3), (4)

 

 

10.1

%

 

9.9

%

 

10.3

%

 

 

10.0

%

 

13.8

%

_____________________________

(1)

Total revenues equal net interest income plus non-interest income.

(2)

Annualized.

(3)

Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

(4)

Net income divided by average tangible common equity.

Net Interest Income

Net interest income for the second quarter of 2024 was $61.5 million compared to $59.7 million for the prior linked quarter and $53.8 million for the prior year period. The $1.8 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans and overnight deposits and an increase in the yield on loans, partially offset by an increase in the average balance of deposits and a modest increase in the cost of funds. The $7.8 million increase from the prior year period was due primarily to an increase in the average balance of loans and an increase in loan yields, partially offset by an increase in the average balance of deposits and an increase in the cost of funds.

Net Interest Margin

Net interest margin for the second quarter of 2024 was 3.44% compared to 3.40% and 3.44% for the prior linked quarter and prior year period, respectively. The 4 basis point increase from the prior linked quarter was driven largely by an increase in the average balance of loans and an increase in loan yields partially offset by an increase in the average balance of deposits and an increase in the cost of funds.

The total cost of funds for the second quarter of 2024 was 334 basis points compared to 330 basis points and 252 basis points for the prior linked quarter and prior year period, respectively. The increase from the prior linked quarter reflects the continued effects of high short-term interest rates and the intense competition for deposits. The increase from the prior year period reflects the continued effects of high short-term interest rates, the intense competition for deposits and a shift from non-interest bearing deposits to interest bearing funding primarily related to the exit from the crypto-related deposit vertical during 2023.

Non-Interest Income

Non-interest income was $6.1 million for the second quarter of 2024, a decrease of $865,000 from the prior linked quarter and a decrease of $1.7 million from the prior year period. The decrease from the prior linked quarter was driven primarily by a decrease in letter of credit fees and the continuing decline in GPG revenue as that business is wound down, partially offset by an increase in service charges on deposit accounts. The decrease from the prior year period was driven primarily by lower GPG revenue, partially offset by an increase in service charges on deposit accounts.

Non-Interest Expense

Non-interest expense was $42.3 million for the second quarter of 2024, inclusive of $5.5 million of expenses related to the GPG wind down, regulatory remediation, and the core banking digital transformation. The $357,000 increase from the prior linked quarter was due primarily to a $1.7 million increase in professional fees and other expenses, partially offset by a $1.3 million decline in compensation and benefits. In the prior linked quarter, compensation and benefits was elevated by GPG wind down severance expenses and seasonally higher employer taxes and benefit costs. The $9.8 million increase from the prior year period was due primarily to an increase of $3.2 million in compensation and benefits related to the increase in number of employees, an increase of $1.9 million in professional fees, an increase of $1.7 million in technology costs related to the digital transformation project, and an increase of $1.6 million in other expenses.

Income Tax Expense

The effective tax rate for the second quarter of 2024 was 29.7% compared to 33.3% for the prior linked quarter and 37.4% for the prior year period. The effective tax rate for the prior year period includes a discrete expense related to the rescission of certain stock awards.

Asset Quality

Credit quality remains stable. The ratio of non-performing loans to total loans declined to 0.53% at June 30, 2024 compared to 0.91% at March 31, 2024 due to one multi-family loan relationship that was returned to accrual status. The ratio of non-performing loans to total loans was 0.47% at June 30, 2023.

The allowance for credit losses was $60.0 million at June 30, 2024, an increase of $1.5 million from March 31, 2024, which includes a provision related to a single C&I loan.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Friday, July 19, 2024, to discuss the results. To access the event by telephone, please dial 800-267-6316 (US), 203-518-9783 (INTL), and provide conference ID: MCBQ224 approximately 15 minutes prior to the start time (to allow time for registration).

The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company’s website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software. For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”), a New York City based full-service commercial bank. The Bank provides a broad range of business, commercial and personal banking products and services to individuals, small businesses, private and public middle-market and corporate enterprises and institutions, municipalities, and local government entities.

Metropolitan Commercial Bank was named one of Newsweek’s Best Regional Banks and Credit Unions 2024. The Bank was named by the Independent Community Bankers of America as one of the top 20 commercial lenders with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating on January 25, 2024.

The Bank is a New York State chartered commercial bank, a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal housing lender.

For more information, please visit the Bank’s website at MCBankNY.com.

Forward-Looking Statement Disclaimer

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s future financial condition and capital ratios, results of operations and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that are difficult to predict and are generally beyond our control and may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the following: the interest rate policies of the Board of Governors of the Federal Reserve System; inflation; an unexpected deterioration in our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; further deterioration in the financial condition or stock prices of financial institutions generally; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; the lingering effects of the COVID-19 pandemic on our business and results of operation; unanticipated regulatory action or changes in regulations; potential recessionary conditions; unanticipated volatility in deposits; unexpected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans; our ability to absorb the amount of actual losses inherent in our existing loan portfolio; an unanticipated loss of key personnel or existing customers; competition from other institutions resulting in unanticipated changes in our loan or deposit rates; an unexpected adverse financial, regulatory or bankruptcy event experienced by our non-bank financial service partners; unanticipated increases in FDIC costs; changes in regulations, legislation or tax or accounting rules, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury; impacts related to or resulting from recent bank failures; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance, the credit and other risks from borrower and depositor concentrations (by geographic area and by industry); the current or anticipated impact of military conflict, terrorism or other geopolitical events; the costs, including possibly incurring fines, penalties or other negative effects (including reputational harm), of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions; a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks; the failure to maintain current technologies, or to implement new technologies; the failure to maintain effective internal controls over financial reporting; the failure to retain or attract employees; and unanticipated adverse changes in our customers’ economic conditions or general economic conditions, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.

Forward-looking statements speak only as of the date of this release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law.

Consolidated Balance Sheet (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

(in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

18,152

 

 

$

34,037

 

 

$

31,973

 

 

$

36,438

 

 

$

33,534

 

Overnight deposits

 

 

226,510

 

 

 

500,366

 

 

 

237,492

 

 

 

140,929

 

 

 

168,242

 

Total cash and cash equivalents

 

 

244,662

 

 

 

534,403

 

 

 

269,465

 

 

 

177,367

 

 

 

201,776

 

Investment securities available-for-sale

 

 

504,748

 

 

 

497,789

 

 

 

461,207

 

 

 

429,850

 

 

 

426,068

 

Investment securities held-to-maturity

 

 

449,368

 

 

 

460,249

 

 

 

468,860

 

 

 

478,886

 

 

 

515,613

 

Equity investment securities, at fair value

 

 

2,122

 

 

 

2,115

 

 

 

2,123

 

 

 

2,015

 

 

 

2,066

 

Total securities

 

 

956,238

 

 

 

960,153

 

 

 

932,190

 

 

 

910,751

 

 

 

943,747

 

Other investments

 

 

26,584

 

 

 

32,669

 

 

 

38,966

 

 

 

35,015

 

 

 

28,040

 

Loans, net of deferred fees and unamortized costs

 

 

5,838,892

 

 

 

5,719,218

 

 

 

5,624,797

 

 

 

5,354,487

 

 

 

5,149,546

 

Allowance for credit losses

 

 

(60,008

)

 

 

(58,538

)

 

 

(57,965

)

 

 

(52,298

)

 

 

(51,650

)

Net loans

 

 

5,778,884

 

 

 

5,660,680

 

 

 

5,566,832

 

 

 

5,302,189

 

 

 

5,097,896

 

Receivables from global payments business, net

 

 

90,626

 

 

 

93,852

 

 

 

87,648

 

 

 

79,892

 

 

 

84,919

 

Other assets

 

 

168,597

 

 

 

171,614

 

 

 

172,571

 

 

 

178,145

 

 

 

165,772

 

Total assets

 

$

7,265,591

 

 

$

7,453,371

 

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,883,176

 

 

$

1,927,629

 

 

$

1,837,874

 

 

$

1,746,626

 

 

$

1,730,380

 

Interest-bearing deposits

 

 

4,286,486

 

 

 

4,309,913

 

 

 

3,899,418

 

 

 

3,774,963

 

 

 

3,558,185

 

Total deposits

 

 

6,169,662

 

 

 

6,237,542

 

 

 

5,737,292

 

 

 

5,521,589

 

 

 

5,288,565

 

Federal funds purchased

 

 

 

 

 

 

 

 

99,000

 

 

 

 

 

 

243,000

 

Federal Home Loan Bank of New York advances

 

 

150,000

 

 

 

300,000

 

 

 

440,000

 

 

 

355,000

 

 

 

200,000

 

Trust preferred securities

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

Secured and other borrowings

 

 

107,514

 

 

 

107,549

 

 

 

7,585

 

 

 

7,621

 

 

 

7,655

 

Prepaid third-party debit cardholder balances

 

 

22,631

 

 

 

18,685

 

 

 

10,178

 

 

 

10,297

 

 

 

10,772

 

Other liabilities

 

 

102,760

 

 

 

95,434

 

 

 

93,976

 

 

 

133,322

 

 

 

130,263

 

Total liabilities

 

 

6,573,187

 

 

 

6,779,830

 

 

 

6,408,651

 

 

 

6,048,449

 

 

 

5,900,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

112

 

 

 

112

 

 

 

111

 

 

 

110

 

 

 

110

 

Additional paid in capital

 

 

395,520

 

 

 

393,341

 

 

 

395,871

 

 

 

393,544

 

 

 

392,742

 

Retained earnings

 

 

348,977

 

 

 

332,178

 

 

 

315,975

 

 

 

301,407

 

 

 

279,344

 

Accumulated other comprehensive gain (loss), net of tax effect

 

 

(52,205

)

 

 

(52,090

)

 

 

(52,936

)

 

 

(60,151

)

 

 

(50,921

)

Total stockholders’ equity

 

 

692,404

 

 

 

673,541

 

 

 

659,021

 

 

 

634,910

 

 

 

621,275

 

Total liabilities and stockholders’ equity

 

$

7,265,591

 

 

$

7,453,371

 

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

Consolidated Statement of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six Months Ended

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

Jun. 30,

 

Jun. 30,

(dollars in thousands, except per share data)

 

2024

 

2024

 

2023

 

2024

 

2023

Total interest income

 

$

115,761

 

$

112,335

 

$

88,978

 

$

228,096

 

$

172,241

 

Total interest expense

 

 

54,222

 

 

52,626

 

 

35,227

 

 

106,848

 

 

59,956

 

Net interest income

 

 

61,539

 

 

59,709

 

 

53,751

 

 

121,248

 

 

112,285

 

Provision for credit losses

 

 

1,538

 

 

528

 

 

4,305

 

 

2,066

 

 

4,951

 

Net interest income after provision for credit losses

 

 

60,001

 

 

59,181

 

 

49,446

 

 

119,182

 

 

107,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,094

 

 

1,863

 

 

1,481

 

 

3,957

 

 

2,937

 

Global Payments Group revenue

 

 

3,686

 

 

4,069

 

 

5,731

 

 

7,755

 

 

10,581

 

Other income

 

 

359

 

 

1,072

 

 

643

 

 

1,431

 

 

1,311

 

Total non-interest income

 

 

6,139

 

 

7,004

 

 

7,855

 

 

13,143

 

 

14,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

18,532

 

 

19,827

 

 

15,288

 

 

38,359

 

 

31,543

 

Bank premises and equipment

 

 

2,322

 

 

2,343

 

 

2,287

 

 

4,665

 

 

4,631

 

Professional fees

 

 

6,916

 

 

5,972

 

 

4,973

 

 

12,888

 

 

9,160

 

Technology costs

 

 

3,043

 

 

3,011

 

 

1,482

 

 

6,054

 

 

2,795

 

Licensing fees

 

 

3,180

 

 

3,276

 

 

3,014

 

 

6,456

 

 

5,676

 

FDIC assessments

 

 

2,925

 

 

2,925

 

 

1,640

 

 

5,850

 

 

4,454

 

Regulatory settlement reserve

 

 

 

 

 

 

 

 

 

 

(2,500

)

Other expenses

 

 

5,339

 

 

4,546

 

 

3,758

 

 

9,885

 

 

7,708

 

Total non-interest expense

 

 

42,257

 

 

41,900

 

 

32,442

 

 

84,157

 

 

63,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income tax expense

 

 

23,883

 

 

24,285

 

 

24,859

 

 

48,168

 

 

58,696

 

Income tax expense

 

 

7,084

 

 

8,082

 

 

9,298

 

 

15,166

 

 

18,059

 

Net income (loss)

 

$

16,799

 

$

16,203

 

$

15,561

 

$

33,002

 

$

40,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

11,192,936

 

 

11,132,989

 

 

11,136,261

 

 

11,163,127

 

 

11,090,695

 

Diluted

 

 

11,199,736

 

 

11,132,989

 

 

11,278,405

 

 

11,163,127

 

 

11,271,150

 

Basic earnings (loss)

 

$

1.50

 

$

1.46

 

$

1.39

 

$

2.96

 

$

3.65

 

Diluted earnings (loss)

 

$

1.50

 

$

1.46

 

$

1.37

 

$

2.96

 

$

3.59

 

Loan Production, Asset Quality & Regulatory Capital

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

 

 

2024

 

2024

 

2023

 

2023

 

2023

 

LOAN PRODUCTION (in millions)

 

$

290.8

 

$

269.6

 

$

342.5

 

$

333.5

 

$

425.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

24,000

 

$

44,939

 

$

44,939

 

$

24,000

 

$

24,000

 

Commercial and industrial

 

 

6,989

 

 

6,989

 

 

6,934

 

 

6,934

 

 

 

Consumer

 

 

 

 

 

 

24

 

 

24

 

 

24

 

Total non-accrual loans

 

$

30,989

 

$

51,928

 

$

51,897

 

$

30,958

 

$

24,024

 

Non-accrual loans to total loans

 

 

0.53

%

 

0.91

%

 

0.92

%

 

0.58

%

 

0.47

%

Allowance for credit losses

 

$

60,008

 

$

58,538

 

$

57,965

 

$

52,298

 

$

51,650

 

Allowance for credit losses to total loans

 

 

1.03

%

 

1.02

%

 

1.03

%

 

0.98

%

 

1.00

%

Charge-offs

 

$

(16)

 

$

(3)

 

$

(946)

 

$

(129)

 

$

(44)

 

Recoveries

 

$

 

$

2

 

$

 

$

 

$

 

Net charge-offs/(recoveries) to average loans (annualized)

 

 

%

 

%

 

0.07

%

 

0.01

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

10.3

%

 

10.3

%

 

10.6

%

 

10.7

%

 

10.8

%

Metropolitan Commercial Bank

 

 

10.1

%

 

10.1

%

 

10.3

%

 

10.5

%

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Risk-Based (CET1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.7

%

 

11.6

%

 

11.5

%

 

11.8

%

 

11.9

%

Metropolitan Commercial Bank

 

 

11.8

%

 

11.7

%

 

11.6

%

 

11.9

%

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

12.1

%

 

11.9

%

 

11.9

%

 

12.2

%

 

12.2

%

Metropolitan Commercial Bank

 

 

11.8

%

 

11.7

%

 

11.6

%

 

11.9

%

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

13.0

%

 

12.9

%

 

12.8

%

 

13.1

%

 

13.2

%

Metropolitan Commercial Bank

 

 

12.8

%

 

12.6

%

 

12.5

%

 

12.8

%

 

12.9

%

Performance Measures

 

 

Three months ended

 

Six Months Ended

 

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

Jun. 30,

 

Jun. 30,

 

(dollars in thousands, except per share data)

 

2024

 

2024

 

2023

 

2024

 

2023

 

Net income per consolidated statements of income

 

$

16,799

 

$

16,203

 

$

15,561

 

$

33,002

 

$

40,637

 

Less: Earnings allocated to participating securities

 

 

 

 

 

 

(82)

 

 

 

 

(170)

 

Net income (loss) available to common shareholders

 

$

16,799

 

$

16,203

 

$

15,479

 

$

33,002

 

$

40,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss)

 

$

1.50

 

$

1.46

 

$

1.39

 

$

2.96

 

$

3.65

 

Diluted earnings (loss)

 

$

1.50

 

$

1.46

 

$

1.37

 

$

2.96

 

$

3.59

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end

 

 

11,192,936

 

 

11,191,958

 

 

10,991,074

 

 

11,192,936

 

 

10,991,074

 

Average fully diluted

 

 

11,199,736

 

 

11,132,989

 

 

11,278,405

 

 

11,163,127

 

 

11,271,150

 

Return on:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

0.92

%

 

0.91

%

 

0.98

%

 

0.91

%

 

1.30

%

Average equity

 

 

9.9

%

 

9.8

%

 

10.1

%

 

9.9

%

 

13.6

%

Average tangible common equity(2), (3)

 

 

10.1

%

 

9.9

%

 

10.3

%

 

10.0

%

 

13.8

%

Yield on average earning assets(1)

 

 

6.47

%

 

6.40

%

 

5.70

%

 

6.43

%

 

5.61

%

Total cost of deposits(1)

 

 

3.26

%

 

3.16

%

 

2.19

%

 

3.21

%

 

1.95

%

Net interest spread(1)

 

 

1.77

%

 

1.77

%

 

1.80

%

 

1.77

%

 

2.01

%

Net interest margin(1)

 

 

3.44

%

 

3.40

%

 

3.44

%

 

3.42

%

 

3.65

%

Net charge-offs as % of average loans(1)

 

 

%

 

%

 

%

 

%

 

0.01

%

Efficiency ratio(4)

 

 

62.4

%

 

62.8

%

 

52.7

%

 

62.6

%

 

49.9

%

______________________________

(1)

Annualized

(2)

Net income divided by average tangible common equity.

(3)

Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

(4)

Total non-interest expense divided by total revenues.

Interest Margin Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Jun. 30, 2024

 

 

Mar. 31, 2024

 

 

Jun. 30, 2023

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

 

$

5,754,283

 

 

$

104,594

 

7.31

%

 

$

5,696,841

 

 

$

102,381

 

7.23

%

 

$

4,921,887

 

 

$

80,516

 

6.54

%

Available-for-sale securities

 

 

589,825

 

 

 

3,353

 

2.29

 

 

 

565,292

 

 

 

2,957

 

2.10

 

 

 

520,322

 

 

 

2,068

 

1.59

 

Held-to-maturity securities

 

 

456,078

 

 

 

2,124

 

1.87

 

 

 

465,270

 

 

 

2,172

 

1.88

 

 

 

519,076

 

 

 

2,602

 

2.01

 

Equity investments

 

 

2,431

 

 

 

16

 

2.59

 

 

 

2,416

 

 

 

15

 

2.47

 

 

 

2,375

 

 

 

13

 

2.09

 

Overnight deposits

 

 

369,169

 

 

 

5,167

 

5.63

 

 

 

297,992

 

 

 

4,154

 

5.61

 

 

 

237,449

 

 

 

3,086

 

5.14

 

Other interest-earning assets

 

 

27,301

 

 

 

506

 

7.45

 

 

 

33,428

 

 

 

656

 

7.89

 

 

 

39,197

 

 

 

693

 

7.08

 

Total interest-earning assets

 

 

7,199,087

 

 

 

115,761

 

6.47

 

 

 

7,061,239

 

 

 

112,335

 

6.40

 

 

 

6,240,306

 

 

 

88,978

 

5.70

 

Non-interest-earning assets

 

 

182,234

 

 

 

 

 

 

 

 

 

183,046

 

 

 

 

 

 

 

 

 

162,326

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(58,841

)

 

 

 

 

 

 

 

 

(58,517

)

 

 

 

 

 

 

 

 

(48,035

)

 

 

 

 

 

 

Total assets

 

$

7,322,480

 

 

 

 

 

 

 

 

$

7,185,768

 

 

 

 

 

 

 

 

$

6,354,597

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

4,319,340

 

 

 

50,236

 

4.68

 

 

$

4,099,466

 

 

 

46,611

 

4.57

 

 

$

2,987,237

 

 

 

27,100

 

3.64

 

Certificates of deposit

 

 

37,084

 

 

 

318

 

3.45

 

 

 

34,264

 

 

 

275

 

3.22

 

 

 

45,925

 

 

 

303

 

2.65

 

Total interest-bearing deposits

 

 

4,356,424

 

 

 

50,554

 

4.67

 

 

 

4,133,730

 

 

 

46,886

 

4.56

 

 

 

3,033,162

 

 

 

27,403

 

3.62

 

Borrowed funds

 

 

287,104

 

 

 

3,667

 

5.14

 

 

 

437,389

 

 

 

5,740

 

5.28

 

 

 

588,281

 

 

 

7,824

 

5.32

 

Total interest-bearing liabilities

 

 

4,643,528

 

 

 

54,222

 

4.70

 

 

 

4,571,119

 

 

 

52,626

 

4.63

 

 

 

3,621,443

 

 

 

35,227

 

3.90

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,879,213

 

 

 

 

 

 

 

 

 

1,835,368

 

 

 

 

 

 

 

 

 

1,977,443

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

119,675

 

 

 

 

 

 

 

 

 

112,272

 

 

 

 

 

 

 

 

 

139,341

 

 

 

 

 

 

 

Total liabilities

 

 

6,642,416

 

 

 

 

 

 

 

 

 

6,518,759

 

 

 

 

 

 

 

 

 

5,738,227

 

 

 

 

 

 

 

Stockholders' equity

 

 

680,064

 

 

 

 

 

 

 

 

 

667,009

 

 

 

 

 

 

 

 

 

616,370

 

 

 

 

 

 

 

Total liabilities and equity

 

$

7,322,480

 

 

 

 

 

 

 

 

$

7,185,768

 

 

 

 

 

 

 

 

$

6,354,597

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

61,539

 

 

 

 

 

 

 

$

59,709

 

 

 

 

 

 

 

$

53,751

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

1.77

%

 

 

 

 

 

 

 

1.77

%

 

 

 

 

 

 

 

1.80

%

Net interest margin (4)

 

 

 

 

 

 

 

3.44

%

 

 

 

 

 

 

 

3.40

%

 

 

 

 

 

 

 

3.44

%

Total cost of deposits (5)

 

 

 

 

 

 

 

3.26

%

 

 

 

 

 

 

 

3.16

%

 

 

 

 

 

 

 

2.19

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.34

%

 

 

 

 

 

 

 

3.30

%

 

 

 

 

 

 

 

2.52

%

_______________________________

(1)

Ratios are annualized.

(2)

Amount includes deferred loan fees and non-performing loans.

(3)

Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.

(4)

Determined by dividing annualized net interest income by total average interest-earning assets.

(5)

Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.

(6)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

Jun. 30, 2024

 

 

Jun. 30, 2023

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

 

$

5,725,562

 

 

$

206,976

 

7.27

%

 

$

4,880,343

 

 

$

156,476

 

6.45

%

Available-for-sale securities

 

 

577,558

 

 

 

6,311

 

2.20

 

 

 

525,384

 

 

$

4,175

 

1.59

 

Held-to-maturity securities

 

 

460,674

 

 

 

4,296

 

1.88

 

 

 

512,900

 

 

$

4,978

 

1.94

 

Equity investments

 

 

2,423

 

 

 

30

 

2.53

 

 

 

2,368

 

 

$

25

 

2.09

 

Overnight deposits

 

 

333,580

 

 

 

9,321

 

5.62

 

 

 

222,765

 

 

$

5,570

 

4.97

 

Other interest-earning assets

 

 

30,365

 

 

 

1,162

 

7.69

 

 

 

29,733

 

 

$

1,017

 

6.84

 

Total interest-earning assets

 

 

7,130,162

 

 

 

228,096

 

6.43

 

 

 

6,173,493

 

 

 

172,241

 

5.61

 

Non-interest-earning assets

 

 

182,635

 

 

 

 

 

 

 

 

 

157,338

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(58,679

)

 

 

 

 

 

 

 

 

(46,831

)

 

 

 

 

 

 

Total assets

 

$

7,254,118

 

 

 

 

 

 

 

 

$

6,284,000

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

4,209,403

 

 

$

96,848

 

4.63

 

 

$

2,914,160

 

 

$

49,129

 

3.40

 

Certificates of deposit

 

 

35,674

 

 

 

593

 

3.34

 

 

 

49,399

 

 

$

647

 

2.64

 

Total interest-bearing deposits

 

 

4,245,077

 

 

 

97,441

 

4.62

 

 

 

2,963,559

 

 

 

49,776

 

3.39

 

Borrowed funds

 

 

362,246

 

 

 

9,407

 

5.22

 

 

 

389,360

 

 

 

10,180

 

5.23

 

Total interest-bearing liabilities

 

 

4,607,323

 

 

 

106,848

 

4.66

 

 

 

3,352,919

 

 

 

59,956

 

3.61

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,857,290

 

 

 

 

 

 

 

 

 

2,183,000

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

115,974

 

 

 

 

 

 

 

 

 

143,573

 

 

 

 

 

 

 

Total liabilities

 

 

6,580,587

 

 

 

 

 

 

 

 

 

5,679,492

 

 

 

 

 

 

 

Stockholders' equity

 

 

673,531

 

 

 

 

 

 

 

 

 

604,508

 

 

 

 

 

 

 

Total liabilities and equity

 

$

7,254,118

 

 

 

 

 

 

 

 

$

6,284,000

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

121,248

 

 

 

 

 

 

 

$

112,285

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

1.77

%

 

 

 

 

 

 

 

2.01

%

Net interest margin (4)

 

 

 

 

 

 

 

3.42

%

 

 

 

 

 

 

 

3.65

%

Total cost of deposits (5)

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

 

1.95

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.32

%

 

 

 

 

 

 

 

2.18

%

_______________________________

(1)

Ratios are annualized.

(2)

Amount includes deferred loan fees and non-performing loans.

(3)

Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.

(4)

Determined by dividing annualized net interest income by total average interest-earning assets.

(5)

Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.

(6)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Data

 

 

Six Months Ended

 

(dollars in thousands,

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

except per share data)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2024

 

 

2023

 

Average assets

 

$

7,322,480

 

 

$

7,185,768

 

 

$

6,861,335

 

 

$

6,589,857

 

 

$

6,354,597

 

 

$

7,254,118

 

 

$

6,284,000

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible assets (non-GAAP)

 

$

7,312,747

 

 

$

7,176,035

 

 

$

6,851,602

 

 

$

6,580,124

 

 

$

6,344,864

 

 

$

7,244,385

 

 

$

6,274,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

680,064

 

 

$

667,009

 

 

$

643,257

 

 

$

631,205

 

 

$

616,370

 

 

$

673,531

 

 

$

604,508

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible common equity (non-GAAP)

 

$

670,331

 

 

$

657,276

 

 

$

633,524

 

 

$

621,472

 

 

$

606,637

 

 

$

663,798

 

 

$

594,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,265,591

 

 

$

7,453,371

 

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

$

7,265,591

 

 

$

6,522,150

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible assets (non-GAAP)

 

$

7,255,858

 

 

$

7,443,638

 

 

$

7,057,939

 

 

$

6,673,626

 

 

$

6,512,417

 

 

$

7,255,858

 

 

$

6,512,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity

 

$

692,404

 

 

$

673,541

 

 

$

659,021

 

 

$

634,910

 

 

$

621,275

 

 

$

692,404

 

 

$

621,275

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible common equity (book value) (non-GAAP)

 

$

682,671

 

 

$

663,808

 

 

$

649,288

 

 

$

625,177

 

 

$

611,542

 

 

$

682,671

 

 

$

611,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

11,192,936

 

 

 

11,191,958

 

 

 

11,062,729

 

 

 

11,062,729

 

 

 

10,991,074

 

 

 

11,192,936

 

 

 

10,991,074

 

Book value per share (GAAP)

 

$

61.86

 

 

$

60.18

 

 

$

59.57

 

 

$

57.39

 

 

$

56.53

 

 

$

61.86

 

 

$

56.53

 

Tangible book value per share (non-GAAP) (1)

 

$

60.99

 

 

$

59.31

 

 

$

58.69

 

 

$

56.51

 

 

$

55.64

 

 

$

60.99

 

 

$

55.64

 

_______________________________

(1)

Tangible book value divided by common shares outstanding at period-end.

Explanatory Note

Some amounts presented within this document may not recalculate due to rounding.

Contacts

Daniel F. Dougherty

EVP & Chief Financial Officer

Metropolitan Commercial Bank

(212) 365-6721

IR@MCBankNY.com

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