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Metropolitan Bank Holding Corp. (MCB)
:MCB
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Metropolitan Bank Holding (MCB) AI Stock Analysis

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MCB

Metropolitan Bank Holding

(NYSE:MCB)

Rating:73Outperform
Price Target:
$77.00
▲(11.14% Upside)
Metropolitan Bank's strong financial performance and positive earnings call contribute significantly to the stock's score, with a stable balance sheet and growth in key metrics. Technical analysis indicates moderate momentum but potential short-term weakness. Valuation shows the stock is fairly priced, with a modest dividend yield.

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

Metropolitan Bank Holding Business Overview & Revenue Model

Company DescriptionMetropolitan Bank Holding Corp. (MCB) is a bank holding company headquartered in New York, primarily focused on providing a range of commercial banking products and services. Operating through its wholly owned subsidiary, Metropolitan Commercial Bank, the company serves small and medium-sized businesses, public entities, and affluent individuals. Metropolitan Bank offers a variety of banking solutions, including deposit products, cash management services, and lending products, as well as serving niche markets such as payments and fintech sectors.
How the Company Makes MoneyMetropolitan Bank Holding Corp. generates revenue primarily through the interest income from its loan portfolio and investment securities. The bank offers various loan products, such as commercial real estate loans, commercial and industrial loans, and consumer loans. Interest income from these loans constitutes a significant portion of the company's earnings. Additionally, MCB earns non-interest income through service charges, fees related to its deposit products, and other banking services. The company also benefits from partnerships with fintech companies and payment processors, which contribute to its fee income and broaden its revenue streams.

Metropolitan Bank Holding Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: -9.03%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance, with significant growth in loans, deposits, and net interest margin. The company also demonstrated robust earnings per share and book value growth, alongside successful share repurchase and dividend announcements. However, increased provision expenses and IT project costs were noted as challenges. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.
Q2-2025 Updates
Positive Updates
Loan and Deposit Growth
Outstanding loans increased by $271 million or 4.3%, and core deposits were up $342 million or 5.3%.
Net Interest Margin Expansion
Net interest margin (NIM) expanded by 15 basis points to 3.83%, marking the seventh consecutive quarter of margin expansion.
Earnings Per Share Increase
Reported earnings per share for the second quarter was $1.76, a 21% increase from the first quarter.
Book Value Growth
Tangible book value per share increased by more than 4% to $68.44, marking the tenth consecutive quarter of book value accretion.
Successful Share Repurchase Program
Completed a $50 million share repurchase program and announced a second $50 million program.
Dividend Announcement
Announced a dividend on common stock, the first in the company's history as a publicly traded company.
Strong Asset Quality
Excellent asset quality with no broad-based negative trends identified in any loan segment.
Revenue and Net Income Growth
Total revenue grew by 8% from $70.5 million to $76.2 million. Net income for the second quarter was $18.8 million, up more than 15% versus the prior period.
Negative Updates
Provision Expense Increase
Second quarter provision expense was $6.4 million, reflecting loan growth and adverse movements in forecasted macroeconomic factors.
Reserve for Non-Performing Loan
A $2.4 million reserve was posted for a single non-performing loan.
Non-Interest Income Decline
Second quarter non-interest income decreased by $1 million, primarily due to the absence of a one-time income recognition of $800,000 from the previous period.
Increase in IT Project Costs
A $1.4 million increase in one-time IT project costs, with further IT costs expected for the remainder of 2025.
Company Guidance
During Metropolitan Bank Holding Corp.'s second quarter 2025 earnings call, the company provided robust guidance indicating continued growth and stability. Key metrics highlighted include a 4.3% increase in outstanding loans, amounting to $271 million, and a 5.3% rise in core deposits, totaling $342 million. The net interest margin (NIM) expanded by 15 basis points to 3.83%, marking the seventh consecutive quarter of margin growth. The bank reported a second-quarter earnings per share of $1.76, a 21% increase from the previous quarter, and a 4% rise in tangible book value per share to $68.44. Net income for the quarter was $18.8 million, and total revenue grew by 8% to $76.2 million. The call also mentioned the completion of a $50 million share repurchase program and the announcement of a second $50 million buyback. Additionally, the bank declared its first-ever dividend on common stock. Despite economic uncertainties, the company remains optimistic about further balance sheet growth, supported by strong credit metrics and a diversified deposit funding model. The bank expects loan growth of over 12% for the year and anticipates further NIM expansion, projecting an annual NIM of approximately 3.80%.

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
Neutral
Last Price69.28
Price Trends
50DMA
69.54
Negative
100DMA
63.90
Positive
200DMA
62.31
Positive
Market Momentum
MACD
-0.19
Positive
RSI
40.57
Neutral
STOCH
10.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCB, the sentiment is Neutral. The current price of 69.28 is below the 20-day moving average (MA) of 73.41, below the 50-day MA of 69.54, and above the 200-day MA of 62.31, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$680.70M11.3010.63%0.63%2.03%5.15%
74
Outperform
$601.04M10.2311.29%1.75%11.79%17.30%
73
Outperform
$721.99M11.219.72%0.22%9.96%-0.17%
73
Outperform
$678.66M12.906.84%4.26%7.82%170.93%
71
Outperform
$663.72M11.4011.69%2.44%9.68%13.46%
67
Neutral
$17.01B11.659.80%3.95%10.59%1.50%
51
Neutral
$565.97M-9.58%3.63%-35.27%-305.95%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCB
Metropolitan Bank Holding
69.28
24.98
56.39%
CCBG
Capital City Bank
38.89
7.62
24.37%
HBNC
Horizon Bancorp
15.39
1.57
11.36%
MOFG
Midwestone Financial Group
27.25
1.84
7.24%
SMBC
Southern Missouri Bancorp
53.19
4.46
9.15%
HTB
Hometrust Bancshares
38.79
6.05
18.48%

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.

The most recent analyst rating on (MCB) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Metropolitan Bank Holding stock, see the MCB Stock Forecast page.

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.

The most recent analyst rating on (MCB) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Metropolitan Bank Holding stock, see the MCB Stock Forecast page.

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 02, 2025