Metropolitan Bank Holding Corp. Reports Core Earnings Growth and Sustained Growth in Loans and Deposits

NEW YORK--()--Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to $5.9 million, or $0.70 per diluted common share, for the second quarter of 2018.

For the six months ended June 30, 2019, the Company reported net income of $14.6 million, or $1.72 per diluted common share, compared to $12.2 million, or $1.46 per diluted common share, for the six months ended June 30, 2018.

Financial Highlights for the second quarter of 2019 include:

  • GAAP net income decreased $2.4 million to $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to GAAP net income of $8.5 million, or $1.01 per diluted common share, for the first quarter of 2019. Core earnings (a non-GAAP measure) increased $471,000 to $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to core earnings of $5.6 million, or $0.66 per diluted common share, for the first quarter of 2019. Core earnings excludes the $2.9 million (on an after-tax basis) recovery of loan losses, in the first quarter of 2019, related to taxi medallion loans. See reconciliation to GAAP measures on page 15.
  • Total assets increased $778.0 million or 35.6% to $2.96 billion at June 30, 2019, as compared to $2.18 billion at December 31, 2018. Total assets increased $415.4 million or 16.3% to $2.96 billion at June 30, 2019, as compared to $2.55 billion at March 31, 2019.
  • Total loans increased $470.4 million, or 25.2%, to $2.34 billion at June 30, 2019, as compared to $1.87 billion at December 31, 2018. For the three and six months ended June 30, 2019, the Bank’s organic loan production was $299.7 million and $571.9 million, respectively, as compared to $153.8 million and $390.6 million for the three and six months ended June 30, 2018, respectively. Total loans increased $233.2 million or 11.1% to $2.34 billion at June 30, 2019, as compared to $2.10 billion at March 31, 2019.
  • Total deposits increased $715.6 million, or 43.1%, to $2.38 billion at June 30, 2019, as compared to $1.66 billion at December 31, 2018. This growth in deposits was across the Bank’s deposit verticals.
  • The loan-to-deposit ratio decreased to 98.3% at June 30, 2019, as compared to 112.3% at December 31, 2018.
  • Non-interest-bearing deposits increased 38.2% to $1.10 billion at June 30, 2019, as compared to $798.6 million at December 31, 2018. Interest-bearing deposits increased 47.7% to $1.27 billion at June 30, 2019 as compared to $862.0 million at December 31, 2018.
  • Net interest margin decreased 12 basis points to 3.47% for the second quarter of 2019 from 3.59% for the second quarter of 2018. For the six months ended June 30, 2019, net interest margin decreased to 3.57%, as compared to 3.63% for the same period in 2018.
  • The provision for loan losses for the second quarter of 2019 was $2.0 million, as compared to $1.3 million for the second quarter of 2018. The provision for loan losses for the six months ended June 30, 2019 was a credit of $81,000, as compared to $2.7 million for six months ended June 30, 2018. The negative provision for loan losses for the six months ended June 30, 2019 consisted of a $4.2 million provision recorded as a result of the record loan growth during 2019, and recoveries of $4.3 million, of which $4.2 million related to the taxi medallion loans

Mark R. DeFazio, the Company’s President and Chief Executive Officer, commented, “I am pleased with the sustainable growth in loans and deposits. We were modestly affected by margin compression this quarter as we continue to work on various new deposit strategies that will drive lower funding costs and address the flattening of the yield curve. While the growth in our new deposit verticals has resulted in additional costs ahead of revenue due to the inverted yield curve, these new initiatives will yield enhanced profitability and stability to the MCB franchise, which will become increasingly evident over time.”

Mr. DeFazio continued, “Since the inception of MCB 20 years ago we have developed significant diversification on both sides of the balance sheet. This strategy has defended the bank through volatile interest rate environments as well as market conditions that affect asset quality. We expect this strategy to prove its value again as we continue to deal with a difficult yield curve. As we stay very focused on our core strategy, we expect to continue to take market share from larger regional banks.”

Balance Sheet

The Company had total assets of $2.96 billion at June 30, 2019, compared with $2.18 billion at December 31, 2018. Loans, net of deferred fees and unamortized costs, increased to $2.34 billion at June 30, 2019 as compared to $1.87 billion at December 31, 2018. For the three and six months ended June 30, 2019, the Bank’s loan production was $299.7 million and $571.9 million, respectively, as compared to $153.8 million and $390.6 million for the three and six months ended June 30, 2018, respectively.

Total cash and cash equivalents increased $200.4 million, or 86.0%, to $433.4 million at June 30, 2019, as compared to $233.0 million at December 31, 2018. Total securities, primarily those classified as available-for-sale increased to $137.1 million, or 269.4% at June 30, 2019, as compared to $37.1 million at December 31, 2018. The increases in cash and cash equivalents and securities were primarily due to the strong growth in deposits of $715.6, partially offset by growth in loans of $470.4 million at June 30, 2019, as compared to December 31, 2018.

Total deposits increased $715.6 million, or 43.1%, to $2.38 billion at June 30, 2019, as compared to $1.66 billion at December 31, 2018. This was due to increases of $410.9 million in interest-bearing demand deposits and $304.7 million in non-interest-bearing deposits.

Total borrowings increased by $5.0 million to $235.2 million at June 30, 2019, as compared to $230.2 million at December 31, 2018. This was due to an increase of $5.0 million in Federal Home Loan Bank advances, which were used to support the Bank’s loan growth.

Total stockholders’ equity was $281.3 million at June 30, 2019, as compared to $264.5 million at December 31, 2018. The increase of $16.8 million was primarily due to net income of $14.6 million for the six months ended June 30, 2019.

Metropolitan Commercial Bank meets all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. At June 30, 2019, total Commercial Real Estate Loans (“CRE”) were 372.5% of risk-based capital, as compared to 312.4% at December 31, 2018.

Income Statement

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(dollars in thousands)

   

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

   

 

$

6,057

 

 

$

5,865

 

 

$

14,588

 

 

$

12,156

 

Diluted earnings per common share

   

 

 

0.71

 

 

 

0.70

 

 

 

1.72

 

 

 

1.46

 

Annualized return on average assets

   

 

 

0.91

%

 

 

1.20

%

 

 

1.18

%

 

 

1.28

%

Annualized return on average equity

   

 

 

8.71

%

 

 

9.53

%

 

 

10.66

%

 

 

10.00

%

Annualized return on average common equity*

   

 

 

8.89

%

 

 

9.75

%

 

 

10.88

%

 

 

10.23

%

*Common equity excludes Class B preferred stock. See reconciliation to GAAP measures on page 14.

Net Income Summary

Net income increased $192,000 to $6.1 million for the second quarter of 2019, as compared to $5.9 million for the same period in 2018. This increase was due primarily to a $5.5 million increase in net interest income, partially offset by $4.4 million increase in non-interest expense and a $680,000 increase in provision for loan losses.

Net income increased $2.4 million to $14.6 million for six months ended June 30, 2019, as compared to $12.2 million for the same period in 2018. This increase was due primarily to a $9.6 million increase in net interest income and a $2.8 million decrease in the provision for loan losses, partially offset by a $2.9 million decrease in non-interest income and a $5.9 million increase in non-interest expense.

Net Interest Margin Analysis

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Three months ended

 

 

   

 

June 30, 2019

 

June 30, 2018

 

 

   

 

Average

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

   

 

Outstanding

 

 

 

 

Yield/Rate

 

Outstanding

 

 

 

 

Yield/Rate

 

(dollars in thousands)

   

 

Balance

 

Interest

 

(annualized)

 

Balance

 

Interest

 

(annualized)

 

Assets:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

   

 

$

 

2,226,557

 

 

$

 

28,019

 

5.05

%

$

 

1,532,073

 

 

$

 

17,996

 

4.71

%

Available-for-sale securities

   

 

 

54,389

 

 

 

342

 

2.49

%

 

27,942

 

 

 

146

 

2.07

%

Held-to-maturity securities

   

 

 

4,287

 

 

 

22

 

2.01

%

 

5,096

 

 

 

27

 

2.09

%

Equity investments - non-trading

   

 

 

3,223

 

 

 

16

 

1.96

%

 

2,175

 

 

 

12

 

2.13

%

Overnight deposits

   

 

 

330,962

 

 

 

2,060

 

2.50

%

 

340,300

 

 

 

1,534

 

1.81

%

Other interest-earning assets

   

 

 

31,371

 

 

 

369

 

4.72

%

 

35,932

 

 

 

283

 

3.16

%

Total interest-earning assets

   

 

 

2,650,789

 

 

 

30,828

 

4.66

%

 

1,943,518

 

 

 

19,998

 

4.13

%

Non-interest-earning assets

   

 

 

38,093

 

 

 

 

 

 

 

 

20,134

 

 

 

 

 

 

 

Allowance for loan and lease losses

   

 

 

(21,466

)

 

 

 

 

 

 

 

(16,742

)

 

 

 

 

 

 

Total assets

   

 

$

 

2,667,416

 

 

 

 

 

 

 

$

 

1,946,910

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market, savings and other interest-bearing accounts

   

 

$

 

1,071,388

 

 

$

 

5,235

 

1.96

%

$

 

549,950

 

 

$

 

1,428

 

1.04

%

Certificates of deposit

   

 

 

112,538

 

 

 

701

 

2.50

%

 

84,636

 

 

 

371

 

1.76

%

Total interest-bearing deposits

   

 

 

1,183,926

 

 

 

5,936

 

2.01

%

 

634,586

 

 

 

1,799

 

1.14

%

Borrowed funds

   

 

 

242,493

 

 

 

1,955

 

3.19

%

 

80,772

 

 

 

804

 

3.99

%

Total interest-bearing liabilities

   

 

 

1,426,419

 

 

 

7,891

 

2.22

%

 

715,358

 

 

 

2,603

 

1.46

%

Non-interest-bearing liabilities:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

   

 

 

937,222

 

 

 

 

 

 

 

 

948,021

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

   

 

 

25,750

 

 

 

 

 

 

 

 

37,422

 

 

 

 

 

 

 

Total liabilities

   

 

 

2,389,391

 

 

 

 

 

 

 

 

1,700,801

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

   

 

 

278,025

 

 

 

 

 

 

 

 

246,109

 

 

 

 

 

 

 

Total liabilities and equity

   

 

$

 

2,667,416

 

 

 

 

 

 

 

$

 

1,946,910

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

   

 

 

 

 

$

 

22,937

 

 

 

 

 

 

$

 

17,395

 

 

 

Net interest rate spread (2)

   

 

 

 

 

 

 

 

2.44

%

 

 

 

 

 

 

2.67

%

Net interest-earning assets

   

 

$

 

1,224,370

 

 

 

 

 

 

 

$

 

1,228,160

 

 

 

 

 

 

 

Net interest margin (3)

   

 

 

 

 

 

 

 

3.47

%

 

 

 

 

 

 

3.59

%

Ratio of interest earning assets to interest bearing liabilities

   

 

 

 

 

 

 

 

1.86

x

 

 

 

 

 

 

2.72

x

(1)

 

Amount includes deferred loan fees and non-performing loans.

(2)

 

Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets.

(3)

 

Determined by dividing annualized net interest income by total average interest-earning assets.

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Six months ended

 

 

   

 

June 30, 2019

 

June 30, 2018

 

 

   

 

Average

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

   

 

Outstanding

 

 

 

 

 

 

Outstanding

 

 

 

 

 

 

(dollars in thousands)

   

 

Balance

 

Interest

 

Yield/Rate

 

Balance

 

Interest

 

Yield/Rate

 

Assets:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

   

 

$

 

2,100,546

 

 

$

 

53,069

 

5.09

%

$

 

1,504,695

 

 

$

 

35,208

 

4.72

%

Available-for-sale securities

   

 

 

42,521

 

 

 

546

 

2.55

%

 

28,801

 

 

 

301

 

2.08

%

Held-to-maturity securities

   

 

 

4,382

 

 

 

45

 

2.04

%

 

5,207

 

 

 

54

 

2.10

%

Equity investments - non-trading

   

 

 

3,216

 

 

 

39

 

2.41

%

 

2,169

 

 

 

23

 

2.13

%

Overnight deposits

   

 

 

280,216

 

 

 

3,449

 

2.48

%

 

304,686

 

 

 

2,577

 

1.71

%

Other interest-earning assets

   

 

 

27,866

 

 

 

670

 

4.85

%

 

35,838

 

 

 

528

 

2.97

%

Total interest-earning assets

   

 

 

2,458,747

 

 

 

57,818

 

4.74

%

 

1,881,396

 

 

 

38,691

 

4.15

%

Non-interest-earning assets

   

 

 

40,739

 

 

 

 

 

 

 

 

34,055

 

 

 

 

 

 

 

Allowance for loan and lease losses

   

 

 

(20,489

)

 

 

 

 

 

 

 

(16,057

)

 

 

 

 

 

 

Total assets

   

 

$

 

2,478,997

 

 

 

 

 

 

 

$

 

1,899,394

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market, savings and other interest-bearing accounts

   

 

$

 

980,365

 

 

$

 

9,271

 

1.91

%

$

 

532,301

 

 

$

 

2,619

 

0.99

%

Certificates of deposit

   

 

 

108,934

 

 

 

1,311

 

2.43

%

 

78,761

 

 

 

619

 

1.58

%

Total interest-bearing deposits

   

 

 

1,089,299

 

 

 

10,582

 

1.96

%

 

611,062

 

 

 

3,238

 

1.07

%

Borrowed funds

   

 

 

226,918

 

 

 

3,721

 

3.26

%

 

82,535

 

 

 

1,542

 

3.77

%

Total interest-bearing liabilities

   

 

 

1,316,217

 

 

 

14,303

 

2.19

%

 

693,597

 

 

 

4,780

 

1.39

%

Non-interest-bearing liabilities:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

   

 

 

864,470

 

 

 

 

 

 

 

 

919,990

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

   

 

 

24,598

 

 

 

 

 

 

 

 

42,608

 

 

 

 

 

 

 

Total liabilities

   

 

 

2,205,285

 

 

 

 

 

 

 

 

1,656,195

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

   

 

 

273,712

 

 

 

 

 

 

 

 

243,199

 

 

 

 

 

 

 

Total liabilities and equity

   

 

$

 

2,478,997

 

 

 

 

 

 

 

$

 

1,899,394

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

   

 

 

 

 

$

 

43,515

 

 

 

 

 

 

$

 

33,911

 

 

 

Net interest rate spread (2)

   

 

 

 

 

 

 

 

2.55

%

 

 

 

 

 

 

2.75

%

Net interest-earning assets

   

 

$

 

1,142,530

 

 

 

 

 

 

 

$

 

1,187,799

 

 

 

 

 

 

 

Net interest margin (3)

   

 

 

 

 

 

 

 

3.57

%

 

 

 

 

 

 

3.63

%

Ratio of interest earning assets to interest bearing liabilities

   

 

 

 

 

 

 

 

1.87

x

 

 

 

 

 

 

2.71

x

(1)

 

Amount includes deferred loan fees and non-performing loans.

(2)

 

Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets.

(3)

 

Determined by dividing annualized net interest income by total average interest-earning assets.

Net Interest Income

Interest income increased $10.8 million to $30.8 million for the second quarter of 2019, as compared to $20.0 million for the second quarter of 2018. This increase was due primarily to a $10.0 million increase in interest income on loans. The increase in interest income on loans was due to a $694.5 million increase in the average balance of loans to $2.23 billion and a 34 basis point increase in the average yield to 5.05% for the second quarter of 2019, as compared to 4.71% for the second quarter of 2018.

Interest income increased $19.1 million to $57.8 million for the six months ended June 30, 2019, as compared to $38.7 million for the six months ended June 30, 2018. This increase was due primarily to a $17.9 million increase in interest income on loans. The increase in interest income on loans was due to a $595.9 million increase in the average balance of loans to $2.10 billion and a 37 basis point increase in the average yield to 5.09% for the six months ended June 30, 2019.

Interest expense was $7.9 million for the second quarter of 2019, as compared to $2.6 million for the second quarter of 2018, an increase of $5.3 million. This increase was due to a $4.1 million increase in interest on deposits and a $1.2 million increase in interest on borrowings. The increase in interest expense on deposits was due primarily to a $549.3 million increase in the average balance of interest-bearing deposits to $1.18 billion for the second quarter of 2019 and an 87 basis point increase in the average cost of deposits to 2.01%. Interest expense on borrowings increased primarily due to an increase in the average balance of borrowings of $161.7 million to $242.5 million for the second quarter of 2019, as compared to $80.8 million for the second quarter of 2018.

Interest expense was $14.3 million for the six months ended June 30, 2019, as compared to $4.8 million for the six months ended June 30, 2018, an increase of $9.5 million. This increase was due primarily to a $7.3 million increase in interest on deposits and a $2.2 million increase in interest on borrowings. The increase in interest expense on deposits was due primarily to a $478.2 million increase in the average balance of interest-bearing deposits to $1.09 billion for the six months ended June 30, 2019 and an 89 basis point increase in the average cost of deposits to 1.96%. Interest expense on borrowings increased primarily due to increase in the average balance of borrowings of $144.4 million to $226.9 million for the six months ended June 30, 2019, as compared to $82.5 million for the six months ended June 30, 2018.

Net interest margin decreased 12 basis points to 3.47% for the second quarter of 2019 from 3.59% for the second quarter of 2018. Total average interest-earning assets increased $707.3 million for the second quarter of 2019 as compared to the second quarter of 2018, due primarily to a $694.5 million increase in the average balance of loans. The total yield on average interest-earning assets increased 53 basis points to 4.66% in the second quarter of 2019 as compared to 4.13% in the same period in 2018. The cost of interest-bearing liabilities increased 76 basis points to 2.22% for the second quarter of 2019, as compared to 1.46% for the second quarter of 2018. As the yield curve flattened and inverted over the last year, the cost of deposits and short-term borrowings grew at a higher rate than the yield on average interest earning assets, resulting in a lower net interest margin for the second quarter of 2019, as compared to the second quarter of 2018. In addition, non-interest-bearing deposits accounted for 44% of total average deposits in the second quarter of 2019 as compared to 60% in the second quarter of 2018. When compared to the second quarter of 2018, yields on interest-earning assets increased at a rate of 13%, while the cost of deposits and short-term borrowings grew at a rate of 52%.

Net interest margin decreased 7 basis point to 3.57% for the six months ended June 30, 2019 from 3.63% for the six months ended June 30, 2018. Total average interest-earning assets increased $577.4 million for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018, due primarily to a $595.9 million increase in the balance of loans and a $13.9 million increase in the average balance of securities, which was partially offset by a decrease of $32.4 million in average balance of overnight funds and other interest-earning assets. The total yield on average interest-earning assets increased 59 basis points to 4.74% in the six months ended June 30, 2019 as compared to 4.15% in the same period in 2018. The cost of interest-bearing liabilities increased 80 basis points to 2.19% for the six months ended June 30, 2019, as compared to 1.39% for the same period in 2018. As the yield curve flattened and inverted over the last year, the cost of deposits and short-term borrowings grew at a higher rate than the yield on average interest-earning assets, resulting in a lower net interest margin for the six months ended June 30, 2019, as compared to the same period in 2018. In addition, non-interest-bearing deposits accounted for 44% of total average deposits for the six months ended June 30, 2019 as compared to 60% for the six months ended June 30, 2018. When compared to the six months ended June 30, 2018, yields on interest-earning assets increased at a rate of 14%, while the cost of borrowing grew at a rate of 58%.

Asset Quality

Non-performing assets consist of non-accrual loans, accruing loans that are 90 days or more past due, consumer loans placed in forbearance with payments past due over 90 days and still accruing, non-accrual troubled debt restructurings and real estate owned (“REO”) that has been acquired in partial or full satisfaction of loan obligations or upon foreclosure. The Bank had no REO properties at June 30, 2019 and December 31, 2018.

 

   

 

 

 

 

 

 

 

 

   

 

 

 

(dollars in thousands)

   

 

June 30, 2019

 

December 31, 2018

 

Non-performing assets:

   

 

 

 

 

 

 

 

Non-accrual loans:

   

 

 

 

 

 

 

 

Commercial

   

 

$

 

$

 

One-to-four family

   

 

 

 

 

 

Commercial and industrial

   

 

 

 

 

 

Consumer

   

 

 

38

 

 

50

 

Total non-accrual loans

   

 

$

38

 

$

50

 

Accruing loans 90 days or more past due

   

 

 

1,074

 

 

239

 

Total non-performing loans and assets

   

 

$

1,112

 

$

289

 

Nonaccrual loans as % of loans outstanding

   

 

 

%

 

%

Non-performing loans as % of loans outstanding

   

 

 

0.05

%

 

0.02

%

Allowance for loan losses

   

 

$

(22,715

 

)

$

(18,942

Allowance for loan losses as % of loans outstanding

   

 

 

0.97

%

 

1.02

%

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Three months ended June 30,

 

 

Six months ended June 30,

(dollars in thousands)

   

 

2019

 

 

2018

 

 

2019

 

2018

Provision/(credit) for loan losses

   

 

$

 

1,950

 

 

$

 

1,270

 

 

$

 

(81

)

 

$

 

2,747

 

Charge-offs

   

 

$

 

69

 

 

$

 

67

 

 

$

 

416

 

 

$

 

224

 

Recoveries

   

 

$

 

 

 

$

 

 

 

$

 

(4,270

)

 

$

 

(53

)

Net charge-offs/(recoveries) as % of average loans (annualized)

   

 

 

0.01

%

 

 

0.02

%

 

 

(0.37

)%

 

 

0.02

%

The provision for loan losses for the second quarter of 2019 was $2.0 million, as compared to $1.3 million for 2018. The provision for loan losses for the six months ended June 30, 2019 was a credit of $81,000, as compared to $2.7 million for six months ended June 30, 2018. The negative provision for loan losses for the six months ended June 30, 2019 consisted of a $4.2 million provision recorded as a result of the record loan growth during 2019, and recoveries of $4.3 million, of which $4.2 million related to the taxi medallion loans.

Non-Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

(dollars in thousands)

 

2019

 

2018

 

2019

 

2018

Service charges on deposit accounts

 

$

 

908

 

$

 

821

 

 

$

 

1,727

 

$

 

2,731

 

Prepaid third-party debit card income

 

 

1,422

 

 

1,519

 

 

 

2,679

 

 

2,427

 

Other service charges and fees

 

 

313

 

 

346

 

 

 

591

 

 

2,840

 

Unrealized gain/(loss) of equity securities

 

 

31

 

 

 

 

 

70

 

 

Gains/(Losses) on sale of securities

 

 

 

 

(37

)

 

 

 

 

(37

)

Total non-interest income

 

$

 

2,674

 

$

 

2,649

 

 

$

 

5,067

 

$

 

7,961

 

Non-interest income was substantially unchanged at $2.7 million in the second quarter of 2019, as compared to $2.6 million in the second quarter of 2018.

Non-interest income decreased by $2.9 million to $5.1 million in the six months ended June 30, 2019, as compared to $8.0 million for the six months ended June 30, 2018, primarily due to decreases of $1.0 million in service charges on deposits and $2.2 million in other charges and fees, partially offset by an increase in debit card income of $252,000. The decrease in service charges on deposits was primarily due to a decline of $1.1 million in wire fees related to transactions by digital currency customers. The decrease in other service charges and fees was due to a $2.1 million decrease in foreign currency conversion fees, which were at an elevated level during first quarter of 2018 as customers, particularly those in the digital currency business, were transferring funds from their global corporate accounts back into their U.S. accounts with the Bank.

Non-Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

(dollars in thousands)

 

2019

 

2018

 

2019

 

2018

Compensation and benefits

 

$

7,921

 

$

6,126

 

$

15,411

 

$

12,443

Bank premises and equipment

 

 

1,348

 

 

1,288

 

 

2,683

 

 

2,468

Professional fees

 

 

917

 

 

841

 

 

1,711

 

 

1,619

Technology costs

 

 

2,618

 

 

609

 

 

4,003

 

 

2,115

Other expenses

 

 

1,920

 

 

1,411

 

 

3,610

 

 

2,868

Total non-interest expense

 

$

14,724

 

$

10,275

 

$

27,418

 

$

21,513

Non-interest expense increased $4.4 million to $14.7 million during the second quarter of 2019 as compared to $10.3 million for the second quarter of 2018. Compensation and benefits increased $1.8 million to $7.9 million for the second quarter of 2019 as compared to $6.1 million for the second quarter of 2018. This increase was due primarily to an increase of 24 full-time equivalent employees for the second quarter of 2019, as compared to the second quarter of 2018. This increase included 9 employees in back-office operations and risk management positions to support the Bank’s growth. Technology costs increased $2.0 million for the second quarter of 2019 as compared to the second quarter of 2018. For the second quarter of 2019, technology costs included licensing fees related to software interfaces for specialty deposit products of $1.8 million as compared to $185,000 for the second quarter of 2018, an increase of $1.6 million. Specialty deposits are designed for clients who are in possession of or have discretion over large deposits such as property management companies, title companies and bankruptcy trustees.

Non-interest expense increased $5.9 million to $27.4 million for the six months ended June 30, 2019 as compared to $21.5 million for the six months ended June 30, 2018. Compensation and benefits increased $3.0 million to $15.4 million for the six months ended June 30, 2019 as compared to $12.4 million for the six months ended June 30, 2018. This increase was due primarily to an increase of 24 full-time equivalent employees for the first six months of 2019 as compared to the first six months of 2018. This increase included 9 employees in back-office operations and risk management positions to support the Bank’s growth. Technology costs increased $1.9 million for the six months ended June 30, 2019 as compared to $2.1 million for the six months ended June 30, 2018. For the six months ended June 30, 2019, technology costs included licensing fees related to software interfaces for specialty deposit products of $2.8 million as compared to $309,000 for the six months ended June 30, 2018, an increase of $2.5 million. This increase was partially offset by a decrease of $704,000 in transaction costs related to the decreased volume of wire transactions by digital currency customers in the six months ended June 30, 2019 as compared to the six months ended June 30, 2018.

About Metropolitan Bank Holding Corporation

Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank. The Bank provides a broad range of business, commercial and personal banking products and services to small and middle-market businesses, public entities and affluent individuals in the New York metropolitan area. Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island. The Bank is also an active issuer of debit cards for third-party debit card programs. Metropolitan Commercial Bank is a New York State chartered commercial bank, a Federal Reserve System member bank whose deposits are insured up to applicable limits by the FDIC, and an equal opportunity lender. For more information, please visit www.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 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 those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K, as well as an unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth and our ability to manage such growth, unanticipated regulatory action, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel, an unanticipated loss of existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in Federal Deposit Insurance Corporation costs and unanticipated adverse changes in our customers’ economic conditions or economic conditions in our local area in general.

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

 

     

 

 

 

 

 

 

 

     

 

June 30, 2019

 

December 31, 2018

Assets

     

 

 

 

 

 

 

Cash and due from banks

     

 

$

 

9,115

 

 

$

 

9,246

 

Overnight deposits

     

 

 

424,276

 

 

 

223,704

 

Total cash and cash equivalents

     

 

 

433,391

 

 

 

232,950

 

Investment securities available for sale

     

 

 

130,755

 

 

 

30,439

 

Investment securities held to maturity

     

 

 

4,161

 

 

 

4,571

 

Investment securities -- Equity investments

     

 

 

2,193

 

 

 

2,110

 

Total securities

     

 

 

137,109

 

 

 

37,120

 

Other investments

     

 

 

22,972

 

 

 

22,287

 

Loans, net of deferred fees and unamortized costs

     

 

 

2,335,573

 

 

 

1,865,216

 

Allowance for loan losses

     

 

 

(22,715

)

 

 

(18,942

)

Net loans

     

 

 

2,312,858

 

 

 

1,846,274

 

Receivable from prepaid card programs, net

     

 

 

16,533

 

 

 

8,218

 

Accrued interest receivable

     

 

 

7,795

 

 

 

5,507

 

Premises and equipment, net

     

 

 

6,626

 

 

 

6,877

 

Prepaid expenses and other assets

     

 

 

10,967

 

 

 

8,158

 

Goodwill

     

 

 

9,733

 

 

 

9,733

 

Accounts receivable, net

     

 

 

2,629

 

 

 

5,520

 

Total assets

     

 

$

 

2,960,613

 

 

$

 

2,182,644

 

Liabilities and Stockholders' Equity

     

 

 

 

 

 

 

Deposits:

     

 

 

 

 

 

 

Noninterest-bearing demand deposits

     

 

$

 

1,103,278

 

 

$

 

798,563

 

Interest-bearing deposits

     

 

 

1,272,844

 

 

 

861,991

 

Total deposits

     

 

 

2,376,122

 

 

 

1,660,554

 

Federal Home Loan Bank of New York advances

     

 

 

190,000

 

 

 

185,000

 

Trust preferred securities

     

 

 

20,620

 

 

 

20,620

 

Subordinated debt, net of issuance cost

     

 

 

24,573

 

 

 

24,545

 

Accounts payable, accrued expenses and other liabilities

     

 

 

50,716

 

 

 

18,439

 

Accrued interest payable

     

 

 

1,535

 

 

 

1,282

 

Prepaid third-party debit cardholder balances

     

 

 

15,717

 

 

 

7,687

 

Total liabilities

     

 

 

2,679,283

 

 

 

1,918,127

 

 

     

 

 

 

 

 

 

Class B preferred stock

     

 

 

3

 

 

 

3

 

Common stock

     

 

 

82

 

 

 

82

 

Additional paid in capital

     

 

 

214,880

 

 

 

213,490

 

Retained earnings

     

 

 

65,818

 

 

 

51,415

 

Accumulated other comprehensive gain (loss), net of tax effect

     

 

 

547

 

 

 

(473

)

Total stockholders’ equity

     

 

 

281,330

 

 

 

264,517

 

Total liabilities and stockholders’ equity

     

 

$

 

2,960,613

 

 

$

 

2,182,644

 

Consolidated Statement of Income (unaudited)

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Three months ended June 30,

 

Six months ended June 30,

(dollars in thousands)

   

 

2019

 

2018

 

2019

 

2018

Total interest income

   

 

$

30,828

 

$

 

 

19,998

 

 

$

 

 

57,818

 

 

$

 

 

38,691

 

Total interest expense

   

 

 

7,891

 

 

2,603

 

 

 

14,303

 

 

 

4,780

 

Net interest income

   

 

 

22,937

 

 

17,395

 

 

 

43,515

 

 

 

33,911

 

Provision for loan losses

   

 

 

1,950

 

 

1,270

 

 

 

(81

)

 

 

2,747

 

Net interest income after provision for loan losses

   

 

 

20,987

 

 

16,125

 

 

 

43,596

 

 

 

31,164

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

   

 

 

908

 

 

821

 

 

 

1,727

 

 

 

2,731

 

Prepaid third-party debit card income

   

 

 

1,422

 

 

1,519

 

 

 

2,679

 

 

 

2,427

 

Other service charges and fees

   

 

 

313

 

 

346

 

 

 

591

 

 

 

2,840

 

Unrealized gain on equity securities

   

 

 

31

 

 

 

 

 

70

 

 

 

 

Losses on sale of securities

   

 

 

 

(37

)

 

 

 

 

 

(37

)

Total non-interest income

   

 

 

2,674

 

 

2,649

 

 

 

5,067

 

 

 

7,961

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

   

 

 

7,921

 

 

6,126

 

 

 

15,411

 

 

 

12,443

 

Bank premises and equipment

   

 

 

1,348

 

 

1,288

 

 

 

2,683

 

 

 

2,468

 

Professional fees

   

 

 

917

 

 

841

 

 

 

1,711

 

 

 

1,619

 

Technology costs

   

 

 

2,618

 

 

609

 

 

 

4,003

 

 

 

2,115

 

Other expenses

   

 

 

1,920

 

 

1,411

 

 

 

3,610

 

 

 

2,868

 

Total non-interest expense

   

 

 

14,724

 

 

10,275

 

 

 

27,418

 

 

 

21,513

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income tax expense

   

 

 

8,937

 

 

8,499

 

 

 

21,245

 

 

 

17,612

 

Income tax expense

   

 

 

2,880

 

 

2,634

 

 

 

6,657

 

 

 

5,456

 

Net income

   

 

$

6,057

 

$

 

 

5,865

 

 

$

 

 

14,588

 

 

$

 

 

12,156

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

   

 

 

8,173,487

 

 

8,129,487

 

 

 

8,171,360

 

 

 

8,126,772

 

Average common shares outstanding - diluted

   

 

 

8,336,064

 

 

8,290,048

 

 

 

8,320,866

 

 

 

8,283,606

 

Basic earnings

   

 

$

0.73

 

$

 

 

0.72

 

 

$

 

 

1.76

 

 

$

 

 

1.48

 

Diluted earnings

   

 

$

0.71

 

$

 

 

0.70

 

 

$

 

 

1.72

 

 

$

 

 

1.46

 

Summary of Income and Performance Measures

Five Quarter Trend (unaudited)

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Quarter Ended

 

(Dollars in thousands)

 

   

June 30, 2019

 

 

Mar. 31, 2019

 

Dec. 31, 2018

 

 

Sept. 30, 2018

 

June 30, 2018

 

Net interest income

 

   

$

 

22,937

 

 

$

 

20,578

 

 

$

 

18,961

 

 

$

 

18,351

 

 

$

 

17,395

 

Provision (credit) for loan losses

 

   

 

1,950

 

 

 

(2,031

)

 

 

844

 

 

 

(453

)

 

 

1,270

 

Net interest income after provision for loan losses

 

   

 

20,987

 

 

 

22,609

 

 

 

18,117

 

 

 

18,804

 

 

 

16,125

 

Non-interest income

 

   

 

2,674

 

 

 

2,393

 

 

 

2,188

 

 

 

2,012

 

 

 

2,649

 

Non-interest expense:

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

   

 

7,921

 

 

 

7,490

 

 

 

6,962

 

 

 

6,253

 

 

 

6,126

 

Other Expense

 

   

 

6,803

 

 

 

5,204

 

 

 

4,640

 

 

 

4,102

 

 

 

4,149

 

Total non-interest expense

 

   

 

14,724

 

 

 

12,694

 

 

 

11,602

 

 

 

10,355

 

 

 

10,275

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

   

 

8,937

 

 

 

12,308

 

 

 

8,703

 

 

 

10,461

 

 

 

8,499

 

Income tax expense

 

   

 

2,880

 

 

 

3,777

 

 

 

2,418

 

 

 

3,348

 

 

 

2,634

 

Net income

 

   

 

6,057

 

 

 

8,531

 

 

 

6,285

 

 

 

7,113

 

 

 

5,865

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Measures:

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

   

 

5,950

 

 

 

8,396

 

 

 

6,238

 

 

 

7,057

 

 

 

5,816

 

Per common share:

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

   

$

 

0.73

 

 

$

 

1.03

 

 

$

 

0.77

 

 

$

 

0.87

 

 

$

 

0.72

 

Diluted earnings

 

   

$

 

0.71

 

 

$

 

1.01

 

 

$

 

0.75

 

 

$

 

0.85

 

 

$

 

0.70

 

Common shares outstanding:

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average - diluted

 

   

 

8,336,064

 

 

 

8,285,220

 

 

 

8,273,220

 

 

 

8,292,385

 

 

 

8,290,048

 

Period end

 

   

 

8,320,816

 

 

 

8,320,816

 

 

 

8,217,274

 

 

 

8,207,234

 

 

 

8,205,234

 

Return on (annualized):

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

   

 

0.91

%

 

 

1.49

%

 

 

1.25

%

 

 

1.45

%

 

 

1.20

%

Average equity

 

   

 

8.71

%

 

 

12.67

%

 

 

9.59

%

 

 

11.22

%

 

 

9.53

%

Average common equity

 

   

 

8.89

%

 

 

12.93

%

 

 

9.80

%

 

 

11.47

%

 

 

9.75

%

Yield on average earning assets

 

   

 

4.66

%

 

 

4.83

%

 

 

4.65

%

 

 

4.49

%

 

 

4.13

%

Cost of interest-bearing liabilities

 

   

 

2.22

%

 

 

2.15

%

 

 

1.90

%

 

 

1.69

%

 

 

1.46

%

Net interest spread

 

   

 

2.44

%

 

 

2.68

%

 

 

2.75

%

 

 

2.80

%

 

 

2.67

%

Net interest margin

 

   

 

3.47

%

 

 

3.68

%

 

 

3.77

%

 

 

3.76

%

 

 

3.59

%

Net charge-offs (recoveries) as % of average loans (annualized)

 

   

 

0.01

%

 

 

(0.80

)%

 

 

0.09

%

 

 

(0.36

)%

 

 

0.02

%

Efficiency ratio

 

   

 

57.49

%

 

 

55.26

%

 

 

54.86

%

 

 

50.85

%

 

 

51.26

%

Consolidated Balance Sheet Summary, Five Quarter Trend (unaudited)

 

 

   

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

   

June 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sept. 30, 2018

June 30, 2018

Assets

 

   

 

 

 

 

 

 

 

 

 

 

Total Assets

 

   

$

 

2,960,613

 

$

 

2,545,186

 

$

 

2,182,644

 

$

 

1,930,714

 

$

 

1,924,495

 

Overnight deposits

 

   

 

424,276

 

 

346,674

 

 

223,704

 

 

148,260

 

 

240,994

 

Total securities

 

   

 

137,109

 

 

36,272

 

 

37,120

 

 

32,247

 

 

33,974

 

Other investments

 

   

 

22,972

 

 

23,652

 

 

22,287

 

 

16,645

 

 

16,770

 

Loans, net of deferred fees and unamortized costs

 

   

 

2,335,573

 

 

2,102,420

 

 

1,865,216

 

 

1,698,929

 

 

1,599,647

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

   

 

 

 

 

 

 

 

 

 

 

Deposits:

 

   

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

   

$

 

1,103,278

 

$

 

865,908

 

$

 

798,563

 

$

 

772,754

 

$

 

878,703

 

Interest-bearing deposits

 

   

 

1,272,844

 

 

1,100,222

 

 

861,991

 

 

761,177

 

 

661,779

 

Total deposits

 

   

 

2,376,122

 

 

1,966,130

 

 

1,660,554

 

 

1,533,931

 

 

1,540,482

 

Borrowings

 

   

 

235,193

 

 

260,179

 

 

230,165

 

 

105,151

 

 

108,137

 

Total stockholders' Equity

 

   

 

281,330

 

 

273,787

 

 

264,517

 

 

257,270

 

 

249,584

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

   

 

 

 

 

 

 

 

 

 

 

Total non-accrual loans

 

   

$

 

38

 

$

 

68

 

$

 

50

 

$

 

79

 

$

 

192

 

Total non-performing loans

 

   

$

 

1,112

 

$

 

1,498

 

$

 

289

 

$

 

407

 

$

 

192

 

Non-accrual loans to total loans

 

   

 

%

 

%

 

%

 

%

 

0.01

%

Non-performing loans to total loans

 

   

 

0.05

%

 

0.07

%

 

0.02

%

 

0.02

%

 

0.01

%

Allowance for loan losses

 

   

 

(22,715

)

 

(20,834

)

 

(18,942

)

 

(18,493

)

 

(17,463

)

Allowance for loan losses to total loans

 

   

 

0.97

%

 

0.99

%

 

1.02

%

 

1.09

%

 

1.09

%

Provision for loan losses

 

   

 

1,950

 

 

(2,031

)

 

844

 

 

(453

)

 

1,270

 

Net charge-offs (recoveries)

 

   

 

69

 

 

(3,923

)

 

395

 

 

(1,483

)

 

67

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Regulatory Capital

 

   

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage:

 

   

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

   

 

11.0

%

 

12.5

%

 

13.7

%

 

13.8

%

 

13.5

%

Metropolitan Commercial Bank

 

   

 

11.2

 

 

13.4

 

 

14.7

 

 

14.8

 

 

14.5

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Risk-Based (CET1):

 

   

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

   

 

10.7

 

 

11.8

 

 

13.2

 

 

13.9

 

 

14.3

 

Metropolitan Commercial Bank

 

   

 

12.5

 

 

13.9

 

 

15.6

 

 

16.5

 

 

17.0

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Tier 1 Risk-Based:

 

   

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

   

 

11.7

 

 

12.9

 

 

14.6

 

 

15.4

 

 

15.8

 

Metropolitan Commercial Bank

 

   

 

12.5

 

 

13.9

 

 

15.6

 

 

16.5

 

 

17.0

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Total Risk-Based:

 

   

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

   

 

13.4

 

 

14.8

 

 

16.9

 

 

17.9

 

 

18.4

 

Metropolitan Commercial Bank

 

   

 

13.4

 

 

14.8

 

 

16.7

 

 

17.6

 

 

18.1

 

Reconciliation of GAAP to 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 accompanying tables.

Balance sheet data, five quarter trend

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars in thousands, except per share data

 

   

June 30, 2019

 

Mar. 31, 2019

 

Dec. 31, 2018

 

Sept. 30, 2018

 

June 30, 2018

Average assets

 

   

$

2,667,416

 

$

2,288,551

 

$

2,015,831

 

$

1,960,318

 

$

1,946,910

Less: average intangible assets

 

   

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

Average tangible assets

 

   

$

2,657,683

 

$

2,278,818

 

$

2,006,098

 

$

1,950,585

 

$

1,937,177

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity

 

   

$

278,025

 

$

269,418

 

$

262,030

 

$

253,516

 

$

246,108

Less: Average preferred equity

 

   

 

5,502

 

 

5,502

 

 

5,502

 

 

5,502

 

 

5,502

Average common equity

 

   

$

272,523

 

$

263,916

 

$

256,528

 

$

248,014

 

$

240,606

Less: average intangible assets

 

   

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

Average tangible common equity

 

   

$

262,790

 

$

254,183

 

$

246,795

 

$

238,281

 

$

230,873

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

   

$

2,960,613

 

$

2,545,186

 

$

2,182,644

 

$

1,930,714

 

$

1,924,495

Less: intangible assets

 

   

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

Tangible assets

 

   

$

2,950,880

 

$

2,535,453

 

$

2,172,911

 

$

1,920,981

 

$

1,914,762

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

   

$

281,330

 

$

273,787

 

$

264,517

 

$

257,270

 

$

249,584

Less: preferred equity

 

   

 

5,502

 

 

5,502

 

 

5,502

 

 

5,502

 

 

5,502

Common Equity

 

   

$

275,828

 

$

268,285

 

$

259,015

 

$

251,768

 

$

244,082

Less: intangible assets

 

   

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

 

 

9,733

Tangible common equity (book value)

 

   

$

266,095

 

$

258,552

 

$

249,282

 

$

242,035

 

$

234,349

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

   

 

8,320,816

 

 

8,320,816

 

 

8,217,274

 

 

8,207,234

 

 

8,205,234

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (GAAP)

 

   

$

33.15

 

$

32.24

 

$

31.52

 

$

30.68

 

$

29.75

Tangible book value per common share (non-GAAP)*

 

   

$

31.98

 

$

31.07

 

$

30.34

 

$

29.49

 

$

28.56

* Tangible book value divided by common shares outstanding at period-end.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income data

 

Three months
ended June 30,
2019

 

Three months
ended March 31,
2019

 

Six months
ended June 30,
2019

 

 

 

 

 

 

 

 

 

 

 

Net income, as reported (GAAP)

 

$

 

6,057

 

 

$

 

8,531

 

 

$

 

14,588

 

Loan loss recovery related to Medallion loans

 

 

 

 

 

(4,248

)

 

 

(4,248

)

Tax effect

 

 

 

 

 

1,304

 

 

 

1,304

 

Core earnings

 

 

6,057

 

 

 

5,587

 

 

 

11,644

 

Less: Earnings allocated to participating securities

 

 

(107

)

 

 

(89

)

 

 

(196

)

Core earnings available to common stockholders

 

$

 

5,950

 

 

$

 

5,498

 

 

$

 

11,448

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

8,173,487

 

 

 

8,150,452

 

 

 

8,171,360

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings per basic common share

 

$

 

0.73

 

 

$

 

0.67

 

 

$

 

1.40

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

Net income allocated to common stockholders

 

$

 

5,950

 

 

$

 

5,498

 

 

$

 

11,448

 

 

 

 

 

 

 

 

 

 

 

 

Average diluted common shares

 

 

8,336,064

 

 

 

8,285,220

 

 

 

8,320,866

 

 

 

 

 

 

 

 

 

 

 

 

Diluted core earnings per common share

 

$

 

0.71

 

 

$

 

0.66

 

 

$

 

1.38

 

 

Contacts

Investor Relations Department
212-365-6721
IR@MetropolitanBankNY.com

Release Summary

Metropolitan Bank Holding Corp. Reports Core Earnings Growth and Sustained Growth in Loans and Deposits

Contacts

Investor Relations Department
212-365-6721
IR@MetropolitanBankNY.com