Metropolitan Bank Holding Corp Reports Net Income of $6.3 Million for Quarter Ended March 31, 2018

Results Driven By Significant Loan Growth, Widening Margins And Strong Asset Quality

NEW YORK--()--Metropolitan Bank Holding Corp. (NYSE:MCB), the holding company (the “Company”) for Metropolitan Commercial Bank (the “Bank”), today reported net income of $6.3 million, or $0.75 per diluted common share, for the first quarter of 2018 (Q1 2018) compared to $3.3 million, or $0.49 per diluted common share, for the fourth quarter of 2017 (Q4 2017), and $2.5 million, or $0.55 per diluted common share, for the first quarter of 2017 (Q1 2017).

The Company had solid growth in loans and deposits during the quarter. Loans increased to $1.5 billion at March 31, 2018, an increase of $105 million, or 7.5%, from December 31, 2017, and an increase of $428 million, or 39.0% from March 31, 2017. Total deposits increased $213 million, or 15%, to $1.6 billion during Q1 2018, reflecting increases in non-interest bearing demand, money market and savings deposits. Deposits increased $600 million as compared to Q1 2017. Asset quality remained strong and continued to improve. Non-accrual loans were $85,000, or 0.01% of total loans, at March 31, 2018, versus $3.4 million, or 0.24% of total loans, at December 31, 2017.

Mark DeFazio, the Company’s CEO and President, commented, “The strong momentum we experienced in 2017 continues and we are off to a good start for 2018. We were pleased with our solid asset quality and the growth we are experiencing in many of our key metrics such as revenue, core funding, loans and net interest margin. We improved our return on assets and return on equity in the quarter and we expect these metrics to maintain their upward trajectory.”

We continue to focus on key strategic growth drivers such as core deposits, loans, and the cash management business, and on the enterprise-wide risk management processes required to sustain our positive performance. Our diversification on both sides of the balance sheet positions us well to generate solid yields and differentiates us from our peers while balancing risk appropriately,” said Mr. DeFazio.

The Bank’s deposit gathering initiatives are diversified and include a number of verticals leading to a solid core deposit base. Along with lending and non-borrowing retail relationships, the Bank also obtains deposits through its debit card issuing business and relationships with digital currency related businesses, which maintain non-interest-bearing corporate and settlement accounts with the Bank. As a policy, these settlement account balances are not incorporated into the Bank’s funding strategies. The Bank’s policy is to keep corporate deposit accounts related to digital currencies that are used for funding to less than 10% of its total deposit base.

   

Earnings Highlights

Three months ended   Change Mar 31, 2018 vs.

Mar 31, 2018

 

Dec 31, 2017

 

Mar 31, 2017

  Dec 31, 2017   Mar 31, 2017
Net income

$

6,291   $ 3,326   $ 2,548 89%   147%
Diluted earnings per share

$

0.75

$

0.49

$

0.55 53% 37%
Annualized return on average assets 1.35% 0.81% 0.83%

Annualized return on average tangible common equity*

11.18% 10.67% 8.13%
*Average tangible common equity = average common equity less goodwill
 

Results of Operations

Net income was $6.3 million, or $0.75 diluted earnings per common share, in Q1 2018 compared to $3.3 million, or $0.49 diluted earnings per common share, in Q4 2017. Q4 2017 net income included a provision expense related to the Bank’s taxi medallion portfolio of $2.2 million after tax and a net tax expense of $1.6 million due to the recently enacted Tax Cuts and Jobs Act. Excluding these items, adjusted (non-GAAP) net income and diluted EPS in Q4 2017 were $7.1 million and $1.04, respectively. Compared to Q1 2017, net income increased by $3.7 million and diluted EPS increased by $0.20 or 36%.

  • Return on average assets was 1.35%, an improvement of 54 basis points compared to Q4 2017 and 52 basis points compared to Q1 2017.
  • The Company’s efficiency ratio in the first quarter of 2018 improved to 51.5% from 60.2% in the first quarter of 2017.
 

Net Interest Income and Margin

   
(dollars in thousands)

Three months ended

 

Change Mar 31, 2018 vs.

Mar 31, 2018   Dec 31, 2017   Mar 31, 2017   Dec 31, 2017   Mar 31, 2017
Average earning assets $ 1,818,524   $ 1,785,784   $ 1,238,309 2%   47%
Net interest income $ 16,451 $ 15,571 $ 10,781 6% 53%
Net interest margin 3.67% 3.49% 3.60%
 

Net Interest Margin Analysis

  Three months ended

(dollars in thousands)

Mar 31, 2018   Dec 31, 2017   Mar 31, 2017

Average
Outstanding
Balance

  Interest  

Yield/Rate

 

Average
Outstanding
Balance

 

Interest

  Yield/Rate  

Average
Outstanding
Balance

  Interest   Yield/Rate
Interest-earning assets:                
Loans $ 1,476,955 $ 17,147 4.71% $ 1,397,700 $ 16,304 4.63% $ 1,065,820 $ 11,867 4.52%
Available-for-sale securities 31,833 166 2.09% 33,322 172 2.06% 43,144 222 2.06%
Held-to-maturity securities 5,318 27 2.09% 5,559 28 2.01% 6,357 41 2.60%
Other interest-earning assets   304,418   1,288 1.72%   349,203   1,360 1.55%   122,988   311 1.16%
Total interest-earning assets 1,818,524 18,628 4.15% 1,785,784 17,864 3.97% 1,238,309 12,441 4.09%
Non-interest-earning assets 66,311 43,323 9,667
Allowance for loan and lease losses   (15,584)   (15,322)   (11,940)
Total assets $ 1,869,251 $ 1,813,785 $ 1,236,036
Loans/Total Interest-Earning Assets 81.22% 78.27% 86.07%
Interest-bearing liabilities:
Money market and savings accounts $ 514,455 $ 1,190 0.94% $ 559,339 $ 1,277 0.91% $ 533,228 $ 1,004 0.75%
Certificates of deposit   72,822   249 1.39%   82,020   280 1.35%   84,178   258 1.23%
Total interest-bearing deposits 587,277 1,439 0.99% 641,359 1,557 0.96% 617,406 1,262 0.83%
Borrowed funds   84,317   738 3.53%   88,488   736 3.30%   102,609   398 1.58%
Total interest-bearing liabilities 671,594 2,177 1.31% 729,847 2,293 1.25% 720,015 1,660 0.93%
Non-interest-bearing deposits   935,417   868,117   382,290
Other non-interest-bearing liabilities   23,223   37,074   22,892
Total liabilities   1,630,234   1,635,038   1,125,197
Equity   239,017   178,747   110,839
Total liabilities and equity $ 1,869,251 $ 1,813,785 $ 1,236,036
 
Net interest income $ 16,451 $ 15,571 $ 10,781
Net interest rate spread 2.84% 2.72% 3.16%
Net interest-earning assets $ 1,146,930 $ 1,055,937 $ 518,294
Net interest margin 3.67% 3.49% 3.60%
 

Net interest margin improved by 7 basis points from Q1 2017. The improvement was mainly the result of a $580 million increase in average interest earning assets, led by $411 million higher average loan balances from increased activity in the commercial and industrial, multi-family and commercial real estate loan portfolios. In addition to increased average loan volume, net interest margin benefited from a 18 basis point increase in average loan yields.

  • Net interest margin also benefited from the effect of higher average non-interest-bearing deposits in Q1 2018, which replaced higher priced interest-bearing deposits compared to Q1 2017.
  • When compared to Q4 2017, net interest income improved $880 thousand, or 6.0%, largely due to the effect of a $32.7 million increase in interest-earning assets, composed of $79.3 million of loan growth, partially offset by a $44.8 million reduction in comparatively lower yielding other interest-earning assets. Yields on loans were 8 basis points higher than Q4 2017, driven by a $184 million increase in average commercial and industrial loan balances.
  • On a net basis, average deposit balances increased $13 million from 4Q 2017. The shift in mix toward higher non-interest-bearing balances of $935 million in Q1 2018, compared to $868 million in Q4 2017, moderated the impact of recent Federal Reserve rate increases on the Bank’s cost of funds.
             

Asset Quality

(dollars in thousands)
At end of quarter

Three months ended

   

Change Mar 31, 2018 vs.

Mar 31, 2018     Dec 31, 2017     Mar 31, 2017     Dec 31, 2017     Mar 31, 2017
Non-accrual loans:            
Real Estate:
Commercial $ -

$

787

$

858

-100% -100%
One-to-four family - 2,447 - -100% 0%
Commercial and industrial - - 3,660 0% -100%
Consumer 85 155 - -45% 0%
Total non-performing loans $ 85

$

3,389

$

4,518

-97% -98%
Accruing loans past due 90 days or more $ -

$

-

$

-

0% 0%
Non-accrual loans as % of loans outstanding 0.01% 0.24%

 

0.42%
 
Allowance for loan losses $ 16,260

$

14,887

$

12,236

9% 33%
Allowance for loan losses as % of loans outstanding 1.07% 1.05% 1.11%
 
For the period
Provision for loan losses $ 1,477

$

3,499

$

570

-58% 159%
Net charge-offs $ 104

$

3,687

$

149

-97% -30%
Net charge-offs as % of loans outstanding 0.01% 0.26% 0.01%
 

Provision for loan losses was $1.5 million, a decrease of $2.0 million from Q4 2017 and an increase of $0.9 million over Q1 2017. Other than the effect of the Q4 2017 $3.7 million charge-off related to taxi medallion loans, the loan loss provisions have primarily been driven by loan growth.

  • The allowance for loan losses as a percentage of loans outstanding was 1.07% at March 31, 2018, versus 1.05% at December 31, 2017 and 1.11% at March 31, 2017.
  • Non-performing loans totaled $85,000 at March 31, 2018, down from $3.4 million at December 31, 2017 and $4.5 million at March 31, 2017.
  • On March 31, 2018 total Commercial Real Estate (CRE) was 2.88% of risk-based capital, compared to 2.73% on December 31, 2017 and 3.79% on March 31, 2017.

Non-Interest Income and Expense

         

Non-Interest Income

 
(dollars in thousands)

Three months ended

 

Change Mar 31, 2018 vs.

Mar 31, 2018   Dec 31, 2017   Mar 31, 2017   Dec 31, 2017   Mar 31, 2017
Service charges on deposit accounts $ 1,910 $ 1,820 $ 291 5% 556%
Other service charges and fees 2,494 3,429 166 -27% 1400%
Loan prepayment penalties 65 71 - -8% 0%
Debit card income   908     929     788   -2%   15%
Total non-interest income $ 5,377   $ 6,249   $ 1,245   -14%   332%
 

Non-interest income declined $0.9 million from Q4 2017, driven by lower cash management fees. The increase of $4.1 million in non-interest income over Q1 2017 was the result of the growth of the Company’s cash management business.

 

     

Non-Interest Expense

 

(dollars in thousands)

Three months ended

 

Change Mar 31, 2018 vs.

Mar 31, 2018   Dec 31, 2017   Mar 31, 2017   Dec 31, 2017   Mar 31, 2017
Compensation and benefits $ 6,317   $ 5,478   $ 4,577 15% 38%
Bank premises and equipment 1,180 1,200 1,073 -2% 10%
Director fees 361 229 174 57% 107%
Insurance expense 76 77 79 -1% -3%
Professional fees 778 771 410 1% 90%
Data processing fees 1,368 542 251 152% 445%
Other expenses   1,158     1,482     670   -22%   73%
Total non-interest expense $ 11,238   $ 9,779   $ 7,234   15%   55%
 

Non-interest expense increased $1.5 million from Q4 2017, driven by increased staff levels, performance related incentive payments, and data processing expenses. Non-interest expense was also higher by $4.0 million as compared to Q1 2017, due to increased staffing and data processing costs.

Balance Sheet

The Company had total assets of $1.97 billion at March 31, 2018, compared with $1.76 billion on December 31, 2017 and $1.27 billion on March 31, 2017. Net loans were $1.5 billion at the end of Q1 2018, or 7.5% higher than at December 31, 2017 and 39.0% higher than at March 31, 2017. Total deposits were $1.62 billion at March 31, 2018, or 15.2% higher than at December 31, 2017, and 59.1% higher than at March 31, 2017.

Total stockholders’ equity was $243 million on March 31, 2018, $237 million at December 31, 2017, and $112 million at March 31, 2017. The Company completed an Initial Public Offering (IPO) in November 2017 that increased diluted shares outstanding to 8,253,536 at March 31, 2018 from 4,633,012 on March 31, 2017.

         

Capital Ratios

 

Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
Tier 1 Leverage:
Metropolitan Bank Holding Corp. 13.65 % 13.71 % 7.96 % 8.91 % 9.54 %
Metropolitan Commercial Bank 14.65 14.71 9.32 10.21 11.73

Common Equity Tier 1 Risk-Based (CET1):

Metropolitan Bank Holding Corp. 14.87 15.33 9.19 7.67 8.89
Metropolitan Commercial Bank 17.73 18.36 10.77 11.29 13.19

Tier 1 Risk-Based:

Metropolitan Bank Holding Corp. 16.53 17.09 7.38 9.62 10.72
Metropolitan Commercial Bank 17.73 18.36 10.77 11.29 13.19
Total Risk-based:
Metropolitan Bank Holding Corp. 19.20 19.86 12.01 12.63 14.14
Metropolitan Commercial Bank 18.80 19.41 11.85 12.38 14.32
 

Capital ratios at March 31, 2018 reflected the capital raised from the November 2017 IPO. Metropolitan Commercial Bank remains “Well-Capitalized” under applicable regulatory guidelines. The Company’s tangible common equity ratio was 11.57% at March 31, 2018.

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, 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.

   
Financial Highlights
 

(dollars in thousands, except per share data,
ratios annualized where appropriate)

Three months ended March 31,
2018   2017
Performance
Net income $ 6,291 $ 2,548
Net income available to common shareholders 6,194 2,499
Per common share:
Basic earnings $ 0.76 $ 0.55
Diluted earnings 0.75 0.55
Common shares outstanding:
Average - diluted 8,275,243 4,576,925
Period end 8,253,536 4,633,012
Return on (annualized):
Average total assets 1.35% 0.83%
Average common equity 10.47% 9.68%
Yield on average earning assets 4.15% 4.09%
Cost of interest-bearing liabilities 1.31% 0.93%
Net interest spread 2.84% 3.16%
Net interest margin 3.67% 3.60%
Net charge-offs to average total net loans 0.01% 0.01%
 
Net operating results
Return on (annualized):
Average tangible assets 1.35% 0.83%
Average tangible common equity 11.18% 8.13%
Efficiency ratio 51.48% 60.16%
 
 
Loan quality   At March 31,
2018   2017
 
Commercial real estate $ - $ 858
Commercial and industrial - 3,660
Consumer   85     -
Total nonperforming loans $ 85 $ 4,518
Accruing loans past due 90 days or more - -
Nonaccrual loans to total loans 0.01% 0.42%
Allowance for loan losses to total loans 1.07% 1.11%
 
           
Financial Highlights, Five Quarter Trend
(dollars in thousands, except per share data) Three months ended
Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
Performance  
Net income $ 6,291 $ 3,326

$

3,845

$ 2,651 $ 2,548
Net income available to common stockholders 6,194 3,143 3,671 2,551 2,499
Per common share:
Basic earnings $ 0.76 $ 0.50

$

0.83

$ 0.57 $ 0.55
Diluted earnings $ 0.75 $ 0.49

$

0.82

$ 0.57 $ 0.55
Common shares outstanding:
Average - diluted 8,275,243 6,768,753 4,576,925 4,576,925 4,576,925
Period end 8,253,536 8,196,310 4,633,012 4,633,012 4,633,012
Return on (annualized):
Average total assets 1.35% 0.81% 0.94% 0.75% 0.83%
Average common equity 10.47% 7.68% 13.79% 9.80% 9.68%
Yield on average interest earning assets 4.15% 3.97% 4.21% 4.15% 4.09%
Cost of interest-bearing liabilities 1.31% 1.25% 1.26% 1.06% 0.93%
Net interest spread 2.84% 2.72% 2.95% 3.09% 3.16%
Net interest margin 3.67% 3.49% 3.62% 3.48% 3.60%
Net charge-offs to total net loans 0.01% 0.26% 0.00% 0.02% 0.01%
 
Net operating results
Return on (annualized):
Average tangible assets 1.35% 0.74% 0.95% 0.75% 0.83%
Average tangible common equity 11.18% 10.67% 15.11% 10.77% 8.13%
Efficiency ratio 51.48% 44.82% 53.03% 53.54% 60.16%
 
 
Loan quality   Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
Nonaccrual loans
Real estate
Commercial $ - $ 787

$

841

$ 841 $ 858
One-to-four family - 2,447 2,466 - -
Commercial and industrial - - 3,660 3,660 3,660
Consumer   85     155     125     68     -
Total nonperforming loans $ 85   $ 3,389  

$

7,092

  $ 4,569   $ 4,518
Accruing loans past due 90 days or more - - - - -
Nonaccrual loans to total loans 0.01% 0.24% 0.52% 0.36% 0.42%
Allowance for loan losses to total loans 1.07% 1.05% 1.09% 1.08% 1.11%
 
   
Consolidated Statement of Income
(dollars in thousands) Three months ended
March 31,
2018   2017
 
Interest income $ 18,628 $ 12,441
Interest expense   2,177     1,660
Net interest income   16,451     10,781
Provision for loan losses   1,477     570
Net interest income after provision for loan losses 14,974 10,211
 
Non-interest income:
Service charges on deposit accounts 1,910 291
Other service charges and fees 2,494 166
Loan prepayment penalties 65 -
Debit card income   908     788
Total non-interest income $ 5,377   $ 1,245
 
Non-interest expense:
Compensation and benefits $ 6,317 $ 4,577
Bank premises and equipment 1,180 1,073
Directors Fees 361 174
Insurance Expense 76 79
Professional fees 778 410
FDIC assessment 140 170
Data processing fees 1,368 251
Other expenses   1,018     500
Total non-interest expense 11,238 7,234
 
Net income before income tax expense 9,113 4,222
Income tax expense   2,822     1,674
Net Income $ 6,291   $ 2,548
 
 
Earnings per share:
Basic $ 0.76 $ 0.55
Diluted 0.75 0.55
 
       
Consolidated Statement of Income, Five Quarter Trend
(dollars in thousands)   Three months ended
Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
 
Interest income $ 18,628 $ 17,864 $ 16,401 $ 14,047 $ 12,441
Interest expense   2,177     2,293     2,437     2,281     1,660
Net interest income 16,451 15,571 13,964 11,766 10,781
Provision for loan losses   1,477     3,499     1,200     1,790     570
Net interest income after provision for loan losses 14,974 12,072 12,764 9,976 10,211
 
Non-interest income:
Service charges on deposit accounts 1,910 1,820 836 505 291
Other service charges and fees 2,494 3,429 523 250 166
Loan prepayment penalties 65 71 27 13 -
Debit card income   908     929     847     805     788
Total non-interest income $ 5,377   $ 6,249   $ 2,233   $ 1,573   $ 1,245
 
Non-interest expense:
Compensation and benefits $ 6,317 $ 5,478 $ 4,847 $ 4,264 $ 4,577
Bank premises and equipment 1,180 1,200 1,075 1,037 1,073
Directors Fees 361 229 316 175 174
Insurance Expense 76 77 60 65 79
Professional fees 778 771 976 480 410
FDIC assessment 140 444 349 105 170
Data processing fees 1,368 542 423 279 251
Other expenses   1,018     1,038     544     736     500
Total non-interest expense 11,238 9,779 8,590 7,141 7,234
 
Net income before income tax expense 9,113 8,542 6,407 4,408 4,222
Income tax expense   2,822     5,216     2,562     1,757     1,674
Net Income $ 6,291   $ 3,326   $ 3,845   $ 2,651   $ 2,548
 
Earnings per share:
Basic $ 0.76 $ 0.50 $ 0.83 $ 0.57 $ 0.55
Diluted 0.75 0.49 0.82 0.57 0.55
 
Consolidated Balance Sheet    
(dollars in thousands)

March 31,

March 31,

2018   2017
Assets
Cash and due from banks $ 370,950 $ 93,878
Investment securities available for sale 30,276 35,724
Investment securities held to maturity 5,212 6,228
Other investments 16,566 12,382
Loans, net 1,526,166 1,097,841
Allowance for loan losses   (16,260)     (12,236)
Net loans 1,509,906 1,085,605
Receivable from prepaid card programs, net 7,523 7,257
Accrued interest receivable 4,366 2,728
Premises and equipment, net 6,688 5,460
Prepaid expenses and other assets 5,993 7,052
Goodwill 9,733 9,733
Accounts receivable, net   1,673     2,318
Total assets $ 1,968,886   $ 1,268,365
Liabilities
Deposits:
Non-interest-bearing demand deposits $ 1,012,165 $ 385,984
Interest-bearing deposits   604,951     630,693
Total deposits 1,617,116 1,016,677
Borrowed Funds 33,000 73,854
Trust-preferred securities 20,620 20,620
Subordinated debts, net of issuance cost 24,503 25,000
Accounts payable, accrued expenses and other liabilities 23,338 12,950
Accrued interest payable 454 435
Debit cardholder balances   6,814     6,622
Total liabilities 1,725,845 1,156,158
Stockholders’ equity
Class B preferred stock 3 3
Common stock 81 45
Additional paid-in-capital 211,333 96,207
Retained earnings 32,152 16,041
Accumulated other comprehensive (loss)   (528)     (89)
Total stockholders’ equity   243,041     112,207
Total liabilities and stockholders’ equity $ 1,968,886   $ 1,268,365
 
       
Consolidated Balance Sheet, Five Quarter Trend
(dollars in thousands)                    
Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
Assets
Cash and due from banks $ 370,950 $ 261,231 $ 267,099 $ 227,553 $ 93,878
Investment securities available for sale 30,276 32,157 33,922 35,610 35,724
Investment securities held to maturity 5,212 5,428 5,681 5,968 6,228
Other investments 16,566 13,677 13,740 13,266 12,382
Loans, net 1,526,166 1,419,896 1,380,829 1,285,153 1,097,841
Allowance for loan losses   (16,260)     (14,887)     (15,075)     (13,909)     (12,236)
Net loans 1,509,906 1,405,009 1,365,754 1,271,244 1,085,605
Receivable from prepaid card programs, net 7,523 9,579 6,977 7,577 7,257
Accrued interest receivable 4,366 4,421 3,903 3,059 2,728
Premises and equipment, net 6,688 6,268 6,010 5,744 5,460
Prepaid expenses and other assets 5,993 5,751 7,013 6,961 7,052
Goodwill 9,733 9,733 9,733 9,733 9,733
Accounts receivable, net   1,673     6,601     3,825     58     2,318
Total assets $ 1,968,886   $ 1,759,855   $ 1,723,657   $ 1,586,773   $ 1,268,365
Liabilities
Deposits:
Non-interest-bearing demand deposits $ 1,012,165 $ 812,497 $ 826,345 $ 698,874 $ 385,984
Interest-bearing deposits   604,951     591,858     662,298     630,424     630,693
Total deposits 1,617,116 1,404,355 1,488,643 1,329,298 1,016,677
Borrowed Funds 33,000 42,198 43,750 73,802 73,854
Trust-preferred securities 20,620 20,620 20,620 20,620 20,620
Subordinated debts, net of issuance cost 24,503 24,489 24,468 24,453 25,000
Accounts payable, accrued expenses and other liabilities 23,338 21,678 20,411 15,799 12,950
Accrued interest payable 454 749 547 912 435
Debit cardholder balances   6,814     8,882     6,259     6,910     6,622
Total liabilities 1,725,845 1,522,971 1,604,698 1,471,794 1,156,158
Stockholders’ equity
Class B preferred stock 3 3 3 3 3
Common stock 81 81 45 45 45
Additional paid-in-capital 211,333 211,145 96,422 96,313 96,207
Retained earnings 32,152 25,861 22,536 18,691 16,041
Accumulated other comprehensive (loss)   (528)     (206)     (47)     (73)     (89)
Total stockholders’ equity   243,041     236,884     118,959     114,979     112,207
Total liabilities and stockholders’ equity $ 1,968,886   $ 1,759,855   $ 1,723,657   $ 1,586,773   $ 1,268,365

 

 

 

Reconciliation of GAAP to Non-GAAP Measures

 
 

(dollars in thousands, except per share data)

Three months ended March 31,

Income statement data

2018   2017
Net income

$

6,291

$ 2,548

Efficiency Measures

Total non-interest expense 11,238 7,234
 
Net interest income 16,451 10,781
Non-interest income   5,377     1,245
Operating revenue 21,828 12,026
 
Average interest-earning assets 1,818,524 1,238,309
Net interest margin (GAAP) 3.67% 3.60%
Efficiency ratio 51.48% 60.16%
 

Balance sheet data

At March 31,
(dollars in thousands, except per share data) 2018     2017
 
Average assets

$

1,869,251

$ 1,236,036
Less: average intangible assets   9,733     9,733
Average tangible assets

$

1,859,518

$ 1,226,303
 
Average common equity

$

234,748

$ 105,336
Less: average intangible assets   9,733     9,733
Average tangible common equity

$

225,015

$ 95,603
 
Total assets

$

1,968,886

$ 1,268,365
Less: intangible assets   9,733     9,733
Tangible assets

$

1,959,153

$ 1,258,632
 
Common equity

$

237,537

$ 106,704
Less: intangible assets   9,733     9,733
Tangible common equity

$

227,804

$ 96,971
 
Book value per share (GAAP)

$

29.03

$ 23.03
Tangible book value per common share(non-GAAP)* 28.03 20.93
 

*Tangible book value divided by common shares outstanding at period-end.

 
 

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

(dollars in thousands, except per share data)   Three months ended

Income statement data

Mar 31, 2018

 

Dec 31, 2017

 

Sept 30, 2017

 

Jun 30, 2017

 

Mar 31, 2017

 
Net income $ 6,291   $ 3,326   $ 3,845   $ 2,651   $ 2,548

Efficiency Measures

Total non-interest expenses 11,238 9,779 8,590 7,141 7,234
 
Net interest income 16,451 15,571 13,964 11,766 10,781
Non-interest income   5,377     6,249     2,233     1,573     1,245
Operating revenue 21,828 21,820 16,197 13,339 12,026
 
Average interest-earning assets 1,818,524 1,785,784 1,546,332 1,357,189 1,238,309
Net interest margin (GAAP) 3.67% 3.49% 3.62% 3.48% 3.60%
Efficiency ratio 51.48% 44.82% 53.03% 53.54% 60.16%
 

Balance sheet data

Three months ended
Mar 31, 2018   Dec 31, 2017   Sept 30, 2017   Jun 30, 2017   Mar 31, 2017
(dollars in thousands, except per share data)
Average assets $ 1,869,251 $ 1,813,785 $ 1,633,543 $ 1,414,602 $ 1,236,036
Less: average intangible assets   9,733     9,733     9,733     9,733     9,733
Average tangible assets $ 1,859,518 $ 1,804,052 $ 1,623,810 $ 1,404,869 $ 1,226,303
 
Average common equity $ 234,748 $ 173,245 $ 111,553 $ 108,144 $ 105,336
Less: average intangible assets   9,733     9,733     9,733     9,733     9,733
Average tangible common equity $ 225,015 $ 163,512 $ 101,820 $ 98,411 $ 95,603
 
Total assets $ 1,968,886 $ 1,759,855 $ 1,723,657 $ 1,586,773 $ 1,268,365
Less: intangible assets   9,733     9,733     9,733     9,733     9,733
Tangible assets $ 1,959,153 $ 1,750,122 $ 1,713,924 $ 1,577,040 $ 1,258,632
 
Common equity $ 237,537 $ 231,381 $ 113,457 $ 109,477 $ 106,704
Less: intangible assets   9,733     9,733     9,733     9,733     9,733
Tangible common equity $ 227,804 $ 221,648 $ 103,724 $ 99,744 $ 96,971
 
Common shares outstanding 8,253,536 8,196,310 4,633,012 4,633,012 4,633,012
 
Book value per share (GAAP) $ 29.23 $ 28.23 $ 24.49 $ 23.63 $ 23.03
Tangible book value per common share(non-GAAP)* 28.03 27.04 22.39 21.53 20.93
 
*Tangible book value divided by common shares outstanding at period-end.
 

Contacts

For Metropolitan Bank Holding Corp.
Media:
Liz Zale / Paul Scarpetta, 212-687-8080
or
Investors:
[email protected]