MCB ==> The Avengers Winner

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  • mrmarket
    Administrator
    • Sep 2003
    • 5983

    MCB ==> The Avengers Winner

    ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)

    It’s snowing today. I need to run out and buy milk. I need to run out and buy bread. Oh my goodness, look how much milk and bread costs! There is so much inflation. How do we put a stop to it? One simple solution. Raise interest rates. What happens when you raise interest rates? U.S. regional banks are poised for increased revenues as loan growth pops in 2022. Fed rate hikes in 2022 will create net interest margin expansion.

    Bank stocks in general did pretty well last year, up about 40% on the back of anticipated rate hikes in 2022. As the economy has recovered as we have waded through the pandemic, PE multiples for banks have become more generous. That’s like free money since the banks don’t have to prove it with earnings as the market anticipates their successes. The Federal Reserve is expected to lift interest rates 3 times in 2022, but they haven’t done it yet. The first few rate hikes are usually the most beneficial for banks since the loan rates go up faster than what they pay out on their deposits, so there are several months of juicy margins. There is no doubt we will see double digit earnings growth.

    Well, we can’t buy all of them, so which one looks the best right now? Today I bought stock in Metropolitan Commercial Bank (ticker MCB) at 110.72. I will sell it in 4 to 6 weeks at 127.89. Here’s why I really like this stock:




    What an awesome chart! This stock is up 178% over the last 12 months yet its PE is only 15.3. That’s a great growth AND value story. And why not? Metropolitan Commercial Bank is proud to announce that it has been included in Fortune’s 100 Fastest-Growing Companies for 2021. Metropolitan Commercial 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. Start spreading the news! Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island.

    Sitting in this sweet spot, strong loan growth trends should continue, which will of course improve overall profitability levels consistent with strong revenue growth. The bank has seen incredible growth of more 50% in assets and 20% in loans in the last year which has pumped up its book value. If they can continue this loan growth and, on top of it fortify this growth with the interest rate margin they get from Fed activity, their earnings will be pornographic. One would think that with this loan growth, their customer profile must have become sketchy, but that’s not true at all. Their credit recoveries have actually improved with their increased activity. Only 0.4% of their commercial real estate loans are past due. That’s pretty crazy given the work from home craze which has dominated New York City during the pandemic. The answer is a lot of these loans are for properties such as multi family residences, nursing homes and warehouses. Deposits are 4 times higher than they were 4 years ago. All of this will be a rising tide for the MCB stock price.

    If you have to ask what is it that differentiates MCB from a lot of other banks, the bank is a fintech partner bank. They are one of the first movers in this space. They also have some glancing interest in crypto but they have risk management guard rails in place for these investments. Note, Revolut is a customer. This is reflected in their profit margin of 33% and their Return on Equity of over 12%. It’s no surprise that over the last 4 quarters they have beaten ANAL-yst estimates by over 10% each time.

    Despite all of the talk about urban flight, stats don’t back it up and the smart guys are all saying that NYC population growth will be on the upswing through the decade. At the end of the day, a bank’s interest income is correlated to GDP per capita, so you grow the population and the bank benefits. The other trend that bears notice is that companies are reluctant to go public these days, on account of all of the scrutiny and the amount of capital in the vaults of private equity. Banks benefit from this privatization of businesses since bank loans are now the life blood of cash flow for small growing businesses.

    So what is the earnings story? Most recently:

    • Total revenues of $46.7 million, up 29.8% from the prior year period and 8.2% from the prior linked quarter.
    • Net income of $16.2 million, up 50.4% from the prior year period and 21.6% from the prior linked quarter.
    • Loans totaled $3.6 billion, up 20.5% from September 30, 2020 and up 17.8% annualized from June 30, 2021.
    • Deposits were $5.5 billion, up 54.7% from September 30, 2020 and up 12.8% annualized from June 30, 2021.
    • Diluted earnings per share of $1.77, up 39.4% from the prior year period and 14.2% from the prior linked quarter.


    Here’s what the chief had to say:

    Mark DeFazio, President and Chief Executive Officer, commented, "Our strong third quarter performance continues to showcase that we are a top performing growth company with a sustained history of driving net income, ROATCE and shareholder value. We have done this with a laser-focus on the funding side of our balance sheet, while driving high quality loan growth with minimal net charge-offs since our founding 22 years ago. Today, we have grown to over $6 billion in assets and combine a strong commercial bank with a uniquely positioned Global Payments business. Our success would not be possible without the enthusiasm and dedication of the entire MCB team. A huge thank you to our employees, our board and to our clients. I have stated that we are a top-performing growth company and now Fortune agrees.”

    The Giants are terrible and so are the Jets but when it comes to Big Apple it is all about the Benjamins. MCB will take $$$MR. MARKET$$$ to the pay window….bank on it!
    Last edited by mrmarket; 01-18-2022, 01:02 PM.
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$
  • Louetta
    Senior Member
    • Oct 2003
    • 2333

    #2
    A fine choice, Large Person. Good luck!

    Comment

    • jiesen
      Senior Member
      • Sep 2003
      • 5353

      #3
      Excellent pick, $$MM, and a very nice writeup for MCB. I'm in with you at 110!

      Comment

      • jiesen
        Senior Member
        • Sep 2003
        • 5353

        #4
        MCB is making a HUUUUUUGE comeback now!!!
        Last edited by jiesen; 06-07-2023, 01:19 PM. Reason: typo!

        Comment

        • jiesen
          Senior Member
          • Sep 2003
          • 5353

          #5
          Originally posted by jiesen View Post
          MBC is making a HUUUUUUGE comeback now!!!
          I added more to my MCB at $69 today.

          Comment

          • Websman
            Senior Member
            • Apr 2004
            • 5548

            #6
            I'm not touching any stock right now.

            Comment

            • jiesen
              Senior Member
              • Sep 2003
              • 5353

              #7
              Originally posted by jiesen View Post
              MCB is making a HUUUUUUGE comeback now!!!
              I repeat myself, but... MCB is making another big comeback now!

              Comment

              • jiesen
                Senior Member
                • Sep 2003
                • 5353

                #8
                MCB has now about doubled from where it was at the beginning of last month! Go MCB!!!

                Comment

                • jiesen
                  Senior Member
                  • Sep 2003
                  • 5353

                  #9
                  From Yahoo! (yes, that one):
                  NEW YORK, July 17, 2025--Metropolitan Bank Holding Corp. (the "Company") (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $18.8 million, or $1.76 per diluted common share, for the second quarter of 2025 compared to $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025, and $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024.


                  Metropolitan Bank Holding Corp. Reports Second Quarter 2025 Results

                  Net Interest Margin increased to 3.83%
                  Diluted EPS of $1.76

                  Financial Highlights
                  • Diluted earnings per share of $1.76 for the second quarter of 2025, an increase of 21.4% compared to the first quarter of 2025, inclusive of $1.6 million of digital transformation project spend, or $0.10 diluted earnings per common share, after tax.
                  • The net interest margin for the second quarter of 2025 was 3.83%, an increase of 15 basis points compared to 3.68% for the prior linked quarter and an increase of 39 basis points compared to 3.44% for the prior year period.
                  • Total loans at June 30, 2025 were $6.6 billion, an increase of $270.7 million, or 4.3%, from March 31, 2025 and $773.9 million, or 13.3%, from June 30, 2024.
                  • Total deposits at June 30, 2025 were $6.8 billion, an increase of $342.0 million, or 5.3%, from March 31, 2025 and $621.6 million, or 10.1%, from June 30, 2024.
                  • On July 17, 2025, the Company’s board of directors declared a quarterly dividend on the Company’s common stock of $0.15 per share, the Company’s first cash dividend in its history, payable to holders of record on July 28.
                  • The Company completed its initial $50 million share repurchase program in May 2025, resulting in the purchase of 878,807 shares of common stock at an average price of $56.90 per share. On July 17, 2025, the Company’s board of directors approved a new share repurchase plan with authorization to purchase up to an additional $50 million of the Company’s common stock. In aggregate, the board of directors has authorized $100 million of share repurchases since March.
                  • Asset quality continues to be stable. The ratio of non-performing loans to total loans was 0.60% at June 30, 2025, compared to 0.54% for the prior linked quarter and 0.53% for the prior year period.
                  • Liquidity remains strong. At June 30, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion, which represented 178% of our estimated uninsured deposits.
                  • The Company and Bank are "well capitalized" under all applicable regulatory guidelines, with total risk-based capital ratios of 12.2% and 12.0%, respectively, at June 30, 2025, well above regulatory minimums.

                  NEW YORK, July 17, 2025--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (the "Company") (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $18.8 million, or $1.76 per diluted common share, for the second quarter of 2025 compared to $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025, and $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024.

                  Mark DeFazio, President and Chief Executive Officer, commented,

                  "I am pleased with MCB’s sustained performance throughout our various business lines. Our second quarter and first half results underscore the strength and discipline of our franchise, which position us well to balance supporting our clients with attractive shareholder returns. Our true diversified commercial bank offerings clearly differentiate MCB from our peers.

                  "In the second quarter, we completed our initial $50 million share repurchase program announced in March, at prices well below our tangible book value. Given robust results coupled with confidence in continued business strength, our board has authorized an additional $50 million repurchase program for a total of $100 million authorized year to date. As part of our multi-pronged approach to return capital to shareholders while maintaining investment and expansion optionality, our board also approved an initial quarterly cash dividend.

                  "Our healthy balance sheet, together with strong earnings momentum, enables us to opportunistically capitalize on various strategic initiatives to support responsible growth."

                  Balance Sheet

                  Total cash and cash equivalents were $152.5 million at June 30, 2025, a decrease of $44.0 million, or 22.4%, from March 31, 2025, and a decrease of $92.2 million, or 37.7%, from June 30, 2024. The decrease from March 31, 2025 primarily reflects an increase in the loan book of $270.7 million and an $85.0 million decrease in wholesale funding, partially offset by an increase of $342.0 million in deposits. The decrease from June 30, 2024 primarily reflects an increase in the loan book of $773.9 million, partially offset by an increase of $621.6 million in deposits.

                  Total loans, net of deferred fees and unamortized costs, were $6.6 billion at June 30, 2025, an increase of $270.7 million, or 4.3%, from March 31, 2025, and an increase of $773.9 million, or 13.3%, from June 30, 2024. Loan production was $492.0 million for the second quarter of 2025 compared to $409.8 million for the prior linked quarter and $290.8 million for the prior year period. The increase in total loans from March 31, 2025, was due primarily to an increase of $252.5 million in commercial real estate ("CRE") loans (including owner-occupied). The increase in total loans from June 30, 2024 was due primarily to an increase of $790.8 million in CRE loans (including owner-occupied).

                  Total deposits were $6.8 billion at June 30, 2025, an increase of $342.0 million, or 5.3%, from March 31, 2025, and an increase of $621.6 million, or 10.1%, from June 30, 2024. Deposit growth was broadly distributed across the Bank’s various deposit verticals.

                  At June 30, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion. The Company and the Bank each met all the requirements to be considered "well capitalized" under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 371.9% of total risk-based capital at June 30, 2025, compared to 367.0% and 358.4% at March 31, 2025 and June 30, 2024, respectively. The increased CRE concentration ratio is primarily the result of the Bank funding the share repurchase program at the Company.

                  Income Statement

                  Financial Highlights
                  Three months ended Six months ended
                  Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,
                  (dollars in thousands, except per share data) 2025 2025 2024 2025 2024
                  Total revenues(1) $ 76,270 $ 70,590 $ 67,678 $ 146,860 $ 134,391
                  Net income (loss) $ 18,767 $ 16,354 $ 16,799 35,121 33,002
                  Diluted earnings (loss) per common share $ 1.76 $ 1.45 $ 1.50 3.20 2.96
                  Return on average assets(2) 0.97 % 0.89 % 0.92 % 0.93 % 0.91 %
                  Return on average equity(2) 10.4 % 9.0 % 9.9 % 9.7 % 9.9 %
                  Return on average tangible common equity(2), (3), (4) 10.5 % 9.1 % 10.1 % 9.8 % 10.0 %
                  _____________________________
                  (1) Total revenues equal net interest income plus non-interest income.
                  (2) Ratios are annualized.
                  (3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.
                  (4) Net income divided by average tangible common equity.
                  Net Interest Income

                  Net interest income for the second quarter of 2025 was $73.6 million compared to $67.0 million for the prior linked quarter and $61.5 million for the prior year period. The $6.7 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits. The $12.1 million increase from the prior year period was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits.
                  ​----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                  Also, this is from Yahoo!:
                  Metropolitan Bank Holding (MCB) delivered earnings and revenue surprises of +8.64% and +4.62%, respectively, for the quarter ended June 2025. Do the numbers hold clues to what lies ahead for the stock?


                  Metropolitan Bank Holding Corp. (MCB) Q2 Earnings and Revenues Beat Estimates


                  Metropolitan Bank Holding Corp. (MCB) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items.

                  This quarterly report represents an earnings surprise of +8.64%. A quarter ago, it was expected that this company would post earnings of $1.61 per share when it actually produced earnings of $1.45, delivering a surprise of -9.94%.

                  Over the last four quarters, the company has surpassed consensus EPS estimates three times.

                  Metropolitan Bank Holding, which belongs to the Zacks Banks - Northeast industry, posted revenues of $76.27 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.62%. This compares to year-ago revenues of $67.68 million. The company has topped consensus revenue estimates four times over the last four quarters.

                  The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

                  Metropolitan Bank Holding shares have added about 26.3% since the beginning of the year versus the S&P 500's gain of 6.5%. What's Next for Metropolitan Bank Holding?


                  While Metropolitan Bank Holding has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

                  There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

                  Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

                  Ahead of this earnings release, the estimate revisions trend for Metropolitan Bank Holding was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

                  It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.82 on $75.5 million in revenues for the coming quarter and $6.86 on $296.7 million in revenues for the current fiscal year.
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                  ...looks to me like MCB will be busting through 80, and on to 100+ very soon!

                  Comment

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