BUZZ-Metropolitan Bank jumps after Q1 profit beat, strong deposit flows

Reuters04-19

** Shares of community lender Metropolitan Bank rise as much as 19.9%; last up 17.1% at $38.76

** Late on Thursday, MCB posted Q1 profit of $1.46/shr, beating analysts' average estimate of $1.34/shr - LSEG

** Q1 total deposits jumped 21.5% to $6.24 bln, driven by growth in its retail, municipal, property management, and other deposit verticals

** Q1 provision for credit losses of $528,000 was lower than expectations of $3.9 mln due to flat net charge-offs, or debts that are unlikely to be recovered

** Piper Sandler analysts say the deposit flows were surprisingly strong and that it was important to recognize that MCB did not have to really pay up to attract these deposits

** MCB has a uniquely profitable business model and is one of only a handful of differentiated growth stories in the banking industry, Piper Sandler analysts added

** As of last close, MCB shares down 40.2% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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