Quarterly Financial Highlights Year-Over-Year:
- Net income of $25.1 million, an increase of 31.8%.
- Diluted earnings per share of $2.25, an increase of 33.1%.
- Revenues1 of $65.5 million, an increase of 21.2%.
- Net interest income of $58.5 million, an increase of
25.5%.
- Net interest margin of 3.86%, an increase of 115 basis points,
with an average loan yield of 6.34% and total cost of funds of
1.83% for the first quarter of 2023.
- Loans totaled $4.9 billion, an increase of 17.7%.
- Return on average equity of 17.2% and return on average
tangible common equity2 of 17.4%.
Safety and Soundness
- Total core deposits, which do not include crypto related
deposits of $278.5 million, were $4.9 billion at March 31, 2023, an
increase of $69.2 million from December 31, 2022.
- Insured deposits accounted for approximately 71% of total
deposits at March 31, 2023, up from 60% at December 31, 2022.
- Liquidity remains strong. At March 31, 2023, cash on deposit
with the Federal Reserve Bank of New York and readily accessible
secured funding capacity totaled $3.1 billion, which was 208% of
uninsured deposit balances.
- Our previously announced exit from the crypto related vertical
is almost complete, with deposits from active institutional
crypto-asset related clients accounting for 4%, or $217.6 million,
of total deposits at March 31, 2023.
- Asset quality remains strong. The commercial real estate
(“CRE”) portfolio, which includes owner-occupied CRE, is broadly
diversified by property type, with offices comprising only 7% of
the total loan portfolio, and the 53% average loan-to-value ratio
of the portfolio significantly mitigates credit risk.
- Modest loan growth for the quarter, with new originations of
$265.4 million, which was offset by $254.2 million in loan payoffs
and paydowns.
- The Company and Bank are “well capitalized” across all measures
of regulatory capital, with a total risk-based capital of 13.6% and
13.2%, respectively, at March 31, 2023, well above regulatory
minimums.
1 Total revenues equal net interest income plus non-interest
income. 2 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 $25.1 million, or $2.25 per diluted common
share, for the first quarter of 2023 compared to net income of
$19.0 million, or $1.69 per diluted common share, for the first
quarter of 2022.
Mark DeFazio, President and Chief Executive Officer,
commented,
“I am pleased with our first quarter results, which demonstrated
that we were well prepared for the challenges that the banking
industry has faced. The results, along with our proactive planning,
validate our operating model. Our capital, liquidity and financial
position remain strong. While our lending growth was modest for the
quarter, we continue to maintain our high credit quality standards
and continued to see growth in core deposits. Global Payments
revenue excluding Crypto continued to scale, quarter over
quarter.
“Business and economic disruptions cut both ways. When the dust
settles, disruptions highlight business models like ours with
sustainable growth. This disruption I believe will highlight the
value of our commercial bank, which has the support of our very
loyal commercial client base as we continue to enhance our
franchise value.”
Balance Sheet
Total cash and cash equivalents were $299.5 million at March 31,
2023, an increase of $42.1 million, or 16.3%, from December 31,
2022 and a decrease of $1.1 billion from March 31, 2022. The
increase from December 31, 2022, primarily reflected net cash from
operating activities. The decrease from March 31, 2022, reflected
the $730.3 million net deployment into loans and the $807.6 million
outflow of deposits primarily due to the decrease in digital
currency business deposits.
Total loans, net of deferred fees and unamortized costs, were
$4.9 billion, an increase of $11.2 million, or 0.2%, from December
31, 2022, and an increase of $730.3 million, or 17.7% from March
31, 2022. Loan production was $265.4 million for the first quarter
of 2023 compared to $411.3 million for the prior linked quarter and
$488.9 million for the prior year period. The increase in total
loans from December 31, 2022, was due primarily to an increase of
$51.7 million in CRE (including owner-occupied) and commercial and
industrial (“C&I”) loans, partially offset by a $44.9 million
decrease in multi-family and construction loans. The increase in
total loans from March 31, 2022, was due primarily to an increase
of $497.2 million in CRE loans (including owner-occupied) and
$211.9 million in C&I loans.
Total deposits were $5.1 billion at March 31, 2023, a decrease
of $146.1 million, or 2.8% from December 31, 2022, and a decrease
of $807.6 million or 13.6% from March 31, 2022. The decrease from
December 31, 2022, was due primarily to a decrease of $215.4
million in digital currency business deposits, partially offset by
an aggregate net increase of $69.2 million in core deposit
verticals. The decrease in digital currency business deposits
reflects the Company’s decision to fully exit the crypto related
vertical. The decrease in deposits from March 31, 2022, was
primarily due to a decrease of $825.8 million in digital currency
business deposits. Non-interest-bearing demand deposits declined to
41.4% of total deposits at March 31, 2023, compared to 45.9% at
December 31, 2022 and 53.5% at March 31, 2022, reflecting the
outflow of crypto-related and other non-interest bearing
deposits.
Accumulated other comprehensive loss, net of tax, was $50.1
million, a decrease of $4.2 million, from December 31, 2022, and an
increase of $26.3 million from March 31, 2022. The decrease from
December 31, 2022 was due to a decline in unrealized losses on
available-for-sale securities due to the prevailing interest rate
environment, partially offset by an unrealized loss on an
outstanding cash flow hedge and the reclassification to net income
of gains on a terminated cash flow hedge. The increase from March
31, 2022 was due primarily to unrealized losses on
available-for-sale securities due to the prevailing interest rate
environment, partially offset by the increases in unrealized gains
on cash flow hedges prior to their termination in the third quarter
of 2022.
At March 31, 2023, the Company had $2.8 billion remaining
secured funding capacity from the Federal Home Loan Bank, Federal
Reserve Bank and securities repurchase facilities. 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 357.8% of
total risk-based capital at March 31, 2023, compared to 366.0% and
351.0% at December 31, 2022 and March 31, 2022, respectively.
Income Statement
Financial Highlights
Three months ended
Mar. 31,
Dec. 31,
Mar. 31,
(dollars in thousands, except per share
data)
2023(1)
2022(2)
2022
Total revenues(3)
$
65,508
$
70,249
$
54,059
Net income (loss)
25,076
(7,740)
19,021
Diluted earnings (loss) per common
share
2.25
(0.71)
1.69
Return on average assets(4)
1.64
%
N.M.
%
1.11
%
Return on average equity(4)
17.2
%
N.M.
%
13.8
%
Return on average tangible common
equity(4), (5)
17.4
%
N.M.
%
14.0
%
_________________ (1)
Includes a $2.5 million reversal of the
regulatory settlement reserve recorded in the fourth quarter of
2022.
(2)
Includes a $35.0 million charge for a
regulatory settlement reserve.
(3)
Total revenues equal net interest income
plus non-interest income.
(4)
Ratios are annualized.
(5)
Non-GAAP financial measure. See
Reconciliation of Non-GAAP Measures on page 11.
N.M. ‒ Not meaningful.
Net Interest Income
Net interest income for the first quarter of 2023 was $58.5
million, a decrease of $5.4 million from the prior linked quarter
and an increase of $11.9 million from the prior year period. The
decrease from the prior linked quarter was primarily due to the 66
basis point increase in total cost of funds, partially offset by
the 36 basis point increase in the average yield for loans. The
increase from the prior year period was primarily due to the $936.4
million increase in the average balance of loans and the 156 basis
point increase in the average yield for loans, partially offset by
the 155 basis point increase in the cost of funds.
Net Interest Margin
Net interest margin for the first quarter of 2023 was 3.86%
compared to 4.05% and 2.71% for the prior linked quarter and prior
year period, respectively. The 19 basis point decrease for the
prior linked quarter was due primarily to the increase in total
cost of funds, partially offset by the increase in the average
yield for loans. The 115 basis point increase for the prior year
period was driven largely by the increase in the average balance of
loans and the increase in loan yields partially offset by the
higher cost of funds.
Total cost of funds for first quarter of 2023 was 183 basis
points compared to 117 basis points and 28 basis points for the
prior linked quarter and prior year period, respectively, which
primarily reflects the increase in prevailing interest rates and
competition for deposits, as well as the outflow of crypto-related
and other non-interest bearing deposits.
Non-Interest Income
Non-interest income was $7.0 million for the first quarter of
2023, an increase of $624,000 from the prior linked quarter and a
decrease of $453,000 from the prior year period. The increase from
the prior linked quarter was driven by higher Global Payments Group
(“GPG”) revenues. The decrease from the prior year period was
driven by decreases in GPG revenues related to digital currency
clients.
Non-Interest Expense
Non-interest expense was $31.0 million for the first quarter of
2023, a decrease of $35.6 million from the prior linked quarter and
an increase of $6.4 million from the prior year period. The
decrease from the prior linked quarter was due primarily to the
$35.0 million regulatory settlement reserve recorded in the fourth
quarter of 2022. The increase from the prior year period was due
primarily to the increase in compensation and benefits due to the
increase in the number of full-time employees, and an increase in
professional fees, partially offset by the $2.5 million reduction
of the regulatory settlement reserve recorded in the first quarter
of 2023.
Income Tax Expense
The effective tax rate for the first quarter of 2023 was 25.9%
compared to 27.0% for the prior year period. The effective tax rate
for the first quarter of 2023 includes a favorable discrete benefit
related to the conversion of stock awards in the first quarter of
2023. The effective tax rate in the prior year period includes the
recognition of discrete tax items during the period. The effective
tax rate for the prior linked quarter is not meaningful as it
includes the $35.0 million regulatory settlement reserve.
Asset Quality
Credit quality remains strong. The ratio of non-performing loans
to total loans was 0.50% at March 31, 2023 compared to 0.00% at
December 31, 2022 and 0.00% at March 31, 2022, respectively.
The allowance for credit losses (“ACL”) was $47.8 million at
March 31, 2023, a $2.9 million increase from December 31, 2022 and
$9.6 million increase from March 31, 2022. The increase from
December 31, 2022 was primarily due to the Company adopting ASU No.
2016-13, Financial Instruments – Credit Losses (ASC 326) effective
January 1, 2023. ASU No. 2016-13 requires the measurement of all
expected credit losses for financial assets held at amortized cost
to be based on historical experience, current condition, and
reasonable and supportable forecasts. Upon adoption, the Company
recorded a $2.3 million increase to the ACL for loans, a $777,000
increase to the ACL for loan commitments, and a $2.1 million
decrease to retained earnings, net of taxes. The Company also
recorded a $646,000 provision for credit losses for the first
quarter of 2023 primarily driven by macroeconomic factors. The
increase in the ACL from March 31, 2022 was primarily due to the
growth in loans and the adoption of ASU No. 2016-13.
Conference Call
The Company will conduct a conference call at 8:30 a.m. ET on
Wednesday, April 19, 2023, to discuss the results. To access the
event by telephone, please dial 800-245-3047 (US), 203-518-9843
(INTL), and provide conference ID: MCBQ123 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 small businesses, private and public middle-market and
corporate enterprises and institutions, municipalities and local
government entities, and affluent individuals.
Metropolitan Commercial Bank’s Global Payments Group is an
established leader in providing domestic and international banking
services to non-bank financial service companies, including:
providing digital payments settlements; providing a gateway to
payment networks; acting as a custodian of deposits; providing
merchant acquiring services; acting as a global settlement agent,
and as a leading national issuer of third-party debit cards. The
Bank continues to grow its presence as a valued, trusted and
innovative strategic partner across, payments, custodial and money
services businesses worldwide.
Metropolitan Commercial Bank’s EB-5 / E-2 International Group
delivers banking services and products for United States Citizen
and Immigration Services EB-5 Immigrant Investor Program investors,
developers, Regional Centers, government agencies, law firms and
consulting companies that specialize in EB-5 and E-2.
Metropolitan Commercial Bank finished in the top ten of 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 among the top ten top-performing community banks in the
Northeast region for 2022. The Bank is also a member of the Piper
Sandler Sm-All Stars Class of 2022. 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 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 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 continuing impact of the COVID-19 pandemic
on our business and results of operation, 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, unanticipated regulatory action
or changes in regulations, unexpected changes in interest rates,
inflation, 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 and the Board of Governors of the Federal Reserve
System, 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, failure to maintain
effective internal control over financial reporting, 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.
Forward-looking statements speak only as of the date of this
release. We do not undertake any obligation to update or revise any
forward-looking statement.
Consolidated Balance Sheet
(unaudited)
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
(in thousands)
2023
2022
2022
2022
2022
Assets
Cash and due from banks
$
32,525
$
26,780
$
28,929
$
33,143
$
32,483
Overnight deposits
266,978
230,638
679,849
1,308,738
1,381,475
Total cash and cash equivalents
299,503
257,418
708,778
1,341,881
1,413,958
Investment securities available for
sale
444,169
445,747
423,265
465,661
505,728
Investment securities held to maturity
501,525
510,425
521,376
530,740
467,893
Equity investment securities, at fair
value
2,087
2,048
2,027
2,107
2,173
Total securities
947,781
958,220
946,668
998,508
975,794
Other investments
27,099
22,110
17,484
17,357
15,989
Loans, net of deferred fees and
unamortized costs
4,851,694
4,840,523
4,617,304
4,375,165
4,121,443
Allowance for credit losses
(47,752)
(44,876)
(42,541)
(40,534)
(38,134)
Net loans
4,803,942
4,795,647
4,574,763
4,334,631
4,083,309
Receivables from global payments business,
net
83,787
85,605
75,457
68,214
62,129
Other assets(1)
147,870
148,337
144,328
152,941
123,380
Total assets
$
6,309,982
$
6,267,337
$
6,467,478
$
6,913,532
$
6,674,559
Liabilities and Stockholders'
Equity
Deposits
Non-interest-bearing demand deposits
$
2,122,606
$
2,422,151
$
3,058,014
$
3,470,325
$
3,176,048
Interest-bearing deposits
3,009,182
2,855,761
2,673,509
2,708,075
2,763,315
Total deposits
5,131,788
5,277,912
5,731,523
6,178,400
5,939,363
Federal funds purchased
195,000
150,000
—
—
—
Federal Home Loan Bank of New York
advances
200,000
100,000
—
—
—
Trust preferred securities
20,620
20,620
20,620
20,620
20,620
Secured borrowings
7,689
7,725
26,912
32,044
32,322
Prepaid third-party debit cardholder
balances
11,102
10,579
9,395
23,531
24,092
Other liabilities(1)
135,896
124,604
96,791
84,631
98,132
Total liabilities
5,702,095
5,691,440
5,885,241
6,339,226
6,114,529
Common stock
110
109
109
109
109
Additional paid in capital
394,126
389,276
387,406
385,369
383,327
Retained earnings
263,783
240,810
248,550
223,595
200,406
Accumulated other comprehensive gain
(loss), net of tax effect
(50,132)
(54,298)
(53,828)
(34,767)
(23,812)
Total stockholders’ equity
607,887
575,897
582,237
574,306
560,030
Total liabilities and stockholders’
equity
$
6,309,982
$
6,267,337
$
6,467,478
$
6,913,532
$
6,674,559
_______________ (1)
Includes adoption impact of ASU 2016-02,
Leases (ASC 842) effective January 1, 2022.
Consolidated Statement of Income
(unaudited)
Three months ended
Mar. 31,
Dec. 31,
Mar. 31,
(dollars in thousands, except per share
data)
2023
2022
2022
Total interest income
$
83,263
$
80,554
$
50,970
Total interest expense
24,729
16,655
4,338
Net interest income
58,534
63,899
46,632
Provision for credit losses
646
2,309
3,400
Net interest income after provision for
credit losses
57,888
61,590
43,232
Non-interest income
Service charges on deposit accounts
1,456
1,458
1,370
Global Payments Group revenue
4,850
4,343
5,657
Other income
668
549
400
Total non-interest income
6,974
6,350
7,427
Non-interest expense
Compensation and benefits
16,255
15,886
13,421
Bank premises and equipment
2,344
2,247
2,116
Professional fees
4,187
5,171
1,474
Technology costs
1,313
1,186
1,399
Licensing fees
2,662
2,674
2,294
FDIC assessments
2,814
1,030
1,245
Regulatory settlement reserve
(2,500)
35,000
—
Other expenses
3,950
3,465
2,670
Total non-interest expense
31,025
66,659
24,619
Net income before income tax expense
33,837
1,281
26,040
Income tax expense
8,761
9,021
7,019
Net income (loss)
$
25,076
$
(7,740)
$
19,021
Earnings per common share:
Average common shares outstanding:
Basic
11,044,624
10,932,952
10,919,868
Diluted
11,103,008
11,183,862
11,223,294
Basic earnings (loss)
$
2.26
$
(0.71)
$
1.74
Diluted earnings (loss)
$
2.25
$
(0.71)
$
1.69
Loan Production, Asset Quality
& Regulatory Capital
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
2023
2022
2022
2022
2022
LOAN PRODUCTION (in
millions)
$
265.4
$
411.3
$
423.6
$
512.8
$
488.9
ASSET QUALITY (in
thousands)
Non-accrual loans:
Commercial real estate
$
24,000
$
—
$
—
$
—
$
—
Commercial and industrial
—
—
—
—
—
Consumer
24
24
24
24
24
Total non-accrual loans
$
24,024
$
24
$
24
$
24
$
24
Total non-performing loans
$
24,024
$
24
$
24
$
24
$
24
Non-accrual loans to total loans
0.50
%
—
%
—
%
—
%
—
%
Non-performing loans to total loans
0.50
%
—
%
—
%
—
%
—
%
Allowance for credit losses
$
47,752
$
44,876
$
42,541
$
40,534
$
38,134
Allowance for credit losses to total
loans
0.98
%
0.93
%
0.92
%
0.93
%
0.93
%
Charge-offs
$
(100)
$
—
$
—
$
—
$
—
Recoveries
$
—
$
25
$
—
$
—
$
5
Net charge-offs/(recoveries) to average
loans (annualized)
0.01
%
—
%
—
%
—
%
—
%
REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.
10.8
%
10.2
%
9.9
%
9.2
%
8.6
%
Metropolitan Commercial Bank
10.4
%
10.0
%
9.7
%
9.1
%
8.5
%
Common Equity Tier 1 Risk-Based
(CET1):
Metropolitan Bank Holding Corp.
12.3
%
12.1
%
12.9
%
13.0
%
13.3
%
Metropolitan Commercial Bank
12.3
%
12.3
%
13.1
%
13.2
%
13.6
%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.
12.7
%
12.5
%
13.3
%
13.4
%
13.7
%
Metropolitan Commercial Bank
12.3
%
12.3
%
13.1
%
13.2
%
13.6
%
Total Risk-Based:
Metropolitan Bank Holding Corp.
13.6
%
13.4
%
14.2
%
14.3
%
14.6
%
Metropolitan Commercial Bank
13.2
%
13.1
%
14.0
%
14.1
%
14.5
%
Performance
Measures
Three months ended
(dollars in thousands,
Mar. 31,
Dec. 31,
Mar. 31,
except per share data)
2023(1)
2022(2)
2022
Net income (loss) available to common
shareholders
$
24,992
$
(7,740)
$
18,996
Per common share:
Basic earnings (loss)
$
2.26
$
(0.71)
$
1.74
Diluted earnings (loss)
$
2.25
$
(0.71)
$
1.69
Common shares outstanding:
Period end
11,211,274
10,949,965
10,931,697
Average fully diluted
11,103,008
11,183,862
11,223,294
Return on:(3)
Average total assets
1.64
%
N.M.
%
1.11
%
Average equity
17.2
%
N.M.
%
13.8
%
Average tangible common equity(4)
17.4
%
N.M.
%
14.0
%
Yield on average earning assets(3)
5.51
%
5.12
%
2.96
%
Total cost of deposits(3)
1.72
%
1.11
%
0.23
%
Net interest spread(3)
2.25
%
2.79
%
2.32
%
Net interest margin(3)
3.86
%
4.05
%
2.71
%
Net charge-offs as % of average loans
0.01
%
—
%
—
%
Efficiency ratio(5)
47.4
%
94.9
%
45.5
%
_______________ (1)
Includes a $2.5 million reversal of the
regulatory settlement reserve recorded in the fourth quarter of
2022.
(2)
Includes a $35.0 million charge for a
regulatory settlement reserve.
(3)
Ratios are annualized.
(4)
Non-GAAP financial measure. See
Reconciliation of Non-GAAP Measures on page 11.
(5)
Total non-interest expense divided by
total revenues.
N.M. ‒ Not meaningful.
Interest Margin
Analysis
Three months ended
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Average
Average
Average
Outstanding
Yield /
Outstanding
Yield /
Outstanding
Yield /
(dollars in thousands)
Balance
Interest
Rate (1)
Balance
Interest
Rate (1)
Balance
Interest
Rate (1)
Assets:
Interest-earning assets:
Loans (2)
$
4,838,336
$
75,960
6.34
%
$
4,796,001
$
72,560
5.98
%
$
3,901,976
$
46,536
4.78
%
Available-for-sale securities
530,503
2,106
1.59
527,523
1,979
1.50
565,301
1,648
1.17
Held-to-maturity securities
506,655
2,377
1.88
518,822
2,422
1.87
447,165
1,738
1.55
Equity investments
2,362
12
2.08
2,351
10
1.70
2,328
6
1.03
Overnight deposits
207,917
2,484
4.78
362,244
3,291
3.55
1,969,366
915
0.19
Other interest-earning assets
20,163
324
6.42
18,689
292
6.26
13,328
127
3.80
Total interest-earning assets
6,105,936
83,263
5.51
6,225,630
80,554
5.12
6,899,464
50,970
2.96
Non-interest-earning assets
152,302
101,826
57,241
Allowance for credit losses
(45,614)
(43,643)
(36,130)
Total assets
$
6,212,624
$
6,283,813
$
6,920,575
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
2,840,271
22,030
3.15
$
2,683,653
15,241
2.25
$
2,639,572
3,463
0.53
Certificates of deposit
52,912
343
2.63
49,470
207
1.66
75,881
162
0.86
Total interest-bearing deposits
2,893,183
22,373
3.14
2,733,123
15,448
2.24
2,715,453
3,625
0.54
Borrowed funds
188,230
2,356
5.01
101,600
1,207
4.75
40,340
713
7.07
Total interest-bearing liabilities
3,081,413
24,729
3.25
2,834,723
16,655
2.33
2,755,793
4,338
0.64
Non-interest-bearing liabilities:
Non-interest-bearing deposits
2,390,840
2,792,370
3,574,835
Other non-interest-bearing liabilities
147,850
60,951
28,927
Total liabilities
5,620,103
5,688,044
6,359,555
Stockholders' equity
592,521
595,769
561,020
Total liabilities and equity
$
6,212,624
$
6,283,813
$
6,920,575
Net interest income
$
58,534
$
63,899
$
46,632
Net interest rate spread (3)
2.25
%
2.79
%
2.32
%
Net interest margin (4)
3.86
%
4.05
%
2.71
%
Total cost of deposits (5)
1.72
%
1.11
%
0.23
%
Total cost of funds (6)
1.83
%
1.17
%
0.28
%
_________________ (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)
2023
2022
2022
2022
2022
Average assets
$
6,212,624
$
6,283,813
$
6,553,105
$
6,736,800
$
6,920,575
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible assets (non-GAAP)
$
6,202,891
$
6,274,080
$
6,543,372
$
6,727,067
$
6,910,842
Average common equity
$
592,521
$
595,769
$
589,941
$
567,931
$
561,020
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible common equity
(non-GAAP)
$
582,788
$
586,036
$
580,208
$
558,198
$
551,287
Total assets
$
6,309,982
$
6,267,337
$
6,422,061
$
6,867,042
$
6,626,940
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible assets (non-GAAP)
$
6,300,249
$
6,257,604
$
6,412,328
$
6,857,309
$
6,617,207
Common equity
$
607,887
$
575,897
$
582,237
$
574,306
$
560,030
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible common equity (book value)
(non-GAAP)
$
598,154
$
566,164
$
572,504
$
564,573
$
550,297
Common shares outstanding
11,211,274
10,949,965
10,931,697
10,931,697
10,931,697
Book value per share (GAAP)
$
54.22
$
52.59
$
53.26
$
52.54
$
51.23
Tangible book value per share (non-GAAP)
(1)
$
53.35
$
51.70
$
52.37
$
51.65
$
50.34
_______________ (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/20230418006150/en/
Greg Sigrist EVP & Chief Financial Officer Metropolitan
Commercial Bank (212) 365-6700 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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