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Sep 30, 2024

Metropolitan Bank Q3 2024 Earnings Report

Reported strong operating results underscored by increased net interest margin.

Key Takeaways

Metropolitan Bank Holding Corp. reported a net income of $12.3 million, or $1.08 per diluted common share, for the third quarter of 2024. The net interest margin increased to 3.62%, and total loans and deposits also saw increases.

Net interest margin increased by 18 basis points to 3.62% compared to the previous quarter.

Total loans increased by $58.2 million from the prior quarter to $5.9 billion.

Total deposits increased by $100.2 million from the prior quarter to $6.3 billion.

Diluted earnings per share were $1.08, impacted by $12.6 million of pre-tax expenses.

Total Revenue
$71.5M
Previous year: $60.1M
+19.1%
EPS
$1.86
Previous year: $1.97
-5.6%
Net Interest Margin
3.62%
Previous year: 3.27%
+10.7%
Non-Performing Loans to Total Loans
0.53%
Previous year: 0.58%
-8.6%
Gross Profit
$71.5M
Previous year: $60.1M
+19.1%
Cash and Equivalents
$318M
Previous year: $177M
+79.5%
Free Cash Flow
$4.17M
Total Assets
$7.4B
Previous year: $6.68B
+10.8%

Metropolitan Bank

Metropolitan Bank

Forward Guidance

The company expects financial results to benefit from the recent reduction in the Fed Funds target rate and any additional monetary policy easing in the future and is well positioned to deliver financial outperformance relative to its peers.

Positive Outlook

  • Anticipated benefits from reduced Fed Funds target rate.
  • Potential gains from future monetary policy easing.
  • Well-positioned for financial outperformance.
  • Strong underlying business fundamentals.
  • Continued strength and growth in net interest margin.

Challenges Ahead

  • Lingering effects of high short-term interest rates.
  • Intense competition for deposits.
  • Runoff of lower cost GPG deposits.
  • Replacement of lower cost GPG deposits with market rate deposits.
  • Shift from non-interest bearing deposits to interest bearing funding.