Metropolitan Bank (NYSE:MCB) Announces Earnings Results, Beats Estimates By $0.73 EPS

Key Points

• Earnings beat: Metropolitan Bank reported Q1 EPS of $2.92 versus $2.19 expected (a $0.73 beat) and revenue of $88.49M versus $87.33M, with a net margin of 13.49% and ROE of 9.69%.
• Dividend increase: The board raised the quarterly dividend to $0.25 (from $0.20), equivalent to a $1.00 annualized dividend and a ~1.1% yield.
• Market and investor activity: Shares fell about 2.9% to $88.70 despite the beat; insiders sold roughly 15,695 shares (~$1.47M) while large institutions materially added positions, leaving institutional ownership at ~79.8% and analysts' consensus rating at "Buy" with a $93.67 target.

Metropolitan Bank (NYSE:MCB - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $2.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.19 by $0.73, Zacks reports. Metropolitan Bank had a net margin of 13.49% and a return on equity of 9.69%. The company had revenue of $88.49 million during the quarter, compared to the consensus estimate of $87.33 million.

Metropolitan Bank Stock Down 2.9%

Shares of NYSE:MCB traded down $2.65 during trading on Tuesday, reaching $88.70. 155,610 shares of the stock traded hands, compared to its average volume of 179,912. The stock has a 50-day moving average of $85.92 and a two-hundred day moving average of $80.65. Metropolitan Bank has a 52-week low of $53.80 and a 52-week high of $97.84. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market cap of $1.10 billion, a P/E ratio of 13.34 and a beta of 1.13.

Metropolitan Bank Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 12th. Stockholders of record on Friday, May 1st will be issued a dividend of $0.25 per share. The ex-dividend date is Friday, May 1st. This is a positive change from Metropolitan Bank's previous quarterly dividend of $0.20. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.1%. Metropolitan Bank's dividend payout ratio is currently 12.03%.

Insider Buying and Selling

In other news, Director Robert C. Patent sold 4,445 shares of the stock in a transaction that occurred on Friday, January 23rd. The shares were sold at an average price of $92.28, for a total transaction of $410,184.60. Following the sale, the director owned 84,240 shares in the company, valued at $7,773,667.20. This represents a 5.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Nick Rosenberg sold 1,250 shares of the stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $90.21, for a total transaction of $112,762.50. Following the sale, the executive vice president owned 25,839 shares in the company, valued at approximately $2,330,936.19. The trade was a 4.61% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 15,695 shares of company stock worth $1,472,847. Corporate insiders own 5.50% of the company's stock.

Institutional Investors Weigh In On Metropolitan Bank

A number of large investors have recently added to or reduced their stakes in MCB. Adage Capital Partners GP L.L.C. grew its position in Metropolitan Bank by 114.8% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 559,479 shares of the company's stock worth $42,722,000 after purchasing an additional 299,061 shares during the period. Wellington Management Group LLP grew its position in Metropolitan Bank by 66.6% in the 4th quarter. Wellington Management Group LLP now owns 592,799 shares of the company's stock worth $45,266,000 after purchasing an additional 236,946 shares during the period. Millennium Management LLC grew its position in Metropolitan Bank by 418.5% in the 3rd quarter. Millennium Management LLC now owns 47,455 shares of the company's stock worth $3,551,000 after purchasing an additional 38,302 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Metropolitan Bank by 854.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 41,747 shares of the company's stock worth $2,922,000 after purchasing an additional 37,374 shares during the period. Finally, Tudor Investment Corp ET AL grew its position in Metropolitan Bank by 111.6% in the 4th quarter. Tudor Investment Corp ET AL now owns 61,788 shares of the company's stock worth $4,718,000 after purchasing an additional 32,587 shares during the period. Institutional investors own 79.83% of the company's stock.

Analysts Set New Price Targets

MCB has been the subject of a number of analyst reports. Wall Street Zen raised shares of Metropolitan Bank from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Keefe, Bruyette & Woods raised their target price on shares of Metropolitan Bank from $90.00 to $105.00 and gave the company an "outperform" rating in a research note on Thursday, January 22nd. UBS Group initiated coverage on shares of Metropolitan Bank in a research note on Thursday, April 16th. They set a "neutral" rating and a $97.00 target price for the company. Weiss Ratings raised shares of Metropolitan Bank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, April 6th. Finally, Zacks Research raised shares of Metropolitan Bank from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $93.67.

About Metropolitan Bank

Metropolitan Bank NYSE: MCB, through its principal subsidiary Metropolitan Commercial Bank, operates as a New York–based regional financial institution providing a range of commercial and consumer banking services. The company offers deposit products including checking, savings and money market accounts, as well as business and personal certificates of deposit. On the lending side, Metropolitan Bank extends commercial real estate financing, equipment loans, working capital lines of credit and consumer installment loans tailored to the needs of small- and medium-sized enterprises and individual customers.

In addition to traditional deposit and lending services, Metropolitan Bank provides specialized treasury and cash-management solutions, foreign exchange services and letters of credit for both domestic businesses and multinational clients.

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