Metropolitan Bank slides as credit costs drive Q2 profit miss
MCB•Analyst says future credit expenses may be limited
Hovde Group analyst Feddie Strickland said:
"We feel future credit expenses are ring-fenced given resolution of larger legacy credit issues and there is even a possibility of potential recoveries. Given strong fundamental trends and resolution of these credit issues, we recommend new investors take advantage of the pullback."
Shares fall after quarterly profit misses estimates
- Community lender Metropolitan Bank's MCB.N shares slid as much as 12.2%, and were last down 8.6% at $90.53.
- MCB late Tuesday posted second-quarter profit below estimates as an elevated provision for credit losses weighed.
- Credit costs were driven primarily by a single commercial and industrial loan in a non-core portfolio segment.
- Bank misses estimates after beating the past two quarters, per LSEG data.
- As of the last close, MCB was up 29.7% year to date.
