NYSE$MCB

Metropolitan Bank Holding Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong operating results underscored by increased net interest margin.

Metropolitan Bank Holding Corp. reported a net income of $12.3 million, or $1.08 per diluted common share, for the third quarter of 2024. The net interest margin increased to 3.62%, and total loans and deposits also saw increases.

  • Net interest margin increased by 18 basis points to 3.62% compared to the previous quarter.
  • Total loans increased by $58.2 million from the prior quarter to $5.9 billion.
  • Total deposits increased by $100.2 million from the prior quarter to $6.3 billion.
  • Diluted earnings per share were $1.08, impacted by $12.6 million of pre-tax expenses.

Headline financials

Total Revenue

$71.5M

Previous: $60.1M+19.1%
EPS

$1.08

Previous: $1.97-45.2%
Net interest margin

3.6%

Previous: 3.3%+10.7%
Return on average assets

0.7%

No prior period
Return on average equity

6.9%

Previous: 13.9%-50.4%
Return on average tangible common equity

7.0%

No prior period
Non-performing loans to total loans

0.5%

Previous: 0.6%-8.6%
Allowance for credit losses to total loans

1.1%

No prior period
Tier 1 Leverage (Holding Corp)

10.6%

No prior period
Tier 1 Leverage (Commercial Bank)

10.3%

No prior period
CET1 Risk-Based (Holding Corp)

11.9%

No prior period
CET1 Risk-Based (Commercial Bank)

11.9%

No prior period
Tier 1 Risk-Based (Holding Corp)

12.2%

No prior period
Tier 1 Risk-Based (Commercial Bank)

11.9%

No prior period
Total Risk-Based (Holding Corp)

13.2%

No prior period
Total Risk-Based (Commercial Bank)

12.9%

No prior period
Yield on average earning assets

6.7%

No prior period
Total cost of deposits

3.3%

No prior period
Net interest spread

1.9%

No prior period
Efficiency ratio

71.7%

No prior period
Total cost of funds

3.4%

No prior period
Capital Expenditures

-$629K

No prior period
Free Cash Flow

$12.3M

Previous: $22.1M-44.4%
Net Income

$12.3M

Previous: $22.1M-44.4%
Operating Income

$3.42M

Previous: $12.4M-72.5%
Gross Profit

$68.8M

Previous: $59.3M+16.1%
Stock-Based Comp

$2.48M

Previous: $2.64M-6.1%

Revenue & EPS history

Metropolitan Bank · Revenue · Quarterly

$71.5M

Q3 2024+19.1%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company expects financial results to benefit from the recent reduction in the Fed Funds target rate and any additional monetary policy easing in the future and is well positioned to deliver financial outperformance relative to its peers.

Tailwinds

  • Anticipated benefits from reduced Fed Funds target rate.
  • Potential gains from future monetary policy easing.
  • Well-positioned for financial outperformance.
  • Strong underlying business fundamentals.
  • Continued strength and growth in net interest margin.

Headwinds

  • Lingering effects of high short-term interest rates.
  • Intense competition for deposits.
  • Runoff of lower cost GPG deposits.
  • Replacement of lower cost GPG deposits with market rate deposits.
  • Shift from non-interest bearing deposits to interest bearing funding.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.4%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+5.7%

Avg return

30 days after

60%

25 / 42 earnings

Positive

+19.6%

Q1 2024

Best reaction

-12.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%+1.5%+2.0%
Q4 2025+13.7%+11.5%+18.2%
Q3 2025-4.9%-10.3%-2.1%
Q2 2025-1.8%-2.1%+4.3%
Q1 2025+3.6%+9.6%+15.2%
Q4 2024+7.9%+5.2%-2.6%
Q3 2024-3.5%-8.0%+6.8%
Q2 2024-1.0%-2.9%-15.5%
Q1 2024+19.6%+30.7%+36.9%
Q4 2023-4.2%+2.8%-6.6%
Q3 2023-0.4%-1.9%+13.1%
Q2 2023-12.0%-6.6%-10.5%
Q1 2023+16.4%+8.9%-18.5%
Q4 2022-4.6%-2.5%-0.2%
Q3 2022-5.1%+0.6%+5.5%
Q2 2022+3.1%+5.0%+14.8%
Q1 2022-7.3%-14.4%-28.1%
Q4 2021-3.4%-2.0%-4.0%
Q3 2021+5.3%+11.0%+13.3%
Q2 2021+11.0%+18.3%+30.3%
Q1 2021+11.7%+17.7%+22.1%
Q4 2020+2.0%+9.3%+23.9%
Q3 2020-1.8%-4.5%+7.2%
Q2 2020+0.2%-2.5%-3.0%
Q1 2020-4.5%+8.3%+9.4%
Q4 2019+2.9%+2.9%+4.5%
Q3 2019+0.2%+2.2%+10.0%
Q2 2019-0.9%+1.1%-14.8%
Q1 2019+5.4%+7.4%+7.9%
Q4 2018+1.8%-2.0%+7.9%
Q3 2018+2.9%+3.3%+6.7%
Q2 2018-0.5%-3.6%-16.8%
Q1 2017+0.4%+0.5%+8.5%
Q1 2018+4.5%+5.3%+9.0%
Q2 2016+1.1%+2.0%+13.4%
Q4 2016+1.1%+2.0%+13.4%
Q4 2015+1.1%+2.0%+13.4%
Q2 2017+1.1%+2.0%+13.4%
Q1 2016+1.1%+2.0%+13.4%
Q4 2017+3.2%+8.2%+2.9%
Q3 2016-3.7%-9.1%-9.5%
Q3 2017+0.3%+7.0%+24.8%

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