Metropolitan Bank Holding Corp. - FORM 8-K - EX-99.1

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8-K - Metropolitan Bank Holding Corp.	form8k.htm

METROPOLITAN BANK HOLDING CORP REPORTS NET INCOME OF
$6.3 MILLION FOR QUARTER ENDED MARCH 31, 2018

Results Driven By Significant Loan Growth, Widening Margins And Strong Asset Quality

NEW YORK, April 25, 2018 – Metropolitan Bank Holding Corp. (NYSE:MCB), the holding company (the "Company") for Metropolitan Commercial Bank (the "Bank"), today reported net income of $6.3 million, or $0.75 per diluted common share, for the first quarter of 2018 (Q1 2018) compared to $3.3 million, or $0.49 per diluted common share, for the fourth quarter of 2017 (Q4 2017), and $2.5 million, or $0.55 per diluted common share, for the first quarter of 2017 (Q1 2017).

The Company had solid growth in loans and deposits during the quarter. Loans increased to $1.5 billion at March 31, 2018, an increase of $105 million, or 7.5%, from December 31, 2017, and an increase of $428 million, or 39.0% from March 31, 2017. Total deposits increased $213 million, or 15%, to $1.6 billion during Q1 2018, reflecting increases in non-interest bearing demand, money market and savings deposits. Deposits increased $600 million as compared to Q1 2017. Asset quality remained strong and continued to improve. Non-accrual loans were $85,000, or 0.01% of total loans, at March 31, 2018, versus $3.4 million, or 0.24% of total loans, at December 31, 2017.

Mark DeFazio, the Company's CEO and President, commented, "The strong momentum we experienced in 2017 continues and we are off to a good start for 2018. We were pleased with our solid asset quality and the growth we are experiencing in many of our key metrics such as revenue, core funding, loans and net interest margin. We improved our return on assets and return on equity in the quarter and we expect these metrics to maintain their upward trajectory."

"We continue to focus on key strategic growth drivers such as core deposits, loans, and the cash management business, and on the enterprise-wide risk management processes required to sustain our positive performance. Our diversification on both sides of the balance sheet positions us well to generate solid yields and differentiates us from our peers while balancing risk appropriately," said Mr. DeFazio.

The Bank's deposit gathering initiatives are diversified and include a number of verticals leading to a solid core deposit base. Along with lending and non-borrowing retail relationships, the Bank also obtains deposits through its debit card issuing business and relationships with digital currency related businesses, which maintain non-interest-bearing corporate and settlement accounts with the Bank. As a policy, these settlement account balances are not incorporated into the Bank's funding strategies. The Bank's policy is to keep corporate deposit accounts related to digital currencies that are used for funding to less than 10% of its total deposit base.

Earnings Highlights

	Three months ended									Change Mar 31, 2018 vs.
	Mar 31, 2018			Dec 31, 2017			Mar 31, 2017			Dec 31, 2017			Mar 31, 2017
Net income	$	6,291		$	3,326		$	2,548			89	%		147	%
Diluted earnings per share	$	0.75		$	0.49		$	0.55			53	%		37	%
Annualized return on average assets		1.35	%		0.81	%		0.83	%
Annualized return on average tangible common equity*		11.18	%		10.67	%		8.13	%
*Average tangible common equity = average common equity less goodwill

Results of Operations

Net income was $6.3 million, or $0.75 diluted earnings per common share, in Q1 2018 compared to $3.3 million, or $0.49 diluted earnings per common share, in Q4 2017. Q4 2017 net income included a provision expense related to the Bank's taxi medallion portfolio of $2.2 million after tax and a net tax expense of $1.6 million due to the recently enacted Tax Cuts and Jobs Act. Excluding these items, adjusted (non-GAAP) net income and diluted EPS in Q4 2017 were $7.1 million and $1.04, respectively. Compared to Q1 2017, net income increased by $3.7 million and diluted EPS increased by $0.20 or 36%.

•

Return on average assets was 1.35%, an improvement of 54 basis points compared to Q4 2017 and 52 basis points compared to Q1 2017.

•

The Company's efficiency ratio in the first quarter of 2018 improved to 51.5% from 60.2% in the first quarter of 2017.

Net Interest Income and Margin
(dollars in thousands)	Three months ended									Change Mar 31, 2018 vs.
(dollars in thousands)	Mar 31, 2018			Dec 31, 2017			Mar 31, 2017			Dec 31, 2017			Mar 31, 2017
Average earning assets	$	1,818,524		$	1,785,784		$	1,238,309			2	%		47	%
Net interest income	$	16,451		$	15,571		$	10,781			6	%		53	%
Net interest margin		3.67	%		3.49	%		3.60	%

Net Interest Margin Analysis

	Three months ended
(dollars in thousands)	Mar 31, 2018								Dec 31, 2017								Mar 31, 2017
(dollars in thousands)	Average Outstanding Balance			Interest		Yield/Rate			Average Outstanding Balance			Interest		Yield/Rate			Average Outstanding Balance			Interest		Yield/Rate
Interest-earning assets:
Loans	$	1,476,955		$	17,147		4.71	%	$	1,397,700		$	16,304		4.63	%	$	1,065,820		$	11,867		4.52	%
Available-for-sale securities		31,833			166		2.09	%		33,322			172		2.06	%		43,144			222		2.06	%
Held-to-maturity securities		5,318			27		2.09	%		5,559			28		2.01	%		6,357			41		2.60	%
Other interest-earning assets		304,418			1,288		1.72	%		349,203			1,360		1.55	%		122,988			311		1.16	%
Total interest-earning assets		1,818,524			18,628		4.15	%		1,785,784			17,864		3.97	%		1,238,309			12,441		4.09	%
Non-interest-earning assets		66,311								43,323								9,667
Allowance for loan and lease losses		(15,584	)							(15,322	)							(11,940	)
Total assets	$	1,869,251							$	1,813,785							$	1,236,036
Loans/Total Interest-Earning Assets		81.22	%							78.27	%							86.07	%
Interest-bearing liabilities:
Money market and savings accounts	$	514,455		$	1,190		0.94	%	$	559,339		$	1,277		0.91	%	$	533,228		$	1,004		0.75	%
Certificates of deposit		72,822			249		1.39	%		82,020			280		1.35	%		84,178			258		1.23	%
Total interest-bearing deposits		587,277			1,439		0.99	%		641,359			1,557		0.96	%		617,406			1,262		0.83	%
Borrowed funds		84,317			738		3.53	%		88,488			736		3.30	%		102,609			398		1.58	%
Total interest-bearing liabilities		671,594			2,177		1.31	%		729,847			2,293		1.25	%		720,015			1,660		0.93	%
Non-interest-bearing deposits		935,417								868,117								382,290
Other non-interest-bearing liabilities		23,223								37,074								22,892
Total liabilities		1,630,234								1,635,038								1,125,197
Equity		239,017								178,747								110,839
Total liabilities and equity	$	1,869,251							$	1,813,785							$	1,236,036

Net interest income				$	16,451							$	15,571							$	10,781
Net interest rate spread							2.84	%							2.72	%							3.16	%
Net interest-earning assets	$	1,146,930							$	1,055,937							$	518,294
Net interest margin							3.67	%							3.49	%							3.60	%

Net interest margin improved by 7 basis points from Q1 2017. The improvement was mainly the result of a $580 million increase in average interest earning assets, led by $411 million higher average loan balances from increased activity in the commercial and industrial, multi-family and commercial real estate loan portfolios. In addition to increased average loan volume, net interest margin benefited from a 18 basis point increase in average loan yields.

•

Net interest margin also benefited from the effect of higher average non-interest-bearing deposits in Q1 2018, which replaced higher priced interest-bearing deposits compared to Q1 2017.

•

When compared to Q4 2017, net interest income improved $880 thousand, or 6.0%, largely due to the effect of a $32.7 million increase in interest-earning assets, composed of $79.3 million of loan growth, partially offset by a $44.8 million reduction in comparatively lower yielding other interest-earning assets. Yields on loans were 8 basis points higher than Q4 2017, driven by a $184 million increase in average commercial and industrial loan balances.

•

On a net basis, average deposit balances increased $13 million from 4Q 2017. The shift in mix toward higher non-interest-bearing balances of $935 million in Q1 2018, compared to $868 million in Q4 2017, moderated the impact of recent Federal Reserve rate increases on the Bank's cost of funds.


Asset Quality (dollars in thousands) At end of quarter	Three months ended									Change Mar 31, 2018 vs.
Asset Quality (dollars in thousands) At end of quarter	Mar 31, 2018			Dec 31, 2017			Mar 31, 2017			Dec 31, 2017			Mar 31, 2017
Non-accrual loans:
Real Estate:
Commercial	$	-		$	787		$	858			-100	%		-100	%
One-to-four family		-			2,447			-			-100	%		0	%
Commercial and industrial		-			-			3,660			0	%		-100	%
Consumer		85			155			-			-45	%		0	%
Total non-performing loans	$	85		$	3,389		$	4,518			-97	%		-98	%
Accruing loans past due 90 days or more	$	-		$	-		$	-			0	%		0	%
Non-accrual loans as % of loans outstanding		0.01	%		0.24	%		0.42	%

Allowance for loan losses	$	16,260		$	14,887		$	12,236			9	%		33	%
Allowance for loan losses as % of loans outstanding		1.07	%		1.05	%		1.11	%

For the period
Provision for loan losses	$	1,477		$	3,499		$	570			-58	%		159	%
Net charge-offs	$	104		$	3,687		$	149			-97	%		-30	%
Net charge-offs as % of loans outstanding		0.01	%		0.26	%		0.01	%

Provision for loan losses was $1.5 million, a decrease of $2.0 million from Q4 2017 and an increase of $0.9 million over Q1 2017. Other than the effect of the Q4 2017 $3.7 million charge-off related to taxi medallion loans, the loan loss provisions have primarily been driven by loan growth.

•

The allowance for loan losses as a percentage of loans outstanding was 1.07% at March 31, 2018, versus 1.05% at December 31, 2017 and 1.11% at March 31, 2017.

•

Non-performing loans totaled $85,000 at March 31, 2018, down from $3.4 million at December 31, 2017 and $4.5 million at March 31, 2017.

•

On March 31, 2018 total Commercial Real Estate (CRE) was 2.88% of risk-based capital, compared to 2.73% on December 31, 2017 and 3.79% on March 31, 2017.

Non-Interest Income and Expense

Non-Interest Income
(dollars in thousands)	Three months ended						Change Mar 31, 2018 vs.
(dollars in thousands)	Mar 31, 2018		Dec 31, 2017		Mar 31, 2017		Dec 31, 2017			Mar 31, 2017
Service charges on deposit accounts	$	1,910	$	1,820	$	291		5	%		556	%
Other service charges and fees		2,494		3,429		166		-27	%		1400	%
Loan prepayment penalties		65		71		-		-8	%		0	%
Debit card income		908		929		788		-2	%		15	%
Total non-interest income	$	5,377	$	6,249	$	1,245		-14	%		332	%

Non-interest income declined $0.9 million from Q4 2017, driven by lower cash management fees. The increase of $4.1 million in non-interest income over Q1 2017 was the result of the growth of the Company's cash management business.


Non-Interest Expense
(dollars in thousands)	Three months ended						Change Mar 31, 2018 vs.
(dollars in thousands)	Mar 31, 2018		Dec 31, 2017		Mar 31, 2017		Dec 31, 2017			Mar 31, 2017
Compensation and benefits	$	6,317	$	5,478	$	4,577		15	%		38	%
Bank premises and equipment		1,180		1,200		1,073		-2	%		10	%
Director fees		361		229		174		57	%		107	%
Insurance expense		76		77		79		-1	%		-3	%
Professional fees		778		771		410		1	%		90	%
Data processing fees		1,368		542		251		152	%		445	%
Other expenses		1,158		1,482		670		-22	%		73	%
Total non-interest expense	$	11,238	$	9,779	$	7,234		15	%		55	%

Non-interest expense increased $1.5 million from Q4 2017, driven by increased staff levels, performance related incentive payments, and data processing expenses. Non-interest expense was also higher by $4.0 million as compared to Q1 2017, due to increased staffing and data processing costs.

Balance Sheet

The Company had total assets of $1.97 billion at March 31, 2018, compared with $1.76 billion on December 31, 2017 and $1.27 billion on March 31, 2017. Net loans were $1.5 billion at the end of Q1 2018, or 7.5% higher than at December 31, 2017 and 39.0% higher than at March 31, 2017. Total deposits were $1.62 billion at March 31, 2018, or 15.2% higher than at December 31, 2017, and 59.1% higher than at March 31, 2017.

Total stockholders' equity was $243 million on March 31, 2018, $237 million at December 31, 2017, and $112 million at March 31, 2017. The Company completed an Initial Public Offering (IPO) in November 2017 that increased diluted shares outstanding to 8,253,536 at March 31, 2018 from 4,633,012 on March 31, 2017.

Capital Ratios	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
Tier 1 Leverage:
Metropolitan Bank Holding Corp.		13.65	%		13.71	%		7.96	%		8.91	%		9.54	%
Metropolitan Commercial Bank		14.65			14.71			9.32			10.21			11.73
Common Equity Tier 1 Risk-Based (CET1):
Metropolitan Bank Holding Corp.		14.87			15.33			9.19			7.67			8.89
Metropolitan Commercial Bank		17.73			18.36			10.77			11.29			13.19
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.		16.53			17.09			7.38			9.62			10.72
Metropolitan Commercial Bank		17.73			18.36			10.77			11.29			13.19
Total Risk-based:
Metropolitan Bank Holding Corp.		19.20			19.86			12.01			12.63			14.14
Metropolitan Commercial Bank		18.80			19.41			11.85			12.38			14.32

Capital ratios at March 31, 2018 reflected the capital raised from the November 2017 IPO. Metropolitan Commercial Bank remains "Well-Capitalized" under applicable regulatory guidelines. The Company's tangible common equity ratio was 11.57% at March 31, 2018.

About Metropolitan Bank Holding Corporation

Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank®, The Entrepreneurial 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 five 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. Metropolitan Commercial Bank is a New York State chartered commercial bank, an FDIC member and an equal opportunity lender. For more information, please visit www.metropolitanbankny.com.

Forward Looking Statement Disclaimer

This release contains certain "forward-looking statements" about the Company which, to the extent applicable, are intended to be covered by the safe harbor for forward-looking statements provided under Federal securities laws and, regardless of such coverage, you are cautioned about. 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 those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K, as well as an unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth, unanticipated regulatory action, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel, an unanticipated loss of existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in Federal Deposit Insurance Corporation costs and unanticipated adverse changes in our customers' economic conditions or economic conditions in our local area in general.

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, whether the result of new information, future events or otherwise.

Financial Highlights
(dollars in thousands, except per share data, ratios annualized where appropriate)	Three months ended March 31,
	2018			2017
Performance
Net income	$	6,291		$	2,548
Net income available to common shareholders		6,194			2,499
Per common share:
Basic earnings	$	0.76		$	0.55
Diluted earnings		0.75			0.55
Common shares outstanding:
Average - diluted		8,275,243			4,576,925
Period end		8,253,536			4,633,012
Return on (annualized):
Average total assets		1.35	%		0.83	%
Average common equity		10.47	%		9.68	%
Yield on average earning assets		4.15	%		4.09	%
Cost of interest-bearing liabilities		1.31	%		0.93	%
Net interest spread		2.84	%		3.16	%
Net interest margin		3.67	%		3.60	%
Net charge-offs to average total net loans		0.01	%		0.01	%

Net operating results
Return on (annualized):
Average tangible assets		1.35	%		0.83	%
Average tangible common equity		11.18	%		8.13	%
Efficiency ratio		51.48	%		60.16	%


Loan quality	At March 31,
		2018			2017

Commercial real estate	$	-		$	858
Commercial and industrial		-			3,660
Consumer		85			-
Total nonperforming loans	$	85		$	4,518
Accruing loans past due 90 days or more		-			-
Nonaccrual loans to total loans		0.01	%		0.42	%
Allowance for loan losses to total loans		1.07	%		1.11	%

Financial Highlights, Five Quarter Trend
(dollars in thousands, except per share data)				Three months ended
(dollars in thousands, except per share data)	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
Performance
Net income	$	6,291		$	3,326		$	3,845		$	2,651		$	2,548
Net income available to common stockholders		6,194			3,143			3,671			2,551			2,499
Per common share:
Basic earnings	$	0.76		$	0.50		$	0.83		$	0.57		$	0.55
Diluted earnings	$	0.75		$	0.49		$	0.82		$	0.57		$	0.55
Common shares outstanding:
Average - diluted		8,275,243			6,768,753			4,576,925			4,576,925			4,576,925
Period end		8,253,536			8,196,310			4,633,012			4,633,012			4,633,012
Return on (annualized):
Average total assets		1.35	%		0.81	%		0.94	%		0.75	%		0.83	%
Average common equity		10.47	%		7.68	%		13.79	%		9.80	%		9.68	%
Yield on average interest earning assets		4.15	%		3.97	%		4.21	%		4.15	%		4.09	%
Cost of interest-bearing liabilities		1.31	%		1.25	%		1.26	%		1.06	%		0.93	%
Net interest spread		2.84	%		2.72	%		2.95	%		3.09	%		3.16	%
Net interest margin		3.67	%		3.49	%		3.62	%		3.48	%		3.60	%
Net charge-offs to total net loans		0.01	%		0.26	%		0.00	%		0.02	%		0.01	%

Net operating results
Return on (annualized):
Average tangible assets		1.35	%		0.74	%		0.95	%		0.75	%		0.83	%
Average tangible common equity		11.18	%		10.67	%		15.11	%		10.77	%		8.13	%
Efficiency ratio		51.48	%		44.82	%		53.03	%		53.54	%		60.16	%


Loan quality	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
Nonaccrual loans
Real estate
Commercial	$	-		$	787		$	841		$	841		$	858
One-to-four family		-			2,447			2,466			-			-
Commercial and industrial		-			-			3,660			3,660			3,660
Consumer		85			155			125			68			-
Total nonperforming loans	$	85		$	3,389		$	7,092		$	4,569		$	4,518
Accruing loans past due 90 days or more		-			-			-			-			-
Nonaccrual loans to total loans		0.01	%		0.24	%		0.52	%		0.36	%		0.42	%
Allowance for loan losses to total loans		1.07	%		1.05	%		1.09	%		1.08	%		1.11	%

Consolidated Statement of Income
(dollars in thousands)	Three months ended March 31,
(dollars in thousands)	2018		2017

Interest income	$	18,628	$	12,441
Interest expense		2,177		1,660
Net interest income		16,451		10,781
Provision for loan losses		1,477		570
Net interest income after provision for loan losses		14,974		10,211

Non-interest income:
Service charges on deposit accounts		1,910		291
Other service charges and fees		2,494		166
Loan prepayment penalties		65		-
Debit card income		908		788
Total non-interest income	$	5,377	$	1,245

Non-interest expense:
Compensation and benefits	$	6,317	$	4,577
Bank premises and equipment		1,180		1,073
Directors Fees		361		174
Insurance Expense		76		79
Professional fees		778		410
FDIC assessment		140		170
Data processing fees		1,368		251
Other expenses		1,018		500
Total non-interest expense		11,238		7,234

Net income before income tax expense		9,113		4,222
Income tax expense		2,822		1,674
Net Income	$	6,291	$	2,548


Earnings per share:
Basic	$	0.76	$	0.55
Diluted		0.75		0.55

Consolidated Statement of Income, Five Quarter Trend
(dollars in thousands)	Three months ended
(dollars in thousands)	Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		Jun 30, 2017		Mar 31, 2017

Interest income	$	18,628	$	17,864	$	16,401	$	14,047	$	12,441
Interest expense		2,177		2,293		2,437		2,281		1,660
Net interest income		16,451		15,571		13,964		11,766		10,781
Provision for loan losses		1,477		3,499		1,200		1,790		570
Net interest income after provision for loan losses		14,974		12,072		12,764		9,976		10,211

Non-interest income:
Service charges on deposit accounts		1,910		1,820		836		505		291
Other service charges and fees		2,494		3,429		523		250		166
Loan prepayment penalties		65		71		27		13		-
Debit card income		908		929		847		805		788
Total non-interest income	$	5,377	$	6,249	$	2,233	$	1,573	$	1,245

Non-interest expense:
Compensation and benefits	$	6,317	$	5,478	$	4,847	$	4,264	$	4,577
Bank premises and equipment		1,180		1,200		1,075		1,037		1,073
Directors Fees		361		229		316		175		174
Insurance Expense		76		77		60		65		79
Professional fees		778		771		976		480		410
FDIC assessment		140		444		349		105		170
Data processing fees		1,368		542		423		279		251
Other expenses		1,018		1,038		544		736		500
Total non-interest expense		11,238		9,779		8,590		7,141		7,234

Net income before income tax expense		9,113		8,542		6,407		4,408		4,222
Income tax expense		2,822		5,216		2,562		1,757		1,674
Net Income	$	6,291	$	3,326	$	3,845	$	2,651	$	2,548

Earnings per share:
Basic	$	0.76	$	0.50	$	0.83	$	0.57	$	0.55
Diluted		0.75		0.49		0.82		0.57		0.55

Consolidated Balance Sheet
(dollars in thousands)	March 31, March 31,
(dollars in thousands)	2018			2017
Assets
Cash and due from banks	$	370,950		$	93,878
Investment securities available for sale		30,276			35,724
Investment securities held to maturity		5,212			6,228
Other investments		16,566			12,382
Loans, net		1,526,166			1,097,841
Allowance for loan losses		(16,260	)		(12,236	)
Net loans		1,509,906			1,085,605
Receivable from prepaid card programs, net		7,523			7,257
Accrued interest receivable		4,366			2,728
Premises and equipment, net		6,688			5,460
Prepaid expenses and other assets		5,993			7,052
Goodwill		9,733			9,733
Accounts receivable, net		1,673			2,318
Total assets	$	1,968,886		$	1,268,365
Liabilities
Deposits:
Non-interest-bearing demand deposits	$	1,012,165		$	385,984
Interest-bearing deposits		604,951			630,693
Total deposits		1,617,116			1,016,677
Borrowed Funds		33,000			73,854
Trust-preferred securities		20,620			20,620
Subordinated debts, net of issuance cost		24,503			25,000
Accounts payable, accrued expenses and other liabilities		23,338			12,950
Accrued interest payable		454			435
Debit cardholder balances		6,814			6,622
Total liabilities		1,725,845			1,156,158
Stockholders' equity
Class B preferred stock		3			3
Common stock		81			45
Additional paid-in-capital		211,333			96,207
Retained earnings		32,152			16,041
Accumulated other comprehensive (loss)		(528	)		(89	)
Total stockholders' equity		243,041			112,207
Total liabilities and stockholders' equity	$	1,968,886		$	1,268,365

Consolidated Balance Sheet, Five Quarter Trend
(dollars in thousands)
(dollars in thousands)	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
Assets
Cash and due from banks	$	370,950		$	261,231		$	267,099		$	227,553		$	93,878
Investment securities available for sale		30,276			32,157			33,922			35,610			35,724
Investment securities held to maturity		5,212			5,428			5,681			5,968			6,228
Other investments		16,566			13,677			13,740			13,266			12,382
Loans, net		1,526,166			1,419,896			1,380,829			1,285,153			1,097,841
Allowance for loan losses		(16,260	)		(14,887	)		(15,075	)		(13,909	)		(12,236	)
Net loans		1,509,906			1,405,009			1,365,754			1,271,244			1,085,605
Receivable from prepaid card programs, net		7,523			9,579			6,977			7,577			7,257
Accrued interest receivable		4,366			4,421			3,903			3,059			2,728
Premises and equipment, net		6,688			6,268			6,010			5,744			5,460
Prepaid expenses and other assets		5,993			5,751			7,013			6,961			7,052
Goodwill		9,733			9,733			9,733			9,733			9,733
Accounts receivable, net		1,673			6,601			3,825			58			2,318
Total assets	$	1,968,886		$	1,759,855		$	1,723,657		$	1,586,773		$	1,268,365
Liabilities
Deposits:
Non-interest-bearing demand deposits	$	1,012,165		$	812,497		$	826,345		$	698,874		$	385,984
Interest-bearing deposits		604,951			591,858			662,298			630,424			630,693
Total deposits		1,617,116			1,404,355			1,488,643			1,329,298			1,016,677
Borrowed Funds		33,000			42,198			43,750			73,802			73,854
Trust-preferred securities		20,620			20,620			20,620			20,620			20,620
Subordinated debts, net of issuance cost		24,503			24,489			24,468			24,453			25,000
Accounts payable, accrued expenses and other liabilities		23,338			21,678			20,411			15,799			12,950
Accrued interest payable		454			749			547			912			435
Debit cardholder balances		6,814			8,882			6,259			6,910			6,622
Total liabilities		1,725,845			1,522,971			1,604,698			1,471,794			1,156,158
Stockholders' equity
Class B preferred stock		3			3			3			3			3
Common stock		81			81			45			45			45
Additional paid-in-capital		211,333			211,145			96,422			96,313			96,207
Retained earnings		32,152			25,861			22,536			18,691			16,041
Accumulated other comprehensive (loss)		(528	)		(206	)		(47	)		(73	)		(89	)
Total stockholders' equity		243,041			236,884			118,959			114,979			112,207
Total liabilities and stockholders' equity	$	1,968,886		$	1,759,855		$	1,723,657		$	1,586,773		$	1,268,365

Reconciliation of GAAP to Non-GAAP Measures
(dollars in thousands, except per share data)	Three months ended March 31,
(dollars in thousands, except per share data)	Three months ended March 31,
Income statement data		2018			2017
Net income	$	6,291		$	2,548
Efficiency Measures
Total non-interest expense		11,238			7,234

Net interest income		16,451			10,781
Non-interest income		5,377			1,245
Operating revenue		21,828			12,026

Average interest-earning assets		1,818,524			1,238,309
Net interest margin (GAAP)		3.67	%		3.60	%
Efficiency ratio		51.48	%		60.16	%

Balance sheet data	At March 31,
(dollars in thousands, except per share data)		2018			2017
(dollars in thousands, except per share data)
Average assets	$	1,869,251		$	1,236,036
Less: average intangible assets		9,733			9,733
Average tangible assets	$	1,859,518		$	1,226,303

Average common equity	$	234,748		$	105,336
Less: average intangible assets		9,733			9,733
Average tangible common equity	$	225,015		$	95,603

Total assets	$	1,968,886		$	1,268,365
Less: intangible assets		9,733			9,733
Tangible assets	$	1,959,153		$	1,258,632

Common equity	$	237,537		$	106,704
Less: intangible assets		9,733			9,733
Tangible common equity	$	227,804		$	96,971

Book value per share (GAAP)	$	29.03		$	23.03
Tangible book value per common share(non-GAAP)*		28.03			20.93

*Tangible book value divided by common shares outstanding at period-end.

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
(dollars in thousands, except per share data)	Three months ended
Income statement data	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
Income statement data
Net income	$	6,291		$	3,326		$	3,845		$	2,651		$	2,548
Efficiency Measures
Total non-interest expenses		11,238			9,779			8,590			7,141			7,234

Net interest income		16,451			15,571			13,964			11,766			10,781
Non-interest income		5,377			6,249			2,233			1,573			1,245
Operating revenue		21,828			21,820			16,197			13,339			12,026

Average interest-earning assets		1,818,524			1,785,784			1,546,332			1,357,189			1,238,309
Net interest margin (GAAP)		3.67	%		3.49	%		3.62	%		3.48	%		3.60	%
Efficiency ratio		51.48	%		44.82	%		53.03	%		53.54	%		60.16	%

Balance sheet data	Three months ended
Balance sheet data	Mar 31, 2018			Dec 31, 2017			Sept 30, 2017			Jun 30, 2017			Mar 31, 2017
(dollars in thousands, except per share data)
Average assets	$	1,869,251		$	1,813,785		$	1,633,543		$	1,414,602		$	1,236,036
Less: average intangible assets		9,733			9,733			9,733			9,733			9,733
Average tangible assets	$	1,859,518		$	1,804,052		$	1,623,810		$	1,404,869		$	1,226,303

Average common equity	$	234,748		$	173,245		$	111,553		$	108,144		$	105,336
Less: average intangible assets		9,733			9,733			9,733			9,733			9,733
Average tangible common equity	$	225,015		$	163,512		$	101,820		$	98,411		$	95,603

Total assets	$	1,968,886		$	1,759,855		$	1,723,657		$	1,586,773		$	1,268,365
Less: intangible assets		9,733			9,733			9,733			9,733			9,733
Tangible assets	$	1,959,153		$	1,750,122		$	1,713,924		$	1,577,040		$	1,258,632

Common equity	$	237,537		$	231,381		$	113,457		$	109,477		$	106,704
Less: intangible assets		9,733			9,733			9,733			9,733			9,733
Tangible common equity	$	227,804		$	221,648		$	103,724		$	99,744		$	96,971

Common shares outstanding		8,253,536			8,196,310			4,633,012			4,633,012			4,633,012

Book value per share (GAAP)	$	29.23		$	28.23		$	24.49		$	23.63		$	23.03
Tangible book value per common share(non-GAAP)*		28.03			27.04			22.39			21.53			20.93

*Tangible book value divided by common shares outstanding at period-end.

Contacts for Metropolitan Bank Holding Corp.

Media: Liz Zale / Paul Scarpetta, 212-687-8080

Investors: IR@MetropolitanBankNY.com

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Metropolitan Bank Holding Corp. - FORM 8-K - EX-99.1 - April 26, 2018

Attached files

Metropolitan Bank Holding Corp. Reports