Metropolitan Bank’s profit rebounds as margins widen and deposits grow

Metropolitan Bank Holding ($MCB) reported quarterly net income of $32.4 million, or $2.58 per share, compared with $19.2 million and $1.54 in the preceding quarter. Net interest income increased 7.9% sequentially and 26.3% year on year to $97.6 million. Net interest margin reached 4.36%, up 28 basis points sequentially and 48 basis points from a year earlier.

Deposits rose by $589.1 million during the quarter to $8.3 billion and loans increased by $205 million to $7.5 billion. Lower provisions also supported the earnings improvement, so profit growth was not solely a consequence of stronger lending income. Non-performing loans increased to 0.95% of loans from 0.91% sequentially, reflecting one commercial-real-estate credit, although the ratio remained below 1.20% a year earlier. The credit-quality movement qualifies the otherwise stronger operating performance.

Sources:

• Metropolitan Bank Holding — issuer financial results