Metropolitan Bank (MCB) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with net income of $21.4 million and EPS of $1.88, driven by strategic initiatives including the exit from the BaaS business and ongoing digital transformation.

• Loans, deposits, and revenue each grew at a 23% CAGR from 2017 to 2024; net income grew at a 28% CAGR over the same period.

• Maintains a resilient balance sheet with high liquidity, strong capital ratios, and a conservative credit culture.

• Focused on client-centric, relationship-driven commercial banking with a diversified product suite and digital transformation initiatives.

• Asset quality remained stable, with non-performing loans at 0.54% of total loans at year-end.

Financial highlights

• Net interest income for Q4 2024 was $66.6 million, up from $65.2 million in Q3 2024 and $57.0 million in Q4 2023; net interest income rose 16.9% year-over-year for Q4.

• Net interest margin for Q4 2024 was 3.66%, up 4 bps from Q3 2024 and 30 bps from Q4 2023; normalized NIM estimated at 3.55%.

• Total loans at December 31, 2024 were $6.0 billion, up 2.3% sequentially and 7.3% year-over-year.

• Non-interest income for Q4 2024 was $4.4 million, down from $6.3 million in Q3 2024 and $6.6 million in Q4 2023, mainly due to the GPG wind down.

• Efficiency ratio for Q4 2024 was 53.7%; adjusted efficiency ratio was 52.4%.

Outlook and guidance

• Management anticipates improved operating environment and positive economic outlook for 2025, with continued focus on disciplined growth and digital transformation.

• Projected loan growth of 9%-11% for 2025.

• Non-interest expenses for 2025 expected at $175-$177 million, including $11 million in one-time tech costs.

• Core ROTCE targeted at 13% by Q4 2025; mid-teens ROTCE expected in 12-18 months.

• The new technology stack is expected to be completed by year-end 2025, supporting future scalability.