NEW YORK–(BUSINESS WIRE)–Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to $5.9 million, or $0.70 per diluted common share, for the second quarter of 2018.
For the six months ended June 30, 2019, the Company reported net income of $14.6 million, or $1.72 per diluted common share, compared to $12.2 million, or $1.46 per diluted common share, for the six months ended June 30, 2018.
Financial Highlights for the second quarter of 2019 include:
- GAAP net income decreased $2.4 million to $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to GAAP net income of $8.5 million, or $1.01 per diluted common share, for the first quarter of 2019. Core earnings (a non-GAAP measure) increased $471,000 to $6.1 million, or $0.71 per diluted common share, for the second quarter of 2019, as compared to core earnings of $5.6 million, or $0.66 per diluted common share, for the first quarter of 2019. Core earnings excludes the $2.9 million (on an after-tax basis) recovery of loan losses, in the first quarter of 2019, related to taxi medallion loans. See reconciliation to GAAP measures on page 15.
- Total assets increased $778.0 million or 35.6% to $2.96 billion at June 30, 2019, as compared to $2.18 billion at December 31, 2018. Total assets increased $415.4 million or 16.3% to $2.96 billion at June 30, 2019, as compared to $2.55 billion at March 31, 2019.
- Total loans increased $470.4 million, or 25.2%, to $2.34 billion at June 30, 2019, as compared to $1.87 billion at December 31, 2018. For the three and six months ended June 30, 2019, the Bank’s organic loan production was $299.7 million and $571.9 million, respectively, as compared to $153.8 million and $390.6 million for the three and six months ended June 30, 2018, respectively. Total loans increased $233.2 million or 11.1% to $2.34 billion at June 30, 2019, as compared to $2.10 billion at March 31, 2019.
- Total deposits increased $715.6 million, or 43.1%, to $2.38 billion at June 30, 2019, as compared to $1.66 billion at December 31, 2018. This growth in deposits was across the Bank’s deposit verticals.
- The loan-to-deposit ratio decreased to 98.3% at June 30, 2019, as compared to 112.3% at December 31, 2018.
- Non-interest-bearing deposits increased 38.2% to $1.10 billion at June 30, 2019, as compared to $798.6 million at December 31, 2018. Interest-bearing deposits increased 47.7% to $1.27 billion at June 30, 2019 as compared to $862.0 million at December 31, 2018.
- Net interest margin decreased 12 basis points to 3.47% for the second quarter of 2019 from 3.59% for the second quarter of 2018. For the six months ended June 30, 2019, net interest margin decreased to 3.57%, as compared to 3.63% for the same period in 2018.
- The provision for loan losses for the second quarter of 2019 was $2.0 million, as compared to $1.3 million for the second quarter of 2018. The provision for loan losses for the six months ended June 30, 2019 was a credit of $81,000, as compared to $2.7 million for six months ended June 30, 2018. The negative provision for loan losses for the six months ended June 30, 2019 consisted of a $4.2 million provision recorded as a result of the record loan growth during 2019, and recoveries of $4.3 million, of which $4.2 million related to the taxi medallion loans
Mark R. DeFazio, the Company’s President and Chief Executive Officer, commented, “I am pleased with the sustainable growth in loans and deposits. We were modestly affected by margin compression this quarter as we continue to work on various new deposit strategies that will drive lower funding costs and address the flattening of the yield curve. While the growth in our new deposit verticals has resulted in additional costs ahead of revenue due to the inverted yield curve, these new initiatives will yield enhanced profitability and stability to the MCB franchise, which will become increasingly evident over time.”
Mr. DeFazio continued, “Since the inception of MCB 20 years ago we have developed significant diversification on both sides of the balance sheet. This strategy has defended the bank through volatile interest rate environments as well as market conditions that affect asset quality. We expect this strategy to prove its value again as we continue to deal with a difficult yield curve. As we stay very focused on our core strategy, we expect to continue to take market share from larger regional banks.”
Balance Sheet
The Company had total assets of $2.96 billion at June 30, 2019, compared with $2.18 billion at December 31, 2018. Loans, net of deferred fees and unamortized costs, increased to $2.34 billion at June 30, 2019 as compared to $1.87 billion at December 31, 2018. For the three and six months ended June 30, 2019, the Bank’s loan production was $299.7 million and $571.9 million, respectively, as compared to $153.8 million and $390.6 million for the three and six months ended June 30, 2018, respectively.
Total cash and cash equivalents increased $200.4 million, or 86.0%, to $433.4 million at June 30, 2019, as compared to $233.0 million at December 31, 2018. Total securities, primarily those classified as available-for-sale increased to $137.1 million, or 269.4% at June 30, 2019, as compared to $37.1 million at December 31, 2018. The increases in cash and cash equivalents and securities were primarily due to the strong growth in deposits of $715.6, partially offset by growth in loans of $470.4 million at June 30, 2019, as compared to December 31, 2018.
Total deposits increased $715.6 million, or 43.1%, to $2.38 billion at June 30, 2019, as compared to $1.66 billion at December 31, 2018. This was due to increases of $410.9 million in interest-bearing demand deposits and $304.7 million in non-interest-bearing deposits.
Total borrowings increased by $5.0 million to $235.2 million at June 30, 2019, as compared to $230.2 million at December 31, 2018. This was due to an increase of $5.0 million in Federal Home Loan Bank advances, which were used to support the Bank’s loan growth.
Total stockholders’ equity was $281.3 million at June 30, 2019, as compared to $264.5 million at December 31, 2018. The increase of $16.8 million was primarily due to net income of $14.6 million for the six months ended June 30, 2019.
Metropolitan Commercial Bank meets all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. At June 30, 2019, total Commercial Real Estate Loans (“CRE”) were 372.5% of risk-based capital, as compared to 312.4% at December 31, 2018.
Income Statement
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Three months ended June 30, |
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Six months ended June 30, |
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(dollars in thousands) |
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2019 |
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2018 |
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2019 |
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2018 |
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Net income |
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$ |
6,057 |
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$ |
5,865 |
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$ |
14,588 |
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$ |
12,156 |
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Diluted earnings per common share |
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0.71 |
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|
0.70 |
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|
1.72 |
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|
1.46 |
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Annualized return on average assets |
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0.91 |
% |
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1.20 |
% |
|
1.18 |
% |
|
1.28 |
% |
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Annualized return on average equity |
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8.71 |
% |
|
9.53 |
% |
|
10.66 |
% |
|
10.00 |
% |
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Annualized return on average common equity* |
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8.89 |
% |
|
9.75 |
% |
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10.88 |
% |
|
10.23 |
% |
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*Common equity excludes Class B preferred stock. See reconciliation to GAAP measures on page 14.
Net Income Summary
Net income increased $192,000 to $6.1 million for the second quarter of 2019, as compared to $5.9 million for the same period in 2018. This increase was due primarily to a $5.5 million increase in net interest income, partially offset by $4.4 million increase in non-interest expense and a $680,000 increase in provision for loan losses.
Net income increased $2.4 million to $14.6 million for six months ended June 30, 2019, as compared to $12.2 million for the same period in 2018. This increase was due primarily to a $9.6 million increase in net interest income and a $2.8 million decrease in the provision for loan losses, partially offset by a $2.9 million decrease in non-interest income and a $5.9 million increase in non-interest expense.
Net Interest Margin Analysis
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Three months ended |
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June 30, 2019 |
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June 30, 2018 |
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Average |
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Average |
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Outstanding |
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Yield/Rate |
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Outstanding |
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Yield/Rate |
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(dollars in thousands) |
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Balance |
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Interest |
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(annualized) |
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Balance |
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Interest |
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(annualized) |
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Assets: |
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Interest-earning assets: |
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Loans (1) |
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$ |
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2,226,557 |
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$ |
|
28,019 |
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5.05 |
% |
$ |
|
1,532,073 |
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$ |
|
17,996 |
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4.71 |
% |
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Available-for-sale securities |
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54,389 |
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|
342 |
|
2.49 |
% |
|
27,942 |
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|
146 |
|
2.07 |
% |
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|
Held-to-maturity securities |
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|
4,287 |
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|
22 |
|
2.01 |
% |
|
5,096 |
|
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|
27 |
|
2.09 |
% |
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|
Equity investments – non-trading |
|
|
3,223 |
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|
16 |
|
1.96 |
% |
|
2,175 |
|
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|
12 |
|
2.13 |
% |
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Overnight deposits |
|
|
330,962 |
|
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|
2,060 |
|
2.50 |
% |
|
340,300 |
|
|
|
1,534 |
|
1.81 |
% |
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Other interest-earning assets |
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|
31,371 |
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|
369 |
|
4.72 |
% |
|
35,932 |
|
|
|
283 |
|
3.16 |
% |
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Total interest-earning assets |
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2,650,789 |
|
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|
30,828 |
|
4.66 |
% |
|
1,943,518 |
|
|
|
19,998 |
|
4.13 |
% |
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Non-interest-earning assets |
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38,093 |
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|
20,134 |
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Allowance for loan and lease losses |
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(21,466 |
) |
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(16,742 |
) |
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Total assets |
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$ |
|
2,667,416 |
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$ |
|
1,946,910 |
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Liabilities and Stockholders’ Equity: |
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Interest-bearing liabilities: |
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Money market, savings and other interest-bearing accounts |
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$ |
|
1,071,388 |
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$ |
|
5,235 |
|
1.96 |
% |
$ |
|
549,950 |
|
|
$ |
|
1,428 |
|
1.04 |
% |
||
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Certificates of deposit |
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|
112,538 |
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|
701 |
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2.50 |
% |
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84,636 |
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|
371 |
|
1.76 |
% |
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Total interest-bearing deposits |
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1,183,926 |
|
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|
5,936 |
|
2.01 |
% |
|
634,586 |
|
|
|
1,799 |
|
1.14 |
% |
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|
Borrowed funds |
|
|
242,493 |
|
|
|
1,955 |
|
3.19 |
% |
|
80,772 |
|
|
|
804 |
|
3.99 |
% |
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Total interest-bearing liabilities |
|
|
1,426,419 |
|
|
|
7,891 |
|
2.22 |
% |
|
715,358 |
|
|
|
2,603 |
|
1.46 |
% |
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Non-interest-bearing liabilities: |
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Non-interest-bearing deposits |
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937,222 |
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|
948,021 |
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Other non-interest-bearing liabilities |
|
|
25,750 |
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|
37,422 |
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Total liabilities |
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2,389,391 |
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|
|
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|
|
1,700,801 |
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|
Stockholders’ Equity |
|
|
278,025 |
|
|
|
|
|
|
|
|
246,109 |
|
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|
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|
Total liabilities and equity |
|
$ |
|
2,667,416 |
|
|
|
|
|
|
|
$ |
|
1,946,910 |
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Net interest income |
|
|
|
|
$ |
|
22,937 |
|
|
|
|
|
|
$ |
|
17,395 |
|
|
|
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|
Net interest rate spread (2) |
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|
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|
|
|
2.44 |
% |
|
|
|
|
|
|
2.67 |
% |
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|
Net interest-earning assets |
|
$ |
|
1,224,370 |
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$ |
|
1,228,160 |
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Net interest margin (3) |
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|
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|
3.47 |
% |
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|
|
|
|
|
3.59 |
% |
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Ratio of interest earning assets to interest bearing liabilities |
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|
|
1.86 |
x |
|
|
|
|
|
|
2.72 |
x |
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(1) |
Amount includes deferred loan fees and non-performing loans. |
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(2) |
Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets. |
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(3) |
Determined by dividing annualized net interest income by total average interest-earning assets. |
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||||||||
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|
Six months ended |
|
||||||||||||||||||||||
|
|
|
June 30, 2019 |
|
June 30, 2018 |
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Average |
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|
Average |
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|
Outstanding |
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Outstanding |
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|
||||||||||
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(dollars in thousands) |
|
Balance |
|
Interest |
|
Yield/Rate |
|
Balance |
|
Interest |
|
Yield/Rate |
|
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|
Assets: |
|
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|
Interest-earning assets: |
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|
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|
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|
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|
||||||||
|
Loans (1) |
|
$ |
|
2,100,546 |
|
|
$ |
|
53,069 |
|
5.09 |
% |
$ |
|
1,504,695 |
|
|
$ |
|
35,208 |
|
4.72 |
% |
||
|
Available-for-sale securities |
|
|
42,521 |
|
|
|
546 |
|
2.55 |
% |
|
28,801 |
|
|
|
301 |
|
2.08 |
% |
||||||
|
Held-to-maturity securities |
|
|
4,382 |
|
|
|
45 |
|
2.04 |
% |
|
5,207 |
|
|
|
54 |
|
2.10 |
% |
||||||
|
Equity investments – non-trading |
|
|
3,216 |
|
|
|
39 |
|
2.41 |
% |
|
2,169 |
|
|
|
23 |
|
2.13 |
% |
||||||
|
Overnight deposits |
|
|
280,216 |
|
|
|
3,449 |
|
2.48 |
% |
|
304,686 |
|
|
|
2,577 |
|
1.71 |
% |
||||||
|
Other interest-earning assets |
|
|
27,866 |
|
|
|
670 |
|
4.85 |
% |
|
35,838 |
|
|
|
528 |
|
2.97 |
% |
||||||
|
Total interest-earning assets |
|
|
2,458,747 |
|
|
|
57,818 |
|
4.74 |
% |
|
1,881,396 |
|
|
|
38,691 |
|
4.15 |
% |
||||||
|
Non-interest-earning assets |
|
|
40,739 |
|
|
|
|
|
|
|
|
34,055 |
|
|
|
|
|
|
|
||||||
|
Allowance for loan and lease losses |
|
|
(20,489 |
) |
|
|
|
|
|
|
|
(16,057 |
) |
|
|
|
|
|
|
||||||
|
Total assets |
|
$ |
|
2,478,997 |
|
|
|
|
|
|
|
$ |
|
1,899,394 |
|
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|
|
|
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|
||||
|
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|
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|
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|
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|
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||||||||
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Money market, savings and other interest-bearing accounts |
|
$ |
|
980,365 |
|
|
$ |
|
9,271 |
|
1.91 |
% |
$ |
|
532,301 |
|
|
$ |
|
2,619 |
|
0.99 |
% |
||
|
Certificates of deposit |
|
|
108,934 |
|
|
|
1,311 |
|
2.43 |
% |
|
78,761 |
|
|
|
619 |
|
1.58 |
% |
||||||
|
Total interest-bearing deposits |
|
|
1,089,299 |
|
|
|
10,582 |
|
1.96 |
% |
|
611,062 |
|
|
|
3,238 |
|
1.07 |
% |
||||||
|
Borrowed funds |
|
|
226,918 |
|
|
|
3,721 |
|
3.26 |
% |
|
82,535 |
|
|
|
1,542 |
|
3.77 |
% |
||||||
|
Total interest-bearing liabilities |
|
|
1,316,217 |
|
|
|
14,303 |
|
2.19 |
% |
|
693,597 |
|
|
|
4,780 |
|
1.39 |
% |
||||||
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-interest-bearing deposits |
|
|
864,470 |
|
|
|
|
|
|
|
|
919,990 |
|
|
|
|
|
|
|
||||||
|
Other non-interest-bearing liabilities |
|
|
24,598 |
|
|
|
|
|
|
|
|
42,608 |
|
|
|
|
|
|
|
||||||
|
Total liabilities |
|
|
2,205,285 |
|
|
|
|
|
|
|
|
1,656,195 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Stockholders’ Equity |
|
|
273,712 |
|
|
|
|
|
|
|
|
243,199 |
|
|
|
|
|
|
|
||||||
|
Total liabilities and equity |
|
$ |
|
2,478,997 |
|
|
|
|
|
|
|
$ |
|
1,899,394 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net interest income |
|
|
|
|
$ |
|
43,515 |
|
|
|
|
|
|
$ |
|
33,911 |
|
|
|
||||||
|
Net interest rate spread (2) |
|
|
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
|
2.75 |
% |
||||||||
|
Net interest-earning assets |
|
$ |
|
1,142,530 |
|
|
|
|
|
|
|
$ |
|
1,187,799 |
|
|
|
|
|
|
|
||||
|
Net interest margin (3) |
|
|
|
|
|
|
|
3.57 |
% |
|
|
|
|
|
|
3.63 |
% |
||||||||
|
Ratio of interest earning assets to interest bearing liabilities |
|
|
|
|
|
|
|
1.87 |
x |
|
|
|
|
|
|
2.71 |
x |
||||||||
|
(1) |
Amount includes deferred loan fees and non-performing loans. |
|
|
(2) |
Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets. |
|
|
(3) |
Determined by dividing annualized net interest income by total average interest-earning assets. |
Net Interest Income
Interest income increased $10.8 million to $30.8 million for the second quarter of 2019, as compared to $20.0 million for the second quarter of 2018. This increase was due primarily to a $10.0 million increase in interest income on loans. The increase in interest income on loans was due to a $694.5 million increase in the average balance of loans to $2.23 billion and a 34 basis point increase in the average yield to 5.05% for the second quarter of 2019, as compared to 4.71% for the second quarter of 2018.
Interest income increased $19.1 million to $57.8 million for the six months ended June 30, 2019, as compared to $38.7 million for the six months ended June 30, 2018. This increase was due primarily to a $17.9 million increase in interest income on loans. The increase in interest income on loans was due to a $595.9 million increase in the average balance of loans to $2.10 billion and a 37 basis point increase in the average yield to 5.09% for the six months ended June 30, 2019.
Interest expense was $7.9 million for the second quarter of 2019, as compared to $2.6 million for the second quarter of 2018, an increase of $5.3 million. This increase was due to a $4.1 million increase in interest on deposits and a $1.2 million increase in interest on borrowings. The increase in interest expense on deposits was due primarily to a $549.3 million increase in the average balance of interest-bearing deposits to $1.18 billion for the second quarter of 2019 and an 87 basis point increase in the average cost of deposits to 2.01%. Interest expense on borrowings increased primarily due to an increase in the average balance of borrowings of $161.7 million to $242.5 million for the second quarter of 2019, as compared to $80.8 million for the second quarter of 2018.
Interest expense was $14.3 million for the six months ended June 30, 2019, as compared to $4.8 million for the six months ended June 30, 2018, an increase of $9.5 million. This increase was due primarily to a $7.3 million increase in interest on deposits and a $2.2 million increase in interest on borrowings. The increase in interest expense on deposits was due primarily to a $478.2 million increase in the average balance of interest-bearing deposits to $1.09 billion for the six months ended June 30, 2019 and an 89 basis point increase in the average cost of deposits to 1.96%. Interest expense on borrowings increased primarily due to increase in the average balance of borrowings of $144.4 million to $226.9 million for the six months ended June 30, 2019, as compared to $82.5 million for the six months ended June 30, 2018.
Net interest margin decreased 12 basis points to 3.47% for the second quarter of 2019 from 3.59% for the second quarter of 2018. Total average interest-earning assets increased $707.3 million for the second quarter of 2019 as compared to the second quarter of 2018, due primarily to a $694.5 million increase in the average balance of loans. The total yield on average interest-earning assets increased 53 basis points to 4.66% in the second quarter of 2019 as compared to 4.13% in the same period in 2018. The cost of interest-bearing liabilities increased 76 basis points to 2.22% for the second quarter of 2019, as compared to 1.46% for the second quarter of 2018. As the yield curve flattened and inverted over the last year, the cost of deposits and short-term borrowings grew at a higher rate than the yield on average interest earning assets, resulting in a lower net interest margin for the second quarter of 2019, as compared to the second quarter of 2018. In addition, non-interest-bearing deposits accounted for 44% of total average deposits in the second quarter of 2019 as compared to 60% in the second quarter of 2018. When compared to the second quarter of 2018, yields on interest-earning assets increased at a rate of 13%, while the cost of deposits and short-term borrowings grew at a rate of 52%.
Net interest margin decreased 7 basis point to 3.57% for the six months ended June 30, 2019 from 3.63% for the six months ended June 30, 2018. Total average interest-earning assets increased $577.4 million for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018, due primarily to a $595.9 million increase in the balance of loans and a $13.9 million increase in the average balance of securities, which was partially offset by a decrease of $32.4 million in average balance of overnight funds and other interest-earning assets. The total yield on average interest-earning assets increased 59 basis points to 4.74% in the six months ended June 30, 2019 as compared to 4.15% in the same period in 2018. The cost of interest-bearing liabilities increased 80 basis points to 2.19% for the six months ended June 30, 2019, as compared to 1.39% for the same period in 2018. As the yield curve flattened and inverted over the last year, the cost of deposits and short-term borrowings grew at a higher rate than the yield on average interest-earning assets, resulting in a lower net interest margin for the six months ended June 30, 2019, as compared to the same period in 2018. In addition, non-interest-bearing deposits accounted for 44% of total average deposits for the six months ended June 30, 2019 as compared to 60% for the six months ended June 30, 2018. When compared to the six months ended June 30, 2018, yields on interest-earning assets increased at a rate of 14%, while the cost of borrowing grew at a rate of 58%.
Asset Quality
Non-performing assets consist of non-accrual loans, accruing loans that are 90 days or more past due, consumer loans placed in forbearance with payments past due over 90 days and still accruing, non-accrual troubled debt restructurings and real estate owned (“REO”) that has been acquired in partial or full satisfaction of loan obligations or upon foreclosure. The Bank had no REO properties at June 30, 2019 and December 31, 2018.
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
||||||
|
(dollars in thousands) |
|
June 30, 2019 |
|
December 31, 2018 |
|
||||
|
Non-performing assets: |
|
|
|
|
|
|
|
||
|
Non-accrual loans: |
|
|
|
|
|
|
|
||
|
Commercial |
|
$ |
— |
|
$ |
— |
|
||
|
One-to-four family |
|
|
— |
|
|
— |
|
||
|
Commercial and industrial |
|
|
— |
|
|
— |
|
||
|
Consumer |
|
|
38 |
|
|
50 |
|
||
|
Total non-accrual loans |
|
$ |
38 |
|
$ |
50 |
|
||
|
Accruing loans 90 days or more past due |
|
|
1,074 |
|
|
239 |
|
||
|
Total non-performing loans and assets |
|
$ |
1,112 |
|
$ |
289 |
|
||
|
Nonaccrual loans as % of loans outstanding |
|
|
— |
% |
|
— |
% |
||
|
Non-performing loans as % of loans outstanding |
|
|
0.05 |
% |
|
0.02 |
% |
||
|
Allowance for loan losses |
|
$ |
(22,715 |
) |
$ |
(18,942 |
) |
||
|
Allowance for loan losses as % of loans outstanding |
|
|
0.97 |
% |
|
1.02 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||
|
(dollars in thousands) |
|
2019 |
|
2018 |
|
2019 |
2018 |
|||||||||||||||
|
Provision/(credit) for loan losses |
|
$ |
|
1,950 |
|
$ |
|
1,270 |
|
$ |
|
(81 |
) |
$ |
|
2,747 |
|
|||||
|
Charge-offs |
|
$ |
|
69 |
|
$ |
|
67 |
|
$ |
|
416 |
|
$ |
|
224 |
|
|||||
|
Recoveries |
|
$ |
|
— |
|
$ |
|
— |
|
$ |
|
(4,270 |
) |
$ |
|
(53 |
) |
|||||
|
Net charge-offs/(recoveries) as % of average loans (annualized) |
|
|
0.01 |
% |
|
0.02 |
% |
|
(0.37 |
)% |
|
0.02 |
% |
|||||||||
The provision for loan losses for the second quarter of 2019 was $2.0 million, as compared to $1.3 million for 2018. The provision for loan losses for the six months ended June 30, 2019 was a credit of $81,000, as compared to $2.7 million for six months ended June 30, 2018. The negative provision for loan losses for the six months ended June 30, 2019 consisted of a $4.2 million provision recorded as a result of the record loan growth during 2019, and recoveries of $4.3 million, of which $4.2 million related to the taxi medallion loans.
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
(dollars in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||
|
Service charges on deposit accounts |
|
$ |
|
908 |
|
$ |
|
821 |
|
|
$ |
|
1,727 |
|
$ |
|
2,731 |
|
|
Prepaid third-party debit card income |
|
|
1,422 |
|
|
1,519 |
|
|
|
2,679 |
|
|
2,427 |
|
||||
|
Other service charges and fees |
|
|
313 |
|
|
346 |
|
|
|
591 |
|
|
2,840 |
|
||||
|
Unrealized gain/(loss) of equity securities |
|
|
31 |
|
|
— |
|
|
70 |
|
|
— |
||||||
|
Gains/(Losses) on sale of securities |
|
|
— |
|
|
(37 |
) |
|
|
— |
|
|
(37 |
) |
||||
|
Total non-interest income |
|
$ |
|
2,674 |
|
$ |
|
2,649 |
|
|
$ |
|
5,067 |
|
$ |
|
7,961 |
|
Non-interest income was substantially unchanged at $2.7 million in the second quarter of 2019, as compared to $2.6 million in the second quarter of 2018.
Non-interest income decreased by $2.9 million to $5.1 million in the six months ended June 30, 2019, as compared to $8.0 million for the six months ended June 30, 2018, primarily due to decreases of $1.0 million in service charges on deposits and $2.2 million in other charges and fees, partially offset by an increase in debit card income of $252,000. The decrease in service charges on deposits was primarily due to a decline of $1.1 million in wire fees related to transactions by digital currency customers. The decrease in other service charges and fees was due to a $2.1 million decrease in foreign currency conversion fees, which were at an elevated level during first quarter of 2018 as customers, particularly those in the digital currency business, were transferring funds from their global corporate accounts back into their U.S. accounts with the Bank.
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
(dollars in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
|
Compensation and benefits |
|
$ |
7,921 |
|
$ |
6,126 |
|
$ |
15,411 |
|
$ |
12,443 |
|
Bank premises and equipment |
|
|
1,348 |
|
|
1,288 |
|
|
2,683 |
|
|
2,468 |
|
Professional fees |
|
|
917 |
|
|
841 |
|
|
1,711 |
|
|
1,619 |
|
Technology costs |
|
|
2,618 |
|
|
609 |
|
|
4,003 |
|
|
2,115 |
|
Other expenses |
|
|
1,920 |
|
|
1,411 |
|
|
3,610 |
|
|
2,868 |
|
Total non-interest expense |
|
$ |
14,724 |
|
$ |
10,275 |
|
$ |
27,418 |
|
$ |
21,513 |
Non-interest expense increased $4.4 million to $14.7 million during the second quarter of 2019 as compared to $10.3 million for the second quarter of 2018. Compensation and benefits increased $1.8 million to $7.9 million for the second quarter of 2019 as compared to $6.1 million for the second quarter of 2018. This increase was due primarily to an increase of 24 full-time equivalent employees for the second quarter of 2019, as compared to the second quarter of 2018.
Contacts
Investor Relations Department
212-365-6721
[email protected]
