Metropolitan Bank (MCB) Q4 2024 earnings summary

Executive summary

• Reported strong Q4 2024 performance with net income of $21.4 million and EPS of $1.88, with annual net interest income up 13.6% year-over-year.

• Achieved 23% CAGR in loans, deposits, and revenue from 2017 to 2024, and 28% CAGR in net income.

• Successfully exited the BaaS business, replacing associated deposit runoff with $245 million in new deposits in 2024.

• Continued investment in digital transformation, with full integration of the new technology stack expected by year-end 2025.

• Maintained focus on asset quality, profitability, and market share expansion in New York and other markets.

Financial highlights

• Net interest margin for Q4 2024 was 3.66%, up 4 bps quarter-over-quarter; full-year NIM was 3.53%.

• Q4 2024 net income was $21.4 million; adjusted net income for the year was $83.3 million, excluding regulatory and digital transformation charges.

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

• Total deposits at year-end were $6.0 billion, up 4.3% year-over-year, with interest-bearing deposits rising by $160 million in Q4.

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

Outlook and guidance

• Projected core ROTCE of 13% by Q4 2025; full-year NIM expected at 3.7%-3.75%.

• Loan growth guidance of 9%-11% for 2025, funded by core deposit growth.

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

• Digital transformation project Phoenix underway, with $17 million in total costs and completion expected in Q4 2025.

• Management anticipates improved operating environment and positive economic outlook for 2025.