- Metropolitan Bank Holding Corp MCB, the holding company for Metropolitan Commercial Bank, reported a first-quarter 2023 revenue increase of 21.2% Y/Y to $65.5 million, which missed the consensus of $66.6 million.
- Net interest income rose 25.5% Y/Y to $58.5 million, led by an increase of $936.4 million in the average balance of loans and the 156 basis point growth in the average loan yield. Net interest margin of 3.86%, was up 115 basis points Y/Y.
- Non-interest expense rose to $31.0 million from $24.6 million in Q1 2022 due to increased compensation and benefits along with higher professional fees.
- Loans increased 17.7% Y/Y to $4.9 billion, aided by an increase of $497.2 million in CRE loans (including owner-occupied) and $211.9 million in C&I loans.
- Total deposits stood at $5.1 billion, lower by 13.6% than a year ago, on a decline of $825.8 million in digital currency business deposits.
- The company disclosed that it is nearing end of the crypto-related vertical exit, with deposits from active institutional crypto-asset related clients accounting for 4% of total deposits as of March 31, 2023.
- EPS of $2.25 came above the consensus of $1.78.
- Allowance for credit losses rose to $47.8 million in Q1 2023 due to increased loans and the adoption of ASU No. 2016-13.
- As of March 31, 2023, MCB had cash on deposit with the Federal Reserve Bank of New York and an accessible secured funding capacity of $3.1 billion (208% of uninsured deposit balances).
- "Our capital, liquidity and financial position remain strong. While our lending growth was modest for the quarter, we continue to maintain our high credit quality standards and continued to see growth in core deposits. Global Payments revenue excluding Crypto continued to scale, quarter over quarter," said Mark DeFazio, President and CEO.
- Price Action: MCB shares are trading higher by 14.25% at $35.19 on the last check Wednesday.
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