Strong Quarter and Full Year Results
Underscored by Successful Execution of Strategic
Initiatives
Financial Highlights
- The net interest margin for the fourth quarter of 2024 was
3.66%, an increase of 4 basis points compared to 3.62% for the
prior linked quarter and an increase of 30 basis points compared to
3.36% for the prior year period.
- Total loans at December 31, 2024 were $6.0 billion, an increase
of $137.0 million, or 2.3%, from September 30, 2024 and $409.3
million, or 7.3%, from December 31, 2023.
- Total deposits at December 31, 2024 were $6.0 billion, an
increase of $245.7 million, or 4.3%, from December 31, 2023. The
increase in deposits was due to a $934.7 million increase spread
across most of the Bank’s various deposit verticals, partially
offset by a $689.0 million decrease in GPG deposits due to the
successful completion of the GPG wind down.
- Diluted earnings per share of $1.88 for the fourth quarter of
2024, compared to $1.08 for the prior linked quarter and $1.28 for
the prior year period.
- Return on average equity of 11.8% and return on average
tangible common equity1 of 12.0% for the fourth quarter of
2024.
- Asset quality continues to be stable. The ratio of
non-performing loans to total loans was 0.54% at December 31, 2024,
compared to 0.53% for the prior linked quarter.
- Liquidity remains strong. At December 31, 2024, cash on deposit
with the Federal Reserve Bank of New York and available secured
funding capacity totaled $2.9 billion, which represented 192% of
our estimated uninsured deposits.
- The Company and Bank are “well capitalized” under applicable
regulatory guidelines, with total risk-based capital ratios of
13.3% and 13.0%, respectively, at December 31, 2024, well above
regulatory minimums.
- Continued progress on the Company’s previously announced Modern
Banking in Motion Digital Transformation initiative.
1 Non-GAAP financial measure. See Reconciliation of Non-GAAP
Measures on page 13.
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the
holding company for Metropolitan Commercial Bank (the “Bank”),
reported net income of $21.4 million, or $1.88 per diluted common
share, for the fourth quarter of 2024 compared to $12.3 million, or
$1.08 per diluted common share, for the third quarter of 2024, and
$14.6 million, or $1.28 per diluted common share, for the fourth
quarter of 2023.
Mark DeFazio, President and Chief Executive Officer,
commented,
“I am pleased with MCB’s fourth quarter and full year
performance for 2024. Beyond our core commercial banking business,
we made meaningful progress on two major initiatives in 2024.
First, MCB reached a significant milestone and successfully exited
its 22-year old BaaS business with only a few minor operational
tasks remaining. Throughout the exit, MCB demonstrated its core
strengths by replacing the deposits associated with this business
timely and efficiently, while increasing our NIM. The other
significant initiative, our investment in a franchise-wide new
technology stack, is expected to be completed by year end 2025. We
are confident we have scaled these new technologies to support
MCB’s diversified commercial banking business for years to
come.
“While managing these initiatives, MCB advanced its sustained
growth strategy with strong profitability, continued solid asset
quality, and further solidified its presence in New York and
several other markets around the country.
“Our solid performance in the dynamic environment of 2024 sets
the stage for enhanced performance in 2025. I am particularly
optimistic, in light of the anticipated improvement in the
operating environment and the positive economic outlook. By
maintaining our core discipline and implementing other
opportunistic growth initiatives, we plan to continue to enhance
our strong industry position in 2025 and beyond.”
Balance Sheet
Total cash and cash equivalents were $200.3 million at December
31, 2024, a decrease of $118.2 million, or 37.1%, from September
30, 2024 and a decrease of $69.2 million, or 25.7%, from December
31, 2023. The decrease from September 30, 2024, primarily reflects
an increase in the loan book of $137.0 million and a $286.9 million
decrease in deposits, partially offset by a $200.0 million increase
in wholesale funding. The decrease from December 31, 2023,
primarily reflects an increase in the loan book of $409.3 million
and a $89.0 million decrease in wholesale funding, partially offset
by $245.7 million increase in deposits and $87.6 million decrease
in receivables from the GPG wind down.
Total loans, net of deferred fees and unamortized costs, were
$6.0 billion at December 31, 2024, an increase of $137.0 million,
or 2.3%, from September 30, 2024, and an increase of $409.3
million, or 7.3%, from December 31, 2023. Loan production was
$309.0 million for the fourth quarter of 2024 compared to $460.6
million for the prior linked quarter and $342.5 million for the
prior year period. The increase in total loans from September 30,
2024 was due primarily to an increase of $144.7 million in
commercial real estate (“CRE”) loans (including owner-occupied),
partially offset by a decrease of $23.5 million in commercial and
industrial loans. The increase in total loans from December 31,
2023 was due primarily to an increase of $459.7 million in CRE
loans (including owner-occupied), partially offset by a $90.8
million decrease in multi-family loans.
Total deposits were $6.0 billion at December 31, 2024, a
decrease of $286.9 million, or 4.6%, from September 30, 2024, and
an increase of $245.7 million, or 4.3%, from December 31, 2023. The
decrease from September 30, 2024 was due primarily to a $678.3
million decrease in GPG deposits, partially offset by a $391.4
million increase spread across most of the Company’s various
deposit verticals. The increase in deposits from December 31, 2023,
was due to a $934.7 million increase spread across most of the
Bank’s various deposit verticals, partially offset by a $689.0
million decrease in GPG deposits due to the successful completion
of the GPG wind down.
At December 31, 2024, cash on deposit with the Federal Reserve
Bank of New York and available secured funding capacity totaled
$2.9 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 346.1% of total risk-based capital at December
31, 2024, compared to 353.3% and 368.1% at September 30, 2024 and
December 31, 2023, respectively.
Income Statement
Financial Highlights
Three months ended
Year ended
Dec. 31,
Sept. 30,
Dec. 31,
Dec. 31,
Dec. 31,
(dollars in thousands, except per share
data)
2024
2024
2023
2024
2023
Total revenues(1)
$
71,004
$
71,518
$
63,555
$
276,913
$
250,739
Net income (loss)
$
21,418
$
12,266
$
14,568
66,686
77,268
Diluted earnings (loss) per common
share
$
1.88
$
1.08
$
1.28
5.93
6.91
Return on average assets(2)
1.16
%
0.67
%
0.84
%
0.91
%
1.19
%
Return on average equity(2)
11.8
%
6.9
%
9.0
%
9.6
%
12.4
%
Return on average tangible common
equity(2), (3), (4)
12.0
%
7.0
%
9.1
%
9.7
%
12.6
%
____________________
(1)
Total revenues equal net interest income
plus non-interest income.
(2)
For periods less than a year, ratios are
annualized.
(3)
Non-GAAP financial measure. See
Reconciliation of Non-GAAP Measures on page 13.
(4)
Net income divided by average tangible
common equity.
Net Interest Income
Net interest income for the fourth quarter of 2024 was $66.6
million compared to $65.2 million for the prior linked quarter and
$57.0 million for the prior year period. The $1.4 million increase
from the prior linked quarter was due primarily to an increase in
the average balance of loans and a decrease in the cost of funds,
partially offset by a decrease in loan yields primarily related to
reductions in short-term interest rates that affect floating rate
loans, a decline in the average balance of overnight deposits, and
an increase in the average balance of interest earning liabilities,
including $80.3 million in wholesale funding. The $9.6 million
increase from the prior year period was due primarily to an
increase in the average balance of loans, an increase in loan
yields, and a decrease in the average balance of borrowed funds,
partially offset by an increase in the average balance of
deposits.
Net interest income for the year 2024 was $253.1 million
compared to $222.8 million for the prior year. The $30.2 million
increase from the prior year was due primarily to an increase in
the average balance of loans, an increase in loan yields, partially
offset by an increase in the cost of funds and a shift from
non-interest bearing deposits to interest bearing funding primarily
related to the GPG exit.
Net Interest Margin
Net interest margin for the fourth quarter of 2024 was 3.66%
compared to 3.62% and 3.36% 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 a decrease in the cost of funds,
partially offset by a decrease in loan yields, a decrease in the
average balance of overnight deposits, and an increase in the
average balance of interest earning liabilities. The 30 basis point
increase from the prior year period was due primarily to an
increase in the average balance of loans, an increase in loan
yields, and a decrease in the average balance of borrowed funds,
partially offset by an increase in the average balance of
deposits.
Net interest margin for the year 2024 was 3.53% compared to
3.49% for the prior year, primarily driven by an increase in the
average balance of loans and the yield on loans, partially offset
by an increase in the average balance of deposits and the cost of
funds.
The total cost of funds for the fourth quarter of 2024 was 325
basis points compared to 339 basis points and 314 basis points for
the prior linked quarter and prior year, respectively. The decrease
from the prior linked quarter reflects the recent reduction in
short-term interest rates, partially offset by the runoff of lower
cost GPG deposits replaced with market rate deposits and wholesale
borrowings. The increase from the prior year reflects the
relatively high short-term interest rates in the earlier part of
the year, the intense competition for deposits, and a shift from
non-interest bearing deposits to interest bearing funding primarily
related to the GPG exit.
The total cost of funds for the year 2024 was 332 basis points
compared to 265 basis points for the prior year. The increase
reflects the relatively high short-term interest rates in the
earlier part of the year, the intense competition for deposits, and
a shift from non-interest bearing deposits to interest bearing
funding primarily related to the GPG exit.
Non-Interest Income
Non-interest income was $4.4 million for the fourth quarter of
2024, a decrease of $1.9 million from the prior linked quarter and
a decrease of $2.2 million from the prior year period. The decrease
from the prior linked quarter was driven primarily by a decline in
GPG revenue as that business was wound down. 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 income was $23.8 million for the year 2024, a
decrease of $4.1 million from the prior year. The decrease from the
prior year was driven primarily by lower GPG revenue as that
business was wound down, partially offset by an increase in service
charges on deposit accounts.
Non-Interest Expense
Non-interest expense was $38.2 million for the fourth quarter of
2024, a decrease of $13.1 million from the prior linked quarter and
an increase of $1.0 million from the prior year period. The
decrease from the prior linked quarter was due primarily to the
pre-tax $10.0 million regulatory reserve recorded in the third
quarter of 2024, which was recorded in connection with a matter
involving the Attorney General of the State of Washington that was
resolved in the fourth quarter of 2024. The $1.0 million increase
from the prior year period was due primarily to a $1.4 million
increase in compensation and benefits related to the increase in
the number of employees and a $1.0 million increase in technology
costs related to the digital transformation initiative, partially
offset by a $1.3 million decrease in professional fees.
Non-interest expense was $173.6 million for the year 2024, an
increase of $42.0 million from the prior year. The increase from
the prior year was due primarily to the pre-tax $10.0 million
regulatory reserve recorded in the third quarter of 2024, the $5.0
million reversal of the reserve in 2023, a $10.9 million increase
in compensation and benefits related to the increase in the number
and mix of employees, as well as severance related expenses, and a
$6.1 million increase in technology costs related to the digital
transformation initiatives.
Income Tax Expense
The effective tax rate for the year 2024 was 31.3% compared to
27.7% for the prior year. The effective tax rate for the prior year
reflects a discrete tax item related to the exercise of stock
options in the third quarter of 2023 and the reversal of the
regulatory settlement reserve in that period.
Asset Quality
Credit quality remains stable. The ratio of non-performing loans
to total loans was 0.54% at December 31, 2024 and 0.53% at
September 30, 2024. The ratio of non-performing loans to total
loans was 0.92% at December 31, 2023.
The allowance for credit losses was $63.3 million at December
31, 2024, an increase of $780,000 from September 30, 2024, and $5.3
million from December 31, 2023. The increase from September 30,
2024 primarily reflects loan growth. The increase from December 31,
2023 primarily reflects loan growth and 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, January 24, 2025, to discuss the results. To access the
event by telephone, please dial 800-579-2543 (US), 785-424-1789
(INTL), and provide conference ID: MCBQ424 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 2025. The Bank was ranked by
Independent Community Bankers of America among the top ten
successful loan producers for 2024 by loan category and asset size
for commercial banks with more than $1 billion in assets. Kroll
affirmed a BBB+ (investment grade) deposit rating on January 25,
2024. For the fourth time, MCB has earned a place in the Piper
Sandler Bank Sm-All Stars Class of 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
Federal Reserve and other regulatory bodies; an unexpected
deterioration in the performance of our loan or securities
portfolios; changes in liquidity, including the size and
composition of our deposit portfolio and the percentage of
uninsured deposits in the portfolio; unexpected increases in our
expenses; different than anticipated growth and our ability to
manage our growth; global pandemics, or localized epidemics, could
adversely affect the Company’s financial condition and results of
operations; potential recessionary conditions, including the
related effects on our borrowers and on our financial condition and
results of operations; an unanticipated loss of key personnel or
existing clients, or an inability to attract key employees;
increases in competitive pressures among financial institutions or
from non-financial institutions which may result in unanticipated
changes in our loan or deposit rates; unanticipated increases in
FDIC insurance premiums or future assessments; legislative, tax or
regulatory changes or actions, which may adversely affect the
Company’s business; impacts related to or resulting from regional
and community bank failures and stresses to regional banks; changes
in deposit flows, funding sources or loan demand, which may
adversely affect the Company’s business; changes in accounting
principles, policies or guidelines may cause the Company’s
financial condition or results of operation to be reported or
perceived differently; general economic conditions, including
unemployment rates, either nationally or locally in some or all of
the areas in which the Company does business, or conditions in the
securities markets or the banking industry being less favorable
than currently anticipated; inflation, which may lead to higher
operating costs; declines in real estate values in the Company’s
market area, which may adversely affect our loan production; an
unexpected adverse financial, regulatory, legal or bankruptcy event
experienced by our non-bank financial service clients; system
failures or cybersecurity breaches of our information technology
infrastructure and/or confidential information or those of the
Company’s third-party service providers or those of our non-bank
financial service clients for which we provide global payments
infrastructure; emerging issues related to the development and use
of artificial intelligence that could give rise to legal or
regulatory action, damage our reputation or otherwise materially
harm our business or clients; failure to maintain current
technologies or technological changes that may be more difficult or
expensive to implement than anticipated, and failure to
successfully implement future information technology enhancements;
the costs, including the possible incurrence of 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
to which we or any of our subsidiaries are a party, and which may
adversely affect our results; the current or anticipated impact of
military conflict, terrorism or other geopolitical events; the
successful implementation or consummation of new business
initiatives, which may be more difficult or expensive than
anticipated; the timely and efficient development of new products
and services offered by the Company or its strategic partners, as
well as risks (including reputational and litigation) attendant
thereto, and the perceived overall value and acceptance of these
products and services by clients; changes in consumer spending,
borrowing or savings habits; the risks associated with adverse
changes to credit quality; an unexpected failure to successfully
manage our credit risk and the sufficiency of our allowance for
credit losses; credit and other risks from borrower and depositor
concentrations (e.g., by geographic area and by industry);
difficulties associated with achieving or predicting expected
future financial results; and the potential impact on the Company’s
operations and clients resulting from natural or man-made
disasters, wars, acts of terrorism, cyberattacks and pandemics, 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)
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
(in thousands)
2024
2024
2024
2024
2023
Assets
Cash and due from banks
$
13,078
$
16,674
$
18,152
$
34,037
$
31,973
Overnight deposits
187,190
301,804
226,510
500,366
237,492
Total cash and cash equivalents
200,268
318,478
244,662
534,403
269,465
Investment securities
available-for-sale
482,085
510,966
504,748
497,789
461,207
Investment securities held-to-maturity
428,557
438,445
449,368
460,249
468,860
Equity investment securities, at fair
value
5,109
5,213
2,122
2,115
2,123
Total securities
915,751
954,624
956,238
960,153
932,190
Other investments
30,636
26,586
26,584
32,669
38,966
Loans, net of deferred fees and
unamortized costs
6,034,076
5,897,119
5,838,892
5,719,218
5,624,797
Allowance for credit losses
(63,273
)
(62,493
)
(60,008
)
(58,538
)
(57,965
)
Net loans
5,970,803
5,834,626
5,778,884
5,660,680
5,566,832
Receivables from global payments business,
net
—
96,048
90,626
93,852
87,648
Other assets
183,291
172,996
168,597
171,614
172,571
Total assets
$
7,300,749
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
Liabilities and Stockholders'
Equity
Deposits
Non-interest-bearing demand deposits
$
1,334,054
$
1,780,305
$
1,883,176
$
1,927,629
$
1,837,874
Interest-bearing deposits
4,648,919
4,489,602
4,286,486
4,309,913
3,899,418
Total deposits
5,982,973
6,269,907
6,169,662
6,237,542
5,737,292
Federal funds purchased
210,000
—
—
—
99,000
Federal Home Loan Bank of New York
advances
240,000
150,000
150,000
300,000
440,000
Trust preferred securities
20,620
20,620
20,620
20,620
20,620
Secured and other borrowings
7,441
107,478
107,514
107,549
7,585
Prepaid third-party debit cardholder
balances
—
21,970
22,631
18,685
10,178
Other liabilities
109,888
118,192
102,760
95,434
93,976
Total liabilities
6,570,922
6,688,167
6,573,187
6,779,830
6,408,651
Common stock
112
112
112
112
111
Additional paid in capital
400,188
397,963
395,520
393,341
395,871
Retained earnings
382,661
361,243
348,977
332,178
315,975
Accumulated other comprehensive gain
(loss), net of tax effect
(53,134
)
(44,127
)
(52,205
)
(52,090
)
(52,936
)
Total stockholders’ equity
729,827
715,191
692,404
673,541
659,021
Total liabilities and stockholders’
equity
$
7,300,749
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
Consolidated Statement of Income
(unaudited)
Three months ended
Year ended
Dec. 31,
Sept. 30,
Dec. 31,
Dec. 31,
Dec. 31,
(dollars in thousands, except per share
data)
2024
2024
2023
2024
2023
Total interest income
$
119,829
$
120,454
$
105,267
$
468,379
$
375,405
Total interest expense
53,226
55,221
48,273
215,295
152,569
Net interest income
66,603
65,233
56,994
253,084
222,836
Provision for credit losses
1,500
2,691
6,541
6,257
12,283
Net interest income after provision for
credit losses
65,103
62,542
50,453
246,827
210,553
Non-interest income
Service charges on deposit accounts
2,177
2,135
1,671
8,269
6,071
Global Payments Group revenue
2,100
3,500
4,177
13,355
19,005
Other income
124
650
713
2,205
2,827
Total non-interest income
4,401
6,285
6,561
23,829
27,903
Non-interest expense
Compensation and benefits
19,615
19,885
18,210
77,859
66,961
Bank premises and equipment
2,520
2,471
2,317
9,656
9,344
Professional fees
3,687
4,745
5,031
21,320
18,064
Technology costs
1,989
2,969
974
11,012
4,940
Licensing fees
3,217
3,411
3,638
13,084
12,818
FDIC assessments
2,980
2,950
2,639
11,780
9,077
Regulatory settlement reserve
(537
)
10,000
—
9,463
(5,521
)
Other expenses
4,690
4,826
4,338
19,401
15,855
Total non-interest expense
38,161
51,257
37,147
173,575
131,538
Net income before income tax expense
31,343
17,570
19,867
97,081
106,918
Income tax expense
9,925
5,304
5,299
30,395
29,650
Net income (loss)
$
21,418
$
12,266
$
14,568
$
66,686
$
77,268
Earnings per common share:
Average common shares outstanding:
Basic
11,196,822
11,193,063
11,062,729
11,179,074
11,060,110
Diluted
11,388,163
11,312,773
11,366,463
11,255,223
11,129,900
Basic earnings (loss)
$
1.91
$
1.10
$
1.31
$
5.97
$
6.95
Diluted earnings (loss)
$
1.88
$
1.08
$
1.28
$
5.93
$
6.91
Loan Production, Asset Quality &
Regulatory Capital
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
2024
2024
2024
2024
2023
LOAN PRODUCTION (in millions)
$
309.0
$
460.6
$
290.8
$
269.6
$
342.5
ASSET QUALITY (in thousands)
Non-performing loans:
Commercial real estate
$
25,087
$
24,000
$
24,000
$
44,939
$
44,939
Commercial and industrial
6,989
6,989
6,989
6,989
6,934
One- to four- family
452
—
—
—
—
Consumer
72
—
108
145
24
Total non-performing loans
$
32,600
$
30,989
$
31,097
$
52,073
$
51,897
Non-performing loans to total loans
0.54
%
0.53
%
0.53
%
0.91
%
0.92
%
Allowance for credit losses
$
63,273
$
62,493
$
60,008
$
58,538
$
57,965
Allowance for credit losses to total
loans
1.05
%
1.06
%
1.03
%
1.02
%
1.03
%
Charge-offs
$
(106
)
$
(122
)
$
(16
)
$
(3
)
$
(946
)
Recoveries
$
120
$
2
$
—
$
2
$
—
Net charge-offs/(recoveries) to average
loans (annualized)
—
%
0.01
%
—
%
—
%
0.07
%
REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.
10.8
%
10.6
%
10.3
%
10.3
%
10.6
%
Metropolitan Commercial Bank
10.6
%
10.3
%
10.1
%
10.1
%
10.3
%
Common Equity Tier 1 Risk-Based
(CET1):
Metropolitan Bank Holding Corp.
11.9
%
11.9
%
11.7
%
11.6
%
11.5
%
Metropolitan Commercial Bank
12.0
%
11.9
%
11.8
%
11.7
%
11.5
%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.
12.3
%
12.2
%
12.1
%
11.9
%
11.8
%
Metropolitan Commercial Bank
12.0
%
11.9
%
11.8
%
11.7
%
11.5
%
Total Risk-Based:
Metropolitan Bank Holding Corp.
13.3
%
13.2
%
13.0
%
12.9
%
12.8
%
Metropolitan Commercial Bank
13.0
%
12.9
%
12.8
%
12.6
%
12.5
%
Performance Measures
Three months ended
Year ended
Dec. 31,
Sept. 30,
Dec. 31,
Dec. 31,
Dec. 31,
(dollars in thousands, except per share
data)
2024
2024
2023
2024
2023
Net income per consolidated statements of
income
$
21,418
$
12,266
$
14,568
$
66,686
$
77,268
Less: Earnings allocated to participating
securities
—
—
(78
)
—
(365
)
Net income (loss) available to common
shareholders
$
21,418
$
12,266
$
14,490
$
66,686
$
76,903
Per common share:
Basic earnings (loss)
$
1.91
$
1.10
$
1.31
$
5.97
$
6.95
Diluted earnings (loss)
$
1.88
$
1.08
$
1.28
$
5.93
$
6.91
Common shares outstanding:
Period end
11,197,625
11,194,411
11,062,729
11,197,625
11,062,729
Average fully diluted
11,388,163
11,312,773
11,366,463
11,255,223
11,129,900
Return on:(1)
Average total assets
1.16
%
0.67
%
0.84
%
0.91
%
1.19
%
Average equity
11.8
%
6.9
%
9.0
%
9.6
%
12.4
%
Average tangible common equity(2), (3)
12.0
%
7.0
%
9.1
%
9.7
%
12.6
%
Yield on average earning assets(1)
6.58
%
6.68
%
6.21
%
6.53
%
5.88
%
Total cost of deposits(1)
3.15
%
3.32
%
2.98
%
3.22
%
2.43
%
Net interest spread(1)
2.28
%
1.93
%
1.81
%
1.94
%
1.85
%
Net interest margin(1)
3.66
%
3.62
%
3.36
%
3.53
%
3.49
%
Net charge-offs as % of average
loans(1)
—
%
0.01
%
0.07
%
—
%
0.02
%
Efficiency ratio(4)
53.7
%
71.7
%
58.4
%
62.7
%
52.5
%
____________________
(1)
For periods less than a year, ratios are
annualized.
(2)
Net income divided by average tangible
common equity.
(3)
Non-GAAP financial measure. See
Reconciliation of Non-GAAP Measures on page 13.
(4)
Total non-interest expense divided by
total revenues.
Interest Margin Analysis
Three months ended
Dec. 31, 2024
Sept. 30, 2024
Dec. 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)
$
6,027,313
$
111,486
7.36
%
$
5,889,298
$
111,286
7.52
%
$
5,538,095
$
97,897
7.01
%
Available-for-sale securities
567,548
3,256
2.28
581,529
3,350
2.29
532,970
2,430
1.82
Held-to-maturity securities
434,234
2,012
1.84
444,842
2,061
1.84
474,475
2,217
1.87
Equity investments
5,477
39
2.81
3,164
23
2.89
2,401
14
2.30
Overnight deposits
180,175
2,469
5.45
231,946
3,223
5.53
139,009
1,966
5.53
Other interest-earning assets
30,255
567
7.46
26,584
511
7.65
35,718
743
8.32
Total interest-earning assets
7,245,002
119,829
6.58
7,177,363
120,454
6.68
6,722,668
105,267
6.21
Non-interest-earning assets
181,786
180,748
192,237
Allowance for credit losses
(63,536
)
(60,608
)
(53,570
)
Total assets
$
7,363,252
$
7,297,503
$
6,861,335
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
4,459,792
47,581
4.24
$
4,314,237
51,266
4.73
$
3,891,476
42,395
4.32
Certificates of deposit
116,062
1,254
4.30
41,028
471
4.57
34,179
272
3.16
Total interest-bearing deposits
4,575,854
48,835
4.25
4,355,265
51,737
4.73
3,925,655
42,667
4.31
Borrowed funds
350,892
4,391
4.98
270,633
3,484
5.12
427,250
5,606
5.25
Total interest-bearing liabilities
4,926,746
53,226
4.30
4,625,898
55,221
4.75
4,352,905
48,273
4.40
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,586,005
1,851,497
1,748,178
Other non-interest-bearing liabilities
128,995
113,666
116,995
Total liabilities
6,641,746
6,591,061
6,218,078
Stockholders' equity
721,506
706,442
643,257
Total liabilities and equity
$
7,363,252
$
7,297,503
$
6,861,335
Net interest income
$
66,603
$
65,233
$
56,994
Net interest rate spread (3)
2.28
%
1.93
%
1.81
%
Net interest margin (4)
3.66
%
3.62
%
3.36
%
Total cost of deposits (5)
3.15
%
3.32
%
2.98
%
Total cost of funds (6)
3.25
%
3.39
%
3.14
%
____________________
(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.
Year ended
Dec. 31, 2024
Dec. 31, 2023
Average
Yield /
Average
Yield /
(dollars in thousands)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Interest-earning assets:
Loans (1)
$
5,842,570
$
429,748
7.36
%
$
5,147,653
$
345,039
6.70
%
Available-for-sale securities
576,040
12,917
2.24
527,873
8,865
1.68
Held-to-maturity securities
450,048
8,369
1.86
499,379
9,608
1.92
Equity investments
3,377
92
2.73
2,381
52
2.17
Overnight deposits
269,472
15,013
5.57
176,813
9,319
5.20
Other interest-earning assets
29,386
2,240
7.62
33,061
2,522
7.63
Total interest-earning assets
7,170,893
468,379
6.53
6,387,160
375,405
5.88
Non-interest-earning assets
182,936
169,377
Allowance for credit losses
(60,384
)
(49,923
)
Total assets
$
7,293,445
$
6,506,614
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
4,298,166
$
195,695
4.55
$
3,299,427
$
127,494
3.86
Certificates of deposit
57,227
2,318
4.05
42,926
1,183
2.76
Total interest-bearing deposits
4,355,393
198,013
4.55
3,342,353
128,677
3.85
Borrowed funds
336,364
17,282
5.14
445,061
23,892
5.37
Total interest-bearing liabilities
4,691,757
215,295
4.59
3,787,414
152,569
4.03
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,788,170
1,960,469
Other non-interest-bearing liabilities
119,364
137,725
Total liabilities
6,599,291
5,885,608
Stockholders' equity
694,154
621,006
Total liabilities and equity
$
7,293,445
$
6,506,614
Net interest income
$
253,084
$
222,836
Net interest rate spread (2)
1.94
%
1.85
%
Net interest margin (3)
3.53
%
3.49
%
Total cost of deposits (4)
3.22
%
2.43
%
Total cost of funds (5)
3.32
%
2.65
%
____________________
(1)
Amount includes deferred loan fees and
non-performing loans.
(2)
Determined by subtracting the annualized
average cost of total interest-bearing liabilities from the
annualized average yield on total interest-earning assets.
(3)
Determined by dividing annualized net
interest income by total average interest-earning assets.
(4)
Determined by dividing annualized interest
expense on deposits by total average interest-bearing and
non-interest bearing deposits.
(5)
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
Year ended
(dollars in thousands,
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Dec. 31,
Dec. 31,
except per share data)
2024
2024
2024
2024
2023
2024
2023
Average assets
$
7,363,252
$
7,297,503
$
7,322,480
$
7,185,768
$
6,861,335
$
7,293,445
$
6,506,614
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Average tangible assets (non-GAAP)
$
7,353,519
$
7,287,770
$
7,312,747
$
7,176,035
$
6,851,602
$
7,283,712
$
6,496,881
Average common equity
$
721,506
$
706,442
$
680,064
$
667,009
$
643,257
$
694,154
$
621,006
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Average tangible common equity
(non-GAAP)
$
711,773
$
696,709
$
670,331
$
657,276
$
633,524
$
684,421
$
611,273
Total assets
$
7,300,749
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
$
7,300,749
$
7,067,672
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Tangible assets (non-GAAP)
$
7,291,016
$
7,393,625
$
7,255,858
$
7,443,638
$
7,057,939
$
7,291,016
$
7,057,939
Common equity
$
729,827
$
715,191
$
692,404
$
673,541
$
659,021
$
729,827
$
659,021
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Tangible common equity (book value)
(non-GAAP)
$
720,094
$
705,458
$
682,671
$
663,808
$
649,288
$
720,094
$
649,288
Common shares outstanding
11,197,625
11,194,411
11,192,936
11,191,958
11,062,729
11,197,625
11,062,729
Book value per share (GAAP)
$
65.18
$
63.89
$
61.86
$
60.18
$
59.57
$
65.18
$
59.57
Tangible book value per share (non-GAAP)
(1)
$
64.31
$
63.02
$
60.99
$
59.31
$
58.69
$
64.31
$
58.69
____________________
(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/20250123517669/en/
Daniel F. Dougherty EVP & Chief Financial Officer
Metropolitan Commercial Bank (212) 365-6721 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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Metropolitan Bank (NYSE:MCB)
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