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Metropolitan Bank Holding Corp. Reports Fourth Quarter and Full Year 2023 Results

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Metropolitan Bank Holding Corp. (MCB) reported a stable financial performance in 2023, with total deposits increasing to $5.7 billion and net loans reaching $5.6 billion. The company achieved a net interest margin of 3.36% for the fourth quarter of 2023, with a return on average equity of 12.4% and return on average tangible common equity of 12.6%. Despite a challenging economic environment, MCB delivered responsible loan growth predominantly funded by core deposits. The company remains well-capitalized and is poised for business growth in 2024.
Positive
  • Total deposits increased to $5.7 billion, with a strong growth of $215.7 million from September 30, 2023, and an increase of $459.4 million from December 31, 2022.
  • Net loans at December 31, 2023, were $5.6 billion, with a strong growth of $270.3 million from September 30, 2023, and $784.3 million from December 31, 2022.
  • Net interest margin for the fourth quarter of 2023 increased to 3.36% compared to 3.27% for the prior linked quarter.
  • Full year 2023 net interest margin of 3.49%, consistent with the prior year.
  • Return on average equity of 12.4% and return on average tangible common equity of 12.6% for full year 2023.
  • At December 31, 2023, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.1 billion, which was 196.3% of uninsured deposit balances.
  • Non-interest income was $27.9 million for the year 2023, an increase of $1.3 million from the prior year driven primarily by increases in service charges on deposits and other service charges and fees.
Negative
  • The ratio of non-performing loans to total loans was 0.92% at December 31, 2023, compared to 0.58% at September 30, 2023, and 0.00% at December 31, 2022.
  • The effective tax rate for the year 2023 was 27.7% compared to 38.7% for the prior year.
  • Non-interest expense was $37.1 million for the fourth quarter of 2023, an increase of $6.2 million from the prior linked quarter.

Insights

The Metropolitan Bank Holding Corp.'s financial performance in the fourth quarter of 2023 shows a marked improvement from the previous year, demonstrating resilience in a challenging economic climate. A key highlight is the growth in net loans by $784.3 million year-over-year, indicating a robust lending activity despite higher interest rates. This is particularly noteworthy as it suggests that the bank has maintained a healthy demand for its lending services.

The reported net interest margin (NIM) of 3.36% for Q4 2023, although lower than the previous year's 4.05%, shows a slight increase from the preceding quarter. This could be attributed to an effective balance sheet management strategy that has managed to mitigate the impact of rising interest rates on profitability. The total deposits increase of $459.4 million year-over-year illustrates strong customer retention and acquisition strategies.

However, the shift from non-interest-bearing to interest-bearing deposits and the exit from the crypto business may exert pressure on the bank’s cost of funds going forward. Investors should monitor how these changes affect the bank's net interest income and overall profitability in the upcoming quarters.

The banking sector has been facing headwinds due to persistent inflation and interest rate hikes, which typically lead to a contraction in net interest margins. Metropolitan Bank Holding Corp.'s ability to increase its NIM slightly in the fourth quarter, in this context, indicates a competitive edge in pricing and cost management. The bank's strategic exit from the crypto-related deposit vertical also suggests a move towards mitigating risk and focusing on core banking activities, which may be seen as a positive step by risk-averse investors.

Furthermore, the bank's status as 'Well-Capitalized' under regulatory guidelines indicates a strong capital position, which could make it more resilient to potential economic downturns. The year-over-year growth in commercial real estate (CRE) and commercial and industrial (C&I) loans is indicative of the bank's targeted growth areas, which could be appealing to stakeholders interested in specific market segments.

Metropolitan Bank Holding Corp.'s performance must be contextualized within the broader economic environment characterized by rising interest rates and inflationary pressures. The bank's ability to grow its deposits and loans during such a period is a strong signal of its underlying economic health. The increase in the cost of funds year-over-year is consistent with the tightening monetary policy observed across the financial sector.

The effective tax rate decrease from 38.7% to 27.7% year-over-year could be partially attributed to the reversal of the regulatory settlement reserve, among other factors. This lower tax rate has likely provided a boost to net income, which is a positive development for shareholder returns. However, it is important to note that such tax benefits may not be recurring and thus, future profitability assessments should account for potential normalization of tax rates.

Stable performance demonstrates MCB’s ability to execute on its business plan in a challenging economic environment 

Financial Highlights

  • Total deposits at December 31, 2023 were $5.7 billion, an increase of $215.7 million from September 30, 2023 and an increase of $459.4 million from December 31, 2022.
  • Net loans at December 31, 2023 were $5.6 billion, with strong growth of $270.3 million from September 30, 2023 and $784.3 million from December 31, 2022.
  • Asset quality remains strong.
  • Net interest margin for the fourth quarter of 2023 increased to 3.36% compared to 3.27% for the prior linked quarter. Full year 2023 net interest margin of 3.49%, consistent with prior year.
  • Full year 2023 return on average equity of 12.4% and return on average tangible common equity1 of 12.6%.
  • Liquidity remains strong. At December 31, 2023, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.1 billion, which was 196.3% of uninsured deposit balances.
  • The Company and Bank are “well capitalized” across all measures of regulatory capital, with total risk-based capital ratios of 12.8% and 12.5%, respectively, at December 31, 2023, well above regulatory minimums.

1 Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.

NEW YORK--(BUSINESS WIRE)-- Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $14.6 million, or $1.28 per diluted common share, for the fourth quarter of 2023 compared to a net loss of $7.7 million, or $0.71 per diluted common share, for the fourth quarter of 20222. Net income for the year 2023 was $77.3 million, or $6.91 per diluted common share, compared to net income of $59.4 million, or $5.29 per diluted common share, for the year 20222.

2 The fourth quarter and full year 2022 results include a $35.0 million regulatory settlement reserve. The full year 2023 results include a $5.5 million reversal of the regulatory settlement reserve.

Mark DeFazio, President and Chief Executive Officer, commented,

“I am pleased with our performance in 2023. MCB delivered responsible loan growth predominantly funded by core deposits, which was impressive in light of the challenging economic backdrop, persistent inflation, higher interest rates and our exit from the crypto business. We maintain our disciplined approach to lending and remain focused on prudent balance sheet management and liquidity. Our ability to grow appropriately within this environment demonstrates the strength and stability of our franchise.

“As we enter 2024, MCB is well-positioned to grow our business and drive EPS growth while supporting the needs of our clients.”

Balance Sheet

Total cash and cash equivalents were $269.5 million at December 31, 2023, an increase of $92.1 million, or 51.9%, from September 30, 2023 and an increase of $12.0 million from December 31, 2022. The increase from September 30, 2023, primarily reflected the $215.7 million and $184.0 million increase in deposits and wholesale funding, respectively, partially offset by the $270.3 million net deployment into loans.

Total loans, net of deferred fees and unamortized costs, were $5.6 billion, an increase of $270.3 million, or 5.0%, from September 30, 2023, and an increase of $784.3 million, or 16.2%, from December 31, 2022. Loan production was $342.5 million for the fourth quarter of 2023 compared to $333.5 million for the prior linked quarter and $411.3 million for the prior year period. The increase in total loans from September 30, 2023, was due primarily to an increase of $145.0 million in commercial real estate (“CRE”) loans (including owner-occupied) and $74.7 million in commercial and industrial (C&I) loans. The increase in total loans from December 31, 2022, was due primarily to an increase of $603.2 million in CRE loans (including owner-occupied) and $142.8 million in C&I loans.

Total deposits were $5.7 billion at December 31, 2023, an increase of $215.7 million, or 3.9% from September 30, 2023, and an increase of $459.4 million or 8.7% from December 31, 2022. The increase from September 30, 2023, was due primarily to an increase of $140.7 million in municipal deposits and $36.5 million in retail deposits. The increase in deposits from December 31, 2022, was due primarily to an increase of $749.2 million in retail deposits and $229.1 million in EB-5, Title and Escrow and Charter School deposits, partially offset by the $491.0 million decrease in crypto-related deposits. Non-interest-bearing demand deposits were 32.0% of total deposits at December 31, 2023, compared to 31.6% at September 30, 2023 and 45.9% at December 31, 2022. The decline from December 31, 2022 primarily reflects the outflow of crypto-related deposits.

Accumulated other comprehensive loss, net of tax, was $52.9 million, a decrease of $7.2 million, from September 30, 2023, and $1.4 million from December 31, 2022. The decreases from September 30, 2023 and December 31, 2022 were due to decreases in unrealized losses on available-for-sale securities due to changes in prevailing market interest rates, partially offset by unrealized losses and reclassification adjustments to net income on cash flow hedges.

At December 31, 2023, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.1 billion. 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 368.1% of total risk-based capital at December 31, 2023, compared to 374.8% and 366.0% at September 30, 2023 and December 31, 2022, respectively.

Income Statement

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Year ended

 

 

Dec. 31,

 

Sept. 30,

 

Dec. 31,

 

 

Dec. 31,

 

Dec. 31,

 

(dollars in thousands, except per share data)

 

2023

 

2023(1)

 

2022(2)

 

 

2023(3)

 

2022(2)

 

Total revenues(4)

 

$

63,555

 

$

60,070

 

$

70,249

 

 

$

250,739

 

$

255,751

 

Net income (loss)

 

 

14,568

 

 

22,063

 

 

(7,740)

 

 

 

77,268

 

 

59,425

 

Diluted earnings (loss) per common share

 

 

1.28

 

 

1.97

 

 

(0.71)

 

 

 

6.91

 

 

5.29

 

Return on average assets(5)

 

 

0.84

%

 

1.33

%

 

N.M.

%

 

 

1.19

%

 

0.90

%

Return on average equity(5)

 

 

9.0

%

 

13.9

%

 

N.M.

%

 

 

12.4

%

 

10.3

%

Return on average tangible common equity(5), (6)

 

 

9.1

%

 

14.1

%

 

N.M.

%

 

 

12.6

%

 

10.4

%

__________________
(1) Includes a $3.0 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022.
(2) Includes a $35.0 million regulatory settlement reserve.
(3) Includes a $5.5 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022.
(4) Total revenues equal net interest income plus non-interest income.
(5) For periods less than a year, ratios are annualized.
(6) Net income divided by average tangible common equity. Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.

Net Interest Income

Net interest income for the fourth quarter of 2023 was $57.0 million compared to $53.6 million for the prior linked quarter and $63.9 million for the prior year period. The $3.4 million increase from the prior linked quarter was due primarily to loan growth and increases in loan yields, partially offset by the shift from non-interest bearing deposits to interest bearing deposits and borrowings primarily related to the exit from the crypto-related deposit vertical. The $6.9 million decrease from the prior year period was due primarily to the 197 basis point increase in total cost of funds and the shift from non-interest bearing deposits to interest bearing funding primarily related to the exit from the crypto-related deposit vertical, partially offset by the increase in the average balance of loans and loan yields.

Net interest income for the year 2023 was $222.8 million compared to $229.2 million for the prior year. The $6.3 million decrease was due primarily to the 212 basis point increase in total cost of funds and the shift from non-interest bearing deposits to interest bearing funding primarily related to the exit from the crypto-related deposit vertical, partially offset by the increase in the average balance of loans and loan yields.

Net Interest Margin

Net interest margin for the fourth quarter of 2023 was 3.36% compared to 3.27% and 4.05% for the prior linked quarter and prior year period, respectively. The 9 basis point increase from the prior linked quarter was due primarily to the increase in the average balance of loans and loan yields, partially offset by the higher cost of funds. The 69 basis point decrease from the prior year period was driven largely by the increase in the average balance of borrowed funds and the shift from non-interest bearing deposits to interest bearing deposits related to the final exit from the crypto-related deposit vertical, partially offset by loan growth and the increase in loan yields. Net interest margin was consistent at 3.49% for the years 2023 and 2022.

Total cost of funds for the fourth quarter of 2023 was 314 basis points compared to 303 basis points and 117 basis points for the prior linked quarter and prior year period, respectively. Total cost of funds for the year 2023 was 265 basis points compared to 53 basis points for the prior year. The increase in the cost of funds reflects the increase in prevailing interest rates and the shift from non-interest bearing deposits to interest bearing funding primarily related to the final exit from the crypto-related deposit vertical.

Non-Interest Income

Non-interest income was $6.6 million for the fourth quarter of 2023, an increase of $48,000 from the prior linked quarter and an increase of $211,000 from the prior year period. The increase from the prior linked quarter was driven primarily by an increase in service charges on deposits, partially offset by a decrease in other service charges and fees. The increase from the prior linked period was driven primarily by an increase in service charges on deposits and other service charges and fees, partially offset by lower Global Payments Group revenue.

Non-interest income was $27.9 million for the year 2023, an increase of $1.3 million from the prior year driven primarily by increases in service charges on deposits and other service charges and fees.

Non-Interest Expense

Non-interest expense was $37.1 million for the fourth quarter of 2023, an increase of $6.2 million from the prior linked quarter and a decrease of $29.5 million from the prior year period. The increase from the prior linked quarter was due primarily to the $3.0 million reversal of the regulatory settlement reserve in the third quarter of 2023, a $1.2 million increase in professional fees and a $1.0 million increase in compensation and benefits. The decrease from the prior year period was due primarily to the $35.0 million regulatory settlement reserve recorded in the fourth quarter of 2022.

Non-interest expense was $131.5 million for the year 2023, a decrease of $17.2 million from the prior year driven primarily by the $35.0 million regulatory settlement reserve recorded in the fourth quarter of 2022, partially offset by a $9.7 million increase in compensation and benefits, a $4.5 million increase in FDIC assessments and a $3.6 million increase in professional fees.

Income Tax Expense

The effective tax rate for the year 2023 was 27.7% compared to 38.7% for the prior year, which reflects a discrete tax item related to the exercise of stock options in 2023 and the $5.5 million reversal of the regulatory settlement reserve in 2023. The elevated effective tax rate for the year 2022 reflects the recording of the $35.0 million regulatory settlement reserve and other discrete tax items.

Asset Quality

Credit quality remains strong. The ratio of non-performing loans to total loans was 0.92% at December 31, 2023 compared to 0.58% at September 30, 2023 and 0.00% at December 31, 2022, respectively. The allowance for credit losses (“ACL”) was $58.0 million at December 31, 2023, an increase of $5.7 million from September 30, 2023 and an increase of $13.1 million from December 31, 2022. The increase from the prior linked quarter was due primarily to loan growth and a $4.8 million provision on a single multifamily loan, partially offset by modest improvements in certain macroeconomic variables which inform our Current Expected Credit Loss (“CECL”) model. The increase from the prior year period was due primarily to loan growth, the $4.8 million provision on the single multifamily loan and the adoption of ASU No. 2016-13. The Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (ASC 326) effective January 1, 2023. ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at amortized cost to be based on historical experience, current condition, and reasonable and supportable forecasts. Upon adoption, the Company recorded a $2.3 million increase to the ACL for loans, a $777,000 increase to the ACL for loan commitments, and a $2.1 million decrease to retained earnings, net of taxes.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Friday, January 19, 2024, to discuss the results. To access the event by telephone, please dial 800-267-6316 (US), 203-518-9783 (INTL), and provide conference ID: MCBQ423 approximately 15 minutes prior to the start time (to allow time for registration).

The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company’s website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software. For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”), a New York City based full-service commercial bank.

The Bank provides a broad range of business, commercial and personal banking products and services to individuals, small businesses, private and public middle-market and corporate enterprises and institutions, municipalities and local government entities.

Metropolitan Commercial Bank’s Global Payments Group is an established leader in providing payments services to domestic and international non-bank financial service companies. The Bank continues to grow its presence as a valued, trusted and innovative strategic partner across payments, custodial and money services businesses worldwide.

Metropolitan Commercial Bank’s EB-5 / E-2 International Group delivers banking services and products for United States Citizen and Immigration Services EB-5 Immigrant Investor Program investors, developers, Regional Centers, government agencies, law firms and consulting companies that specialize in EB-5 and E-2.

Metropolitan Commercial Bank was named one of Newsweek's Best Regional Banks and Credit Unions 2024. The Bank was ranked by Independent Community Bankers of America among the top ten successful loan producers for 2023 by loan category and asset size for commercial banks with more than $1 billion in assets. The Bank finished ninth in S&P Global Market Intelligence’s annual ranking of the best-performing community banks with assets between $3 billion and $10 billion for 2022 and eighth among top-performing community banks in the Northeast region for 2022. Kroll affirmed a BBB+ (investment grade) deposit rating on January 25, 2023.

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 the Bank’s website at 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 are difficult to predict and are generally beyond our control and 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 following: the interest rate policies of the Board of Governors of the Federal Reserve System; inflation; an unexpected deterioration in our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; further deterioration in the financial condition or stock prices of financial institutions generally; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; the lingering effects of the COVID-19 pandemic on our business and results of operation; unanticipated regulatory action or changes in regulations; potential recessionary conditions; unanticipated volatility in deposits; unexpected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans; our ability to absorb the amount of actual losses inherent in our existing loan portfolio; an unanticipated loss of key personnel or existing customers; competition from other institutions resulting in unanticipated changes in our loan or deposit rates; an unexpected adverse financial, regulatory or bankruptcy event experienced by our non-bank financial service partners; unanticipated increases in FDIC costs; changes in regulations, legislation or tax or accounting rules, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury; impacts related to or resulting from recent bank failures; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance, the credit and other risks from borrower and depositor concentrations (by geographic area and by industry); the current or anticipated impact of military conflict, terrorism or other geopolitical events; the costs, including possibly incurring fines, penalties or other negative effects (including reputational harm), of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions; a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks; the failure to maintain current technologies, or to implement new technologies; the failure to maintain effective internal controls over financial reporting; the failure to retain or attract employees; and unanticipated adverse changes in our customers’ economic conditions or general economic conditions, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.

Forward-looking statements speak only as of the date of this release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law.

Consolidated Balance Sheet (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

(in thousands)

 

2023

 

2023

 

2023

 

2023

 

2022

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

31,973

 

 

$

36,438

 

 

$

33,534

 

 

$

32,525

 

 

$

26,780

 

Overnight deposits

 

 

237,492

 

 

 

140,929

 

 

 

168,242

 

 

 

266,978

 

 

 

230,638

 

Total cash and cash equivalents

 

 

269,465

 

 

 

177,367

 

 

 

201,776

 

 

 

299,503

 

 

 

257,418

 

Investment securities available-for-sale

 

 

461,207

 

 

 

429,850

 

 

 

426,068

 

 

 

444,169

 

 

 

445,747

 

Investment securities held-to-maturity

 

 

468,860

 

 

 

478,886

 

 

 

515,613

 

 

 

501,525

 

 

 

510,425

 

Equity investment securities, at fair value

 

 

2,123

 

 

 

2,015

 

 

 

2,066

 

 

 

2,087

 

 

 

2,048

 

Total securities

 

 

932,190

 

 

 

910,751

 

 

 

943,747

 

 

 

947,781

 

 

 

958,220

 

Other investments

 

 

38,966

 

 

 

35,015

 

 

 

28,040

 

 

 

27,099

 

 

 

22,110

 

Loans, net of deferred fees and unamortized costs

 

 

5,624,797

 

 

 

5,354,487

 

 

 

5,149,546

 

 

 

4,851,694

 

 

 

4,840,523

 

Allowance for credit losses

 

 

(57,965

)

 

 

(52,298

)

 

 

(51,650

)

 

 

(47,752

)

 

 

(44,876

)

Net loans

 

 

5,566,832

 

 

 

5,302,189

 

 

 

5,097,896

 

 

 

4,803,942

 

 

 

4,795,647

 

Receivables from global payments business, net

 

 

87,648

 

 

 

79,892

 

 

 

84,919

 

 

 

83,787

 

 

 

85,605

 

Other assets

 

 

172,571

 

 

 

178,145

 

 

 

165,772

 

 

 

147,870

 

 

 

148,337

 

Total assets

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

$

6,309,982

 

 

$

6,267,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,837,874

 

 

$

1,746,626

 

 

$

1,730,380

 

 

$

2,122,606

 

 

$

2,422,151

 

Interest-bearing deposits

 

 

3,899,418

 

 

 

3,774,963

 

 

 

3,558,185

 

 

 

3,009,182

 

 

 

2,855,761

 

Total deposits

 

 

5,737,292

 

 

 

5,521,589

 

 

 

5,288,565

 

 

 

5,131,788

 

 

 

5,277,912

 

Federal funds purchased

 

 

99,000

 

 

 

 

 

 

243,000

 

 

 

195,000

 

 

 

150,000

 

Federal Home Loan Bank of New York advances

 

 

440,000

 

 

 

355,000

 

 

 

200,000

 

 

 

200,000

 

 

 

100,000

 

Trust preferred securities

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

Secured borrowings

 

 

7,585

 

 

 

7,621

 

 

 

7,655

 

 

 

7,689

 

 

 

7,725

 

Prepaid third-party debit cardholder balances

 

 

10,178

 

 

 

10,297

 

 

 

10,772

 

 

 

11,102

 

 

 

10,579

 

Other liabilities

 

 

93,976

 

 

 

133,322

 

 

 

130,263

 

 

 

135,896

 

 

 

124,604

 

Total liabilities

 

 

6,408,651

 

 

 

6,048,449

 

 

 

5,900,875

 

 

 

5,702,095

 

 

 

5,691,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

111

 

 

 

110

 

 

 

110

 

 

 

112

 

 

 

109

 

Additional paid in capital

 

 

395,871

 

 

 

393,544

 

 

 

392,742

 

 

 

394,124

 

 

 

389,276

 

Retained earnings

 

 

315,975

 

 

 

301,407

 

 

 

279,344

 

 

 

263,783

 

 

 

240,810

 

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

 

 

(52,936

)

 

 

(60,151

)

 

 

(50,921

)

 

 

(50,132

)

 

 

(54,298

)

Total stockholders’ equity

 

 

659,021

 

 

 

634,910

 

 

 

621,275

 

 

 

607,887

 

 

 

575,897

 

Total liabilities and stockholders’ equity

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

$

6,309,982

 

 

$

6,267,337

 

Consolidated Statement of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

Dec. 31,

 

Sept. 30,

 

Dec. 31,

 

Dec. 31,

 

Dec. 31,

(dollars in thousands, except per share data)

 

2023

 

2023

 

2022

 

2023

 

2022

Total interest income

 

$

105,267

 

$

97,897

 

 

$

80,554

 

 

$

375,405

 

 

$

260,739

Total interest expense

 

 

48,273

 

 

44,340

 

 

 

16,655

 

 

 

152,569

 

 

 

31,581

Net interest income

 

 

56,994

 

 

53,557

 

 

 

63,899

 

 

 

222,836

 

 

 

229,158

Provision for credit losses

 

 

6,541

 

 

791

 

 

 

2,309

 

 

 

12,283

 

 

 

10,116

Net interest income after provision for credit losses

 

 

50,453

 

 

52,766

 

 

 

61,590

 

 

 

210,553

 

 

 

219,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

1,671

 

 

1,463

 

 

 

1,458

 

 

 

6,071

 

 

 

5,747

Global Payments Group revenue

 

 

4,177

 

 

4,247

 

 

 

4,343

 

 

 

19,005

 

 

 

19,341

Other income

 

 

713

 

 

803

 

 

 

549

 

 

 

2,827

 

 

 

1,505

Total non-interest income

 

 

6,561

 

 

6,513

 

 

 

6,350

 

 

 

27,903

 

 

 

26,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

18,210

 

 

17,208

 

 

 

15,886

 

 

 

66,961

 

 

 

57,290

Bank premises and equipment

 

 

2,317

 

 

2,396

 

 

 

2,247

 

 

 

9,344

 

 

 

8,855

Professional fees

 

 

5,031

 

 

3,873

 

 

 

5,171

 

 

 

18,064

 

 

 

14,423

Technology costs

 

 

974

 

 

1,171

 

 

 

1,186

 

 

 

4,940

 

 

 

4,713

Licensing fees

 

 

3,638

 

 

3,504

 

 

 

2,674

 

 

 

12,818

 

 

 

10,477

FDIC assessments

 

 

2,639

 

 

1,984

 

 

 

1,030

 

 

 

9,077

 

 

 

4,625

Regulatory settlement reserve

 

 

 

 

(3,021

)

 

 

35,000

 

 

 

(5,521

)

 

 

35,000

Other expenses

 

 

4,338

 

 

3,809

 

 

 

3,465

 

 

 

15,855

 

 

 

13,354

Total non-interest expense

 

 

37,147

 

 

30,924

 

 

 

66,659

 

 

 

131,538

 

 

 

148,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income tax expense

 

 

19,867

 

 

28,355

 

 

 

1,281

 

 

 

106,918

 

 

 

96,898

Income tax expense

 

 

5,299

 

 

6,292

 

 

 

9,021

 

 

 

29,650

 

 

 

37,473

Net income (loss)

 

$

14,568

 

$

22,063

 

 

$

(7,740

)

 

$

77,268

 

 

$

59,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

11,062,729

 

 

11,039,363

 

 

 

10,932,952

 

 

 

11,060,110

 

 

 

10,929,021

Diluted

 

 

11,366,463

 

 

11,136,873

 

 

 

11,183,862

 

 

 

11,129,900

 

 

 

11,200,184

Basic earnings (loss)

 

$

1.31

 

$

1.99

 

 

$

(0.71

)

 

$

6.95

 

 

$

5.42

Diluted earnings (loss)

 

$

1.28

 

$

1.97

 

 

$

(0.71

)

 

$

6.91

 

 

$

5.29

Loan Production, Asset Quality & Regulatory Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

LOAN PRODUCTION (in millions)

 

$

342.5

 

 

$

333.5

 

 

$

425.4

 

 

$

265.4

 

 

$

411.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

44,939

 

 

$

24,000

 

 

$

24,000

 

 

$

24,000

 

 

$

 

Commercial and industrial

 

 

6,934

 

 

 

6,934

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

24

 

 

 

24

 

 

 

24

 

 

 

24

 

 

 

24

 

Total non-accrual loans

 

$

51,897

 

 

$

30,958

 

 

$

24,024

 

 

$

24,024

 

 

$

24

 

Non-accrual loans to total loans

 

 

0.92

 

%

 

0.58

 

%

 

0.47

 

%

 

0.50

 

%

 

%

Allowance for credit losses

 

$

57,965

 

 

$

52,298

 

 

$

51,650

 

 

$

47,752

 

 

$

44,876

 

Allowance for credit losses to total loans

 

 

1.03

 

%

 

0.98

 

%

 

1.00

 

%

 

0.98

 

%

 

0.93

%

Charge-offs

 

$

(946

)

 

$

(129

)

 

$

(44

)

 

$

(100

)

 

$

 

Recoveries

 

$

 

 

$

 

 

$

 

 

$

 

 

$

25

 

Net charge-offs/(recoveries) to average loans (annualized)

 

 

0.07

 

%

 

0.01

 

%

 

 

%

 

0.01

 

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

10.6

 

%

 

10.7

 

%

 

10.8

 

%

 

10.8

 

%

 

10.2

%

Metropolitan Commercial Bank

 

 

10.3

 

%

 

10.5

 

%

 

10.5

 

%

 

10.4

 

%

 

10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Risk-Based (CET1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.5

 

%

 

11.8

 

%

 

11.9

 

%

 

12.3

 

%

 

12.1

%

Metropolitan Commercial Bank

 

 

11.6

 

%

 

11.9

 

%

 

11.9

 

%

 

12.3

 

%

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.9

 

%

 

12.2

 

%

 

12.2

 

%

 

12.7

 

%

 

12.5

%

Metropolitan Commercial Bank

 

 

11.6

 

%

 

11.9

 

%

 

11.9

 

%

 

12.3

 

%

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

12.8

 

%

 

13.1

 

%

 

13.2

 

%

 

13.6

 

%

 

13.4

%

Metropolitan Commercial Bank

 

 

12.5

 

%

 

12.8

 

%

 

12.9

 

%

 

13.2

 

%

 

13.1

%

Performance Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

 

Dec. 31,

 

Sept. 30,

 

Dec. 31,

 

Dec. 31,

 

Dec. 31,

 

(dollars in thousands, except per share data)

 

2023

 

2023(1)

 

2022(2)

 

2023(3)

 

2022(2)

 

Net income per consolidated statements of income

 

$

14,568

 

 

$

22,063

 

 

$

(7,740

)

 

$

77,268

 

 

$

59,425

 

 

Less: Earnings allocated to participating securities

 

 

(78

)

 

 

(118

)

 

 

 

 

 

(365

)

 

 

(141

)

 

Net income (loss) available to common shareholders

 

$

14,490

 

 

$

21,945

 

 

$

(7,740

)

 

$

76,903

 

 

$

59,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss)

 

$

1.31

 

 

$

1.99

 

 

$

(0.71

)

 

$

6.95

 

 

$

5.42

 

 

Diluted earnings (loss)

 

$

1.28

 

 

$

1.97

 

 

$

(0.71

)

 

$

6.91

 

 

$

5.29

 

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end

 

 

11,062,729

 

 

 

11,062,729

 

 

 

10,949,965

 

 

 

11,062,729

 

 

 

10,949,965

 

 

Average fully diluted

 

 

11,366,463

 

 

 

11,136,873

 

 

 

11,183,862

 

 

 

11,129,900

 

 

 

11,200,184

 

 

Return on:(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

0.84

 

%

 

1.33

 

%

 

N.M.

%

 

1.19

 

%

 

0.90

 

%

Average equity

 

 

9.0

 

%

 

13.9

 

%

 

N.M.

%

 

12.4

 

%

 

10.3

 

%

Average tangible common equity(5)

 

 

9.1

 

%

 

14.1

 

%

 

N.M.

%

 

12.6

 

%

 

10.4

 

%

Yield on average earning assets(4)

 

 

6.21

 

%

 

5.99

 

%

 

5.12

 

%

 

5.88

 

%

 

3.97

 

%

Total cost of deposits(4)

 

 

2.98

 

%

 

2.74

 

%

 

1.11

 

%

 

2.43

 

%

 

0.49

 

%

Net interest spread(4)

 

 

1.81

 

%

 

1.67

 

%

 

2.79

 

%

 

1.85

 

%

 

2.82

 

%

Net interest margin(4)

 

 

3.36

 

%

 

3.27

 

%

 

4.05

 

%

 

3.49

 

%

 

3.49

 

%

Net charge-offs as % of average loans(4)

 

 

0.07

 

%

 

0.01

 

%

 

 

%

 

0.02

 

%

 

 

%

Efficiency ratio(6)

 

 

58.4

 

%

 

51.5

 

%

 

94.9

 

%

 

52.46

 

%

 

58.16

 

%

____________________
(1) Includes a $3.0 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022.
(2) Includes a $35.0 million regulatory settlement reserve.
(3) Includes a $5.5 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022.
(4) For periods less than a year, ratios are annualized.
(5) Net income divided by average tangible common equity. Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.
(6) Total non-interest expense divided by total revenues.

Interest Margin Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Dec. 31, 2023

 

 

Sept. 30, 2023

 

 

Dec. 31, 2022

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

 

$

5,538,095

 

 

$

97,897

 

7.01

%

 

$

5,283,114

 

 

$

90,666

 

6.80

%

 

$

4,796,001

 

 

$

72,560

 

5.98

%

Available-for-sale securities

 

 

532,970

 

 

 

2,430

 

1.82

 

 

 

527,673

 

 

 

2,261

 

1.71

 

 

 

527,523

 

 

 

1,979

 

1.50

 

Held-to-maturity securities

 

 

474,475

 

 

 

2,217

 

1.87

 

 

 

497,682

 

 

 

2,412

 

1.94

 

 

 

518,822

 

 

 

2,422

 

1.87

 

Equity investments

 

 

2,401

 

 

 

14

 

2.30

 

 

 

2,387

 

 

 

13

 

2.20

 

 

 

2,351

 

 

 

10

 

1.70

 

Overnight deposits

 

 

139,009

 

 

 

1,966

 

5.53

 

 

 

124,211

 

 

 

1,783

 

5.62

 

 

 

362,244

 

 

 

3,291

 

3.55

 

Other interest-earning assets

 

 

35,718

 

 

 

743

 

8.32

 

 

 

36,952

 

 

 

762

 

8.24

 

 

 

18,689

 

 

 

292

 

6.26

 

Total interest-earning assets

 

 

6,722,668

 

 

 

105,267

 

6.21

 

 

 

6,472,019

 

 

 

97,897

 

5.99

 

 

 

6,225,630

 

 

 

80,554

 

5.12

 

Non-interest-earning assets

 

 

192,237

 

 

 

 

 

 

 

 

 

170,195

 

 

 

 

 

 

 

 

 

101,826

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(53,570

)

 

 

 

 

 

 

 

 

(52,357

)

 

 

 

 

 

 

 

 

(43,643

)

 

 

 

 

 

 

Total assets

 

$

6,861,335

 

 

 

 

 

 

 

 

$

6,589,857

 

 

 

 

 

 

 

 

$

6,283,813

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

3,891,476

 

 

 

42,395

 

4.32

 

 

$

3,465,347

 

 

 

35,969

 

4.12

 

 

$

2,683,653

 

 

 

15,241

 

2.25

 

Certificates of deposit

 

 

34,179

 

 

 

272

 

3.16

 

 

 

38,937

 

 

 

265

 

2.70

 

 

 

49,470

 

 

 

207

 

1.66

 

Total interest-bearing deposits

 

 

3,925,655

 

 

 

42,667

 

4.31

 

 

 

3,504,284

 

 

 

36,234

 

4.10

 

 

 

2,733,123

 

 

 

15,448

 

2.24

 

Borrowed funds

 

 

427,250

 

 

 

5,606

 

5.25

 

 

 

572,456

 

 

 

8,106

 

5.66

 

 

 

101,600

 

 

 

1,207

 

4.75

 

Total interest-bearing liabilities

 

 

4,352,905

 

 

 

48,273

 

4.40

 

 

 

4,076,740

 

 

 

44,340

 

4.32

 

 

 

2,834,723

 

 

 

16,655

 

2.33

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,748,178

 

 

 

 

 

 

 

 

 

1,734,956

 

 

 

 

 

 

 

 

 

2,792,370

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

116,995

 

 

 

 

 

 

 

 

 

146,956

 

 

 

 

 

 

 

 

 

60,951

 

 

 

 

 

 

 

Total liabilities

 

 

6,218,078

 

 

 

 

 

 

 

 

 

5,958,652

 

 

 

 

 

 

 

 

 

5,688,044

 

 

 

 

 

 

 

Stockholders' equity

 

 

643,257

 

 

 

 

 

 

 

 

 

631,205

 

 

 

 

 

 

 

 

 

595,769

 

 

 

 

 

 

 

Total liabilities and equity

 

$

6,861,335

 

 

 

 

 

 

 

 

$

6,589,857

 

 

 

 

 

 

 

 

$

6,283,813

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

56,994

 

 

 

 

 

 

 

$

53,557

 

 

 

 

 

 

 

$

63,899

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

1.81

%

 

 

 

 

 

 

 

1.67

%

 

 

 

 

 

 

 

2.79

%

Net interest margin (4)

 

 

 

 

 

 

 

3.36

%

 

 

 

 

 

 

 

3.27

%

 

 

 

 

 

 

 

4.05

%

Total cost of deposits (5)

 

 

 

 

 

 

 

2.98

%

 

 

 

 

 

 

 

2.74

%

 

 

 

 

 

 

 

1.11

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

3.03

%

 

 

 

 

 

 

 

1.17

%

________________________
(1) Ratios are annualized.
(2) Amount includes deferred loan fees and non-performing loans.
(3) Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.
(4) Determined by dividing annualized net interest income by total average interest-earning assets.
(5) Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.
(6) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Interest Margin Analysis, continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

 

 

Dec. 31, 2023

 

 

Dec. 31, 2022

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate

 

 

Balance

 

Interest

 

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

$

5,147,653

 

 

$

345,039

 

6.70

%

 

$

4,361,412

 

 

$

231,851

 

5.32

%

Available-for-sale securities

 

 

527,873

 

 

 

8,865

 

1.68

 

 

 

538,425

 

 

$

6,921

 

1.29

 

Held-to-maturity securities

 

 

499,379

 

 

 

9,608

 

1.92

 

 

 

495,812

 

 

$

8,682

 

1.75

 

Equity investments

 

 

2,381

 

 

 

52

 

2.17

 

 

 

2,339

 

 

$

32

 

1.37

 

Overnight deposits

 

 

176,813

 

 

 

9,319

 

5.20

 

 

 

1,156,468

 

 

$

12,314

 

1.05

 

Other interest-earning assets

 

 

33,061

 

 

 

2,522

 

7.63

 

 

 

16,700

 

 

$

939

 

5.62

 

Total interest-earning assets

 

 

6,387,160

 

 

 

375,405

 

5.88

 

 

 

6,571,156

 

 

 

260,739

 

3.97

 

Non-interest-earning assets

 

 

169,377

 

 

 

 

 

 

 

 

 

90,495

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(49,923

)

 

 

 

 

 

 

 

 

(40,020

)

 

 

 

 

 

 

Total assets

 

$

6,506,614

 

 

 

 

 

 

 

 

$

6,621,631

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

3,299,427

 

 

$

127,494

 

3.86

 

 

$

2,652,502

 

 

$

28,694

 

1.08

 

Certificates of deposit

 

 

42,926

 

 

 

1,183

 

2.76

 

 

 

59,645

 

 

$

590

 

0.99

 

Total interest-bearing deposits

 

 

3,342,353

 

 

 

128,677

 

3.85

 

 

 

2,712,147

 

 

 

29,284

 

1.08

 

Borrowed funds

 

 

445,061

 

 

 

23,892

 

5.37

 

 

 

45,878

 

 

 

2,297

 

5.00

 

Total interest-bearing liabilities

 

 

3,787,414

 

 

 

152,569

 

4.03

 

 

 

2,758,025

 

 

 

31,581

 

1.15

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,960,469

 

 

 

 

 

 

 

 

 

3,223,606

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

137,725

 

 

 

 

 

 

 

 

 

61,213

 

 

 

 

 

 

 

Total liabilities

 

 

5,885,608

 

 

 

 

 

 

 

 

 

6,042,844

 

 

 

 

 

 

 

Stockholders' equity

 

 

621,006

 

 

 

 

 

 

 

 

 

578,787

 

 

 

 

 

 

 

Total liabilities and equity

 

$

6,506,614

 

 

 

 

 

 

 

 

$

6,621,631

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

222,836

 

 

 

 

 

 

 

$

229,158

 

 

 

Net interest rate spread (2)

 

 

 

 

 

 

 

1.85

%

 

 

 

 

 

 

 

2.82

%

Net interest margin (3)

 

 

 

 

 

 

 

3.49

%

 

 

 

 

 

 

 

3.49

%

Total cost of deposits (4)

 

 

 

 

 

 

 

2.43

%

 

 

 

 

 

 

 

0.49

%

Total cost of funds (5)

 

 

 

 

 

 

 

2.65

%

 

 

 

 

 

 

 

0.53

%

_________________________
(1) Amount includes deferred loan fees and non-performing loans.
(2) Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.
(3) Determined by dividing annualized net interest income by total average interest-earning assets.
(4) Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.
(5) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Data

 

 

Year ended

 

(dollars in thousands,

 

Dec. 31,

 

 

Sept. 30,

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Dec. 31,

 

 

Dec. 31,

 

except per share data)

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Average assets

 

$

6,861,335

 

 

$

6,589,857

 

 

$

6,354,597

 

 

$

6,212,624

 

 

$

6,283,813

 

 

$

6,506,614

 

 

$

6,621,631

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible assets (non-GAAP)

 

$

6,851,602

 

 

$

6,580,124

 

 

$

6,344,864

 

 

$

6,202,891

 

 

$

6,274,080

 

 

$

6,496,881

 

 

$

6,611,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

643,257

 

 

$

631,205

 

 

$

616,370

 

 

$

592,521

 

 

$

595,769

 

 

$

621,006

 

 

$

578,787

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible common equity (non-GAAP)

 

$

633,524

 

 

$

621,472

 

 

$

606,637

 

 

$

582,788

 

 

$

586,036

 

 

$

611,273

 

 

$

569,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,067,672

 

 

$

6,683,359

 

 

$

6,522,150

 

 

$

6,309,982

 

 

$

6,267,337

 

 

$

7,067,672

 

 

$

6,267,337

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible assets (non-GAAP)

 

$

7,057,939

 

 

$

6,673,626

 

 

$

6,512,417

 

 

$

6,300,249

 

 

$

6,257,604

 

 

$

7,057,939

 

 

$

6,257,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity

 

$

659,021

 

 

$

634,910

 

 

$

621,275

 

 

$

607,887

 

 

$

575,897

 

 

$

659,021

 

 

$

575,897

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible common equity (book value) (non-GAAP)

 

$

649,288

 

 

$

625,177

 

 

$

611,542

 

 

$

598,154

 

 

$

566,164

 

 

$

649,288

 

 

$

566,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

11,062,729

 

 

 

11,062,729

 

 

 

10,991,074

 

 

 

11,211,274

 

 

 

10,949,965

 

 

 

11,062,729

 

 

 

10,949,965

 

Book value per share (GAAP)

 

$

59.57

 

 

$

57.39

 

 

$

56.53

 

 

$

54.22

 

 

$

52.59

 

 

$

59.57

 

 

$

52.59

 

Tangible book value per share (non-GAAP) (1)

 

$

58.69

 

 

$

56.51

 

 

$

55.64

 

 

$

53.35

 

 

$

51.70

 

 

$

58.69

 

 

$

51.70

 

________________________
(1) Tangible book value divided by common shares outstanding at period-end.

Explanatory Note

Some amounts presented within this document may not recalculate due to rounding.

Daniel F. Dougherty

EVP & Chief Financial Officer

Metropolitan Commercial Bank

(212) 365-6721

IR@MCBankNY.com

Source: Metropolitan Bank Holding Corp.

FAQ

What was the net income for the fourth quarter of 2023?

The net income for the fourth quarter of 2023 was $14.6 million, or $1.28 per diluted common share.

What was the net income for the year 2023?

The net income for the year 2023 was $77.3 million, or $6.91 per diluted common share.

What was the total deposits at December 31, 2023?

Total deposits at December 31, 2023, were $5.7 billion, an increase of $215.7 million from September 30, 2023, and an increase of $459.4 million from December 31, 2022.

What was the net interest margin for the fourth quarter of 2023?

Net interest margin for the fourth quarter of 2023 was 3.36% compared to 3.27% for the prior linked quarter.

What was the return on average equity for full year 2023?

The return on average equity for full year 2023 was 12.4%.

What was the non-interest income for the year 2023?

Non-interest income was $27.9 million for the year 2023, an increase of $1.3 million from the prior year driven primarily by increases in service charges on deposits and other service charges and fees.

Metropolitan Bank Holding Corp.

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