Start Time: 09:00 January 1, 0000 9:39 AM ET
Metropolitan Bank Holding Corp. (NYSE:MCB)
Q2 2022 Earnings Conference Call
July 22, 2022, 09:00 AM ET
Company Participants
Mark DeFazio - President and CEO
Greg Sigrist - EVP and CFO
Conference Call Participants
Alex Lau - JPMorgan
Chris O’Connell - Keefe, Bruyette & Woods
Operator
Welcome to the Metropolitan Commercial Bank Second 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
Good morning and welcome to MCB's second quarter earnings call. MCB celebrated its 23rd anniversary in June, and I am pleased to announce at this time record quarterly earnings and return on average tangible common equity of 16.7%. Our business thesis to assist clients in building and sustaining generational wealth has been the foundation of our growth and success. That focus is evident in our long history of strong credit quality, low charge-offs and the strength of our long-term financial performance.
Our liquidity position remains strong. We have a proven track record on efficiently funding balance sheet growth. We have also maintained our pricing discipline, as is evident in our NIM expansion. It should be noted that along with dealing with a higher rate environment, we are already preparing for and when the Fed will reverse its costs by lifting out -- by reversing its cost by lifting out floors on floating rate loans along with resetting rates on automatic renewals. MCB has a solid track record of not reaching its floors. Loan floors have historically been an instrumental strategy for us in managing NIM when rates decline to near zero.
I would like to also remind all investors that MCB's internal policy is to limit the crypto-related deposits to 50% of the total available for investment or lending. However, as we've stated many times over the past few years, due to the volatility in this asset class, MCB has maintained 100% of crypto-related deposits in all Federal Reserve accounts.