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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Metropolitan Bank Holding Corp | NYSE:MCB | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| -2.35 | -3.49% | 64.94 | 68.43 | 64.94 | 68.10 | 57,237 | 22:00:00 |
From Sep 2024 to Nov 2024
Strong Operating Results Underscored By Increased Net Interest Margin
Financial Highlights
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $12.3 million, or $1.08 per diluted common share, for the third quarter of 2024 compared to $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024, and $22.1 million, or $1.97 per diluted common share, for the third quarter of 2023.
Mark DeFazio, President and Chief Executive Officer, commented,
“The commercial bank continues to report strong underlying business fundamentals and financial performance. Our net interest income increased 6% quarter over quarter and 12% year to date supported by continued strength and growth in our net interest margin. We continue to deliver on deposit growth despite the challenging operating environment. Importantly, our year to date results highlight our ability to manage in a dynamic environment and we expect our financial results to benefit from the recent reduction in the Fed Funds target rate and any additional monetary policy easing in the future.
“We remain laser focused on the exit from the GPG vertical and continue to make investments in the buildout of our risk management framework and personnel. We have reserved $10 million to resolve an investigation with a state agency connected to a fintech client we last worked with in 2020. With matters such as this behind us, as well as a full exit from GPG, we believe that the Bank is well positioned to deliver financial outperformance relative to our peers.”
Balance Sheet
Total cash and cash equivalents were $318.5 million at September 30, 2024, an increase of $73.8 million, or 30.2%, from June 30, 2024 and an increase of $141.1 million, or 79.6%, from September 30, 2023. The increase from June 30, 2024, primarily reflects a $100.2 million increase in deposits. The increase from September 30, 2023, primarily reflects a $748.3 million increase in deposits, partially offset by an increase in the loan book of $542.6 million and a $105.1 million decrease in wholesale funding.
Total loans, net of deferred fees and unamortized costs, were $5.9 billion at September 30, 2024, an increase of $58.2 million, or 1.0%, from June 30, 2024, and an increase of $542.6 million, or 10.1%, from September 30, 2023. Loan production was $460.6 million for the third quarter of 2024 compared to $290.8 million for the prior linked quarter and $333.5 million for the prior year period. The increase in total loans from June 30, 2024 was due primarily to an increase of $116.7 million in commercial real estate (“CRE”) loans (including owner-occupied), partially offset by a decrease of $51.0 million of multi-family loans. The increase in total loans from September 30, 2023 was due primarily to an increase of $460.0 million in CRE loans (including owner-occupied) and $92.9 million in commercial and industrial loans.
Total deposits were $6.3 billion at September 30, 2024, an increase of $100.2 million, or 1.6%, from June 30, 2024, and an increase of $748.3 million, or 13.6%, from September 30, 2023. The increase from June 30, 2024 was due primarily to an increase of $133.4 million in property manager deposits and $105.6 million in retail deposits, partially offset by a $122.0 million decrease in GPG deposits. The increase in deposits from September 30, 2023, was due to broad based increases across most of the Bank’s various deposit verticals.
At September 30, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.1 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 353.3% of total risk-based capital at September 30, 2024, compared to 358.4% and 374.8% at June 30, 2024 and September 30, 2023, respectively.
Income Statement
Financial Highlights
Three months ended
Nine months ended
Sept. 30,
Jun. 30,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in thousands, except per share data)
2024
2024
2023
2024
2023
Total revenues(1)
$
71,518
$
67,678
$
60,070
$
205,909
$
187,184
Net income (loss)
$
12,266
$
16,799
$
22,063
45,268
62,700
Diluted earnings (loss) per common share
$
1.08
$
1.50
$
1.97
4.04
5.61
Return on average assets(2)
0.67
%
0.92
%
1.33
%
0.83
%
1.31
%
Return on average equity(2)
6.9
%
9.9
%
13.9
%
8.8
%
13.7
%
Return on average tangible common equity(2), (3), (4)
7.0
%
10.1
%
14.1
%
9.0
%
13.9
%
____________________
(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 13.
(4)
Net income divided by average tangible common equity.
Net Interest Income
Net interest income for the third quarter of 2024 was $65.2 million compared to $61.5 million for the prior linked quarter and $53.6 million for the prior year period. The $3.7 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans and an increase in the yield on loans, partially offset by a decrease in the average balance of overnight deposits and a modest increase in the cost of funds. The $11.7 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 and an increase in the cost of funds.
Net Interest Margin
Net interest margin for the third quarter of 2024 was 3.62% compared to 3.44% and 3.27% for the prior linked quarter and prior year period, respectively. The 18 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 in combination with elevated prepayment penalties and deferred fee recognition as a result of an increased level of loan payoffs, partially offset by an increase in the cost of funds. The 35 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 and an increase in the cost of funds.
The total cost of funds for the third quarter of 2024 was 339 basis points compared to 334 basis points and 303 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, as well as the runoff of lower cost GPG deposits replaced with market rate 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 $6.3 million for the third quarter of 2024, an increase of $146,000 from the prior linked quarter and a decrease of $228,000 from the prior year period. The increase from the prior linked quarter was driven primarily by an increase in wire and letter of credit fees, partially offset by the continuing decline in GPG revenue as that business is 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 Expense
Non-interest expense was $51.3 million for the third quarter of 2024, an increase of $9.0 million from the prior linked quarter and an increase of $20.3 million from the prior year period. The $9.0 million increase from the prior linked quarter was due primarily to the pre-tax $10 million regulatory reserve and a $1.4 million increase in compensation and benefits, partially offset by a $2.2 million decline in professional fees. The $20.3 million increase from the prior year period was due primarily to the pre-tax $10 million regulatory reserve, $2.7 million increase in compensation and benefits related to the increase in number of employees, and $1.8 million increase in technology costs related to the digital transformation initiative.
Income Tax Expense
The effective tax rate for the third quarter of 2024 was 30.2% compared to 29.7% for the prior linked quarter and 22.2% for the prior year period. The effective tax rate for the prior year period 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 0.53% at September 30, 2024 and June 30, 2024. The ratio of non-performing loans to total loans was 0.58% at September 30, 2023.
The allowance for credit losses was $62.5 million at September 30, 2024, an increase of $2.5 million from June 30, 2024, which reflects loan growth production and a modest increase in the duration of the loan book.
Conference Call
The Company will conduct a conference call at 9:00 a.m. ET on Friday, October 18, 2024, to discuss the results. To access the event by telephone, please dial 800-445-7795 (US), 785-424-1699 (INTL), and provide conference ID: MCBQ324 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 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 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)
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
(in thousands)
2024
2024
2024
2023
2023
Assets
Cash and due from banks
$
16,674
$
18,152
$
34,037
$
31,973
$
36,438
Overnight deposits
301,804
226,510
500,366
237,492
140,929
Total cash and cash equivalents
318,478
244,662
534,403
269,465
177,367
Investment securities available-for-sale
510,966
504,748
497,789
461,207
429,850
Investment securities held-to-maturity
438,445
449,368
460,249
468,860
478,886
Equity investment securities, at fair value
5,213
2,122
2,115
2,123
2,015
Total securities
954,624
956,238
960,153
932,190
910,751
Other investments
26,586
26,584
32,669
38,966
35,015
Loans, net of deferred fees and unamortized costs
5,897,119
5,838,892
5,719,218
5,624,797
5,354,487
Allowance for credit losses
(62,493
)
(60,008
)
(58,538
)
(57,965
)
(52,298
)
Net loans
5,834,626
5,778,884
5,660,680
5,566,832
5,302,189
Receivables from global payments business, net
96,048
90,626
93,852
87,648
79,892
Other assets
172,996
168,597
171,614
172,571
178,145
Total assets
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
$
6,683,359
Liabilities and Stockholders' Equity
Deposits
Non-interest-bearing demand deposits
$
1,780,305
$
1,883,176
$
1,927,629
$
1,837,874
$
1,746,626
Interest-bearing deposits
4,489,602
4,286,486
4,309,913
3,899,418
3,774,963
Total deposits
6,269,907
6,169,662
6,237,542
5,737,292
5,521,589
Federal funds purchased
—
—
—
99,000
—
Federal Home Loan Bank of New York advances
150,000
150,000
300,000
440,000
355,000
Trust preferred securities
20,620
20,620
20,620
20,620
20,620
Secured and other borrowings
107,478
107,514
107,549
7,585
7,621
Prepaid third-party debit cardholder balances
21,970
22,631
18,685
10,178
10,297
Other liabilities
118,192
102,760
95,434
93,976
133,322
Total liabilities
6,688,167
6,573,187
6,779,830
6,408,651
6,048,449
Common stock
112
112
112
111
110
Additional paid in capital
397,963
395,520
393,341
395,871
393,544
Retained earnings
361,243
348,977
332,178
315,975
301,407
Accumulated other comprehensive gain (loss), net of tax effect
(44,127
)
(52,205
)
(52,090
)
(52,936
)
(60,151
)
Total stockholders’ equity
715,191
692,404
673,541
659,021
634,910
Total liabilities and stockholders’ equity
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
$
6,683,359
Consolidated Statement of Income (unaudited)
Three months ended
Nine months ended
Sept. 30,
Jun. 30,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in thousands, except per share data)
2024
2024
2023
2024
2023
Total interest income
$
120,454
$
115,761
$
97,897
$
348,550
$
270,138
Total interest expense
55,221
54,222
44,340
162,069
104,296
Net interest income
65,233
61,539
53,557
186,481
165,842
Provision for credit losses
2,691
1,538
791
4,757
5,742
Net interest income after provision for credit losses
62,542
60,001
52,766
181,724
160,100
Non-interest income
Service charges on deposit accounts
2,135
2,094
1,463
6,092
4,400
Global Payments Group revenue
3,500
3,686
4,247
11,255
14,828
Other income
650
359
803
2,081
2,114
Total non-interest income
6,285
6,139
6,513
19,428
21,342
Non-interest expense
Compensation and benefits
19,885
18,532
17,208
58,244
48,751
Bank premises and equipment
2,471
2,322
2,396
7,136
7,027
Professional fees
4,745
6,916
3,873
17,633
13,033
Technology costs
2,969
3,043
1,171
9,023
3,966
Licensing fees
3,411
3,180
3,504
9,867
9,180
FDIC assessments
2,950
2,925
1,984
8,800
6,438
Regulatory settlement reserve
10,000
—
(3,021
)
10,000
(5,521
)
Other expenses
4,826
5,339
3,809
14,711
11,517
Total non-interest expense
51,257
42,257
30,924
135,414
94,391
Net income before income tax expense
17,570
23,883
28,355
65,738
87,051
Income tax expense
5,304
7,084
6,292
20,470
24,351
Net income (loss)
$
12,266
$
16,799
$
22,063
$
45,268
$
62,700
Earnings per common share:
Average common shares outstanding:
Basic
11,193,063
11,192,936
11,039,363
11,173,214
11,060,051
Diluted
11,312,773
11,199,736
11,136,873
11,208,471
11,123,348
Basic earnings (loss)
$
1.10
$
1.50
$
1.99
$
4.05
$
5.64
Diluted earnings (loss)
$
1.08
$
1.50
$
1.97
$
4.04
$
5.61
Loan Production, Asset Quality & Regulatory Capital
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
2024
2024
2024
2023
2023
LOAN PRODUCTION (in millions)
$
460.6
$
290.8
$
269.6
$
342.5
$
333.5
ASSET QUALITY (in thousands)
Non-accrual loans:
Commercial real estate
$
24,000
$
24,000
$
44,939
$
44,939
$
24,000
Commercial and industrial
6,989
6,989
6,989
6,934
6,934
Consumer
—
—
—
24
24
Total non-accrual loans
$
30,989
$
30,989
$
51,928
$
51,897
$
30,958
Non-accrual loans to total loans
0.53
%
0.53
%
0.91
%
0.92
%
0.58
%
Allowance for credit losses
$
62,493
$
60,008
$
58,538
$
57,965
$
52,298
Allowance for credit losses to total loans
1.06
%
1.03
%
1.02
%
1.03
%
0.98
%
Charge-offs
$
(122
)
$
(16
)
$
(3
)
$
(946
)
$
(129
)
Recoveries
$
2
$
—
$
2
$
—
$
—
Net charge-offs/(recoveries) to average loans (annualized)
0.01
%
—
%
—
%
0.07
%
0.01
%
REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.
10.6
%
10.3
%
10.3
%
10.6
%
10.7
%
Metropolitan Commercial Bank
10.3
%
10.1
%
10.1
%
10.3
%
10.5
%
Common Equity Tier 1 Risk-Based (CET1):
Metropolitan Bank Holding Corp.
11.9
%
11.7
%
11.6
%
11.5
%
11.8
%
Metropolitan Commercial Bank
11.9
%
11.8
%
11.7
%
11.5
%
11.9
%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.
12.2
%
12.1
%
11.9
%
11.8
%
12.2
%
Metropolitan Commercial Bank
11.9
%
11.8
%
11.7
%
11.5
%
11.9
%
Total Risk-Based:
Metropolitan Bank Holding Corp.
13.2
%
13.0
%
12.9
%
12.8
%
13.1
%
Metropolitan Commercial Bank
12.9
%
12.8
%
12.6
%
12.5
%
12.8
%
Performance Measures
Three months ended
Nine months ended
Sept. 30,
Jun. 30,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in thousands, except per share data)
2024
2024
2023
2024
2023
Net income per consolidated statements of income
$
12,266
$
16,799
$
22,063
$
45,268
$
62,700
Less: Earnings allocated to participating securities
—
—
(118
)
—
(285
)Net income (loss) available to common shareholders
$
12,266
$
16,799
$
21,945
$
45,268
$
62,415
Per common share:
Basic earnings (loss)
$
1.10
$
1.50
$
1.99
$
4.05
$
5.64
Diluted earnings (loss)
$
1.08
$
1.50
$
1.97
$
4.04
$
5.61
Common shares outstanding:
Period end
11,194,411
11,192,936
11,062,729
11,194,411
11,062,729
Average fully diluted
11,312,773
11,199,736
11,136,873
11,208,471
11,123,348
Return on:(1)
Average total assets
0.67
%
0.92
%
1.33
%
0.83
%
1.31
%
Average equity
6.9
%
9.9
%
13.9
%
8.8
%
13.7
%
Average tangible common equity(2), (3)
7.0
%
10.1
%
14.1
%
9.0
%
13.9
%
Yield on average earning assets(1)
6.68
%
6.47
%
5.99
%
6.52
%
5.75
%
Total cost of deposits(1)
3.32
%
3.26
%
2.74
%
3.25
%
2.22
%
Net interest spread(1)
1.93
%
1.77
%
1.67
%
1.82
%
1.87
%
Net interest margin(1)
3.62
%
3.44
%
3.27
%
3.49
%
3.53
%
Net charge-offs as % of average loans(1)
0.01
%
—
%
0.01
%
—
%
0.01
%
Efficiency ratio(4)
71.7
%
62.4
%
51.5
%
65.8
%
50.4
%
____________________
(1)
Annualized
(2)
Net income divided by average tangible common equity.
(3)
Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.
(4)
Total non-interest expense divided by total revenues.
Interest Margin Analysis
Three months ended
Sept. 30, 2024
Jun. 30, 2024
Sept. 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)
$
5,889,298
$
111,286
7.52
%
$
5,754,283
$
104,594
7.31
%
$
5,283,114
$
90,666
6.80
%
Available-for-sale securities
581,529
3,350
2.29
589,825
3,353
2.29
527,673
2,261
1.71
Held-to-maturity securities
444,842
2,061
1.84
456,078
2,124
1.87
497,682
2,412
1.94
Equity investments
3,164
23
2.89
2,431
16
2.59
2,387
13
2.20
Overnight deposits
231,946
3,223
5.53
369,169
5,167
5.63
124,211
1,783
5.62
Other interest-earning assets
26,584
511
7.65
27,301
506
7.45
36,952
762
8.24
Total interest-earning assets
7,177,363
120,454
6.68
7,199,087
115,761
6.47
6,472,019
97,897
5.99
Non-interest-earning assets
180,748
182,234
170,195
Allowance for credit losses
(60,608
)
(58,841
)
(52,357
)
Total assets
$
7,297,503
$
7,322,480
$
6,589,857
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
4,314,237
51,266
4.73
$
4,319,340
50,236
4.68
$
3,465,347
35,969
4.12
Certificates of deposit
41,028
471
4.57
37,084
318
3.45
38,937
265
2.70
Total interest-bearing deposits
4,355,265
51,737
4.73
4,356,424
50,554
4.67
3,504,284
36,234
4.10
Borrowed funds
270,633
3,484
5.12
287,104
3,667
5.14
572,456
8,106
5.66
Total interest-bearing liabilities
4,625,898
55,221
4.75
4,643,528
54,222
4.70
4,076,740
44,340
4.32
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,851,497
1,879,213
1,734,956
Other non-interest-bearing liabilities
113,666
119,675
146,956
Total liabilities
6,591,061
6,642,416
5,958,652
Stockholders' equity
706,442
680,064
631,205
Total liabilities and equity
$
7,297,503
$
7,322,480
$
6,589,857
Net interest income
$
65,233
$
61,539
$
53,557
Net interest rate spread (3)
1.93
%
1.77
%
1.67
%
Net interest margin (4)
3.62
%
3.44
%
3.27
%
Total cost of deposits (5)
3.32
%
3.26
%
2.74
%
Total cost of funds (6)
3.39
%
3.34
%
3.03
%
____________________
(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.
Nine months ended
Sept. 30, 2024
Sept. 30, 2023
Average
Yield /
Average
Yield /
(dollars in thousands)
Balance
Interest
Rate (1)
Balance
Interest
Rate (1)
Assets:
Interest-earning assets:
Loans (2)
$
5,780,539
$
318,262
7.35
%
$
5,016,075
$
247,142
6.58
%
Available-for-sale securities
578,891
9,660
2.23
526,156
6,435
1.63
Held-to-maturity securities
455,358
6,357
1.86
507,771
7,391
1.94
Equity investments
2,672
54
2.67
2,375
38
2.12
Overnight deposits
299,455
12,544
5.60
189,552
7,353
5.12
Other interest-earning assets
29,095
1,673
7.68
32,166
1,779
7.37
Total interest-earning assets
7,146,010
348,550
6.52
6,274,095
270,138
5.75
Non-interest-earning assets
182,738
161,592
Allowance for credit losses
(59,326
)
(48,693
)
Total assets
$
7,269,422
$
6,386,994
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
4,243,887
$
148,114
4.66
$
3,099,908
$
85,099
3.67
Certificates of deposit
37,472
1,064
3.79
45,874
911
2.66
Total interest-bearing deposits
4,281,359
149,178
4.65
3,145,782
86,010
3.66
Borrowed funds
331,486
12,891
5.19
451,063
18,286
5.41
Total interest-bearing liabilities
4,612,845
162,069
4.69
3,596,845
104,296
3.88
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,856,061
2,032,011
Other non-interest-bearing liabilities
115,199
144,712
Total liabilities
6,584,105
5,773,568
Stockholders' equity
685,317
613,426
Total liabilities and equity
$
7,269,422
$
6,386,994
Net interest income
$
186,481
$
165,842
Net interest rate spread (3)
1.82
%
1.87
%
Net interest margin (4)
3.49
%
3.53
%
Total cost of deposits (5)
3.25
%
2.22
%
Total cost of funds (6)
3.35
%
2.48
%
____________________
(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
Nine months ended
(dollars in thousands,
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
except per share data)
2024
2024
2024
2023
2023
2024
2023
Average assets
$
7,297,503
$
7,322,480
$
7,185,768
$
6,861,335
$
6,589,857
$
7,269,422
$
6,386,994
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Average tangible assets (non-GAAP)
$
7,287,770
$
7,312,747
$
7,176,035
$
6,851,602
$
6,580,124
$
7,259,689
$
6,377,261
Average common equity
$
706,442
$
680,064
$
667,009
$
643,257
$
631,205
$
685,317
$
613,426
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Average tangible common equity (non-GAAP)
$
696,709
$
670,331
$
657,276
$
633,524
$
621,472
$
675,584
$
603,693
Total assets
$
7,403,358
$
7,265,591
$
7,453,371
$
7,067,672
$
6,683,359
$
7,403,358
$
6,683,359
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Tangible assets (non-GAAP)
$
7,393,625
$
7,255,858
$
7,443,638
$
7,057,939
$
6,673,626
$
7,393,625
$
6,673,626
Common equity
$
715,191
$
692,404
$
673,541
$
659,021
$
634,910
$
715,191
$
634,910
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
9,733
9,733
Tangible common equity (book value) (non-GAAP)
$
705,458
$
682,671
$
663,808
$
649,288
$
625,177
$
705,458
$
625,177
Common shares outstanding
11,194,411
11,192,936
11,191,958
11,062,729
11,062,729
11,194,411
11,062,729
Book value per share (GAAP)
$
63.89
$
61.86
$
60.18
$
59.57
$
57.39
$
63.89
$
57.39
Tangible book value per share (non-GAAP) (1)
$
63.02
$
60.99
$
59.31
$
58.69
$
56.51
$
63.02
$
56.51
____________________
(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/20241017654743/en/
Daniel F. Dougherty EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6721 IR@MCBankNY.com
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