Metropolitan Bank (MCB) Q3 2025 earnings summary

Executive summary

• Total assets reached $8.2 billion at September 30, 2025, up 12.8% from December 31, 2024, driven by strong loan and deposit growth.

• Net income for Q3 2025 was $7.1 million, down from $12.3 million in Q3 2024, mainly due to a $23.9 million provision for credit losses tied to a single out-of-market CRE multi-family loan and macroeconomic factors.

• Achieved strong balance sheet growth, with Q3 loan growth of $170 million (2.6%) and year-to-date loan growth of $750 million (12%).

• Core deposits increased by $280 million (4.1%) in the quarter and over $1 billion (18%) year-to-date, all organic.

• Announced $50 million share repurchase program and paid first common stock dividend.

Financial highlights

• Net interest income rose to $77.3 million in Q3 2025, up 5% sequentially and 18% year-over-year.

• Net interest margin expanded for the eighth consecutive quarter, reaching 3.88% in Q3 2025.

• Non-interest income was $2.5 million, down from $6.3 million in Q3 2024 due to the exit from the GPG business.

• Non-interest expense was $45.8 million, up $2.7 million from Q2, mainly due to higher compensation, technology, and licensing costs, but down $5.5 million year-over-year due to lower regulatory fees.

• Diluted EPS was $0.67; adjusted for specific provisioning, normalized EPS would have been ~$1.95.

Outlook and guidance

• Projected $100–$200 million additional loan growth for the remainder of 2025; strong pipeline for Q1 2026.

• Management expects strong EPS growth in 2026, driven by technology investments and continued margin expansion.

• Digital transformation project Phoenix underway, with completion expected in Q4 2025 and full integration by Q1 2026; total estimated cost $18 million, $10.8 million expensed to date.

• Q4 operating expenses expected at ~$46 million, including $3 million in one-time digital project costs.

• Margin could approach or exceed 4% in 2026 if multiple rate cuts occur and deposit initiatives succeed.