Metropolitan Bank Holding Corp. Announces Q2 2024 Financial Results
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the parent company of Metropolitan Commercial Bank (the “Bank”), reported a net income of $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024. This is compared to $16.2 million, or $1.46 per diluted common share, in the first quarter of 2024, and $15.6 million, or $1.37 per diluted common share, in the second quarter of 2023.
CEO’s Statement
Mark DeFazio, President and Chief Executive Officer, commented: “Our strong second quarter financial results were underscored by an increase in the net interest margin and stable asset quality despite the persistence of a challenging operating environment. At the same time, we are progressing well on two major strategic initiatives – our digital transformation project and the exit from BaaS activities. We remain confident that our strategy and execution this year will position MCB for continued success.”
Balance Sheet Highlights
- Total Cash and Equivalents: $244.7 million as of June 30, 2024, a decrease of $289.7 million (54.2%) from March 31, 2024, but an increase of $42.9 million (21.3%) from June 30, 2023. The decrease from March reflects a $150.0 million reduction in wholesale funding and a $119.7 million increase in the loan book.
- Total Loans: $5.8 billion as of June 30, 2024, up $119.7 million (2.1%) from March 31, 2024, and up $689.3 million (13.4%) from June 30, 2023. Loan production was $290.8 million for Q2 2024 compared to $269.6 million for the prior quarter and $425.4 million for the same period last year. The increase in loans was mainly due to a rise in commercial real estate and commercial and industrial loans.
- Total Deposits: $6.2 billion as of June 30, 2024, a decrease of $67.9 million (1.1%) from March 31, 2024, but an increase of $881.1 million (16.7%) from June 30, 2023. The decrease from March was primarily due to a reduction in retail deposits, partially offset by increases in property manager and municipal deposits.
- Capital and Liquidity: At June 30, 2024, the Company had $3.4 billion in cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity. The Company and the Bank met all regulatory requirements to be considered “well-capitalized.”
Income Statement Highlights
- Total Revenues: $67.7 million for Q2 2024, compared to $66.7 million for Q1 2024, and $61.6 million for Q2 2023.
- Net Interest Income: $61.5 million for Q2 2024, compared to $59.7 million for the previous quarter and $53.8 million for the same period last year.
- Net Interest Margin: 3.44% for Q2 2024, compared to 3.40% for Q1 2024 and 3.44% for Q2 2023.
- Non-Interest Income: $6.1 million for Q2 2024, a decrease from $6.9 million for Q1 2024 and $7.8 million for Q2 2023.
- Non-Interest Expense: $42.3 million for Q2 2024, which includes $5.5 million related to the GPG wind down, regulatory remediation, and digital transformation costs.
- Income Tax Expense: The effective tax rate for Q2 2024 was 29.7%, compared to 33.3% for Q1 2024 and 37.4% for Q2 2023.
Asset Quality
Credit quality remained stable, with the ratio of non-performing loans to total loans decreasing to 0.53% at June 30, 2024, from 0.91% at March 31, 2024, and compared to 0.47% at June 30, 2023. The allowance for credit losses was $60.0 million at June 30, 2024, up $1.5 million from March 31, 2024.
Conference Call
The Company will hold a conference call at 9:00 a.m. ET on Friday, July 19, 2024, to discuss the results. To participate, please dial 800-267-6316 (US) or 203-518-9783 (INTL) and provide conference ID: MCBQ224. The call will also be webcast live on the Company’s website.
About Metropolitan Bank Holding Corp.
Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank, a full-service commercial bank based in New York City. The Bank offers a wide range of banking products and services to various customers, including individuals, small businesses, and corporate enterprises. The Bank has been recognized by Newsweek as one of the Best Regional Banks and Credit Unions 2024 and by the Independent Community Bankers of America as one of the top 20 commercial lenders with over $1 billion in assets. For more information, visit the Bank’s website at MCBankNY.com.
