Metropolitan Bank Holding Corp. reported a net income of $66.7 million for the fiscal year ending December 31, 2024, a decrease of 13.7% from the previous year's net income of $77.3 million. The decline in profitability was attributed to a pre-tax regulatory reserve of $10 million recorded in the third quarter, increased compensation and benefits expenses, and higher technology costs related to ongoing digital transformation initiatives. Despite these challenges, the bank's net interest income rose by $30.2 million to $253.1 million, driven by a significant increase in the average balance and yield of loans.
Total assets for the company reached $7.3 billion, reflecting a 3.3% increase from $7.1 billion in 2023. The growth in assets was primarily fueled by a $409.3 million increase in the loan portfolio, which totaled $6.0 billion at year-end. The bank's loan production for 2024 was $1.3 billion, slightly down from $1.4 billion in 2023. The composition of the loan portfolio remained heavily weighted towards commercial real estate (CRE) and commercial and industrial (C&I) loans, with 80.5% of these loans concentrated in the New York metropolitan area and Florida.
In terms of operational developments, the bank exited its Global Payments Group (GPG) Banking-as-a-Service (BaaS) business in 2024, a strategic decision aimed at reducing regulatory exposure. This exit was part of a broader digital transformation initiative to modernize the bank's core payment and online banking systems, expected to be completed by the end of 2025. The bank's employee headcount increased to 291 full-time employees, reflecting a 5.8% growth from the previous year, as the company expanded its risk management programs.
The bank's total deposits increased by 4.3% to $6.0 billion, with a notable shift from non-interest-bearing demand deposits to interest-bearing accounts, particularly in the context of the GPG exit. The bank's efficiency ratio deteriorated to 62.68% from 52.46% in the previous year, indicating increased operational costs relative to income. The allowance for credit losses (ACL) for loans rose to $63.3 million, representing 1.05% of total loans, up from 1.03% in 2023, reflecting the bank's proactive approach to managing credit risk amid economic uncertainties.
Looking ahead, Metropolitan Bank Holding Corp. remains focused on leveraging its position in the New York metropolitan area while exploring growth opportunities in other markets. The bank's management expressed confidence in its ability to navigate regulatory challenges and enhance its service offerings, aiming to improve profitability and operational efficiency in the coming years.
About Metropolitan Bank Holding Corp.
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