Metropolitan Bank Holding Corp. (NYSE:MCB) Q1 2025 Earnings Conference Call April 22, 2025 9:00 AM ET Company Participants Mark DeFazio - President and Chief Executive Officer Daniel Dougherty - Executive Vice President and Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Ynyra Bohan - Hovde Group Chris O'Connell - KBW Operator Welcome to the Metropolitan Commercial Bank's First Quarter 2025 Earnings Call. Hosting the call today from Metropolitan Commercial Bank are Mark ...

Metropolitan Bank Holding Corp. (MCB) came out with quarterly earnings of $1.45 per share, missing the Zacks Consensus Estimate of $1.61 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.94%. A quarter ago, it was expected that this company would post earnings of $1.49 per share when it actually produced earnings of $1.88, delivering a surprise of 26.17%.Over the last four quarter ...

Exhibit 99.1 Release: 4:05 P.M. April 21, 2025 212-365-6721 IR@MCBankNY.com Metropolitan Bank Holding Corp. Reports First Quarter 2025 Results Strong Financial Results and Robust Capital Position Financial Highlights NEW YORK, April 21, 2025 ‒ Metropolitan Bank Holding Corp. (the "Company") (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025 compared to $21.4 million, or $1.88 p ...

Metropolitan Bank Holding Corp. (MCB) has announced a new share repurchase program. Under the plan, the company has been authorized to buy back shares worth $50 million. There is no expiration date for the program.In the last two years, MCB did not have any share repurchase plan in place.Also, the company does not pay any dividends to its shareholders.Mark R. DeFazio, president and CEO of Metropolitan Bank Holding, said, “This move reflects our confidence in the Company’s long-term growth trajectory and the ...

Group 1 - Metropolitan Bank Holding Corp. (NYSE: MCB) has experienced strong growth in the past year but is expected to maintain decent performance in FY25 due to improved liquidity and diversification [1] - The analyst has a background in logistics and stock investing, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - The analyst has been trading in the Philippine stock market since 2014 and has diversified investments across various industries and market capitalizations, including US markets since 2020 [1] Group 2 - The article does not provide any specific financial metrics or performance indicators for Metropolitan Bank Holding Corp. [1]

Financial Position - As of December 31, 2024, the Company's total assets amounted to $7.3 billion, with loans and deposits each totaling $6.0 billion, and stockholders' equity at $729.8 million[20]. - As of December 31, 2024, the Company had $210.0 million of Federal funds purchased and $240.0 million of FHLBNY advances outstanding[77]. - As of December 31, 2024, the Company’s loan portfolio consisted of $5.9 billion, with 98.3% attributed to commercial real estate (CRE) and commercial and industrial (C&I) loans[155]. - The Company reported an accumulated other comprehensive loss of $53.1 million, net of tax, related to unrealized losses in the available-for-sale (AFS) securities portfolio, negatively impacting stockholders' equity[176]. - At December 31, 2024, the Company held AFS securities with an amortized cost of $559.1 million and a fair value of $482.1 million, indicating a significant decline in market value[176]. Business Focus and Strategy - The Company focuses on middle-market businesses with annual revenues between $5 million and $400 million, and real estate entrepreneurs with a net worth of $50 million or more[23][28]. - The Company aims to differentiate itself through excellent service, competitive products, and timely lending decisions, focusing on underserved markets[29][27]. - The Company intends to continue expanding its tailored banking solutions and deepen client relationships to enhance market share[31]. - The Company aims to convert lending clients into full retail clients to expand its retail presence, particularly in the New York City metropolitan area[54]. - The Company intends to continue emphasizing CRE and C&I lending, which are subject to heightened regulatory focus and risk management practices[156]. Loan Portfolio and Risk Management - At December 31, 2024, 38.8% of the Company's real estate loan portfolio, or $1.9 billion, was comprised of loans to the healthcare industry, primarily for nursing and residential care facilities[40]. - The Company's C&I loan portfolio included $355.1 million, or 33.9%, in loans to the healthcare industry, with $238.1 million, or 67.0%, specifically to nursing and residential care facilities[49]. - Construction loans comprised 3.4% of the Company's loan portfolio as of December 31, 2024, with strict underwriting standards in place[45]. - The allowance for credit losses (ACL) is subject to significant estimates and judgments, and if insufficient, could materially decrease net income[158]. - Federal and state regulators periodically review the ACL, and any required increases could adversely affect the Company’s financial condition[160]. Regulatory Environment - The Company is a bank holding company and is subject to regulation and supervision by the Federal Reserve Board (FRB)[94]. - The FRB regulations require state member banks to meet several minimum capital standards, effective January 1, 2015[109]. - The capital standards require a common equity Tier 1 capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6%, and a total capital to risk-weighted assets ratio of at least 8%[110]. - The minimum required capital conservation buffer was at 2.5% of risk-weighted assets as of December 31, 2024[112]. - The latest CRA rating received by the Company was "Satisfactory" for the examination conducted in 2022[127]. Operational and Compliance Risks - The Company is subject to the BSA and the USA PATRIOT Act, which impose requirements for anti-money laundering compliance programs[129]. - The federal banking agencies have increased scrutiny of BSA and anti-money laundering programs, with significant penalties for non-compliance[134]. - The Company maintains internal controls and insurance to mitigate operational risks, but failures in these systems could have a material adverse impact on financial results[187]. - Operational risks include potential financial losses from employee errors and misconduct, which could impact the Company's reputation and financial condition[186]. - The Company is undertaking initiatives to expand digital capabilities and improve information technology systems, which may require significant resources and could adversely affect business operations if not executed successfully[185]. Employee and Organizational Development - As of December 31, 2024, the Company employed 291 full-time employees and 2 part-time employees, reflecting an increase of 16 employees or approximately 5.8% from December 31, 2023[78]. - The ratio of women and men in the Company is 45% and 55% respectively, with approximately 31.7% of employees identified as minorities as of December 31, 2024, down from 35.4% in 2023[80]. - The Company offers a competitive, performance-based compensation and benefits plan, including comprehensive healthcare coverage and a 401(k) plan with a Company match[81]. - The Company enhanced its New Employee Orientation in 2024 to provide a more comprehensive welcome experience for new hires[84]. - Employees are required to complete annual training in compliance, financial crimes compliance, and cybersecurity, among other topics, via the Company's Learning Management System[84]. Market and Economic Risks - The Company is particularly vulnerable to economic downturns in New York City, where a significant portion of its loans and operations are concentrated[169]. - Rising inflation and market interest rates could lead to increased non-interest expenses and negatively impact the Company's financial condition and results of operations[165]. - Changes in interest rates may adversely affect the Company's net interest income and profitability, particularly if liabilities reprice more quickly than assets[172]. - The Company’s loan portfolio includes many real estate secured loans, which may see decreased demand during economic downturns, leading to higher delinquencies and charge-offs[166]. - Climate change and global pandemics pose risks that could adversely affect the Company's financial condition and operational results[198][201]. Future Outlook and Growth - The Company expects to grow the number of employees and customers, but may not sustain its historical growth rate[210]. - The Company plans to increase its portfolio of commercial loans, which generally carry higher risks compared to residential mortgage loans[157]. - The exit from the GPG BaaS business may incur unanticipated costs and risks, potentially impacting future financial results[202]. - Increased regulatory scrutiny of non-bank financial service solutions could adversely affect the Company's operations and growth prospects[203]. - The Company's ability to grow depends on successfully attracting deposits and identifying loan opportunities, which may be challenging[209].

Core Viewpoint - Metropolitan Bank Holding Corp. (MCB) has seen a 1.5% increase in share price over the past four weeks, closing at $61.89, with analysts suggesting a potential upside of 32.8% based on a mean price target of $82.17 [1] Price Targets - The average price target for MCB is derived from three short-term estimates, ranging from a low of $78 to a high of $85, with a standard deviation of $3.69, indicating a relatively high agreement among analysts [2] - The lowest estimate suggests a 26% increase from the current price, while the highest indicates a 37.3% upside [2] Analyst Sentiment - Analysts show strong agreement regarding MCB's ability to report better earnings than previously predicted, which supports the expectation of an upside [4] - A positive trend in earnings estimate revisions has been correlated with stock price movements, suggesting that this could be a reliable indicator of potential gains [9] Earnings Estimates - Over the past 30 days, one earnings estimate for MCB has increased, with no negative revisions, leading to a 4% rise in the Zacks Consensus Estimate [10] - MCB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] Conclusion on Price Targets - While the consensus price target may not be a definitive measure of MCB's potential gains, the direction indicated by these targets appears to be a useful guide for investors [12]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on undervalued stocks with potential for profit [2][8] Company Summary: Metropolitan Bank Holding (MCB) - MCB has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock's current P/E ratio is 8.69, significantly lower than the industry average of 11.21 [4] - MCB's Forward P/E has fluctuated between 5.17 and 9.67 over the past year, with a median of 7.21 [4] - The P/B ratio for MCB is 1.01, compared to the industry average of 1.33, suggesting it is attractively valued [5] - MCB's P/B has ranged from 0.54 to 1.05 in the past year, with a median of 0.79 [5] - The P/S ratio for MCB stands at 1.47, lower than the industry's average of 1.86, indicating potential undervaluation [6] - MCB's P/CF ratio is 12.53, which is favorable compared to the industry average of 24.89 [7] - The P/CF has varied between 5.13 and 14.75 over the past year, with a median of 8.16 [7] - Overall, MCB appears to be undervalued based on these metrics and has a strong earnings outlook, making it one of the market's strongest value stocks [8]

Financial Data and Key Metrics Changes - The company reported a net income of $21.4 million, translating to $1.88 per share for Q4 2024, indicating a strong performance [3] - Quarterly net interest income increased by 16.9% compared to Q4 2023, while annual net interest income rose by 13.6% versus the full year 2023 [3] Business Line Data and Key Metrics Changes - The company successfully exited the Banking as a Service (BaaS) business, which had been a complementary operation for 22 years [4] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the available content Company Strategy and Development Direction and Industry Competition - The exit from the BaaS business is part of a strategic initiative, with one initiative concluded and another still ongoing [4] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the strong performance in Q4 2024, indicating a positive outlook for the company's financial health [3] Other Important Information - The call included a reminder about forward-looking statements and risks associated with actual results differing from projections [1] Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content

Core Viewpoint - Metropolitan Bank Holding Corp. reported quarterly earnings of $1.88 per share, exceeding the Zacks Consensus Estimate of $1.49 per share, and showing an increase from $1.28 per share a year ago, representing an earnings surprise of 26.17% [1] Financial Performance - The company posted revenues of $71 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.98%, compared to $63.56 million in the same quarter last year [2] - Over the last four quarters, Metropolitan Bank Holding has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - Since the beginning of the year, Metropolitan Bank Holding shares have increased by approximately 3.3%, slightly underperforming the S&P 500's gain of 3.5% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.57 on revenues of $68.6 million, and for the current fiscal year, it is $7.03 on revenues of $289.5 million [7] Industry Context - The Banks - Northeast industry, to which Metropolitan Bank Holding belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]