EX-99.1 2 tm2122845d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Release: 4:30 P.M. July 21, 2021

 

212-365-6721
                      IR@MCBankNY.com

 

Metropolitan Bank Holding Corp. Reports Second Quarter Net Income

of $13.3 Million and Diluted EPS of $1.55

 

v  Total Revenues increased 20.4% from the prior year quarter

 

v  Tangible book value per share increased 14.7% from the prior year quarter

 

 

NEW YORK, July 21, 2021 – Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $13.3 million, or $1.55 per diluted common share, for the second quarter of 2021 compared to net income of $10.8 million, or $1.29 per diluted common share, for the second quarter of 2020.

 

Financial Highlights include:

 

·Total revenues of $43.1 million, up 20.4% from the prior year quarter, and up 26.9% excluding gain on sale of securities[1] recorded in each period

 

·Second quarter earnings per share of $1.55, up 20.2% from the prior year quarter

 

·Book value per share was $42.92 per share, up 14.2% and tangible book value per share1 was $41.75, up 14.7% from prior year quarter

 

·Annualized return on average equity of 15.0% and an annualized return on average tangible common equity1 of 15.7%

 

·Loans were up 6.5% from the linked quarter and 19.3% from June 30, 2020

 

·Deposits were up 19.5% from the linked quarter and 55.8% from June 30, 2020, with non-interest bearing demand deposits increasing by $1.3 billion or 83.0% since June 30, 2020.

 

·Efficiency ratio1 improved to 50.3% compared to 51.1% for the prior year quarter

 

Mark DeFazio, President and Chief Executive Officer, commented, “Our second quarter results, which underscore our sustainable and resilient organic growth, highlight the business model and values we developed 22 years ago when MCB was founded. At its core, MCB is a commercial bank that consistently drives organic loan and deposit growth, which provides sustainable growth in net income, tangible book value per share and EPS. Given our early strategic vision and foresight on industry change, we developed a unique ability to collaborate with fintech clients well before “fintech” was a term. Our Global Payments Group continues to pave the way for the transformation of MCB that allows us to simultaneously be a high performing commercial bank and a critical financial infrastructure partner to fintechs. Our Global Payments Group, with revenue growth and stable, non-interest-bearing deposits, continues to be a meaningful source of liquidity. As our fintech partners continue to gain market share, MCB is well positioned to benefit from this vertical’s low acquisition cost of deposits.

 

 

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

 

 1 

 

 

 

 

As we approach the end of our fourth year as a public company, I am reminded that our people make the difference.  Without the dedication and effort of the entire MCB team, including through the challenges of the pandemic, we would not be able to deliver on our promise to our clients to help them build and sustain generational wealth.  A heartfelt thank you goes out to the entire MCB team for all they do to make this a reality,” Mr. DeFazio concluded. 

 

Balance Sheet

 

The Company had total assets of $5.8 billion at June 30, 2021, an increase of 45.8% from June 30, 2020. Total loans net of deferred fees and unamortized costs increased to $3.5 billion at June 30, 2021, as compared to $2.9 billion at June 30, 2020. The increase in total loans from June 30, 2020 was due primarily to an increase of $225 million in commercial real estate (“CRE”) loans (including construction and multifamily loans) and $335 million in commercial and industrial loans. Loan production was $501 million year to date at June 30, 2021 compared to $330 million year to date at June, 30 2020.

 

Total cash and cash equivalents were $1.7 billion at June 30, 2021, an increase of 108.9% from June 30, 2020. The increase in cash and cash equivalents reflects the strong growth in deposits. Total securities, primarily those classified as available-for-sale (“AFS”), were $548 million at June 30, 2021, an increase of 181.0% from June 30, 2020 due to the deployment of excess liquidity from deposit growth.

 

Total deposits increased to $5.3 billion at June 30, 2021, up 55.8% from $3.4 billion at June 30, 2020. The increase in deposits was due to increases of $1.3 billion in non-interest-bearing deposits and $626 million in interest-bearing deposits, resulting from increases across most deposit verticals. Non-interest-bearing deposits were 52.8% of total deposits at June 30, 2021, as compared to 45.0% at June 30, 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 442.6% of total risk-based capital at June 30, 2021 compared to 422.0% of total risk based capital at June 30, 2020.

 

Income Statement

 

Financial Highlights

 

(dollars in thousands)   Three months ended June 30,    Six months ended June 30, 
    2021   2020     2021   2020  
Total Revenues   $  43,129   $  35,814     $  82,145   $  69,121  
Net income      13,336      10,811        25,453      16,908  
Diluted earnings per common share      1.55      1.29        2.45      2.01  
Annualized return on average assets      0.97 %      1.14 %        1.01 %      0.94 %  
Annualized return on average equity      14.98 %      13.82 %        14.58 %      10.95 %  
Annualized return on average tangible common equity*      15.65 %      14.36 %        15.24 %      11.54 %  

 

 2 

 

 

 

 

Net Interest Income

 

Net interest income for the second quarter of 2021 was $37.0 million, an increase of $2.6 million from the linked quarter. This increase was primarily due to a higher average balance of $5.5 billion in interest-earning assets for the second quarter of 2021, which increased $816 million from the linked quarter. This increase was partially offset by an increase of $253 million in average interest-bearing liabilities, which were $2.4 billion for the second quarter of 2021, as compared to $2.2 billion for the linked quarter.

 

Net interest income increased $6.8 million for the second quarter of 2021, as compared to the second quarter of 2020, primarily due to an increase of $1.7 billion in the average balance of interest-earning assets for the second quarter of 2021, as compared to the second quarter of 2020. This was partially offset by a $423 million increase in the average balance of interest-bearing liabilities for the second quarter of 2021, as compared to the second quarter of 2020.

 

Net Interest Margin

 

Net interest margin decreased by 32 basis points to 2.68% for the second quarter of 2021, as compared to 3.00% for the linked quarter, primarily due to increased lower yielding overnight deposits driven by deposit growth. Additionally, the average cost of interest-bearing deposits remained at 0.60%.

 

Net interest margin decreased by 51 basis points to 2.68% for the second quarter of 2021 as compared to 3.19% for the second quarter of 2020, primarily due to increased low yielding 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.

 

Total cost of funds was 32 basis points, a decrease of 3 basis points from the linked quarter, and a decrease of 16 basis points from the prior year quarter, given the shift in mix toward non-interest bearing deposits.

 

Non-Interest Income

 

Non-interest income was $6.2 million for the second quarter of 2021, an increase of $1.6 million from the linked quarter driven primarily by a $0.4 million increase in Global Payments Group revenue, which continues to see strong increases in client transaction volumes driving revenue growth, a $0.6 million increase in recognized gains on sales of AFS securities and an increase of $0.5 million in service charges and fees.

 

Non-interest income for the second quarter of 2021 increased by $0.5 million, as compared to the second quarter of 2020. The increase was primarily due to an increase of $1.5 million of Global Payments Group revenue, an increase of $0.7 million in service charges and fees, offset by a reduction in recognized gains on sales of AFS securities of $1.7 million.

 

Non-Interest Expense

 

Non-interest expense was $21.7 million for the second quarter of 2021, an increase of $1.4 million from the linked quarter. The primary drivers were a $0.7 million increase in professional fees and a $0.5 million increase in technology costs, both of which primarily related to business and volume growth.

 

Non-interest expense increased $3.4 million for the second quarter of 2021, as compared to the second quarter of 2020. Drivers included an increase in compensation and benefits cost due to additional full-time employees along with annual salary adjustments and increases in professional fees in line with business and volume growth, partially offset by reduced licensing fees given the LIBOR rate reduction.

  

 3 

 

 

 

 

Asset Quality

 

Credit quality remains strong with no charge offs in the second quarter of 2021, while non-performing loans fell to 0.2% of total loans. During the second quarter of 2021, the Company recorded a credit provision of $1.9 million primarily driven by loan growth. COVID-19 related full payment deferrals declined to $11.0 million, or 0.3% of the total loan portfolio as of June 30, 2021. Principal only deferrals remained steady at $37.3 million or 1.1% of total loans as of the same date.

 

About Metropolitan Bank Holding Corp.

 

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. the 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 Federal Deposit Insurance Corporation (“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 or securities portfolios, unexpected increases in our expenses, greater than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, 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, unanticipated increases in FDIC costs, changes in regulations, legislation or accounting rules 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.

 

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.

 

 4 

 

 

 

Consolidated Balance Sheet

 

(dollars in thousands)  June 30, 2021   December 31, 2020   June 30, 2020 
Assets               
Cash and due from banks  $29,651   $8,692   $9,529 
Overnight deposits   1,689,614    855,613    813,147 
Total cash and cash equivalents   1,719,265    864,305    822,676 
Investment securities available for sale   543,769    266,096    189,359 
Investment securities held to maturity   2,222    2,760    3,319 
Investment securities -- equity investments   2,291    2,313    2,301 
Total securities   548,282    271,169    194,979 
Other investments   11,989    11,597    15,731 
Loans, net of deferred fees and unamortized costs   3,449,490    3,137,053    2,892,274 
Allowance for loan losses   (37,377)   (35,407)   (32,505)
Net loans   3,412,113    3,101,646    2,859,769 
Receivable from prepaid card programs, net   43,089    27,259    31,123 
Accrued interest receivable   14,424    13,249    11,148 
Premises and equipment, net   13,337    13,475    15,065 
Prepaid expenses and other assets   14,961    18,388    10,217 
Goodwill   9,733    9,733    9,733 
Total assets  $5,787,193   $4,330,821   $3,970,441 
Liabilities and Stockholders' Equity               
Deposits:               
Non-interest-bearing demand deposits  $2,794,136   $1,726,135   $1,526,439 
Interest-bearing deposits   2,494,137    2,103,471    1,868,300 
Total deposits   5,288,273    3,829,606    3,394,739 
Federal Home Loan Bank of New York advances   —    —    104,000 
Trust preferred securities   20,620    20,620    20,602 
Subordinated debt, net of issuance cost   24,684    24,657    24,629 
Secured borrowings   36,449    36,964    41,948 
Accounts payable, accrued expenses and other liabilities   30,598    61,645    34,780 
Accrued interest payable   1,773    712    1,199 
Prepaid third-party debit cardholder balances   21,201    15,830    31,357 
Total liabilities   5,423,598    3,990,034    3,653,272 
                
Class B preferred stock   3    3    3 
Common stock   83    82    82 
Additional paid in capital   219,098    218,899    217,644 
Retained earnings   146,283    120,830    98,271 
Accumulated other comprehensive gain/(loss), net of tax effect   (1,872)   973    1,169 
Total stockholders’ equity   363,595    340,787    317,169 
Total liabilities and stockholders’ equity  $5,787,193   $4,330,821   $3,970,441 

 

 5 

 

 

 

 

Consolidated Statement of Income (unaudited)

 

   Three Months Ended   Six Months Ended 
(dollars in thousands)  June 30, 2021   March 31, 2021   June 30, 2020   June 30, 2021   June 30, 2020 
Total interest income  $41,050    38,106   $34,223   $79,156   $70,291 
Total interest expense   4,077    3,684    4,062    7,760    11,159 
Net interest income   36,973    34,422    30,161    71,396    59,132 
Provision for loan losses   1,875    950    1,766    2,825    6,556 
Net interest income after provision for loan losses   35,098    33,472    28,395    68,571    52,576 
                          
Non-interest income:                         
Service charges on deposit accounts   1,349    1,065    803    2,414    1,883 
Global payments revenue   3,628    3,267    2,108    6,894    3,729 
Other service charges and fees   566    304    411    868    1,036 
Unrealized gain (loss) on equity securities   4    (41)   19    (36)   55 
Gain on sale of securities   609    —    2,312    609    3,286 
Total non-interest income   6,156    4,595    5,653    10,749    9,989 
                          
Non-interest expense:                         
Compensation and benefits   11,211    11,428    10,058    22,638    20,017 
Bank premises and equipment   2,000    2,024    1,887    4,024    4,387 
Professional fees   2,003    1,304    882    3,306    1,837 
Technology costs   1,447    927    824    2,374    1,581 
Licensing fees   2,067    2,074    2,636    4,141    5,684 
Other expenses   2,961    2,566    1,997    5,528    4,291 
Total non-interest expense   21,689    20,323    18,284    42,011    37,797 
                          
Net income before income tax expense   19,565    17,744    15,764    37,309    24,768 
Income tax expense   6,229    5,627    4,953    11,856    7,860 
Net income  $13,336    12,117   $10,811   $25,453   $16,908 
                          
Earnings per common share:                         
Average common shares outstanding - basic   8,312,234    8,276,174    8,221,748    8,294,404    8,218,853 
Average common shares outstanding - diluted   8,543,474    8,417,319    8,359,450    8,479,562    8,391,514 
Basic earnings  $1.59    1.46   $1.30   $2.50   $2.04 
Diluted earnings  $1.55    1.43   $1.28   $2.45   $2.00 

 

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Net Interest Margin Analysis

 

   Three months ended 
   June 30, 2021   March 31, 2021 
   Average            Average          
   Outstanding       Yield/Rate    Outstanding       Yield/Rate  
(dollars in thousands)  Balance   Interest   (annualized)    Balance   Interest   (annualized)  
Assets:                          
Interest-earning assets:                                
Loans (1)  $3,334,762   $39,234    4.65 %  $3,187,450   $36,840    4.67 %
Available-for-sale securities   487,147    1,204    0.98 %   330,451    752    0.91 %
Held-to-maturity securities   2,348    9    1.52 %   2,623    11    1.71 %
Equity investments - non-trading   2,309    7    1.20 %   2,302    8    1.39 %
Overnight deposits   1,612,187    442    0.11 %   1,100,690    344    0.13 %
Other interest-earning assets   11,985    154    5.15 %   11,610    151    5.27 %
Total interest-earning assets   5,450,738    41,050    2.98 %   4,635,126    38,106    3.32 %
Non-interest-earning assets   90,287               69,894            
Allowance for loan and lease losses   (36,339)              (35,969)           
Total assets  $5,504,686              $4,669,051            
                                 
Liabilities and Stockholders' Equity:                                
Interest-bearing liabilities:                                
Money market, savings and other interest-bearing accounts  $2,314,791   $3,348    0.58 %  $2,058,611   $2,907    0.57 %
Certificates of deposit   83,606    217    1.04 %   86,902    264    1.23 %
Total interest-bearing deposits   2,398,397    3,565    0.60 %   2,145,513    3171    0.60 %
Borrowed funds   45,296    512    4.47 %   45,282    513    4.53 %
Total interest-bearing liabilities   2,443,693    4,077    0.67 %   2,190,795    3,684    0.68 %
Non-interest-bearing liabilities:                                
Non-interest-bearing deposits   2,603,198               2,067,539            
Other non-interest-bearing liabilities   100,698               63,932            
Total liabilities   5,147,589               4,322,266            
                                 
Stockholders' equity   357,097               346,785            
Total liabilities and equity  $5,504,686              $4,669,051            
                                 
Net interest income       $36,973              $34,422       
Net interest rate spread (2)             2.31 %             2.64 %
Net interest-earning assets  $3,007,045              $2,444,331            
Net interest margin (3)             2.68 %             3.00 %
Ratio of interest earning assets to interest bearing liabilities             2.23 x             2.12 x
Total cost of funds (4)             0.32 %             0.35 %

 

 

(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.

 

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   Three months ended  
   June 30, 2021    June 30, 2020  
   Average            Average          
   Outstanding       Yield/Rate    Outstanding       Yield/Rate  
(dollars in thousands)  Balance   Interest   (annualized)    Balance   Interest   (annualized)  
Assets:                          
Interest-earning assets:                                
Loans (1)  $3,334,762   $39,234    4.65 %  $2,827,154   $32,983    4.68 %
Available-for-sale securities   487,147    1,204    0.98 %   138,944    609    1.73 %
Held-to-maturity securities   2,348    9    1.52 %   3,423    16    1.85 %
Equity investments - non-trading   2,309    7    1.20 %   2,274    11    1.91 %
Overnight deposits   1,612,187    442    0.11 %   794,377    374    0.19 %
Other interest-earning assets   11,985    154    5.15 %   18,485    230    4.92 %
Total interest-earning assets   5,450,738    41,050    2.98 %   3,784,657    34,223    3.62 %
Non-interest-earning assets   90,287               59,014            
Allowance for loan and lease losses   (36,339)              (31,446)           
Total assets  $5,504,686              $3,812,225            
                                 
Liabilities and Stockholders' Equity:                                
Interest-bearing liabilities:                                
Money market, savings and other interest-bearing accounts  $2,314,791   $3,348    0.58 %  $1,764,742   $2,437    0.56 %
Certificates of deposit   83,606    217    1.04 %   97,688    478    1.97 %
Total interest-bearing deposits   2,398,397    3,565    0.60 %   1,862,430    2,915    0.63 %
Borrowed funds   45,296    512    4.47 %   158,471    1,147    2.86 %
Total interest-bearing liabilities   2,443,693    4,077    0.67 %   2,020,901    4,062    0.81 %
Non-interest-bearing liabilities:                                
Non-interest-bearing deposits   2,603,198               1,398,438            
Other non-interest-bearing liabilities   100,698               78,159            
Total liabilities   5,147,589               3,497,498            
                                 
Stockholders' equity   357,097               314,727            
Total liabilities and equity  $5,504,686              $3,812,225            
                                 
Net interest income       $36,973              $30,161       
Net interest rate spread (2)             2.31 %             2.81 %
Net interest-earning assets  $3,007,045              $1,763,756            
Net interest margin (3)             2.68 %             3.19 %
Ratio of interest earning assets to interest bearing liabilities             2.23 x             1.87 x
Total cost of funds (4)             0.32 %             0.48 %

 

(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.

 

 8 

 

 

Summary of Income and Performance Measures

Five Quarter Trend (unaudited)

 

   Quarter Ended 
(Dollars in thousands)  June 30, 2021   Mar. 31, 2021   Dec. 31, 2020   Sept. 30, 2020   June 30, 2020 
Net interest income  $36,973   $34,422   $33,467   $32,324   $30,161 
Provision for loan losses   1,875    950    1,795    1,137    1,766 
Net interest income after provision for loan losses   35,098    33,472    31,672    31,187    28,395 
Non-interest income   6,156    4,595    3,373    3,637    5,653 
Non-interest expense:                         
Compensation and benefits   11,211    11,428    9,835    9,944    10,058 
Other expense   10,478    8,895    7,953    8,986    8,226 
Total non-interest expense   21,689    20,323    17,788    18,930    18,284 
                          
Income before income tax expense   19,565    17,744    17,257    15,894    15,764 
Income tax expense   6,229    5,627    5,482    5,111    4,953 
Net income   13,336    12,117    11,775    10,783    10,811 
                          
Pre-tax, pre-provision income*  $21,440   $18,694   $19,052   $17,031   $17,530 
                          
Performance Measures:                         
Net income available to common shareholders   13,252    12,062    11,690    10,694    10,716 
Per common share:                         
Basic earnings  $1.59   $1.46   $1.42   $1.30   $1.30 
Diluted earnings  $1.55   $1.43   $1.39   $1.27   $1.29 
Common shares outstanding:                         
  Average - diluted   8,543,474    8,417,319    8,417,729    8,393,211    8,359,450 
  Period end   8,344,193    8,345,032    8,295,272    8,289,479    8,294,801 
Return on (annualized):                         
Average total assets   0.97%   1.05%   1.13%   1.07%   1.14%
Average equity   14.98%   14.17%   13.94%   13.20%   13.82%
Average tangible common equity*   15.65%   14.82%   14.61%   13.85%   14.36%
Yield on average earning assets   2.98%   3.32%   3.54%   3.54%   3.62%
Cost of interest-bearing liabilities   0.67%   0.68%   0.64%   0.71%   0.81%
Net interest spread   2.31%   2.64%   2.90%   2.83%   2.81%
Net interest margin   2.68%   3.00%   3.21%   3.18%   3.19%
Net charge-offs as % of average loans (annualized)   —%   0.11%   —%   —%   0.03%
Efficiency ratio   50.29%   52.09%   48.28%   52.64%   54.58%

 

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

 

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Consolidated Balance Sheet Summary, Five Quarter Trend (unaudited)

 

(dollars in thousands)  June 30, 2021   Mar. 31, 2021   Dec. 31, 2020   Sept. 30, 2020   June 30, 2020 
Assets                         
Total assets  $5,787,193   $4,922,801   $4,330,821   $4,001,759   $3,970,441 
Overnight deposits   1,689,614    1,125,589    855,613    758,913    813,147 
Total securities   548,282    484,761    271,169    187,695    194,979 
Other investments   11,989    11,638    11,597    11,097    15,731 
Loans, net of deferred fees and unamortized costs   3,449,490    3,237,664    3,137,053    2,989,550    2,892,274 
Liabilities and Stockholders' Equity                         
Deposits:                         
Non-interest-bearing demand deposits  $2,794,136   $2,167,899   $1,715,042   $1,553,241   $1,526,439 
Interest-bearing deposits   2,494,137    2,258,818    2,103,471    1,974,385    1,868,300 
Total deposits   5,288,273    4,426,717    3,814,513    3,527,626    3,334,739 
Borrowings   45,304    45,290    45,277    45,263    149,249 
Total stockholders' Equity   363,595    348,217    340,787    328,584    317,169 
Loan Production  $265.4   $235.7   $174.0   $183.3   $177.3 
Asset Quality                         
Non-performing loans:                         
  Non-accrual loans:                         
    Commercial and industrial   3,337    3,337    4,192    4,512    6,482 
    Consumer   1,560    1,523    1,428    1,157    601 
Total non-accrual loans  $4,897   $4,860   $5,620   $5,669   $7,083 
Total non-performing loans  $5,491   $5,464   $6,389   $6,623   $8,448 
Non-accrual loans to total loans   0.14%   0.15%   0.18%   0.19%   0.24%
Non-performing loans to total loans   0.16%   0.17%   0.20%   0.22%   0.29%
Allowance for loan losses   (37,377)   (35,502)   (35,407)   (33,614)   (32,505)
Allowance for loan losses to total loans   1.08%   1.10%   1.13%   1.12%   1.12%
Charge-offs  $—   $(855)  $(30)  $(82)  $(192)
Recoveries  $—   $—   $28   $54   $7 
Net charge-offs/(recoveries) as % of average loans (annualized)   —%   0.11    —%   —%   0.03%
Regulatory Capital                         
Tier 1 Leverage:                         
Metropolitan Bank Holding Corp.   6.8%   7.8%   8.5%   8.4%   8.6%
Metropolitan Commercial Bank   7.3%   8.2%   9.0%   9.0%   9.2%
Common Equity Tier 1 Risk-Based (CET1):                         
Metropolitan Bank Holding Corp.   9.7%   9.9%   10.1%   10.1%   9.9%
Metropolitan Commercial Bank   11.1%   11.3%   11.6%   11.8%   11.6%
Tier 1 Risk-Based:                         
Metropolitan Bank Holding Corp.   10.5%   10.7%   10.9%   11.0%   10.8%
Metropolitan Commercial Bank   11.1%   11.3%   11.6%   11.8%   11.6%
Total Risk-Based:                         
Metropolitan Bank Holding Corp.   12.2%   12.4%   12.7%   12.9%   12.7%
Metropolitan Commercial Bank   12.2%   12.4%   12.7%   12.9%   12.6%

 

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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   YTD 
Dollars in thousands, except per share data  June 30, 2021   Mar. 31, 2021   Dec. 31, 2020   Sept. 30, 2020   June 30, 
2020		   June 30, 2021   June 30, 2020 
Average assets  $5,504,686   $4,669,051   $4,153,908   $4,026,366   $3,812,225   $5,089,152   $3,633,280 
Less: average intangible assets   9,733    9,733    9,733    9,733    9,733    9,733    9,733 
Average tangible assets  $5,494,953   $4,659,318   $4,144,175   $4,016,633   $3,802,492   $5,079,419   $3,623,547 
                                    
Average equity  $357,097   $346,785   $335,940   $324,876   $314,727   $351,945   $310,607 
Less: Average preferred equity   5,502    5,502    5,502    5,502    5,502    5,502    5,502 
Average common equity  $351,595   $341,283   $330,438   $319,374   $309,225   $346,443   $305,105 
Less: average intangible assets   9,733    9,733    9,733    9,733    9,733    9,733    9,733 
Average tangible common equity  $341,862   $331,550   $320,705   $309,641   $299,492   $336,710   $295,372 
                                    
Total assets  $5,787,193   $4,922,801   $4,330,821   $4,001,759   $3,970,441   $5,787,193   $3,970,441 
Less: intangible assets   9,733    9,733    9,733    9,733    9,733    9,733    9,733 
Tangible assets  $5,777,460   $4,913,068   $4,321,088   $3,992,026   $3,960,708   $5,777,460   $3,960,708 
                                    
Total equity  $363,595   $348,217   $340,787   $328,584   $317,169   $363,595   $317,169 
Less: preferred equity   5,502    5,502    5,502    5,502    5,502    5,502    5,502 
Common equity  $358,093   $342,715   $335,285   $323,082   $311,667   $358,093   $311,667 
Less: intangible assets   9,733    9,733    9,733    9,733    9,733    9,733    9,733 
Tangible common equity (book value)  $348,360   $332,982   $325,552   $313,349   $301,934   $348,360   $301,934 
                                    
Common shares outstanding   8,344,193    8,345,032    8,295,272    8,289,479    8,294,801    8,344,193    8,294,801 
                                    
Book value per share (GAAP)  $42.92   $41.07   $40.42   $38.97   $37.57   $42.92   $37.57 
Tangible book value per share (non-GAAP)*  $41.75   $39.90   $39.25   $37.80   $36.40   $41.75   $36.40 
                                    
Total revenue (GAAP)**  $43,129   $39,017   $33,467   $32,234   $35,814   $82,145   $69,121 
Gain on sale of securities   609    -    -    -    2,312    609    3,286 
Revenue excluding gain on sale of
securities (non-GAAP)		  $42,520   $39,017   $33,467   $32,234   $33,502   $81,536   $65,835 

  

 

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

** Total revenue equals net interest income plus non-interest income.

 

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   Quarterly Data 
Dollars in thousands  June 30, 2021   Mar. 31, 2021   Dec. 31, 2020   Sept. 30, 2020   June 30, 2020 
Net income  $13,336   $12,117   $11,775   $10,783   $10,811 
Plus: income tax expense   6,229    5,627    5,482    5,111    4,953 
Income before income tax expense  $19,565   $17,744   $17,257   $15,894   $15,764 
Plus: provision for loan losses   1,875    950    1,795    1,137    1,766 
Pre-tax, pre-provision income  $21,440   $18,694   $19,052   $17,031   $17,530 
                          
Total non-interest expense (GAAP)  $21,689   $20,323   $17,788   $18,930   $18,284 
Total Revenue (GAAP)  $43,129   $39,017   $36,840   $35,961   $35,814 
Efficiency ratio (non-GAAP)   50.3%   52.1%   48.3%   52.6%   51.1%

 

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