On July 18, 2024, Metropolitan Bank Holding Corp (MCB, Financial) released its 8-K filing for the second quarter of 2024. Metropolitan Bank Holding Corp is a bank holding company that provides a broad range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area.
Financial Highlights
Metropolitan Bank Holding Corp (MCB, Financial) reported net income of $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024. This represents an increase from $16.2 million, or $1.46 per diluted common share, in the first quarter of 2024, and $15.6 million, or $1.37 per diluted common share, in the second quarter of 2023.
Loans at June 30, 2024, were $5.8 billion, an increase of $119.7 million from March 31, 2024, and $689.3 million from June 30, 2023. Total deposits at June 30, 2024, were $6.2 billion, a decrease of $67.9 million from March 31, 2024, but an increase of $881.1 million from June 30, 2023.
Income Statement Overview
Net interest income for the second quarter of 2024 was $61.5 million, compared to $59.7 million for the prior quarter and $53.8 million for the same period last year. The net interest margin expanded by 4 basis points to 3.44% from 3.40% in the first quarter of 2024.
Non-interest income was $6.1 million for the second quarter of 2024, a decrease from $7.0 million in the prior quarter and $7.9 million in the same period last year. Non-interest expense was $42.3 million, inclusive of $5.5 million of expenses related to the Global Payments Group (GPG) wind down, regulatory remediation, and the core banking digital transformation.
Balance Sheet and Asset Quality
Total cash and cash equivalents were $244.7 million at June 30, 2024, a decrease of $289.7 million from March 31, 2024, but an increase of $42.9 million from June 30, 2023. The allowance for credit losses was $60.0 million at June 30, 2024, an increase of $1.5 million from March 31, 2024.
Non-performing loans declined to 0.53% at June 30, 2024, compared to 0.91% at March 31, 2024, indicating stable asset quality. Liquidity remains strong, with cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaling $3.4 billion.
Key Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $16.8 million | $16.2 million | $15.6 million |
| Diluted EPS | $1.50 | $1.46 | $1.37 |
| Net Interest Margin | 3.44% | 3.40% | 3.44% |
| Total Loans | $5.8 billion | $5.7 billion | $5.1 billion |
| Total Deposits | $6.2 billion | $6.3 billion | $5.3 billion |
Commentary
"Our strong second quarter financial results were underscored by an increase in the net interest margin and stable asset quality despite the persistence of a challenging operating environment. At the same time, we are progressing well on two major strategic initiatives - our digital transformation project and the exit from BaaS activities. We remain confident that our strategy and execution this year will position MCB for continued success." - Mark DeFazio, President and Chief Executive Officer
Analysis
Metropolitan Bank Holding Corp (MCB, Financial) has demonstrated resilience and strategic foresight in navigating a challenging operating environment. The increase in net interest margin and stable asset quality are positive indicators of the company's financial health. The ongoing digital transformation and exit from BaaS activities are expected to streamline operations and enhance future profitability.
Despite a slight decrease in deposits from the previous quarter, the overall increase from the same period last year reflects strong customer confidence. The company's robust liquidity position and well-capitalized status under regulatory guidelines further underscore its financial stability.
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Explore the complete 8-K earnings release (here) from Metropolitan Bank Holding Corp for further details.
