Revenues Increased 44.4% Year-Over-Year
Loans Increased 26.8% Year-Over-Year Return on Average
Tangible Common Equity1 of 16.7%
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the
holding company for Metropolitan Commercial Bank (the “Bank”),
reported net income of $23.2 million, or $2.07 per diluted common
share, for the second quarter of 2022 compared to net income of
$13.3 million, or $1.55 per diluted common share, for the second
quarter of 2021.
The Company will conduct a conference call at 9:00 a.m. Eastern
time on Friday, July 22, 2022, to discuss second quarter 2022
results. See “Conference Call” section below for further
details.
Financial Highlights Year-Over-Year:
- Total revenues of $62.3 million, up 44.4%.
- Banking-as-a-Service (“BaaS”) revenues of $5.2 million, up
36.1%.
- Net income of $23.2 million, up 73.9%.
- Diluted earnings per share of $2.07, up 33.5%.
- Net interest margin of 3.27%, up 59 basis points.
- Loans totaled $4.4 billion, up 26.8%.
- Deposits were $6.2 billion, up 16.8%.
- Book value per share was $52.54, up 22.4%, and tangible book
value per share1 was $51.65, up 23.7%.
- Return on average equity of 16.4% and return on average
tangible common equity1 of 16.7%.
- Efficiency ratio2 improved to 42.2% compared to 50.3% for the
prior year period.
Mark DeFazio, President and Chief Executive Officer,
commented,
“I am pleased with the strong performance of MCB throughout the
franchise. The solid balance sheet growth continues to generate
strong financial returns while prior investments have made us more
efficient and built for scale. Our sustained performance throughout
the full economic cycle underscores the resilience of our business
model and our focus on disciplined underwriting. Our strong market
positioning and balance sheet strength position us well to serve
existing and new clients at a time when the competitive landscape
is fluid.
“Our Global Payments Group continues to deepen and expand its
relationship with fintech clients who provide retail financial
services to consumers and businesses nationwide. Together with our
Fintech partners, the stage is set for GPG to be a best in class
digital retail bank providing consumer financial services.
“Our continued performance would not be possible without the
unconditional support and dedication of our staff and
Directors.”
Balance
Sheet
The Company had total assets of $6.9 billion at June 30, 2022,
an increase of $1.1 billion, or 18.7%, from June 30, 2021, and an
increase of $240.1 million, or 3.6% from March 31, 2022.
Total cash and cash equivalents were $1.3 billion at June 30,
2022, a decrease of $377.4 million, or 22.0%, from June 30, 2021
and a decrease of $72.1 million, or 5.1%, from March 31, 2022. The
decrease from June 30, 2021, reflected the $1.4 billion deployment
into loans and securities offset by the strong growth in deposits
as well as the cash received from the issuance of common stock
during the third quarter of 2021.
Total loans, net of deferred fees and unamortized costs, were
$4.4 billion, an increase of $925.7 million, or 26.8%, from June
30, 2021, and an increase of $253.7 million, or 6.2% from March 31,
2022. Loan production was $512.8 million for the second quarter of
2022 compared to $265.4 million for the prior year period and
$488.9 million for the prior linked quarter. The increase in total
loans from June 30, 2021, was due primarily to an increase of
$735.8 million in commercial real estate (“CRE”) loans (including
owner-occupied) and $180.0 million in commercial and industrial
(“C&I”) loans. The increase in total loans from March 31, 2022,
was due primarily to an increase of $140.1 million in CRE loans
(including owner-occupied) and $57.1 million in C&I loans.
Total securities were $998.5 million at June 30, 2022, an
increase of 82.1% from June 30, 2021, and 2.3% from March 31, 2022,
due primarily to the deployment of excess liquidity.
Total deposits were $6.2 billion, an increase of $890.1 million,
or 16.8% from June 30, 2021, and an increase of $239.0 million or
4.0% from March 31, 2022. The increase in deposits from June 30,
2021, was primarily due to increases in digital currency and retail
deposit customers. Non-interest-bearing demand deposits were 56.2%
of total deposits at June 30, 2022, compared to 52.8% at June 30,
2021 and 53.5% at March 31, 2022.
Accumulated other comprehensive loss, net of tax, was $34.8
million, an increase of $32.9 million, from June 30, 2021, and
$11.0 million from March 31, 2022. The increases were due to the
prevailing interest rate environment which increased the unrealized
losses on available-for-sale securities, partially offset by
increases in unrealized gains on cash flow hedges.
At June 30, 2022, the Company had available borrowing capacity
of $477.4 million from the Federal Home Loan Bank and an available
line of credit of $97.8 million under the Federal Reserve Bank of
New York discount window. 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 337.4% of total risk-based capital at June 30,
2022, compared to 442.6% and 350.9% at June 30, 2021 and March 31,
2022, respectively.
Income
Statement
Financial Highlights
Three months ended
Six months ended
Jun. 30,
Mar. 31,
Jun. 30,
Jun. 30,
Jun. 30,
(dollars in thousands, except per share
data)
2022
2022
2021
2022
2021
Total revenues (1)
$
62,300
$
54,059
$
43,129
$
116,359
$
82,145
Net income
23,189
19,021
13,336
42,210
25,453
Diluted earnings per common share
2.07
1.69
1.55
3.76
2.98
Return on average assets (2)
1.38
%
1.11
%
0.97
%
1.25
%
1.01
%
Return on average equity (2)
16.4
%
13.8
%
15.0
%
15.1
%
14.6
%
Return on average tangible common equity
(2), (3)
16.7
%
14.0
%
15.6
%
15.5
%
15.2
%
____________________ (1) Total revenues equal net interest
income plus non-interest income. (2) Ratios are annualized. (3)
Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures
on page 12.
Net Interest Income
Net interest income for the second quarter of 2022 was $55.3
million, an increase of $8.7 million from the prior linked quarter
and $18.3 million from the prior year period. This was primarily
due to an increase in the average balance of loans and securities,
the increase in prevailing interest rates and the shift in asset
mix to higher-yielding interest earning assets. The average balance
of loans increased $330.0 million and $897.3 million compared to
the prior linked quarter and prior year period, respectively. The
average balance of securities increased $16.7 million and $539.7
million compared to the prior linked quarter and prior year period,
respectively. The average yield on loans increased 9 basis points
and 22 basis points compared to the prior linked quarter and prior
year period, respectively. The average yield on overnight deposits
increased 66 basis points and 74 basis points compared to the prior
linked quarter and prior year period, respectively.
Net Interest Margin
Net interest margin for the second quarter of 2022 was 3.27%
compared to 2.71% and 2.68% for the prior linked quarter and prior
year period, respectively. The 56 basis point increase in net
interest margin from the prior linked quarter was driven largely by
the increase in the average balance of loans, the increase in
yields for loans and overnight deposits and the subordinated debt
redemption in the first quarter of 2022. The 59 basis point
increase from the prior year period was driven largely by the
increase in the average balance of loans and securities, the
increase in yields for loans and overnight deposits, and the
subordinated debt redemption in the first quarter of 2022.
Total cost of funds for the second quarter of 2022 was 25 basis
points compared to 28 basis points and 32 basis points for the
prior linked quarter and prior year period, respectively. The 3
basis point decrease from the prior linked quarter was driven by
the subordinated debt redemption in the first quarter of 2022. The
7 basis point decline from the prior year period was driven by the
shift toward non-interest bearing deposits as well as a decrease in
the cost of interest-bearing deposits.
Non-Interest Income
Non-interest income was $7.0 million for the second quarter of
2022, a decrease of $0.4 million from the prior linked quarter.
Global Payments Group non transactional revenues were elevated in
the prior linked quarter. Non-interest income increased $0.8
million for the second quarter of 2022, compared to the prior year
period primarily driven by the increase in Global Payments Group
client transaction volumes, offset by the $0.6 million decrease in
the gain on the sale of securities.
Non-Interest Expense
Non-interest expense was $26.3 million for the second quarter of
2022, an increase of $1.7 million and $4.6 million from the prior
linked quarter and prior year period, respectively. Non-interest
expense increased from the prior linked quarter primarily due to
charitable contributions and qualified CRA grants. Non-interest
expense increased from the prior year period primarily due to an
increase in full-time employees, and general expense growth in line
with revenue growth and volume expansion in the global payments
business.
Income Tax Expense
The estimated effective tax rate for the second quarter of 2022
was 31.0% compared to 27.0% and 31.8% for the prior linked quarter
and prior year period, respectively. The effective tax rate
increased from the prior linked quarter primarily due to discrete
tax items recognized during the first quarter of 2022.
Asset
Quality
Credit quality remains strong as there were no charge-offs
during the second quarter of 2022 and non-performing loans to total
loans was 0.00% at June 30, 2022 compared to 0.16% at June 30,
2021.
The Company recorded a provision of $2.4 million for the second
quarter of 2022 compared to $3.4 million and $1.9 million for the
prior linked quarter and prior year period, respectively. The
provision was in line with loan growth during the respective
periods.
Conference
Call
The Company will conduct a conference call at 9:00 a.m. Eastern
time on Friday, July 22, 2022, to discuss second quarter 2022
results. To access the event by telephone, please dial 866-518-6930
(US), 203-518-9797 (INTL), and provide conference ID: MCBQ222
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”). The Bank is a
New York City based commercial bank that provides a broad range of
business, commercial and personal banking products and services to
small, middle-market, corporate enterprises, municipalities, and
affluent individuals. The Bank’s Global Payments Group is an
established leader in BaaS (Banking-as-a-Service) to various
domestic and international fintech, payments and money services
businesses. The Bank operates banking centers in New York City and
on Long Island in New York State, and is ranked as one of the 100
Fastest-Growing Companies by Fortune, one of the Top 50 Community
Banks by S&P, and one of the Top 20 Commercial Lenders by ICBA
for banks with an asset size of more than $1 billion. 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, 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, an unanticipated decrease in deposits, 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 fintech partners, unanticipated
increases in FDIC costs, changes in regulations, legislation or tax
or accounting rules, the current or anticipated impact of military
conflict, terrorism or other geopolitical events 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.
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)
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
(in thousands)
2022
2022
2021
2021
2021
Assets
Cash and due from banks
$
33,143
$
32,483
$
28,864
$
32,660
$
29,651
Overnight deposits
1,308,738
1,381,475
2,330,486
1,824,820
1,689,614
Total cash and cash equivalents
1,341,881
1,413,958
2,359,350
1,857,480
1,719,265
Investment securities available for
sale
465,661
505,728
566,624
603,168
543,769
Investment securities held to maturity
530,740
467,893
382,099
2,017
2,222
Equity investment securities, at fair
value
2,107
2,173
2,273
2,289
2,291
Total securities
998,508
975,794
950,996
607,474
548,282
Other investments
17,357
15,989
11,998
11,998
11,989
Loans, net of deferred fees and
unamortized costs
4,375,165
4,121,443
3,731,929
3,603,288
3,449,490
Allowance for loan losses
(40,534)
(38,134)
(34,729)
(38,121)
(37,377)
Net loans
4,334,631
4,083,309
3,697,200
3,565,167
3,412,113
Receivables from global payments business,
net
68,214
62,129
39,864
48,302
40,091
Accrued interest receivable
18,203
16,186
15,195
13,504
14,424
Premises and equipment, net
17,933
16,434
15,116
14,031
13,337
Prepaid expenses and other assets
60,582
33,408
16,906
13,565
17,959
Goodwill
9,733
9,733
9,733
9,733
9,733
Total assets
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
$
5,787,193
Liabilities and Stockholders'
Equity
Deposits
Non-interest-bearing demand deposits
$
3,470,325
$
3,176,048
$
3,668,673
$
2,803,823
$
2,794,136
Interest-bearing deposits
2,708,075
2,763,315
2,766,899
2,653,746
2,494,137
Total deposits
6,178,400
5,939,363
6,435,572
5,457,569
5,288,273
Trust preferred securities
20,620
20,620
20,620
20,620
20,620
Subordinated debt, net of issuance
cost
—
—
24,712
24,698
24,684
Secured borrowings
32,044
32,322
32,461
35,559
36,449
Accounts payable, accrued expenses and
other liabilities
37,774
50,216
36,411
38,129
30,598
Accrued interest payable
367
297
746
448
1,773
Prepaid third-party debit cardholder
balances
23,531
24,092
8,847
21,577
21,201
Total liabilities
6,292,736
6,066,910
6,559,369
5,598,600
5,423,598
Class B preferred stock
—
—
—
3
3
Common stock
109
109
109
106
83
Additional paid in capital
385,369
383,327
382,999
382,922
219,098
Retained earnings
223,595
200,406
181,385
162,498
146,283
Accumulated other comprehensive gain
(loss), net of tax effect
(34,767)
(23,812)
(7,504)
(2,875)
(1,872)
Total stockholders’ equity
574,306
560,030
556,989
542,654
363,595
Total liabilities and stockholders’
equity
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
$
5,787,193
Consolidated Statement of Income
(unaudited)
Three months ended
Six months ended
Jun. 30,
Mar. 31,
Jun. 30,
Jun. 30,
Jun. 30,
(dollars in thousands, except per share
data)
2022
2022
2021
2022
2021
Total interest income
$
59,158
$
50,970
$
41,050
$
110,128
$
79,156
Total interest expense
3,856
4,338
4,077
8,194
7,760
Net interest income
55,302
46,632
36,973
101,934
71,396
Provision for loan losses
2,400
3,400
1,875
5,800
2,825
Net interest income after provision for
loan losses
52,902
43,232
35,098
96,134
68,571
Non-interest income
Service charges on deposit accounts
(1)
1,474
1,370
1,126
2,844
2,098
Global Payments Group revenue (1)
5,242
5,657
3,851
10,899
7,210
Other service charges and fees
355
506
566
861
868
Unrealized gain (loss) on equity
securities
(73)
(106)
4
(179)
(36)
Gain (loss) on sale of securities
—
—
609
—
609
Total non-interest income
6,998
7,427
6,156
14,425
10,749
Non-interest expense
Compensation and benefits
13,415
13,421
11,211
26,836
22,638
Bank premises and equipment
2,264
2,116
2,000
4,380
4,024
Professional fees
1,692
1,474
2,003
3,166
3,306
Technology costs
1,144
1,399
1,447
2,543
2,374
Licensing fees
2,686
2,294
2,067
4,980
4,141
Other expenses
5,068
3,915
2,961
8,983
5,528
Total non-interest expense
26,269
24,619
21,689
50,888
42,011
Net income before income tax expense
33,631
26,040
19,565
59,671
37,309
Income tax expense
10,442
7,019
6,229
17,461
11,856
Net income
$
23,189
$
19,021
$
13,336
$
42,210
$
25,453
Earnings per common share:
Average common shares outstanding:
Basic
10,931,697
10,919,868
8,312,234
10,925,718
8,294,404
Diluted
11,189,807
11,223,294
8,543,474
11,208,992
8,496,945
Basic earnings
$
2.12
$
1.74
$
1.59
$
3.86
$
3.06
Diluted earnings
$
2.07
$
1.69
$
1.55
$
3.76
$
2.98
____________________ (1) Certain prior period amounts have been
reclassified for consistency with the current period
presentation.
Loan Production, Asset Quality
& Regulatory Capital
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
(dollars in thousands)
2022
2022
2021
2021
2021
LOAN PRODUCTION
$
512.8
$
488.9
$
411.0
$
312.9
$
265.4
ASSET QUALITY
Non-accrual loans:
Commercial real estate
$
—
$
—
$
9,984
$
9,984
$
—
Commercial and industrial
—
—
—
3,145
3,337
Consumer
24
24
37
1,674
1,560
Total non-accrual loans
$
24
$
24
$
10,021
$
14,803
$
4,897
Total non-performing loans
$
24
$
24
$
10,286
$
15,376
$
5,491
Non-accrual loans to total loans
—
%
—
%
0.27
%
0.41
%
0.14
%
Non-performing loans to total loans
—
%
—
%
0.28
%
0.43
%
0.16
%
Allowance for loan losses
$
40,534
$
38,134
$
34,729
$
38,121
$
37,377
Allowance for loan losses to total
loans
0.93
%
0.93
%
0.93
%
1.06
%
1.08
%
Charge-offs
$
—
$
—
$
(3,909)
$
(54)
$
—
Recoveries
$
—
$
5
$
17
$
308
$
—
Net charge-offs/(recoveries) to average
loans (annualized)
—
%
—
%
0.42
%
(0.03)
%
—
%
REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.
9.2
%
8.6
%
8.5
%
9.4
%
6.8
%
Metropolitan Commercial Bank
9.1
%
8.5
%
8.4
%
9.3
%
7.3
%
Common Equity Tier 1 Risk-Based
(CET1):
Metropolitan Bank Holding Corp.
13.0
%
13.3
%
14.1
%
14.1
%
9.7
%
Metropolitan Commercial Bank
13.2
%
13.6
%
14.4
%
14.6
%
11.1
%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.
13.4
%
13.7
%
14.6
%
14.8
%
10.5
%
Metropolitan Commercial Bank
13.2
%
13.6
%
14.4
%
14.6
%
11.1
%
Total Risk-Based:
Metropolitan Bank Holding Corp.
14.3
%
14.6
%
16.1
%
16.5
%
12.2
%
Metropolitan Commercial Bank
14.1
%
14.5
%
15.2
%
15.6
%
12.2
%
Performance
Measures
Three months ended
Six months ended
(dollars in thousands, except per
share
Jun. 30,
Mar. 31,
Jun. 30,
Jun. 30,
Jun. 30,
data)
2022
2022
2021
2022
2021
Net income available to common
shareholders
$
23,126
$
18,996
$
13,252
$
42,125
$
25,347
Per common share:
Basic earnings
$
2.12
$
1.74
$
1.59
$
3.86
$
3.06
Diluted earnings
$
2.07
$
1.69
$
1.55
$
3.76
$
2.98
Common shares outstanding:
Period end
10,931,697
10,931,697
8,344,193
10,931,697
8,344,193
Average fully diluted
11,189,807
11,223,294
8,543,474
11,208,992
8,496,945
Return on: (1)
Average total assets
1.38
%
1.11
%
0.97
%
1.25
%
1.01
%
Average equity
16.4
%
13.8
%
15.0
%
15.1
%
14.6
%
Average tangible common equity (2)
16.7
%
14.0
%
15.6
%
15.5
%
15.2
%
Yield on average earning assets
3.50
%
2.96
%
2.98
%
3.24
%
3.14
%
Total cost of deposits
0.24
%
0.23
%
0.29
%
0.24
%
0.29
%
Net interest spread
2.95
%
2.32
%
2.31
%
2.65
%
2.47
%
Net interest margin
3.27
%
2.71
%
2.68
%
3.00
%
2.83
%
Net charge-offs as % of average loans
(1)
—
%
—
%
—
%
—
%
0.05
%
Efficiency ratio
42.2
%
45.5
%
50.3
%
43.73
%
51.14
%
____________________ (1) Ratios are annualized. (2) Non-GAAP
financial measure. See Reconciliation of Non-GAAP Measures on page
12.
Interest Margin
Analysis
Three months ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
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)
$
4,232,016
$
52,185
4.87
%
$
3,901,976
$
46,536
4.78
%
$
3,334,762
$
39,234
4.65
%
Available-for-sale securities
540,100
1,643
1.22
565,301
1,648
1.17
487,147
1,204
0.98
Held-to-maturity securities
489,082
2,056
1.68
447,165
1,738
1.55
2,348
9
1.52
Equity investments
2,334
7
1.25
2,328
6
1.03
2,309
7
1.20
Overnight deposits
1,401,027
2,994
0.85
1,969,366
915
0.19
1,612,187
442
0.11
Other interest-earning assets
17,357
273
6.29
13,328
127
3.80
11,985
154
5.15
Total interest-earning assets
6,681,916
59,158
3.50
6,899,464
50,970
2.96
5,450,738
41,050
2.98
Non-interest-earning assets
93,597
57,241
90,287
Allowance for loan losses
(38,713)
(36,130)
(36,339)
Total assets
$
6,736,800
$
6,920,575
$
5,504,686
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
2,716,676
3,583
0.53
$
2,639,572
3,463
0.53
$
2,314,791
3,348
0.58
Certificates of deposit
62,247
123
0.80
75,881
162
0.86
83,606
217
1.04
Total interest-bearing deposits
2,778,923
3,706
0.53
2,715,453
3,625
0.54
2,398,397
3,565
0.60
Borrowed funds
20,621
150
2.91
40,340
713
7.07
45,296
512
4.47
Total interest-bearing liabilities
2,799,544
3,856
0.55
2,755,793
4,338
0.64
2,443,693
4,077
0.67
Non-interest-bearing liabilities:
Non-interest-bearing deposits
3,290,328
3,574,835
2,603,198
Other non-interest-bearing liabilities
78,997
28,927
100,698
Total liabilities
6,168,869
6,359,555
5,147,589
Stockholders' equity
567,931
561,020
357,097
Total liabilities and equity
$
6,736,800
$
6,920,575
$
5,504,686
Net interest income
$
55,302
$
46,632
$
36,973
Net interest rate spread (3)
2.95
%
2.32
%
2.31
%
Net interest margin (4)
3.27
%
2.71
%
2.68
%
Total cost of deposits (5)
0.24
%
0.23
%
0.29
%
Total cost of funds (6)
0.25
%
0.28
%
0.32
%
____________________ (1) Annualized. (2) Amount includes
deferred loan fees and non-performing loans. (3) Determined by
subtracting the annualized average cost of total interest-bearing
liabilities from the annualized average yield on total
interest-earning assets. (4) Determined by dividing annualized net
interest income by total average interest-earning assets. (5)
Determined by dividing annualized interest expense on deposits by
total average interest-bearing and non-interest bearing deposits.
(6) Determined by dividing annualized interest expense by the sum
of total average interest-bearing liabilities and total average
non-interest-bearing deposits.
Six months ended
Jun. 30, 2022
Jun. 30, 2021
Average
Average
Outstanding
Yield /
Outstanding
Yield /
(dollars in thousands)
Balance
Interest
Rate (1)
Balance
Interest
Rate (1)
Assets:
Interest-earning assets:
Loans (2)
$
4,067,908
$
98,721
4.85
%
$
3,263,309
$
76,074
4.67
%
Available-for-sale securities
552,631
3,291
1.19
%
409,895
1,956
0.95
%
Held-to-maturity securities
468,239
3,794
1.62
%
2,485
20
1.60
%
Equity investments
2,331
13
1.14
%
2,306
15
1.29
%
Overnight deposits
1,683,626
3,909
0.46
%
1,357,851
786
0.12
%
Other interest-earning assets
15,354
400
5.21
%
11,799
305
5.21
%
Total interest-earning assets
6,790,089
110,128
3.24
%
5,047,645
79,156
3.14
%
Non-interest-earning assets
75,520
77,662
Allowance for loan losses
(37,429)
(36,155)
Total assets
$
6,828,180
$
5,089,152
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
2,678,146
$
7,046
0.53
%
$
2,188,333
$
6,254
0.58
%
Certificates of deposit
69,026
285
0.83
%
85,245
482
1.14
%
Total interest-bearing deposits
2,747,172
7,331
0.54
%
2,273,578
6,736
0.60
%
Borrowed funds
30,426
863
5.67
%
45,289
1,024
4.50
%
Total interest-bearing liabilities
2,777,598
8,194
0.59
%
2,318,867
7,760
0.67
%
Non-interest-bearing liabilities:
Non-interest-bearing deposits
3,431,987
2,335,924
Other non-interest-bearing liabilities
54,100
82,416
Total liabilities
6,263,685
4,737,207
Stockholders' equity
564,495
351,945
Total liabilities and equity
$
6,828,180
$
5,089,152
Net interest income
$
101,934
$
71,396
Net interest rate spread (3)
2.65
%
2.47
%
Net interest margin (4)
3.00
%
2.83
%
Total cost of deposits (5)
0.24
%
0.29
%
Total cost of funds (6)
0.27
%
0.34
%
____________________ (1) 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 table:
Quarterly Data
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
(dollars in thousands, except per share
data)
2022
2022
2021
2021
2021
Average assets
$
6,736,800
$
6,920,575
$
6,781,313
$
5,916,548
$
5,504,686
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible assets
$
6,727,067
$
6,910,842
$
6,771,580
$
5,906,815
$
5,494,953
Average equity
$
567,931
$
561,020
$
552,126
$
394,787
$
357,097
Less: average preferred equity
—
—
1,834
5,502
5,502
Average common equity
$
567,931
$
561,020
$
550,292
$
389,285
$
351,595
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible common equity
$
558,198
$
551,287
$
540,559
$
379,552
$
341,862
Return on average tangible common equity
(1), (2)
16.7
%
14.0
%
13.9
%
16.9
%
15.6
%
Total assets
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
$
5,787,193
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible assets
$
6,857,309
$
6,617,207
$
7,106,625
$
6,131,521
$
5,777,460
Total equity
$
574,306
$
560,030
$
556,989
$
542,654
$
363,595
Less: preferred equity
—
—
—
5,502
5,502
Common equity
$
574,306
$
560,030
$
556,989
$
537,152
$
358,093
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible common equity (book value)
$
564,573
$
550,297
$
547,256
$
527,419
$
348,360
Common shares outstanding
10,931,697
10,931,697
10,925,029
10,644,193
8,344,193
Book value per share (GAAP)
$
52.54
$
51.23
$
50.98
$
50.46
$
42.92
Tangible book value per share (non-GAAP)
(3)
$
51.65
$
50.34
$
50.09
$
49.55
$
41.75
____________________ (1) Ratios are annualized. (2) Net income
divided by average tangible common equity. (3) 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/20220721005930/en/
Greg Sigrist EVP & Chief Financial Officer Metropolitan
Commercial Bank (212) 365-6721 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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