Metropolitan Bank (MCB) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $16.2 million, or $1.46 per diluted share, up 14.1% from $14.6 million, or $1.28 per diluted share in Q4 2023[1]. - Net income for the period was $16,203,000, an increase from $14,568,000 in the previous quarter, representing a growth of about 11.2%[33]. - Net income available to common shareholders for the three months ended March 31, 2024, was $16,203,000, representing a 4.9% increase from $14,490,000 in the previous quarter, but a decrease from $24,992,000 in the same period last year[50]. - Basic earnings per share for the quarter were $1.46, up from $1.31 in the previous quarter, but down from $2.26 year-over-year[50]. Deposits and Loans - Total deposits increased to $6.2 billion, a rise of $500.3 million, or 8.7%, from Q4 2023, and up $1.1 billion, or 21.5%, from Q1 2023[5]. - Total loans reached $5.7 billion, an increase of $94.4 million, or 1.7%, from Q4 2023, and up $867.5 million, or 17.9%, from Q1 2023[4]. - Total deposits rose to $6,237,542,000, compared to $5,737,292,000 at the end of 2023, marking an increase of approximately 8.7%[30]. - Net loans reached $5,660,680,000, an increase from $5,566,832,000 at the end of 2023, reflecting a growth of about 1.7%[30]. Interest Income and Margin - Net interest margin for Q1 2024 was 3.40%, a slight increase from 3.36% in Q4 2023, but down from 3.86% in Q1 2023[10]. - Total interest income for the three months ended March 31, 2024, was $112,335,000, an increase of 6.4% from $105,267,000 in the previous quarter and a significant increase from $83,263,000 in the same period last year[47]. - Net interest income after provision for credit losses was $59,181,000, up 17.2% from $50,453,000 in the previous quarter, but slightly down from $57,888,000 year-over-year[47]. - The yield on average earning assets was 6.40%, up from 6.21% in the previous quarter, showing improved asset utilization[50]. Non-Interest Income and Expenses - Non-interest income for Q1 2024 was $7.0 million, an increase of $443,000 from Q4 2023[11]. - Non-interest income totaled $7,004,000, up from $6,561,000 in the previous quarter, indicating a growth of about 6.7%[33]. - Total non-interest expense increased to $41,900,000, compared to $37,147,000 in the prior quarter, reflecting a rise of approximately 12.5%[33]. - Non-interest expense rose to $41.9 million, an increase of $4.8 million from the prior quarter and $10.9 million year-over-year[36]. Assets and Equity - Total assets increased to $7,453,371,000 as of March 31, 2024, up from $7,067,672,000 at December 31, 2023, representing a growth of approximately 5.5%[30]. - Average total assets increased to $7,185,768,000 from $6,861,335,000 in the previous quarter, reflecting a growth of 4.7%[51]. - The total stockholders' equity increased to $673,541,000 from $659,021,000 at the end of 2023, reflecting a growth of about 2.5%[30]. - The book value per share (GAAP) increased to $60.18 from $59.57 in the previous quarter, reflecting a positive trend in shareholder equity[51]. Credit Quality - The ratio of non-performing loans to total loans was 0.91% at March 31, 2024, stable compared to 0.92% at December 31, 2023[20]. - The allowance for credit losses stood at $58,538,000, slightly up from $57,965,000 at the end of 2023, indicating a cautious approach to credit risk management[30]. - The allowance for credit losses was $58.538 million, representing 1.02% of total loans[34]. - Total non-accrual loans increased to $51.928 million, with a non-accrual loans to total loans ratio of 0.91%[34]. Operational Efficiency - The efficiency ratio for the quarter was 62.8%, compared to 58.4% in the previous quarter, indicating a decline in operational efficiency[50]. - The company is implementing a digital transformation project to enhance operational efficiencies[36]. - The Tier 1 leverage ratio for Metropolitan Bank Holding Corp. was 10.3%, down from 10.6% in the previous quarter[34]. - The total cost of funds for Q1 2024 was 330 basis points, up from 314 basis points in Q4 2023[17]. Loan Production - Loan production for Q1 2024 was $269.6 million, a decrease of 21.3% from $342.5 million in Q4 2023[34].