Metropolitan Bank Holding (MCB) AI Stock Analysis

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Metropolitan Bank Holding

(NYSE:MCB)

Rating:79Outperform

Price Target:―

Metropolitan Bank Holding's stock is supported by strong financial performance, robust growth in loans and deposits, and a solid balance sheet with no debt. While technical analysis shows mixed signals, the stock's valuation suggests it may be undervalued. Positive earnings call highlights and corporate events further bolster confidence in its growth potential, though caution is advised due to increased expenses and mixed technical indicators.

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

Market Cap

$689.39M

Dividend YieldN/A

Average Volume (3M)98.52K

Price to Earnings (P/E)10.9

Beta (1Y)1.27

Revenue Growth14.53%

EPS Growth-2.85%

CountryUS

Employees291

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.45

Shares Outstanding10,660,109

10 Day Avg. Volume57,293

30 Day Avg. Volume98,523

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.98

Price to Sales (P/S)0.00

P/FCF Ratio5.46

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$75.50

Price Target Upside19.03% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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 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 Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 14.25%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

The earnings call reflected strong growth in loans and deposits, continued margin expansion, and a successful share buyback program, indicating a positive business outlook. However, these were tempered by a decline in net income and earnings per share, elevated provision expenses, and increased non-interest expenses.

Q1-2025 Updates

Positive Updates

Impressive Loan and Deposit Growth

The bank grew loans by $308 million or 5.1% and deposits by $465 million or 7.8% in Q1 2025.

Continued Margin Expansion

Net Interest Margin (NIM) expanded by 2 basis points to 3.68%, marking the sixth consecutive quarter of margin expansion.

Share Buyback Program

The bank repurchased over 228,000 shares for $12.9 million, equating to more than 2% of outstanding shares at year-end 2024.

Strong Asset Quality and No Broad-Based Negative Trends

Asset quality remains strong with no broad-based negative trends in any loan segment or geography.

Technological Advancements

The bank's investment in new technology stack integration is on track to be completed by the end of 2025.

Negative Updates

Decrease in Net Income and Earnings Per Share

Net income was $16.3 million, down $5 million from the prior period. Diluted EPS was $1.45, down $0.43 from the prior period.

Elevated Provision Expense

First quarter provision expense was $4.5 million, including a $1 million reserve for a $2 million unsecured line of credit.

Increased Non-Interest Expenses

Non-interest expense increased by $4.5 million versus the prior quarter, related to seasonal increases and professional fees.

Company Guidance

During the Metropolitan Commercial Bank's First Quarter 2025 Earnings Call, the company's senior executives highlighted impressive financial performance and provided guidance for the year. The bank achieved substantial growth in loans and deposits, with loans increasing by $308 million (5.1%) and deposits rising by $465 million (7.8%). The net interest margin (NIM) expanded slightly to 3.68%, marking the sixth consecutive quarter of margin growth. The company reported earnings per share of $1.45 and increased its tangible book value per share by over 2.3% to $65.80. The bank continued its share buyback program, acquiring over 228,000 shares for $12.9 million. Looking ahead, the bank plans for loan growth between 10-12%, with an expected full-year NIM of 3.7% to 3.75%. Operating expenses, including new technology investments, are projected to be around $45 million for the second quarter. The bank remains committed to maintaining strong asset quality and capitalizing on strategic growth opportunities.

Metropolitan Bank Holding Financial Statement Overview

Summary

Metropolitan Bank Holding shows strong financial health with robust revenue growth and a solid balance sheet with no debt in 2024. Cash flow is strong, though attention is needed for profit margins and investment cash flow.

Income Statement

Very Positive

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.

Balance Sheet

Very Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
386.83M	276.91M	238.46M	255.75M	180.70M	141.92M
	Gross Profit
264.42M	276.91M	238.46M	255.75M	180.70M	141.92M
	EBIT
99.08M	97.08M	106.92M	128.48M	89.57M	57.92M
	EBITDA
49.78M	0.00	109.52M	99.40M	91.97M	60.46M
	Net Income Common Stockholders
66.84M	66.69M	77.27M	59.42M	60.55M	39.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	495.16M	20.84M	703.16M	2.93B	1.13B
	Total Assets
7.62B	7.30B	7.07B	6.27B	7.12B	4.33B
	Total Debt
323.02M	457.44M	613.63M	257.73M	57.17M	61.62M
	Net Debt
323.02M	257.17M	344.17M	307.00K	-2.30B	-802.68M
	Total Liabilities
6.88B	6.57B	6.41B	5.69B	6.56B	3.99B
	Stockholders Equity
737.85M	729.83M	659.02M	575.90M	556.99M	340.79M
Cash Flow		Free Cash Flow
130.20M	145.83M	36.68M	66.65M	33.28M	83.36M
	Operating Cash Flow
131.23M	148.46M	42.43M	85.89M	37.28M	87.27M
	Investing Cash Flow
-559.52M	-369.61M	-775.45M	-1.23B	-1.30B	-489.04M
	Financing Cash Flow
90.35M	151.96M	745.07M	-958.47M	2.76B	876.85M

Metropolitan Bank Holding Technical Analysis

Technical Analysis Sentiment

Positive

Last Price63.43

Price Trends

50DMA

59.37

Positive

100DMA

59.66

Positive

200DMA

58.16

Positive

Market Momentum

MACD

1.38

Positive

RSI

55.33

Neutral

STOCH

43.22

Neutral

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 63.43 is below the 20-day moving average (MA) of 65.25, above the 50-day MA of 59.37, and above the 200-day MA of 58.16, indicating a neutral trend. The MACD of 1.38 indicates Positive momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 43.22 is Neutral, 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 2 New Risks

Certain banking laws and the Company's governing documents may have an anti-takeover effect, and there are substantial regulatory limitations on changes of control of bank holding companies. Q4, 2024

The market price of the Company's common stock may be subject to substantial fluctuations, which may make it difficult for you to sell your shares at the volume, prices and times desired. Q4, 2024

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
MCB	79 Outperform	$689.39M	10.93	9.47%	―	14.53%	-2.85%
CCBG	77 Outperform	$643.65M	11.21	11.83%	2.41%	8.13%	11.18%
SMBC	77 Outperform	$595.06M	10.58	11.12%	1.71%	13.48%	8.31%
HTB	74 Outperform	$628.58M	11.36	9.96%	1.30%	5.23%	-7.72%
HBNC	70 Neutral	$652.64M	14.38	6.06%	4.31%	9.68%	90.70%
Sector *	64 Neutral	$12.79B	9.72	7.54%	16971.00%	12.07%	-7.53%
MOFG	57 Neutral	$598.49M	―	-8.74%	3.37%	-27.65%	-343.61%

* Financial Sector Average

Performance Comparison

MCB

Metropolitan Bank Holding

63.43

22.98

56.81%

CCBG

Capital City Bank

37.49

11.31

43.20%

HBNC

Horizon Bancorp

14.80

3.66

32.85%

MOFG

Midwestone Financial Group

28.26

8.22

41.02%

SMBC

Southern Missouri Bancorp

52.01

11.46

28.26%

HTB

Hometrust Bancshares

35.82

8.99

33.51%

Metropolitan Bank Holding Corporate Events

Business Operations and StrategyFinancial Disclosures

Metropolitan Bank Reports Strong Q1 2025 Results

Positive

Apr 21, 2025

Metropolitan Bank Holding Corp. reported strong financial results for the first quarter of 2025, with total loans increasing by 10.9% and deposits by 3.4% compared to the previous year. Despite a decrease in net income from the previous quarter, the company maintained a stable asset quality and a robust capital position, indicating a positive outlook for continued growth and strategic initiatives.

Spark’s Take on MCB Stock

According to Spark, TipRanks’ AI Analyst, MCB is a Outperform.

Metropolitan Bank Holding’s strong financial performance, particularly its robust balance sheet and cash flow, is a significant strength. The earnings call also supports a positive outlook, despite some challenges. The technical analysis provides mixed signals, and the valuation suggests the stock may be undervalued, offering a potentially good entry point. Overall, the stock presents a solid investment opportunity with a stable outlook.

To see Spark’s full report on MCB stock, click here.

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.