Pamula Chaya, a director at Metropolitan Bank Holding Corp. (NYSE:MCB), recently acquired additional shares of the company. According to a recent SEC filing, Chaya purchased 450 shares of common stock on October 24, 2024. The shares were bought at a weighted average price of $54.2861, with individual transaction prices ranging from $54.26 to $54.2936. This acquisition amounts to a total investment of approximately $24,428. Following this transaction, Chaya now directly owns 6,513 shares of the company.
In other recent news, Metropolitan Commercial Bank disclosed its Q3 earnings per share (EPS) at $1.08, inclusive of $12.6 million in charges. The bank's adjusted return on tangible common equity (ROTCE) was reported at 12% for the quarter. The bank also saw a net interest margin (NIM) increase to 3.62%, with loan growth at $68 million and an increase in deposits by $100 million.
Looking ahead, Metropolitan Commercial Bank anticipates a mid-teens ROTCE and NIM nearing 3.75% in the next 12-18 months. The bank also projects 10%-12% loan growth and 6%-8% growth in non-interest income for 2025. Notably, the bank aims to keep the commercial real estate to risk-based capital ratio above 350%.
However, the bank also foresees a NIM decline of 12 to 15 basis points for Q4, and an effective tax rate rise to 31%-32%. The bank's CEO, Mark DeFazio, addressed unexpected regulatory remediation costs, expressing confidence that these issues are nearing resolution. CFO Dan Dougherty provided guidance for Q4, predicting loan growth to reach $500 million for the year, with $200 million to $250 million anticipated in Q4.
InvestingPro Insights
The recent insider purchase by director Pamula Chaya aligns with several positive indicators for Metropolitan Bank Holding Corp. (NYSE:MCB). According to InvestingPro data, MCB's stock has shown impressive performance, with a 70.56% price total return over the past year and a substantial 30.85% increase in the last six months. This upward trend suggests growing investor confidence in the company's prospects.
InvestingPro Tips highlight that MCB is currently profitable and analysts expect this trend to continue. The company's P/E ratio of 9.8 indicates that it may be undervalued compared to its earnings potential. Additionally, MCB boasts a high shareholder yield, which could be attractive to value-oriented investors like Chaya.
However, it's worth noting that MCB faces some challenges. The company suffers from weak gross profit margins, and its P/E ratio is high relative to near-term earnings growth expectations. These factors may explain why three analysts have revised their earnings estimates downward for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for MCB, providing a deeper understanding of the company's financial health and market position.
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