Metropolitan Bank Holding Corp. has recently released its 10-K report, providing detailed insights into its financial performance and operations. The company, headquartered in New York, operates as the bank holding company for Metropolitan Commercial Bank, offering a range of business, commercial, and retail banking products and services primarily in the New York metropolitan area. Its primary lending products include commercial real estate, commercial and industrial loans, and consumer loans. The bank also offers cash management services, online and mobile banking, and other financial solutions.
In the 10-K report, Metropolitan Bank highlighted its financial performance for the year ended December 31, 2024. The company reported a return on average assets of 0.91% and a return on average equity of 9.61%. Its net interest spread was 1.94%, and the net interest margin was 3.53%. The average equity to average total assets ratio stood at 9.52%.
The report also discussed the company's total assets, which amounted to $7.3 billion at the end of 2024, reflecting a 3.3% increase from the previous year. Metropolitan Bank's total cash and cash equivalents decreased by 25.7% to $200.3 million, primarily due to an increase in the loan book and a decrease in wholesale funding. The bank also reported a decrease in total securities by 1.8% to $915.8 million.
Moreover, Metropolitan Bank outlined its critical accounting policies, particularly focusing on the allowance for credit losses (ACL). The company stressed the significance of management's judgment in estimating the ACL, considering factors such as economic forecasts, regulatory environment, and collateral values. The report also included a hypothetical sensitivity analysis, demonstrating the potential impact of adverse changes in macroeconomic forecasts on the ACL.
Additionally, the 10-K report discussed the company's recent events, including its decision to exit all consumer-facing Banking as a Service (BaaS) relationships and commence a digital transformation initiative to modernize its core payment and online banking systems.
As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $61.12. Check out the company's full 10-K submission here.
