Metropolitan Bank Holding Corp. Reports Second Quarter Net Income of $13.3 Million and Diluted EPS of $1.55

Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $13.3 million, or $1.55 per diluted common share, for the second quarter of 2021 compared to net income of $10.8 million, or $1.29 per diluted common share, for the second quarter of 2020.

Financial Highlights include:

  • Total revenues of $43.1 million, up 20.4% from the prior year quarter, and up 26.9% excluding gain on sale of securities1 recorded in each period
  • Second quarter earnings per share of $1.55, up 20.2% from the prior year quarter
  • Book value per share was $42.92 per share, up 14.2% and tangible book value per share1 was $41.75, up 14.7% from prior year quarter
  • Annualized return on average equity of 15.0% and an annualized return on average tangible common equity1 of 15.7%
  • Loans were up 6.5% from the linked quarter and 19.3% from June 30, 2020
  • Deposits were up 19.5% from the linked quarter and 55.8% from June 30, 2020, with non-interest bearing demand deposits increasing by $1.3 billion or 83.0% since June 30, 2020.
  • Efficiency ratio1 improved to 50.3% compared to 51.1% for the prior year quarter

Mark DeFazio, President and Chief Executive Officer, commented, “Our second quarter results, which underscore our sustainable and resilient organic growth, highlight the business model and values we developed 22 years ago when MCB was founded. At its core, MCB is a commercial bank that consistently drives organic loan and deposit growth, which provides sustainable growth in net income, tangible book value per share and EPS. Given our early strategic vision and foresight on industry change, we developed a unique ability to collaborate with fintech clients well before “fintech” was a term. Our Global Payments Group continues to pave the way for the transformation of MCB that allows us to simultaneously be a high performing commercial bank and a critical financial infrastructure partner to fintechs. Our Global Payments Group, with revenue growth and stable, non-interest-bearing deposits, continues to be a meaningful source of liquidity. As our fintech partners continue to gain market share, MCB is well positioned to benefit from this vertical’s low acquisition cost of deposits.

As we approach the end of our fourth year as a public company, I am reminded that our people make the difference. Without the dedication and effort of the entire MCB team, including through the challenges of the pandemic, we would not be able to deliver on our promise to our clients to help them build and sustain generational wealth. A heartfelt thank you goes out to the entire MCB team for all they do to make this a reality,” Mr. DeFazio concluded.


1non-GAAP financial measure. See Reconciliation of Non-GAAP measures starting on page 12.

Balance Sheet

The Company had total assets of $5.8 billion at June 30, 2021, an increase of 45.8% from June 30, 2020. Total loans net of deferred fees and unamortized costs increased to $3.5 billion at June 30, 2021, as compared to $2.9 billion at June 30, 2020. The increase in total loans from June 30, 2020 was due primarily to an increase of $225 million in commercial real estate (“CRE”) loans (including construction and multifamily loans) and $335 million in commercial and industrial loans. Loan production was $501 million year to date at June 30, 2021 compared to $330 million year to date at June, 30 2020.

Total cash and cash equivalents were $1,7 billion at June 30, 2021, an increase of 108.9% from June 30, 2020. The increase in cash and cash equivalents reflects the strong growth in deposits. Total securities, primarily those classified as available-for-sale (“AFS”), were $548 million at June 30, 2021, an increase of 181.0% from June 30, 2020 due to the deployment of excess liquidity from deposit growth.

Total deposits increased to $5.3 billion at June 30, 2021, up 55.8% from $3.4 billion at June 30, 2020. The increase in deposits was due to increases of $1.3 billion in non-interest-bearing deposits and $626 million in interest-bearing deposits, resulting from increases across most deposit verticals. Non-interest-bearing deposits were 52.8% of total deposits at June 30, 2021, as compared to 45.0% at June 30, 2020.

The Company and the Bank each meet all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 442.6% of total risk-based capital at June 30, 2021 compared to 422.0% of total risk based capital at June 30, 2020.

Income Statement

Financial Highlights

(dollars in thousands)

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Total Revenues

$

43,129

$

35,814

$

82,145

$

69,121

Net income

13,336

10,811

25,453

16,908

Diluted earnings per common share

1.55

1.29

2.45

2.01

Annualized return on average assets

0.97

%

1.14

%

1.01

%

0.94

%

Annualized return on average equity

14.98

%

13.82

%

14.58

%

10.95

%

Annualized return on average tangible common equity*

15.65

%

14.36

%

15.24

%

11.54

%

Net Interest Income

Net interest income for the second quarter of 2021 was $37.0 million, an increase of $2.6 million from the linked quarter. This increase was primarily due to a higher average balance of $5.5 billion in interest-earning assets for the second quarter of 2021, which increased $816 million from the linked quarter. This increase was partially offset by an increase of $253 million in average interest-bearing liabilities, which were $2.4 billion for the second quarter of 2021, as compared to $2.2 billion for the linked quarter.

Net interest income increased $6.8 million for the second quarter of 2021, as compared to the second quarter of 2020, primarily due to an increase of $1.7 billion in the average balance of interest-earning assets for the second quarter of 2021, as compared to the second quarter of 2020. This was partially offset by a $423 million increase in the average balance of interest-bearing liabilities for the second quarter of 2021, as compared to the second quarter of 2020.

Net Interest Margin

Net interest margin decreased by 32 basis points to 2.68% for the second quarter of 2021, as compared to 3.00% for the linked quarter, primarily due to increased lower yielding overnight deposits driven by deposit growth. Additionally, the average cost of interest-bearing deposits remained at 0.60%.

Net interest margin decreased by 51 basis points to 2.68% for the second quarter of 2021 as compared to 3.19% for the second quarter of 2020, primarily due to increased low yielding overnight deposits driven by deposit growth; partially offset by a decrease in the average cost of interest-bearing liabilities driven by the lower rate environment.

Total cost of funds was 32 basis points, a decrease of 3 basis points from the linked quarter, and a decrease of 16 basis points from the prior year quarter, given the shift in mix toward non-interest bearing deposits.

Non-Interest Income

Non-interest income was $6.2 million for the second quarter of 2021, an increase of $1.6 million from the linked quarter driven primarily by a $0.4 million increase in Global Payments Group revenue, which continues to see strong increases in client transaction volumes driving revenue growth, a $0.6 million increase in recognized gains on sales of AFS securities and an increase of $0.5 million in service charges and fees.

Non-interest income for the second quarter of 2021 increased by $0.5 million, as compared to the second quarter of 2020. The increase was primarily due to an increase of $1.5 million of Global Payments Group revenue, an increase of $0.7 million in service charges and fees, offset by a reduction in recognized gains on sales of AFS securities of $1.7 million.

Non-Interest Expense

Non-interest expense was $21.7 million for the second quarter of 2021, an increase of $1.4 million from the linked quarter. The primary drivers were a $0.7 million increase in professional fees and a $0.5 million increase in technology costs, both of which primarily related to business and volume growth.

Non-interest expense increased $3.4 million for the second quarter of 2021, as compared to the second quarter of 2020. Drivers included an increase in compensation and benefits cost due to additional full-time employees along with annual salary adjustments and increases in professional fees in line with business and volume growth, partially offset by reduced licensing fees given the LIBOR rate reduction.

Asset Quality

Credit quality remains strong with no charge offs in the second quarter of 2021, while non-performing loans fell to 0.2% of total loans. During the second quarter of 2021, the Company recorded a credit provision of $1.9 million primarily driven by loan growth. COVID-19 related full payment deferrals declined to $11.0 million, or 0.3% of the total loan portfolio as of June 30, 2021. Principal only deferrals remained steady at $37.3 million or 1.1% of total loans as of the same date.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank. The Bank provides a broad range of business, commercial and personal banking products and services to small and middle-market businesses, public entities and affluent individuals in the New York metropolitan area. Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island. The Bank is also an active issuer of debit cards for third-party debit card programs and provides critical global payments infrastructure to its fintech partners. the Bank is a New York State chartered commercial bank and a Federal Reserve System member bank whose deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (“FDIC”), and an equal opportunity lender. For more information, please visit www.mcbankny.com.

Forward Looking Statement Disclaimer

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s financial condition and capital ratios, results of operations and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to an unexpected deterioration in our loan or securities portfolios, unexpected increases in our expenses, greater than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel or existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in FDIC costs, changes in regulations, legislation or accounting rules and unanticipated adverse changes in our customers’ economic conditions or general economic conditions, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our cyber security risks may increase if a significant number of our employees are forced to working remotely; and FDIC premiums may increase if the agency experiences additional resolution costs. Forward-looking statements speak only as of the date of this release. We do not undertake any obligation to update or revise any forward-looking statement.

Consolidated Balance Sheet

(dollars in thousands)

June 30, 2021

December 31, 2020

June 30, 2020

Assets

Cash and due from banks

$

29,651

$

8,692

$

9,529

Overnight deposits

1,689,614

855,613

813,147

Total cash and cash equivalents

1,719,265

864,305

822,676

Investment securities available for sale

543,769

266,096

189,359

Investment securities held to maturity

2,222

2,760

3,319

Investment securities -- equity investments

2,291

2,313

2,301

Total securities

548,282

271,169

194,979

Other investments

11,989

11,597

15,731

Loans, net of deferred fees and unamortized costs

3,449,490

3,137,053

2,892,274

Allowance for loan losses

(37,377)

(35,407)

(32,505)

Net loans

3,412,113

3,101,646

2,859,769

Receivable from prepaid card programs, net

43,089

27,259

31,123

Accrued interest receivable

14,424

13,249

11,148

Premises and equipment, net

13,337

13,475

15,065

Prepaid expenses and other assets

14,961

18,388

10,217

Goodwill

9,733

9,733

9,733

Total assets

$

5,787,193

$

4,330,821

$

3,970,441

Liabilities and Stockholders' Equity

Deposits:

Non-interest-bearing demand deposits

$

2,794,136

$

1,726,135

$

1,526,439

Interest-bearing deposits

2,494,137

2,103,471

1,868,300

Total deposits

5,288,273

3,829,606

3,394,739

Federal Home Loan Bank of New York advances

104,000

Trust preferred securities

20,620

20,620

20,602

Subordinated debt, net of issuance cost

24,684

24,657

24,629

Secured borrowings

36,449

36,964

41,948

Accounts payable, accrued expenses and other liabilities

30,598

61,645

34,780

Accrued interest payable

1,773

712

1,199

Prepaid third-party debit cardholder balances

21,201

15,830

31,357

Total liabilities

5,423,598

3,990,034

3,653,272

Class B preferred stock

3

3

3

Common stock

83

82

82

Additional paid in capital

219,098

218,899

217,644

Retained earnings

146,283

120,830

98,271

Accumulated other comprehensive gain/(loss), net of tax effect

(1,872)

973

1,169

Total stockholders’ equity

363,595

340,787

317,169

Total liabilities and stockholders’ equity

$

5,787,193

$

4,330,821

$

3,970,441

Consolidated Statement of Income (unaudited)

Three Months Ended

Six Months Ended

(dollars in thousands)

June 30, 2021

March 31, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Total interest income

$

41,050

38,106

$

34,223

$

79,156

$

70,291

Total interest expense

4,077

3,684

4,062

7,760

11,159

Net interest income

36,973

34,422

30,161

71,396

59,132

Provision for loan losses

1,875

950

1,766

2,825

6,556

Net interest income after provision for loan losses

35,098

33,472

28,395

68,571

52,576

Non-interest income:

Service charges on deposit accounts

1,349

1,065

803

2,414

1,883

Global payments revenue

3,628

3,267

2,108

6,894

3,729

Other service charges and fees

566

304

411

868

1,036

Unrealized gain (loss) on equity securities

4

(41)

19

(36)

55

Gain on sale of securities

609

2,312

609

3,286

Total non-interest income

6,156

4,595

5,653

10,749

9,989

Non-interest expense:

Compensation and benefits

11,211

11,428

10,058

22,638

20,017

Bank premises and equipment

2,000

2,024

1,887

4,024

4,387

Professional fees

2,003

1,304

882

3,306

1,837

Technology costs

1,447

927

824

2,374

1,581

Licensing fees

2,067

2,074

2,636

4,141

5,684

Other expenses

2,961

2,566

1,997

5,528

4,291

Total non-interest expense

21,689

20,323

18,284

42,011

37,797

Net income before income tax expense

19,565

17,744

15,764

37,309

24,768

Income tax expense

6,229

5,627

4,953

11,856

7,860

Net income

$

13,336

12,117

$

10,811

$

25,453

$

16,908

Earnings per common share:

Average common shares outstanding - basic

8,312,234

8,276,174

8,221,748

8,294,404

8,218,853

Average common shares outstanding - diluted

8,543,474

8,417,319

8,359,450

8,479,562

8,391,514

Basic earnings

$

1.59

1.46

$

1.30

$

2.50

$

2.04

Diluted earnings

$

1.55

1.43

$

1.28

$

2.45

$

2.00

Net Interest Margin Analysis

Three months ended

June 30, 2021

March 31, 2021

Average

Average

Outstanding

Yield/Rate

Outstanding

Yield/Rate

(dollars in thousands)

Balance

Interest

(annualized)

Balance

Interest

(annualized)

Assets:

Interest-earning assets:

Loans (1)

$

3,334,762

$

39,234

4.65

%

$

3,187,450

$

36,840

4.67

%

Available-for-sale securities

487,147

1,204

0.98

%

330,451

752

0.91

%

Held-to-maturity securities

2,348

9

1.52

%

2,623

11

1.71

%

Equity investments - non-trading

2,309

7

1.20

%

2,302

8

1.39

%

Overnight deposits

1,612,187

442

0.11

%

1,100,690

344

0.13

%

Other interest-earning assets

11,985

154

5.15

%

11,610

151

5.27

%

Total interest-earning assets

5,450,738

41,050

2.98

%

4,635,126

38,106

3.32

%

Non-interest-earning assets

90,287

69,894

Allowance for loan and lease losses

(36,339)

(35,969)

Total assets

$

5,504,686

$

4,669,051

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Money market, savings and other interest-bearing accounts

$

2,314,791

$

3,348

0.58

%

$

2,058,611

$

2,907

0.57

%

Certificates of deposit

83,606

217

1.04

%

86,902

264

1.23

%

Total interest-bearing deposits

2,398,397

3,565

0.60

%

2,145,513

3171

0.60

%

Borrowed funds

45,296

512

4.47

%

45,282

513

4.53

%

Total interest-bearing liabilities

2,443,693

4,077

0.67

%

2,190,795

3,684

0.68

%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

2,603,198

2,067,539

Other non-interest-bearing liabilities

100,698

63,932

Total liabilities

5,147,589

4,322,266

Stockholders' equity

357,097

346,785

Total liabilities and equity

$

5,504,686

$

4,669,051

Net interest income

$

36,973

$

34,422

Net interest rate spread (2)

2.31

%

2.64

%

Net interest-earning assets

$

3,007,045

$

2,444,331

Net interest margin (3)

2.68

%

3.00

%

Ratio of interest earning assets to interest bearing liabilities

2.23

x

2.12

x

Total cost of funds (4)

0.32

%

0.35

%


(1) Amount includes deferred loan fees and non-performing loans.
(2) Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets.
(3) Determined by dividing annualized net interest income by total average interest-earning assets.
(4) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Three months ended

June 30, 2021

June 30, 2020

Average

Average

Outstanding

Yield/Rate

Outstanding

Yield/Rate

(dollars in thousands)

Balance

Interest

(annualized)

Balance

Interest

(annualized)

Assets:

Interest-earning assets:

Loans (1)

$

3,334,762

$

39,234

4.65

%

$

2,827,154

$

32,983

4.68

%

Available-for-sale securities

487,147

1,204

0.98

%

138,944

609

1.73

%

Held-to-maturity securities

2,348

9

1.52

%

3,423

16

1.85

%

Equity investments - non-trading

2,309

7

1.20

%

2,274

11

1.91

%

Overnight deposits

1,612,187

442

0.11

%

794,377

374

0.19

%

Other interest-earning assets

11,985

154

5.15

%

18,485

230

4.92

%

Total interest-earning assets

5,450,738

41,050

2.98

%

3,784,657

34,223

3.62

%

Non-interest-earning assets

90,287

59,014

Allowance for loan and lease losses

(36,339)

(31,446)

Total assets

$

5,504,686

$

3,812,225

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Money market, savings and other interest-bearing accounts

$

2,314,791

$

3,348

0.58

%

$

1,764,742

$

2,437

0.56

%

Certificates of deposit

83,606

217

1.04

%

97,688

478

1.97

%

Total interest-bearing deposits

2,398,397

3,565

0.60

%

1,862,430

2,915

0.63

%

Borrowed funds

45,296

512

4.47

%

158,471

1,147

2.86

%

Total interest-bearing liabilities

2,443,693

4,077

0.67

%

2,020,901

4,062

0.81

%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

2,603,198

1,398,438

Other non-interest-bearing liabilities

100,698

78,159

Total liabilities

5,147,589

3,497,498

Stockholders' equity

357,097

314,727

Total liabilities and equity

$

5,504,686

$

3,812,225

Net interest income

$

36,973

$

30,161

Net interest rate spread (2)

2.31

%

2.81

%

Net interest-earning assets

$

3,007,045

$

1,763,756

Net interest margin (3)

2.68

%

3.19

%

Ratio of interest earning assets to interest bearing liabilities

2.23

x

1.87

x

Total cost of funds (4)

0.32

%

0.48

%


(1) Amount includes deferred loan fees and non-performing loans.
(2) Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets.
(3) Determined by dividing annualized net interest income by total average interest-earning assets.
(4) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Summary of Income and Performance Measures

Five Quarter Trend (unaudited)

Quarter Ended

(Dollars in thousands)

June 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Net interest income

$

36,973

$

34,422

$

33,467

$

32,324

$

30,161

Provision for loan losses

1,875

950

1,795

1,137

1,766

Net interest income after provision for loan losses

35,098

33,472

31,672

31,187

28,395

Non-interest income

6,156

4,595

3,373

3,637

5,653

Non-interest expense:

Compensation and benefits

11,211

11,428

9,835

9,944

10,058

Other expense

10,478

8,895

7,953

8,986

8,226

Total non-interest expense

21,689

20,323

17,788

18,930

18,284

Income before income tax expense

19,565

17,744

17,257

15,894

15,764

Income tax expense

6,229

5,627

5,482

5,111

4,953

Net income

13,336

12,117

11,775

10,783

10,811

Pre-tax, pre-provision income*

$

21,440

$

18,694

$

19,052

$

17,031

$

17,530

Performance Measures:

Net income available to common shareholders

13,252

12,062

11,690

10,694

10,716

Per common share:

Basic earnings

$

1.59

$

1.46

$

1.42

$

1.30

$

1.30

Diluted earnings

$

1.55

$

1.43

$

1.39

$

1.27

$

1.29

Common shares outstanding:

Average - diluted

8,543,474

8,417,319

8,417,729

8,393,211

8,359,450

Period end

8,344,193

8,345,032

8,295,272

8,289,479

8,294,801

Return on (annualized):

Average total assets

0.97

%

1.05

%

1.13

%

1.07

%

1.14

%

Average equity

14.98

%

14.17

%

13.94

%

13.20

%

13.82

%

Average tangible common equity*

15.65

%

14.82

%

14.61

%

13.85

%

14.36

%

Yield on average earning assets

2.98

%

3.32

%

3.54

%

3.54

%

3.62

%

Cost of interest-bearing liabilities

0.67

%

0.68

%

0.64

%

0.71

%

0.81

%

Net interest spread

2.31

%

2.64

%

2.90

%

2.83

%

2.81

%

Net interest margin

2.68

%

3.00

%

3.21

%

3.18

%

3.19

%

Net charge-offs as % of average loans (annualized)

%

0.11

%

%

%

0.03

%

Efficiency ratio

50.29

%

52.09

%

48.28

%

52.64

%

54.58

%

*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.

Consolidated Balance Sheet Summary, Five Quarter Trend (unaudited)

(dollars in thousands)

June 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Assets

Total assets

$

5,787,193

$

4,922,801

$

4,330,821

$

4,001,759

$

3,970,441

Overnight deposits

1,689,614

1,125,589

855,613

758,913

813,147

Total securities

548,282

484,761

271,169

187,695

194,979

Other investments

11,989

11,638

11,597

11,097

15,731

Loans, net of deferred fees and unamortized costs

3,449,490

3,237,664

3,137,053

2,989,550

2,892,274

Liabilities and Stockholders' Equity

Deposits:

Non-interest-bearing demand deposits

$

2,794,136

$

2,167,899

$

1,715,042

$

1,553,241

$

1,526,439

Interest-bearing deposits

2,494,137

2,258,818

2,103,471

1,974,385

1,868,300

Total deposits

5,288,273

4,426,717

3,814,513

3,527,626

3,334,739

Borrowings

45,304

45,290

45,277

45,263

149,249

Total stockholders' Equity

363,595

348,217

340,787

328,584

317,169

Loan Production

$

265.4

$

235.7

$

174.0

$

183.3

$

177.3

Asset Quality

Non-performing loans:

Non-accrual loans:

Commercial and industrial

3,337

3,337

4,192

4,512

6,482

Consumer

1,560

1,523

1,428

1,157

601

Total non-accrual loans

$

4,897

$

4,860

$

5,620

$

5,669

$

7,083

Total non-performing loans

$

5,491

$

5,464

$

6,389

$

6,623

$

8,448

Non-accrual loans to total loans

0.14

%

0.15

%

0.18

%

0.19

%

0.24

%

Non-performing loans to total loans

0.16

%

0.17

%

0.20

%

0.22

%

0.29

%

Allowance for loan losses

(37,377)

(35,502)

(35,407)

(33,614)

(32,505)

Allowance for loan losses to total loans

1.08

%

1.10

%

1.13

%

1.12

%

1.12

%

Charge-offs

$

$

(855)

$

(30)

$

(82)

$

(192)

Recoveries

$

$

$

28

$

54

$

7

Net charge-offs/(recoveries) as % of average loans (annualized)

%

0.11

%

%

0.03

%

Regulatory Capital

Tier 1 Leverage:

Metropolitan Bank Holding Corp.

6.8

%

7.8

%

8.5

%

8.4

%

8.6

%

Metropolitan Commercial Bank

7.3

%

8.2

%

9.0

%

9.0

%

9.2

%

Common Equity Tier 1 Risk-Based (CET1):

Metropolitan Bank Holding Corp.

9.7

%

9.9

%

10.1

%

10.1

%

9.9

%

Metropolitan Commercial Bank

11.1

%

11.3

%

11.6

%

11.8

%

11.6

%

Tier 1 Risk-Based:

Metropolitan Bank Holding Corp.

10.5

%

10.7

%

10.9

%

11.0

%

10.8

%

Metropolitan Commercial Bank

11.1

%

11.3

%

11.6

%

11.8

%

11.6

%

Total Risk-Based:

Metropolitan Bank Holding Corp.

12.2

%

12.4

%

12.7

%

12.9

%

12.7

%

Metropolitan Commercial Bank

12.2

%

12.4

%

12.7

%

12.9

%

12.6

%

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following table:

Quarterly Data

YTD

Dollars in thousands, except per share data

June 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

June 30, 2021

June 30, 2020

Average assets

$

5,504,686

$

4,669,051

$

4,153,908

$

4,026,366

$

3,812,225

$

5,089,152

$

3,633,280

Less: average intangible assets

9,733

9,733

9,733

9,733

9,733

9,733

9,733

Average tangible assets

$

5,494,953

$

4,659,318

$

4,144,175

$

4,016,633

$

3,802,492

$

5,079,419

$

3,623,547

Average equity

$

357,097

$

346,785

$

335,940

$

324,876

$

314,727

$

351,945

$

310,607

Less: Average preferred equity

5,502

5,502

5,502

5,502

5,502

5,502

5,502

Average common equity

$

351,595

$

341,283

$

330,438

$

319,374

$

309,225

$

346,443

$

305,105

Less: average intangible assets

9,733

9,733

9,733

9,733

9,733

9,733

9,733

Average tangible common equity

$

341,862

$

331,550

$

320,705

$

309,641

$

299,492

$

336,710

$

295,372

Total assets

$

5,787,193

$

4,922,801

$

4,330,821

$

4,001,759

$

3,970,441

$

5,787,193

$

3,970,441

Less: intangible assets

9,733

9,733

9,733

9,733

9,733

9,733

9,733

Tangible assets

$

5,777,460

$

4,913,068

$

4,321,088

$

3,992,026

$

3,960,708

$

5,777,460

$

3,960,708

Total equity

$

363,595

$

348,217

$

340,787

$

328,584

$

317,169

$

363,595

$

317,169

Less: preferred equity

5,502

5,502

5,502

5,502

5,502

5,502

5,502

Common equity

$

358,093

$

342,715

$

335,285

$

323,082

$

311,667

$

358,093

$

311,667

Less: intangible assets

9,733

9,733

9,733

9,733

9,733

9,733

9,733

Tangible common equity (book value)

$

348,360

$

332,982

$

325,552

$

313,349

$

301,934

$

348,360

$

301,934

Common shares outstanding

8,344,193

8,345,032

8,295,272

8,289,479

8,294,801

8,344,193

8,294,801

Book value per share (GAAP)

$

42.92

$

41.07

$

40.42

$

38.97

$

37.57

$

42.92

$

37.57

Tangible book value per share (non-GAAP)*

$

41.75

$

39.90

$

39.25

$

37.80

$

36.40

$

41.75

$

36.40

Total revenue (GAAP)**

$

43,129

$

39,017

$

33,467

$

32,234

$

35,814

$

82,145

$

69,121

Gain on sale of securities

609

-

-

-

2,312

609

3,286

Revenue excluding gain on sale of

securities (non-GAAP)

$

42,520

$

39,017

$

33,467

$

32,234

$

33,502

$

81,536

$

65,835


* Tangible book value divided by common shares outstanding at period-end.
** Total revenue equals net interest income plus non-interest income.

Quarterly Data

Dollars in thousands

June 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sept. 30, 2020

June 30, 2020

Net income

$

13,336

$

12,117

$

11,775

$

10,783

$

10,811

Plus: income tax expense

6,229

5,627

5,482

5,111

4,953

Income before income tax expense

$

19,565

$

17,744

$

17,257

$

15,894

$

15,764

Plus: provision for loan losses

1,875

950

1,795

1,137

1,766

Pre-tax, pre-provision income

$

21,440

$

18,694

$

19,052

$

17,031

$

17,530

Total non-interest expense (GAAP)

$

21,689

$

20,323

$

17,788

$

18,930

$

18,284

Total Revenue (GAAP)

$

43,129

$

39,017

$

36,840

$

35,961

$

35,814

Efficiency ratio (non-GAAP)

50.3

%

52.1

%

48.3

%

52.6

%

51.1

%

Contacts:

Heather Quinn
212-365-6721
IR@MCBankNY.com

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