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Metropolitan Bank Holding Corp. Reports Net Income of $12 Million and Diluted EPS of $1.43 for the First Quarter

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·17-min read
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  • Net income of $12 million for second sequential quarter sets the stage for robust earnings growth for 2021

  • Continued strong momentum in core deposit growth, up 16% from year-end 2020, provides sustainable funding for increased loan production

Metropolitan Bank Holding Corp. (the "Company") (NYSE:MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), today reported net income of $12.1 million, or $1.43 per diluted common share, for the first quarter of 2021 compared to net income of $6.1 million, or $0.72 per diluted common share, for the first quarter of 2020.

Financial Highlights include:

  • First quarter net income of $12.1 million, up 98.7% from the prior year quarter, and earnings per share of $1.43 per share up 98.6% over same period.

  • Annualized return on average equity of 14.17% and an annualized return on average tangible common equity* of 14.82%.

  • Total revenues** of $39.0 million, up 17.1% from the prior year period and 5.9% from the linked quarter, reflecting continued strength from market positioning of our core franchise.

  • Total assets were up 13.7% from the linked quarter with net loan growth of $100.6 million, reflecting a 12.8% annualized pace, on quarterly loan production of $235.7 million.

  • Deposits were up 15.6% from year-end 2020, driven by an increase of $441.8 million in non-interest-bearing deposits; non-interest-bearing deposits were 49.0% of total deposits at quarter-end, from 45.1% at year-end 2020.

  • Total average cost of funds decreased by 1 basis point from the linked quarter to 35 basis points. Annualized net interest margin of 3.00% was down 21 basis points during the same period, primarily due to strong core deposit growth driving increased overnight liquidity.

  • Asset quality remained strong with non-performing loans at 17 basis points of total loans, down 3 basis points from the linked quarter. Loan loss provision of $950,000 in the quarter was commensurate with net loan growth.

  • Full payment deferrals related to the Coronavirus pandemic ("COVID-19") were $27.9 million, or 0.9% of the total loan portfolio as of March 31, 2021, while principal-only payment deferrals were $37.4 million, or 1.2% of the total loan portfolio at the same date.

  • Non-interest expenses were $20.3 million, up 4.1% compared to the first quarter of 2020. The efficiency ratio was 52.1%, as compared to 58.6% for the first quarter of 2020.

* Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.
**Total revenues equals the sum of net interest income and non-interest income.

Mark R. DeFazio, President and Chief Executive Officer commented, "MCB’s unwavering focus transformed the unprecedented challenges of 2020 into a record year and a launching pad for 2021. I am very pleased with our first quarter results. Our momentum has set the stage for a strong, efficient balance sheet build which will allow for sustainable earnings for years to come. Our core funding strategies continue to generate low cost, stable liquidity to fund our organic loan growth. Loan yields, together with low-cost funding, will maintain our margin management discipline. Asset quality continues to perform as it has over the past 20 + years of organic growth. As reported, pandemic-related loan deferrals are winding down with no evidence of loss to date.

"The markets in which we do business are reopening, and we are seeing a positive trend of new business activity, especially in New York City. While we operate in diverse markets, we are very confident in our exposure in Manhattan and in the greater New York area. A benefit of our organic loan production platform is the direct communication with our clients, allowing us to discuss both challenges and opportunities as they evolve in the marketplace. This platform places MCB in the best position to address challenges quickly and to assist our clients in taking advantage of the opportunities.

"I am also very encouraged by the sustained performance of our Global Payments Group. As our fintech clients continue to take market share from banks, we are well positioned to continue to provide the requisite financial infrastructure to support their growth. We are very confident in GPG’s ability as a global payment settlement provider to contribute low-cost funding and non-interest income in a very scalable and efficient manner.

"Lastly, I want to thank our staff and board of directors for their dedication to MCB and our clients. I would also like to thank our clients, who have been very active and have demonstrated their support for MCB’s sustained success over the past 20 years," Mr. DeFazio concluded.

Balance Sheet

The Company had total assets of $4.92 billion at March 31, 2021, an increase of 13.7% from December 31, 2020. Total loans before deferred fees increased to $3.24 billion at March 31, 2021, as compared to $3.14 billion at December 31, 2020. The increase in total loans from December 31, 2020 was due primarily to an increase of $114.6 million in commercial real estate ("CRE") loans, including construction and multifamily loans, offset by net paydowns and amortization of $4.9 million in 1-4 family loans, $4.5 million in consumer loans and $4.4 million in commercial and industrial ("C&I") loans. For the first quarter of 2021, the Bank’s loan production was $235.7 million, as compared to $174.0 million and $152.6 for the linked quarter and the first quarter of 2020, respectively.

Total cash and cash equivalents was $1.14 billion at March 31, 2021, an increase of 31.3% from December 31, 2020. The increase in cash and cash equivalents reflect the strong growth in deposits of $597.1 million that exceeded growth in loans of $100.6 million for the first quarter of 2021. Total securities, primarily those classified as available-for-sale ("AFS"), was $484.8 million at March 31, 2021, an increase of 78.8% from December 31, 2020.

Total deposits increased to $4.43 billion at March 31, 2021, up 15.6% from $3.83 billion at December 31, 2020. The increase in deposits for the first quarter of 2021 was due to increases of $441.8 million in non-interest-bearing deposits and $155.3 million in interest-bearing deposits, resulting from increases across most deposit verticals. Non-interest-bearing deposits were 49.0% of total deposits at March 31, 2021, as compared to 45.1% at December 31, 2020.

The Company and the Bank each meet all the requirements to be considered "Well-Capitalized" under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 426.5% and 412.5% of total risk-based capital at March 31, 2021 and December 31, 2020, respectively.

Income Statement

Financial Highlights

Three months ended March 31,

Three months ended December 31,

2021

2020

2020

Total Revenues

$

39,017

$

33,309

$

36,840

Net income

12,117

6,097

11,775

Diluted earnings per common share

1.43

0.72

1.39

Annualized return on average assets

1.05

%

0.71

%

1.13

%

Annualized return on average equity

14.17

%

8.00

%

13.94

%

Annualized return on average tangible common equity*

14.82

%

8.33

%

14.61

%

*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.

Net Interest Income

Net interest income for the first quarter of 2021 was $34.4 million, an increase of $955,000 from the linked quarter. This increase was primarily due to a higher average balance of $4.63 billion in interest-earning assets for the first quarter of 2021, which increased $511.1 million from the linked quarter, partially offset by an increase of $88.6 million in average interest-bearing liabilities, which were $2.19 billion for the first quarter of 2021, as compared to $2.10 billion for the linked quarter.

Net interest income increased $5.4 million for first quarter of 2021, as compared to the first quarter of 2020, primarily due to an increase of $1.21 billion in the average balance of interest-earning assets for the first quarter of 2021, as compared to the first quarter of 2020. This was partially offset by a $259.1 million increase in the average balance of interest-bearing liabilities for the first quarter of 2021, as compared to the first quarter of 2020.

Net Interest Margin

Net interest margin decreased by 21 basis points to 3.00% for the first quarter of 2021, as compared to 3.21% for the linked quarter, primarily due to increased overnight deposits driven by strong deposit growth. Additionally, the average cost of interest-bearing deposits increased by 4 basis points to 0.60% for the first quarter of 2021, as compared to 0.56% for the linked quarter, primarily due to an increase in reciprocal sweep deposits.

Net interest margin decreased by 38 basis points for the first quarter of 2021 as compared to 3.38% for the first quarter of 2020, primarily due to increased overnight deposits driven by deposit growth; partially offset by a decrease in the average cost of interest-bearing liabilities driven by the lower rate environment.

Non-Interest Income

Non-interest income was $4.6 million for the first quarter of 2021, an increase of $1.2 million from the linked quarter driven primarily by Global Payments Group, which continues to see strong increases in client transaction volumes driving revenue growth along with contractual fee recognition, which represented approximately 15% of non-interest income in the first quarter of 2021.

Non-interest income for the first quarter of 2021 increased slightly by $255,000, as compared to the first quarter of 2020. The increase was primarily due to an increase of $1.6 million of global payments revenue, partially offset by a gain of $975,000 recognized on sale of AFS securities in the first quarter of 2020.

Non-Interest Expense

Non-interest expense was $20.3 million for the first quarter of 2021, an increase of $2.5 million from the linked quarter. The primary driver was a $1.6 million increase in compensation and benefits expense, of which approximately $1.3 million was related to elevated first quarter employer expenses, including FICA expense and severance costs.

Non-interest expense increased $807,000 for the first quarter of 2021, as compared to the first quarter of 2020. Drivers included an increase in compensation and benefits cost due to addition of 21 full-time employees along with annual salary adjustments and increases in other expenses in line with business expansion, partially offset by a reduction in premises and equipment related to completion of the corporate office move and reduced licensing fees given the LIBOR rate reduction.

Asset Quality

Non-performing loans were $5.5 million at March 31, 2021, a decrease of $925,000 from December 31, 2020. The decrease was primarily due to the charge-off of two C&I loans in the amount of $855,000, all of which was reserved for at December 31, 2020. The Bank’s ratio of non-performing loans to total loans was 0.17% at March 31, 2021.

The provision for loan losses for the first quarter of 2021 was $950,000, a decrease of $845,000 from the linked quarter. This was primarily due to lower net loan growth in the first quarter of 2021, as compared to the linked quarter, as well as higher specific reserves recorded in the linked quarter for certain C&I and consumer loans.

(dollars in thousands)

March 31, 2021

December 31, 2020

Non-performing loans:

Non-accrual loans:

Commercial and industrial

3,337

4,192

Consumer

1,523

1,428

Total non-accrual loans

$

4,860

$

5,620

Accruing loans 90 days or more past due

604

769

Total non-performing loans

$

5,464

$

6,389

Non-accrual loans as % of loans outstanding

0.15

%

0.18

%

Non-performing loans as % of loans outstanding

0.17

%

0.20

%

Allowance for loan losses

$

(35,502

)

$

(35,407

)

Allowance for loan losses as % of loans outstanding

1.10

%

1.13

%

Three months ended

(dollars in thousands)

March 31, 2021

December 31, 2020

Provision for loan losses

$

950

$

1,795

Charge-offs

$

(855

)

$

(30

)

Recoveries

$

$

28

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

0.11

%

0.00

%

About Metropolitan Bank Holding Corporation

Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank. The Bank provides a broad range of business, commercial and personal banking products and services to small and middle-market businesses, public entities and affluent individuals in the New York metropolitan area. Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island. The Bank is also an active issuer of debit cards for third-party debit card programs and provides critical global payments infrastructure to its FinTech partners. Metropolitan Commercial Bank is a New York State chartered commercial bank and a Federal Reserve System member bank whose deposits are insured up to applicable limits by the FDIC, and an equal opportunity lender. For more information, please visit www.mcbankny.com.

Forward Looking Statement Disclaimer

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s financial condition and capital ratios, results of operations and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as "may," "believe," "expect," "anticipate," "plan," "continue" or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to an unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth and our ability to manage such growth, unanticipated regulatory action, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel, an unanticipated loss of existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in Federal Deposit Insurance Corporation costs, changes in regulations, legislation or accounting rules and unanticipated adverse changes in our customers’ economic conditions or economic conditions in our local area in general, 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.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our cyber security risks may increase if a significant number of our employees are forced to working remotely; and FDIC premiums may increase if the agency experiences additional resolution costs.

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

(Dollars in thousands)

March 31, 2021

December 31, 2020

Assets

Cash and due from banks

$

9,432

$

8,692

Overnight deposits

1,125,589

855,613

Total cash and cash equivalents

1,135,021

864,305

Investment securities available for sale

479,988

266,096

Investment securities held to maturity

2,492

2,760

Investment securities -- Equity investments

2,281

2,313

Total securities

484,761

271,169

Other investments

11,638

11,597

Loans, net of deferred fees and unamortized costs

3,237,664

3,137,053

Allowance for loan losses

(35,502

)

(35,407

)

Net loans

3,202,162

3,101,646

Receivable from prepaid card programs, net

38,356

27,259

Accrued interest receivable

13,982

13,249

Premises and equipment, net

13,756

13,475

Prepaid expenses and other assets

13,392

18,388

Goodwill

9,733

9,733

Total assets

$

4,922,801

$

4,330,821

Liabilities and Stockholders' Equity

Deposits:

Non-interest-bearing demand deposits

$

2,167,899

$

1,726,135

Interest-bearing deposits

2,258,818

2,103,471

Total deposits

4,426,717

3,829,606

Federal Home Loan Bank of New York advances

Trust preferred securities

20,620

20,620

Subordinated debt, net of issuance cost

24,670

24,657

Secured Borrowings

36,475

36,964

Accounts payable, accrued expenses and other liabilities

42,737

61,645

Accrued interest payable

563

712

Prepaid third-party debit cardholder balances

22,802

15,830

Total liabilities

4,574,584

3,990,034

Class B preferred stock

3

3

Common stock

83

82

Additional paid in capital

217,384

218,899

Retained earnings

132,947

120,830

Accumulated other comprehensive gain, net of tax effect

(2,200

)

973

Total stockholders’ equity

348,217

340,787

Total liabilities and stockholders’ equity

$

4,922,801

$

4,330,821

Consolidated Statement of Income (unaudited)

Quarter ended Mar. 31,

Quarter ended Dec. 31,

(dollars in thousands, except per share data)

2021

2020

2020

Total interest income

$

38,106

$

36,067

$

36,862

Total interest expense

3,684

7,098

3,395

Net interest income

34,422

28,969

33,467

Provision for loan losses

950

4,790

1,795

Net interest income after provision for loan losses

33,472

24,179

31,672

Non-interest income:

Service charges on deposit accounts

1,065

1,081

981

Global payments revenue

3,267

1,621

2,163

Other service charges and fees

304

627

236

Unrealized (loss) gain on equity securities

(41

)

36

(7

)

Gain on sale of securities

975

Total non-interest income

4,595

4,340

3,373

Non-interest expense:

Compensation and benefits

11,428

9,960

9,835

Bank premises and equipment

2,024

2,500

1,842

Professional fees

1,304

955

1,064

Licensing fees and technology costs

3,001

3,806

2,814

Other expenses

2,566

2,295

2,233

Total non-interest expense

20,323

19,516

17,788

Net income before income tax expense

17,744

9,003

17,257

Income tax expense

5,627

2,906

5,482

Net income

$

12,117

$

6,097

$

11,775

Earnings per common share:

Average common shares outstanding - basic

8,276,174

8,215,959

8,225,083

Average common shares outstanding - diluted

8,417,319

8,412,782

8,417,729

Basic earnings

$

1.46

$

0.73

$

1.42

...

$

1.43

$

0.72

$

1.39

Net Interest Margin Analysis

Three months ended

March 31, 2021

December 31, 2020

Average

...

Average

Outstanding

Yield/Rate

Outstanding

Yield/Rate

(dollars in thousands)

Balance

Interest

(annualized)

Balance

Interest

(annualized)

Assets:

Interest-earning assets:

Loans (1)

$

3,187,450

$

36,840

4.67

%

$

3,070,850

$

35,843

4.62

%

Available-for-sale securities

330,451

752

0.91

%

230,080

573

0.97

%

Held-to-maturity securities

2,623

11

1.71

%

2,906

12

1.65

%

Equity investments - non-trading

2,302

8

1.39

%

2,294

9

1.46

%

Overnight deposits

1,100,690

344

0.13

%

806,602

280

0.14

%

Other interest-earning assets

11,610

151

5.27

%

11,336

145

5.09

%

Total interest-earning assets

4,635,126

38,106

3.32

%

4,124,068

36,862

3.54

%

Non-interest-earning assets

69,894

63,962

Allowance for loan and lease losses

(35,969)

(34,122)

Total assets

$

4,669,051

$

4,153,908

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Money market, savings and other interest-bearing accounts

$

2,058,611

$

2,907

0.57

%

$

1,962,417

$

2,554

0.52

%

Certificates of deposit

86,902

264

1.23

%

94,546

327

1.38

%

Total interest-bearing deposits

2,145,513

3,171

0.60

%

2,056,963

2,881

0.56

%

Borrowed funds

45,282

513

4.53

%

45,268

514

4.44

%

Total interest-bearing liabilities

2,190,795

3,684

0.68

%

2,102,231

3,395

0.64

%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

2,067,539

1,636,417

Other non-interest-bearing liabilities

63,932

79,320

Total liabilities

4,322,266

3,817,968

Stockholders' Equity

346,785

335,940

Total liabilities and equity

$

4,669,051

$

4,153,908

Net interest income

$

34,422

$

33,467

Net interest rate spread (2)

2.64

%

2.90

%

Net interest-earning assets

$

2,444,331

$

2,021,837

Net interest margin (3)

3.00

%

3.21

%

Total cost of funds (4)

0.35

%

0.36

%

___________________

(1)

Amount includes deferred loan fees and non-performing loans.

(2)

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

(3)

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

(4)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Three months ended

March 31, 2021

March 31, 2020

Average

Average

Outstanding

Yield/Rate

Outstanding

Yield/Rate

(dollars in thousands)

Balance

Interest

(annualized)

Balance

Interest

(annualized)

Assets:

Interest-earning assets:

Loans (1)

$

3,187,450

$

36,840

4.67

%

$

2,705,710

$

32,827

4.85

%

Available-for-sale securities

330,451

752

0.91

%

219,883

1,343

2.42

%

Held-to-maturity securities

2,623

11

1.71

%

3,622

17

1.86

%

Equity investments - non-trading

2,302

8

1.39

%

2,263

12

2.10

%

Overnight deposits

1,100,690

344

0.13

%

470,638

1,593

1.36

%

Other interest-earning assets

11,610

151

5.27

%

21,441

275

5.07

%

Total interest-earning assets

4,635,126

38,106

3.32

%

3,423,557

36,067

4.22

%

Non-interest-earning assets

69,894

57,567

Allowance for loan and lease losses

(35,969

)

(26,789

)

Total assets

$

4,669,051

$

3,454,335

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Money market, savings and other interest-bearing accounts

$

2,058,611

$

2,907

0.57

%

$

1,638,362

$

5,171

1.27

%

Certificates of deposit

86,902

264

1.23

%

104,067

596

2.30

%

Total interest-bearing deposits

2,145,513

3,171

0.60

%

1,742,429

5,767

1.33

%

Borrowed funds

45,282

513

4.53

%

189,226

1,331

2.78

%

Total interest-bearing liabilities

2,190,795

3,684

0.68

%

1,931,655

7,098

1.48

%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

2,067,539

1,157,270

Other non-interest-bearing liabilities

63,932

58,923

Total liabilities

4,322,266

3,147,848

Stockholders' Equity

346,785

306,487

Total liabilities and equity

$

4,669,051

$

3,454,335

Net interest income

$

34,422

$

28,969

Net interest rate spread (2)

2.64

%

2.74

%

Net interest-earning assets

$

2,444,331

$

1,491,902

Net interest margin (3)

3.00

%

3.38

%

Total cost of funds (4)

0.35

%

0.92

%

___________________

(1)

Amount includes deferred loan fees and non-performing loans.

(2)

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

(3)

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

(4)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Summary of Income and Performance Measures
Five Quarter Trend (unaudited)

Quarter Ended

(Dollars in thousands)

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Mar. 31, 2020

Net interest income

$

34,422

$

33,467

$

32,324

$

30,161

$

28,969

Provision for loan losses

950

1,795

1,137

1,766

4,790

Net interest income after provision for loan losses

33,472

31,672

31,187

28,395

24,179

Non-interest income

4,595

3,373

3,637

5,653

4,340

Non-interest expense:

Compensation and benefits

11,428

9,835

9,944

10,058

9,960

Other Expense

8,895

7,953

8,986

8,226

9,556

Total non-interest expense

20,323

17,788

18,930

18,284

19,516

Income before income tax expense

17,744

17,257

15,894

15,764

9,003

Income tax expense

5,627

5,482

5,111

4,953

2,906

Net income

12,117

11,775

10,783

10,811

6,097

Pre-tax, pre-provision income*

$

18,694

$

19,052

$

17,031

$

17,530

$

13,793

Performance Measures:

Net income available to common shareholders

12,062

11,690

10,694

10,716

6,032

Per common share:

Basic earnings

$

1.46

$

1.42

$

1.30

$

1.30

$

0.73

Diluted earnings

$

1.43

$

1.39

$

1.27

$

1.28

$

0.72

Common shares outstanding:

Average - diluted

8,417,319

8,417,729

8,393,211

8,359,450

8,412,782

Period end

8,345,032

8,295,272

8,289,479

8,294,801

8,294,801

Return on (annualized):

Average total assets

1.05

%

1.13

%

1.07

%

1.14

%

0.71

%

Average equity

14.17

%

13.94

%

13.20

%

13.82

%

8.00

%

Average tangible common equity*

14.82

%

14.61

%

13.85

%

14.36

%

8.33

%

Yield on average earning assets

3.32

%

3.54

%

3.54

%

3.62

%

4.22

%

Cost of interest-bearing liabilities

0.68

%

0.64

%

0.71

%

0.81

%

1.48

%

Net interest spread

2.64

%

2.90

%

2.83

%

2.81

%

2.74

%

Net interest margin

3.00

%

3.21

%

3.18

%

3.19

%

3.38

%

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

0.11

%

0.00

%

0.00

%

0.03

%

0.02

%

Efficiency ratio

52.09

%

48.28

%

52.64

%

54.58

%

58.59

%

*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.

Consolidated Balance Sheet Summary, Five Quarter Trend (unaudited)

(dollars in thousands)

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Mar. 31, 2020

Assets

Total Assets

$

4,922,801

$

4,330,821

$

4,001,759

$

3,970,441

$

3,612,012

Overnight deposits

1,125,589

855,613

758,913

813,147

569,927

Total securities

484,761

271,169

187,695

194,979

205,646

Other investments

11,638

11,597

11,097

15,731

21,455

Loans, net of deferred fees and unamortized costs

3,237,664

3,137,053

2,989,550

2,892,274

2,766,099

Liabilities and Stockholders' Equity

Deposits:

Non-interest-bearing demand deposits

$

2,167,899

$

1,726,135

$

1,561,605

$

1,535,245

$

1,254,089

Interest-bearing deposits

2,258,818

2,103,471

1,974,385

1,868,300

1,771,108

Total deposits

4,426,717

3,829,606

3,535,990

3,403,545

3,025,197

Borrowings

45,290

45,277

45,263

149,249

189,235

Total stockholders' Equity

348,217

340,787

328,584

317,169

308,536

Asset Quality

Total non-accrual loans

$

4,860

$

5,620

$

5,669

$

7,083

$

6,136

Total non-performing loans

$

5,464

$

6,389

$

6,623

$

8,448

$

6,341

Non-accrual loans to total loans

0.15

%

0.18

%

0.19

%

0.24

%

0.22

%

Non-performing loans to total loans

0.17

%

0.20

%

0.22

%

0.29

%

0.23

%

Allowance for loan losses

(35,502

)

(35,407

)

(33,614

)

(32,505

)

(30,924

)

Allowance for loan losses to total loans

1.10

%

1.13

%

1.12

%

1.12

%

1.12

%

Provision for loan losses

950

1,795

1,137

1,766

4,790

Net charge-offs

855

2

28

185

138

Regulatory Capital

Tier 1 Leverage:

Metropolitan Bank Holding Corp.

7.8

%

8.5

%

8.4

%

8.6

%

9.1

%

Metropolitan Commercial Bank

8.2

%

9.0

%

9.0

%

9.2

%

9.8

%

Common Equity Tier 1 Risk-Based (CET1):

Metropolitan Bank Holding Corp.

9.9

%

10.1

%

10.1

%

9.9

%

9.8

%

Metropolitan Commercial Bank

11.3

%

11.6

%

11.8

%

11.6

%

11.5

%

Tier 1 Risk-Based:

Metropolitan Bank Holding Corp.

10.7

%

10.9

%

11.0

%

10.8

%

10.7

%

Metropolitan Commercial Bank

11.3

%

11.6

%

11.8

%

11.6

%

11.5

%

Total Risk-Based:

Metropolitan Bank Holding Corp.

12.4

%

12.7

%

12.9

%

12.7

%

12.1

%

Metropolitan Commercial Bank

12.4

%

12.7

%

12.9

%

12.6

%

12.5

%

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

Dollars in thousands, except per share data

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Mar. 31, 2020

Average assets

$

4,669,051

$

4,153,908

$

4,026,366

$

3,812,225

$

3,454,335

Less: average intangible assets

9,733

9,733

9,733

9,733

9,733

Average tangible assets

$

4,659,318

$

4,144,175

$

4,016,633

$

3,802,492

$

3,444,602

Average equity

$

346,785

$

335,940

$

324,876

$

314,727

$

306,487

Less: Average preferred equity

5,502

5,502

5,502

5,502

5,502

Average common equity

$

341,283

$

330,438

$

319,374

$

309,225

$

300,985

Less: average intangible assets

9,733

9,733

9,733

9,733

9,733

Average tangible common equity

$

331,550

$

320,705

$

309,641

$

299,492

$

291,252

Total assets

$

4,922,801

$

4,330,821

$

4,001,759

$

3,970,441

$

3,612,012

Less: intangible assets

9,733

9,733

9,733

9,733

9,733

Tangible assets

$

4,913,068

$

4,321,088

$

3,992,026

$

3,960,708

$

3,602,279

Total Equity

$

348,217

$

340,787

$

328,584

$

317,169

$

308,536

Less: preferred equity

5,502

5,502

5,502

5,502

5,502

Common Equity

$

342,715

$

335,285

$

323,082

$

311,667

$

303,034

Less: intangible assets

9,733

9,733

9,733

9,733

9,733

Tangible common equity (book value)

$

332,982

$

325,552

$

313,349

$

301,934

$

293,301

Common shares outstanding

8,345,032

8,295,272

8,289,479

8,294,801

8,294,801

Book value per share (GAAP)

$

41.07

$

40.42

$

38.97

$

37.57

$

36.53

Tangible book value per share (non-GAAP)*

$

39.90

$

39.25

$

37.80

$

36.40

$

35.36

___________________

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

Quarterly Data

Dollars in thousands

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Mar. 31, 2020

Net income

$

12,117

$

11,775

$

10,783

$

10,811

$

6,097

Plus: income tax expense

5,627

5,482

5,111

4,953

2,906

Income before income tax expense

$

17,744

$

17,257

$

15,894

$

15,764

$

9,003

Plus: provision for loan losses

950

1,795

1,137

1,766

4,790

Pre-tax, pre-provision income

$

18,694

$

19,052

$

17,031

$

17,530

$

13,793

View source version on businesswire.com: https://www.businesswire.com/news/home/20210421006001/en/

Contacts

Heather Quinn
212-365-6721
IR@MetropolitanBankNY.com