Metropolitan Bank (MCB) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $18.8 million, or $1.76 per diluted share, up 21.4% from Q1 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 13.3% and 10.1% year-over-year growth, and 15% and 11% CAGRs 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 is 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 from 3.68% in Q1 and 3.44% year-over-year.

• Net interest income for Q2 2025 was $73.6 million, up from $67.0 million in Q1 and $61.5 million year-over-year.

• Total revenue for Q2 2025 was $76.3 million, with net income of $18.8 million, and tangible book value per share rose to $68.44.

• Efficiency ratio improved to 56.5% in Q2 2025 from 60.5% in Q1 and 62.4% year-over-year.

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

Outlook and guidance

• Management expects continued strong performance, with regular cash dividends subject to board discretion and regulatory requirements.

• Digital transformation project (Project Phoenix) is on track for completion in Q4 2025, with full integration by Q1 2026 and total estimated cost of $18 million.

• Projected loan growth may exceed 12% for the year, with core deposit growth expected to fund most new loans.

• Annual NIM forecast raised to approximately 3.80%, assuming one 25 basis point Fed rate cut in October.

• Operating expenses expected to average $45–$46 million per quarter for the remainder of 2025, including one-time IT costs.