Metropolitan Bank (MCB) investor relations material

Executive summary

• Net income for Q2 2025 was $18.8 million, or $1.76 per share, up 21% sequentially and 17% year-over-year, with total assets reaching $7.9 billion and strong loan and deposit growth.

• Loans reached $6.6 billion and deposits $6.8 billion, reflecting 13–15% and 10–11% annual growth, respectively, since 2020.

• The company declared its first-ever quarterly cash dividend of $0.15 per share and expanded its share repurchase program to $100 million.

• Asset quality remains strong, with non-performing loans at 0.60% of total loans and allowance for credit losses at 1.12%.

• Digital transformation project underway, with $8.4 million expensed to date and full integration expected by Q1 2026.

Financial highlights

• Net interest margin improved to 3.83% in Q2 2025, up 15 bps sequentially and 39 bps year-over-year.

• Net interest income for Q2 2025 was $73.6 million, up from $61.5 million in Q2 2024; total revenue rose to $76.3 million.

• Efficiency ratio improved to 56.5% in Q2 2025 from 60.5% in Q1 2025.

• Provision for credit losses increased to $6.4 million, including a $2.4 million reserve for a single nonaccrual loan.

• Return on average assets was 0.97% and return on average equity was 10.4–10.5% for Q2 2025.

Outlook and guidance

• Projected loan growth may exceed 12% for the year, supported by strong pipelines and disciplined pricing.

• Digital transformation (Project Phoenix) to be completed in Q4 2025, with full integration by Q1 2026 and total estimated costs of $18 million.

• Annual NIM expected to be about 3.8%, assuming one 25 bps Fed rate cut in October.

• Operating expenses forecasted at $45–46 million per quarter for the remainder of 2025, including one-time IT project costs.

• Board intends to continue regular cash dividends, subject to ongoing review and regulatory requirements.