Metropolitan Bank (US:MCB)2026-01-21 15:02Financial Data and Key Metrics Changes - The company reported a net interest margin (NIM) of 4.1% in Q4 2025, an increase of 22 basis points from the previous quarter [10] - Net interest income for Q4 was $85.3 million, up more than 10% quarter-over-quarter and nearly 20% year-over-year [11] - The diluted EPS for the quarter was $2.77, with non-core credits impacting earnings by approximately $0.30 per share [12] Business Line Data and Key Metrics Changes - The loan portfolio expanded by approximately $775 million in 2025, representing a growth of nearly 13% [3] - Total loan originations for the year reached approximately $1.9 billion [3] - In Q4, total loan originations and draws were approximately $599 million, with a weighted average coupon of 7.28% [8] Market Data and Key Metrics Changes - Deposits increased by roughly $1.4 billion, or about 23%, for the year [4] - In Q4, deposits grew by $304 million, or approximately 4.3% [9] - The cost of interest-bearing deposits declined by 43 basis points quarter-over-quarter [9] Company Strategy and Development Direction - The company aims to capture additional market share through traditional channels while enhancing long-term shareholder value [5] - New branches are planned in Florida and New Jersey to strengthen market presence [4] - The strategy includes managing asset quality, optimizing profitability, and expanding in New York and complementary markets [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of asset quality, with no broad-based negative trends observed [4] - The company anticipates modest NIM expansion in 2026, with a forecasted annual NIM of about 4.10% [16] - The outlook for non-interest income suggests a growth assumption of 5%-10% [17] Other Important Information - The effective tax rate for the quarter was about 30% [15] - The company plans to host an Investor Day on March 3rd, 2026, to discuss further developments [19] Q&A Session Summary Question: Loan mix and C&I growth - Management indicated that core C&I growth is not expected to be substantial, with a focus on healthcare-related C&I [21][23] Question: Asset quality and NPAs - Management reported that two loans in the multifamily sector are expected to have little or no loss upon sale, with ongoing workouts for specific reserves [29][30] Question: CET1 ratio targets - The CET1 ratio is currently about 10.7%, with expectations to trend towards low nines as the balance sheet grows [31][32] Question: Digital transformation completion - The digital transformation is anticipated to be completed by President's Day weekend, with expenses expected to finalize at that time [37][39] Question: Demand deposit growth contributors - The largest contributors to demand deposit growth were municipal deposits and property managers, with a broad distribution across various sectors [42] Question: M&A opportunities - Management does not see significant value in current M&A opportunities and will focus on organic growth instead [44] Question: Team lift-out strategy - Management indicated that team lift-outs are unlikely, preferring to acquire talent within existing markets [47]