Metropolitan Bank (MCB) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in loans, deposits, and revenue, with double-digit CAGRs since 2020 and outperformance versus peers in total return and key financial metrics.

• Q4 and full year 2025 performance marked by sustained growth in net interest margin, net interest income, deposits, and loans, with improved efficiency ratio and strong asset quality.

• Maintained a highly diversified loan and deposit portfolio, with a focus on healthcare, skilled nursing, and commercial real estate.

• Completed a major digital transformation project to modernize core banking systems, with full integration expected in Q1 2026.

• Loan growth for 2025 was $776 million (13%), fully funded by deposit growth, with deposits exceeding loan growth by over $600 million.

Financial highlights

• Loans reached $6.8B and deposits $7.4B as of Q4 2025, with 17% and 14% CAGRs since 2020, respectively.

• Q4 net interest income was $85.3 million, up 10.4% sequentially and 28.1% year-over-year.

• Net interest margin for Q4 2025 was 4.10%, up from 3.88% in Q3 and 3.66% in Q4 2024.

• Net income for 2025 was $71 million, up from $59 million in 2024, with quarterly net income of $28.9 million in Q4 2025.

• Efficiency ratio improved to 50.2% in Q4 2025 and 52.5% for the year, down from 62.7% in 2024.

Outlook and guidance

• 2026 guidance assumes two 25 basis point rate cuts, with loan growth targeted at $800 million (12%) and modest NIM expansion to about 4.10%.

• Non-interest income projected to grow 5%-10%; operating expenses forecasted at $189-$191 million, including digital transformation and real estate expansion.

• ROTCE expected to approach 16% by Q4 2026, with management confident in sustaining above-market growth.

• Continued focus on relationship-driven commercial banking and expansion in targeted verticals.