Core Viewpoint - MCB Real Estate has increased its buyout bid for Whitestone REIT (WSR) to $15 per share, which is significantly above WSR's recent trading price, indicating potential immediate gains for shareholders [1][21]. Valuation of WSR - WSR's estimated Net Asset Value (NAV) is $16.71 per share based on consensus from five sell-side analysts [9][10]. - The proposed buyout price of $15 per share implies a cap rate of approximately 7%, while WSR was trading at a 7.7% cap rate prior to the offer, suggesting the buyout price may undervalue the company [11][13]. - A fair cap rate for WSR's assets, considering their location and growth potential, could be between 5.5% and 6.0%, which would value WSR closer to $18-$20 per share [13]. - The buyout price of $15 per share corresponds to a multiple of 17.4X estimated Adjusted Funds From Operations (AFFO), which is in line with the retail REIT average but below the shopping center REIT average [14]. Competing Bidders - The initial bid of $14 was made when REITs faced high capital costs, limiting competition. However, with declining interest rates and improved liquidity, there is potential for competing bids from other REITs or private equity [15][16]. - InvenTrust Properties Corp. and Kimco Realty Corporation are potential acquirers, with Kimco being known for consolidating retail REITs [16][17]. Standalone Outlook for WSR - WSR's fundamentals appear strong, with rising occupancy and rental rates leading to healthy same-store Net Operating Income (NOI) growth [18]. - The company has improved its cost of capital, allowing for external growth opportunities, and the shopping sector fundamentals are favorable due to low new supply growth [18][19]. - WSR is not in a position where it needs to accept a buyout, as it can continue to grow independently [19]. Consideration of the Buyout Offer - The $15 per share offer is viewed as too low given WSR's asset value, and engaging in negotiations for a higher counteroffer around $17 per share could be beneficial for shareholders [20]. - Even after the stock price increase of 6% following the buyout announcement, WSR remains an attractive investment opportunity, offering potential upside and dividends [21][22].

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Investors in Metropolitan Bank Holding Corp. (MCB) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $17.50 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other ...

Financial Data and Key Metrics Changes - The company reported a net interest margin (NIM) increase of four basis points to 3.44% in the second quarter, marking the third consecutive quarter of NIM expansion [3][6] - Earnings per share (EPS) for the second quarter was $1.50, which included a $0.34 net impact from the GPG wind down and digital transformation expenses [4] - Non-interest income expectations for 2024 have been slightly increased to $20 million to $22 million, with a forecast for BaaS revenue to total $9 million to $11 million [10][12] Business Line Data and Key Metrics Changes - The loan book grew by approximately $120 million in the second quarter, with significant contributions from commercial and industrial (C&I) loans and commercial real estate (CRE) loans [7] - The weighted average coupon on new loan originations was 8.81%, while the coupon on upcoming loan maturities for the remainder of 2024 is closer to 7.5% [8] - Non-interest expenses totaled $42.3 million in the second quarter, with $1.7 million related to the digital transformation project and $3.8 million for regulatory remediation [10][11] Market Data and Key Metrics Changes - Deposits declined by approximately $68 million, primarily due to a $60 million decrease in GPG deposits, although there was a $70 million increase in property manager deposits [8] - The company expects to replace the outflow of GPG deposits with core deposits, with a blended cost of remaining balances around 1.5% [23] Company Strategy and Development Direction - The company is focused on the wind down of the GPG business and the digital transformation project, both of which are on schedule and within budget [4] - A more conservative approach to loan growth has been adopted, with a revised forecast of approximately $500 million to $600 million for the full year 2024 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the core commercial banking franchise and noted no broad-based negative trends impacting the loan portfolio [5] - The company anticipates material enhancements in regulatory remediation processes and expects significant costs associated with these to end by the end of the year [20] Other Important Information - The effective tax rate for the quarter was approximately 30%, with expectations to rise to 31% to 32% going forward [12] - The company has a digital transformation budget of $12 million to $13 million, with expectations to complete the project in 2025 [11] Q&A Session Summary Question: Expectations on GPG deposits exit - Management expects about $350 million to exit in the current quarter and $450 million in the fourth quarter [16] Question: Key sources of funding to replace deposits - The company plans to rely on existing verticals and sees opportunities in lending customers [17] Question: Loan growth factors - The slower loan growth is attributed to pricing discipline rather than a lack of demand [19] Question: Update on regulatory remediation process - Management reported good progress and alignment with regulators, expecting costs to materially decrease by year-end [20] Question: Breakdown of remaining GPG deposits - The blended cost of remaining balances is around 1.5% [23] Question: NIM guidance assumptions - The NIM guidance assumes that deposits with a 4% handle will replace the entirety of the GPG deposits [24] Question: Handling of multi-family loans - Multi-family loans that came due were refinanced elsewhere, as the company has not engaged significantly in that space [31] Question: Impact of CrowdStrike situation - There was a minor service disruption affecting ACH postings and payroll, but it has been rectified [43]

• Help clients build and sustain generational wealth. Total Return Performance Since IPO relative to KRX² and NYC Banks³,Ī Well Managed Net Interest Margin Deposits ($ bn) 4 Proven Growth-Oriented Business Model with Strong Risk Management, Poised to Deliver Significant Shareholder Value 15.8% 6.5% Metropolitan Commercial Bank KRX Index² 2 1 Represents effective average daily Fed Funds rate. Deposit Profile at June 30, 2024 Service Areas 1 Forward-looking statements speak only as of the date of this present ...

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Metropolitan Bank Holding performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 62.4% versus 59.3% estimated by two analysts on average. Net Interest Margin: 3.4% compared to the 3.4% average estimate based on two a ...

Metropolitan Bank Holding Corp. (MCB) came out with quarterly earnings of $1.50 per share, missing the Zacks Consensus Estimate of $1.57 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.46%. A quarter ago, it was expected that this company would post earnings of $1.28 per share when it actually produced earnings of $1.46, delivering a surprise of 14.06%. Over the last four quart ...

Exhibit 99.1 Release: 4:05 P.M. July 18, 2024 212-365-6721 IR@MCBankNY.com Metropolitan Bank Holding Corp. Reports Second Quarter 2024 Results Strong Earnings, Liquidity, Capital and Asset Quality While Executing Strategic Initiatives Financial Highlights Balance Sheet Total cash and cash equivalents were $244.7 million at June 30, 2024, a decrease of $289.7 million, or 54.2%, from March 31, 2024 and an increase of $42.9 million, or 21.3%, from June 30, 2023. The decrease from March 31, 2024, primarily refl ...

Core Viewpoint - Metropolitan Bank Holding Corp. (MCB) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2024, with actual results being a significant factor influencing its near-term stock price [1]. Earnings Expectations - The company is expected to post quarterly earnings of $1.57 per share, reflecting a year-over-year change of +14.6% [2]. - Revenues are projected to be $68.02 million, representing a 10.4% increase from the same quarter last year [4]. Analyst Insights - The consensus EPS estimate has been revised 0.65% lower over the last 30 days, indicating a reassessment by covering analysts [4]. - The Most Accurate Estimate for MCB is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +5.73%, suggesting a more optimistic outlook from analysts [16]. Historical Performance - In the last reported quarter, MCB was expected to earn $1.28 per share but exceeded expectations with earnings of $1.46, achieving a surprise of +14.06% [8]. - Over the past four quarters, MCB has beaten consensus EPS estimates two times [19]. Market Context - The earnings report is scheduled for release on July 18, 2024, and could influence the stock's movement depending on whether the results meet or exceed expectations [12]. - The company currently holds a Zacks Rank of 5, indicating a less favorable outlook compared to other stocks [7].

LukaTDB When it comes to the current fiscal year, the picture looks a bit different. Net interest income continued its descent, dropping from $57.9 million in the first quarter of last year to $52.9 million the same time this year. In addition to suffering from a larger debt balance and a surge in costly deposits, the bank took a hit from its net interest margin. This managed to fall from 3.86% last year to 3.40% this year. Also, when I say that deposits are costly, the total cost of deposits in the most re ...