8-K
Metropolitan Bank Holding Corp. (MCB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 23, 2025
METROPOLITAN BANK HOLDING CORP.
(Exact Name of Registrant as Specified in Its Charter)
| | | |
|---|---|---|
| New York | 001-38282 | 13-4042724 |
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File No.) | (I.R.S. Employer Identification No.) |
| | | |
| 99 Park Avenue , New York , New York | | 10016 |
| (Address of Principal Executive Offices) | | (Zip Code) |
( 212 ) 659-0600
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)
| | | |||
|---|---|---|---|---|
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, par value $0.01 per share | | MCB | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition
On January 23, 2025, Metropolitan Bank Holding Corp. (the “Company”), the holding company for Metropolitan Commercial Bank (the “Bank”), issued a press release announcing its financial results for the fourth quarter and full year of 2024. The press release containing the financial results is attached hereto as Exhibit 99.1 and shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.1 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.
Item 7.01Regulation FD Disclosure
The Company has also made available on its website presentation materials containing additional information about the Company’s financial results for the fourth quarter and full year of 2024 (the “Presentation Materials”). The Presentation Materials are furnished herewith as Exhibit 99.2 and is incorporated by reference in this Item 7.01.
The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.
Item 9.01.Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated January 23, 2025 |
| 99.2 | Presentation Materials |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
METROPOLITAN BANK HOLDING CORP.
Dated: January 23, 2025By:/s/ Daniel F. Dougherty
Daniel F. Dougherty
Executive Vice President and
Chief Financial Officer
Exhibit 99.1
| Release: | 4:05 P.M. January 23, 2025 |
|---|
212-365-6721
IR@MCBankNY.com
Metropolitan Bank Holding Corp. Reports Fourth Quarter and Full Year 2024 Results
Strong Quarter and Full Year Results Underscored by Successful Execution of Strategic Initiatives
Financial Highlights
●The net interest margin for the fourth quarter of 2024 was 3.66%, an increase of 4 basis points compared to 3.62% for the prior linked quarter and an increase of 30 basis points compared to 3.36% for the prior year period.
●Total loans at December 31, 2024 were $6.0 billion, an increase of $137.0 million, or 2.3%, from September 30, 2024 and $409.3 million, or 7.3%, from December 31, 2023.
●Total deposits at December 31, 2024 were $6.0 billion, an increase of $245.7 million, or 4.3%, from December 31, 2023. The increase in deposits was due to a $934.7 million increase spread across most of the Bank’s various deposit verticals, partially offset by a $689.0 million decrease in GPG deposits due to the successful completion of the GPG wind down.
●Diluted earnings per share of $1.88 for the fourth quarter of 2024, compared to $1.08 for the prior linked quarter and $1.28 for the prior year period.
●Return on average equity of 11.8% and return on average tangible common equity^1^ of 12.0% for the fourth quarter of 2024.
●Asset quality continues to be stable. The ratio of non-performing loans to total loans was 0.54% at December 31, 2024, compared to 0.53% for the prior linked quarter.
●Liquidity remains strong. At December 31, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion, which represented 192% of our estimated uninsured deposits.
●The Company and Bank are “well capitalized” under applicable regulatory guidelines, with total risk-based capital ratios of 13.3% and 13.0%, respectively, at December 31, 2024, well above regulatory minimums.
●Continued progress on the Company’s previously announced Modern Banking in Motion Digital Transformation initiative.
^1^ Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.
NEW YORK, January 23, 2025 ‒ Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $21.4 million, or $1.88 per diluted common share, for the fourth quarter of 2024 compared to $12.3 million, or $1.08 per diluted common share, for the third quarter of 2024, and $14.6 million, or $1.28 per diluted common share, for the fourth quarter of 2023.
1
Mark DeFazio, President and Chief Executive Officer, commented,
“I am pleased with MCB’s fourth quarter and full year performance for 2024. Beyond our core commercial banking business, we made meaningful progress on two major initiatives in 2024. First, MCB reached a significant milestone and successfully exited its 22-year old BaaS business with only a few minor operational tasks remaining. Throughout the exit, MCB demonstrated its core strengths by replacing the deposits associated with this business timely and efficiently, while increasing our NIM. The other significant initiative, our investment in a franchise-wide new technology stack, is expected to be completed by year end 2025. We are confident we have scaled these new technologies to support MCB’s diversified commercial banking business for years to come.
“While managing these initiatives, MCB advanced its sustained growth strategy with strong profitability, continued solid asset quality, and further solidified its presence in New York and several other markets around the country.
“Our solid performance in the dynamic environment of 2024 sets the stage for enhanced performance in 2025. I am particularly optimistic, in light of the anticipated improvement in the operating environment and the positive economic outlook. By maintaining our core discipline and implementing other opportunistic growth initiatives, we plan to continue to enhance our strong industry position in 2025 and beyond.”
Balance Sheet
Total cash and cash equivalents were $200.3 million at December 31, 2024, a decrease of $118.2 million, or 37.1%, from September 30, 2024 and a decrease of $69.2 million, or 25.7%, from December 31, 2023. The decrease from September 30, 2024, primarily reflects an increase in the loan book of $137.0 million and a $286.9 million decrease in deposits, partially offset by a $200.0 million increase in wholesale funding. The decrease from December 31, 2023, primarily reflects an increase in the loan book of $409.3 million and a $89.0 million decrease in wholesale funding, partially offset by $245.7 million increase in deposits and $87.6 million decrease in receivables from the GPG wind down.
Total loans, net of deferred fees and unamortized costs, were $6.0 billion at December 31, 2024, an increase of $137.0 million, or 2.3%, from September 30, 2024, and an increase of $409.3 million, or 7.3%, from December 31, 2023. Loan production was $309.0 million for the fourth quarter of 2024 compared to $460.6 million for the prior linked quarter and $342.5 million for the prior year period. The increase in total loans from September 30, 2024 was due primarily to an increase of $144.7 million in commercial real estate (“CRE”) loans (including owner-occupied), partially offset by a decrease of $23.5 million in commercial and industrial loans. The increase in total loans from December 31, 2023 was due primarily to an increase of $459.7 million in CRE loans (including owner-occupied), partially offset by a $90.8 million decrease in multi-family loans.
Total deposits were $6.0 billion at December 31, 2024, a decrease of $286.9 million, or 4.6%, from September 30, 2024, and an increase of $245.7 million, or 4.3%, from December 31, 2023. The decrease from September 30, 2024 was due primarily to a $678.3 million decrease in GPG deposits, partially offset by a $391.4 million increase spread across most of the Company’s various deposit verticals. The increase in deposits from December 31, 2023, was due to a $934.7 million increase spread across most of the Bank’s various deposit verticals, partially offset by a $689.0 million decrease in GPG deposits due to the successful completion of the GPG wind down.
At December 31, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 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 346.1% of total risk-based capital at December 31, 2024, compared to 353.3% and 368.1% at September 30, 2024 and December 31, 2023, respectively.
2
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) | | 2024 | | 2024 | | 2023 | | | 2024 | | 2023 | | |||||
| Total revenues^(1)^ | | $ | 71,004 | | $ | 71,518 | | $ | 63,555 | | | $ | 276,913 | | $ | 250,739 | |
| Net income (loss) | | $ | 21,418 | | $ | 12,266 | | $ | 14,568 | | | | 66,686 | | | 77,268 | |
| Diluted earnings (loss) per common share | | $ | 1.88 | | $ | 1.08 | | $ | 1.28 | | | 5.93 | | 6.91 | | ||
| Return on average assets^(2)^ | | 1.16 | % | 0.67 | % | 0.84 | % | | 0.91 | % | 1.19 | % | |||||
| Return on average equity^(2)^ | | 11.8 | % | 6.9 | % | 9.0 | % | | 9.6 | % | 12.4 | % | |||||
| Return on average tangible common equity^(2), (3), (4)^ | | 12.0 | % | 7.0 | % | 9.1 | % | | 9.7 | % | 12.6 | % |
| (1) | Total revenues equal net interest income plus non-interest income. |
|---|---|
| (2) | For periods less than a year, ratios are annualized. |
| --- | --- |
| (3) | Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13. |
| --- | --- |
| (4) | Net income divided by average tangible common equity. |
| --- | --- |
Net Interest Income
Net interest income for the fourth quarter of 2024 was $66.6 million compared to $65.2 million for the prior linked quarter and $57.0 million for the prior year period. The $1.4 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by a decrease in loan yields primarily related to reductions in short-term interest rates that affect floating rate loans, a decline in the average balance of overnight deposits, and an increase in the average balance of interest earning liabilities, including $80.3 million in wholesale funding. The $9.6 million increase from the prior year period was due primarily to an increase in the average balance of loans, an increase in loan yields, and a decrease in the average balance of borrowed funds, partially offset by an increase in the average balance of deposits.
Net interest income for the year 2024 was $253.1 million compared to $222.8 million for the prior year. The $30.2 million increase from the prior year was due primarily to an increase in the average balance of loans, an increase in loan yields, partially offset by an increase in the cost of funds and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit.
Net Interest Margin
Net interest margin for the fourth quarter of 2024 was 3.66% compared to 3.62% and 3.36% for the prior linked quarter and prior year period, respectively. The 4 basis point increase from the prior linked quarter was driven largely by an increase in the average balance of loans and a decrease in the cost of funds, partially offset by a decrease in loan yields, a decrease in the average balance of overnight deposits, and an increase in the average balance of interest earning liabilities. The 30 basis point increase from the prior year period was due primarily to an increase in the average balance of loans, an increase in loan yields, and a decrease in the average balance of borrowed funds, partially offset by an increase in the average balance of deposits.
Net interest margin for the year 2024 was 3.53% compared to 3.49% for the prior year, primarily driven by an increase in the average balance of loans and the yield on loans, partially offset by an increase in the average balance of deposits and the cost of funds.
The total cost of funds for the fourth quarter of 2024 was 325 basis points compared to 339 basis points and 314 basis points for the prior linked quarter and prior year, respectively. The decrease from the prior linked quarter reflects the recent reduction in short-term interest rates, partially offset by the runoff of lower cost GPG deposits replaced with market rate deposits and wholesale borrowings. The increase from the prior year reflects the relatively high short-term 3
interest rates in the earlier part of the year, the intense competition for deposits, and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit.
The total cost of funds for the year 2024 was 332 basis points compared to 265 basis points for the prior year. The increase reflects the relatively high short-term interest rates in the earlier part of the year, the intense competition for deposits, and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit.
Non-Interest Income
Non-interest income was $4.4 million for the fourth quarter of 2024, a decrease of $1.9 million from the prior linked quarter and a decrease of $2.2 million from the prior year period. The decrease from the prior linked quarter was driven primarily by a decline in GPG revenue as that business was wound down. The decrease from the prior year period was driven primarily by lower GPG revenue, partially offset by an increase in service charges on deposit accounts.
Non-interest income was $23.8 million for the year 2024, a decrease of $4.1 million from the prior year. The decrease from the prior year was driven primarily by lower GPG revenue as that business was wound down, partially offset by an increase in service charges on deposit accounts.
Non-Interest Expense
Non-interest expense was $38.2 million for the fourth quarter of 2024, a decrease of $13.1 million from the prior linked quarter and an increase of $1.0 million from the prior year period. The decrease from the prior linked quarter was due primarily to the pre-tax $10.0 million regulatory reserve recorded in the third quarter of 2024, which was recorded in connection with a matter involving the Attorney General of the State of Washington that was resolved in the fourth quarter of 2024. The $1.0 million increase from the prior year period was due primarily to a $1.4 million increase in compensation and benefits related to the increase in the number of employees and a $1.0 million increase in technology costs related to the digital transformation initiative, partially offset by a $1.3 million decrease in professional fees.
Non-interest expense was $173.6 million for the year 2024, an increase of $42.0 million from the prior year. The increase from the prior year was due primarily to the pre-tax $10.0 million regulatory reserve recorded in the third quarter of 2024, the $5.0 million reversal of the reserve in 2023, a $10.9 million increase in compensation and benefits related to the increase in the number and mix of employees, as well as severance related expenses, and a $6.1 million increase in technology costs related to the digital transformation initiatives.
Income Tax Expense
The effective tax rate for the year 2024 was 31.3% compared to 27.7% for the prior year. The effective tax rate for the prior year reflects a discrete tax item related to the exercise of stock options in the third quarter of 2023 and the reversal of the regulatory settlement reserve in that period.
Asset Quality
Credit quality remains stable. The ratio of non-performing loans to total loans was 0.54% at December 31, 2024 and 0.53% at September 30, 2024. The ratio of non-performing loans to total loans was 0.92% at December 31, 2023.
The allowance for credit losses was $63.3 million at December 31, 2024, an increase of $780,000 from September 30, 2024, and $5.3 million from December 31, 2023. The increase from September 30, 2024 primarily reflects loan growth. The increase from December 31, 2023 primarily reflects loan growth and a provision related to a single C&I loan. 4
Conference Call
The Company will conduct a conference call at 9:00 a.m. ET on Friday, January 24, 2025, to discuss the results. To access the event by telephone, please dial 800-579-2543 (US), 785-424-1789 (INTL), and provide conference ID: MCBQ424 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 was named one of Newsweek’s Best Regional Banks and Credit Unions 2025. The Bank was ranked by Independent Community Bankers of America among the top ten successful loan producers for 2024 by loan category and asset size for commercial banks with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating on January 25, 2024. For the fourth time, MCB has earned a place in the Piper Sandler Bank Sm-All Stars Class of 2024.
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. 5
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 Federal Reserve and other regulatory bodies; an unexpected deterioration in the performance of our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; global pandemics, or localized epidemics, could adversely affect the Company’s financial condition and results of operations; potential recessionary conditions, including the related effects on our borrowers and on our financial condition and results of operations; an unanticipated loss of key personnel or existing clients, or an inability to attract key employees; increases in competitive pressures among financial institutions or from non-financial institutions which may result in unanticipated changes in our loan or deposit rates; unanticipated increases in FDIC insurance premiums or future assessments; legislative, tax or regulatory changes or actions, which may adversely affect the Company’s business; impacts related to or resulting from regional and community bank failures and stresses to regional banks; changes in deposit flows, funding sources or loan demand, which may adversely affect the Company’s business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition or results of operation to be reported or perceived differently; general economic conditions, including unemployment rates, either nationally or locally in some or all of the areas in which the Company does business, or conditions in the securities markets or the banking industry being less favorable than currently anticipated; inflation, which may lead to higher operating costs; declines in real estate values in the Company’s market area, which may adversely affect our loan production; an unexpected adverse financial, regulatory, legal or bankruptcy event experienced by our non-bank financial service clients; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company’s third-party service providers or those of our non-bank financial service clients for which we provide global payments infrastructure; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or clients; failure to maintain current technologies or technological changes that may be more difficult or expensive to implement than anticipated, and failure to successfully implement future information technology enhancements; the costs, including the possible incurrence of 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 to which we or any of our subsidiaries are a party, and which may adversely affect our results; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the successful implementation or consummation of new business initiatives, which may be more difficult or expensive than anticipated; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by clients; changes in consumer spending, borrowing or savings habits; the risks associated with adverse changes to credit quality; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance for credit losses; credit and other risks from borrower and depositor concentrations (e.g., by geographic area and by industry); difficulties associated with achieving or predicting expected future financial results; and the potential impact on the Company’s operations and clients resulting from natural or man-made disasters, wars, acts of terrorism, cyberattacks and pandemics, 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. 6
Consolidated Balance Sheet (unaudited)
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Dec. 31, | | Sept. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | |||||
| (in thousands) | **** | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | |||||
| Assets | | | | | | | | | | | | | |||
| Cash and due from banks | | $ | 13,078 | | $ | 16,674 | | $ | 18,152 | | $ | 34,037 | | $ | 31,973 |
| Overnight deposits | | 187,190 | | 301,804 | | 226,510 | | 500,366 | | | 237,492 | ||||
| Total cash and cash equivalents | | 200,268 | | 318,478 | | 244,662 | | 534,403 | | | 269,465 | ||||
| Investment securities available-for-sale | | 482,085 | | 510,966 | | 504,748 | | 497,789 | | | 461,207 | ||||
| Investment securities held-to-maturity | | 428,557 | | 438,445 | | 449,368 | | 460,249 | | | 468,860 | ||||
| Equity investment securities, at fair value | | | 5,109 | | | 5,213 | | 2,122 | | 2,115 | | | 2,123 | ||
| Total securities | | 915,751 | | 954,624 | | 956,238 | | 960,153 | | | 932,190 | ||||
| Other investments | | 30,636 | | 26,586 | | 26,584 | | 32,669 | | | 38,966 | ||||
| Loans, net of deferred fees and unamortized costs | | 6,034,076 | | 5,897,119 | | 5,838,892 | | 5,719,218 | | | 5,624,797 | ||||
| Allowance for credit losses | | (63,273) | | (62,493) | | (60,008) | | (58,538) | | | (57,965) | ||||
| Net loans | | 5,970,803 | | 5,834,626 | | 5,778,884 | | 5,660,680 | | | 5,566,832 | ||||
| Receivables from global payments business, net | | | — | | 96,048 | | 90,626 | | 93,852 | | | 87,648 | |||
| Other assets | | | 183,291 | | | 172,996 | | | 168,597 | | | 171,614 | | | 172,571 |
| Total assets | | $ | 7,300,749 | | $ | 7,403,358 | | $ | 7,265,591 | | $ | 7,453,371 | | $ | 7,067,672 |
| | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity | | **** | | | | | | | | ||||||
| Deposits | | | | | | | | ||||||||
| Non-interest-bearing demand deposits | | $ | 1,334,054 | | $ | 1,780,305 | | $ | 1,883,176 | | $ | 1,927,629 | | $ | 1,837,874 |
| Interest-bearing deposits | | 4,648,919 | | 4,489,602 | | 4,286,486 | | 4,309,913 | | | 3,899,418 | ||||
| Total deposits | | 5,982,973 | | 6,269,907 | | 6,169,662 | | 6,237,542 | | | 5,737,292 | ||||
| Federal funds purchased | | | 210,000 | | | — | | | — | | | — | | | 99,000 |
| Federal Home Loan Bank of New York advances | | | 240,000 | | | 150,000 | | | 150,000 | | | 300,000 | | | 440,000 |
| Trust preferred securities | | 20,620 | | 20,620 | | 20,620 | | 20,620 | | | 20,620 | ||||
| Secured and other borrowings | | | 7,441 | | | 107,478 | | | 107,514 | | | 107,549 | | | 7,585 |
| Prepaid third-party debit cardholder balances | | — | | 21,970 | | 22,631 | | 18,685 | | | 10,178 | ||||
| Other liabilities | | | 109,888 | | | 118,192 | | | 102,760 | | | 95,434 | | | 93,976 |
| Total liabilities | | 6,570,922 | | 6,688,167 | | 6,573,187 | | 6,779,830 | | | 6,408,651 | ||||
| | | | | | | | | | | | | | | | |
| Common stock | | 112 | | 112 | | 112 | | 112 | | | 111 | ||||
| Additional paid in capital | | 400,188 | | 397,963 | | 395,520 | | 393,341 | | | 395,871 | ||||
| Retained earnings | | 382,661 | | 361,243 | | 348,977 | | 332,178 | | | 315,975 | ||||
| Accumulated other comprehensive gain (loss), net of tax effect | | (53,134) | | (44,127) | | (52,205) | | (52,090) | | | (52,936) | ||||
| Total stockholders’ equity | | 729,827 | | 715,191 | | 692,404 | | 673,541 | | | 659,021 | ||||
| Total liabilities and stockholders’ equity | | $ | 7,300,749 | | $ | 7,403,358 | | $ | 7,265,591 | | $ | 7,453,371 | | $ | 7,067,672 |
7
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) | **** | 2024 | | 2024 | | 2023 | **** | 2024 | | 2023 | |||||
| Total interest income | | $ | 119,829 | | $ | 120,454 | | $ | 105,267 | | $ | 468,379 | | $ | 375,405 |
| Total interest expense | | 53,226 | | 55,221 | | 48,273 | | 215,295 | | 152,569 | |||||
| Net interest income | | 66,603 | | 65,233 | | 56,994 | | 253,084 | | 222,836 | |||||
| Provision for credit losses | | 1,500 | | 2,691 | | 6,541 | | 6,257 | | 12,283 | |||||
| Net interest income after provision for credit losses | | 65,103 | | 62,542 | | 50,453 | | 246,827 | | 210,553 | |||||
| | | | | | | ||||||||||
| Non-interest income | | | | | | ||||||||||
| Service charges on deposit accounts | | 2,177 | | 2,135 | | 1,671 | | 8,269 | | 6,071 | |||||
| Global Payments Group revenue | | 2,100 | | 3,500 | | 4,177 | | 13,355 | | 19,005 | |||||
| Other income | | | 124 | | | 650 | | | 713 | | | 2,205 | | | 2,827 |
| Total non-interest income | | 4,401 | | 6,285 | | 6,561 | | 23,829 | | 27,903 | |||||
| | | | | | | ||||||||||
| Non-interest expense | | | | | | ||||||||||
| Compensation and benefits | | 19,615 | | 19,885 | | 18,210 | | 77,859 | | 66,961 | |||||
| Bank premises and equipment | | 2,520 | | 2,471 | | 2,317 | | 9,656 | | 9,344 | |||||
| Professional fees | | 3,687 | | 4,745 | | 5,031 | | 21,320 | | 18,064 | |||||
| Technology costs | | 1,989 | | 2,969 | | 974 | | 11,012 | | 4,940 | |||||
| Licensing fees | | | 3,217 | | | 3,411 | | | 3,638 | | | 13,084 | | | 12,818 |
| FDIC assessments | | | 2,980 | | | 2,950 | | | 2,639 | | | 11,780 | | | 9,077 |
| Regulatory settlement reserve | | | (537) | | | 10,000 | | | — | | | 9,463 | | | (5,521) |
| Other expenses | | 4,690 | | 4,826 | | 4,338 | | 19,401 | | 15,855 | |||||
| Total non-interest expense | | 38,161 | | 51,257 | | 37,147 | | 173,575 | | 131,538 | |||||
| | | | | | | ||||||||||
| Net income before income tax expense | | 31,343 | | 17,570 | | 19,867 | | 97,081 | | 106,918 | |||||
| Income tax expense | | 9,925 | | 5,304 | | 5,299 | | 30,395 | | 29,650 | |||||
| Net income (loss) | | $ | 21,418 | | $ | 12,266 | | $ | 14,568 | | $ | 66,686 | | $ | 77,268 |
| | | | | | | | |||||||||
| Earnings per common share: | | | | | | | | ||||||||
| Average common shares outstanding: | | | | | | | | | | | | | | | |
| Basic | | | 11,196,822 | | | 11,193,063 | | | 11,062,729 | | | 11,179,074 | | | 11,060,110 |
| Diluted | | | 11,388,163 | | | 11,312,773 | | | 11,366,463 | | | 11,255,223 | | | 11,129,900 |
| Basic earnings (loss) | | $ | 1.91 | | $ | 1.10 | | $ | 1.31 | | $ | 5.97 | | $ | 6.95 |
| Diluted earnings (loss) | | $ | 1.88 | | $ | 1.08 | | $ | 1.28 | | $ | 5.93 | | $ | 6.91 |
8
Loan Production, Asset Quality & Regulatory Capital
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Dec. 31, | | Sept. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | |||||
| | | 2024 | | 2024 | | 2024 | | 2024 | **** | 2023 | | |||||
| LOAN PRODUCTION (in millions) | | $ | 309.0 | | $ | 460.6 | | $ | 290.8 | | $ | 269.6 | | $ | 342.5 | |
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY (in thousands) | | | | | | | | | | | | | | | | |
| Non-performing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 25,087 | | $ | 24,000 | | $ | 24,000 | | $ | 44,939 | | $ | 44,939 | |
| Commercial and industrial | | | 6,989 | | | 6,989 | | | 6,989 | | | 6,989 | | | 6,934 | |
| One- to four- family | | | 452 | | | — | | | — | | | — | | | — | |
| Consumer | | | 72 | | | — | | | 108 | | | 145 | | | 24 | |
| Total non-performing loans | | $ | 32,600 | | $ | 30,989 | | $ | 31,097 | | $ | 52,073 | | $ | 51,897 | |
| Non-performing loans to total loans | | 0.54 | % | 0.53 | % | 0.53 | % | 0.91 | % | 0.92 | % | |||||
| Allowance for credit losses | | $ | 63,273 | | $ | 62,493 | | $ | 60,008 | | $ | 58,538 | | $ | 57,965 | |
| Allowance for credit losses to total loans | | 1.05 | % | 1.06 | % | 1.03 | % | 1.02 | % | 1.03 | % | |||||
| Charge-offs | | $ | (106) | | $ | (122) | | $ | (16) | | $ | (3) | | $ | (946) | |
| Recoveries | | $ | 120 | | $ | 2 | | $ | — | | $ | 2 | | $ | — | |
| Net charge-offs/(recoveries) to average loans (annualized) | | | — | % | | 0.01 | % | | — | % | | — | % | | 0.07 | % |
| | | | | | | | | | | | | | | | | |
| REGULATORY CAPITAL | | | | | | | ||||||||||
| Tier 1 Leverage: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 10.8 | % | 10.6 | % | 10.3 | % | 10.3 | % | 10.6 | % | |||||
| Metropolitan Commercial Bank | | 10.6 | % | 10.3 | % | 10.1 | % | 10.1 | % | 10.3 | % | |||||
| | | | | | | | | | | | | | | | | |
| Common Equity Tier 1 Risk-Based (CET1): | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 11.9 | % | 11.9 | % | 11.7 | % | 11.6 | % | 11.5 | % | |||||
| Metropolitan Commercial Bank | | 12.0 | % | 11.9 | % | 11.8 | % | 11.7 | % | 11.5 | % | |||||
| | | | | | | | | | | | | | | | | |
| Tier 1 Risk-Based: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 12.3 | % | 12.2 | % | 12.1 | % | 11.9 | % | 11.8 | % | |||||
| Metropolitan Commercial Bank | | 12.0 | % | 11.9 | % | 11.8 | % | 11.7 | % | 11.5 | % | |||||
| | | | | | | | | | | | | | | | | |
| Total Risk-Based: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 13.3 | % | 13.2 | % | 13.0 | % | 12.9 | % | 12.8 | % | |||||
| Metropolitan Commercial Bank | | 13.0 | % | 12.9 | % | 12.8 | % | 12.6 | % | 12.5 | % |
9
Performance Measures
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three months ended | | Year ended | **** | |||||||||||
| | | Dec. 31, | | Sept. 30, | | Dec. 31, | | Dec. 31, | | Dec. 31, | | |||||
| (dollars in thousands, except per share data) | **** | 2024 | | 2024 | | 2023 | **** | 2024 | | 2023 | **** | |||||
| Net income per consolidated statements of income | | $ | 21,418 | | $ | 12,266 | | $ | 14,568 | | $ | 66,686 | | $ | 77,268 | |
| Less: Earnings allocated to participating securities | | | — | | | — | | | (78) | | | — | | | (365) | |
| Net income (loss) available to common shareholders | | $ | 21,418 | | $ | 12,266 | | $ | 14,490 | | $ | 66,686 | | $ | 76,903 | |
| | | | | | | | | | | | | | | | | |
| Per common share: | | | | | | | ||||||||||
| Basic earnings (loss) | | $ | 1.91 | | $ | 1.10 | | $ | 1.31 | | $ | 5.97 | | $ | 6.95 | |
| Diluted earnings (loss) | | $ | 1.88 | | $ | 1.08 | | $ | 1.28 | | $ | 5.93 | | $ | 6.91 | |
| Common shares outstanding: | | | | | | | ||||||||||
| Period end | | 11,197,625 | | 11,194,411 | | 11,062,729 | | 11,197,625 | | 11,062,729 | | |||||
| Average fully diluted | | 11,388,163 | | 11,312,773 | | 11,366,463 | | 11,255,223 | | 11,129,900 | | |||||
| Return on:^(1)^ | | | | | | | ||||||||||
| Average total assets | | 1.16 | % | 0.67 | % | 0.84 | % | 0.91 | % | 1.19 | % | |||||
| Average equity | | | 11.8 | % | | 6.9 | % | | 9.0 | % | | 9.6 | % | | 12.4 | % |
| Average tangible common equity^(2), (3)^ | | | 12.0 | % | | 7.0 | % | | 9.1 | % | | 9.7 | % | | 12.6 | % |
| Yield on average earning assets^(1)^ | | 6.58 | % | 6.68 | % | 6.21 | % | 6.53 | % | 5.88 | % | |||||
| Total cost of deposits^(1)^ | | | 3.15 | % | | 3.32 | % | | 2.98 | % | | 3.22 | % | | 2.43 | % |
| Net interest spread^(1)^ | | 2.28 | % | 1.93 | % | 1.81 | % | 1.94 | % | 1.85 | % | |||||
| Net interest margin^(1)^ | | 3.66 | % | 3.62 | % | 3.36 | % | 3.53 | % | 3.49 | % | |||||
| Net charge-offs as % of average loans^(1)^ | | — | % | 0.01 | % | 0.07 | % | — | % | 0.02 | % | |||||
| Efficiency ratio^(4)^ | | 53.7 | % | 71.7 | % | 58.4 | % | 62.7 | % | 52.5 | % |
(1)For periods less than a year, ratios are annualized.
(2)Net income divided by average tangible common equity.
(3)Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.
(4)Total non-interest expense divided by total revenues. 10
Interest Margin Analysis
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three months ended | | ||||||||||||||||||||||||
| | | Dec. 31, 2024 | | | Sept. 30, 2024 | | | Dec. 31, 2023 | | ||||||||||||||||||
| | | 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)^ | | $ | 6,027,313 | | $ | 111,486 | 7.36 | % | | $ | 5,889,298 | | $ | 111,286 | 7.52 | % | | $ | 5,538,095 | | $ | 97,897 | 7.01 | % | |||
| Available-for-sale securities | | 567,548 | | 3,256 | 2.28 | | | 581,529 | | 3,350 | 2.29 | | | 532,970 | | 2,430 | 1.82 | | |||||||||
| Held-to-maturity securities | | 434,234 | | 2,012 | 1.84 | | | 444,842 | | 2,061 | 1.84 | | | 474,475 | | 2,217 | 1.87 | | |||||||||
| Equity investments | | | 5,477 | | | 39 | | 2.81 | | | | 3,164 | | | 23 | 2.89 | | | | 2,401 | | | 14 | | 2.30 | | |
| Overnight deposits | | 180,175 | | 2,469 | 5.45 | | | 231,946 | | 3,223 | 5.53 | | | 139,009 | | 1,966 | 5.53 | | |||||||||
| Other interest-earning assets | | 30,255 | | 567 | 7.46 | | | 26,584 | | 511 | 7.65 | | | 35,718 | | 743 | 8.32 | | |||||||||
| Total interest-earning assets | | 7,245,002 | | 119,829 | 6.58 | | | 7,177,363 | | 120,454 | 6.68 | | | 6,722,668 | | 105,267 | 6.21 | | |||||||||
| Non-interest-earning assets | | 181,786 | | | | 180,748 | | | | 192,237 | | | |||||||||||||||
| Allowance for credit losses | | (63,536) | | | | (60,608) | | | | (53,570) | | | |||||||||||||||
| Total assets | | $ | 7,363,252 | | | | $ | 7,297,503 | | | | $ | 6,861,335 | | | ||||||||||||
| Liabilities and Stockholders' Equity: | | **** | **** | | | | **** | | | | | | | | | | | ||||||||||
| Interest-bearing liabilities: | | | | | | | | | | | | | | | |||||||||||||
| Money market and savings accounts | | $ | 4,459,792 | | | 47,581 | 4.24 | | | $ | 4,314,237 | | | 51,266 | 4.73 | | | $ | 3,891,476 | | | 42,395 | 4.32 | | |||
| Certificates of deposit | | 116,062 | | 1,254 | 4.30 | | | 41,028 | | 471 | 4.57 | | | 34,179 | | 272 | 3.16 | | |||||||||
| Total interest-bearing deposits | | 4,575,854 | | 48,835 | 4.25 | | | 4,355,265 | | 51,737 | 4.73 | | | 3,925,655 | | 42,667 | 4.31 | | |||||||||
| Borrowed funds | | 350,892 | | 4,391 | 4.98 | | | 270,633 | | 3,484 | 5.12 | | | 427,250 | | 5,606 | 5.25 | | |||||||||
| Total interest-bearing liabilities | | 4,926,746 | | 53,226 | 4.30 | | | 4,625,898 | | 55,221 | 4.75 | | | 4,352,905 | | 48,273 | 4.40 | | |||||||||
| Non-interest-bearing liabilities: | | | | | | | | | | ||||||||||||||||||
| Non-interest-bearing deposits | | 1,586,005 | | | | 1,851,497 | | | | 1,748,178 | | | |||||||||||||||
| Other non-interest-bearing liabilities | | 128,995 | | | | 113,666 | | | | 116,995 | | | |||||||||||||||
| Total liabilities | | 6,641,746 | | | | 6,591,061 | | | | 6,218,078 | | | |||||||||||||||
| Stockholders' equity | | 721,506 | | | | 706,442 | | | | | | | | 643,257 | | | | | | | |||||||
| Total liabilities and equity | | $ | 7,363,252 | | | | $ | 7,297,503 | | | | $ | 6,861,335 | | | ||||||||||||
| Net interest income | | | $ | 66,603 | | | | | $ | 65,233 | | | | | $ | 56,994 | | | |||||||||
| Net interest rate spread ^(3)^ | | | | 2.28 | % | | | | | | | 1.93 | % | | | | | | | 1.81 | % | ||||||
| Net interest margin ^(4)^ | | | 3.66 | % | | | 3.62 | % | | | 3.36 | % | |||||||||||||||
| Total cost of deposits ^(5)^ | | | | | | | | 3.15 | % | | | | | | | | 3.32 | % | | | | | | | | 2.98 | % |
| Total cost of funds ^(6)^ | | | | | | | | 3.25 | % | | | | | | | | 3.39 | % | | | | 3.14 | % |
| (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. |
| --- | --- |
11
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Year ended | | |||||||||||||||
| | | Dec. 31, 2024 | | | Dec. 31, 2023 | **** | ||||||||||||
| | | Average | | | | | Yield / | | | Average | | | | | Yield / | **** | ||
| (dollars in thousands) | | Balance | | Interest | | Rate | | | Balance | | Interest | | Rate | **** | ||||
| Assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | ||||||||||||
| Loans ^(1)^ | | $ | 5,842,570 | | $ | 429,748 | 7.36 | % | | $ | 5,147,653 | | $ | 345,039 | 6.70 | % | ||
| Available-for-sale securities | | 576,040 | | 12,917 | 2.24 | | | 527,873 | | | 8,865 | 1.68 | | |||||
| Held-to-maturity securities | | 450,048 | | 8,369 | 1.86 | | | 499,379 | | | 9,608 | 1.92 | | |||||
| Equity investments | | | 3,377 | | | 92 | | 2.73 | | | | 2,381 | | | 52 | 2.17 | | |
| Overnight deposits | | 269,472 | | 15,013 | 5.57 | | | 176,813 | | | 9,319 | 5.20 | | |||||
| Other interest-earning assets | | 29,386 | | 2,240 | 7.62 | | | 33,061 | | | 2,522 | 7.63 | | |||||
| Total interest-earning assets | | 7,170,893 | | 468,379 | 6.53 | | | 6,387,160 | | 375,405 | 5.88 | | ||||||
| Non-interest-earning assets | | 182,936 | | | | 169,377 | | | ||||||||||
| Allowance for credit losses | | (60,384) | | | | (49,923) | | | ||||||||||
| Total assets | | $ | 7,293,445 | | | | $ | 6,506,614 | | | ||||||||
| Liabilities and Stockholders' Equity: | | **** | **** | | | | **** | | | |||||||||
| Interest-bearing liabilities: | | | | | | | ||||||||||||
| Money market and savings accounts | | $ | 4,298,166 | | $ | 195,695 | 4.55 | | | $ | 3,299,427 | | $ | 127,494 | 3.86 | | ||
| Certificates of deposit | | 57,227 | | 2,318 | 4.05 | | | 42,926 | | | 1,183 | 2.76 | | |||||
| Total interest-bearing deposits | | 4,355,393 | | 198,013 | 4.55 | | | 3,342,353 | | 128,677 | 3.85 | | ||||||
| Borrowed funds | | 336,364 | | 17,282 | 5.14 | | | 445,061 | | 23,892 | 5.37 | | ||||||
| Total interest-bearing liabilities | | 4,691,757 | | 215,295 | 4.59 | | | 3,787,414 | | 152,569 | 4.03 | | ||||||
| Non-interest-bearing liabilities: | | | | | | | ||||||||||||
| Non-interest-bearing deposits | | 1,788,170 | | | | 1,960,469 | | | ||||||||||
| Other non-interest-bearing liabilities | | 119,364 | | | | 137,725 | | | ||||||||||
| Total liabilities | | 6,599,291 | | | | | 5,885,608 | | | |||||||||
| Stockholders' equity | | 694,154 | | | | 621,006 | | | ||||||||||
| Total liabilities and equity | | $ | 7,293,445 | | | | $ | 6,506,614 | | | ||||||||
| Net interest income | | | $ | 253,084 | | | | $ | 222,836 | | ||||||||
| Net interest rate spread ^(2)^ | | | 1.94 | % | | | 1.85 | % | ||||||||||
| Net interest margin ^(3)^ | | | 3.53 | % | | | 3.49 | % | ||||||||||
| Total cost of deposits ^(4)^ | | | | | | | | 3.22 | % | | | | | | | | 2.43 | % |
| Total cost of funds ^(5)^ | | | 3.32 | % | | | 2.65 | % |
| (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.
12
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) | | 2024 | | | 2024 | | | 2024 | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | |||||||
| Average assets | | $ | 7,363,252 | | | $ | 7,297,503 | | | $ | 7,322,480 | | | $ | 7,185,768 | | | $ | 6,861,335 | | | $ | 7,293,445 | | | $ | 6,506,614 | |
| Less: average intangible assets | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | |
| Average tangible assets (non-GAAP) | | $ | 7,353,519 | | | $ | 7,287,770 | | | $ | 7,312,747 | | | $ | 7,176,035 | | | $ | 6,851,602 | | | $ | 7,283,712 | | | $ | 6,496,881 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average common equity | | $ | 721,506 | | | $ | 706,442 | | | $ | 680,064 | | | $ | 667,009 | | | $ | 643,257 | | | $ | 694,154 | | | $ | 621,006 | |
| Less: average intangible assets | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | |||||||
| Average tangible common equity (non-GAAP) | | $ | 711,773 | | | $ | 696,709 | | | $ | 670,331 | | | $ | 657,276 | | | $ | 633,524 | | | $ | 684,421 | | | $ | 611,273 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 7,300,749 | | | $ | 7,403,358 | | | $ | 7,265,591 | | | $ | 7,453,371 | | | $ | 7,067,672 | | | $ | 7,300,749 | | | $ | 7,067,672 | |
| Less: intangible assets | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | |
| Tangible assets (non-GAAP) | | $ | 7,291,016 | | | $ | 7,393,625 | | | $ | 7,255,858 | | | $ | 7,443,638 | | | $ | 7,057,939 | | | $ | 7,291,016 | | | $ | 7,057,939 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common equity | | $ | 729,827 | | | $ | 715,191 | | | $ | 692,404 | | | $ | 673,541 | | | $ | 659,021 | | | $ | 729,827 | | | $ | 659,021 | |
| Less: intangible assets | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | |||||||
| Tangible common equity (book value) (non-GAAP) | | $ | 720,094 | | | $ | 705,458 | | | $ | 682,671 | | | $ | 663,808 | | | $ | 649,288 | | | $ | 720,094 | | | $ | 649,288 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | | 11,197,625 | | | | 11,194,411 | | | | 11,192,936 | | | | 11,191,958 | | | | 11,062,729 | | | | 11,197,625 | | | | 11,062,729 | |
| Book value per share (GAAP) | | $ | 65.18 | | | $ | 63.89 | | | $ | 61.86 | | | $ | 60.18 | | | $ | 59.57 | | | $ | 65.18 | | | $ | 59.57 | |
| Tangible book value per share (non-GAAP) ^(1)^ | | $ | 64.31 | | | $ | 63.02 | | | $ | 60.99 | | | $ | 59.31 | | | $ | 58.69 | | | $ | 64.31 | | | $ | 58.69 | |
| (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. 13
Exhibit 99.2
| 4Q 2024<br>Investor Presentation | ||||
|---|---|---|---|---|
| Disclosure<br>1<br>This presentation contains “forward-looking<br>statements” within the meaning of the Private Securities<br>Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the<br>Company’s future financial condition and capital ratios,<br>results of operations and the Company’s outlook and<br>business. Forward-looking statements are not historical<br>facts. Such statements may be identified by the use of<br>such words as “may,” “believe,” “expect,” “anticipate,”<br>“plan,” “continue” or similar terminology. These<br>statements relate to future events or our future financial<br>performance and involve risks and uncertainties that are<br>difficult to predict and are generally beyond our control<br>and may cause our actual results, levels of activity,<br>performance or achievements to differ materially from<br>those expressed or implied by these forward-looking<br>statements. Although we believe that the expectations<br>reflected in the forward-looking statements are<br>reasonable, we caution you not to place undue reliance<br>on these forward-looking statements. Factors which<br>may cause our forward-looking statements to be<br>materially inaccurate include, but are not limited to the<br>following: the interest rate policies of the Federal<br>Reserve and other regulatory bodies; an unexpected<br>deterioration in the performance of our loan or<br>securities portfolios; changes in liquidity, including the<br>size and composition of our deposit portfolio and the<br>percentage of uninsured deposits in the portfolio;<br>unexpected increases in our expenses; different than<br>anticipated growth and our ability to manage our<br>growth; global pandemics, or localized epidemics, could<br>adversely affect the Company’s financial condition and<br>results of operations; potential recessionary conditions,<br>including the related effects on our borrowers and on<br>our financial condition and results of operations; an<br>unanticipated loss of key personnel or existing clients,<br>or an inability to attract key employees; increases in<br>competitive pressures among financial institutions or<br>from non-financial institutions which may result in<br>unanticipated changes in our loan or deposit rates;<br>unanticipated increases in FDIC insurance premiums or<br>future assessments; legislative, tax or regulatory<br>changes or actions, which may adversely affect the<br>Company’s business; impacts related to or resulting<br>from regional and community bank failures and stresses<br>to regional banks; changes in deposit flows, funding<br>sources or loan demand, which may adversely affect the<br>Company’s business; changes in accounting principles,<br>policies or guidelines may cause the Company’s<br>financial condition or results of operation to be reported<br>or perceived differently; general economic conditions,<br>including unemployment rates, either nationally or<br>locally in some or all of the areas in which the Company<br>does business, or conditions in the securities markets or<br>the banking industry being less favorable than currently<br>anticipated; inflation, which may lead to higher<br>operating costs; declines in real estate values in the<br>Company’s market area, which may adversely affect our<br>loan production; an unexpected adverse financial,<br>regulatory, legal or bankruptcy event experienced by<br>our non-bank financial service clients; system failures or<br>cybersecurity breaches of our information technology<br>infrastructure and/or confidential information or those<br>of the Company’s third-party service providers or those<br>of our non-bank financial service clients for which we<br>provide global payments infrastructure; emerging issues<br>related to the development and use of artificial<br>intelligence that could give rise to legal or regulatory<br>action, damage our reputation or otherwise materially<br>harm our business or clients; failure to maintain current<br>technologies or technological changes that may be<br>more difficult or expensive to implement than<br>anticipated, and failure to successfully implement future<br>information technology enhancements; the costs,<br>including the possible incurrence of fines, penalties, or<br>other negative effects (including reputational harm) of<br>any adverse judicial, administrative, or arbitral rulings or<br>proceedings, regulatory enforcement actions, or other<br>legal actions to which we or any of our subsidiaries are a<br>party, and which may adversely affect our results; the<br>current or anticipated impact of military conflict,<br>terrorism or other geopolitical events; the successful<br>implementation or consummation of new business<br>initiatives, which may be more difficult or expensive<br>than anticipated; the timely and efficient development<br>of new products and services offered by the Company<br>or its strategic partners, as well as risks (including<br>reputational and litigation) attendant thereto, and the<br>perceived overall value and acceptance of these<br>products and services by clients; changes in consumer<br>spending, borrowing or savings habits; the risks<br>associated with adverse changes to credit quality; an<br>unexpected failure to successfully manage our credit<br>risk and the sufficiency of our allowance for credit<br>losses; credit and other risks from borrower and<br>depositor concentrations (e.g., by geographic area and<br>by industry); difficulties associated with achieving or<br>predicting expected future financial results; and the<br>potential impact on the Company’s operations and<br>clients resulting from natural or man-made disasters,<br>wars, acts of terrorism, cyberattacks and pandemics, as<br>well as those discussed under the heading “Risk Factors”<br>in our Annual Report on Form 10-K and Quarterly<br>Reports on Form 10-Q which have been filed with the<br>Securities and Exchange Commission under the<br>Securities Exchange Act of 1934, as amended.<br>Forward-looking statements speak only as of the date of<br>this presentation. We do not undertake (and expressly<br>disclaim) any obligation to update or revise any<br>forward-looking statement, except as may be required<br>by law. | ||||
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| Proven Growth-Oriented Business Model with<br>Strong Risk Management, Poised to Deliver<br>Significant Shareholder Value<br>3. Safe & Sound<br>• Strong liquidity and<br>disciplined interest rate<br>risk management<br>• Strong capital position<br>• Conservative credit<br>culture<br>• Diversified deposit base<br>• Proven, deposit gathering<br>capability<br>1. Client Centric<br>• Priority on client<br>execution<br>• Relationship-oriented<br>commercial lending<br>• High touch service<br>• Diversified banking<br>product suite<br>4. Innovative<br>• History of innovation<br>• Comprehensive, flexible<br>tech stack<br>• Modern Banking in<br>Motion Digital<br>Transformation<br>2. High Performing<br>• Exceptional margin<br>management<br>• Strong book value growth<br>• Sustainable positive<br>operating leverage<br>• Strong, consistent organic<br>capital generation<br>2 | ||||
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| Relationship Driven Commercial Bank<br>with Strong Client Execution<br>• Our Business Bankers have deep<br>knowledge and expertise across<br>multiple industries (e.g. law firms,<br>resident healthcare, real estate property<br>management, U.S. Trustee<br>and Municipalities).<br>• Full suite of retail financial service<br>products targeting small and<br>middle-market<br>commercial<br>businesses.<br>• Commercial Lending group offers<br>an array of commercial and industrial<br>lending products providing our<br>clients with custom lending solutions.<br>• Commercial Real Estate ("CRE")<br>Lending group has proven track<br>record of successfully navigating<br>today's complex real estate market.<br>White-glove<br>concierge<br>service<br>and a full suite of<br>digital banking<br>services allowing<br>clients to easily manage<br>their everyday<br>banking needs.<br>Modern<br>Banking<br>in Motion<br>Digital<br>Transformation<br>supports future<br>business expansion,<br>drives efficiencies and<br>enables better client<br>experience.<br>Only TRUE mid-sized commercial bank headquartered<br>in NYC.<br>Our mission is to:<br>• Help clients build and sustain generational wealth.<br>• Offer a full range of banking and innovative<br>financial servicesto businesses and individuals<br>embracing an ever-evolving digital banking era.<br>• Deliver enhanced client experiences through an<br>innovative technology platform.<br>• Provide modern and robust internal capabilities for<br>our employees to support future business expansion<br>and back-office efficiencies.<br>Our Mission<br>3<br>1<br>Client Centric | ||||
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| 9.5%<br>8.0%<br>0.3%<br>Metropolitan<br>Commercial Bank<br>KRX Index² NYC Middle-Market<br>Banks³<br>Source: Bloomberg, FactSet, S&P Global Market Intelligence<br>1 CAGR from December 31, 2017 through September 30, 2024<br>2 KRX Index represents the KBW Regional Banking Index<br>3 Includes BKU, CNOB, DCOM, FFIC, FLG, OCFC, and VLY<br>4 Performance since November 7, 2017 (MCB offering price of $35.00 per share) through January 14, 2025<br>5 Cumulative shareholder return (change in stock price plus reinvested dividends)<br>Share price performance<br>4JODF *10ĩ<br>Performance since IPO<br>Tangible book value per share CAGR¹<br>2017–2024Q3<br>Earnings per share CAGR¹<br>2017–2024Q3<br>13.4%<br>5.6%<br>4.2%<br>Metropolitan<br>Commercial Bank<br>KRX Index² NYC Middle-Market<br>Banks³<br>69.8%<br>14.8%<br>(19.0%)<br>NYC Middle-Market<br>Banks³<br>Total Return Performance Since IPO relative to KRX² and NYC Banks³,<br>Ī<br>NYC Middle-Market Banks³<br>KBW Regional Banking<br>Index (“KRX”)<br>Metropolitan Commercial<br>Bank<br>4<br>100<br>143<br>170<br>Metropolitan<br>Commercial Bank<br>KRX Index²<br>2<br>High Performing<br>50<br>100<br>150<br>200<br>250<br>300<br>350<br>11/7/2017 11/17/2018 11/27/2019 12/6/2020 12/16/2021 12/26/2022 1/5/2024 1/14/2025 | ||||
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| Track Record of Strong Operating<br>Performance<br>1 Annualized.<br>2 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 26.<br>3 CAGR from December 31, 2017 through December 31, 2024.<br>4 MCB closing stock price on January 14, 2025, of $59.43.<br>Strong Book Value Growth Since IPO<br>Tangible Book Value per Share2<br>Strong Operating Results<br>4Q 2024<br>$27.04 $30.34<br>$34.15<br>$39.25<br>$50.11 $51.70<br>$58.69<br>$64.31<br>2017 2018 2019 2020 2021 2022 2023 2024<br>5<br>2<br>High Performing<br>53.7%<br>Efficiency Ratio<br>0.0%<br>Avg. Last 5 Year Net Charge-offs % /<br>Average Loans<br>3.66%<br>Net Interest Margin1<br>1.16%<br>Return on Average Assets1<br>1.8%<br>Pre-Provision Net Revenue /<br>Average Assets1<br>12.0%<br>Return on Average Tangible<br>Common Equity1, 2<br>92.4%<br>Price /<br>Tangible Book Value per Share4<br>10.0<br>Price /<br>Last Twelve Months EPS4<br>Valuation Metrics<br>As of January 14, 2025 | ||||
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| 6<br>1 Represents effective average daily Fed Funds rate.<br>Well Managed Net Interest Margin<br>Net Interest Margin Analysis<br>Estimated Sensitivity of Annual<br>Net Interest Income<br>December 31, 2024<br>Fixed vs. Floating Rate Loans<br>December 31, 2024<br>1.00%<br>1.83% 2.16%<br>0.36% 0.08%<br>1.68%<br>5.03% 5.15%<br>3.52% 3.70% 3.46% 3.26%<br>2.77%<br>3.49% 3.49% 3.53%<br>2017 2018 2019 2020 2021 2022 2023 2024<br>Average Fed Funds Rate¹ MCB Net Interest Margin ("NIM")<br>Fixed<br>77%<br>Floating<br>9.01% 23%<br>4.45%<br>-4.19%<br>-8.67%<br>-200 bps -100 bps +100 bps +200 bps Approximately 85% of floating rate<br>loans due after one year have floors –<br>Weighted average floor of 6.3%<br>High Performing<br>2 | ||||
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| 32.0% 30.9% 30.5%<br>28.4%<br>22.3%<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>$5.7<br>$6.2 $6.2 $6.3<br>$6.0<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>11.5% 11.6% 11.7% 11.9% 12.0%<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>Highly Liquid and Resilient Balance Sheet<br>75%<br>Insured deposits<br>Deposits<br>($ bn)<br>CET1 Ratio1<br>Non-interest bearing Deposit %<br>Deposit Profile<br>at December 31, 2024<br>192%<br>Uninsured Deposit<br>Coverage Ratio2<br>BBB+<br>Kroll Deposit Rating<br>7<br>3<br>Safe & Sound<br>$5.6 $5.7 $5.8 $5.9 $6.0<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>Loans<br>($ bn)<br>1 Common Equity Tier 1 Capital Ratio<br>2 Cash and available secured borrowing capacity divided by uninsured deposits. | ||||
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| Modern Banking in Motion<br>Digital Transformation<br>Innovative<br>8<br>4<br>Investments in our Core Banking Platforms will provide an enhanced client experience<br>and efficient and scalable operating systems for our employees<br>Extensive<br>digital<br>proficiencies<br>NextGen<br>analytics<br>capabilities<br>API-based<br>extensibility<br>Optimized<br>back-office<br>processes<br>Efficient loan<br>servicing<br>Modern Banking in Motion Digital<br>Transformation<br>• To be completed during 2025<br>Service Areas<br>• Payments (Wires, ACH & FedNow)<br>• Digital Banking (Consumers & Commercial)<br>• Fraud Risk Management<br>• Core Processing<br>• Contact Center / Client servicing<br>• Statement Processing and Rendering<br>• Teller System<br>• Commercial Loan Origination and Servicing<br>• Enterprise Datawarehouse | ||||
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| Loans and Deposits<br>9 | ||||
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| 10<br>1 Gross of deferred fees and unamortized costs.<br>2 Certain prior period amounts adjusted to conform to current presentation.<br>3 Excludes owner-occupied.<br>4 Mobile Home Parks, Residential Condos/Co-ops, Temporary Shelters, Religious Orgs., Parking Lots and Garages, Restaurants and Entertainment Facilities<br>* Includes commercial real estate, multifamily and construction loans.<br>Loan Portfolio Growth and<br>Diversification<br>$6.1 billion Gross Loan Portfolio1, 2<br>December 31, 2024 | $ millions<br>Diversified Loan Portfolio<br>December 31, 2024<br>31%<br>7%<br>6%<br>5% 6%<br>5%<br>4%<br>3%<br>3%<br>3%<br>7%<br>17%<br>31% CRE: Skilled Nursing<br>Facility ("SNF")<br>7% CRE: Office<br>6% CRE: Multi-family<br>6% CRE: Retail<br>5% CRE: Hospitality<br>5% CRE: Mixed Use<br>4% CRE: Land<br>3% CRE: Construction<br>3% CRE: Warehouse<br>3% CRE: Schools<br> $3& 0UIFSĩ<br>17% C&I<br>2% Consumer & 1-4 Family<br>$2,815 $2,840 $2,821 $2,857 $2,911 $2,939<br>$1,509 $1,684 $1,749 $1,786 $1,827 $1,962<br>$977<br>$1,051 $1,057 $1,105 $1,070<br>$1,046 $69<br>$67 $109<br>$108 $106<br>$104<br>$5,370<br>$5,642 $5,736 $5,856 $5,914<br>$6,051<br>3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>Consumer & 1-4<br>Family<br>C&I<br>CRE: Owner Occupied<br>CRE: Non Owner<br>Occupied*<br>Average 4Q Yield: 7.36%<br>CRE/RBC ratio3<br>: 346% | |||
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| 19%<br>18%<br>11%<br>8%<br>8%<br>7%<br>5%<br>3%<br>21%<br>19% Manhattan<br>18% Florida<br>11% Brooklyn<br>8% Bronx<br>8% Queens<br>7% New Jersey<br>5% Long Island<br>3% Other NY<br>21% Other States<br>39%<br>8%<br>8%<br>7%<br>7%<br>6%<br>5%<br>4%<br>16%<br>39% Skilled Nursing Facilities<br>8% Multifamily<br>8% Office<br>7% Hospitality<br>7% Retail<br>6% Mixed Use<br>5% Land<br>4% Warehouse<br>16% Other CRE<br>Relationship-Based<br>Commercial Real Estate Lending<br>11<br>Target Market<br>• New York metropolitan area real estate entrepreneurs<br>with a net worth in excess of $50 million<br>• Primarily concentrated in the New York MSA<br>• Well-diversified across multiple property types<br>Key Metrics<br>December 31, 2024<br>• Weighted average LTV of 61%<br>• Owner occupied – 41%<br>Composition by Type<br>December 31, 2024<br>Composition by Region<br>December 31, 2024<br>Majority of loans are originated through direct relationships or referrals from existing clients.<br>Total CRE loans: $4,901mm | ||||
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| 12<br>Conservatively Underwritten<br>Multi-family Portfolio<br>Overview<br>December 31, 2024 | $ millions<br>Stabilized1 Maturity Schedule<br>December 31, 2024 | $ millions<br>Origination Vintage<br>December 31, 2024<br>• Total Multi-family loans: $377mm, with $1.4mm of payoffs<br>during Q4'24<br>• Weighted average LTV of 50%<br>• Recourse on 48% of Total; recourse on 100% of Transitional<br>• Rent regulated 49% of Total<br>• Rent regulated have weighted average LTV of 44%<br>• Stabilized weighted average debt service coverage ratio of<br>2.17x<br>Transitional1 Maturity Schedule<br>December 31, 2024 | $ millions<br>1 Stabilized facilities provide cash flows adequate to support debt service and collateral value. Transitional are value-add opportunities that<br>may have historic underlying issues or challenges that can be addressed and improved upon.<br>2 Based on Outstanding Balance.<br>4%<br>23%<br>73%<br>% of $377mm Outstanding Balance<br>2017 - 2019<br>2020 - 2021<br>2022 - 2024<br>2025 2026 Thereafter Total<br>Outstanding Balance $136 $20 $133 $289<br>Commitment Amount $136 $20 $138 $294<br>Avg. Loan Size $4 $3 $4 $4<br>LTV2 57% 62% 36% 48%<br>Rent Regulated2 61% 71% 53% 58%<br>With Recourse2 33% 78% 26% 32%<br>Nonperforming 0% 0% 0% 0%<br>WAC 5.8% 5.1% 4.6% 5.2%<br>2025 2026 Thereafter Total<br>Outstanding Balance $65 $22 $0 $87<br>Commitment Amount $65 $22 $0 $87<br>Avg. Commitment Size $6 $4 $0 $5<br>LTV2 53% 66% 0% 56%<br>Rent Regulated2 7% 51% 0% 19%<br>With Recourse2 100% 100% 0% 100%<br>Nonperforming 0% 0% 0% 0%<br>WAC 4.8% 6.1% 0.0% 5.1% | |
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| Conservatively Underwritten, Geographically<br>Diversified CRE Office Portfolio<br>13<br>Office by Region<br>December 31, 2024<br>44%<br>11% 5%<br>28%<br>9%<br>44% Manhattan<br>11% Brooklyn<br>5% Queens<br>2% Bronx<br>28% NY Metro Area<br>(outside NYC)<br>9% Non NY Metro Area<br>Overview<br>December 31, 2024<br>• Total Office loans: $411mm, with $3.4mm of payoffs during<br>Q4'24<br>• Weighted average LTV of 52%<br>• Weighted average occupancy rate of 76%*<br>• Weighted average debt service coverage ratio of 1.40x*<br>• Manhattan loans originated since March 2022 is 100%<br>• Owner-occupied is 11.2%<br>• Varying levels of recourse on approximately 56% of loans<br>* Excluding owner-occupied office properties.<br>1 Based on Outstanding Balance.<br>2 Single loan with "as is" LTV of 62%.<br>Occupancy by Region<br>December 31, 2024<br>Maturity Schedule<br>December 31, 2024 | $ millions<br>53%<br>82%<br>61%<br>42%<br>82%<br>82%<br>Non NY Metro Area<br>NY Metro Area<br>(outside NYC)<br>Bronx<br>Queens²<br>Brooklyn<br>Manhattan<br>2025 2026 Thereafter Total<br>Outstanding Balance $66 $55 $291 $411<br>Commitment Amount $66 $59 $306 $431<br>Avg. Commitment Size $6 $7 $11 $9<br>LTV1 46% 46% 55% 52%<br>Nonperforming 0% 0% 0% 0%<br>WAC 6.5% 6.1% 6.1% 6.1% | |||
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| $241 $260 $265 $266 $269 $273<br>$181 $206 $236 $258 $248 $238<br>$138<br>$137 $125 $121 $152 $159 $118<br>$128 $126 $127 $119 $117 $72<br>$77 $75 $71 $70 $69<br>$61<br>$56 $56 $58 $63 $64<br>$47<br>$45 $42 $41 $30 $29 $119<br>$142 $132 $163 $119 $97 $977<br>$1,051 $1,057<br>$1,105 $1,070 $1,046<br>3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>Other<br>Manufacturing<br>Wholesale<br>Services<br>Other Healthcare<br>Individuals<br>Skilled Nursing<br>Facilities<br>Finance & Insurance<br>Commercial & Industrial Growth Driven by<br>Expertise in Specific Lending Verticals<br>14<br>C&I Composition<br>December 31, 2024<br>Target Market<br>• Middle market businesses with revenues up to $400 million<br>• Well-diversified across industries<br>Key Metrics<br>• Strong historical credit performance<br>- Pledged collateral and/or personal guarantees from high-net-worth<br>individuals support most loans<br>- Target borrowers have strong historical cash flows, and good asset<br>coverage<br>26%<br>23%<br>15%<br>11%<br>7%<br>3%<br>6%<br>9%<br>26% Finance & Insurance<br>23% Skilled Nursing Facilities<br>15% Individuals<br>11% Other Healthcare<br>7% Services<br>3% Manufacturing<br>6% Wholesale Trade<br>9% Other<br>1 Certain prior period amounts adjusted to conform to current presentation.<br>C&I Portfolio1<br>December 31, 2024 | $ millions | |||
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| C&I Healthcare Composition | December 31, 2024<br>Diversified CRE and C&I Healthcare Portfolio<br>• Active in Healthcare lending since 2002.<br>• No realized losses since 2002. No deferrals during the pandemic.<br>• CRE – Skilled Nursing Facilities (“SNF”) – average LTV of 69%.<br>• Highly selective regarding the quality of Skilled Nursing Operators that we<br>finance.<br>• Borrowers are very experienced operators that typically have in excess of<br>1,000 beds under management and strong cash flows. Many further<br>supported by vertically integrated related businesses.<br>• Loans are made primarily in “certificate of need” states which limits the<br>supply of beds and supports stable occupancy rates.<br>• Stabilized SNF – 65% of CRE SNF portfolio. Stabilized facilities provide cash<br>flows adequate to support debt service and collateral value. Borrowers’<br>primary motive for acquisition of a stabilized property is for synergies with<br>existing portfolio of SNFs. Average debt service coverage ratio is 2.01x.<br>• Transitional Non-stabilized SNF – are typically value-add opportunities that<br>may have underlying issues that can be remediated. By implementing<br>operational and management changes, enhancing the quality of care,<br>improving the payor mix, and optimizing efficiency, experienced operators<br>can increase the facility's profitability and value. Operators that have a<br>strong market share in the region can negotiate higher reimbursement<br>rates by working with payers, such as Medicare and Medicaid, to negotiate<br>higher reimbursement rates for the services provided by the SNF.<br>67%<br>14%<br>10%<br>5% 67% SNF<br>14% Ambulatory Health Care<br>Services<br>10% Medical Labs<br>5% Misc. Health Practitioners<br>2% Doctor Office<br>2% Ambulance Services<br>CRE SNF - $1,900 mm<br>C&I SNF - $238 mm<br>C&I Other Healthcare - $117 mm<br>CRE SNF<br>$1,900 mm<br>C&I SNF<br>$238 mm<br>C&I Other<br>$117 mm<br>Healthcare Portfolio | December 31, 2024<br>Total Healthcare loans:<br>$2,255mm<br>15<br>Total C&I Healthcare loans:<br>$355mm<br>Overview<br>December 31, 2024 | ||
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| C&I Skilled Nursing Facility Exposure by State<br>December 31, 2024<br>Geographically Diversified Skilled Nursing<br>Facility Portfolio<br>CRE Skilled Nursing Facility Exposure by State<br>December 31, 2024<br>38%<br>23%<br>10%<br>7%<br>22%<br>38% Florida<br>23% New York<br>10% New Jersey<br>7% Indiana<br>22% Other States<br>45%<br>18%<br>14%<br>7%<br>5%<br>11%<br>45% Florida<br>18% New York<br>14% New Jersey<br>7% Tennessee<br>5% Indiana<br>11% Other<br>16<br>Total CRE SNF loans: $1,900mm Total C&I SNF loans: $238mm | ||||
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| $1,667 $1,803 $1,810 $1,880 $2,011<br>$1,181<br>$1,135 $1,055 $1,091<br>$1,108<br>$890<br>$989 $1,059<br>$1,193<br>$1,217<br>$655<br>$757 $758<br>$723<br>$781 $858<br>$940 $892<br>$770 $92 $325<br>$298 $298 $311<br>$305<br>$238<br>$316 $298 $302<br>$392<br>$5,737<br>$6,238 $6,170 $6,270<br>$5,983<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>EB-5, Title & Escrow, &<br>Charter Schools<br>Bankruptcy Trustees<br>Other**<br>Municipal<br>Property Managers<br>Deposits from Loan<br>Customers<br>Retail Deposits<br>22%<br>76%<br>22% Non-interest-bearing<br>demand deposits<br>76% Money market &<br>savings account<br>2% Time deposits<br>4Q Cost of<br>deposits: 3.15%<br>Deposit Verticals Composition Over Time<br>$ millions*<br>Deposit Composition<br>* Certain prior period amounts adjusted to conform to current presentation.<br>** GPG wind down.<br>Total Deposits<br>$ millions*<br>$5,737<br>$6,238 $6,170 $6,270<br>$5,983<br>4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024<br>Deposits Composition<br>December 31, 2024<br>17 | ||||
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| Modern Banking in Motion<br>Digital Transformation<br>18 | ||||
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| 2024 2025<br>Service Description Partners Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4<br>Payments Hub (Wires)<br>Payments Hub (ACH)<br>Payments Hub (FedNow)<br>Commercial Loans Servicing<br>Enterprise Datawarehouse<br>Digital Banking (Consumers)<br>Digital Banking (Commercial)<br>Fraud Risk Management<br>Core Processing<br>Contact Center / Core servicing<br>Statements Processing and Rendering<br>Licensing agreement being<br>negotiated Teller System<br>Project Phoenix N.A.<br>Modern Banking in Motion<br>Digital Transformation<br>19<br>Overview<br>• The Bank is modernizing its core, payments and online banking systems to<br>support continued growth. A modern stack will support future business<br>expansion, drive efficiencies and enable a better client experience.<br>• Digital transformation will provide extensive digital proficiencies, NextGen<br>analytics capabilities, API-based extensibility, optimized back-office processes<br>and efficient origination and loan servicing.<br>• In 2024, launched project Phoenix to overhaul the Bank's infrastructure in line<br>with its strategic growth. This project is expected to be completed in Q4'2025<br>and includes the redesign of the network, expansion of the datacenters, and<br>increased system capacity.<br>• Projects to be completed in 2025<br>• Total estimated project costs – $17 million (including 10% contingency)<br>• Project costs expensed to date – $6.5 million<br>Go live. N.A. – not applicable. | ||||
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| Modern Banking in Motion<br>Digital Transformation Partners<br>20<br>Partners Service Areas About<br>Finzly provides a modern, cloud-based, API-enabled operating system that serves as a parallel payment processing<br>platform to a bank's core. Finzly offers a wide range of turnkey banking solutions, including a multi-rail payment for<br>traditional payments on ACH and wires, instant payments on FedNow and RTP, foreign exchange, trade finance,<br>compliance, and commercial banking digital experiences.<br>Payments Hub (wires)<br>Payments Hub (ACH)<br>Payments Hub (FedNow)<br>AFS is the global leader in providing advanced commercial loan servicing solutions to lending<br>institutions of all sizes. Solely dedicated to the commercial lending industry, AFS is uniquely<br>positioned to support its client’s business and technology transformation.<br>Commercial Loans Origination and Servicing<br>Snowflake enables organizations to mobilize their data with Snowflake’s Data Cloud. Customers use the Data Cloud<br>to unite siloed data, discover and securely share data, power data applications, and execute diverse AI/ML and<br>analytic workloads.<br>Enterprise Datawarehouse<br>ebankIT enables banks to deliver humanized, personalized, and accessible digital experiences for their customers<br>from mobile to web banking, from wearable gadgets to the metaverse and beyond. Digital Banking (Consumers & Commercial)<br>Alloy helps banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Alloy's<br>platform connects companies to more than 150 data sources of KYC/KYB, AML, credit, and compliance data through<br>a single API to help create a future without fraud.<br>MX Technologies, Inc. is a leader in actionable intelligence, enabling financial providers and consumers to do more<br>with financial data. MX offers fast, secure solutions that helps streamline the account opening process while<br>mitigating fraud and reducing risk.<br>Fraud Risk Management & KYC<br>To drive continued growth, the Bank is modernizing its core banking system with Finxact. Finxact, a gen-3 core, was<br>built to be a full core banking solution providing MCB with the ability to develop and get to market with speed, with<br>complete flexibility and control to adopt new capabilities. Gen 3 core solutions are geared towards banks who are<br>looking to rapidly innovate utilizing new technologies to create unique customer experiences through a cloud-native<br>/ event driven architecture enabling highly automated real time access to bank data from modern APIs to all ancillary<br>systems.<br>Core Processing<br>Savana provides a front-end servicing solution for the core processing system. Savana's platform is designed to<br>orchestrate channels, products and processes to provide a unified ecosystem that streamlines operations between<br>the core, back office and banker assisted channel.<br>Contact Center / Core servicing<br>PrintMail Solutions is the industry leader in print and electronic delivery of customer communications. PrintMail<br>Solutions has the ability and experience to interface with virtually every core platform and imaging software. Statements Processing and Rendering | ||||
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| Selected Financial<br>Information<br>21 | ||||
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| Proven High Growth Business Model<br>Loans1<br> | $ millions<br>$1,404 $1,661<br>$2,791<br>$3,830<br>$6,436<br>$5,278<br>$5,737 $5,983<br>2017 2018 2019 2020 2021 2022 2023 2024<br>Deposits<br> | $ millions<br>$63<br>$83<br>$108<br>$142<br>$181<br>$256 $251<br>$277<br>2017 2018 2019 2020 2021 2022 2023 2024<br>Revenue<br> | $ millions<br>$12<br>$26<br>$30<br>$39<br>$60 $59<br>$77<br>$67<br>2017 2018 2019 2020 2021 2022³ ĩ Ī<br>Net Income<br> | $ millions<br>1 Loans, net of deferred fees and costs.<br>2 CAGR from December 31, 2017 through December 31, 2024.<br>3 Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022.<br>4<br>Includes a $5.5 million reversal of the regulatory settlement reserve.<br>5<br>Includes a $10.0 million regulatory reserve recorded in the third quarter of 2024<br>$1,421<br>$1,867<br>$2,678<br>$3,137<br>$3,732<br>$4,841<br>$5,625<br>$6,034<br>2017 2018 2019 2020 2021 2022 2023 2024<br>22 |
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| Return on Average Assets<br>Highly Profitable, Scalable Model<br>1 Non-GAAP financial measures. See reconciliation on slide 26.<br>2 Total non-interest expense divided by Total revenues.<br>3<br>Includes a $35.0 million charge for a regulatory settlement reserve.<br>4<br>Includes a $5.5 million reversal of the regulatory settlement reserve.<br>Ī *ODMVEFT B NJMMJPO SFHVMBUPSZ SFTFSWF SFDPSEFE JO UIF UIJSE RVBSUFS PG <br>Efficiency ratio2<br>10.5% 10.8% 11.3%<br>12.9%<br>15.2%<br>10.4%<br>12.6%<br>9.7%<br>2017 2018 2019 2020 2021 2022³ ĩ Ī<br>ROATCE1<br>52.1% 52.1%<br>55.4%<br>52.5%<br>48.3%<br>58.2%<br>52.5%<br>62.7%<br>2017 2018 2019 2020 2021 2022³ ĩ Ī<br>Net Interest Margin<br>3.52% 3.70%<br>3.46% 3.26%<br>2.77%<br>3.49% 3.49% 3.53%<br>2017 2018 2019 2020 2021 2022 2023 2024<br>23<br>0.81%<br>1.31%<br>1.06% 1.02% 1.06% 0.90%<br>1.19%<br>0.91%<br>2017 2018 2019 2020 2021 2022 2023 2024 | ||||
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| 0.24%<br>0.02% 0.17% 0.20%<br>0.28%<br>0.00%<br>0.92%<br>0.54%<br>2017 2018 2019 2020 2021 2022 2023 2024<br>Non-Performing Loans/Loans<br>Credit Metrics<br>NCOs/Average Loans<br>ACL/Loans Non-Performing Loans/ACL<br>0.32%<br>-0.06%<br>-0.13%<br>0.01%<br>0.13%<br>0.00% 0.02% 0.00%<br>2017 2018 2019 2020 2021 2022 2023 2024<br>1.05% 1.02% 0.98%<br>1.13%<br>0.93% 0.93%<br>1.03% 1.05%<br>2017 2018 2019 2020 2021 2022 2023* 2024<br>22.8%<br>1.5% 17.1% 18.0%<br>29.6%<br>0.0%<br>89.5%<br>51.5%<br>2017 2018 2019 2020 2021 2022 2023* 2024<br>24<br>* Includes $2.3 million increase in ACL due to impact of CECL adoption on January 1, 2023. | ||||
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| Capital Ratios*<br>Common Equity Tier 1 Capital Ratio<br>15.3%<br>13.2%<br>10.1% 10.1%<br>14.1%<br>12.1% 11.5% 11.9%<br>2017 2018 2019 2020 2021 2022¹ 2023² 2024³<br>Minimum to be "Well Capitalized"<br>* These capital ratios are for Metropolitan Bank Holding Corp.<br>1<br>Includes a $35.0 million charge for a regulatory settlement reserve.<br>2<br>Includes a $5.5 million reversal of the regulatory settlement reserve.<br>3<br>Includes a $10.0 million regulatory reserve recorded in the third quarter of 2024.<br>ĩ /PO(""1 GJOBODJBM NFBTVSF 4FF SFDPODJMJBUJPO UP (""1 NFBTVSF PO TMJEF <br>Tier 1 Leverage Ratio<br>13.7% 13.7%<br>9.4%<br>8.5% 8.5%<br>10.2% 10.6% 10.8%<br>2017 2018 2019 2020 2021 2022¹ 2023² 2024³<br>Minimum to be "Well Capitalized"<br>19.9%<br>16.9%<br>12.5% 12.7%<br>16.1%<br>13.4% 12.8% 13.3%<br>2017 2018 2019 2020 2021 2022¹ 2023² 2024³<br>Minimum to be "Well Capitalized"<br>Total Risk-Based Capital Ratio TCE / TA4<br>12.7%<br>11.5%<br>8.5%<br>7.5% 7.7%<br>9.0% 9.2% 9.9%<br>2017 2018 2019 2020 2021 2022¹ 2023² 2024³<br>25 | ||||
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| Reconciliation of GAAP to Non-GAAP<br>Measures<br>* Tangible common equity divided by common shares outstanding at period-end.<br>In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings presentation includes certain non-GAAP financial measures. Management believes these non-GAAP<br>financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly<br>applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by<br>other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings presentation to the comparable GAAP measures are provided in the accompanying tables.<br>26<br>$ thousands, except per share data Q4 2024 2023 2022 2021 2020 2019 2018 2017<br>Average assets $ 7,363,252 $ 6,506,614 $ 6,621,631 $ 5,724,230 $ 3,863,013 $ 2,846,959 $ 1,951,982 $ 1,524,202<br>Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 9,733<br>Average tangible assets $ 7,353,519 $ 6,496,881 $ 6,611,898 $ 5,714,497 $ 3,853,280 $ 2,837,226 $ 1,942,249 $ 1,514,469<br>Average equity $ 721,506 $ 621,006 $ 578,787 $ 413,212 $ 320,617 $ 282,604 $ 251,030 $ 133,462<br>Less: Average preferred equity - - - 4,585 5,502 5,502 5,502 5,502<br>Average common equity 721,506 621,006 578,787 408,627 315,115 277,102 245,528 127,960<br>Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 9,733<br>Average tangible common equity $ 711,773 $ 611,273 $ 569,054 $ 398,894 $ 305,382 $ 267,369 $ 235,795 $ 118,227<br>Total assets $ 7,300,749 $ 7,067,672 $ 6,267,337 $ 7,116,358 $ 4,330,821 $ 3,357,572 $ 2,182,644 $ 1,759,855<br>Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 9,733<br>Tangible assets $ 7,291,016 $ 7,057,939 $ 6,257,604 $ 7,106,625 $ 4,321,088 $ 3,347,839 $ 2,172,911 $ 1,750,122<br>Total Equity $ 729,827 $ 659,021 $ 575,897 $ 556,989 $ 340,787 $ 299,124 $ 264,517 $ 236,884<br>Less: preferred equity - - - - 5,502 5,502 5,502 5,502<br>Common Equity 729,827 659,021 575,897 556,989 335,285 293,622 259,015 231,382<br>Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 9,733<br>Tangible common equity (book value) $ 720,094 $ 649,288 $ 566,164 $ 547,256 $ 325,552 $ 283,889 $ 249,282 $ 221,649<br>Common shares outstanding 11,197,625 11,062,729 10,949,965 10,920,569 8,295,272 8,312,918 8,217,274 8,196,310<br>Book value per share (GAAP) $ 65.18 $ 59.57 $ 52.59 51.00 40.42 35.32 31.52 28.23<br>Tangible book value per share (non-GAAP)* $ 64.31 $ 58.69 $ 51.70 50.11 39.25 34.15 30.34 27.04<br>Total Revenue (GAAP) $ 71,004 $ 250,739 $ 255,751 $ 180,698 $ 141,924 $ 108,239 $ 83,177 $ 63,382<br>Less: Gain on sale of securities - - - 609 3,286 - (37) -<br>Revenue excluding gain on sale of<br>securities (non-GAAP) $ 71,004 $ 250,739 $ 255,751 $ 180,089 $ 138,638 $ 108,239 $ 83,214 $ 63,382<br>For Year Ending | ||||
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| Reconciliation of GAAP to Non-GAAP<br>Measures, continued<br>(1) For periods less than a year, ratios are annualized.<br>27<br>(dollars in thousands, except per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 YTD 2024<br>Net income (loss) $ 21,418 $ 12,266 $ 16,799 $ 16,203 $ 66,686<br>Regulatory remediation (370) 10,540 3,647 2,305 16,122<br>GPG wind down 192 149 129 819 1,289<br>Digital transformation 1,102 1,946 1,695 1,805 6,548<br>Impact of adjustments 924 12,635 5,471 4,929 23,959<br>Tax impact (293) (3,814) (1,623) (1,640) (7,370)<br>Impact of adjustments, net of tax 631 8,821 3,848 3,289 16,589<br>Adjusted net income (non-GAAP) $ 22,049 $ 21,087 $ 20,647 $ 19,492 $ 83,275<br>Diluted earnings (loss) per common share $ 1.88 $ 1.08 $ 1.50 $ 1.46 $ 5.93<br>Impact of adjustments, net of tax 0.06 0.78 0.34 0.26 1.47<br>Adjusted diluted earnings per common share (non-GAAP) $ 1.94 $ 1.86 $ 1.84 $ 1.72 $ 7.40<br>Return on average assets (1) 1.16 % 0.67 % 0.92 % 0.91 % 0.91 %<br>Impact of adjustments, net of tax 0.03 0.48 0.21 0.18 0.23<br>Adjusted return on average assets (non-GAAP) 1.19 % 1.15 % 1.13 % 1.09 % 1.14 %<br>Return on average equity (1) 11.8 % 6.9 % 9.9 % 9.8 % 9.6 %<br>Impact of adjustments, net of tax 0.4 5.0 2.3 2.0 2.4<br>Adjusted return on average equity (non-GAAP) 12.2 % 11.9 % 12.2 % 11.8 % 12.0 %<br>Return on average tangible common equity (1) 12.0 % 7.0 % 10.1 % 9.9 % 9.7 %<br>Impact of adjustments, net of tax 0.3 5.0 2.3 2.0 2.5<br>Adjusted return on average tangible common equity (non-GAAP) 12.3 % 12.0 % 12.4 % 11.9 % 12.2 %<br>Efficiency ratio 53.7 % 71.7 % 62.4 % 62.8 % 62.7 %<br>Impact of adjustments (1.3) (17.7) (8.0) (7.4) (8.7)<br>Adjusted efficiency ratio (non-GAAP) 52.4 % 54.0 % 54.4 % 55.4 % 54.0 %<br>Quarterly Data Year ended | ||||
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