Metropolitan Bank Holding Corp. Reports Quarterly Net Income

Revenues Increased 44.4% Year-Over-Year
Loans Increased 26.8% Year-Over-Year
Return on Average Tangible Common Equity1 of 16.7%

NEW YORK--()--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.

Contacts

Greg Sigrist
EVP & Chief Financial Officer
Metropolitan Commercial Bank
(212) 365-6721
IR@MCBankNY.com

Contacts

Greg Sigrist
EVP & Chief Financial Officer
Metropolitan Commercial Bank
(212) 365-6721
IR@MCBankNY.com