Results Led by Growth in Loans and Deposits
NEW YORK--(BUSINESS WIRE)--
Metropolitan Bank Holding Corp. (NYSE:MCB), the holding company (the
“Company”) for Metropolitan Commercial Bank (the “Bank”), today reported
net income of $7.1 million, or $0.85 per diluted common share, for the
third quarter of 2018 as compared to $3.8 million, or $0.82 per diluted
common share, for the third quarter of 2017.
For the nine-months ended September 30, 2018, the Company reported net
income of $19.3 million, or $2.31 per diluted common share, as compared
to $9.0 million, or $1.94 per diluted common share, for the nine months
ended September 30, 2017.
Financial Highlights for the third quarter of 2018 include:
-
Net income for the third quarter of 2018 included a loan loss recovery
of $1.5 million resulting in a negative provision for loan losses of
$453,000. Excluding the loan loss recovery, net of associated legal
fees, net income for the quarter was $6.1 million or $0.73 per diluted
common share.
-
The average balance of loans increased 24% to $1.6 billion for the
third quarter of 2018, as compared to the third quarter of 2017. For
the three and nine months ended September 30, 2018, the Bank
originated loans of $146.9 million and $528.2 million, respectively as
compared to $137.3 million and $417.6 million for the same periods in
2017.
-
The average balance of non-interest-bearing demand accounts increased
25% to $850.3 million for the third quarter of 2018 as compared to
$682.3 million for the third quarter of 2017.
-
The average balance of interest-bearing deposits increased 12% to
$728.5 million for the 2018 third quarter as compared to $653.1
million for third quarter of 2017.
-
Net interest margin increased 17 basis points to 3.76% for the third
quarter of 2018 from 3.59% for the third quarter of 2017. For the nine
months ended September 30, 2018, net interest margin increased to
3.70% as compared to 3.54% for the same period in 2017.
-
Annualized return on average assets for the third quarter of 2018 was
1.45%, an increase of 51 basis points as compared to 0.94% for the
third quarter of 2017.
-
Annualized return on average equity was 11.22% for the third quarter
of 2018 as compared to 13.14% for the third quarter of 2017. The
Company completed its initial public offering in November 2017 raising
$114.8 million.
-
The Company’s efficiency ratio in the third quarter of 2018 was
50.85%, compared to 53.03% for the same quarter in 2017.
Mark DeFazio, the Company’s President and Chief Executive Officer,
commented, “We are pleased with the accomplishments we have achieved as
we approach the first anniversary of our IPO. Year-over-year, total
assets increased 12% fueled by growth in our loan portfolio which was
the result of our steadfast commitment to our relationship banking
model. This growth in our balance sheet will yield a more consistent and
sustainable net interest margin over time. Our balance sheet improvement
translated into strong earnings for the quarter and for the first nine
months of 2018. We more than doubled our net income – to $19.3 million
for the first nine months of 2018 as compared to $9.0 million for the
same period in 2017.”
Mr. DeFazio continued, “I am pleased with the successes of the past year
but am keenly aware of the challenges and opportunities that face banks
in 2019. A flat yield curve and competition for loans and deposits are
challenges facing the industry but I am confident that our
“branch-light” franchise and deposit funding strategy differentiate us
from our peers. Our strategy combined with deposit platforms that cater
to institutional clients with discretion over large sums of money
provides the Bank with an efficient source of funding. As we prepare for
2019 and our second year as a public company, we are well-positioned for
the opportunities that the future holds for our business.”
Earnings Highlights |
|
|
| |
| |
| | |
| (dollars in thousands) | | | |
Three months ended
| |
| | | Sept. 30, 2018 |
| Sept. 30, 2017 |
|
Change
| |
|
Net income
| | | |
$
|
7,113
| | |
$
|
3,845
| | |
85
|
%
| |
|
Diluted earnings per share
| | | | |
0.85
| | | |
0.82
| | |
4
|
%
| |
|
Annualized return on average assets
| | | | |
1.45
|
%
| | |
0.94
|
%
| | | |
|
Annualized return on average equity
| | | | |
11.22
|
%
| | |
13.14
|
%
| | | |
|
Annualized return on average common equity*
| | | | |
11.47
|
%
| | |
13.79
|
%
| | | |
| | | | | | | | |
|
| (dollars in thousands) | | | |
Nine months ended
| |
| | | Sept. 30, 2018 |
| Sept. 30, 2017 |
|
Change
| |
|
Net income
| | | |
$
|
19,268
| | |
$
|
9,044
| | |
113
|
%
| |
|
Diluted earnings per share
| | | | |
2.31
| | | |
1.94
| | |
22
|
%
| |
|
Annualized return on average assets
| | | | |
1.34
|
%
| | |
0.84
|
%
| | | |
|
Annualized return on average equity
| | | | |
10.31
|
%
| | |
10.56
|
%
| | | |
|
Annualized return on average common equity*
| | | | |
10.67
|
%
| | |
10.81
|
%
| | | |
| | | | | | | | | | | | |
|
*Common equity excludes Class B preferred stock. See
reconciliation to GAAP measures on page 16. | |
|
|
Net income increased $3.3 million to $7.1 million for the three months
ended September 30, 2018 as compared to $3.8 million for the same period
in 2017. This increase was due primarily to a $4.4 million increase in
net interest income and a $1.7 million decrease in the provision for
loan losses partially offset by a $1.8 million increase in non-interest
expense. Net income for the third quarter of 2018 included a loan loss
recovery of $1.5 million resulting in a negative provision for loan
losses of $453,000. Excluding the loan loss recovery, net of associated
legal fees, net income for the quarter was $6.1 million or $0.73 per
diluted common share.
For the nine months ended September 30, 2018, net income increased $10.3
million to $19.3 million as compared to $9.0 million for the same period
in 2017. This increase was due primarily to a $15.7 million increase in
net interest income, a $1.3 million decrease in the provision for loan
losses and a $5.0 million increase in non-interest income, partially
offset by an $8.9 million increase in non-interest expense and a $2.8
million increase in income tax expense. Excluding the loan loss
recovery, net of associated legal fees, net income for the nine months
ended September 30, 2018 was $18.4 million or $2.20 per diluted common
share.
Net Interest Margin Analysis |
|
| Three months ended September 30, |
| (dollars in thousands) | | | 2018 |
|
| 2017 |
| | Average Outstanding Balance |
| Interest |
| Yield/Rate | | | Average Outstanding Balance |
| Interest |
| Yield/Rate |
| Assets: | | | |
| |
| | | | |
| |
| |
|
Interest-earning assets:
| | | | | | | | | | | | | | |
|
Loans (1) | | |
$
|
1,639,958
| | |
$
|
20,255
| |
4.90
|
%
| | |
$
|
1,326,923
| | |
$
|
15,564
| |
4.65
|
%
|
|
Available-for-sale securities
| | | |
30,033
| | | |
165
| |
2.18
|
%
| | | |
34,930
| | | |
178
| |
2.02
|
%
|
|
Held-to-maturity securities
| | | |
4,876
| | | |
25
| |
2.03
|
%
| | | |
5,844
| | | |
30
| |
2.04
|
%
|
|
Overnight deposits
| | | |
240,604
| | | |
1,233
| |
2.03
|
%
| | | |
148,756
| | | |
476
| |
1.27
|
%
|
|
Other interest-earning assets
| | |
| 20,794 |
| |
| 229 | |
4.37
|
%
| | |
| 29,379 |
| |
| 180 | |
2.43
|
%
|
|
Total interest-earning assets
| | | |
1,936,265
| | | |
21,907
| |
4.49
|
%
| | | |
1,545,832
| | | |
16,428
| |
4.22
|
%
|
|
Non-interest-earning assets
| | | |
42,384
| | | | | | | | |
102,402
| | | | | |
|
Allowance for loan and lease losses
| | |
| (18,331 | ) | | | | | | |
| (14,301 | ) | | | | |
|
Total assets
| | | $ | 1,960,318 |
| | | | | | | $ | 1,633,933 |
| | | | |
| | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | |
|
Interest-bearing liabilities:
| | | | | | | | | | | | | | |
|
Money market and savings accounts
| | |
$
|
633,474
| | |
$
|
2,045
| |
1.28
|
%
| | |
$
|
576,619
| | |
$
|
1,337
| |
0.92
|
%
|
|
Certificates of deposit
| | |
| 95,032 |
| |
| 520 | |
2.17
|
%
| | |
| 76,506 |
| |
| 251 | |
1.30
|
%
|
|
Total interest-bearing deposits
| | | |
728,506
| | | |
2,565
| |
1.40
|
%
| | | |
653,125
| | | |
1,588
| |
0.96
|
%
|
|
Borrowed funds
| | |
| 105,403 |
| |
| 991 | |
3.73
|
%
| | |
| 112,651 |
| |
| 849 | |
2.99
|
%
|
|
Total interest-bearing liabilities
| | | |
833,909
| | | |
3,556
| |
1.69
|
%
| | | |
765,776
| | | |
2,437
| |
1.26
|
%
|
|
Non-interest-bearing liabilities:
| | | | | | | | | | | | | | |
|
Non-interest-bearing deposits
| | | |
850,325
| | | | | | | | |
682,303
| | | | | |
|
Other non-interest bearing liabilities
| | |
| 22,568 |
| | | | | | |
| 68,799 |
| | | | |
|
Total liabilities
| | |
| 1,706,802 |
| | | | | | |
| 1,516,878 |
| | | | |
| | | | | | | | | | | | | |
|
|
Stockholders' Equity
| | |
| 253,516 |
| | | | | | |
| 117,055 |
| | | | |
|
Total liabilities and equity
| | | $ | 1,960,318 |
| | | | | | | $ | 1,633,933 |
| | | | |
| | | | | | | | | | | | | |
|
|
Net interest income
| | | | | $ | 18,351 | | | | | | | $ | 13,991 | | |
|
Net interest rate spread (2) | | | | | | |
2.80
|
%
| | | | | | |
2.96
|
%
|
|
Net interest-earning assets
| | | $ | 1,102,356 |
| | | | | | | $ | 780,056 |
| | | | |
|
Net interest margin (3) | | | | | | |
3.76
|
%
| | | | | | |
3.59
|
%
|
|
Ratio of interest earning assets to interest bearing liabilities
| | | | | | |
2.32x
| | | | | | |
2.02x
|
|
| |
| | |
|
(1)
| |
Amount includes deferred loan fees and non-performing loans.
| |
|
(2)
| |
Determined by subtracting the annualized weighted average cost of
total interest-bearing liabilities from the annualized weighted
average yield on total interest-earning assets.
| |
|
(3)
| |
Determined by dividing annualized net interest income by total
average interest-earning assets.
| |
| | | |
|
|
|
| | |
Net Interest Margin Analysis | | | Nine months ended September 30, | |
| (dollars in thousands) | | | 2018 |
|
| 2017 | |
| | Average Outstanding Balance |
| Interest |
| Yield/Rate | | | Average Outstanding Balance |
| Interest |
| Yield/Rate | |
| Assets: | | | |
| |
| | | | |
| |
| | |
|
Interest-earning assets:
| | | | | | | | | | | | | | | |
|
Loans (1) | | |
$
|
1,550,278
| | |
$
|
55,467
| |
4.78
|
%
| | |
$
|
1,192,463
| | |
$
|
40,811
| |
4.58
|
%
| |
|
Available-for-sale securities
| | | |
30,661
| | | |
489
| |
2.13
|
%
| | | |
35,782
| | | |
548
| |
2.05
|
%
| |
|
Held-to-maturity securities
| | | |
5,095
| | | |
80
| |
2.09
|
%
| | | |
6,099
| | | |
94
| |
2.06
|
%
| |
|
Overnight deposits
| | | |
272,039
| | | |
3,811
| |
1.87
|
%
| | | |
117,399
| | | |
957
| |
1.09
|
%
| |
|
Other interest-earning assets
| | |
| 30,768 |
| |
| 755 | |
3.28
|
%
| | |
| 29,817 |
| |
| 519 | |
2.33
|
%
| |
|
Total interest-earning assets
| | | |
1,888,841
| | | |
60,602
| |
4.29
|
%
| | | |
1,381,560
| | | |
42,929
| |
4.15
|
%
| |
|
Non-interest-earning assets
| | | |
42,084
| | | | | | | | |
59,733
| | | | | | |
|
Allowance for loan and lease losses
| | |
| (16,823 | ) | | | | | | |
| (12,979 | ) | | | | | |
|
Total assets
| | | $ | 1,914,102 |
| | | | | | | $ | 1,428,314 |
| | | | | |
| | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | |
|
Interest-bearing liabilities:
| | | | | | | | | | | | | | | |
|
Money market and savings accounts
| | |
$
|
566,396
| | |
$
|
4,663
| |
1.10
|
%
| | |
$
|
562,539
| | |
$
|
3,562
| |
0.85
|
%
| |
|
Certificates of deposit
| | |
| 84,244 |
| |
| 1,139 | |
1.81
|
%
| | |
| 79,494 |
| |
| 754 | |
1.27
|
%
| |
|
Total interest-bearing deposits
| | | |
650,640
| | | |
5,802
| |
1.19
|
%
| | | |
642,033
| | | |
4,316
| |
0.90
|
%
| |
|
Borrowed funds
| | |
| 90,241 |
| |
| 2,534 | |
3.75
|
%
| | |
| 111,480 |
| |
| 2,061 | |
2.47
|
%
| |
|
Total interest-bearing liabilities
| | | |
740,881
| | | |
8,336
| |
1.50
|
%
| | | |
753,513
| | | |
6,377
| |
1.13
|
%
| |
|
Non-interest-bearing liabilities:
| | | | | | | | | | | | | | | |
|
Non-interest-bearing deposits
| | | |
902,495
| | | | | | | | |
542,200
| | | | | | |
|
Other non-interest bearing liabilities
| | |
| 22,178 |
| | | | | | |
| 18,704 |
| | | | | |
|
Total liabilities
| | |
| 1,665,554 |
| | | | | | |
| 1,314,417 |
| | | | | |
| | | | | | | | | | | | | | |
|
|
Stockholders' Equity
| | |
| 248,548 |
| | | | | | |
| 113,897 |
| | | | | |
|
Total liabilities and equity
| | | $ | 1,914,102 |
| | | | | | | $ | 1,428,314 |
| | | | | |
| | | | | | | | | | | | | | |
|
|
Net interest income
| | | | | $ | 52,266 | | | | | | | $ | 36,552 | | | |
|
Net interest rate spread (2) | | | | | | |
2.79
|
%
| | | | | | |
3.02
|
%
| |
|
Net interest-earning assets
| | | $ | 1,147,960 |
| | | | | | | $ | 628,047 |
| | | | | |
|
Net interest margin (3) | | | | | | |
3.70
|
%
| | | | | | |
3.54
|
%
| |
|
Ratio of interest earning assets to interest bearing liabilities
| | | | | | |
2.55x
| | | | | | |
1.83x
| |
|
| |
| | |
|
(1)
| |
Amount includes deferred loan fees and non-performing loans.
| |
|
(2)
| |
Determined by subtracting the annualized weighted average cost of
total interest-bearing liabilities from the annualized weighted
average yield on total interest-earning assets.
| |
|
(3)
| |
Determined by dividing annualized net interest income by total
average interest-earning assets.
| |
| | | |
|
Net interest margin improved by 17 basis points to 3.76% for the third
quarter of 2018 as compared to the third quarter of 2017. This
improvement was mainly the result of a 25 basis point increase in
average loan yields to 4.90% for the third quarter of 2018 as compared
to 4.65% for the same period in 2017, and an increase of 76 basis points
in the average yield on overnight deposits to 2.03% as compared to 1.27%
for the same period in 2017. Net interest margin also benefited from the
effect of an increase in average non-interest-bearing deposits as a
percentage of total average deposits in the third quarter of 2018 as
compared to the third quarter of 2017. Average non-interest-bearing
deposits increased $168.0 million to $850.3 million in the third quarter
of 2018, compared to $682.3 million in the third quarter of 2017 and
accounted for 54% of average total deposits during the third quarter of
2018 as compared to 51% during the third quarter of 2017. Average
interest-earning assets increased $390.4 million for the third quarter
of 2018 as compared to the third quarter of 2017, due primarily to a
$313.0 million increase in average loans and a $91.8 million increase in
average overnight deposits.
Net interest margin increased 16 basis points to 3.70% for the nine
months ended September 30, 2018 as compared to 3.54% for the same period
in 2017. This increase was primarily the result of an increase of 20
basis points in average loan yields to 4.78% for the nine months ended
September 30, 2018 as compared to 4.58% for the same period in 2017. Net
interest margin also benefited from the effect of an increase in average
non-interest-bearing deposits as a percentage of total average deposits
at September 30, 2018 as compared to the same period in 2017. Average
non-interest-bearing deposits increased $360.3 million to $902.5 million
at September 30, 2018, compared to $542.2 million for the same period in
2017 and accounted for 58% of average total deposits at September 30,
2018 as compared to 46.0% for the same period in 2017. Average
interest-earning assets increased $507.3 million for the nine months
ended September 30, 2018 as compared to the same period in 2017 due
primarily to an increase of $357.8 million in average loans and a $154.6
million increase in average overnight deposits. Average overnight
deposits included approximately $227.1 million of funds from the
settlement accounts of digital currency customer relationships.
Asset Quality
Non-performing assets consist of non-accrual loans, accruing loans that
are 90 days or more past due, non-accrual troubled debt restructurings
and other real estate owned that has been acquired in partial or full
satisfaction of loan obligations or upon foreclosure.
|
|
| |
| |
| |
| |
| (dollars in thousands) | | |
As Of
| | |
|
|
| Sept. 30, 2018 |
| December 31, 2017 |
| Sept. 30, 2017 | | |
|
Non-performing assets:
| | | | | | | | | |
|
Non-accrual loans:
| | | | | | | | | |
|
Real Estate:
| | | | | | | | | |
|
Commercial
| | |
$
|
-
| | |
$
|
787
| | |
$
|
841
| | | |
|
One-to-four family
| | | |
-
| | | |
2,447
| | | |
2,466
| | | |
|
Commercial and industrial
| | | |
-
| | | |
-
| | | |
3,660
| | | |
|
Consumer
| | |
|
79
|
|
|
|
155
|
|
|
|
125
|
| | |
|
Total non-accrual loans
| | |
$
|
79
| | |
$
|
3,389
| | |
$
|
7,092
| | | |
|
Accruing loans 90 days or more past due
| | |
|
328
|
|
|
|
-
|
|
|
|
-
|
| | |
|
Total non-performing assets
| | |
|
407
|
|
|
|
3,389
|
|
|
|
7,092
|
| | |
|
Nonaccrual loans as % of loans outstanding
| | | |
0.00
|
%
| | |
0.24
|
%
| | |
0.51
|
%
| | |
| | | | | | | | |
|
|
Allowance for loan losses
| | |
$
|
(18,493
|
)
| |
$
|
(14,887
|
)
| |
$
|
(15,075
|
)
| | |
|
Allowance for loan losses as % of loans outstanding
| | | |
1.09
|
%
| | |
1.05
|
%
| | |
1.09
|
%
| | |
| | | | | | | | |
|
| | | | | | | | |
|
| | |
Three months ended September 30,
|
|
Nine months ended September 30,
|
| (dollars in thousands) |
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Provision for loan losses
| | |
$
|
(453
|
)
| |
$
|
1,200
| | |
$
|
2,294
| | |
$
|
3,560
| |
|
Charge-offs
| | |
$
|
54
| | |
$
|
34
| | |
$
|
278
| | |
$
|
300
| |
|
Recoveries
| | |
$
|
(1,537
|
)
| |
$
|
-
| | |
$
|
(1,590
|
)
| |
$
|
-
| |
|
Net recoveries as % of average loans (annualized)
| | | |
(0.36
|
)%
| | |
0.01
|
%
| | |
(0.11
|
)%
| | |
0.03
|
%
|
| | | | | | | | | | | | | | | | |
|
The provision for loan losses was $(453,000) for the third quarter of
2018 as compared to $1.2 million for the third quarter of 2017. This
decrease was due to a recovery of $1.5 million related to previously
written-off loans. The provision for loan losses for the nine months
ended September 30, 2018 was $2.3 million as compared to $3.6 million
for the same period in 2017. This decrease was due primarily to the loan
loss recovery.
|
|
|
| |
| |
|
| | |
Non-interest Income | | | | | | | | | | |
| | | |
Three months ended September 30,
| |
| (dollars in thousands) | | | |
2018
|
|
2017
|
|
|
Change
| |
|
Service charges on deposit accounts
| | | |
$
|
693
| | |
$
|
836
| | |
-17
|
%
| |
|
Prepaid debit card income
| | | | |
1,080
| | | |
847
| | |
28
|
%
| |
|
Other service charges and fees
| | | |
|
239
|
| |
|
523
| | |
-54
|
%
| |
|
Total non-interest income
| | | |
$
|
2,012
|
| |
$
|
2,206
| | |
-9
|
%
| |
| | | | | | | | | |
|
| | | |
Nine months ended September 30,
| |
| | | |
2018
|
|
2017
|
|
|
Change
| |
|
Service charges on deposit accounts
| | | |
$
|
3,422
| | |
$
|
1,633
| | |
110
|
%
| |
|
Prepaid debit card income
| | | | |
3,506
| | | |
2,440
| | |
44
|
%
| |
|
Other service charges and fees
| | | | |
3,076
| | | |
939
| | |
228
|
%
| |
|
Losses on call of securities
| | | |
|
(37
|
)
| |
|
-
| | |
NM
| | |
|
Total non-interest income
| | | |
$
|
9,967
|
| |
$
|
5,012
| | |
99
|
%
| |
| | | | | | | | | | | | | |
|
Non-interest income decreased by $200,000 to $2.0 million in the third
quarter of 2018 as compared to the third quarter of 2017, primarily due
to decreases of $143,000 in service charges on deposits and $284,000 in
other charges and fees, offset by an increase in debit card income of
$233,000. The decrease in service charges on deposits was primarily due
to a decline of $130,000 in wire fees related to transactions by digital
currency customers. The decrease in other service charges and fees was
due to the receipt in 2017 of a $100,000 recovery of a charge-off
related to a deposit customer.
For the nine months ended September 30, 2018, non-interest income
increased by $5.0 million from the same period in 2017. This increase
was primarily due to increases of $1.8 million in service charges on
money market accounts, $1.1 million in prepaid debit card income and
$2.1 million in other service charges and fees when compared to the same
period in 2017. The increase in service charges on money market accounts
was due primarily to an increase in the number and balance of these
deposits. The increase in the prepaid debit card income is a reflection
of the growth in the debit card business and a termination fee of
$500,000 received in 2018 for a discontinued relationship.
The increase in other service charges and fees for the nine months ended
September 30, 2018 is primarily due to an increase of $2.0 million in
foreign currency conversion fees related to our customers in the digital
currency industry. Foreign currency conversion fees were at an elevated
level during the fourth quarter of 2017 and the first quarter of 2018,
as customers, particularly those in the digital currency business, were
transferring funds from their global corporate accounts back into their
U.S. dollar accounts with the Bank.
|
|
|
| |
| |
| | |
Non-interest Expense | | | | | | | | | |
| (dollars in thousands) | | | |
Three months ended September 30,
| |
| | |
2018
|
|
2017
|
|
Change
| |
|
Compensation and benefits
| | | |
$
|
6,253
| |
$
|
4,847
| |
29
|
%
| |
|
Bank premises and equipment
| | | | |
1,273
| | |
1,075
| |
18
|
%
| |
|
Insurance expense
| | | | |
104
| | |
60
| |
73
|
%
| |
|
Professional fees
| | | | |
587
| | |
951
| |
-38
|
%
| |
|
Data processing fees
| | | | |
847
| | |
437
| |
94
|
%
| |
|
Other expenses
| | | |
|
1,291
|
|
|
1,220
| |
6
|
%
| |
|
Total non-interest expense
| | | |
$
|
10,355
|
|
$
|
8,590
| |
21
|
%
| |
| | | | | | | | |
|
| | | | | | | | |
|
| | | |
Nine months ended September 30,
| |
| | |
2018
|
|
2017
|
|
Change
| |
|
Compensation and benefits
| | | |
$
|
18,696
| |
$
|
13,688
| |
37
|
%
| |
|
Bank premises and equipment
| | | | |
3,739
| | |
3,185
| |
17
|
%
| |
|
Insurance expense
| | | | |
253
| | |
204
| |
24
|
%
| |
|
Professional fees
| | | | |
2,207
| | |
1,800
| |
23
|
%
| |
|
Data processing fees
| | | | |
2,961
| | |
987
| |
200
|
%
| |
|
Other expenses
| | | |
|
4,012
|
|
|
3,102
| |
29
|
%
| |
|
Total non-interest expense
| | | |
$
|
31,868
|
|
$
|
22,966
| |
39
|
%
| |
| | | | | | | | | | | |
|
Non-interest expense increased $1.8 million to $10.4 million during the
third quarter of 2018 as compared to $8.6 million for the third quarter
of 2017. Compensation and benefits increased $1.5 million to $6.3
million for the third quarter of 2018 as compared to $4.8 million for
the third quarter of 2017. This increase was due primarily to an
increase of 16 full-time equivalent employees for the third quarter of
2018 as compared to the third quarter of 2017. Data processing fees
increased $410,000 to $847,000 for the third quarter of 2018 as compared
to the third quarter of 2017, primarily due to costs to support our
balance sheet growth.
For the nine months ended September 30, 2018, non-interest expense
increased $8.9 million to $31.9 million as compared to the same period
in 2017. Compensation and benefits increased $5.0 million to $18.7
million for the nine months ended September 30, 2018 as compared to
$13.7 million for the same period in 2017. For those same periods, data
processing fees increased $2.0 million to $3.0 million due primarily to
costs related to wire transfer activity as well as costs to support our
balance sheet growth.
Balance Sheet
The Company had total assets of $1.93 billion at September 30, 2018,
compared with $1.76 billion on December 31, 2017. Loans, net of deferred
fees and unamortized costs increased to $1.7 billion at September 30,
2018 as compared to $1.4 billion at December 31, 2017. For the three and
nine months ended September 30, 2018, the Bank originated loans of
$146.9 million and $528.2 million, respectively, as compared to $137.3
million and $417.6 million for the same periods in 2017.
Total deposits increased $134.3 million, or 9.6%, to $1.5 billion at
September 30, 2018 as compared to $1.4 billion at December 31, 2017.
This was due to an increase of $169.4 million in interest-bearing demand
deposits partially offset by a decrease of $35.1 million in
non-interest-bearing deposits.
Total stockholders’ equity was $257.3 million on September 30, 2018
compared to $236.9 million at December 31, 2017. The Company completed
an Initial Public Offering (IPO) in November 2017 resulting in 8,196,310
shares outstanding at December 31, 2017. Total proceeds from the IPO,
net of issuance costs, were $114.8 million. There were 8,207,234 shares
outstanding at September 30, 2018.
|
|
|
| |
| |
| |
| |
| | |
Regulatory Capital Ratios
| | | |
|
|
|
|
|
|
|
|
| |
Capital Ratios | | | | Sept. 30, 2018 |
| June 30, 2018 |
| Mar. 31, 2018 |
| Dec. 31, 2017 |
| Sept. 30, 2017 | |
|
Tier 1 Leverage:
| | | | | | | | | | | | | |
| Metropolitan Bank Holding Corp. | | | |
13.8
|
%
| |
13.5
|
%
| |
13.7
|
%
| |
13.7
|
%
| |
8.0
|
%
| |
| Metropolitan Commercial Bank | | | |
14.8
| | |
14.5
| | |
14.7
| | |
14.7
| | |
9.3
| | |
| | | | | | | | | | | | |
|
|
Common Equity Tier 1 Risk-Based:
| | | | | | | | | | | | | |
| Metropolitan Bank Holding Corp. | | | |
13.9
| | |
14.3
| | |
14.9
| | |
15.3
| | |
7.4
| | |
| Metropolitan Commercial Bank | | | |
16.5
| | |
17.0
| | |
17.7
| | |
18.4
| | |
10.8
| | |
| | | | | | | | | | | | |
|
|
Tier 1 Risk-Based:
| | | | | | | | | | | | | |
| Metropolitan Bank Holding Corp. | | | |
15.4
| | |
15.8
| | |
16.5
| | |
17.1
| | |
9.2
| | |
| Metropolitan Commercial Bank | | | |
16.5
| | |
17.0
| | |
17.7
| | |
18.4
| | |
10.8
| | |
| | | | | | | | | | | | |
|
|
Total Risk-Based:
| | | | | | | | | | | | | |
| Metropolitan Bank Holding Corp. | | | |
17.9
| | |
18.4
| | |
19.2
| | |
19.9
| | |
12.0
| | |
| Metropolitan Commercial Bank | | | |
17.6
| | |
18.1
| | |
18.8
| | |
19.4
| | |
11.9
| | |
| | | | | | | | | | | | | | | | | |
|
Metropolitan Commercial Bank meets all the requirements to be considered
“Well-Capitalized” under applicable regulatory guidelines. At September
30, 2018, total Commercial Real Estate Loans (CRE) were 291.8% of
risk-based capital, compared to 267.7% at December 31, 2017.
About Metropolitan Bank Holding Corporation
Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for
Metropolitan Commercial Bank. The Bank provides a broad range of
business, commercial and personal banking products and services to small
and middle-market businesses, public entities and affluent individuals
in the New York metropolitan area. Founded in 1999, the Bank is
headquartered in New York City and operates six locations in Manhattan,
Brooklyn and Great Neck, Long Island. The Bank is also an active issuer
of debit cards for third-party debit card programs. Metropolitan
Commercial Bank is a New York State chartered commercial bank, an FDIC
member and an equal opportunity lender. For more information, please
visit www.mcbankny.com.
Forward Looking Statement Disclaimer
This release contains certain “forward-looking statements” about the
Company which, to the extent applicable, are intended to be covered by
the safe harbor for forward-looking statements provided under Federal
securities laws and, regardless of such coverage, you are cautioned
about. Examples of forward-looking statements include but are not
limited to the Company’s financial condition and capital ratios, results
of operations and the Company’s outlook and business. Forward-looking
statements are not historical facts. Such statements may be identified
by the use of such words as “may”, “believe”, “expect”, “anticipate”,
“plan”, “continue”, or similar terminology. These statements relate to
future events or our future financial performance and involve risks and
uncertainties that may cause our actual results, levels of activity,
performance or achievements to differ materially from those expressed or
implied by these forward-looking statements. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we caution you not to place undue reliance on these
forward-looking statements. Factors which may cause our forward-looking
statements to be materially inaccurate include, but are not limited to
those discussed under the heading “Risk Factors” in our Annual Report on
Form 10-K, as well as an unexpected deterioration in our loan portfolio,
unexpected increases in our expenses, greater than anticipated growth
and our ability to manage such growth, unanticipated regulatory action,
unexpected changes in interest rates, an unanticipated decrease in
deposits, an unanticipated loss of key personnel, an unanticipated loss
of existing customers, competition from other institutions resulting in
unanticipated changes in our loan or deposit rates, unanticipated
increases in Federal Deposit Insurance Corporation costs and
unanticipated adverse changes in our customers’ economic conditions or
economic conditions in our local area in general.
Forward-looking statements speak only as of the date of this release. We
do not undertake any obligation to update or revise any forward-looking
statement, whether the result of new information, future events or
otherwise.
Consolidated Balance Sheet
|
|
|
|
|
|
|
| |
(dollars in thousands)
| | | Sept. 30, 2018
(unaudited)
|
| December 31,
2017
|
|
Change
| |
Assets | | | |
| |
| | |
|
Cash and due from banks
| | |
$
|
6,165
| | |
$
|
6,790
| | |
-9
|
%
| |
|
Overnight deposits
| | |
|
148,260
|
|
|
|
254,441
|
| |
-42
|
%
| |
|
Total cash and cash equivalents
| | | |
154,425
| | | |
261,231
| | |
-41
|
%
| |
|
Investment securities available for sale
| | | |
27,490
| | | |
32,157
| | |
-15
|
%
| |
|
Investment securities held to maturity
| | |
|
4,757
|
|
|
|
5,428
|
| |
-12
|
%
| |
|
Total securities
| | | |
32,247
| | | |
37,585
| | |
-14
|
%
| |
|
Other investments
| | | |
16,645
| | | |
13,677
| | |
22
|
%
| |
|
Loans, net of deferred fees and unamortized costs
| | | |
1,698,929
| | | |
1,419,896
| | |
20
|
%
| |
|
Allowance for loan losses
| | |
|
(18,493
|
)
|
|
|
(14,887
|
)
| |
24
|
%
| |
|
Net loans
| | | |
1,680,436
| | | |
1,405,009
| | |
20
|
%
| |
|
Receivable from prepaid card programs, net
| | | |
14,297
| | | |
9,579
| | |
49
|
%
| |
|
Accrued interest receivable
| | | |
5,239
| | | |
4,421
| | |
19
|
%
| |
|
Premises and equipment, net
| | | |
6,918
| | | |
6,268
| | |
10
|
%
| |
|
Prepaid expenses and other assets
| | | |
7,813
| | | |
5,751
| | |
36
|
%
| |
| Goodwill | | | |
9,733
| | | |
9,733
| | |
-
| | |
|
Accounts receivable, net
| | |
|
2,961
|
|
|
|
6,601
|
| |
-55
|
%
| |
|
Total assets
| | |
$
|
1,930,714
|
|
|
$
|
1,759,855
|
| |
10
|
%
| |
| Liabilities and Stockholders' Equity | | | | | | | | |
|
Deposits:
| | | | | | | | |
|
Noninterest-bearing demand deposits
| | |
$
|
777,494
| | |
$
|
812,616
| | |
-4
|
%
| |
|
Interest-bearing deposits
| | |
|
761,177
|
|
|
|
591,739
|
| |
29
|
%
| |
|
Total deposits
| | | |
1,538,671
| | | |
1,404,355
| | |
10
|
%
| |
| Federal Home Loan Bank of New York advances
| | | |
60,000
| | | |
42,198
| | |
42
|
%
| |
|
Trust preferred securities
| | | |
20,620
| | | |
20,620
| | |
-
| | |
|
Subordinated debts, net of issuance cost
| | | |
24,531
| | | |
24,489
| | |
-
| | |
|
Accounts payable, accrued expenses and other liabilities
| | | |
14,894
| | | |
21,678
| | |
-31
|
%
| |
|
Accrued interest payable
| | | |
918
| | | |
749
| | |
23
|
%
| |
|
Prepaid debit cardholder balances
| | |
|
13,811
|
|
|
|
8,882
|
| |
55
|
%
| |
|
Total liabilities
| | | |
1,673,445
| | | |
1,522,971
| | |
10
|
%
| |
| | | | | | | |
|
|
Class B preferred stock
| | | |
3
| | | |
3
| | |
-
| | |
|
Common stock
| | | |
81
| | | |
81
| | |
-
| | |
|
Additional paid in capital
| | | |
212,759
| | | |
211,145
| | |
1
|
%
| |
|
Retained earnings
| | | |
45,129
| | | |
25,861
| | |
75
|
%
| |
|
Accumulated other comprehensive loss
| | |
|
(703
|
)
|
|
|
(206
|
)
| |
241
|
%
| |
|
Total stockholders’ equity
| | |
|
257,269
|
|
|
|
236,884
|
| |
9
|
%
| |
|
Total liabilities and stockholders’ equity
| | |
$
|
1,930,714
|
|
|
$
|
1,759,855
|
| |
10
|
%
| |
|
|
| |
| |
| |
|
| |
| |
| | |
| | | | | | | | | | | | | | |
|
Consolidated Statement of Income
(unaudited) | | | | | | | | | | | | | | | |
| (dollars in thousands) | | |
Quarter ended Sept. 30,
| |
Change
| | |
Nine months ended Sept. 30,
| |
Change
| |
| |
2018
|
|
|
2017
| | | |
2018
|
|
|
2017
| | |
|
Total interest income
| | |
$
|
21,907
| | |
$
|
16,428
| |
33
|
%
| | |
$
|
60,602
| | |
$
|
42,929
| |
41
|
%
| |
|
Total interest expense
| | |
|
3,556
|
|
|
|
2,437
| |
46
|
%
| | |
|
8,336
|
|
|
|
6,377
| |
31
|
%
| |
|
Net interest income
| | | |
18,351
| | | |
13,991
| |
31
|
%
| | | |
52,266
| | | |
36,552
| |
43
|
%
| |
|
Provision for loan losses
| | |
|
(453
|
)
|
|
|
1,200
| |
-138
|
%
| | |
|
2,294
|
|
|
|
3,560
| |
-36
|
%
| |
|
Net interest income after provision for loan losses
| | | |
18,804
| | | |
12,791
| |
47
|
%
| | | |
49,972
| | | |
32,992
| |
51
|
%
| |
| | | | | | | | | | | | | | |
|
|
Non-interest income:
| | | | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | | |
693
| | | |
836
| |
-17
|
%
| | | |
3,422
| | | |
1,633
| |
110
|
%
| |
|
Prepaid debit card income
| | | |
1,080
| | | |
847
| |
28
|
%
| | | |
3,506
| | | |
2,440
| |
44
|
%
| |
|
Other service charges and fees
| | | |
239
| | | |
523
| |
-54
|
%
| | | |
3,076
| | | |
939
| |
228
|
%
| |
|
Losses on call of securities
| | |
|
-
|
|
|
|
-
| |
NM
| | | |
|
(37
|
)
|
|
|
-
| |
NM
| | |
|
Total non-interest income
| | |
$
|
2,012
| | |
$
|
2,206
| |
-9
|
%
| | |
$
|
9,967
| | |
$
|
5,012
| |
99
|
%
| |
| | | | | | | | | | | | | | |
|
|
Non-interest expense:
| | | | | | | | | | | | | | | |
|
Compensation and benefits
| | | |
6,253
| | | |
4,847
| |
29
|
%
| | | |
18,696
| | | |
13,688
| |
37
|
%
| |
|
Bank premises and equipment
| | | |
1,273
| | | |
1,075
| |
18
|
%
| | | |
3,739
| | | |
3,185
| |
17
|
%
| |
|
Insurance expense
| | | |
104
| | | |
60
| |
73
|
%
| | | |
253
| | | |
204
| |
24
|
%
| |
|
Professional fees
| | | |
587
| | | |
951
| |
-38
|
%
| | | |
2,207
| | | |
1,800
| |
23
|
%
| |
|
Data processing fees
| | | |
847
| | | |
437
| |
94
|
%
| | | |
2,961
| | | |
987
| |
200
|
%
| |
|
Other expenses
| | |
|
1,291
|
|
|
|
1,220
| |
6
|
%
| | |
|
4,012
|
|
|
|
3,102
| |
29
|
%
| |
|
Total non-interest expense
| | | |
10,355
| | | |
8,590
| |
21
|
%
| | | |
31,868
| | | |
22,966
| |
39
|
%
| |
| | | | | | | | | | | | | | |
|
|
Net income before income tax expense
| | | |
10,461
| | | |
6,407
| |
63
|
%
| | | |
28,071
| | | |
15,038
| |
87
|
%
| |
|
Income tax expense
| | |
|
3,348
|
|
|
|
2,562
| |
31
|
%
| | |
|
8,803
|
|
|
|
5,994
| |
47
|
%
| |
|
Net income
| | |
$
|
7,113
|
|
|
$
|
3,845
| |
85
|
%
| | |
$
|
19,268
|
|
|
$
|
9,044
| |
113
|
%
| |
| | | | | | | | | | | | | | |
|
|
Earnings per common share:
| | | | | | | | | | | | | | | |
|
Basic earnings
| | | |
0.87
| | | |
0.83
| |
5
|
%
| | | |
2.35
| | | |
1.95
| |
21
|
%
| |
|
Diluted earnings
| | | |
0.85
| | | |
0.82
| |
4
|
%
| | | |
2.31
| | | |
1.94
| |
19
|
%
| |
|
|
|
|
| Financial Highlights, Five Quarter Trend (unaudited) | |
| (dollars in thousands, except per share data) |
|
|
| |
| | |
At or for the three months ended
| |
| | Sept. 30, 2018 |
| June 30, 2018 |
| Mar. 31, 2018 |
| Dec. 31, 2017 |
| Sept. 30, 2017 | |
Performance Measures | | | |
| |
| |
| |
| | |
|
Net income
| | | |
7,113
| | | |
5,865
| | | |
6,291
| | | |
3,326
| | | |
3,845
| | |
|
Net income available to common shareholders
| | | |
7,057
| | | |
5,816
| | | |
6,238
| | | |
3,143
| | | |
3,771
| | |
|
Per common share:
| | | | | | | | | | | | |
|
Basic earnings
| | |
$
|
0.87
| | |
$
|
0.72
| | |
$
|
0.77
| | |
$
|
0.50
| | |
$
|
0.83
| | |
|
Diluted earnings
| | |
$
|
0.85
| | |
$
|
0.70
| | |
$
|
0.75
| | |
$
|
0.49
| | |
$
|
0.82
| | |
|
Common shares outstanding:
| | | | | | | | | | | | |
|
Average - diluted
| | | |
8,292,385
| | | |
8,290,048
| | | |
8,275,243
| | | |
6,768,753
| | | |
4,576,925
| | |
|
Period end
| | | |
8,207,234
| | | |
8,205,234
| | | |
8,194,925
| | | |
8,196,310
| | | |
4,633,012
| | |
|
Return on (annualized):
| | | | | | | | | | | | |
|
Average total assets
| | | |
1.45
|
%
| | |
1.20
|
%
| | |
1.35
|
%
| | |
0.73
|
%
| | |
0.94
|
%
| |
|
Average common equity
| | | |
11.47
|
%
| | |
9.75
|
%
| | |
10.78
|
%
| | |
7.68
|
%
| | |
13.79
|
%
| |
|
Yield on average earning assets
| | | |
4.49
|
%
| | |
4.13
|
%
| | |
4.17
|
%
| | |
4.02
|
%
| | |
4.22
|
%
| |
|
Cost of interest-bearing liabilities
| | | |
1.69
|
%
| | |
1.46
|
%
| | |
1.31
|
%
| | |
1.25
|
%
| | |
1.26
|
%
| |
|
Net interest spread
| | | |
2.80
|
%
| | |
2.67
|
%
| | |
2.85
|
%
| | |
2.77
|
%
| | |
2.96
|
%
| |
|
Net interest margin
| | | |
3.76
|
%
| | |
3.59
|
%
| | |
3.68
|
%
| | |
3.51
|
%
| | |
3.59
|
%
| |
|
Net charge-offs as % of average loans (annualized)
| | | |
(0.36
|
)%
| | |
0.02
|
%
| | |
0.04
|
%
| | |
1.06
|
%
| | |
0.01
|
%
| |
|
Efficiency ratio
| | | |
50.85
|
%
| | |
51.26
|
%
| | |
51.48
|
%
| | |
44.82
|
%
| | |
53.03
|
%
| |
| | | | | | | | | | | |
|
Loan quality | | | | | | | | | | | | |
|
Non-performing assets:
| | | | | | | | | | | | |
|
Non-accrual loans:
| | | | | | | | | | | | |
|
Real estate
| | | | | | | | | | | | |
|
Commercial
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
787
| | |
$
|
841
| | |
|
One-to-four family
| | | |
-
| | | |
-
| | | |
-
| | | |
2,447
| | | |
2,466
| | |
|
Commercial and industrial
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
3,660
| | |
|
Consumer
| | |
|
79
|
|
|
|
192
|
|
|
|
85
|
|
|
|
155
|
|
|
|
125
|
| |
|
Total non-accrual loans
| | |
$
|
79
| | |
$
|
192
| | |
$
|
85
| | |
$
|
3,389
| | |
$
|
7,092
| | |
|
Accruing loans past due 90 days or more
| | |
|
328
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
| |
|
Total non-performing assets
| | |
$
|
407
|
|
|
$
|
192
|
|
|
$
|
85
|
|
|
|
3,389
|
|
|
$
|
7,092
|
| |
| | | | | | | | | | | |
|
|
Non-accrual loans to total loans
| | | |
0.00
|
%
| | |
0.01
|
%
| | |
0.01
|
%
| | |
0.24
|
%
| | |
0.51
|
%
| |
|
Non-performing loans to total loans
| | | |
0.02
|
%
| | |
0.01
|
%
| | |
0.01
|
%
| | |
0.24
|
%
| | |
0.51
|
%
| |
|
Allowance for loan losses to total loans
| | | |
1.09
|
%
| | |
1.09
|
%
| | |
1.07
|
%
| | |
1.05
|
%
| | |
1.09
|
%
| |
|
|
|
|
Consolidated Statement of Income, Five
Quarter Trend
(unaudited) | |
| (dollars in thousands) |
|
|
Three months ended
| |
| | Sept. 30, 2018 |
| June 30, 2018 |
| Mar. 31, 2018 |
| Dec. 31, 2017 |
| Sept. 30, 2017 | |
|
Total interest income
| | |
$
|
21,907
| |
|
$
|
19,998
| |
|
$
|
18,693
|
|
$
|
17,935
|
|
$
|
16,428
| |
|
Total interest expense
| | |
|
3,556
|
|
|
|
2,603
|
|
|
|
2,177
|
|
|
2,293
|
|
|
2,437
| |
|
Net interest income
| | | |
18,351
| | | |
17,395
| | | |
16,516
| | |
15,642
| | |
13,991
| |
|
Provision for loan losses
| | |
|
(453
|
)
|
|
|
1,270
|
|
|
|
1,477
|
|
|
3,499
|
|
|
1,200
| |
|
Net interest income after provision for loan losses
| | | |
18,804
| | | |
16,125
| | | |
15,039
| | |
12,143
| | |
12,791
| |
| | | | | | | | | | | |
|
|
Non-interest income:
| | | | | | | | | | | | |
|
Service charges on deposit accounts
| | | |
693
| | | |
821
| | | |
1,910
| | |
1,820
| | |
836
| |
|
Prepaid debit card income
| | | |
1,080
| | | |
1,519
| | | |
908
| | |
929
| | |
847
| |
|
Other service charges and fees
| | | |
239
| | | |
346
| | | |
2,494
| | |
3,429
| | |
523
| |
|
Losses on call of securities
| | |
|
-
|
|
|
|
(37
|
)
|
|
|
-
|
|
|
-
|
|
|
-
| |
|
Total non-interest income
| | |
$
|
2,012
| | |
$
|
2,649
| | |
$
|
5,312
| |
$
|
6,178
| |
$
|
2,206
| |
| | | | | | | | | | | |
|
|
Non-interest expense:
| | | | | | | | | | | | |
|
Compensation and benefits
| | |
$
|
6,253
| | |
$
|
6,126
| | |
$
|
6,317
| |
$
|
5,478
| |
$
|
4,847
| |
|
Bank premises and equipment
| | | |
1,273
| | | |
1,288
| | | |
1,180
| | |
1,200
| | |
1,075
| |
|
Insurance expense
| | | |
104
| | | |
73
| | | |
76
| | |
77
| | |
60
| |
|
Professional fees
| | | |
587
| | | |
866
| | | |
753
| | |
744
| | |
951
| |
|
Data processing fees
| | | |
847
| | | |
609
| | | |
1,506
| | |
605
| | |
437
| |
|
Other expenses
| | |
|
1,291
|
|
|
|
1,313
|
|
|
|
1,406
|
|
|
1,675
|
|
|
1,220
| |
|
Total non-interest expense
| | | |
10,355
| | | |
10,275
| | | |
11,238
| | |
9,779
| | |
8,590
| |
| | | | | | | | | | | |
|
|
Net income before income tax expense
| | | |
10,461
| | | |
8,499
| | | |
9,113
| | |
8,542
| | |
6,407
| |
|
Income tax expense
| | |
|
3,348
|
|
|
|
2,634
|
|
|
|
2,822
|
|
|
5,216
|
|
|
2,562
| |
|
Net Income
| | |
$
|
7,113
|
|
|
$
|
5,865
|
|
|
$
|
6,291
|
|
$
|
3,326
|
|
$
|
3,845
| |
| | | | | | | | | | | |
|
|
Earnings per common share:
| | | | | | | | | | | | |
|
Basic earnings
| | |
$
|
0.87
| | |
$
|
0.72
| | |
$
|
0.77
| |
$
|
0.50
| |
$
|
0.83
| |
|
Diluted earnings
| | |
$
|
0.85
| | |
$
|
0.70
| | |
$
|
0.75
| |
$
|
0.49
| |
$
|
0.82
| |
|
|
|
|
Consolidated Balance Sheet, Five Quarter
Trend
(unaudited) | |
| (dollars in thousands) |
|
| |
| Sept. 30, 2018 |
|
June. 30, 2018
|
| Mar. 31, 2018 |
| Dec. 31, 2017 |
| Sept. 30, 2017 | |
| Assets | | |
| |
| |
| |
| | |
|
Cash and due from banks
| |
$
|
6,165
| | |
$
|
10,148
| | |
$
|
7,063
| | |
$
|
6,790
| | |
$
|
8,902
| | |
|
Overnight deposits
| |
|
148,260
|
|
|
|
240,994
|
|
|
|
363,887
|
|
|
|
254,441
|
|
|
|
258,197
|
| |
|
Total cash and cash equivalents
| | |
154,425
| | | |
251,142
| | | |
370,950
| | | |
261,231
| | | |
267,099
| | |
|
Investment securities available for sale
| | |
27,490
| | | |
28,989
| | | |
30,276
| | | |
32,157
| | | |
33,922
| | |
|
Investment securities held to maturity
| |
|
4,757
|
|
|
|
4,985
|
|
|
|
5,212
|
|
|
|
5,428
|
|
|
|
5,681
|
| |
|
Total securities
| | |
32,247
| | | |
33,974
| | | |
35,488
| | | |
37,585
| | | |
39,603
| | |
|
Other investments
| | |
16,645
| | | |
16,770
| | | |
16,566
| | | |
13,677
| | | |
13,740
| | |
|
Loans, net of deferred fees and unamortized costs
| | |
1,698,929
| | | |
1,599,647
| | | |
1,526,166
| | | |
1,419,896
| | | |
1,380,829
| | |
|
Allowance for loan losses
| |
|
(18,493
|
)
|
|
|
(17,463
|
)
|
|
|
(16,260
|
)
|
|
|
(14,887
|
)
|
|
|
(15,075
|
)
| |
|
Net loans
| | |
1,680,436
| | | |
1,582,184
| | | |
1,509,906
| | | |
1,405,009
| | | |
1,365,754
| | |
|
Receivable from prepaid card programs, net
| | |
14,297
| | | |
7,589
| | | |
7,523
| | | |
9,579
| | | |
6,977
| | |
|
Accrued interest receivable
| | |
5,239
| | | |
4,449
| | | |
4,366
| | | |
4,421
| | | |
3,903
| | |
|
Premises and equipment, net
| | |
6,918
| | | |
7,012
| | | |
6,688
| | | |
6,268
| | | |
6,010
| | |
|
Prepaid expenses and other assets
| | |
7,813
| | | |
7,715
| | | |
5,993
| | | |
5,751
| | | |
7,013
| | |
| Goodwill | | |
9,733
| | | |
9,733
| | | |
9,733
| | | |
9,733
| | | |
9,733
| | |
|
Accounts receivable, net
| |
|
2,961
|
|
|
|
3,927
|
|
|
|
1,673
|
|
|
|
6,601
|
|
|
|
3,825
|
| |
|
Total assets
| |
$
|
1,930,714
|
|
|
$
|
1,924,495
|
|
|
$
|
1,968,886
|
|
|
$
|
1,759,855
|
|
|
$
|
1,723,657
|
| |
| Liabilities and Stockholders' Equity | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | |
|
Noninterest-bearing demand deposits
| |
$
|
777,494
| | |
$
|
878,703
| | |
$
|
1,012,250
| | |
$
|
812,616
| | |
$
|
827,220
| | |
|
Interest-bearing deposits
| |
|
761,177
|
|
|
|
661,779
|
|
|
|
604,866
|
|
|
|
591,739
|
|
|
|
661,423
|
| |
|
Total deposits
| | |
1,538,671
| | | |
1,540,482
| | | |
1,617,116
| | | |
1,404,355
| | | |
1,488,643
| | |
| Federal Home Loan Bank of New York advances
| | |
60,000
| | | |
63,000
| | | |
33,000
| | | |
42,198
| | | |
43,750
| | |
|
Trust preferred securities
| | |
20,620
| | | |
20,620
| | | |
20,620
| | | |
20,620
| | | |
20,620
| | |
|
Subordinated debts, net of issuance cost
| | |
24,531
| | | |
24,517
| | | |
24,503
| | | |
24,489
| | | |
24,468
| | |
|
Accounts payable, accrued expenses and other liabilities
| | |
14,894
| | | |
18,111
| | | |
23,338
| | | |
21,678
| | | |
20,411
| | |
|
Accrued interest payable
| | |
918
| | | |
1,019
| | | |
454
| | | |
749
| | | |
547
| | |
|
Prepaid debit cardholder balances
| |
|
13,811
|
|
|
|
7,162
|
|
|
|
6,814
|
|
|
|
8,882
|
|
|
|
6,259
|
| |
|
Total liabilities
| | |
1,673,445
| | | |
1,674,911
| | | |
1,725,845
| | | |
1,522,971
| | | |
1,604,698
| | |
| | | | | | | | | | |
|
|
Stockholders' Equity:
| | | | | | | | | | | |
|
Class B preferred stock
| | |
3
| | | |
3
| | | |
3
| | | |
3
| | | |
3
| | |
|
Common stock
| | |
81
| | | |
81
| | | |
81
| | | |
81
| | | |
45
| | |
|
Additional paid in capital
| | |
212,759
| | | |
212,100
| | | |
211,333
| | | |
211,145
| | | |
96,422
| | |
|
Retained earnings
| | |
45,129
| | | |
38,017
| | | |
32,152
| | | |
25,861
| | | |
22,536
| | |
|
Accumulated other comprehensive loss
| |
|
(703
|
)
|
|
|
(617
|
)
|
|
|
(528
|
)
|
|
|
(206
|
)
|
|
|
(47
|
)
| |
|
Total stockholders’ equity
| |
|
257,269
|
|
|
|
249,584
|
|
|
|
243,041
|
|
|
|
236,884
|
|
|
|
118,959
|
| |
|
Total liabilities and stockholders’ equity
| |
$
|
1,930,714
|
|
|
$
|
1,924,495
|
|
|
$
|
1,968,886
|
|
|
$
|
1,759,855
|
|
|
$
|
1,723,657
|
| |
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
Reconciliation of Quarterly GAAP to Non-GAAP
Measures, Five Quarter Trend
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 accompanying tables.
|
| |
| |
| |
| |
| | |
| Balance sheet data | |
|
|
|
|
|
|
|
|
| |
| Sept. 30, 2018 |
| June 30, 2018 |
| Mar. 31, 2018 |
| Dec. 31, 2017 |
| Sept. 30, 2017 | |
|
Average assets
| |
$
|
1,960,318
| |
$
|
1,946,910
| |
$
|
1,869,251
| |
$
|
1,813,785
| |
$
|
1,633,543
| |
|
Less: average intangible assets
| |
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
| |
|
Average tangible assets
| |
$
|
1,950,585
| |
$
|
1,937,177
| |
$
|
1,859,518
| |
$
|
1,804,052
| |
$
|
1,623,810
| |
| | | | | | | | | | |
|
|
Average equity
| |
$
|
253,516
| |
$
|
246,109
| |
$
|
239,017
| |
$
|
178,747
| |
$
|
117,055
| |
|
Less: Average preferred equity
| |
|
5,502
|
|
|
5,502
|
|
|
5,502
|
|
|
5,502
|
|
|
5,502
| |
|
Average common equity
| |
$
|
248,014
| |
$
|
240,607
| |
$
|
233,515
| |
$
|
173,245
| |
$
|
111,553
| |
|
Less: average intangible assets
| |
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
| |
|
Average tangible common equity
| |
$
|
238,281
| |
$
|
230,874
| |
$
|
223,782
| |
$
|
163,512
| |
$
|
101,820
| |
| | | | | | | | | | |
|
|
Total assets
| |
$
|
1,930,714
| |
$
|
1,924,495
| |
$
|
1,968,886
| |
$
|
1,759,855
| |
$
|
1,723,657
| |
|
Less: intangible assets
| |
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
| |
|
Tangible assets
| |
$
|
1,920,981
| |
$
|
1,914,762
| |
$
|
1,959,153
| |
$
|
1,750,122
| |
$
|
1,713,924
| |
| | | | | | | | | | |
|
|
Common equity
| |
$
|
251,767
| |
$
|
244,081
| |
$
|
237,537
| |
$
|
231,381
| |
$
|
113,457
| |
|
Less: intangible assets
| |
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
|
|
|
9,733
| |
|
Tangible common equity (book value)
| |
$
|
242,034
| |
$
|
234,348
| |
$
|
227,804
| |
$
|
221,648
| |
$
|
103,724
| |
| | | | | | | | | | |
|
|
Common shares outstanding
| | |
8,207,234
| | |
8,205,234
| | |
8,194,925
| | |
8,196,310
| | |
4,633,012
| |
| | | | | | | | | | |
|
|
Book value per share (GAAP)
| |
$
|
30.68
| |
$
|
29.75
| |
$
|
29.23
| |
$
|
28.23
| |
$
|
24.49
| |
|
Tangible book value per common share (non-GAAP)*
| | |
29.49
| | |
28.56
| | |
28.03
| | |
27.04
| | |
22.39
| |
| | | | | | | | | | | | | | | |
|
* Tangible book value divided by common shares outstanding at
period-end. | |
|
|
Income Data | |
|
|
|
| |
|
| | |
|
|
|
|
|
Quarter Ended
September 30, 2018 |
|
|
Nine Months Ended
September 30, 2018 | |
| | | | | | | |
|
|
Net income, as reported (GAAP)
| | | |
$
|
7,113
| | | |
$
|
19,268
| | |
|
Loan loss recovery
| | | | |
(1,537
|
)
| | | |
(1,537
|
)
| |
|
Legal fees
| | | | |
41
| | | | |
254
| | |
|
Tax effect
| | | |
|
479
| | | | |
402
|
| |
|
Net income excluding the loan loss recovery
| | | | |
6,096
| | | | |
18,387
| | |
|
Income on participating securities
| | | |
|
(56
|
)
|
|
|
|
(152
|
)
| |
|
Income available to common stockholders
| | | | |
6,040
| | | | |
18,235
| | |
|
Diluted shares
| | | |
|
8,292,385
|
|
|
|
|
8,285,374
|
| |
|
Diluted earnings per share excluding the loan loss recovery
|
|
|
|
$
|
0.73
|
|
|
|
$
|
2.20
| | |
| | | | | | | | | | | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181025006032/en/
Metropolitan Bank Holding Corp.
Investor Relations Department,
212-365-6721
IR@MetropolitanBankNY.com
or
Anthony
Fabiano, 212-365-6733
Source: Metropolitan Bank Holding Corp.