Latest news with #MCB
Business Recorder
3 days ago
- Business
- Business Recorder
MCB: Investments come first
MCB Bank Limited ended 1HCY25 with a higher Investment to Deposit Ratio than the infection ratio on its loan book. This does not happen often. The bank recorded a 7 percent year-on-year dip in pre-tax profits, as pressure on markup income and high administrative expenses weighed on profitability. A significant reversal in provisioning charges arrested the slide and the bank continued with its rich payout legacy with another interim dividend, taking the year-to-date payout to Rs18/share. The retreat from December end 2024 asset composition was always going to happen – but the pace of it appears too swift. Investments, primarily in government securities, crossed Rs2 trillion – a massive 78 percent jump from December 2024. Industry growth of investments during the same time is a little over 20 percent. The investment to deposit ratio (IDR) crossed 90 percent – a number not usually associated with IDRs – as Rs900 billion were added to the investment portfolio over December 2024. The advances portfolio received much less love as the penal tax on ADR threshold was not the hanging sword unlike 4QCY24. MCB's advances dipped 37 percent over December 2024, shedding Rs385 billion – outpacing the industry wide drop in advances of 16 percent. The trajectory of both advances and investments should not surprise anyone. The magnitude may. The ADR slipped under 30 percent – comfortably the lowest in a long time (if not ever). The macroeconomic a may well be looking up – genuine credit demand is still lagging even while the interest rates have been halved in less than a year. On the liabilities side, deposits grew by 16 percent over December 2024, much in line with industry average. Strongest growth came from low cost and no cost deposits, with the current account growth constituting 82 percent of all deposit growth, adding a staggering Rs256 billion over December domestic cost of deposits, as a result, was halved from 10.76 percent a year ago to 5.23 percent during 1HCY25. Such was the rush for investments in government securities, MCB added more to its borrowing portfolio than it did to the deposit base over December 2024. Another rarity in banking events. On the profit and loss front, the cost-to-income ratio took a hit, as both markup and non-funded income remained lower year-on-year. MCB's administrative costs stayed above period average inflation, which the bank puts down to talent, technology and marketing costs. Infection and coverage ratio remain healthy. It is likely that the asset composition will again start to shift as the year deepens – but a mad rush of borrowers looking for financing is not a high probability in the near future. The required thresholds of ADR will once again likely be met to avoid penalties – but won't necessarily reflect a permanent shift in how banks have been banking for quite some while.
Business Recorder
4 days ago
- Business
- Business Recorder
MCB Bank delivers Rs58.06bn PBT in H1CY25
LAHORE: The Board of Directors of MCB Bank Limited (MCB), in its meeting held under the chairmanship of Mian Mohammad Mansha, reviewed the Bank's performance and approved the condensed interim financial statements for the half year ended June 30, 2025. The Board declared a second interim cash dividend of Rs 9.00 per share (90pc), in addition to the 90 percent dividend paid earlier, bringing the total cash dividend for H1 2025 to 180 percent. MCB Bank reported a profit before tax (PBT) of Rs 58.06 billion for the six months ended June 30, 2025. Profit after tax (PAT) stood at Rs 27.31 billion, translating into earnings per share (EPS) of Rs 23.04 versus Rs 26.95 in H1 2024. The decline in net profitability also reflects a four percent increase in the effective tax rate compared to H1 2024. On a consolidated basis, the Bank posted a PBT of Rs 62.5 billion. These results highlight MCB's prudent balance sheet management, focus on core banking operations, and commitment to disciplined risk governance. Net interest income declined by 5 percent year-on-year, primarily due to margin compression following a downward revision in the policy rate. However, this impact was partially offset by the Bank's strategic focus on no-cost deposit mobilization, which led to a strong 27 percent growth in current deposits. Non-markup income decreased by 4 percent to Rs 17.5 billion. Fee and commission income declined by 13 percent to Rs 9.8 billion, primarily due to intensified competition in the routing of foreign currency remittances through MCB's channels. Foreign exchange income remained stable at Rs 4.9 billion, while dividend income posted a significant increase of 55 percent, reaching Rs 2.6 billion. The Bank continued to benefit from the momentum gained in digital banking, with card-related income rising by 18 percent. Operating expenses increased by 18 percent year-on-year, primarily driven by investments in talent, technology and marketing. However, the cost-to-income ratio summed at 38.05 percent, reflecting disciplined financial management while continuing to invest in innovation and talent development. On the balance sheet side, MCB Bank's total assets grew by 25 percent to Rs 3.38 trillion, supported by a 78 percent increase in investments. Gross advances declined by 36 percent, reflecting a prudent lending approach in response to prevailing macroeconomic challenges. Asset quality remained strong, with non-performing loans at Rs 52.0 billion, infection ratio at 7.42 percent, and coverage ratio maintained at 91.71 percent. Deposits grew to Rs 2.23 trillion, with a historic Rs 256 billion increase in current deposits, reflecting the Bank's continued focus on cost-effective deposit mobilization. This shift in deposit mix helped reduce the domestic cost of deposits to 5.23 percent, down significantly from 10.76 percent in H1 2024. The Bank reported Return on Assets (RoA) of 1.80 percent and Return on Equity (RoE) of 23.66 percent, with Book Value per Share at Rs 197.84. MCB continued to play a leading role in the remittance business, processing USD 2,303 million in home remittances during H1 2025, an increase of 16.7 percent over the corresponding period last year. The Bank remains a key partner in supporting the State Bank of Pakistan's efforts to promote formal remittance channels and drive financial inclusion across the country. The Bank maintained a strong capital position, with Capital Adequacy Ratio (CAR) at 19.61 percent and Common Equity Tier-1 (CET1) at 15.26 percent, well above the regulatory thresholds. Liquidity buffers also remained robust, with Liquidity Coverage Ratio (LCR) at 260.71 percent and Net Stable Funding Ratio (NSFR) at 155.73 percent. The Bank's credit ratings were reaffirmed by the Pakistan Credit Rating Agency (PACRA) at 'AAA' for long-term and 'A1+' for short-term through its notification dated June 23, 2025. Despite external challenges, MCB Bank remains firmly positioned for long-term growth, backed by its prudent risk management practices, strong capital and liquidity buffers, and a continued emphasis on digital transformation and customer-centric innovation. The Bank's strategic focus on operational excellence, cost efficiency, and value creation for all stakeholders remains unchanged. Copyright Business Recorder, 2025
Business Wire
7 days ago
- Business
- Business Wire
Metropolitan Commercial Bank Appoints Ali Abedini as its first Chief Artificial Intelligence Officer
NEW YORK--(BUSINESS WIRE)--Metropolitan Commercial Bank (the 'Bank,' 'MCB'), a full-service commercial bank headquartered in New York City is excited to announce the appointment of Ali Abedini as its first Chief Artificial Intelligence Officer, a move that reinforces the Bank's commitment to investing in technology to deliver continued financial excellence and innovation. 'We recognize the critical importance of growing our team to lead the development and implementation of cutting-edge technologies to better serve our clients,' said Mark R. DeFazio, Founder, President and CEO at Metropolitan Commercial Bank. Ali joins Metropolitan Commercial Bank with over two decades of experience in advanced analytics, machine learning, and responsible AI in highly regulated financial services. The newly appointed Chief Artificial Intelligence Officer will collaborate with cross-functional teams to integrate AI and advanced data capabilities into the Bank's core financial and operational systems. 'We recognize the critical importance of growing our team to lead the development and implementation of cutting-edge technologies to better serve our clients,' said Mark R. DeFazio, Founder, President and CEO at Metropolitan Commercial Bank. 'Mr. Abedini's background and experience will be instrumental in achieving our strategic growth.' Prior to joining MCB, Ali Abedini served as Executive Head of Advanced Analytics & AI at TD Bank. Throughout his career, he has spearheaded AI and data-driven initiatives, with a strong focus on personalization and intelligent automation to drive business outcomes. 'I'm honored to join Metropolitan Commercial Bank as its first Chief AI Officer at such a pivotal moment. This organization has developed a well-thought-out growth plan that will benefit from integrating AI into its systems,' commented Ali Abedini, Chief Artificial Intelligence Officer. 'I'm also excited to work directly with Mark DeFazio, a founder-CEO who brings a rare combination of entrepreneurial mindset and institutional leadership.' In addition to elevating Metropolitan Commercial Bank's client experience, the Chief Artificial Intelligence Officer role is strategically designed to strengthen the Bank's capacity to deliver tailored banking solutions to both clients and partners. About Metropolitan Commercial Bank Metropolitan Commercial Bank (the 'Bank') is 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 provides specialized banking services for the EB-5 and E-2 communities. The Bank combines deep industry expertise with tailored financial products to ensure a smooth, secure and efficient journey from initial investment to project completion. Metropolitan Commercial Bank was named one of Newsweek's Best Regional Banks in 2024 and 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 29, 2025. For the fourth time, MCB has earned a place in the Piper Sandler Bank Sm-All Stars Class of 2024. Metropolitan Commercial Bank operates banking centers and private client offices in Manhattan and Boro Park, Brooklyn in New York City, and Great Neck on Long Island in New York State. 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. The parent company of Metropolitan Commercial Bank is Metropolitan Bank Holding Corp. (NYSE: MCB) (the 'Company'). To learn more about the Bank visit: 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, business, share repurchases under the program, and dividend payments. 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.
Business Wire
17-07-2025
- Business
- Business Wire
Metropolitan Bank Holding Corp. Reports Second Quarter 2025 Results
- Net Interest Margin increased to 3.83% Diluted EPS of $1.76 Financial Highlights Diluted earnings per share of $1.76 for the second quarter of 2025, an increase of 21.4% compared to the first quarter of 2025, inclusive of $1.6 million of digital transformation project spend, or $0.10 diluted earnings per common share, after tax. The net interest margin for the second quarter of 2025 was 3.83%, an increase of 15 basis points compared to 3.68% for the prior linked quarter and an increase of 39 basis points compared to 3.44% for the prior year period. Total loans at June 30, 2025 were $6.6 billion, an increase of $270.7 million, or 4.3%, from March 31, 2025 and $773.9 million, or 13.3%, from June 30, 2024. Total deposits at June 30, 2025 were $6.8 billion, an increase of $342.0 million, or 5.3%, from March 31, 2025 and $621.6 million, or 10.1%, from June 30, 2024. On July 17, 2025, the Company's board of directors declared a quarterly dividend on the Company's common stock of $0.15 per share, the Company's first cash dividend in its history, payable to holders of record on July 28. The Company completed its initial $50 million share repurchase program in May 2025, resulting in the purchase of 878,807 shares of common stock at an average price of $56.90 per share. On July 17, 2025, the Company's board of directors approved a new share repurchase plan with authorization to purchase up to an additional $50 million of the Company's common stock. In aggregate, the board of directors has authorized $100 million of share repurchases since March. Asset quality continues to be stable. The ratio of non-performing loans to total loans was 0.60% at June 30, 2025, compared to 0.54% for the prior linked quarter and 0.53% for the prior year period. Liquidity remains strong. At June 30, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion, which represented 178% of our estimated uninsured deposits. The Company and Bank are 'well capitalized' under all applicable regulatory guidelines, with total risk-based capital ratios of 12.2% and 12.0%, respectively, at June 30, 2025, well above regulatory minimums. NEW YORK--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (the 'Company') (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the 'Bank'), reported net income of $18.8 million, or $1.76 per diluted common share, for the second quarter of 2025 compared to $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025, and $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024. Mark DeFazio, President and Chief Executive Officer, commented, 'I am pleased with MCB's sustained performance throughout our various business lines. Our second quarter and first half results underscore the strength and discipline of our franchise, which position us well to balance supporting our clients with attractive shareholder returns. Our true diversified commercial bank offerings clearly differentiate MCB from our peers. 'In the second quarter, we completed our initial $50 million share repurchase program announced in March, at prices well below our tangible book value. Given robust results coupled with confidence in continued business strength, our board has authorized an additional $50 million repurchase program for a total of $100 million authorized year to date. As part of our multi-pronged approach to return capital to shareholders while maintaining investment and expansion optionality, our board also approved an initial quarterly cash dividend. 'Our healthy balance sheet, together with strong earnings momentum, enables us to opportunistically capitalize on various strategic initiatives to support responsible growth.' Balance Sheet Total cash and cash equivalents were $152.5 million at June 30, 2025, a decrease of $44.0 million, or 22.4%, from March 31, 2025, and a decrease of $92.2 million, or 37.7%, from June 30, 2024. The decrease from March 31, 2025 primarily reflects an increase in the loan book of $270.7 million and an $85.0 million decrease in wholesale funding, partially offset by an increase of $342.0 million in deposits. The decrease from June 30, 2024 primarily reflects an increase in the loan book of $773.9 million, partially offset by an increase of $621.6 million in deposits. Total loans, net of deferred fees and unamortized costs, were $6.6 billion at June 30, 2025, an increase of $270.7 million, or 4.3%, from March 31, 2025, and an increase of $773.9 million, or 13.3%, from June 30, 2024. Loan production was $492.0 million for the second quarter of 2025 compared to $409.8 million for the prior linked quarter and $290.8 million for the prior year period. The increase in total loans from March 31, 2025, was due primarily to an increase of $252.5 million in commercial real estate ('CRE') loans (including owner-occupied). The increase in total loans from June 30, 2024 was due primarily to an increase of $790.8 million in CRE loans (including owner-occupied). Total deposits were $6.8 billion at June 30, 2025, an increase of $342.0 million, or 5.3%, from March 31, 2025, and an increase of $621.6 million, or 10.1%, from June 30, 2024. Deposit growth was broadly distributed across the Bank's various deposit verticals. At June 30, 2025, 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 371.9% of total risk-based capital at June 30, 2025, compared to 367.0% and 358.4% at March 31, 2025 and June 30, 2024, respectively. The increased CRE concentration ratio is primarily the result of the Bank funding the share repurchase program at the Company. _____________________________ (1) Total revenues equal net interest income plus non-interest income. (2) Ratios are annualized. (3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12. (4) Net income divided by average tangible common equity. Expand Net Interest Income Net interest income for the second quarter of 2025 was $73.6 million compared to $67.0 million for the prior linked quarter and $61.5 million for the prior year period. The $6.7 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 an increase in the average balance of interest-bearing deposits. The $12.1 million increase from the prior year period was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits. Net Interest Margin Net interest margin for the second quarter of 2025 was 3.83% compared to 3.68% and 3.44% for the prior linked quarter and prior year period, respectively. The Bank's ability to expand its net interest margin is supported by rigorous loan and deposit pricing initiatives. The total cost of funds for the second quarter of 2025 was 310 basis points compared to 319 basis points and 334 basis points for the prior linked quarter and prior year period, respectively. The decrease from the prior linked quarter reflects the deposit mix and hedging activities, and a decrease in the average balance of borrowings. The decrease from the prior year period reflects the reduction in short-term interest rates. Non-Interest Income Non-interest income was $2.6 million for the second quarter of 2025, a decrease of $1.0 million from the prior linked quarter and a decrease of $3.5 million from the prior year period. The decrease from the prior linked quarter was driven primarily by a one-time recognition in the first quarter of 2025 of non-refundable program fees of $822,000. The decrease from the prior year period was driven primarily by the absence of Banking-as-a-Service revenue. Non-Interest Expense Non-interest expense was $43.1 million for the second quarter of 2025, an increase of $387,000 from the prior linked quarter and an increase of $852,000 from the prior year period. The increase from the prior linked quarter was due primarily to an increase of $1.4 million in technology costs, $988,000 in licensing fees and $792,000 in deposit program related fees, partially offset by a $1.5 million seasonal decrease in compensation and benefits and $1.4 million reduction in professional fees. The $852,000 increase from the prior year period was due primarily to a $1.7 million increase in compensation and benefits related to the increase in the number of employees, a $1.7 million increase in deposit program related fees, and a $610,000 increase in technology costs, partially offset by decreases of $3.3 million in professional fees. Income Tax Expense The effective tax rate for the second quarter of 2025 was 29.9% compared to 30.0% for the prior linked quarter and 29.7% for the prior year period. Asset Quality Credit quality remains stable. The ratio of non-performing loans to total loans was 0.60% at June 30, 2025 and 0.54% at March 31, 2025 and 0.53% at June 30, 2024. The allowance for credit losses was $74.1 million at June 30, 2025, an increase of $6.3 million from March 31, 2025 and an increase of $14.1 million from June 30, 2024. The increase from the prior linked quarter was due primarily to loan growth, provisioning for a commercial real estate loan and changes in the outlook for certain macroeconomic variables. Conference Call The Company will conduct a conference call at 9:00 a.m. ET on Friday, July 18, 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: MCBQ225 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 in 2024 and 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 29, 2025. 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 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, business, share repurchases under the program, and dividend payments. 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. Consolidated Statement of Income (unaudited) Three months ended Six months ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, (dollars in thousands, except per share data) 2025 2025 2024 2025 2024 Total interest income $ 127,043 $ 118,770 $ 115,761 $ 245,813 $ 228,096 Total interest expense 53,396 51,818 54,222 105,214 106,848 Net interest income 73,647 66,952 61,539 140,599 121,248 Provision for credit losses 6,378 4,506 1,538 10,884 2,066 Net interest income after provision for credit losses 67,269 62,446 60,001 129,715 119,182 Non-interest income Service charges on deposit accounts 2,131 2,173 2,094 4,304 3,957 Global Payments Group revenue — — 3,686 — 7,755 Other income 492 1,465 359 1,957 1,431 Total non-interest income 2,623 3,638 6,139 6,261 13,143 Non-interest expense Compensation and benefits 20,255 21,739 18,532 41,994 38,359 Bank premises and equipment 2,513 2,463 2,322 4,976 4,665 Professional fees 3,583 4,986 6,916 8,569 12,888 Technology costs 3,653 2,220 3,043 5,873 6,054 Licensing fees 3,462 2,474 3,180 5,936 6,456 FDIC assessments 2,999 2,967 2,925 5,966 5,850 Other expenses 6,644 5,873 5,339 12,517 9,885 Total non-interest expense 43,109 42,722 42,257 85,831 84,157 Net income before income tax expense 26,783 23,362 23,883 50,145 48,168 Income tax expense 8,016 7,008 7,084 15,024 15,166 Net income (loss) $ 18,767 $ 16,354 $ 16,799 $ 35,121 $ 33,002 Average common shares outstanding: Basic 10,564,275 11,215,118 11,192,936 10,886,120 11,163,127 Diluted 10,676,878 11,281,375 11,199,736 10,975,431 11,163,127 Basic earnings (loss) $ 1.78 $ 1.46 $ 1.50 $ 3.23 $ 2.96 Diluted earnings (loss) $ 1.76 $ 1.45 $ 1.50 $ 3.20 $ 2.96 Expand Loan Production, Asset Quality & Regulatory Capital Performance Measures Three months ended Six months ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, (dollars in thousands, except per share data) 2025 2025 2024 2025 2024 Net income per consolidated statements of income $ 18,767 $ 16,354 $ 16,799 $ 35,121 $ 33,002 Less: Earnings allocated to participating securities — — — — — Net income (loss) available to common shareholders $ 18,767 $ 16,354 $ 16,799 $ 35,121 $ 33,002 Per common share: Basic earnings (loss) $ 1.78 $ 1.46 $ 1.50 $ 3.23 $ 2.96 Diluted earnings (loss) $ 1.76 $ 1.45 $ 1.50 $ 3.20 $ 2.96 Common shares outstanding: Period end 10,421,384 11,066,234 11,192,936 10,421,384 11,192,936 Average fully diluted 10,676,878 11,281,375 11,199,736 10,975,431 11,163,127 Return on: (1) Average total assets 0.97 % 0.89 % 0.92 % 0.93 % 0.91 % Average equity 10.4 % 9.0 % 9.9 % 9.7 % 9.9 % Average tangible common equity (2), (3) 10.5 % 9.1 % 10.1 % 9.8 % 10.0 % Yield on average earning assets (1) 6.61 % 6.52 % 6.47 % 6.57 % 6.43 % Total cost of deposits (1) 3.02 % 3.09 % 3.26 % 3.05 % 3.21 % Net interest spread (1) 2.76 % 2.53 % 1.77 % 2.65 % 1.77 % Net interest margin (1) 3.83 % 3.68 % 3.44 % 3.76 % 3.42 % Net charge-offs as % of average loans (1) — % — % — % — % — % Efficiency ratio (4) 56.5 % 60.5 % 62.4 % 58.4 % 62.6 % Expand Interest Margin Analysis _____________________________ (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. Expand _____________________________ (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. Expand 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 Six months ended (dollars in thousands, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, Jun. 30, Jun. 30, except per share data) 2025 2025 2024 2024 2024 2025 2024 Average assets $ 7,775,199 $ 7,451,703 $ 7,363,252 $ 7,297,503 $ 7,322,480 $ 7,613,420 $ 7,254,118 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Average tangible assets (non-GAAP) $ 7,765,466 $ 7,441,970 $ 7,353,519 $ 7,287,770 $ 7,312,747 $ 7,603,687 $ 7,244,385 Average equity $ 723,974 $ 738,224 $ 721,506 $ 706,442 $ 680,064 $ 730,135 $ 673,531 Less: average preferred equity — — — — — — — Average common equity $ 723,974 $ 738,224 $ 721,506 $ 706,442 $ 680,064 $ 730,135 $ 673,531 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Average tangible common equity (non-GAAP) $ 714,241 $ 728,491 $ 711,773 $ 696,709 $ 670,331 $ 720,402 $ 663,798 Total assets $ 7,853,849 $ 7,616,298 $ 7,300,749 $ 7,403,358 $ 7,265,591 $ 7,853,849 $ 7,265,591 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Tangible assets (non-GAAP) $ 7,844,116 $ 7,606,565 $ 7,291,016 $ 7,393,625 $ 7,255,858 $ 7,844,116 $ 7,255,858 Common equity $ 722,968 $ 737,846 $ 729,827 $ 715,191 $ 692,404 $ 722,968 $ 692,404 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Tangible common equity (book value) (non-GAAP) $ 713,235 $ 728,113 $ 720,094 $ 705,458 $ 682,671 $ 713,235 $ 682,671 Common shares outstanding 10,421,384 11,066,234 11,197,625 11,194,411 11,192,936 10,421,384 11,192,936 Book value per share (GAAP) $ 69.37 $ 66.68 $ 65.18 $ 63.89 $ 61.86 $ 69.37 $ 61.86 Tangible book value per share (non-GAAP) (1) $ 68.44 $ 65.80 $ 64.31 $ 63.02 $ 60.99 $ 68.44 $ 60.99 Expand _____________________________ (1) Tangible book value divided by common shares outstanding at period-end. Expand Explanatory Note Some amounts presented within this document may not recalculate due to rounding. Contacts Daniel F. Dougherty EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6721 IR@ Industry: Banking Professional Services Finance Metropolitan Bank Holding Corp. NYSE:MCB Release Versions English Contacts EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6721 IR@ Metropolitan Commercial Bank Deepens Its Commitment to the Boro Park Community NEW YORK--(BUSINESS WIRE)--Metropolitan Commercial Bank (the 'Bank,' 'MCB'), a full-service commercial bank headquartered in New York City, is proud to announce a significant donation to the Boro Park Jewish Community Council Inc. (BPJCC): a 10-year, rent free lease for a large portion of the Bank's property at 5102 13th Avenue in the heart of Boro Park, Brooklyn. The donated space—located next door to the Bank's Boro Park Banking Center—will serve as the headquarters for BPJCC and support its... Metropolitan Bank Holding Corp. Announces Second Quarter 2025 Earnings Release and Conference Call Date NEW YORK--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (the 'Company') (NYSE: MCB), the holding company for Metropolitan Commercial Bank, today announced it will release second quarter 2025 financial results after the market closes on Thursday, July 17, 2025. The Company will conduct a conference call at 9:00 a.m. ET on Friday, July 18, 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: MCBQ225 appro... Metropolitan Bank Holding Corp. NYSE:MCB Release Versions English Contacts Daniel F. Dougherty EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6721 IR@
Business Wire
17-07-2025
- Business
- Business Wire
Metropolitan Bank Holding Corp. Announces Initial Cash Dividend and New Share Repurchase Program
NEW YORK--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (the 'Company') (NYSE: MCB), the holding company for Metropolitan Commercial Bank, is pleased to announce that its board of directors declared a quarterly dividend of $0.15 per share on the Company's common stock (the 'Dividend'), the Company's first cash dividend since its initial public offering in 2017. The Company expects to continue to distribute regular cash dividends subject to the discretion of the board of directors and in accordance with applicable securities, corporate and banking laws, rules, regulations, and guidance. The Dividend is payable on August 11, 2025 to holders of record of the Company's common stock at the close of business on July 28, 2025. The Company is also pleased to announce that its board of directors approved a new share repurchase plan with authorization to purchase up to $50 million of the Company's common stock. The Company used all of the available capacity under its repurchase program that was previously announced in March 2025. The Company may repurchase shares of common stock from time to time on the open market or by other means in accordance with applicable securities laws and other restrictions, including, in part, under a Rule 10b5-1 plan. The number of shares to be repurchased and the timing of repurchases, if any, will depend on several factors, including market conditions, prevailing share price, corporate and regulatory requirements, and other considerations. The share repurchase plan has no expiration date, may be discontinued or suspended at any time and does not obligate the Company to acquire any amount of its common stock. The results of the program will be reflected in the Company's periodic filings with the Securities and Exchange Commission. Mark DeFazio, President and Chief Executive Officer, commented, 'We are thrilled to announce this quarterly cash dividend, the first in our history as a publicly traded company. Taken together with the new common stock repurchase authorization, today marks a significant milestone for MCB that not only reflects the strength of our balance sheet and our commitment to delivering total return to our investors, but also our confidence in our long-term growth trajectory.' 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 in 2024 and 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 29, 2025. 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 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, business, share repurchases under the program, and dividend payments. 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.
