Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses

Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp.

MCB

0.00


Overview

  • Diluted EPS fell from prior quarter and yr/yr due to credit loss provision and one-time expenses

  • US commercial bank's Q2 net interest income rose 23% yr/yr, revenue up 22%

  • Company authorized $50 mln share buyback and raised quarterly dividend by $0.10


Outlook

  • Metropolitan Bank expects lending pipeline and deposit forecast to remain robust

  • Company anticipates momentum in core operating trends to persist


Result Drivers

  • LOAN GROWTH - Net interest income rose due to higher average loan balances, especially in commercial real estate

  • CREDIT LOSS PROVISION - Earnings were reduced by a $13.3 mln provision for credit losses tied mainly to a single non-core commercial and industrial loan

  • ONE-TIME EXPENSES - Non-interest expense increased due to a one-time legal accrual and higher professional fees and compensation


Company press release: ID:nBw3bdtrta


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$93.01 mln

Q2 EPS

$1.54

Q2 Net Income

$19.22 mln

Q2 Net Interest Income

$90.40 mln

Q2 Net Interest Margin

4.08%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Metropolitan Bank Holding Corp is $110.00, about 11.6% above its July 20 closing price of $98.55

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 20 - Wintrust Q2 net interest income rises on growth in average earning assets

  • July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

  • July 21 - KeyCorp quarterly profit rises on interest income strength


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