Metropolitan Bank Reports 12% Net Income Growth to $18.8 Million in Q2 2025

Metropolitan Bank Holding Corp. reported a net income of $18.8 million for the second quarter of 2025, reflecting a 12% increase from $16.8 million in the same period last year. For the first half of 2025, net income reached $35.1 million, up from $33.0 million in the prior year. The growth in profitability was primarily driven by a $12.1 million increase in net interest income, which rose to $73.6 million in the second quarter, compared to $61.5 million a year earlier. The bank's net interest margin improved to 3.83% from 3.44%, attributed to effective loan and deposit pricing strategies.

Total assets for the bank increased to $7.9 billion as of June 30, 2025, marking a 7.6% rise from $7.3 billion at the end of 2024. This growth was supported by a significant increase in total loans, which rose by $578.7 million, or 9.6%, to $6.6 billion. The bank's loan portfolio remains heavily concentrated in commercial real estate (CRE) and commercial and industrial (C&I) loans, with 77.1% of these loans located in the New York metropolitan area and Florida. The allowance for credit losses also increased to $74.1 million, reflecting the bank's proactive approach to managing credit risk amid loan growth.

In terms of strategic developments, Metropolitan Bank executed a $50 million share repurchase program in May 2025, purchasing 878,807 shares at an average price of $56.90. Following this, the board approved an additional $50 million repurchase plan in July 2025, bringing the total authorized repurchases to $100 million since March 2025. The bank also declared its first cash dividend of $0.15 per share, payable on August 11, 2025, signaling a commitment to returning value to shareholders.

Operationally, total deposits increased by $808.3 million, or 13.5%, to $6.8 billion, with non-interest-bearing demand deposits accounting for 21.0% of total deposits. The bank's focus on deposit gathering strategies has proven effective, as evidenced by the growth across various deposit verticals. However, the bank's non-performing loans rose to $39.9 million, up from $32.6 million at the end of 2024, primarily due to two secured CRE loans and one unsecured C&I loan.

Looking ahead, Metropolitan Bank remains optimistic about its growth trajectory, supported by a strong capital position and a diversified loan portfolio. The bank's management continues to monitor economic conditions and credit quality closely, with a focus on maintaining robust asset quality and managing interest rate risk effectively. The bank's proactive measures in credit loss provisioning and strategic capital management are expected to position it well for future challenges and opportunities in the banking sector.