Metropolitan Bank (US:MCB)2025-01-23 21:20Financial 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]