Metropolitan Bank (MCB) Earnings Transcript

Core Insights - Metropolitan Bank Holding Corp. is focusing on AI integration and aligning with regulatory expectations while maintaining strong asset quality and customer engagement [1][4] - The bank has initiated a $50 million share repurchase program and declared its first common stock dividend, demonstrating commitment to shareholder returns [2] - Year-to-date, deposits have increased by over $1 billion, reflecting an 18% growth without acquisitions, and the bank is expanding its branch network in strategic locations [3][4] Financial Performance - In the third quarter, loan growth was approximately $170 million or 2.6%, with a year-to-date increase of over 12% [4][8] - Net interest margin (NIM) rose to 3.88%, up five basis points from the previous quarter, with expectations for further expansion in the fourth quarter [12][13] - Net interest income for the third quarter was $77.3 million, marking a 5% increase from the prior quarter and over 18% year-over-year [13] Risk Management and Provisions - The bank's third-quarter provision expense was $23.9 million, primarily related to specific multifamily loans, with minimal actual credit losses historically [5][10] - The bank's analysis indicates that recent Medicaid and Medicare cutbacks will not materially affect borrowers [5] - The overall asset quality remains strong, with no significant credit issues identified in the loan portfolio [10][34] Future Outlook - The bank is well-positioned to benefit from favorable industry trends despite market volatility, with a focus on capturing additional market share and optimizing profitability [6][37] - The loan pipeline remains robust, with projections of $100 million to $200 million in additional loan growth for the remainder of the year [9][34] - The bank anticipates continued growth in deposits and a modest decline in the cost of interest-bearing deposits, enhancing NIM further [10][12]