Yahoo Finance Metropolitan Bank Holding Corp (MCB) (Q1 2024) Earnings Call Transcript Highlights: Strong ...
Earnings Per Share (EPS): $1.46 in Q1 2024.
Net Interest Income: Reported strong growth.
Net Interest Margin (NIM): Expanded by 4 basis points in Q1; forecasted to be between 3.45% to 3.5% by Q4.
Loan Growth: Increased by over $94 million, funded by core deposit growth of more than $340 million.
Asset Quality: Remains strong with no negative trends identified.
Noninterest Income: Increased by approximately 7% from the previous quarter.
Noninterest Expenses: Totaled $41.9 million in Q1; expected to total $160 million to $163 million for the full year.
Effective Tax Rate: Approximately 33% for the quarter; expected to be 31% to 32% going forward, excluding discrete items.
Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you confirm if about $300 million of B2C deposits are expected to run off in the second quarter? A: Daniel Dougherty, CFO, confirmed that approximately $300 million of B2C deposits are expected to run off towards the end of the second quarter.
Q: Given the first quarter's success, should we expect the deposit pipelines to continue being strong? A: Mark DeFazio, CEO, affirmed that while the timing of new relationships might vary, the bank is confident in replacing those deposits and funding loan growth by year-end, aligning with their projections.
Q: Are there any updates on hiring deposit teams from neighboring banks? A: Mark DeFazio explained that they met with several teams, but none were a good fit for various reasons, including cultural fit and compensation expectations. He indicated a low probability of hiring such teams in 2024.
Q: What are the expectations for the quarterly pace of reduction in GPG fee income and expenses for the year? A: Daniel Dougherty noted that the decline in GPG fee income will not be materially different in the second quarter but will accelerate in the third and fourth quarters, with an annual forecast of $8 million to $10 million.
Q: Can you provide guidance on the total dollar amount of regulatory remediation and GPG wind-down costs for 2024? A: Mark DeFazio mentioned that these costs include legal and professional fees, which are difficult to precisely budget, but they provided a worst-case scenario in their financial projections.
Q: What is the expected core expense run rate by the end of 2024 or early 2025? A: Daniel Dougherty estimated a core expense run rate of approximately $148 million to $150 million by 2025, assuming successful completion of their remediation requirements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
