Metropolitan Bank Holding Corp. Q1 FY2025 earnings call

• Mark DeFazio noted strong performance with loan growth of $308 million, deposit growth of $465 million, and NIM expansion for the sixth consecutive quarter. • Share buyback of over 228,000 shares worth $12.9 million completed halfway by mid-April. • Investment in new technology stack expected to be fully integrated by end of 2025. • Asset quality remains strong with no broad-based negative trends in loan segments. • Daniel Dougherty discussed loan growth drivers including positive WAC delta and renewal coupon increases, deposit growth across all verticals with cost declines, NIM at 3.68% due to loan and deposit pricing discipline, and details on income statement and expenses.

Loans grew by $308 million (5.1%). Deposits grew by $465 million (7.8%). Net interest margin (NIM) was 3.68%, up 2 basis points from the prior quarter. Loan originations and draws totaled approximately $490 million at a weighted average coupon of 7.84%, with payoffs and paydowns at $185 million. Deposit growth was across all verticals, with municipal, EB-5, and lending customers being top contributors. The cost of interest-bearing deposits and total deposits declined by 32 basis points and 6 basis points respectively.

• Planned loan growth for 2025 is 10%-12%. • Funding assumption is generic deposit growth priced at Fed funds minus 80 to 85. • Full-year NIM expected to be 3.7%-3.75%. • Anticipate one 25 basis point rate cut in July, with additional rate cuts benefiting NIM by +5 bps per 25 bp cut.

• Outlook for macroeconomic variables may result in increased provisioning in future quarters. • Potential material downshift in U.S. economic conditions or material changes in customer behavior could impact results.

Q: Clarification on 2Q operating expenses and GPG related items A: Daniel Dougherty said 2Q operating expenses including IT spend adjustment around $44.8 million, and there are still some GPG related sheetments but no fee-related income/expenses Q: Implications of Gold Card program on EB-5 business A: Mark DeFazio said it could be a nonevent or bolt-on product alongside EB-2 and EB-5, not disruptive to core business Q: Seasonal patterns in deposit growth A: Mark DeFazio and Daniel Dougherty stated no seasonal patterns in deposit growth Q: Loan pipeline and deposit opportunities A: Mark DeFazio said loan pipeline is strong with deals close to closing, and deposit growth opportunities across diversified verticals without concentration risk Q: Competitive pressures on loan/deposit side A: Mark DeFazio said no competition in New York City Q: Loan pipeline and deposit vertical opportunities A: Mark DeFazio mentioned loan growth guidance revised higher, and deposit growth opportunities across diversified verticals for branch-light franchise Q: EB-5 related deposits and Gold Card dynamics A: Daniel Dougherty said EB-5 related deposits are around $400-500 million, and discussion on dynamic strategy considering program longevity