Q2 2024 Metropolitan Bank Holding Corp Earnings Call Transcript
Key Points
- Metropolitan Bank Holding Corp (MCB) reported a 30 basis points margin expansion in the second quarter, marking the third consecutive quarter of margin growth.
- Earnings per share for the second quarter were $1.50, supported by strong growth in net interest income and excellent credit performance.
- Asset quality remains strong with no broad-based negative trends identified in any loan product segment, geography, or sector.
- The company successfully managed a $120 million growth in the loan book despite over $240 million in payoffs and paydowns.
- The digital transformation project and the wind-down of the GPG business are proceeding on time and on budget.
- Deposits declined by approximately $16 million, primarily due to the wind-down of $250 million in GPG deposits.
- Non-interest expenses totaled $42.3 million in the second quarter, with regulatory remediation costs coming in approximately $2 million higher than expected.
- The company expects to maintain a conservative approach to loan growth, forecasting $500 million to $600 million for the full year, which is lower than previous guidance.
- The effective tax rate for the quarter was approximately 30%, with an expected increase to 31%-32% going forward.
- There is a potential need for wholesale borrowing to replace the outflow of GPG deposits, which could create a headwind for the company.
Welcome to Metropolitan Commercial Bank's second-quarter 2024 earnings call. Hosting the call today from Metropolitan Commercial Bank are Mark DeFazio, President and Chief Executive Officer, and Dan Daugherty, Executive Vice President and Chief Financial Officer. Today's call is being recorded.
(Operator Instructions)
During today's presentation, references will be made to the company's earnings release and investor presentation, copies of which are available at mcbankny.com. Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to the company's notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release and investor presentation.
It is now my pleasure to turn the floor over to Mark DeFazio, President and Chief Executive Officer. You may begin.
Thank you, and good morning, and thank you
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