MCB - Why Shares of Metropolitan Bank Are Surging Today
2023-03-31 10:59:33 ET
Shares of the nearly $6.3 billion asset Metropolitan Bank (NYSE: MCB) traded more than 25% higher as of 10:33 a.m. ET today after the bank issued a financial update this morning, which follows a recent short report on the bank by Vidar Research.
Yesterday, Vidar Research in a Substack post called Metropolitan Bank a "mixed bag of problems," which sent shares tumbling. The post cited Metropolitan Bank's similarities to Signature Bank , which was taken into receivership by the Federal Deposit Insurance Corp. (FDIC) earlier this month; its ties to crypto; and issues with the company's balance sheet.
This morning, Metropolitan seemingly fought back, issuing an update on the company's current financials. Metropolitan said that total deposits between the end of 2022 and March 29, 2023, had grown by more than 5% and that insured deposits accounted for 66% of total deposits. The bank also said it has enough liquidity and funding capacity to cover 170% of uninsured deposits, as well as strong capital ratios, and that asset quality in its commercial real estate portfolio remains strong.
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Why Shares of Metropolitan Bank Are Surging Today