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Metropolitan Bank Holding (MCB)
NYSE:MCB
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Metropolitan Bank Holding
(NYSE:MCB)
76Outperform
Metropolitan Bank Holding (MCB) vs. S&P 500 (SPY)
Market Cap
$640.51M
Dividend YieldN/A
Average Volume (3M)104.27K
Price to Earnings (P/E)9.6
Beta (1Y)1.56
Revenue Growth22.03%
EPS Growth-14.18%
CountryUS
Employees277
SectorFinancial
Sector Strength81
IndustryBanking
Share Statistics
EPS (TTM)5.92
Shares Outstanding11,225,125
10 Day Avg. Volume141,204
30 Day Avg. Volume104,271
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)N/A
Price to Sales (P/S)2.29
Price to Cash Flow (P/CF)1.90
P/FCF Ratio1.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.50Price Target Upside39.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Metropolitan Bank Holding Business Overview & Revenue Model
Company DescriptionMetropolitan Bank Holding Corp. (MCB) is a bank holding company headquartered in New York City, primarily operating through its wholly-owned subsidiary, Metropolitan Commercial Bank. The bank provides a range of financial services and products to small and mid-sized businesses, commercial real estate entities, and retail clients. It offers traditional banking services such as deposits, loans, and cash management services, focusing on delivering personalized banking solutions to its clientele.
How the Company Makes MoneyMetropolitan Bank Holding primarily generates revenue through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank extends various loans, including commercial real estate loans, commercial and industrial loans, and consumer loans, which are significant contributors to its interest income. Additionally, MCB earns non-interest income from fees and service charges associated with its banking services, including transaction processing, account maintenance, and other ancillary financial services. The bank's strategic partnerships with fintech companies contribute to its earnings by expanding its payment processing capabilities and enhancing its service offerings.
Metropolitan Bank Holding Financial Statement Overview
Summary
Metropolitan Bank Holding exhibits strong financial health with impressive revenue and cash flow growth, alongside a robust balance sheet with no debt in 2024. The company has effectively managed its operations and maintained strong equity, although some attention to profit margins and investment cash flow may be prudent. Overall, the financial outlook is positive, with a stable growth trajectory.Income Statement
Metropolitan Bank Holding has demonstrated robust revenue growth over the years, with a significant increase in total revenue from 2023 to 2024. The gross profit margin remains high, indicating effective cost management. However, the net profit margin in 2024 is slightly lower compared to previous years, which may warrant attention despite the strong overall performance.85
Very Positive
Balance Sheet
The balance sheet is strong with no total debt reported in 2024, significantly improving the debt-to-equity ratio. The equity ratio is healthy, and return on equity remains robust, showcasing the company's strong financial stability and effective use of equity capital. The company has maintained a strong liquidity position.90
Very Positive
Cash Flow
Operating cash flow has improved significantly in 2024, indicating strong cash generation from core operations. Free cash flow shows healthy growth, supporting financial flexibility. However, the cash flow from investing activities remains negative, suggesting potential ongoing investments or asset purchases.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 468.38M | 238.46M | 255.75M | 180.70M | 141.92M | Gross Profit |
| 468.38M | 238.46M | 255.75M | 180.70M | 141.92M | EBIT |
| 447.06M | 106.92M | 128.48M | 89.57M | 57.92M | EBITDA |
| 0.00 | 109.52M | 99.40M | 91.97M | 60.46M | Net Income Common Stockholders |
| 66.69M | 77.27M | 59.42M | 60.55M | 39.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 495.16M | 20.84M | 703.16M | 2.93B | 1.13B | Total Assets |
| 7.30B | 7.07B | 6.27B | 7.12B | 4.33B | Total Debt |
| 0.00 | 613.63M | 257.73M | 57.17M | 61.62M | Net Debt |
| -13.08M | 344.17M | 307.00K | -2.30B | -802.68M | Total Liabilities |
| 6.57B | 6.41B | 5.69B | 6.56B | 3.99B | Stockholders Equity |
| 729.83M | 659.02M | 575.90M | 556.99M | 340.79M |
| Cash Flow | Free Cash Flow | |||
| 148.46M | 36.68M | 66.65M | 33.28M | 83.36M | Operating Cash Flow |
| 148.46M | 42.43M | 85.89M | 37.28M | 87.27M | Investing Cash Flow |
| -369.61M | -775.45M | -1.23B | -1.30B | -489.04M | Financing Cash Flow |
| 151.96M | 745.07M | -958.47M | 2.76B | 876.85M |
Metropolitan Bank Holding Technical Analysis
Negative
57.06
Price Trends
59.65
Negative
60.78
Negative
55.13
Positive
Market Momentum
-0.85
Negative
43.12
Neutral
58.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCB, the sentiment is Negative. The current price of 57.06 is above the 20-day moving average (MA) of 55.78, below the 50-day MA of 59.65, and above the 200-day MA of 55.13, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 58.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCB.
Metropolitan Bank Holding Risk Analysis
Metropolitan Bank Holding disclosed 36 risk factors in its most recent earnings report. Metropolitan Bank Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Metropolitan Bank Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $640.51M | 9.64 | 9.60% | ― | 22.03% | -14.18% | |
68 Neutral | $1.23B | 18.73 | 5.60% | 2.69% | 4.29% | -9.78% | |
65 Neutral | $5.03B | 13.03 | 5.38% | 4.87% | 6.09% | -26.94% | |
64 Neutral | $702.39M | 10.95 | 16.07% | 3.11% | 11.80% | 24.53% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% | |
61 Neutral | $4.99B | 12.73 | 7.62% | 4.22% | 6.80% | 1.48% | |
46 Neutral | $442.14M | 16.43 | -4.49% | 6.72% | -3.66% | -196.64% |
* Financial Sector Average
Performance Comparison
MCB
Metropolitan Bank Holding
55.61
19.18
52.65%
BHLB
Berkshire Hills
26.15
4.50
20.79%
FFIC
Flushing Financial
12.74
0.95
8.06%
UBSI
United Bankshares
34.40
0.70
2.08%
VLY
Valley National Bancorp
8.78
1.31
17.54%
MCBS
MetroCity Bankshares
27.65
4.39
18.87%
Metropolitan Bank Holding Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -6.43% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for MCB, with robust net income growth, successful strategic initiatives, and strong asset quality. However, there were challenges like decreased total deposits in Q4 and reduced noninterest income due to the GPG exit.Highlights
Strong Fourth Quarter Performance
MCB generated net income of $21.4 million or $1.88 per share, with quarterly net interest income increasing 16.9% compared to Q4 2023.
Successful Exit from BaaS Business
MCB successfully exited the BaaS business, which was a significant operational achievement.
Deposit Growth Amidst BaaS Exit
Despite exiting the BaaS business, MCB increased total deposits by over $245 million last year and by $705 million since the end of 2022.
Positive Asset Quality
No new nonperforming credits were reported, and asset quality remains strong with no broad-based negative trends.
Technological Advancements
Investment in the new technology stack is expected to be completed by the end of the year, already showing returns on investment within the payments platform.
Promising Loan Growth
Loan growth in the quarter was $137 million, with a weighted average coupon on new volume originations at 7.8%.
Lowlights
Decrease in Total Deposits in Q4
Total deposits decreased by approximately $285 million in the fourth quarter due to the completion of the GPG exit.
Reduction in Noninterest Income
Noninterest income for the fourth quarter was $4.4 million, with a linked quarter decline of $1.9 million primarily due to the decline in GPG income.
Increased Noninterest Expenses
Noninterest expenses totaled $38.2 million in the fourth quarter, excluding settlement reserves, which is a 6.2% decline from the third quarter but includes $900,000 related to digital transformation and other onetime costs.
Company Guidance
During the fourth quarter 2024 earnings call for Metropolitan Commercial Bank (MCB), key performance metrics and strategic guidance were discussed. MCB reported a net income of $21.4 million, or $1.88 per share, and a 16.9% increase in quarterly net interest income compared to the previous year. The bank successfully exited the BaaS business, resulting in a deposit increase of over $245 million in 2024 and $705 million since the end of 2022. The adjusted return on average tangible common equity (ROATCE) was 12.3% for the quarter, with expectations to reach mid-teens in the next 12 to 18 months. The net interest margin (NIM) increased by 4 basis points to 3.66%, with a normalized estimate of 3.55%. For 2025, MCB anticipates loan growth of 9-11%, deposit growth to fund this expansion, and a full-year NIM between 3.7% and 3.75%. Noninterest income is projected to grow by 5-6%, and noninterest expenses are estimated at $175 million to $177 million, including $11 million in one-time costs related to digital transformation projects. Asset quality remains strong, with no new nonperforming credits, and the effective tax rate is expected to be between 31% and 32%.Metropolitan Bank Holding Corporate Events
Business Operations and StrategyFinancial Disclosures
Metropolitan Bank Highlights Strong Financial Performance in 2024
Positive
Jan 23, 2025
Metropolitan Bank Holding Corp. reported strong financial performance for the fourth quarter and full year of 2024, achieving a net interest margin of 3.66% and an increase in total loans and deposits compared to previous periods. The company successfully exited its 22-year-old Banking as a Service (BaaS) business and advanced its digital transformation initiative, setting the stage for enhanced performance in 2025 with strategic growth initiatives and maintaining a solid capital position. The company remains well-capitalized with strong liquidity, highlighting its strategic execution in a dynamic market environment.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.