MCB Metropolitan Bank Holding Corp

Strong commercial bank franchise underscores resiliency in challenging macroeconomic environment

Investment in core banking digital transformation underway to support continued growth

Financial Highlights

• Total deposits at March 31, 2024 were $6.2 billion, an increase of $500.3 million from December 31, 2023 and an increase of $1.1 billion from March 31, 2023.
• Net interest margin expanded 4 basis points to 3.40% for the first quarter of 2024 compared to 3.36% for the fourth quarter of 2023.
• Loans at March 31, 2024 were $5.7 billion, an increase of $94.4 million from December 31, 2023 and $867.5 million from March 31, 2023.
• Diluted earnings per share of $1.46 for the first quarter of 2024, an increase of 14.1% compared to the fourth quarter of 2023, inclusive of $4.9 million of expenses in the first quarter of 2024 related to the Global Payments Group (“GPG”) wind down, regulatory remediation, and the core banking digital transformation.
• Return on average equity of 9.8% and return on average tangible common equity1 of 9.9% for the first quarter of 2024.
• Asset quality continues to be stable and a source of strength.
• Liquidity remains strong. At March 31, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.4 billion, which was 222% of uninsured deposit balances.
• The Company and Bank are “well capitalized” across all measures of regulatory capital, with total risk-based capital ratios of 12.9% and 12.6%, respectively, at March 31, 2024, well above regulatory minimums.

1 Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 11.

Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $16.2 million, or $1.46 per diluted common share, for the first quarter of 2024 compared to $14.6 million, or $1.28 per diluted common share, for the fourth quarter of 2023, and $25.1 million, or $2.25 per diluted common share, for the first quarter of 2023.

Mark DeFazio, President and Chief Executive Officer, commented,

“As the only true mid-sized commercial bank headquartered in NYC, we continue to deliver strong returns for our shareholders while simultaneously and diligently preparing the bank for the future. We are ready, willing, and able to support our clients with our strong capital position and outstanding liquidity, supported by a continued focus on risk management.”

Balance Sheet

Total cash and cash equivalents were $534.4 million at March 31, 2024, an increase of $264.9 million, or 98.3%, from December 31, 2023 and an increase of $234.9 million, or 78.4%, from March 31, 2023. The increase from December 31, 2023, primarily reflected the $500.3 million increase in deposits partially offset by the $139.0 million decrease in wholesale funding and $94.4 million net deployment into loans. The increase from March 31, 2023, primarily reflected the $1.1 billion increase in deposits partially offset by the $867.5 million net deployment into loans.

Total loans, net of deferred fees and unamortized costs, were $5.7 billion, an increase of $94.4 million, or 1.7%, from December 31, 2023, and an increase of $867.5 million, or 17.9%, from March 31, 2023. Loan production was $269.6 million for the first quarter of 2024 compared to $342.5 million for the prior linked quarter and $265.4 million for the prior year period. The increase in total loans from December 31, 2023 was due primarily to an increase of $93.4 million in commercial real estate (“CRE”) loans (including owner-occupied). The increase in total loans from March 31, 2023 was due primarily to an increase of $641.4 million in CRE loans (including owner-occupied) and $122.5 million in commercial and industrial loans.

Total deposits were $6.2 billion at March 31, 2024, an increase of $500.3 million, or 8.7%, from December 31, 2023, and an increase of $1.1 billion, or 21.5%, from March 31, 2023. The increase from December 31, 2023, was due primarily to an increase of $136.3 million in retail deposits, $101.9 million in municipal deposits, $98.7 million in property manager deposits and an aggregate net increase of $163.4 million across other deposit verticals. The increase in deposits from March 31, 2023, was due to broad based increases across most of the various deposit verticals, partially offset by the outflow of crypto-related deposits.

At March 31, 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 363.3% of total risk-based capital at March 31, 2024, compared to 368.1% and 357.8% at December 31, 2023 and March 31, 2023, respectively.

Income Statement

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

(dollars in thousands, except per share data)

 

2024

 

2023

 

2023

 

Total revenues(1)

 

$

66,713

 

$

63,555

 

$

65,508

 

Net income (loss)

 

$

16,203

 

$

14,568

 

$

25,076

 

Diluted earnings (loss) per common share

 

$

1.46

 

$

1.28

 

$

2.25

 

Return on average assets(2)

 

 

0.91

%

 

0.84

%

 

1.64

%

Return on average equity(2)

 

 

9.8

%

 

9.0

%

 

17.2

%

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

 

 

9.9

%

 

9.1

%

 

17.4

%

 

_____________________________ (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 11. (4) Net income divided by average tangible common equity.

Net Interest Income

Net interest income for the first quarter of 2024 was $59.7 million compared to $57.0 million for the prior linked quarter and $58.5 million for the prior year period. The $2.7 million increase from the prior linked quarter was due primarily to loan growth and increases in loan yields, partially offset by the growth in deposits and increase in the cost of funds. The $1.2 million increase from the prior year period was due primarily to loan growth and increases in loan yields, partially offset by the growth in deposits and increase in the cost of funds.

Net Interest Margin

Net interest margin for the first quarter of 2024 was 3.40% compared to 3.36% and 3.86% for the prior linked quarter and prior year period, respectively. The 46 basis point decrease from the prior year period was driven largely by the shift from non-interest bearing deposits to interest bearing deposits related to the final exit from the crypto-related deposit vertical, the increase in the average balance of borrowed funds and, moreover, the increase in the cost of funds, partially offset by loan growth and the increase in loan yields.

Total cost of funds for the first quarter of 2024 was 330 basis points compared to 314 basis points and 183 basis points for the prior linked quarter and prior year period, respectively. The increase in the cost of funds reflects the continued effects of high short-term interest rates, intense competition, and the shift from non-interest bearing deposits to interest bearing funding related to the final exit from the crypto-related deposit vertical.

Non-Interest Income

Non-interest income was $7.0 million for the first quarter of 2024, an increase of $443,000 from the prior linked quarter and an increase of $30,000 from the prior year period. The increase from the prior linked quarter was driven primarily by an increase in fees associated with letters of credit and other service charges and fees. The increase from the prior linked period was driven primarily by an increase in service charges on deposit accounts and other service charges and fees, partially offset by lower GPG revenue.

Non-Interest Expense

Non-interest expense was $41.9 million for the first quarter of 2024, an increase of $4.8 million from the prior linked quarter and an increase of $10.9 million from the prior year period. The increase from the prior linked quarter was due primarily to $1.8 million in technology costs related to the digital transformation project, and an increase of $1.6 million in compensation and benefits due to severance expenses related to the GPG wind down, as well as seasonally higher employer taxes and benefit costs. At the beginning of 2024, we began implementing an innovative digital transformation project to improve our capabilities and efficiencies for both customer facing and internal processes. In addition, we disclosed that the Company will exit all GPG Banking-as-a-Service relationships, which is expected to be completed during 2024.

The increase from the prior year period was due primarily to an increase of $3.6 million in compensation and benefits due to severance expenses related to the GPG wind down, as well as the increase in number of employees, the $2.5 million reversal of the regulatory settlement reserve recorded in the first quarter of 2023, an increase of $1.7 million in technology costs mainly related to the digital transformation project, and an increase of $1.8 million in professional fees.

Income Tax Expense

The effective tax rate for the first quarter of 2024 was 33.3% compared to 26.7% for the prior linked quarter and 25.9% for the prior year period. The effective tax rate for the first quarter of 2024 reflects unfavorable discrete items related to employee stock compensation. The effective tax rate for the prior linked quarter reflects seasonal annual adjustments. The effective tax rate for the prior year period includes a favorable discrete benefit related to the conversion of stock awards.

Asset Quality

Credit quality remains stable. The ratio of non-performing loans to total loans was 0.91% at March 31, 2024 compared to 0.92% at December 31, 2023 and 0.50% at March 31, 2023, respectively. The allowance for credit losses was $58.5 million at March 31, 2024, an increase of $573,000 from December 31, 2023 and an increase of $10.8 million from March 31, 2023. The increase from the prior linked quarter was due primarily to loan growth. The increase from the prior year period was due primarily to loan growth and a $4.8 million provision recorded in the fourth quarter of 2023 related to a single multifamily loan.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Friday, April 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: MCBQ124 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 ranked by Independent Community Bankers of America among the top ten successful loan producers for 2023 by loan category and asset size for commercial banks with more than $1 billion in assets. The Bank finished ninth in S&P Global Market Intelligence’s annual ranking of the best-performing community banks with assets between $3 billion and $10 billion for 2022 and eighth among top-performing community banks in the Northeast region for 2022. 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

(in thousands)

 

2024

 

2023

 

2023

 

2023

 

2023

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

34,037

 

$

31,973

 

$

36,438

 

$

33,534

 

$

32,525

Overnight deposits

 

 

500,366

 

 

237,492

 

 

140,929

 

 

168,242

 

 

266,978

Total cash and cash equivalents

 

 

534,403

 

 

269,465

 

 

177,367

 

 

201,776

 

 

299,503

Investment securities available-for-sale

 

 

497,789

 

 

461,207

 

 

429,850

 

 

426,068

 

 

444,169

Investment securities held-to-maturity

 

 

460,249

 

 

468,860

 

 

478,886

 

 

515,613

 

 

501,525

Equity investment securities, at fair value

 

 

2,115

 

 

2,123

 

 

2,015

 

 

2,066

 

 

2,087

Total securities

 

 

960,153

 

 

932,190

 

 

910,751

 

 

943,747

 

 

947,781

Other investments

 

 

32,669

 

 

38,966

 

 

35,015

 

 

28,040

 

 

27,099

Loans, net of deferred fees and unamortized costs

 

 

5,719,218

 

 

5,624,797

 

 

5,354,487

 

 

5,149,546

 

 

4,851,694

Allowance for credit losses

 

 

(58,538)

 

 

(57,965)

 

 

(52,298)

 

 

(51,650)

 

 

(47,752)

Net loans

 

 

5,660,680

 

 

5,566,832

 

 

5,302,189

 

 

5,097,896

 

 

4,803,942

Receivables from global payments business, net

 

 

93,852

 

 

87,648

 

 

79,892

 

 

84,919

 

 

83,787

Other assets

 

 

171,614

 

 

172,571

 

 

178,145

 

 

165,772

 

 

147,870

Total assets

 

$

7,453,371

 

$

7,067,672

 

$

6,683,359

 

$

6,522,150

 

$

6,309,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,927,629

 

$

1,837,874

 

$

1,746,626

 

$

1,730,380

 

$

2,122,606

Interest-bearing deposits

 

 

4,309,913

 

 

3,899,418

 

 

3,774,963

 

 

3,558,185

 

 

3,009,182

Total deposits

 

 

6,237,542

 

 

5,737,292

 

 

5,521,589

 

 

5,288,565

 

 

5,131,788

Federal funds purchased

 

 

100,000

 

 

99,000

 

 

—

 

 

243,000

 

 

195,000

Federal Home Loan Bank of New York advances

 

 

300,000

 

 

440,000

 

 

355,000

 

 

200,000

 

 

200,000

Trust preferred securities

 

 

20,620

 

 

20,620

 

 

20,620

 

 

20,620

 

 

20,620

Secured borrowings

 

 

7,549

 

 

7,585

 

 

7,621

 

 

7,655

 

 

7,689

Prepaid third-party debit cardholder balances

 

 

18,685

 

 

10,178

 

 

10,297

 

 

10,772

 

 

11,102

Other liabilities

 

 

95,434

 

 

93,976

 

 

133,322

 

 

130,263

 

 

135,896

Total liabilities

 

 

6,779,830

 

 

6,408,651

 

 

6,048,449

 

 

5,900,875

 

 

5,702,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

112

 

 

111

 

 

110

 

 

110

 

 

112

Additional paid in capital

 

 

393,341

 

 

395,871

 

 

393,544

 

 

392,742

 

 

394,124

Retained earnings

 

 

332,178

 

 

315,975

 

 

301,407

 

 

279,344

 

 

263,783

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

 

 

(52,090)

 

 

(52,936)

 

 

(60,151)

 

 

(50,921)

 

 

(50,132)

Total stockholders’ equity

 

 

673,541

 

 

659,021

 

 

634,910

 

 

621,275

 

 

607,887

Total liabilities and stockholders’ equity

 

$

7,453,371

 

$

7,067,672

 

$

6,683,359

 

$

6,522,150

 

$

6,309,982

Consolidated Statement of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

(dollars in thousands, except per share data)

 

2024

 

2023

 

2023

Total interest income

 

$

112,335

 

$

105,267

 

$

83,263

Total interest expense

 

 

52,626

 

 

48,273

 

 

24,729

Net interest income

 

 

59,709

 

 

56,994

 

 

58,534

Provision for credit losses

 

 

528

 

 

6,541

 

 

646

Net interest income after provision for credit losses

 

 

59,181

 

 

50,453

 

 

57,888

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,863

 

 

1,671

 

 

1,456

Global Payments Group revenue

 

 

4,069

 

 

4,177

 

 

4,850

Other income

 

 

1,072

 

 

713

 

 

668

Total non-interest income

 

 

7,004

 

 

6,561

 

 

6,974

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

19,827

 

 

18,210

 

 

16,255

Bank premises and equipment

 

 

2,343

 

 

2,317

 

 

2,344

Professional fees

 

 

5,972

 

 

5,031

 

 

4,187

Technology costs

 

 

3,011

 

 

974

 

 

1,313

Licensing fees

 

 

3,276

 

 

3,638

 

 

2,662

FDIC assessments

 

 

2,925

 

 

2,639

 

 

2,814

Regulatory settlement reserve

 

 

—

 

 

—

 

 

(2,500)

Other expenses

 

 

4,546

 

 

4,338

 

 

3,950

Total non-interest expense

 

 

41,900

 

 

37,147

 

 

31,025

 

 

 

 

 

 

 

 

 

 

Net income before income tax expense

 

 

24,285

 

 

19,867

 

 

33,837

Income tax expense

 

 

8,082

 

 

5,299

 

 

8,761

Net income (loss)

 

$

16,203

 

$

14,568

 

$

25,076

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

11,132,989

 

 

11,062,729

 

 

11,044,624

Diluted

 

 

11,132,989

 

 

11,366,463

 

 

11,103,008

Basic earnings (loss)

 

$

1.46

 

$

1.31

 

$

2.26

Diluted earnings (loss)

 

$

1.46

 

$

1.28

 

$

2.25

Loan Production, Asset Quality & Regulatory Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

 

 

2024

 

2023

 

2023

 

2023

 

2023

 

LOAN PRODUCTION (in millions)

 

$

269.6

 

$

342.5

 

$

333.5

 

$

425.4

 

$

265.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

44,939

 

$

44,939

 

$

24,000

 

$

24,000

 

$

24,000

 

Commercial and industrial

 

 

6,989

 

 

6,934

 

 

6,934

 

 

—

 

 

—

 

Consumer

 

 

—

 

 

24

 

 

24

 

 

24

 

 

24

 

Total non-accrual loans

 

$

51,928

 

$

51,897

 

$

30,958

 

$

24,024

 

$

24,024

Non-accrual loans to total loans

 

 

0.91

%

 

0.92

%

 

0.58

%

 

0.47

%

 

0.50

%

Allowance for credit losses

 

$

58,538

 

$

57,965

 

$

52,298

 

$

51,650

 

$

47,752

 

Allowance for credit losses to total loans

 

 

1.02

%

 

1.03

%

 

0.98

%

 

1.00

%

 

0.98

%

Charge-offs

 

$

(3)

 

$

(946)

 

$

(129)

 

$

(44)

 

$

(100)

 

Recoveries

 

$

2

 

$

—

 

$

—

 

$

—

 

$

—

 

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

 

 

—

%

 

0.07

%

 

0.01

%

 

—

%

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

10.3

%

 

10.6

%

 

10.7

%

 

10.8

%

 

10.8

%

Metropolitan Commercial Bank

 

 

10.1

%

 

10.3

%

 

10.5

%

 

10.5

%

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Risk-Based (CET1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.6

%

 

11.5

%

 

11.8

%

 

11.9

%

 

12.3

%

Metropolitan Commercial Bank

 

 

11.7

%

 

11.6

%

 

11.9

%

 

11.9

%

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.9

%

 

11.9

%

 

12.2

%

 

12.2

%

 

12.7

%

Metropolitan Commercial Bank

 

 

11.7

%

 

11.6

%

 

11.9

%

 

11.9

%

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

12.9

%

 

12.8

%

 

13.1

%

 

13.2

%

 

13.6

%

Metropolitan Commercial Bank

 

 

12.6

%

 

12.5

%

 

12.8

%

 

12.9

%

 

13.2

%

Performance Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

(dollars in thousands, except per share data)

 

2024

 

2023

 

2023

 

Net income per consolidated statements of income

 

$

16,203

 

$

14,568

 

$

25,076

 

Less: Earnings allocated to participating securities

 

 

—

 

 

(78)

 

 

(84)

 

Net income (loss) available to common shareholders

 

$

16,203

 

$

14,490

 

$

24,992

 

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss)

 

$

1.46

 

$

1.31

 

$

2.26

 

Diluted earnings (loss)

 

$

1.46

 

$

1.28

 

$

2.25

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Period end

 

 

11,191,958

 

 

11,062,729

 

 

11,211,274

 

Average fully diluted

 

 

11,132,989

 

 

11,366,463

 

 

11,103,008

 

Return on:(1)

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

0.91

%

 

0.84

%

 

1.64

%

Average equity

 

 

9.8

%

 

9.0

%

 

17.2

%

Average tangible common equity(2), (3)

 

 

9.9

%

 

9.1

%

 

17.4

%

Yield on average earning assets(1)

 

 

6.40

%

 

6.21

%

 

5.51

%

Total cost of deposits(1)

 

 

3.16

%

 

2.98

%

 

1.72

%

Net interest spread(1)

 

 

1.77

%

 

1.81

%

 

2.25

%

Net interest margin(1)

 

 

3.40

%

 

3.36

%

 

3.86

%

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

 

 

—

%

 

0.07

%

 

0.01

%

Efficiency ratio(4)

 

 

62.8

%

 

58.4

%

 

47.4

%

 

_____________________________ (1) Annualized (2) Net income divided by average tangible common equity. (3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 11. (4) Total non-interest expense divided by total revenues.

Interest Margin Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Mar. 31, 2024

 

 

Dec. 31, 2023

 

 

Mar. 31, 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)

 

$

5,696,841

 

$

102,381

 

7.23

%

 

$

5,538,095

 

$

97,897

 

7.01

%

 

$

4,838,336

 

$

75,960

 

6.34

%

Available-for-sale securities

 

 

565,292

 

 

2,957

 

2.10

 

 

 

532,970

 

 

2,430

 

1.82

 

 

 

530,503

 

 

2,106

 

1.59

 

Held-to-maturity securities

 

 

465,270

 

 

2,172

 

1.88

 

 

 

474,475

 

 

2,217

 

1.87

 

 

 

506,655

 

 

2,377

 

1.88

 

Equity investments

 

 

2,416

 

 

15

 

2.47

 

 

 

2,401

 

 

14

 

2.30

 

 

 

2,362

 

 

12

 

2.08

 

Overnight deposits

 

 

297,992

 

 

4,154

 

5.61

 

 

 

139,009

 

 

1,966

 

5.53

 

 

 

207,917

 

 

2,484

 

4.78

 

Other interest-earning assets

 

 

33,428

 

 

656

 

7.89

 

 

 

35,718

 

 

743

 

8.32

 

 

 

20,163

 

 

324

 

6.42

 

Total interest-earning assets

 

 

7,061,239

 

 

112,335

 

6.40

 

 

 

6,722,668

 

 

105,267

 

6.21

 

 

 

6,105,936

 

 

83,263

 

5.51

 

Non-interest-earning assets

 

 

183,046

 

 

 

 

 

 

 

 

192,237

 

 

 

 

 

 

 

 

152,302

 

 

 

 

 

 

Allowance for credit losses

 

 

(58,517)

 

 

 

 

 

 

 

 

(53,570)

 

 

 

 

 

 

 

 

(45,614)

 

 

 

 

 

 

Total assets

 

$

7,185,768

 

 

 

 

 

 

 

$

6,861,335

 

 

 

 

 

 

 

$

6,212,624

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

4,099,466

 

 

46,611

 

4.57

 

 

$

3,891,476

 

 

42,395

 

4.32

 

 

$

2,840,271

 

 

22,030

 

3.15

 

Certificates of deposit

 

 

34,264

 

 

275

 

3.22

 

 

 

34,179

 

 

272

 

3.16

 

 

 

52,912

 

 

343

 

2.63

 

Total interest-bearing deposits

 

 

4,133,730

 

 

46,886

 

4.56

 

 

 

3,925,655

 

 

42,667

 

4.31

 

 

 

2,893,183

 

 

22,373

 

3.14

 

Borrowed funds

 

 

437,389

 

 

5,740

 

5.28

 

 

 

427,250

 

 

5,606

 

5.25

 

 

 

188,230

 

 

2,356

 

5.01

 

Total interest-bearing liabilities

 

 

4,571,119

 

 

52,626

 

4.63

 

 

 

4,352,905

 

 

48,273

 

4.40

 

 

 

3,081,413

 

 

24,729

 

3.26

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,835,368

 

 

 

 

 

 

 

 

1,748,178

 

 

 

 

 

 

 

 

2,390,840

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

112,272

 

 

 

 

 

 

 

 

116,995

 

 

 

 

 

 

 

 

147,850

 

 

 

 

 

 

Total liabilities

 

 

6,518,759

 

 

 

 

 

 

 

 

6,218,078

 

 

 

 

 

 

 

 

5,620,103

 

 

 

 

 

 

Stockholders' equity

 

 

667,009

 

 

 

 

 

 

 

 

643,257

 

 

 

 

 

 

 

 

592,521

 

 

 

 

 

 

Total liabilities and equity

 

$

7,185,768

 

 

 

 

 

 

 

$

6,861,335

 

 

 

 

 

 

 

$

6,212,624

 

 

 

 

 

 

Net interest income

 

 

 

 

$

59,709

 

 

 

 

 

 

 

$

56,994

 

 

 

 

 

 

 

$

58,534

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

1.77

%

 

 

 

 

 

 

 

1.81

%

 

 

 

 

 

 

 

2.25

%

Net interest margin (4)

 

 

 

 

 

 

 

3.40

%

 

 

 

 

 

 

 

3.36

%

 

 

 

 

 

 

 

3.86

%

Total cost of deposits (5)

 

 

 

 

 

 

 

3.16

%

 

 

 

 

 

 

 

2.98

%

 

 

 

 

 

 

 

1.72

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.30

%

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

1.83

%

 

_____________________________ (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

 

(dollars in thousands,

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

Jun. 30,

 

 

Mar. 31,

 

except per share data)

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

Average assets

 

$

7,185,768

 

 

$

6,861,335

 

 

$

6,589,857

 

 

$

6,354,597

 

 

$

6,212,624

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible assets (non-GAAP)

 

$

7,176,035

 

 

$

6,851,602

 

 

$

6,580,124

 

 

$

6,344,864

 

 

$

6,202,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

667,009

 

 

$

643,257

 

 

$

631,205

 

 

$

616,370

 

 

$

592,521

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible common equity (non-GAAP)

 

$

657,276

 

 

$

633,524

 

 

$

621,472

 

 

$

606,637

 

 

$

582,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,453,371

 

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

$

6,309,982

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible assets (non-GAAP)

 

$

7,443,638

 

 

$

7,057,939

 

 

$

6,673,626

 

 

$

6,512,417

 

 

$

6,300,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity

 

$

673,541

 

 

$

659,021

 

 

$

634,910

 

 

$

621,275

 

 

$

607,887

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

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

 

$

663,808

 

 

$

649,288

 

 

$

625,177

 

 

$

611,542

 

 

$

598,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

11,191,958

 

 

 

11,062,729

 

 

 

11,062,729

 

 

 

10,991,074

 

 

 

11,211,274

 

Book value per share (GAAP)

 

$

60.18

 

 

$

59.57

 

 

$

57.39

 

 

$

56.53

 

 

$

54.22

 

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

 

$

59.31

 

 

$

58.69

 

 

$

56.51

 

 

$

55.64

 

 

$

53.35

 

 

_____________________________ (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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418563734/en/

Daniel F. Dougherty EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6721 IR@MCBankNY.com