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Metropolitan Bank Holding Corp. Reports Second Quarter 2025 Results

Net Interest Margin increased to 3.83%

Diluted EPS of $1.76

Financial Highlights

  • Diluted earnings per share of $1.76 for the second quarter of 2025, an increase of 21.4% compared to the first quarter of 2025, inclusive of $1.6 million of digital transformation project spend, or $0.10 diluted earnings per common share, after tax.
  • The net interest margin for the second quarter of 2025 was 3.83%, an increase of 15 basis points compared to 3.68% for the prior linked quarter and an increase of 39 basis points compared to 3.44% for the prior year period.
  • Total loans at June 30, 2025 were $6.6 billion, an increase of $270.7 million, or 4.3%, from March 31, 2025 and $773.9 million, or 13.3%, from June 30, 2024.
  • Total deposits at June 30, 2025 were $6.8 billion, an increase of $342.0 million, or 5.3%, from March 31, 2025 and $621.6 million, or 10.1%, from June 30, 2024.
  • On July 17, 2025, the Company’s board of directors declared a quarterly dividend on the Company’s common stock of $0.15 per share, the Company’s first cash dividend in its history, payable to holders of record on July 28.
  • The Company completed its initial $50 million share repurchase program in May 2025, resulting in the purchase of 878,807 shares of common stock at an average price of $56.90 per share. On July 17, 2025, the Company’s board of directors approved a new share repurchase plan with authorization to purchase up to an additional $50 million of the Company’s common stock. In aggregate, the board of directors has authorized $100 million of share repurchases since March.
  • Asset quality continues to be stable. The ratio of non-performing loans to total loans was 0.60% at June 30, 2025, compared to 0.54% for the prior linked quarter and 0.53% for the prior year period.
  • Liquidity remains strong. At June 30, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion, which represented 178% of our estimated uninsured deposits.
  • The Company and Bank are “well capitalized” under all applicable regulatory guidelines, with total risk-based capital ratios of 12.2% and 12.0%, respectively, at June 30, 2025, well above regulatory minimums.

Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $18.8 million, or $1.76 per diluted common share, for the second quarter of 2025 compared to $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025, and $16.8 million, or $1.50 per diluted common share, for the second quarter of 2024.

Mark DeFazio, President and Chief Executive Officer, commented,

“I am pleased with MCB’s sustained performance throughout our various business lines. Our second quarter and first half results underscore the strength and discipline of our franchise, which position us well to balance supporting our clients with attractive shareholder returns. Our true diversified commercial bank offerings clearly differentiate MCB from our peers.

“In the second quarter, we completed our initial $50 million share repurchase program announced in March, at prices well below our tangible book value. Given robust results coupled with confidence in continued business strength, our board has authorized an additional $50 million repurchase program for a total of $100 million authorized year to date. As part of our multi-pronged approach to return capital to shareholders while maintaining investment and expansion optionality, our board also approved an initial quarterly cash dividend.

“Our healthy balance sheet, together with strong earnings momentum, enables us to opportunistically capitalize on various strategic initiatives to support responsible growth.”

Balance Sheet

Total cash and cash equivalents were $152.5 million at June 30, 2025, a decrease of $44.0 million, or 22.4%, from March 31, 2025, and a decrease of $92.2 million, or 37.7%, from June 30, 2024. The decrease from March 31, 2025 primarily reflects an increase in the loan book of $270.7 million and an $85.0 million decrease in wholesale funding, partially offset by an increase of $342.0 million in deposits. The decrease from June 30, 2024 primarily reflects an increase in the loan book of $773.9 million, partially offset by an increase of $621.6 million in deposits.

Total loans, net of deferred fees and unamortized costs, were $6.6 billion at June 30, 2025, an increase of $270.7 million, or 4.3%, from March 31, 2025, and an increase of $773.9 million, or 13.3%, from June 30, 2024. Loan production was $492.0 million for the second quarter of 2025 compared to $409.8 million for the prior linked quarter and $290.8 million for the prior year period. The increase in total loans from March 31, 2025, was due primarily to an increase of $252.5 million in commercial real estate (“CRE”) loans (including owner-occupied). The increase in total loans from June 30, 2024 was due primarily to an increase of $790.8 million in CRE loans (including owner-occupied).

Total deposits were $6.8 billion at June 30, 2025, an increase of $342.0 million, or 5.3%, from March 31, 2025, and an increase of $621.6 million, or 10.1%, from June 30, 2024. Deposit growth was broadly distributed across the Bank’s various deposit verticals.

At June 30, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion. The Company and the Bank each met all the requirements to be considered “well capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 371.9% of total risk-based capital at June 30, 2025, compared to 367.0% and 358.4% at March 31, 2025 and June 30, 2024, respectively. The increased CRE concentration ratio is primarily the result of the Bank funding the share repurchase program at the Company.

Income Statement

Financial Highlights

 

 

Three months ended

 

 

Six months ended

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

 

Jun. 30,

 

Jun. 30,

 

(dollars in thousands, except per share data)

 

2025

 

2025

 

2024

 

 

2025

 

2024

 

Total revenues(1)

 

$

76,270

 

$

70,590

 

$

67,678

 

 

$

146,860

 

$

134,391

 

Net income (loss)

 

$

18,767

 

$

16,354

 

$

16,799

 

 

 

35,121

 

 

33,002

 

Diluted earnings (loss) per common share

 

$

1.76

 

$

1.45

 

$

1.50

 

 

 

3.20

 

 

2.96

 

Return on average assets(2)

 

 

0.97

%

 

0.89

%

 

0.92

%

 

 

0.93

%

 

0.91

%

Return on average equity(2)

 

 

10.4

%

 

9.0

%

 

9.9

%

 

 

9.7

%

 

9.9

%

Return on average tangible common equity(2), (3), (4)

 

 

10.5

%

 

9.1

%

 

10.1

%

 

 

9.8

%

 

10.0

%

_____________________________

(1)

 

Total revenues equal net interest income plus non-interest income.

(2)

 

Ratios are annualized.

(3)

 

Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

(4)

 

Net income divided by average tangible common equity.

Net Interest Income

Net interest income for the second quarter of 2025 was $73.6 million compared to $67.0 million for the prior linked quarter and $61.5 million for the prior year period. The $6.7 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits. The $12.1 million increase from the prior year period was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits.

Net Interest Margin

Net interest margin for the second quarter of 2025 was 3.83% compared to 3.68% and 3.44% for the prior linked quarter and prior year period, respectively. The Bank’s ability to expand its net interest margin is supported by rigorous loan and deposit pricing initiatives.

The total cost of funds for the second quarter of 2025 was 310 basis points compared to 319 basis points and 334 basis points for the prior linked quarter and prior year period, respectively. The decrease from the prior linked quarter reflects the deposit mix and hedging activities, and a decrease in the average balance of borrowings. The decrease from the prior year period reflects the reduction in short-term interest rates.

Non-Interest Income

Non-interest income was $2.6 million for the second quarter of 2025, a decrease of $1.0 million from the prior linked quarter and a decrease of $3.5 million from the prior year period. The decrease from the prior linked quarter was driven primarily by a one-time recognition in the first quarter of 2025 of non-refundable program fees of $822,000. The decrease from the prior year period was driven primarily by the absence of Banking-as-a-Service revenue.

Non-Interest Expense

Non-interest expense was $43.1 million for the second quarter of 2025, an increase of $387,000 from the prior linked quarter and an increase of $852,000 from the prior year period. The increase from the prior linked quarter was due primarily to an increase of $1.4 million in technology costs, $988,000 in licensing fees and $792,000 in deposit program related fees, partially offset by a $1.5 million seasonal decrease in compensation and benefits and $1.4 million reduction in professional fees. The $852,000 increase from the prior year period was due primarily to a $1.7 million increase in compensation and benefits related to the increase in the number of employees, a $1.7 million increase in deposit program related fees, and a $610,000 increase in technology costs, partially offset by decreases of $3.3 million in professional fees.

Income Tax Expense

The effective tax rate for the second quarter of 2025 was 29.9% compared to 30.0% for the prior linked quarter and 29.7% for the prior year period.

Asset Quality

Credit quality remains stable. The ratio of non-performing loans to total loans was 0.60% at June 30, 2025 and 0.54% at March 31, 2025 and 0.53% at June 30, 2024.

The allowance for credit losses was $74.1 million at June 30, 2025, an increase of $6.3 million from March 31, 2025 and an increase of $14.1 million from June 30, 2024. The increase from the prior linked quarter was due primarily to loan growth, provisioning for a commercial real estate loan and changes in the outlook for certain macroeconomic variables.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Friday, July 18, 2025, to discuss the results. To access the event by telephone, please dial 800-579-2543 (US), 785-424-1789 (INTL), and provide conference ID: MCBQ225 approximately 15 minutes prior to the start time (to allow time for registration).

The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company’s website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software.

For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”), a New York City based full-service commercial bank. The Bank provides a broad range of business, commercial and personal banking products and services to individuals, small businesses, private and public middle-market and corporate enterprises and institutions, municipalities, and local government entities.

Metropolitan Commercial Bank was named one of Newsweek’s Best Regional Banks in 2024 and 2025. The Bank was ranked by Independent Community Bankers of America among the top ten successful loan producers for 2024 by loan category and asset size for commercial banks with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating on January 29, 2025. For the fourth time, MCB has earned a place in the Piper Sandler Bank Sm-All Stars Class of 2024.

The Bank is a New York State chartered commercial bank, a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal housing lender. For more information, please visit the Bank’s website at MCBankNY.com.

Forward-Looking Statement Disclaimer

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s future financial condition and capital ratios, results of operations and the Company’s outlook, business, share repurchases under the program, and dividend payments. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that are difficult to predict and are generally beyond our control and may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the following: the interest rate policies of the Federal Reserve and other regulatory bodies; an unexpected deterioration in the performance of our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; global pandemics, or localized epidemics, could adversely affect the Company’s financial condition and results of operations; potential recessionary conditions, including the related effects on our borrowers and on our financial condition and results of operations; an unanticipated loss of key personnel or existing clients, or an inability to attract key employees; increases in competitive pressures among financial institutions or from non-financial institutions which may result in unanticipated changes in our loan or deposit rates; unanticipated increases in FDIC insurance premiums or future assessments; legislative, tax or regulatory changes or actions, which may adversely affect the Company’s business; impacts related to or resulting from regional and community bank failures and stresses to regional banks; changes in deposit flows, funding sources or loan demand, which may adversely affect the Company’s business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition or results of operation to be reported or perceived differently; general economic conditions, including unemployment rates, either nationally or locally in some or all of the areas in which the Company does business, or conditions in the securities markets or the banking industry being less favorable than currently anticipated; inflation, which may lead to higher operating costs; declines in real estate values in the Company’s market area, which may adversely affect our loan production; an unexpected adverse financial, regulatory, legal or bankruptcy event experienced by our non-bank financial service clients; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company’s third-party service providers or those of our non-bank financial service clients for which we provide global payments infrastructure; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or clients; failure to maintain current technologies or technological changes that may be more difficult or expensive to implement than anticipated, and failure to successfully implement future information technology enhancements; the costs, including the possible incurrence of fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the successful implementation or consummation of new business initiatives, which may be more difficult or expensive than anticipated; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by clients; changes in consumer spending, borrowing or savings habits; the risks associated with adverse changes to credit quality; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance for credit losses; credit and other risks from borrower and depositor concentrations (e.g., by geographic area and by industry); difficulties associated with achieving or predicting expected future financial results; and the potential impact on the Company’s operations and clients resulting from natural or man-made disasters, wars, acts of terrorism, cyberattacks and pandemics, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forward-looking statements speak only as of the date of this release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law.

Consolidated Balance Sheet (unaudited)

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

(in thousands)

 

2025

 

2025

 

2024

 

2024

 

2024

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

13,577

 

 

$

18,572

 

 

$

13,078

 

 

$

16,674

 

 

$

18,152

 

Overnight deposits

 

 

138,876

 

 

 

177,891

 

 

 

187,190

 

 

 

301,804

 

 

 

226,510

 

Total cash and cash equivalents

 

 

152,453

 

 

 

196,463

 

 

 

200,268

 

 

 

318,478

 

 

 

244,662

 

Investment securities available-for-sale

 

 

551,029

 

 

 

523,542

 

 

 

482,085

 

 

 

510,966

 

 

 

504,748

 

Investment securities held-to-maturity

 

 

387,901

 

 

 

398,973

 

 

 

428,557

 

 

 

438,445

 

 

 

449,368

 

Equity investment securities, at fair value

 

 

5,276

 

 

 

5,221

 

 

 

5,109

 

 

 

5,213

 

 

 

2,122

 

Total securities

 

 

944,206

 

 

 

927,736

 

 

 

915,751

 

 

 

954,624

 

 

 

956,238

 

Other investments

 

 

27,297

 

 

 

27,062

 

 

 

30,636

 

 

 

26,586

 

 

 

26,584

 

Loans, net of deferred fees and unamortized costs

 

 

6,612,789

 

 

 

6,342,122

 

 

 

6,034,076

 

 

 

5,897,119

 

 

 

5,838,892

 

Allowance for credit losses

 

 

(74,071

)

 

 

(67,803

)

 

 

(63,273

)

 

 

(62,493

)

 

 

(60,008

)

Net loans

 

 

6,538,718

 

 

 

6,274,319

 

 

 

5,970,803

 

 

 

5,834,626

 

 

 

5,778,884

 

Receivables from global payments business, net

 

 

 

 

 

 

 

 

 

 

 

96,048

 

 

 

90,626

 

Other assets

 

 

191,175

 

 

 

190,718

 

 

 

183,291

 

 

 

172,996

 

 

 

168,597

 

Total assets

 

$

7,853,849

 

 

$

7,616,298

 

 

$

7,300,749

 

 

$

7,403,358

 

 

$

7,265,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,427,439

 

 

$

1,384,524

 

 

$

1,334,054

 

 

$

1,780,305

 

 

$

1,883,176

 

Interest-bearing deposits

 

 

5,363,867

 

 

 

5,064,768

 

 

 

4,648,919

 

 

 

4,489,602

 

 

 

4,286,486

 

Total deposits

 

 

6,791,306

 

 

 

6,449,292

 

 

 

5,982,973

 

 

 

6,269,907

 

 

 

6,169,662

 

Federal funds purchased

 

 

50,000

 

 

 

125,000

 

 

 

210,000

 

 

 

 

 

 

 

Federal Home Loan Bank of New York advances

 

 

150,000

 

 

 

160,000

 

 

 

240,000

 

 

 

150,000

 

 

 

150,000

 

Trust preferred securities

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

 

 

20,620

 

Secured and other borrowings

 

 

17,366

 

 

 

17,403

 

 

 

7,441

 

 

 

107,478

 

 

 

107,514

 

Prepaid third-party debit cardholder balances

 

 

 

 

 

 

 

 

 

 

 

21,970

 

 

 

22,631

 

Other liabilities

 

 

101,589

 

 

 

106,137

 

 

 

109,888

 

 

 

118,192

 

 

 

102,760

 

Total liabilities

 

 

7,130,881

 

 

 

6,878,452

 

 

 

6,570,922

 

 

 

6,688,167

 

 

 

6,573,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

113

 

 

 

113

 

 

 

112

 

 

 

112

 

 

 

112

 

Additional paid in capital

 

 

401,055

 

 

 

398,823

 

 

 

400,188

 

 

 

397,963

 

 

 

395,520

 

Retained earnings

 

 

417,782

 

 

 

399,015

 

 

 

382,661

 

 

 

361,243

 

 

 

348,977

 

Accumulated other comprehensive gain (loss), net of tax effect

 

 

(45,455

)

 

 

(47,170

)

 

 

(53,134

)

 

 

(44,127

)

 

 

(52,205

)

Treasury stock, at cost

 

 

(50,527

)

 

 

(12,935

)

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

722,968

 

 

 

737,846

 

 

 

729,827

 

 

 

715,191

 

 

 

692,404

 

Total liabilities and stockholders’ equity

 

$

7,853,849

 

 

$

7,616,298

 

 

$

7,300,749

 

 

$

7,403,358

 

 

$

7,265,591

 

Consolidated Statement of Income (unaudited)

 

 

Three months ended

 

Six months ended

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

Jun. 30,

 

Jun. 30,

(dollars in thousands, except per share data)

 

2025

 

2025

 

2024

 

2025

 

2024

Total interest income

 

$

127,043

 

$

118,770

 

$

115,761

 

$

245,813

 

$

228,096

Total interest expense

 

 

53,396

 

 

51,818

 

 

54,222

 

 

105,214

 

 

106,848

Net interest income

 

 

73,647

 

 

66,952

 

 

61,539

 

 

140,599

 

 

121,248

Provision for credit losses

 

 

6,378

 

 

4,506

 

 

1,538

 

 

10,884

 

 

2,066

Net interest income after provision for credit losses

 

 

67,269

 

 

62,446

 

 

60,001

 

 

129,715

 

 

119,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,131

 

 

2,173

 

 

2,094

 

 

4,304

 

 

3,957

Global Payments Group revenue

 

 

 

 

 

 

3,686

 

 

 

 

7,755

Other income

 

 

492

 

 

1,465

 

 

359

 

 

1,957

 

 

1,431

Total non-interest income

 

 

2,623

 

 

3,638

 

 

6,139

 

 

6,261

 

 

13,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

20,255

 

 

21,739

 

 

18,532

 

 

41,994

 

 

38,359

Bank premises and equipment

 

 

2,513

 

 

2,463

 

 

2,322

 

 

4,976

 

 

4,665

Professional fees

 

 

3,583

 

 

4,986

 

 

6,916

 

 

8,569

 

 

12,888

Technology costs

 

 

3,653

 

 

2,220

 

 

3,043

 

 

5,873

 

 

6,054

Licensing fees

 

 

3,462

 

 

2,474

 

 

3,180

 

 

5,936

 

 

6,456

FDIC assessments

 

 

2,999

 

 

2,967

 

 

2,925

 

 

5,966

 

 

5,850

Other expenses

 

 

6,644

 

 

5,873

 

 

5,339

 

 

12,517

 

 

9,885

Total non-interest expense

 

 

43,109

 

 

42,722

 

 

42,257

 

 

85,831

 

 

84,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income tax expense

 

 

26,783

 

 

23,362

 

 

23,883

 

 

50,145

 

 

48,168

Income tax expense

 

 

8,016

 

 

7,008

 

 

7,084

 

 

15,024

 

 

15,166

Net income (loss)

 

$

18,767

 

$

16,354

 

$

16,799

 

$

35,121

 

$

33,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

10,564,275

 

 

11,215,118

 

 

11,192,936

 

 

10,886,120

 

 

11,163,127

Diluted

 

 

10,676,878

 

 

11,281,375

 

 

11,199,736

 

 

10,975,431

 

 

11,163,127

Basic earnings (loss)

 

$

1.78

 

$

1.46

 

$

1.50

 

$

3.23

 

$

2.96

Diluted earnings (loss)

 

$

1.76

 

$

1.45

 

$

1.50

 

$

3.20

 

$

2.96

Loan Production, Asset Quality & Regulatory Capital

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

 

 

2025

 

2025

 

2024

 

2024

 

2024

 

LOAN PRODUCTION (in millions)

 

$

492.0

 

$

409.8

 

$

309.0

 

$

460.6

 

$

290.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

28,480

 

$

25,087

 

$

25,087

 

$

24,000

 

$

24,000

 

Commercial and industrial

 

 

8,989

 

 

8,989

 

 

6,989

 

 

6,989

 

 

6,989

 

One- to four- family

 

 

2,469

 

 

446

 

 

452

 

 

 

 

 

Consumer

 

 

 

 

22

 

 

72

 

 

 

 

108

 

Total non-performing loans

 

$

39,938

 

$

34,544

 

$

32,600

 

$

30,989

 

$

31,097

 

Non-performing loans to total loans

 

 

0.60

%

 

0.54

%

 

0.54

%

 

0.53

%

 

0.53

%

Allowance for credit losses

 

$

74,071

 

$

67,803

 

$

63,273

 

$

62,493

 

$

60,008

 

Allowance for credit losses to total loans

 

 

1.12

%

 

1.07

%

 

1.05

%

 

1.06

%

 

1.03

%

Charge-offs

 

$

(112)

 

$

(118)

 

$

(106)

 

$

(122)

 

$

(16)

 

Recoveries

 

$

126

 

$

180

 

$

120

 

$

2

 

$

 

Net charge-offs/(recoveries) to average loans (annualized)

 

 

%

 

%

 

%

 

0.01

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

10.0

%

 

10.7

%

 

10.8

%

 

10.6

%

 

10.3

%

Metropolitan Commercial Bank

 

 

9.8

%

 

10.1

%

 

10.6

%

 

10.3

%

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Risk-Based (CET1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

10.8

%

 

11.4

%

 

11.9

%

 

11.9

%

 

11.7

%

Metropolitan Commercial Bank

 

 

10.9

%

 

11.0

%

 

12.0

%

 

11.9

%

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

11.1

%

 

11.7

%

 

12.3

%

 

12.2

%

 

12.1

%

Metropolitan Commercial Bank

 

 

10.9

%

 

11.0

%

 

12.0

%

 

11.9

%

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Risk-Based:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Bank Holding Corp.

 

 

12.2

%

 

12.8

%

 

13.3

%

 

13.2

%

 

13.0

%

Metropolitan Commercial Bank

 

 

12.0

%

 

12.1

%

 

13.0

%

 

12.9

%

 

12.8

%

Performance Measures

 

 

Three months ended

 

Six months ended

 

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

Jun. 30,

 

Jun. 30,

 

(dollars in thousands, except per share data)

 

2025

 

2025

 

2024

 

2025

 

2024

 

Net income per consolidated statements of income

 

$

18,767

 

$

16,354

 

$

16,799

 

$

35,121

 

$

33,002

 

Less: Earnings allocated to participating securities

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$

18,767

 

$

16,354

 

$

16,799

 

$

35,121

 

$

33,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss)

 

$

1.78

 

$

1.46

 

$

1.50

 

$

3.23

 

$

2.96

 

Diluted earnings (loss)

 

$

1.76

 

$

1.45

 

$

1.50

 

$

3.20

 

$

2.96

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end

 

 

10,421,384

 

 

11,066,234

 

 

11,192,936

 

 

10,421,384

 

 

11,192,936

 

Average fully diluted

 

 

10,676,878

 

 

11,281,375

 

 

11,199,736

 

 

10,975,431

 

 

11,163,127

 

Return on:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

0.97

%

 

0.89

%

 

0.92

%

 

0.93

%

 

0.91

%

Average equity

 

 

10.4

%

 

9.0

%

 

9.9

%

 

9.7

%

 

9.9

%

Average tangible common equity(2), (3)

 

 

10.5

%

 

9.1

%

 

10.1

%

 

9.8

%

 

10.0

%

Yield on average earning assets(1)

 

 

6.61

%

 

6.52

%

 

6.47

%

 

6.57

%

 

6.43

%

Total cost of deposits(1)

 

 

3.02

%

 

3.09

%

 

3.26

%

 

3.05

%

 

3.21

%

Net interest spread(1)

 

 

2.76

%

 

2.53

%

 

1.77

%

 

2.65

%

 

1.77

%

Net interest margin(1)

 

 

3.83

%

 

3.68

%

 

3.44

%

 

3.76

%

 

3.42

%

Net charge-offs as % of average loans(1)

 

 

%

 

%

 

%

 

%

 

%

Efficiency ratio(4)

 

 

56.5

%

 

60.5

%

 

62.4

%

 

58.4

%

 

62.6

%

_____________________________

(1)

 

Ratios are annualized.

(2)

 

Net income divided by average tangible common equity.

(3)

 

Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

(4)

 

Total non-interest expense divided by total revenues.

Interest Margin Analysis

 

 

Three months ended

 

 

 

Jun. 30, 2025

 

 

Mar. 31, 2025

 

 

Jun. 30, 2024

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

 

$

6,486,667

 

 

$

118,774

 

7.34

%

 

$

6,202,311

 

 

$

110,865

 

7.25

%

 

$

5,754,283

 

 

$

104,595

 

7.31

%

Available-for-sale securities

 

 

607,363

 

 

 

3,884

 

2.57

 

 

 

577,184

 

 

 

3,415

 

2.40

 

 

 

589,825

 

 

 

3,353

 

2.29

 

Held-to-maturity securities

 

 

394,374

 

 

 

1,849

 

1.88

 

 

 

417,326

 

 

 

1,943

 

1.89

 

 

 

456,078

 

 

 

2,124

 

1.87

 

Equity investments

 

 

5,556

 

 

 

42

 

3.02

 

 

 

5,516

 

 

 

39

 

2.90

 

 

 

2,431

 

 

 

16

 

2.59

 

Overnight deposits

 

 

184,054

 

 

 

2,078

 

4.53

 

 

 

154,357

 

 

 

1,925

 

5.06

 

 

 

369,169

 

 

 

5,167

 

5.63

 

Other interest-earning assets

 

 

27,682

 

 

 

416

 

6.03

 

 

 

30,917

 

 

 

583

 

7.65

 

 

 

27,301

 

 

 

506

 

7.45

 

Total interest-earning assets

 

 

7,705,696

 

 

 

127,043

 

6.61

 

 

 

7,387,611

 

 

 

118,770

 

6.52

 

 

 

7,199,087

 

 

 

115,761

 

6.47

 

Non-interest-earning assets

 

 

138,469

 

 

 

 

 

 

 

 

 

128,676

 

 

 

 

 

 

 

 

 

182,234

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(68,966

)

 

 

 

 

 

 

 

 

(64,584

)

 

 

 

 

 

 

 

 

(58,841

)

 

 

 

 

 

 

Total assets

 

$

7,775,199

 

 

 

 

 

 

 

 

$

7,451,703

 

 

 

 

 

 

 

 

$

7,322,480

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

5,125,850

 

 

 

48,454

 

3.79

 

 

$

4,747,995

 

 

 

45,844

 

3.92

 

 

$

4,319,340

 

 

 

50,237

 

4.68

 

Certificates of deposit

 

 

133,495

 

 

 

1,369

 

4.11

 

 

 

126,471

 

 

 

1,334

 

4.28

 

 

 

37,084

 

 

 

318

 

3.45

 

Total interest-bearing deposits

 

 

5,259,345

 

 

 

49,823

 

3.80

 

 

 

4,874,466

 

 

 

47,178

 

3.93

 

 

 

4,356,424

 

 

 

50,555

 

4.67

 

Borrowed funds

 

 

298,843

 

 

 

3,573

 

4.79

 

 

 

392,453

 

 

 

4,640

 

4.80

 

 

 

287,104

 

 

 

3,667

 

5.14

 

Total interest-bearing liabilities

 

 

5,558,188

 

 

 

53,396

 

3.85

 

 

 

5,266,919

 

 

 

51,818

 

3.99

 

 

 

4,643,528

 

 

 

54,222

 

4.70

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,358,029

 

 

 

 

 

 

 

 

 

1,319,688

 

 

 

 

 

 

 

 

 

1,879,213

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

135,008

 

 

 

 

 

 

 

 

 

126,872

 

 

 

 

 

 

 

 

 

119,675

 

 

 

 

 

 

 

Total liabilities

 

 

7,051,225

 

 

 

 

 

 

 

 

 

6,713,479

 

 

 

 

 

 

 

 

 

6,642,416

 

 

 

 

 

 

 

Stockholders' equity

 

 

723,974

 

 

 

 

 

 

 

 

 

738,224

 

 

 

 

 

 

 

 

 

680,064

 

 

 

 

 

 

 

Total liabilities and equity

 

$

7,775,199

 

 

 

 

 

 

 

 

$

7,451,703

 

 

 

 

 

 

 

 

$

7,322,480

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

73,647

 

 

 

 

 

 

 

$

66,952

 

 

 

 

 

 

 

$

61,539

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

2.76

%

 

 

 

 

 

 

 

2.53

%

 

 

 

 

 

 

 

1.77

%

Net interest margin (4)

 

 

 

 

 

 

 

3.83

%

 

 

 

 

 

 

 

3.68

%

 

 

 

 

 

 

 

3.44

%

Total cost of deposits (5)

 

 

 

 

 

 

 

3.02

%

 

 

 

 

 

 

 

3.09

%

 

 

 

 

 

 

 

3.26

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.10

%

 

 

 

 

 

 

 

3.19

%

 

 

 

 

 

 

 

3.34

%

_____________________________

(1)

 

Ratios are annualized.

(2)

 

Amount includes deferred loan fees and non-performing loans.

(3)

 

Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.

(4)

 

Determined by dividing annualized net interest income by total average interest-earning assets.

(5)

Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest-bearing deposits.

(6)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

Jun. 30, 2025

 

 

Jun. 30, 2024

 

 

 

Average

 

 

 

 

Yield /

 

 

Average

 

 

 

 

Yield /

 

(dollars in thousands)

 

Balance

 

Interest

 

Rate (1)

 

 

Balance

 

Interest

 

Rate (1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

 

$

6,345,274

 

 

$

229,639

 

7.30

%

 

$

5,725,562

 

 

$

206,976

 

7.27

%

Available-for-sale securities

 

 

592,357

 

 

 

7,299

 

2.48

 

 

 

577,558

 

 

 

6,311

 

2.20

 

Held-to-maturity securities

 

 

405,787

 

 

 

3,792

 

1.88

 

 

 

460,674

 

 

 

4,296

 

1.88

 

Equity investments

 

 

5,536

 

 

 

81

 

2.96

 

 

 

2,423

 

 

 

30

 

2.53

 

Overnight deposits

 

 

169,287

 

 

 

4,003

 

4.77

 

 

 

333,580

 

 

 

9,321

 

5.62

 

Other interest-earning assets

 

 

29,291

 

 

 

999

 

6.88

 

 

 

30,365

 

 

 

1,162

 

7.69

 

Total interest-earning assets

 

 

7,547,532

 

 

 

245,813

 

6.57

 

 

 

7,130,162

 

 

 

228,096

 

6.43

 

Non-interest-earning assets

 

 

132,675

 

 

 

 

 

 

 

 

 

182,635

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(66,787

)

 

 

 

 

 

 

 

 

(58,679

)

 

 

 

 

 

 

Total assets

 

$

7,613,420

 

 

 

 

 

 

 

 

$

7,254,118

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market and savings accounts

 

$

4,937,693

 

 

$

94,298

 

3.85

 

 

$

4,209,403

 

 

$

96,848

 

4.63

 

Certificates of deposit

 

 

130,002

 

 

 

2,703

 

4.19

 

 

 

35,674

 

 

 

593

 

3.34

 

Total interest-bearing deposits

 

 

5,067,695

 

 

 

97,001

 

3.86

 

 

 

4,245,076

 

 

 

97,441

 

4.62

 

Borrowed funds

 

 

345,982

 

 

 

8,213

 

4.79

 

 

 

362,246

 

 

 

9,407

 

5.22

 

Total interest-bearing liabilities

 

 

5,413,677

 

 

 

105,214

 

3.92

 

 

 

4,607,323

 

 

 

106,848

 

4.66

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

1,338,964

 

 

 

 

 

 

 

 

 

1,857,290

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

130,644

 

 

 

 

 

 

 

 

 

115,974

 

 

 

 

 

 

 

Total liabilities

 

 

6,883,285

 

 

 

 

 

 

 

 

 

6,580,587

 

 

 

 

 

 

 

Stockholders' equity

 

 

730,135

 

 

 

 

 

 

 

 

 

673,531

 

 

 

 

 

 

 

Total liabilities and equity

 

$

7,613,420

 

 

 

 

 

 

 

 

$

7,254,118

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

140,599

 

 

 

 

 

 

 

$

121,248

 

 

 

Net interest rate spread (3)

 

 

 

 

 

 

 

2.65

%

 

 

 

 

 

 

 

1.77

%

Net interest margin (4)

 

 

 

 

 

 

 

3.76

%

 

 

 

 

 

 

 

3.42

%

Total cost of deposits (5)

 

 

 

 

 

 

 

3.05

%

 

 

 

 

 

 

 

3.21

%

Total cost of funds (6)

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

3.32

%

_____________________________

(1)

 

Ratios are annualized.

(2)

 

Amount includes deferred loan fees and non-performing loans.

(3)

 

Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.

(4)

 

Determined by dividing annualized net interest income by total average interest-earning assets.

(5)

Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest-bearing deposits.

(6)

Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables:

 

 

Quarterly Data

 

 

Six months ended

 

(dollars in thousands,

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

except per share data)

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2025

 

 

2024

 

Average assets

 

$

7,775,199

 

 

$

7,451,703

 

 

$

7,363,252

 

 

$

7,297,503

 

 

$

7,322,480

 

 

$

7,613,420

 

 

$

7,254,118

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible assets (non-GAAP)

 

$

7,765,466

 

 

$

7,441,970

 

 

$

7,353,519

 

 

$

7,287,770

 

 

$

7,312,747

 

 

$

7,603,687

 

 

$

7,244,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity

 

$

723,974

 

 

$

738,224

 

 

$

721,506

 

 

$

706,442

 

 

$

680,064

 

 

$

730,135

 

 

$

673,531

 

Less: average preferred equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

723,974

 

 

$

738,224

 

 

$

721,506

 

 

$

706,442

 

 

$

680,064

 

 

$

730,135

 

 

$

673,531

 

Less: average intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Average tangible common equity (non-GAAP)

 

$

714,241

 

 

$

728,491

 

 

$

711,773

 

 

$

696,709

 

 

$

670,331

 

 

$

720,402

 

 

$

663,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,853,849

 

 

$

7,616,298

 

 

$

7,300,749

 

 

$

7,403,358

 

 

$

7,265,591

 

 

$

7,853,849

 

 

$

7,265,591

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible assets (non-GAAP)

 

$

7,844,116

 

 

$

7,606,565

 

 

$

7,291,016

 

 

$

7,393,625

 

 

$

7,255,858

 

 

$

7,844,116

 

 

$

7,255,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity

 

$

722,968

 

 

$

737,846

 

 

$

729,827

 

 

$

715,191

 

 

$

692,404

 

 

$

722,968

 

 

$

692,404

 

Less: intangible assets

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

 

 

9,733

 

Tangible common equity (book value) (non-GAAP)

 

$

713,235

 

 

$

728,113

 

 

$

720,094

 

 

$

705,458

 

 

$

682,671

 

 

$

713,235

 

 

$

682,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

10,421,384

 

 

 

11,066,234

 

 

 

11,197,625

 

 

 

11,194,411

 

 

 

11,192,936

 

 

 

10,421,384

 

 

 

11,192,936

 

Book value per share (GAAP)

 

$

69.37

 

 

$

66.68

 

 

$

65.18

 

 

$

63.89

 

 

$

61.86

 

 

$

69.37

 

 

$

61.86

 

Tangible book value per share (non-GAAP) (1)

 

$

68.44

 

 

$

65.80

 

 

$

64.31

 

 

$

63.02

 

 

$

60.99

 

 

$

68.44

 

 

$

60.99

 

_____________________________

(1)

 

Tangible book value divided by common shares outstanding at period-end.

Explanatory Note

Some amounts presented within this document may not recalculate due to rounding.

Contacts

Daniel F. Dougherty

EVP & Chief Financial Officer

Metropolitan Commercial Bank

(212) 365-6721

IR@MCBankNY.com

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