Metropolitan Bank (US:MCB)2025-04-22 14:02Financial Data and Key Metrics Changes - The company reported a loan growth of $300 million, or 5.1%, and a deposit growth of $465 million, or 7.8% [4][10] - The net interest margin (NIM) expanded by two basis points to 3.68% from 3.66% in the prior quarter, marking the sixth consecutive quarter of margin expansion [5][12] - Earnings per share (EPS) was reported at $1.45, down $0.43 from the prior period, with net income at $16.3 million, down $5 million [13][14] - Tangible book value per share increased by more than 2.3% to $65.8, marking the ninth consecutive quarter of book value accretion [6] Business Line Data and Key Metrics Changes - Total loan originations and draws were approximately $490 million at a weighted average coupon of about 7.84%, while payoffs and paydowns totaled approximately $185 million at a weighted average coupon of 7.44% [10] - The provision expense for the first quarter was $4.5 million, supporting continued loan growth [7][15] Market Data and Key Metrics Changes - The company has not identified any broad-based negative trends in any loan segment, geography, or sector impacting its portfolio [7] - The company reported a decline in the cost of interest-bearing deposits by 32 basis points and a decline in the cost of total deposits by six basis points [12] Company Strategy and Development Direction - The company aims to capture additional market share through traditional channels while positioning itself for potential strategic opportunities to increase shareholder value [8] - The full integration of a new technology stack is expected to be completed by the end of the year, which will support the company's diversified and growing commercial bank [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties, citing strong liquidity, capital, and earnings [3] - The company anticipates loan growth of 10% to 12% for the year, with a full-year NIM expected to be between 3.7% and 3.75% [17][18] Other Important Information - The effective tax rate for the quarter was approximately 30% [17] - The company has been actively discussing the potential for introducing a small dividend to broaden the shareholder base [30] Q&A Session Summary Question: Clarification on expense numbers and future operating expenses - The CFO indicated that second-quarter operating expenses are expected to be closer to $45 million, including IT spend adjustments [23][24] Question: Impact of Gold Card program on EB-5 business - Management believes the Gold Card program could be a complementary product to the existing EB-5 program without disrupting core business [26][27] Question: Seasonal patterns in deposit growth - Management confirmed there are no significant seasonal patterns affecting deposit growth [28][29] Question: Competitive pressures on loans and deposits - Management stated there is no significant competition in New York City [38] Question: Loan pipeline status and future growth - Management confirmed the loan pipeline is strong and in line with historical performance, with good growth expected [42] Question: EB-5 related deposits and potential program changes - The company has approximately $400 million in EB-5 related deposits and does not foresee immediate risks from potential program changes [46][48]