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]

Financial Performance - Metropolitan Bank Holding Corp. reported net income of $21.4 million, or $1.88 per diluted common share, for Q4 2024, compared to $12.3 million, or $1.08 per diluted common share, for Q3 2024, and $14.6 million, or $1.28 per diluted common share, for Q4 2023[3] - Net income for Q4 2024 was $21,418,000, a 47.0% increase from $14,568,000 in Q4 2023[36] - Basic earnings per share for Q4 2024 were $1.91, compared to $1.31 in Q4 2023, reflecting a growth of 45.8%[36] - The effective tax rate for the year 2024 was 31.3%, compared to 27.7% for the prior year[23] Loan and Deposit Trends - Total loans increased to $6.0 billion at December 31, 2024, up $137.0 million, or 2.3%, from September 30, 2024, and up $409.3 million, or 7.3%, from December 31, 2023[3] - Total deposits were $6.0 billion at December 31, 2024, reflecting a decrease of $286.9 million, or 4.6%, from September 30, 2024, but an increase of $245.7 million, or 4.3%, from December 31, 2023[8] - Loan production for Q4 2024 was $309.0 million, a decrease of 32.9% from $460.6 million in Q3 2024[35] - Total deposits decreased to $5,982,973,000 as of December 31, 2024, from $6,269,907,000 on September 30, 2024, representing a decline of about 4.6%[33] Interest Income and Margin - Total interest income for Q4 2024 was $119,829,000, an increase of 13.9% compared to $105,267,000 in Q4 2023[34] - Net interest income after provision for credit losses for Q4 2024 was $65,103,000, up 28.9% from $50,453,000 in Q4 2023[34] - The net interest margin for Q4 2024 was 3.66%, an increase of 4 basis points from the prior linked quarter and 30 basis points from the prior year period[14] - The average yield on total interest-earning assets rose to 6.53% for the year ended December 31, 2024, compared to 5.88% in the previous year[43] Asset Management - The bank's total assets as of December 31, 2024, were $7,300,749,000, a decrease from $7,403,358,000 on September 30, 2024[33] - Total assets reached $7,293,445 thousand, an increase from $6,506,614 thousand in the previous year[43] - Average assets for Q4 2024 were $7,363,252, compared to $6,861,335 in Q4 2023, indicating a year-over-year increase of about 7.3%[47] Non-Interest Income and Expenses - Non-interest income for Q4 2024 was $4.4 million, a decrease of $1.9 million from the prior linked quarter and a decrease of $2.2 million from the prior year period[19] - Non-interest expense for Q4 2024 was $38.2 million, a decrease of $13.1 million from the prior linked quarter, primarily due to a pre-tax regulatory reserve recorded in Q3 2024[21] - Total non-interest income decreased to $4,401,000 in Q4 2024 from $6,561,000 in Q4 2023, representing a decline of 32.9%[34] Credit Quality - The allowance for credit losses was $63.3 million at December 31, 2024, an increase of $780,000 from September 30, 2024, and $5.3 million from December 31, 2023[25] - The ratio of non-performing loans to total loans was 0.54% at December 31, 2024, compared to 0.53% for the prior linked quarter and 0.92% at December 31, 2023[24] - Non-performing loans to total loans ratio was 0.54% as of December 31, 2024, slightly up from 0.53% in September 2024[35] Capital and Equity - Tier 1 Leverage for Metropolitan Bank Holding Corp. was 10.8% as of December 31, 2024, up from 10.6% in September 2024[35] - The return on average equity for Q4 2024 was 11.8%, significantly higher than 6.9% in Q3 2024[36] - Average common equity for Q4 2024 reached $721,506, up from $643,257 in Q4 2023, indicating a year-over-year increase of about 12.2%[47] Recognition and Future Initiatives - The company is progressing on its digital transformation initiative, expected to be completed by year-end 2025[4] - Metropolitan Bank Holding Corp. was recognized as one of Newsweek's Best Regional Banks and Credit Unions for 2025[29]

Group 1 - Metropolitan Bank Holding Corp (NYSE: MCB) is a small bank with a market capitalization of $659.7 million [1] - The bank has garnered interest due to its potential in the financial sector [1] Group 2 - Crude Value Insights focuses on investing in oil and natural gas, emphasizing cash flow generation [2] - The service aims to identify companies with value and growth prospects in the energy sector [2]

Company Overview - Metropolitan Bank Holding Corp. (MCB) shares increased by 5.3% to close at $66.52, with notable trading volume compared to typical sessions, and a total gain of 16.7% over the past four weeks [1][2] - MCB stock reached a new 52-week high of $67.35, driven by investor optimism regarding bank stocks following the U.S. presidential election results, with expectations of deregulation and favorable macroeconomic conditions [2] Earnings Expectations - The company is projected to report quarterly earnings of $1.49 per share, reflecting a year-over-year increase of 16.4%, with revenues expected to be $64.6 million, up 1.6% from the previous year [3] - The consensus EPS estimate for MCB has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - MCB is part of the Zacks Banks - Northeast industry, where Unity Bancorp (UNTY) also operates, having seen a 1.6% increase in its last trading session and a total return of 17.8% over the past month [4] - Unity Bancorp's consensus EPS estimate has remained unchanged at $1.08, representing a year-over-year change of 12.5%, and it holds a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - MCB Real Estate has withdrawn its acquisition proposal for Whitestone REIT, citing the Board's refusal to engage in meaningful discussions and conduct a strategic review process to maximize shareholder value [1][3][10] Summary by Relevant Sections Acquisition Proposal - MCB proposed to acquire Whitestone for $15 per share in an all-cash transaction, representing a 14.5% premium to the share price before the initial proposal and a 61.8% premium to the unaffected share price prior to a rumored proposal [2][3] Board Engagement - MCB has made multiple attempts to engage with the Whitestone Board, all of which were rebuffed, indicating a culture of entrenchment within the Board [2][4][7] Shareholder Sentiment - Other shareholders have expressed support for a potential transaction and share frustrations with the Board's lack of engagement [7][10] Board Composition - MCB notes the addition of new independent trustees, Kristian M. Gathright and Donald A. Miller, to the Whitestone Board, hoping they will bring a fresh perspective and uphold fiduciary duties [8][9] Future Actions - MCB remains a significant shareholder and will consider all options to ensure the Board fulfills its responsibilities to maximize shareholder value [11]

Financial Performance - Net income for Q3 2024 was $12.3 million, a decrease of $9.8 million from $22.1 million in Q3 2023, primarily due to a $20.3 million increase in non-interest expense[127] - For the nine months ended September 30, 2024, net income was $45.3 million, down $17.4 million from $62.7 million in the same period of 2023, attributed to a $41.0 million rise in non-interest expense[127] - Non-interest income decreased by $1.9 million to $19.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to lower GPG revenue[140] - Non-interest expense increased by $41.0 million to $135.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, largely due to a $10 million regulatory reserve and increased technology costs[142] Asset and Deposit Growth - Total assets increased to $7.4 billion as of September 30, 2024, reflecting a growth of $335.7 million, or 4.7%, from December 31, 2023[114] - Total deposits reached $6.3 billion, an increase of $532.6 million, or 9.3%, from December 31, 2023, with non-interest-bearing demand deposits comprising 28.4% of total deposits[121] - Total loans amounted to $5.9 billion, up by $272.3 million, or 4.8%, from December 31, 2023, driven primarily by a $315.1 million increase in CRE loans[116] - The Company had $611.9 million in unused loan commitments and $36.6 million in standby and commercial letters of credit as of September 30, 2024[145] Loan Quality and Credit Losses - Non-performing loans decreased to $30.9 million, or 0.53% of total loans, down from $51.9 million, or 0.92%, at December 31, 2023[120] - The allowance for credit losses (ACL) was $62.5 million, an increase from $58.0 million at December 31, 2023, with a provision of $4.8 million recorded for the nine months ended September 30, 2024[120] Interest Income and Margin - Interest income increased by $22.6 million to $120.5 million in Q3 2024 compared to $97.9 million in Q3 2023, driven by a $606.2 million increase in the average balance of loans[135] - The net interest margin for Q3 2024 was 3.62%, up from 3.27% in Q3 2023, reflecting an increase in loan yields and a decrease in borrowed funds[133] - The average yield on loans increased by 72 basis points in Q3 2024 compared to Q3 2023, due to rising market interest rates and disciplined loan pricing[135] - For the nine months ended September 30, 2024, the net interest margin was 3.49%, slightly down from 3.53% in the same period of 2023, due to increased funding costs[134] Interest Rate Sensitivity - As of September 30, 2024, a 200 basis points increase in interest rates would lead to a 6.53% decrease in net interest income, while a 200 basis points decrease would result in a 6.5% increase in net interest income[165] - The estimated effective tax rate for the nine months ended September 30, 2024, was 31.1%, up from 28.0% for the same period in 2023[143] - The Economic Value of Equity (EVE) would decrease by 14.14% with a 200 basis points increase in interest rates, and increase by 6.03% with a 200 basis points decrease[168] - The estimated EVE at September 30, 2024, is $554,520,000 under current interest rates[167] Capital and Funding - The Company had $150.0 million of FHLB advances as of September 30, 2024, compared to $99.0 million of Federal funds purchased at December 31, 2023[124] - At September 30, 2024, the Company maintained a Tier 1 risk-based capital ratio of 12.2%, up from 11.8% at December 31, 2023[156] - The total cost of deposits for Q3 2024 was 3.32%, up from 2.74% in Q3 2023, indicating rising funding costs[130] Asset Management and Risk - The company’s asset and liability management function aims to evaluate interest rate risk while maximizing net income and maintaining liquidity and capital[158] - The company primarily manages interest rate risk by structuring its balance sheet and occasionally using derivative contracts[160] - The sensitivity of projected annualized net interest income to interest rate changes is assessed through a simulation model[161] - The company’s asset and liability management committee regularly reviews the sensitivity of earnings and market value of assets and liabilities to interest rate changes[158] - The analysis of interest rate risk is crucial as fluctuations can impact both income and the fair value of interest-earning assets and liabilities[159]

The Whitestone Board Has Summarily Rejected and Refused to Engage Regarding MCB's Improved $15.00 per Share All-Cash Proposal, which would Deliver a 14.5% Premium to Whitestone ShareholdersMCB Urges the Whitestone Board and Management Team to Cease their Entrenchment Tactics and Answer Shareholders' QuestionsMCB Calls on Whitestone Shareholders to Make their Voices Heard; Visit www.MaximizingWhitestoneValue.com for More InformationBALTIMORE, Oct. 31, 2024 /PRNewswire/ -- MCB Real Estate ("MCB"), a leading c ...

HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) provided the following response to MCB’s recent indication of interest: P. David BrambleMCB Real EstateBaltimore, MD 21211 Dear Mr. Bramble, The Whitestone Board of Trustees has reviewed your October 9, 2024, indication of interest. The Board’s review considered the $15 per share indication of interest against numerous data points, including, but not limited to, sell side Net Asset Value, Net Asset Value u ...