Metropolitan Bank Holding Corp. (NYSE:MCB) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET
Company Participants
Mark DeFazio - President and CEO
Greg Sigrist - EVP and CFO
Conference Call Participants
Chris O’Connell - KBW
Alex Lau - JPMorgan
Operator
Welcome to the Metropolitan Commercial Bank's Third Quarter 2022 Earnings Call. Hosting the call today from Metropolitan Commercial Bank, are Mark DeFazio, President and Chief Executive Officer; and Greg Sigrist, Executive Vice President and Chief Financial Officer.
Today's call is being recorded. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the prepared remarks. [Operator Instructions].
During today's presentation, reference will be made to the company's earnings release and investor presentation, copies of which are made available at mcbankny.com.
Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to the company's notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release.
It is now my pleasure to turn the floor over to Mark DeFazio, President and Chief Executive Officer. You may begin.
Mark DeFazio
Thank you, Katy. And good morning, and welcome to MCB's third quarter earnings call. I am pleased with MCB's strong and sustained performance, as evidenced by 17.1% return on average tangible common equity this quarter, powered by the strength of our sustained loan growth and NIM expansion. Amid a backdrop of rising interest rates and increasing economic uncertainty, the MCB team has remained engaged with our clients and that commitment shows in our financial performance.
When we set out over 23 years ago to build a branch like commercial bank. In doing so, managing the funding side of our balance sheet by adding optionality has been the cornerstone of successful net interest margin management. Fast forward, MCB remains focused on the management and the development of our diversified lower cost funding base, while looking out two years or more to expand our funding strategies to support the balance sheet growth we have seen over the past 20 years.
The third quarter was no exception. We saw total deposit growth apart from expected crypto-related deposit outflows, as we were able to source lower cost deposits that were more than offset outflows from the positive seeking treasury rates are looking to substantially reprice existing arrangements. This highlights the pricing discipline that underpins our margin management. Margin management is reflected in our ability to drive top-line growth in net interest income, with high quality loan growth, funded by lower cost and scalable deposit verticals.