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Sep 30, 2022

Metropolitan Bank Q3 2022 Earnings Report

Reported net income with revenues increased 48.1% year-over-year and loans increased 28.1% year-over-year.

Key Takeaways

Metropolitan Bank Holding Corp. reported a strong third quarter with net income of $25.0 million, or $2.23 per diluted common share, driven by strong loan growth and efficient capital leverage.

Net interest income increased 55.2% year-over-year to $63.3 million.

Net income increased 53.9% year-over-year to $25.0 million.

Diluted earnings per share increased 26.0% year-over-year to $2.23.

Loans totaled $4.6 billion, an increase of 28.1% year-over-year.

Total Revenue
$69.1M
Previous year: $46.7M
+48.1%
EPS
$2.23
Previous year: $1.77
+26.0%
Net Interest Margin
3.85%
Previous year: 2.7%
+42.6%
Return on Average Tangible Common Equity
17.1%
Efficiency Ratio
45.1%
Gross Profit
$69.1M
Previous year: $46.7M
+48.1%
Cash and Equivalents
$709M
Previous year: $1.9B
-62.7%
Total Assets
$6.42B
Previous year: $6.1B
+5.3%

Metropolitan Bank

Metropolitan Bank

Forward Guidance

Management expressed confidence in MCB's ability to navigate the challenging economic outlook, citing its discipline in margin management and asset quality, branch-lite franchise model, and overall efficiencies.

Positive Outlook

  • Maintaining discipline toward margin management.
  • Maintaining discipline toward asset quality
  • Operating a branch-lite franchise.
  • Developing many deposit verticals.
  • Leveraging platform effectively.

Challenges Ahead

  • Challenging economic outlook for the industry.
  • Liquidity in the industry is at a premium.
  • Pricing is a challenge.
  • Next several quarters will be interesting.
  • Economic periods over the past two decades have been challenging.