Revenues Increased 48.1%
Year-Over-Year
Loans Increased 28.1% Year-Over-Year
Return on Average Tangible Common Equity1 of
17.1%
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the
holding company for Metropolitan Commercial Bank (the “Bank”),
reported net income of $25.0 million, or $2.23 per diluted common
share, for the third quarter of 2022 compared to net income of
$16.2 million, or $1.77 per diluted common share, for the third
quarter of 2021.
Quarterly Financial Highlights Year-Over-Year:
- Net interest income of $63.3 million, an increase of
55.2%.
- Net income of $25.0 million, an increase of 53.9%.
- Diluted earnings per share of $2.23, an increase of 26.0%.
- Net interest margin of 3.85%, an increase of 115 basis
points.
- Loans totaled $4.6 billion, an increase of 28.1%.
- Deposits were $5.7 billion, an increase of 5.0%.
- Book value per share was $53.26, up 5.5%, and tangible book
value per share1 was $52.37, up 5.7%.
- Return on average equity of 16.8% and return on average
tangible common equity1 of 17.1%.
- Efficiency ratio2 improved to 45.1% compared to 47.1%.
Mark DeFazio, President and Chief Executive Officer,
commented,
“I am very pleased with our third quarter and year-to-date
results. MCB continues to generate strong loan growth and leverage
capital efficiently to drive strong returns, which is evident in
our 17.1% ROATCE for the third quarter of 2022. Though the current
economic outlook will be challenging for our industry, I am
confident MCB will maintain its discipline toward margin management
and asset quality.
“Operating a branch-lite franchise since inception has led MCB
to develop many deposit verticals, which affords us optionality in
times where liquidity in the industry is at a premium and pricing
is a challenge. This optionality combined with our pricing
discipline allows us to better maintain our net interest margin
through the rate cycle as we continue to grow.
“Our overall efficiencies also allow us to leverage our platform
effectively. The next several quarters will be interesting, but MCB
has a business platform that can thrive during these times as we
have in other challenging economic periods over the past two
decades.
“I want to thank the entire MCB team and our Board for their
steadfast support and attention to our continued success.”
1 Annualized. Non-GAAP financial measure. See Reconciliation of
Non-GAAP Measures on page 12. 2 Total non-interest expense divided
by Total revenues.
Balance Sheet
The Company had total assets of $6.4 billion at September 30,
2022, a decrease of $445.0 million, or 6.5%, from June 30, 2022,
and an increase of $280.8 million, or 4.6% from September 30,
2021.
Total cash and cash equivalents were $708.8 million at September
30, 2022, a decrease of $633.1 million, or 47.2%, from June 30,
2022 and a decrease of $1.1 billion, or 61.8%, from September 30,
2021. The decrease from June 30, 2022, reflected the $242.1 million
deployment into loans and the $446.9 million outflow of deposits.
The decrease from September 30, 2021, reflected the $1.4 billion
deployment into loans and securities offset by $274.0 million in
deposit growth.
Total loans, net of deferred fees and unamortized costs, were
$4.6 billion, an increase of $242.1 million, or 5.5%, from June 30,
2022, and an increase of $1.0 billion, or 28.1% from September 30,
2021. Loan production was $423.6 million for the third quarter of
2022 compared to $512.8 million for the prior linked quarter and
$312.9 million for the prior year period. The increase in total
loans from June 30, 2022, was due primarily to an increase of
$138.9 million in commercial real estate (“CRE”) loans (including
owner-occupied) and $88.5 million in commercial and industrial
(“C&I”) loans. The increase in total loans from September 30,
2021, was due primarily to an increase of $683.0 million in CRE
loans (including owner-occupied) and $257.9 million in C&I
loans.
Total securities were $946.7 million at September 30, 2022, a
decrease of 5.2% from June 30, 2022, and an increase of 55.8% from
September 30, 2021. The decrease from June 30, 2022 reflected the
increase in unrealized losses on available-for-sale securities due
to the prevailing interest rate environment. The increase from
September 30, 2021 was due primarily to the use of excess liquidity
to purchase additional securities.
Total deposits were $5.7 billion, a decrease of $446.9 million,
or 7.2% from June 30, 2022, and an increase of $274.0 million or
5.0% from September 30, 2021. The decrease from June 30, 2022, was
primarily due to a decrease of $485.9 million in digital currency
business deposits, partially offset by an aggregate net increase of
$39.0 million in all other deposit verticals. The increase in
deposits from September 30, 2021, was primarily due to an increase
of $333.3 million and $259.1 million in retail and fintech BaaS
deposits, partially offset by a decrease of $226.6 million in
bankruptcy trustee deposits. Non-interest-bearing demand deposits
were 53.4% of total deposits at September 30, 2022, compared to
56.2% at June 30, 2022 and 51.4% at September 30, 2021.
Accumulated other comprehensive loss, net of tax, was $53.8
million, an increase of $19.1 million, from June 30, 2022, and
$51.0 million from September 30, 2021. The increases were due to
the prevailing interest rate environment which increased the
unrealized losses on available-for-sale securities, partially
offset by the increases in unrealized gains on cash flow hedges
prior to their termination.
In 2020, the Company entered into an interest rate cap
derivative contract as a part of its asset liability management
strategy to help manage its interest rate risk position. The
interest rate cap was designated as a cash flow hedge of certain
deposit liabilities. In the third quarter of 2022, the Company
terminated the interest rate cap and monetized the gain on the
derivative. The unrecognized value of $12.7 million at termination
will be released from Accumulated Other Comprehensive Income and
recorded as a credit to Licensing fees expense through March
2025.
At September 30, 2022, the Company had available borrowing
capacity of $909.4 million from the Federal Home Loan Bank, and an
available line of credit of $109.3 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 343.3% of total risk-based
capital at September 30, 2022, compared to 337.4% and 349.1% at
June 30, 2022 and September 30, 2021, 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)
2022
2022
2021
2022
2021
Total revenues (1)
$
69,143
$
62,300
$
46,683
$
185,502
$
128,829
Net income
24,955
23,189
16,215
67,165
41,668
Diluted earnings per common share
2.23
2.07
1.77
5.98
4.76
Return on average assets (2)
1.51
%
1.38
%
1.09
%
1.33
%
1.04
%
Return on average equity (2)
16.8
%
16.4
%
16.3
%
15.7
%
15.2
%
Return on average tangible common equity
(2), (3)
17.1
%
16.7
%
16.9
%
16.1
%
15.9
%
(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 third quarter of 2022 was $63.3
million, an increase of $8.0 million from the prior linked quarter
and $22.5 million from the prior year period reflecting the
increase in prevailing interest rates and the shift in asset mix to
higher-yielding interest earning assets. The increase from the
prior linked quarter was primarily due to the $272.2 million
increase in the average balance of loans and the 43 basis point
increase in the average yield for loans partially offset by the
$487.5 million decrease in the average balance of overnight
deposits and a higher cost of funds. The increase from the prior
year period was primarily due to the $1.4 billion increase in the
average balance of loans and securities and the 65 basis point and
204 basis point increases in average yield for loans and overnight
deposits, respectively, partially offset by a higher cost of
funds.
Net Interest Margin
Net interest margin for the third quarter of 2022 was 3.85%
compared to 3.27% and 2.70% for the prior linked quarter and prior
year period, respectively. The 58 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 partially offset by the
decrease in the average balance of overnight deposits and a higher
cost of funds. The 115 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, partially offset by a higher cost of funds.
Total cost of funds for the third quarter of 2022 was 45 basis
points compared to 25 basis points and 31 basis points for the
prior linked quarter and prior year period, respectively, which
reflect the increase in prevailing interest rates.
Non-Interest Income
Non-interest income was $5.8 million for the third quarter of
2022, a decrease of $1.2 million from the prior linked quarter,
driven by lower Global Payments Group revenues due to lower digital
currency business transactions during the quarter, partially offset
by higher fintech Banking-as-a-Service transactions.
Non-Interest Expense
Non-interest expense was $31.2 million for the third quarter of
2022, an increase of $4.9 million and $9.2 million from the prior
linked quarter and prior year period, respectively. The increases
from the prior periods are driven by an increase in professional
fees due to elevated legal fees, as well as an increase in
compensation and benefits due to the increase in the number of
full-time employees which is in line with revenue growth.
Income Tax Expense
The estimated effective tax rate for the third quarter of 2022
was 30.6% compared to 31.0% and 33.0% for the prior linked quarter
and prior year period, respectively.
Asset Quality
Credit quality remains strong as there were no charge-offs
during the third quarter of 2022 and non-performing loans to total
loans was 0.00% at September 30, 2022 compared to 0.00% at June 30,
2022 and 0.43% at September 30, 2021, respectively.
The Company recorded a provision of $2.0 million for the third
quarter of 2022 compared to $2.4 million and $490,000 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, October 21, 2022, to discuss third quarter 2022
results. To access the event by telephone, please dial 800-245-3047
(US), 785-424-1699 (INTL), and provide conference ID: MCBQ322
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, Top 50 Community Banks by
S&P, Top 20 Commercial Lenders by ICBA for banks with an asset
size of more than $1 billion, and is 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, 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)
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
(in thousands)
2022
2022
2022
2021
2021
Assets
Cash and due from banks
$
28,929
$
33,143
$
32,483
$
28,864
$
32,660
Overnight deposits
679,849
1,308,738
1,381,475
2,330,486
1,824,820
Total cash and cash equivalents
708,778
1,341,881
1,413,958
2,359,350
1,857,480
Investment securities available for
sale
423,265
465,661
505,728
566,624
603,168
Investment securities held to maturity
521,376
530,740
467,893
382,099
2,017
Equity investment securities, at fair
value
2,027
2,107
2,173
2,273
2,289
Total securities
946,668
998,508
975,794
950,996
607,474
Other investments
17,484
17,357
15,989
11,998
11,998
Loans, net of deferred fees and
unamortized costs
4,617,304
4,375,165
4,121,443
3,731,929
3,603,288
Allowance for loan losses
(42,541)
(40,534)
(38,134)
(34,729)
(38,121)
Net loans
4,574,763
4,334,631
4,083,309
3,697,200
3,565,167
Receivables from global payments business,
net
75,457
68,214
62,129
39,864
48,302
Accrued interest receivable
20,370
18,203
16,186
15,195
13,504
Premises and equipment, net
31,503
17,933
16,434
15,116
14,031
Prepaid expenses and other assets
37,305
60,582
33,408
16,906
13,565
Goodwill
9,733
9,733
9,733
9,733
9,733
Total assets
$
6,422,061
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
Liabilities and Stockholders'
Equity
Deposits
Non-interest-bearing demand deposits
$
3,058,014
$
3,470,325
$
3,176,048
$
3,668,673
$
2,803,823
Interest-bearing deposits
2,673,509
2,708,075
2,763,315
2,766,899
2,653,746
Total deposits
5,731,523
6,178,400
5,939,363
6,435,572
5,457,569
Trust preferred securities
20,620
20,620
20,620
20,620
20,620
Subordinated debt, net of issuance
cost
—
—
—
24,712
24,698
Secured borrowings
26,912
32,044
32,322
32,461
35,559
Accounts payable, accrued expenses and
other liabilities
50,969
37,774
50,216
36,411
38,129
Accrued interest payable
405
367
297
746
448
Prepaid third-party debit cardholder
balances
9,395
23,531
24,092
8,847
21,577
Total liabilities
5,839,824
6,292,736
6,066,910
6,559,369
5,598,600
Class B preferred stock
—
—
—
—
3
Common stock
109
109
109
109
106
Additional paid in capital
387,406
385,369
383,327
382,999
382,922
Retained earnings
248,550
223,595
200,406
181,385
162,498
Accumulated other comprehensive gain
(loss), net of tax effect
(53,828)
(34,767)
(23,812)
(7,504)
(2,875)
Total stockholders’ equity
582,237
574,306
560,030
556,989
542,654
Total liabilities and stockholders’
equity
$
6,422,061
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
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)
2022
2022
2021
2022
2021
Total interest income
$
70,057
$
59,158
$
45,018
$
180,185
$
124,173
Total interest expense
6,732
3,856
4,226
14,926
11,986
Net interest income
63,325
55,302
40,792
165,259
112,187
Provision for loan losses
2,007
2,400
490
7,807
3,315
Net interest income after provision for
loan losses
61,318
52,902
40,302
157,452
108,872
Non-interest income
Service charges on deposit accounts
(1)
1,445
1,474
1,344
4,289
3,442
Global Payments Group revenue (1)
4,099
5,242
3,942
14,998
11,152
Other service charges and fees
364
355
614
1,225
1,484
Unrealized gain (loss) on equity
securities
(90)
(73)
(9)
(269)
(45)
Gain (loss) on sale of securities
—
—
—
—
609
Total non-interest income
5,818
6,998
5,891
20,243
16,642
Non-interest expense
Compensation and benefits
14,568
13,415
11,269
41,404
33,907
Bank premises and equipment
2,228
2,264
2,038
6,608
6,063
Professional fees
6,086
1,692
1,877
9,252
5,183
Technology costs
984
1,144
1,090
3,527
3,464
Licensing fees
2,823
2,686
2,201
7,803
6,342
Other expenses
4,501
5,068
3,509
13,484
9,036
Total non-interest expense
31,190
26,269
21,984
82,078
63,995
Net income before income tax expense
35,946
33,631
24,209
95,617
61,519
Income tax expense
10,991
10,442
7,994
28,452
19,851
Net income
$
24,955
$
23,189
$
16,215
$
67,165
$
41,668
Earnings per common share:
Average common shares outstanding:
Basic
10,931,697
10,931,697
8,618,973
10,927,711
8,402,594
Diluted
11,177,152
11,189,807
8,893,104
11,204,735
8,636,397
Basic earnings
$
2.28
$
2.12
$
1.82
$
6.13
$
4.89
Diluted earnings
$
2.23
$
2.07
$
1.77
$
5.98
$
4.76
(1) Certain prior period amounts have been reclassified for
consistency with the current period presentation.
Loan Production, Asset Quality &
Regulatory Capital
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
2022
2022
2022
2021
2021
LOAN PRODUCTION (in millions)
$
423.6
$
512.8
$
488.9
$
411.0
$
312.9
ASSET QUALITY (in thousands)
Non-accrual loans:
Commercial real estate
$
—
$
—
$
—
$
9,984
$
9,984
Commercial and industrial
—
—
—
—
3,145
Consumer
24
24
24
37
1,674
Total non-accrual loans
$
24
$
24
$
24
$
10,021
$
14,803
Total non-performing loans
$
24
$
24
$
24
$
10,286
$
15,376
Non-accrual loans to total loans
—
%
—
%
—
%
0.27
%
0.41
%
Non-performing loans to total loans
—
%
—
%
—
%
0.28
%
0.43
%
Allowance for loan losses
$
42,541
$
40,534
$
38,134
$
34,729
$
38,121
Allowance for loan losses to total
loans
0.92
%
0.93
%
0.93
%
0.93
%
1.06
%
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.
9.9
%
9.2
%
8.6
%
8.5
%
9.4
%
Metropolitan Commercial Bank
9.7
%
9.1
%
8.5
%
8.4
%
9.3
%
Common Equity Tier 1 Risk-Based
(CET1):
Metropolitan Bank Holding Corp.
12.9
%
13.0
%
13.3
%
14.1
%
14.1
%
Metropolitan Commercial Bank
13.1
%
13.2
%
13.6
%
14.4
%
14.6
%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.
13.3
%
13.4
%
13.7
%
14.6
%
14.8
%
Metropolitan Commercial Bank
13.1
%
13.2
%
13.6
%
14.4
%
14.6
%
Total Risk-Based:
Metropolitan Bank Holding Corp.
14.2
%
14.3
%
14.6
%
16.1
%
16.5
%
Metropolitan Commercial Bank
14.0
%
14.1
%
14.5
%
15.2
%
15.6
%
Performance Measures
Three months ended
Nine months ended
(dollars in thousands,
Sept. 30,
Jun. 30,
Sept. 30,
Sept. 30,
Sept. 30,
except per share data)
2022
2022
2021
2022
2021
Net income available to common
shareholders
$
24,887
$
23,126
$
15,707
$
67,013
$
41,100
Per common share:
Basic earnings
$
2.28
$
2.12
$
1.82
$
6.13
$
4.89
Diluted earnings
$
2.23
$
2.07
$
1.77
$
5.98
$
4.76
Common shares outstanding:
Period end
10,931,697
10,931,697
10,644,193
10,931,697
10,644,193
Average fully diluted
11,177,152
11,189,807
8,893,104
11,204,735
8,636,397
Return on: (1)
Average total assets
1.51
%
1.38
%
1.09
%
1.33
%
1.04
%
Average equity
16.8
%
16.4
%
16.3
%
15.7
%
15.2
%
Average tangible common equity (2)
17.1
%
16.7
%
16.9
%
16.1
%
15.9
%
Yield on average earning assets
4.26
%
3.50
%
2.99
%
3.59
%
3.11
%
Total cost of deposits
0.44
%
0.24
%
0.27
%
0.30
%
0.29
%
Net interest spread
3.25
%
2.95
%
2.35
%
2.86
%
2.45
%
Net interest margin
3.85
%
3.27
%
2.70
%
3.29
%
2.81
%
Net charge-offs as % of average loans
(1)
—
%
—
%
(0.03)
%
—
%
0.02
%
Efficiency ratio(3)
45.1
%
42.2
%
47.1
%
44.25
%
49.67
%
(1) Ratios are annualized. (2) Non-GAAP financial measure. See
Reconciliation of Non-GAAP Measures on page 12. (3) Total
non-interest expense divided by total revenues
Interest Margin Analysis
Three months ended
Sept. 30, 2022
Jun. 30, 2022
Sept. 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)
$
4,504,260
$
60,570
5.30
%
$
4,232,016
$
52,185
4.87
%
$
3,566,852
$
42,730
4.65
%
Available-for-sale securities
521,378
1,651
1.27
540,100
1,643
1.22
538,115
1,454
1.06
Held-to-maturity securities
527,050
2,466
1.87
489,082
2,056
1.68
2,120
9
1.66
Equity investments
2,342
9
1.47
2,334
7
1.25
2,316
6
1.01
Overnight deposits
913,566
5,114
2.19
1,401,027
2,994
0.85
1,738,102
666
0.15
Other interest-earning assets
17,360
247
5.69
17,357
273
6.29
11,991
153
5.06
Total interest-earning assets
6,485,956
70,057
4.26
6,681,916
59,158
3.50
5,859,496
45,018
2.99
Non-interest-earning assets
108,643
93,597
95,181
Allowance for loan losses
(41,494)
(38,713)
(38,129)
Total assets
$
6,553,105
$
6,736,800
$
5,916,548
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
2,572,111
6,407
0.99
$
2,716,676
3,583
0.53
$
2,501,757
3,524
0.56
Certificates of deposit
51,363
98
0.76
62,247
123
0.80
82,628
192
0.92
Total interest-bearing deposits
2,623,474
6,505
0.98
2,778,923
3,706
0.53
2,584,385
3,716
0.57
Borrowed funds
20,555
227
4.41
20,621
150
2.91
45,309
510
4.40
Total interest-bearing liabilities
2,644,029
6,732
1.01
2,799,544
3,856
0.55
2,629,694
4,226
0.64
Non-interest-bearing liabilities:
Non-interest-bearing deposits
3,243,664
3,290,328
2,814,335
Other non-interest-bearing liabilities
75,471
78,997
77,732
Total liabilities
5,963,164
6,168,869
5,521,761
Stockholders' equity
589,941
567,931
394,787
Total liabilities and equity
$
6,553,105
$
6,736,800
$
5,916,548
Net interest income
$
63,325
$
55,302
$
40,792
Net interest rate spread (3)
3.25
%
2.95
%
2.35
%
Net interest margin (4)
3.85
%
3.27
%
2.70
%
Total cost of deposits (5)
0.44
%
0.24
%
0.27
%
Total cost of funds (6)
0.45
%
0.25
%
0.31
%
(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.
Nine months ended
Sept. 30, 2022
Sept. 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)
$
4,214,957
$
159,291
5.03
%
$
3,365,602
$
118,803
4.70
%
Available-for-sale securities
542,099
4,942
1.22
%
453,105
$
3,409
0.99
%
Held-to-maturity securities
488,058
6,260
1.71
%
2,362
$
30
1.67
%
Equity investments
2,335
22
1.25
%
2,309
$
21
1.20
%
Overnight deposits
1,424,119
9,024
0.84
%
1,485,994
$
1,453
0.13
%
Other interest-earning assets
16,030
647
5.38
%
11,864
$
457
5.15
%
Total interest-earning assets
6,687,598
180,185
3.59
%
5,321,236
124,173
3.11
%
Non-interest-earning assets
86,682
83,582
Allowance for loan losses
(38,799)
(36,820)
Total assets
$
6,735,481
$
5,367,998
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Money market and savings accounts
$
2,642,465
$
13,453
0.68
%
$
2,294,311
$
9,779
0.57
%
Certificates of deposit
63,074
383
0.81
%
84,363
$
673
1.07
%
Total interest-bearing deposits
2,705,539
13,836
0.68
%
2,378,674
10,452
0.59
%
Borrowed funds
27,099
1,090
5.36
%
45,296
1,534
4.47
%
Total interest-bearing liabilities
2,732,638
14,926
0.73
%
2,423,970
11,986
0.66
%
Non-interest-bearing liabilities:
Non-interest-bearing deposits
3,368,470
2,496,791
Other non-interest-bearing liabilities
61,303
80,838
Total liabilities
6,162,411
5,001,599
Stockholders' equity
573,070
366,399
Total liabilities and equity
$
6,735,481
$
5,367,998
Net interest income
$
165,259
$
112,187
Net interest rate spread (3)
2.86
%
2.45
%
Net interest margin (4)
3.29
%
2.81
%
Total cost of deposits (5)
0.30
%
0.29
%
Total cost of funds (6)
0.33
%
0.33
%
(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
Sept. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sept. 30,
(dollars in thousands, except per share
data)
2022
2022
2022
2021
2021
Average assets
$
6,553,105
$
6,736,800
$
6,920,575
$
6,781,313
$
5,916,548
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible assets
$
6,543,372
$
6,727,067
$
6,910,842
$
6,771,580
$
5,906,815
Average equity
$
589,941
$
567,931
$
561,020
$
552,126
$
394,787
Less: average preferred equity
—
—
—
1,834
5,502
Average common equity
$
589,941
$
567,931
$
561,020
$
550,292
$
389,285
Less: average intangible assets
9,733
9,733
9,733
9,733
9,733
Average tangible common equity
$
580,208
$
558,198
$
551,287
$
540,559
$
379,552
Return on average tangible common equity
(1), (2)
17.1
%
16.7
%
14.0
%
13.9
%
16.9
%
Total assets
$
6,422,061
$
6,867,042
$
6,626,940
$
7,116,358
$
6,141,254
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible assets
$
6,412,328
$
6,857,309
$
6,617,207
$
7,106,625
$
6,131,521
Total equity
$
582,237
$
574,306
$
560,030
$
556,989
$
542,654
Less: preferred equity
—
—
—
—
5,502
Common equity
$
582,237
$
574,306
$
560,030
$
556,989
$
537,152
Less: intangible assets
9,733
9,733
9,733
9,733
9,733
Tangible common equity (book value)
$
572,504
$
564,573
$
550,297
$
547,256
$
527,419
Common shares outstanding
10,931,697
10,931,697
10,931,697
10,925,029
10,644,193
Book value per share (GAAP)
$
53.26
$
52.54
$
51.23
$
50.98
$
50.46
Tangible book value per share (non-GAAP)
(3)
$
52.37
$
51.65
$
50.34
$
50.09
$
49.55
(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/20221020006028/en/
Greg Sigrist EVP & Chief Financial Officer Metropolitan
Commercial Bank (212) 365-6721 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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