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Metropolitan Bank Holding (MCB)
NYSE:MCB
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Metropolitan Bank Holding (MCB) AI Stock Analysis

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MCB

Metropolitan Bank Holding

(NYSE:MCB)

Rating:78Outperform
Price Target:
$88.00
▲(11.51% Upside)
Metropolitan Bank Holding's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators show bullish momentum, though caution is advised due to potential overbought conditions. Valuation metrics are reasonable, supporting a positive outlook.

Metropolitan Bank Holding (MCB) vs. SPDR S&P 500 ETF (SPY)

Metropolitan Bank Holding Business Overview & Revenue Model

Company DescriptionMetropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area. The company offers checking, savings, term deposit, and money market accounts, as well as certificates of deposit. It also provides lending products, including commercial real estate, construction, multi-family, and one-to four-family real estate loans; commercial and industrial loans; consumer loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance and letters of credit; and term loans. In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit card services. It operates six banking centers in Manhattan, Brooklyn, Great Neck, and Long Island. Metropolitan Bank Holding Corp. was founded in 1999 and is headquartered in New York, New York.
How the Company Makes MoneyMetropolitan Bank Holding generates revenue through various key streams, primarily from interest income on loans and securities. The bank issues commercial and residential loans, for which it earns interest payments that typically constitute the largest portion of its revenue. Additionally, MCB earns non-interest income through fees associated with deposit accounts, transaction services, and wealth management solutions. Significant partnerships with local businesses and community organizations enhance its client base and expand its market reach, contributing to its earnings. The bank also benefits from a diversified funding base, which helps optimize its interest spread and overall profitability.

Metropolitan Bank Holding Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with continued growth in loans and deposits, expansion of the net interest margin, and significant shareholder value initiatives. However, the call also highlighted challenges such as increased provision expenses and specific loan reserves, along with declines in non-interest income and increased IT project costs.
Q2-2025 Updates
Positive Updates
Strong Loan and Deposit Growth
Outstanding loans increased by $271 million or 4.3%, and core deposits were up $342 million or 5.3% in the second quarter.
Net Interest Margin Expansion
Net Interest Margin (NIM) expanded by 15 basis points to 3.83% in the quarter, marking the seventh consecutive quarter of margin expansion.
Earnings and Revenue Growth
Earnings per share increased by 21% to $1.76, and total revenue grew by 8% from $70.5 million to $76.2 million.
Shareholder Value Initiatives
Completion of a $50 million share repurchase program and announcement of a second $50 million program, alongside the first-ever dividend on common stock.
Strong Asset Quality
No broad-based negative trends identified in any loan segment, geography, or sector impacting the portfolio.
Negative Updates
Provision Expense Increase
Provision expense increased to $6.4 million, primarily due to loan growth and adverse macroeconomic factors affecting the CECL model.
Specific Loan Reserve
A $2.4 million reserve was posted for a single non-performing loan.
Non-Interest Income Decline
Non-interest income was down $1 million, primarily due to the one-time income recognition of $800,000 in the prior period.
Increased IT Project Costs
One-time IT project costs increased by $1.4 million, with further costs expected to total $8 to $9 million for the remainder of 2025.
Company Guidance
During the second quarter of 2025 earnings call, Metropolitan Bank Holding Corp. provided guidance reflecting robust financial performance and strategic growth initiatives. The bank reported a 4.3% increase in outstanding loans, totaling $271 million, and a 5.3% rise in core deposits, equating to $342 million. The net interest margin (NIM) expanded by 15 basis points to 3.83%, marking the seventh consecutive quarter of margin growth. Earnings per share rose 21% from the first quarter, reaching $1.76, while the tangible book value per share increased by over 4% to $68.44. The bank completed a $50 million share repurchase program and announced another of the same amount, alongside declaring a dividend on common stock for the first time. The provision expense was $6.4 million, with a $2.4 million reserve for a single non-performing loan. Despite macroeconomic uncertainties, the bank remains confident in achieving over 12% loan growth for the year, supported by a diverse and strong deposit funding model. Operating expenses are projected to average approximately $45 to $46 million per quarter for the remainder of 2025, with the effective tax rate expected to stay around 30%. The bank continues to prioritize strategic market positioning and asset quality while preparing for technological integration by the first quarter of the following year.

Metropolitan Bank Holding Financial Statement Overview

Summary
Metropolitan Bank Holding demonstrates strong financial health with robust revenue growth, efficient operational management, and healthy profitability metrics. The balance sheet is solid with a prudent leverage ratio, though a low equity ratio needs monitoring. Cash flows are strong, with effective cash conversion, albeit with a recent decline in free cash flow growth.
Income Statement
85
Very Positive
Metropolitan Bank Holding shows strong financial performance with consistent revenue growth. The TTM reveals a gross profit margin of 54.61%, a net profit margin of 13.49%, and an EBIT margin of 19.41%, indicating efficient operational management. The revenue growth from 2024 to TTM is modest at 0.62%, but the long-term growth trajectory is robust, with a significant increase since 2020. The company maintains healthy profitability metrics, though the slight decline in EBIT over recent years suggests monitoring.
Balance Sheet
78
Positive
The balance sheet of Metropolitan Bank Holding shows a solid equity position with a debt-to-equity ratio of 0.41 in TTM, reflecting prudent financial leverage. The return on equity is strong at 9.06%, and the equity ratio stands at 9.69%, indicating a stable capital structure. While the company has managed its debt well, the relatively low equity ratio signals a potential area of concern if liabilities increase.
Cash Flow
80
Positive
The cash flow statement indicates strong operational cash generation with an operating cash flow to net income ratio of 1.96 in TTM. The free cash flow to net income ratio is 1.89, showing effective cash management. However, the free cash flow growth rate has slightly declined by 13.24% from 2024, suggesting the need for attention to maintain liquidity. Overall, cash flow remains robust, supporting financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue492.21M403.31M287.33M196.98M160.10M
Gross Profit270.66M238.46M245.63M176.88M132.44M
EBITDA85.67M114.06M106.61M94.63M62.52M
Net Income66.69M77.27M59.42M60.55M39.47M
Balance Sheet
Total Assets7.30B7.07B6.27B7.12B4.33B
Cash, Cash Equivalents and Short-Term Investments267.16M269.46M257.42M2.93B1.13B
Total Debt457.44M546.59M257.73M57.17M61.62M
Total Liabilities6.57B6.41B5.69B6.56B3.99B
Stockholders Equity729.83M659.02M575.90M556.99M340.79M
Cash Flow
Free Cash Flow145.83M36.68M66.65M33.28M83.36M
Operating Cash Flow148.46M42.43M85.89M37.28M87.27M
Investing Cash Flow-369.61M-775.45M-1.23B-1.30B-489.04M
Financing Cash Flow151.96M745.07M-958.47M2.76B876.85M

Metropolitan Bank Holding Technical Analysis

Technical Analysis Sentiment
Positive
Last Price78.92
Price Trends
50DMA
72.01
Positive
100DMA
66.50
Positive
200DMA
63.61
Positive
Market Momentum
MACD
1.29
Negative
RSI
69.30
Neutral
STOCH
89.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCB, the sentiment is Positive. The current price of 78.92 is above the 20-day moving average (MA) of 72.10, above the 50-day MA of 72.01, and above the 200-day MA of 63.61, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 69.30 is Neutral, neither overbought nor oversold. The STOCH value of 89.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$815.99M12.549.72%0.19%9.96%-0.17%
76
Outperform
$723.14M11.9610.60%0.87%2.03%4.81%
74
Outperform
$652.46M11.0211.29%1.63%11.79%17.30%
73
Outperform
$740.52M12.4811.69%2.17%9.68%13.46%
73
Outperform
$837.71M13.316.84%3.86%7.86%170.93%
68
Neutral
$17.82B11.9010.30%3.72%9.69%0.80%
56
Neutral
$626.16M-9.58%3.25%-35.26%-305.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCB
Metropolitan Bank Holding
78.92
27.04
52.12%
CCBG
Capital City Bank
43.74
10.28
30.72%
HBNC
Horizon Bancorp
16.60
1.42
9.35%
MOFG
Midwestone Financial Group
30.23
2.15
7.66%
SMBC
Southern Missouri Bancorp
57.78
1.87
3.34%
HTB
Hometrust Bancshares
41.51
6.03
17.00%

Metropolitan Bank Holding Corporate Events

Stock BuybackDividendsFinancial Disclosures
Metropolitan Bank Holding Announces First Cash Dividend
Positive
Jul 17, 2025

On July 17, 2025, Metropolitan Bank Holding Corp. announced its first cash dividend of $0.15 per share since its initial public offering in 2017, payable on August 11, 2025. The company also approved a new $50 million share repurchase plan, following the completion of a previous $50 million repurchase program in May 2025. These initiatives reflect the company’s robust financial performance, highlighted by a 21.4% increase in diluted earnings per share and a 15 basis point rise in net interest margin for the second quarter of 2025. The company’s strong balance sheet and capital position enable it to pursue strategic growth opportunities while returning capital to shareholders.

Executive/Board ChangesShareholder Meetings
Metropolitan Bank Holds Annual Stockholders Meeting
Neutral
May 30, 2025

On May 28, 2025, Metropolitan Bank Holding Corp. conducted its Annual Meeting of Stockholders, where approximately 92.18% of the outstanding shares were represented. During the meeting, all nominated directors were elected, while the proposal for executive compensation did not pass. The appointment of Crowe LLP as the independent auditor for 2025 was ratified, and an amendment to the 2022 Equity Incentive Plan was approved.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 23, 2025