Metropolitan Bank Holding Corp. Reports Second Quarter 2024 Results
Strong Earnings, Liquidity, Capital and Asset Quality While Executing Strategic Initiatives
Financial Highlights
-
Loans at
June 30, 2024 were$5.8 billion , an increase of$119.7 million fromMarch 31, 2024 and$689.3 million fromJune 30, 2023 . -
Total deposits at
June 30, 2024 were$6.2 billion , a decrease of$67.9 million fromMarch 31, 2024 and an increase of$881.1 million fromJune 30, 2023 . - Net interest margin for the second quarter of 2024 expanded 4 basis points to 3.44% from 3.40% for the first quarter of 2024.
-
Diluted earnings per share of
$1.50 for the second quarter of 2024, an increase of 2.7% compared to the first quarter of 2024, inclusive of$5.5 million of expenses related to theGlobal Payments Group (“GPG”) wind down, regulatory remediation, and the core banking digital transformation. - Return on average equity of 9.9% and return on average tangible common equity1 of 10.1% for the second quarter of 2024.
-
Asset quality continues to be stable. Non-performing loans declined to 0.53% at
June 30, 2024 compared to 0.91% atMarch 31, 2024 . -
Liquidity remains strong. At
June 30, 2024 , cash on deposit with theFederal Reserve Bank of New York and available secured funding capacity totaled$3.4 billion , which represented 228% of uninsured deposit balances. -
The Company and Bank are “well capitalized” under applicable regulatory guidelines, with total risk-based capital ratios of 13.0% and 12.8%, respectively, atJune 30, 2024 , well above regulatory minimums.
1 Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.
“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.”
Balance Sheet
Total cash and cash equivalents were
Total loans, net of deferred fees and unamortized costs, were
Total deposits were
At
Income Statement
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(dollars in thousands, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|||||
Total revenues(1) |
|
$ |
67,678 |
|
$ |
66,713 |
|
$ |
61,606 |
|
|
$ |
134,391 |
|
$ |
127,114 |
|
Net income (loss) |
|
$ |
16,799 |
|
$ |
16,203 |
|
$ |
15,561 |
|
|
|
33,002 |
|
|
40,637 |
|
Diluted earnings (loss) per common share |
|
$ |
1.50 |
|
$ |
1.46 |
|
$ |
1.37 |
|
|
|
2.96 |
|
|
3.59 |
|
Return on average assets(2) |
|
|
0.92 |
% |
|
0.91 |
% |
|
0.98 |
% |
|
|
0.91 |
% |
|
1.30 |
% |
Return on average equity(2) |
|
|
9.9 |
% |
|
9.8 |
% |
|
10.1 |
% |
|
|
9.9 |
% |
|
13.6 |
% |
Return on average tangible common equity(2), (3), (4) |
|
|
10.1 |
% |
|
9.9 |
% |
|
10.3 |
% |
|
|
10.0 |
% |
|
13.8 |
% |
_____________________________ |
||
(1) |
Total revenues equal net interest income plus non-interest income. |
|
(2) |
Annualized. |
|
(3) |
Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12. |
|
(4) |
Net income divided by average tangible common equity. |
Net Interest Income
Net interest income for the second quarter of 2024 was
Net Interest Margin
Net interest margin for the second quarter of 2024 was 3.44% compared to 3.40% and 3.44% for the prior linked quarter and prior year period, respectively. The 4 basis point increase from the prior linked quarter was driven largely by an increase in the average balance of loans and an increase in loan yields partially offset by an increase in the average balance of deposits and an increase in the cost of funds.
The total cost of funds for the second quarter of 2024 was 334 basis points compared to 330 basis points and 252 basis points for the prior linked quarter and prior year period, respectively. The increase from the prior linked quarter reflects the continued effects of high short-term interest rates and the intense competition for deposits. The increase from the prior year period reflects the continued effects of high short-term interest rates, the intense competition for deposits and a shift from non-interest bearing deposits to interest bearing funding primarily related to the exit from the crypto-related deposit vertical during 2023.
Non-Interest Income
Non-interest income was
Non-Interest Expense
Non-interest expense was
Income Tax Expense
The effective tax rate for the second quarter of 2024 was 29.7% compared to 33.3% for the prior linked quarter and 37.4% for the prior year period. The effective tax rate for the prior year period includes a discrete expense related to the rescission of certain stock awards.
Asset Quality
Credit quality remains stable. The ratio of non-performing loans to total loans declined to 0.53% at
The allowance for credit losses was
Conference Call
The Company will conduct a conference call at
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
About
The Bank is a
For more information, please visit the Bank’s website at MCBankNY.com.
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 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 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
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 Balance Sheet (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
18,152 |
|
|
$ |
34,037 |
|
|
$ |
31,973 |
|
|
$ |
36,438 |
|
|
$ |
33,534 |
|
Overnight deposits |
|
|
226,510 |
|
|
|
500,366 |
|
|
|
237,492 |
|
|
|
140,929 |
|
|
|
168,242 |
|
Total cash and cash equivalents |
|
|
244,662 |
|
|
|
534,403 |
|
|
|
269,465 |
|
|
|
177,367 |
|
|
|
201,776 |
|
Investment securities available-for-sale |
|
|
504,748 |
|
|
|
497,789 |
|
|
|
461,207 |
|
|
|
429,850 |
|
|
|
426,068 |
|
Investment securities held-to-maturity |
|
|
449,368 |
|
|
|
460,249 |
|
|
|
468,860 |
|
|
|
478,886 |
|
|
|
515,613 |
|
Equity investment securities, at fair value |
|
|
2,122 |
|
|
|
2,115 |
|
|
|
2,123 |
|
|
|
2,015 |
|
|
|
2,066 |
|
Total securities |
|
|
956,238 |
|
|
|
960,153 |
|
|
|
932,190 |
|
|
|
910,751 |
|
|
|
943,747 |
|
Other investments |
|
|
26,584 |
|
|
|
32,669 |
|
|
|
38,966 |
|
|
|
35,015 |
|
|
|
28,040 |
|
Loans, net of deferred fees and unamortized costs |
|
|
5,838,892 |
|
|
|
5,719,218 |
|
|
|
5,624,797 |
|
|
|
5,354,487 |
|
|
|
5,149,546 |
|
Allowance for credit losses |
|
|
(60,008 |
) |
|
|
(58,538 |
) |
|
|
(57,965 |
) |
|
|
(52,298 |
) |
|
|
(51,650 |
) |
Net loans |
|
|
5,778,884 |
|
|
|
5,660,680 |
|
|
|
5,566,832 |
|
|
|
5,302,189 |
|
|
|
5,097,896 |
|
Receivables from global payments business, net |
|
|
90,626 |
|
|
|
93,852 |
|
|
|
87,648 |
|
|
|
79,892 |
|
|
|
84,919 |
|
Other assets |
|
|
168,597 |
|
|
|
171,614 |
|
|
|
172,571 |
|
|
|
178,145 |
|
|
|
165,772 |
|
Total assets |
|
$ |
7,265,591 |
|
|
$ |
7,453,371 |
|
|
$ |
7,067,672 |
|
|
$ |
6,683,359 |
|
|
$ |
6,522,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
1,883,176 |
|
|
$ |
1,927,629 |
|
|
$ |
1,837,874 |
|
|
$ |
1,746,626 |
|
|
$ |
1,730,380 |
|
Interest-bearing deposits |
|
|
4,286,486 |
|
|
|
4,309,913 |
|
|
|
3,899,418 |
|
|
|
3,774,963 |
|
|
|
3,558,185 |
|
Total deposits |
|
|
6,169,662 |
|
|
|
6,237,542 |
|
|
|
5,737,292 |
|
|
|
5,521,589 |
|
|
|
5,288,565 |
|
Federal funds purchased |
|
|
— |
|
|
|
— |
|
|
|
99,000 |
|
|
|
— |
|
|
|
243,000 |
|
|
|
|
150,000 |
|
|
|
300,000 |
|
|
|
440,000 |
|
|
|
355,000 |
|
|
|
200,000 |
|
Trust preferred securities |
|
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
Secured and other borrowings |
|
|
107,514 |
|
|
|
107,549 |
|
|
|
7,585 |
|
|
|
7,621 |
|
|
|
7,655 |
|
Prepaid third-party debit cardholder balances |
|
|
22,631 |
|
|
|
18,685 |
|
|
|
10,178 |
|
|
|
10,297 |
|
|
|
10,772 |
|
Other liabilities |
|
|
102,760 |
|
|
|
95,434 |
|
|
|
93,976 |
|
|
|
133,322 |
|
|
|
130,263 |
|
Total liabilities |
|
|
6,573,187 |
|
|
|
6,779,830 |
|
|
|
6,408,651 |
|
|
|
6,048,449 |
|
|
|
5,900,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock |
|
|
112 |
|
|
|
112 |
|
|
|
111 |
|
|
|
110 |
|
|
|
110 |
|
Additional paid in capital |
|
|
395,520 |
|
|
|
393,341 |
|
|
|
395,871 |
|
|
|
393,544 |
|
|
|
392,742 |
|
Retained earnings |
|
|
348,977 |
|
|
|
332,178 |
|
|
|
315,975 |
|
|
|
301,407 |
|
|
|
279,344 |
|
Accumulated other comprehensive gain (loss), net of tax effect |
|
|
(52,205 |
) |
|
|
(52,090 |
) |
|
|
(52,936 |
) |
|
|
(60,151 |
) |
|
|
(50,921 |
) |
Total stockholders’ equity |
|
|
692,404 |
|
|
|
673,541 |
|
|
|
659,021 |
|
|
|
634,910 |
|
|
|
621,275 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,265,591 |
|
|
$ |
7,453,371 |
|
|
$ |
7,067,672 |
|
|
$ |
6,683,359 |
|
|
$ |
6,522,150 |
|
Consolidated Statement of Income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
(dollars in thousands, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Total interest income |
|
$ |
115,761 |
|
$ |
112,335 |
|
$ |
88,978 |
|
$ |
228,096 |
|
$ |
172,241 |
|
Total interest expense |
|
|
54,222 |
|
|
52,626 |
|
|
35,227 |
|
|
106,848 |
|
|
59,956 |
|
Net interest income |
|
|
61,539 |
|
|
59,709 |
|
|
53,751 |
|
|
121,248 |
|
|
112,285 |
|
Provision for credit losses |
|
|
1,538 |
|
|
528 |
|
|
4,305 |
|
|
2,066 |
|
|
4,951 |
|
Net interest income after provision for credit losses |
|
|
60,001 |
|
|
59,181 |
|
|
49,446 |
|
|
119,182 |
|
|
107,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
2,094 |
|
|
1,863 |
|
|
1,481 |
|
|
3,957 |
|
|
2,937 |
|
|
|
|
3,686 |
|
|
4,069 |
|
|
5,731 |
|
|
7,755 |
|
|
10,581 |
|
Other income |
|
|
359 |
|
|
1,072 |
|
|
643 |
|
|
1,431 |
|
|
1,311 |
|
Total non-interest income |
|
|
6,139 |
|
|
7,004 |
|
|
7,855 |
|
|
13,143 |
|
|
14,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
18,532 |
|
|
19,827 |
|
|
15,288 |
|
|
38,359 |
|
|
31,543 |
|
Bank premises and equipment |
|
|
2,322 |
|
|
2,343 |
|
|
2,287 |
|
|
4,665 |
|
|
4,631 |
|
Professional fees |
|
|
6,916 |
|
|
5,972 |
|
|
4,973 |
|
|
12,888 |
|
|
9,160 |
|
Technology costs |
|
|
3,043 |
|
|
3,011 |
|
|
1,482 |
|
|
6,054 |
|
|
2,795 |
|
Licensing fees |
|
|
3,180 |
|
|
3,276 |
|
|
3,014 |
|
|
6,456 |
|
|
5,676 |
|
|
|
|
2,925 |
|
|
2,925 |
|
|
1,640 |
|
|
5,850 |
|
|
4,454 |
|
Regulatory settlement reserve |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,500 |
) |
Other expenses |
|
|
5,339 |
|
|
4,546 |
|
|
3,758 |
|
|
9,885 |
|
|
7,708 |
|
Total non-interest expense |
|
|
42,257 |
|
|
41,900 |
|
|
32,442 |
|
|
84,157 |
|
|
63,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before income tax expense |
|
|
23,883 |
|
|
24,285 |
|
|
24,859 |
|
|
48,168 |
|
|
58,696 |
|
Income tax expense |
|
|
7,084 |
|
|
8,082 |
|
|
9,298 |
|
|
15,166 |
|
|
18,059 |
|
Net income (loss) |
|
$ |
16,799 |
|
$ |
16,203 |
|
$ |
15,561 |
|
$ |
33,002 |
|
$ |
40,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,192,936 |
|
|
11,132,989 |
|
|
11,136,261 |
|
|
11,163,127 |
|
|
11,090,695 |
|
Diluted |
|
|
11,199,736 |
|
|
11,132,989 |
|
|
11,278,405 |
|
|
11,163,127 |
|
|
11,271,150 |
|
Basic earnings (loss) |
|
$ |
1.50 |
|
$ |
1.46 |
|
$ |
1.39 |
|
$ |
2.96 |
|
$ |
3.65 |
|
Diluted earnings (loss) |
|
$ |
1.50 |
|
$ |
1.46 |
|
$ |
1.37 |
|
$ |
2.96 |
|
$ |
3.59 |
|
L
oan Production,
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|||||
LOAN PRODUCTION (in millions) |
|
$ |
290.8 |
|
$ |
269.6 |
|
$ |
342.5 |
|
$ |
333.5 |
|
$ |
425.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
24,000 |
|
$ |
44,939 |
|
$ |
44,939 |
|
$ |
24,000 |
|
$ |
24,000 |
|
Commercial and industrial |
|
|
6,989 |
|
|
6,989 |
|
|
6,934 |
|
|
6,934 |
|
|
— |
|
Consumer |
|
|
— |
|
|
— |
|
|
24 |
|
|
24 |
|
|
24 |
|
Total non-accrual loans |
|
$ |
30,989 |
|
$ |
51,928 |
|
$ |
51,897 |
|
$ |
30,958 |
|
$ |
24,024 |
|
Non-accrual loans to total loans |
|
|
0.53 |
% |
|
0.91 |
% |
|
0.92 |
% |
|
0.58 |
% |
|
0.47 |
% |
Allowance for credit losses |
|
$ |
60,008 |
|
$ |
58,538 |
|
$ |
57,965 |
|
$ |
52,298 |
|
$ |
51,650 |
|
Allowance for credit losses to total loans |
|
|
1.03 |
% |
|
1.02 |
% |
|
1.03 |
% |
|
0.98 |
% |
|
1.00 |
% |
Charge-offs |
|
$ |
(16) |
|
$ |
(3) |
|
$ |
(946) |
|
$ |
(129) |
|
$ |
(44) |
|
Recoveries |
|
$ |
— |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net charge-offs/(recoveries) to average loans (annualized) |
|
|
— |
% |
|
— |
% |
|
0.07 |
% |
|
0.01 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3 |
% |
|
10.3 |
% |
|
10.6 |
% |
|
10.7 |
% |
|
10.8 |
% |
|
|
|
10.1 |
% |
|
10.1 |
% |
|
10.3 |
% |
|
10.5 |
% |
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Risk-Based (CET1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.7 |
% |
|
11.6 |
% |
|
11.5 |
% |
|
11.8 |
% |
|
11.9 |
% |
|
|
|
11.8 |
% |
|
11.7 |
% |
|
11.6 |
% |
|
11.9 |
% |
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.1 |
% |
|
11.9 |
% |
|
11.9 |
% |
|
12.2 |
% |
|
12.2 |
% |
|
|
|
11.8 |
% |
|
11.7 |
% |
|
11.6 |
% |
|
11.9 |
% |
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk-Based: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.0 |
% |
|
12.9 |
% |
|
12.8 |
% |
|
13.1 |
% |
|
13.2 |
% |
|
|
|
12.8 |
% |
|
12.6 |
% |
|
12.5 |
% |
|
12.8 |
% |
|
12.9 |
% |
Performance Measures
|
|
Three months ended |
|
Six Months Ended |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(dollars in thousands, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|||||
Net income per consolidated statements of income |
|
$ |
16,799 |
|
$ |
16,203 |
|
$ |
15,561 |
|
$ |
33,002 |
|
$ |
40,637 |
|
Less: Earnings allocated to participating securities |
|
|
— |
|
|
— |
|
|
(82) |
|
|
— |
|
|
(170) |
|
Net income (loss) available to common shareholders |
|
$ |
16,799 |
|
$ |
16,203 |
|
$ |
15,479 |
|
$ |
33,002 |
|
$ |
40,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) |
|
$ |
1.50 |
|
$ |
1.46 |
|
$ |
1.39 |
|
$ |
2.96 |
|
$ |
3.65 |
|
Diluted earnings (loss) |
|
$ |
1.50 |
|
$ |
1.46 |
|
$ |
1.37 |
|
$ |
2.96 |
|
$ |
3.59 |
|
Common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end |
|
|
11,192,936 |
|
|
11,191,958 |
|
|
10,991,074 |
|
|
11,192,936 |
|
|
10,991,074 |
|
Average fully diluted |
|
|
11,199,736 |
|
|
11,132,989 |
|
|
11,278,405 |
|
|
11,163,127 |
|
|
11,271,150 |
|
Return on:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total assets |
|
|
0.92 |
% |
|
0.91 |
% |
|
0.98 |
% |
|
0.91 |
% |
|
1.30 |
% |
Average equity |
|
|
9.9 |
% |
|
9.8 |
% |
|
10.1 |
% |
|
9.9 |
% |
|
13.6 |
% |
Average tangible common equity(2), (3) |
|
|
10.1 |
% |
|
9.9 |
% |
|
10.3 |
% |
|
10.0 |
% |
|
13.8 |
% |
Yield on average earning assets(1) |
|
|
6.47 |
% |
|
6.40 |
% |
|
5.70 |
% |
|
6.43 |
% |
|
5.61 |
% |
Total cost of deposits(1) |
|
|
3.26 |
% |
|
3.16 |
% |
|
2.19 |
% |
|
3.21 |
% |
|
1.95 |
% |
Net interest spread(1) |
|
|
1.77 |
% |
|
1.77 |
% |
|
1.80 |
% |
|
1.77 |
% |
|
2.01 |
% |
Net interest margin(1) |
|
|
3.44 |
% |
|
3.40 |
% |
|
3.44 |
% |
|
3.42 |
% |
|
3.65 |
% |
Net charge-offs as % of average loans(1) |
|
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
0.01 |
% |
Efficiency ratio(4) |
|
|
62.4 |
% |
|
62.8 |
% |
|
52.7 |
% |
|
62.6 |
% |
|
49.9 |
% |
______________________________ |
||
(1) |
Annualized |
|
(2) |
Net income divided by average tangible common equity. |
|
(3) |
Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12. |
|
(4) |
Total non-interest expense divided by total revenues. |
Interest Margin Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three months ended |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Average |
|
|
|
|
Yield / |
|
|
Average |
|
|
|
|
Yield / |
|
|
Average |
|
|
|
|
Yield / |
|
||||||
(dollars in thousands) |
|
Balance |
|
Interest |
|
Rate (1) |
|
|
Balance |
|
Interest |
|
Rate (1) |
|
|
Balance |
|
Interest |
|
Rate (1) |
|
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loans (2) |
|
$ |
5,754,283 |
|
|
$ |
104,594 |
|
7.31 |
% |
|
$ |
5,696,841 |
|
|
$ |
102,381 |
|
7.23 |
% |
|
$ |
4,921,887 |
|
|
$ |
80,516 |
|
6.54 |
% |
Available-for-sale securities |
|
|
589,825 |
|
|
|
3,353 |
|
2.29 |
|
|
|
565,292 |
|
|
|
2,957 |
|
2.10 |
|
|
|
520,322 |
|
|
|
2,068 |
|
1.59 |
|
Held-to-maturity securities |
|
|
456,078 |
|
|
|
2,124 |
|
1.87 |
|
|
|
465,270 |
|
|
|
2,172 |
|
1.88 |
|
|
|
519,076 |
|
|
|
2,602 |
|
2.01 |
|
Equity investments |
|
|
2,431 |
|
|
|
16 |
|
2.59 |
|
|
|
2,416 |
|
|
|
15 |
|
2.47 |
|
|
|
2,375 |
|
|
|
13 |
|
2.09 |
|
Overnight deposits |
|
|
369,169 |
|
|
|
5,167 |
|
5.63 |
|
|
|
297,992 |
|
|
|
4,154 |
|
5.61 |
|
|
|
237,449 |
|
|
|
3,086 |
|
5.14 |
|
Other interest-earning assets |
|
|
27,301 |
|
|
|
506 |
|
7.45 |
|
|
|
33,428 |
|
|
|
656 |
|
7.89 |
|
|
|
39,197 |
|
|
|
693 |
|
7.08 |
|
Total interest-earning assets |
|
|
7,199,087 |
|
|
|
115,761 |
|
6.47 |
|
|
|
7,061,239 |
|
|
|
112,335 |
|
6.40 |
|
|
|
6,240,306 |
|
|
|
88,978 |
|
5.70 |
|
Non-interest-earning assets |
|
|
182,234 |
|
|
|
|
|
|
|
|
|
183,046 |
|
|
|
|
|
|
|
|
|
162,326 |
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(58,841 |
) |
|
|
|
|
|
|
|
|
(58,517 |
) |
|
|
|
|
|
|
|
|
(48,035 |
) |
|
|
|
|
|
|
Total assets |
|
$ |
7,322,480 |
|
|
|
|
|
|
|
|
$ |
7,185,768 |
|
|
|
|
|
|
|
|
$ |
6,354,597 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Money market and savings accounts |
|
$ |
4,319,340 |
|
|
|
50,236 |
|
4.68 |
|
|
$ |
4,099,466 |
|
|
|
46,611 |
|
4.57 |
|
|
$ |
2,987,237 |
|
|
|
27,100 |
|
3.64 |
|
Certificates of deposit |
|
|
37,084 |
|
|
|
318 |
|
3.45 |
|
|
|
34,264 |
|
|
|
275 |
|
3.22 |
|
|
|
45,925 |
|
|
|
303 |
|
2.65 |
|
Total interest-bearing deposits |
|
|
4,356,424 |
|
|
|
50,554 |
|
4.67 |
|
|
|
4,133,730 |
|
|
|
46,886 |
|
4.56 |
|
|
|
3,033,162 |
|
|
|
27,403 |
|
3.62 |
|
Borrowed funds |
|
|
287,104 |
|
|
|
3,667 |
|
5.14 |
|
|
|
437,389 |
|
|
|
5,740 |
|
5.28 |
|
|
|
588,281 |
|
|
|
7,824 |
|
5.32 |
|
Total interest-bearing liabilities |
|
|
4,643,528 |
|
|
|
54,222 |
|
4.70 |
|
|
|
4,571,119 |
|
|
|
52,626 |
|
4.63 |
|
|
|
3,621,443 |
|
|
|
35,227 |
|
3.90 |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-interest-bearing deposits |
|
|
1,879,213 |
|
|
|
|
|
|
|
|
|
1,835,368 |
|
|
|
|
|
|
|
|
|
1,977,443 |
|
|
|
|
|
|
|
Other non-interest-bearing liabilities |
|
|
119,675 |
|
|
|
|
|
|
|
|
|
112,272 |
|
|
|
|
|
|
|
|
|
139,341 |
|
|
|
|
|
|
|
Total liabilities |
|
|
6,642,416 |
|
|
|
|
|
|
|
|
|
6,518,759 |
|
|
|
|
|
|
|
|
|
5,738,227 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
680,064 |
|
|
|
|
|
|
|
|
|
667,009 |
|
|
|
|
|
|
|
|
|
616,370 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
7,322,480 |
|
|
|
|
|
|
|
|
$ |
7,185,768 |
|
|
|
|
|
|
|
|
$ |
6,354,597 |
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
61,539 |
|
|
|
|
|
|
|
$ |
59,709 |
|
|
|
|
|
|
|
$ |
53,751 |
|
|
|
|||
Net interest rate spread (3) |
|
|
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
|
|
1.80 |
% |
|||
Net interest margin (4) |
|
|
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
|
|
3.40 |
% |
|
|
|
|
|
|
|
3.44 |
% |
|||
Total cost of deposits (5) |
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
|
|
2.19 |
% |
|||
Total cost of funds (6) |
|
|
|
|
|
|
|
3.34 |
% |
|
|
|
|
|
|
|
3.30 |
% |
|
|
|
|
|
|
|
2.52 |
% |
_______________________________ |
||
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Six Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Average |
|
|
|
|
Yield / |
|
|
Average |
|
|
|
|
Yield / |
|
||||
(dollars in thousands) |
|
Balance |
|
Interest |
|
Rate (1) |
|
|
Balance |
|
Interest |
|
Rate (1) |
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans (2) |
|
$ |
5,725,562 |
|
|
$ |
206,976 |
|
7.27 |
% |
|
$ |
4,880,343 |
|
|
$ |
156,476 |
|
6.45 |
% |
Available-for-sale securities |
|
|
577,558 |
|
|
|
6,311 |
|
2.20 |
|
|
|
525,384 |
|
|
$ |
4,175 |
|
1.59 |
|
Held-to-maturity securities |
|
|
460,674 |
|
|
|
4,296 |
|
1.88 |
|
|
|
512,900 |
|
|
$ |
4,978 |
|
1.94 |
|
Equity investments |
|
|
2,423 |
|
|
|
30 |
|
2.53 |
|
|
|
2,368 |
|
|
$ |
25 |
|
2.09 |
|
Overnight deposits |
|
|
333,580 |
|
|
|
9,321 |
|
5.62 |
|
|
|
222,765 |
|
|
$ |
5,570 |
|
4.97 |
|
Other interest-earning assets |
|
|
30,365 |
|
|
|
1,162 |
|
7.69 |
|
|
|
29,733 |
|
|
$ |
1,017 |
|
6.84 |
|
Total interest-earning assets |
|
|
7,130,162 |
|
|
|
228,096 |
|
6.43 |
|
|
|
6,173,493 |
|
|
|
172,241 |
|
5.61 |
|
Non-interest-earning assets |
|
|
182,635 |
|
|
|
|
|
|
|
|
|
157,338 |
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(58,679 |
) |
|
|
|
|
|
|
|
|
(46,831 |
) |
|
|
|
|
|
|
Total assets |
|
$ |
7,254,118 |
|
|
|
|
|
|
|
|
$ |
6,284,000 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Money market and savings accounts |
|
$ |
4,209,403 |
|
|
$ |
96,848 |
|
4.63 |
|
|
$ |
2,914,160 |
|
|
$ |
49,129 |
|
3.40 |
|
Certificates of deposit |
|
|
35,674 |
|
|
|
593 |
|
3.34 |
|
|
|
49,399 |
|
|
$ |
647 |
|
2.64 |
|
Total interest-bearing deposits |
|
|
4,245,077 |
|
|
|
97,441 |
|
4.62 |
|
|
|
2,963,559 |
|
|
|
49,776 |
|
3.39 |
|
Borrowed funds |
|
|
362,246 |
|
|
|
9,407 |
|
5.22 |
|
|
|
389,360 |
|
|
|
10,180 |
|
5.23 |
|
Total interest-bearing liabilities |
|
|
4,607,323 |
|
|
|
106,848 |
|
4.66 |
|
|
|
3,352,919 |
|
|
|
59,956 |
|
3.61 |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Non-interest-bearing deposits |
|
|
1,857,290 |
|
|
|
|
|
|
|
|
|
2,183,000 |
|
|
|
|
|
|
|
Other non-interest-bearing liabilities |
|
|
115,974 |
|
|
|
|
|
|
|
|
|
143,573 |
|
|
|
|
|
|
|
Total liabilities |
|
|
6,580,587 |
|
|
|
|
|
|
|
|
|
5,679,492 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
673,531 |
|
|
|
|
|
|
|
|
|
604,508 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
7,254,118 |
|
|
|
|
|
|
|
|
$ |
6,284,000 |
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
121,248 |
|
|
|
|
|
|
|
$ |
112,285 |
|
|
|
||
Net interest rate spread (3) |
|
|
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
|
|
2.01 |
% |
||
Net interest margin (4) |
|
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
|
3.65 |
% |
||
Total cost of deposits (5) |
|
|
|
|
|
|
|
3.21 |
% |
|
|
|
|
|
|
|
1.95 |
% |
||
Total cost of funds (6) |
|
|
|
|
|
|
|
3.32 |
% |
|
|
|
|
|
|
|
2.18 |
% |
_______________________________ |
||
(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. |
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, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
except per share data) |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Average assets |
|
$ |
7,322,480 |
|
|
$ |
7,185,768 |
|
|
$ |
6,861,335 |
|
|
$ |
6,589,857 |
|
|
$ |
6,354,597 |
|
|
$ |
7,254,118 |
|
|
$ |
6,284,000 |
|
Less: average intangible assets |
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
Average tangible assets (non-GAAP) |
|
$ |
7,312,747 |
|
|
$ |
7,176,035 |
|
|
$ |
6,851,602 |
|
|
$ |
6,580,124 |
|
|
$ |
6,344,864 |
|
|
$ |
7,244,385 |
|
|
$ |
6,274,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity |
|
$ |
680,064 |
|
|
$ |
667,009 |
|
|
$ |
643,257 |
|
|
$ |
631,205 |
|
|
$ |
616,370 |
|
|
$ |
673,531 |
|
|
$ |
604,508 |
|
Less: average intangible assets |
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
Average tangible common equity (non-GAAP) |
|
$ |
670,331 |
|
|
$ |
657,276 |
|
|
$ |
633,524 |
|
|
$ |
621,472 |
|
|
$ |
606,637 |
|
|
$ |
663,798 |
|
|
$ |
594,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,265,591 |
|
|
$ |
7,453,371 |
|
|
$ |
7,067,672 |
|
|
$ |
6,683,359 |
|
|
$ |
6,522,150 |
|
|
$ |
7,265,591 |
|
|
$ |
6,522,150 |
|
Less: intangible assets |
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
Tangible assets (non-GAAP) |
|
$ |
7,255,858 |
|
|
$ |
7,443,638 |
|
|
$ |
7,057,939 |
|
|
$ |
6,673,626 |
|
|
$ |
6,512,417 |
|
|
$ |
7,255,858 |
|
|
$ |
6,512,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity |
|
$ |
692,404 |
|
|
$ |
673,541 |
|
|
$ |
659,021 |
|
|
$ |
634,910 |
|
|
$ |
621,275 |
|
|
$ |
692,404 |
|
|
$ |
621,275 |
|
Less: intangible assets |
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
|
|
9,733 |
|
Tangible common equity (book value) (non-GAAP) |
|
$ |
682,671 |
|
|
$ |
663,808 |
|
|
$ |
649,288 |
|
|
$ |
625,177 |
|
|
$ |
611,542 |
|
|
$ |
682,671 |
|
|
$ |
611,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
11,192,936 |
|
|
|
11,191,958 |
|
|
|
11,062,729 |
|
|
|
11,062,729 |
|
|
|
10,991,074 |
|
|
|
11,192,936 |
|
|
|
10,991,074 |
|
Book value per share (GAAP) |
|
$ |
61.86 |
|
|
$ |
60.18 |
|
|
$ |
59.57 |
|
|
$ |
57.39 |
|
|
$ |
56.53 |
|
|
$ |
61.86 |
|
|
$ |
56.53 |
|
Tangible book value per share (non-GAAP) (1) |
|
$ |
60.99 |
|
|
$ |
59.31 |
|
|
$ |
58.69 |
|
|
$ |
56.51 |
|
|
$ |
55.64 |
|
|
$ |
60.99 |
|
|
$ |
55.64 |
|
_______________________________ |
||
(1) |
Tangible book value divided by common shares outstanding at period-end. |
Explanatory Note
Some amounts presented within this document may not recalculate due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240718975301/en/
EVP & Chief Financial Officer
(212) 365-6721
IR@MCBankNY.com
Source: