Financial Performance - Net income for Q3 2025 was $7.1 million, a decrease of $5.1 million from $12.3 million in Q3 2024, primarily due to a $21.2 million increase in the provision for credit losses[117]. - For the nine months ended September 30, 2025, net income was $42.2 million, down $3.1 million from $45.3 million in the same period of 2024, mainly due to a $30.0 million increase in the provision for credit losses[118]. - Non-interest income decreased to $2.5 million in Q3 2025, down $3.8 million from $6.3 million in Q3 2024, primarily due to the absence of GPG revenue[134]. - Non-interest expense for Q3 2025 decreased to $45.8 million, down $5.5 million from the previous year, mainly due to a $10.0 million decrease in regulatory reserves[135]. - Non-interest expense decreased by $3.8 million to $131.6 million for the nine months ended September 30, 2025, compared to $135.4 million for the same period in 2024[136]. Asset and Loan Growth - Total assets increased to $8.2 billion as of September 30, 2025, reflecting a growth of $933.7 million, or 12.8%, from December 31, 2024[107]. - Total loans reached $6.8 billion, an increase of $747.6 million, or 12.4%, primarily driven by a $752.7 million rise in CRE loans[110]. - The average balance of loans for the nine months ended September 30, 2025, increased by $681.1 million compared to the same period in 2024[130]. - Loan production for the nine months ended September 30, 2025, was $1.4 billion, compared to $1.0 billion for the same period in 2024[144]. Deposits and Cash Position - Total deposits rose to $7.1 billion, up $1.1 billion, or 18.2%, from December 31, 2024, with non-interest-bearing demand deposits comprising 19.5% of total deposits[114]. - Cash and cash equivalents rose to $385.9 million at September 30, 2025, up from $200.3 million at December 31, 2024[143]. - Total deposits increased by $1.1 billion, or 18.2%, to $7.1 billion at September 30, 2025, compared to December 31, 2024[145]. Credit Quality and Loss Provisions - The allowance for credit losses (ACL) was $94.2 million as of September 30, 2025, compared to $63.3 million at December 31, 2024, with a provision of $34.7 million recorded for the nine months ended September 30, 2025[113]. - Non-performing loans increased to $81.6 million, representing 1.20% of total loans, up from 0.54% at December 31, 2024[112]. - The provision for credit losses for Q3 2025 was $23.9 million, reflecting changes in macroeconomic outlook and loan growth[133]. Shareholder Returns - The company repurchased 39,166 shares at an average cost of $69.27 per share during the three months ended September 30, 2025, with $47.3 million remaining under the share repurchase plan[100]. - The company declared a quarterly dividend of $0.15 per share, payable on November 14, 2025[98]. Interest Income and Expense - Net interest income for Q3 2025 increased to $132.0 million, up $11.5 million from $120.5 million in Q3 2024, driven by an $801.4 million increase in the average balance of loans[128]. - The net interest margin for Q3 2025 was 3.88%, an increase of 26 basis points from 3.62% in Q3 2024, attributed to loan and deposit pricing initiatives[127]. - Interest expense for Q3 2025 decreased to $54.7 million, down $532,000 from $55.2 million in Q3 2024, due to a 34 basis point decrease in the total cost of funds[131]. Securities and Other Comprehensive Loss - Total securities amounted to $934.4 million, reflecting a $18.7 million increase, or 2.0%, from December 31, 2024[109]. - Accumulated other comprehensive loss decreased by $11.3 million to $41.9 million, primarily due to unrealized gains on AFS securities[116]. Regulatory and Economic Factors - The Tier 1 leverage ratio for the Company was 9.8% at September 30, 2025, down from 10.8% at December 31, 2024[150]. - The estimated effective tax rate for the nine months ended September 30, 2025, was 30.0%, down from 31.1% for the same period in 2024[137]. - The estimated economic value of equity (EVE) would decrease by 5.21% with a 200 basis points increase in interest rates at September 30, 2025[160]. - In the event of a 200 basis points increase in interest rates, the Company would experience a 0.13% decrease in net interest income[157]. - The aggregate estimated amount of FDIC uninsured deposits was $1.8 billion at September 30, 2025, compared to $1.6 billion at December 31, 2024[146].

Core Insights - Metropolitan Commercial Bank has appointed Emma Krentz as AI Scientist in its newly established Office of Artificial Intelligence [1] - Emma Krentz brings a proven track record in designing and deploying AI and machine learning solutions specifically for the financial services industry [1] - The appointment reflects the bank's commitment to technological innovation and enhancing its service offerings through advanced AI capabilities [1] Company Developments - The establishment of the Office of Artificial Intelligence indicates a strategic move by Metropolitan Commercial Bank to integrate AI into its operations [1] - Emma Krentz's extensive experience in the banking industry positions her as a key asset in driving the bank's AI initiatives [1] - The focus on AI and machine learning solutions aligns with industry trends towards digital transformation in financial services [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Metropolitan Bank Holding Corp. is focusing on AI integration and aligning with regulatory expectations while maintaining strong asset quality and customer engagement [1][4] - The bank has initiated a $50 million share repurchase program and declared its first common stock dividend, demonstrating commitment to shareholder returns [2] - Year-to-date, deposits have increased by over $1 billion, reflecting an 18% growth without acquisitions, and the bank is expanding its branch network in strategic locations [3][4] Financial Performance - In the third quarter, loan growth was approximately $170 million or 2.6%, with a year-to-date increase of over 12% [4][8] - Net interest margin (NIM) rose to 3.88%, up five basis points from the previous quarter, with expectations for further expansion in the fourth quarter [12][13] - Net interest income for the third quarter was $77.3 million, marking a 5% increase from the prior quarter and over 18% year-over-year [13] Risk Management and Provisions - The bank's third-quarter provision expense was $23.9 million, primarily related to specific multifamily loans, with minimal actual credit losses historically [5][10] - The bank's analysis indicates that recent Medicaid and Medicare cutbacks will not materially affect borrowers [5] - The overall asset quality remains strong, with no significant credit issues identified in the loan portfolio [10][34] Future Outlook - The bank is well-positioned to benefit from favorable industry trends despite market volatility, with a focus on capturing additional market share and optimizing profitability [6][37] - The loan pipeline remains robust, with projections of $100 million to $200 million in additional loan growth for the remainder of the year [9][34] - The bank anticipates continued growth in deposits and a modest decline in the cost of interest-bearing deposits, enhancing NIM further [10][12]

Financial Data and Key Metrics Changes - In Q3 2025, loan growth was approximately $170 million, or 2.6%, with year-to-date growth exceeding $750 million, or more than 12% [3][9] - Core deposits increased by approximately $280 million, or 4.1% in the quarter, and year-to-date deposits grew by over $1 billion, or 18% [3][9] - Net interest margin (NIM) rose five basis points to 3.88% from 3.83% in the prior quarter, marking the eighth consecutive quarter of margin expansion [4][12] - Net interest income for Q3 was $77.3 million, up 5% quarter-over-quarter and over 18% year-over-year [13] Business Line Data and Key Metrics Changes - Total loan originations year-to-date reached $1.4 billion, with a mix of approximately 70% fixed and 30% floating rate loans [3][9] - The provision expense for Q3 was $23.9 million, with $18.7 million related to three loans extended to a single borrower group [7][13] Market Data and Key Metrics Changes - The bank's non-depository financial institution (NDFI) book totals about $350 million, or approximately 5% of the loan portfolio, with no identified credit issues [10] - The cost of interest-bearing deposits declined by 9 basis points quarter-over-quarter [11] Company Strategy and Development Direction - The company is expanding its branch network in strategic markets, including Lakewood, New Jersey, and Miami, Florida [4] - The bank is focused on capturing additional market share through traditional channels and enhancing shareholder value [8] - The launch of an AI strategy is underway, with the hiring of an AI director to align with regulatory expectations [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's position to benefit from favorable tailwinds in the banking industry despite recent market volatility [7][8] - The bank's asset quality remains strong, with no broad-based negative trends identified [5][6] Other Important Information - A $50 million share repurchase program was approved, along with the payment of the first common stock dividend [4] - The effective tax rate for the quarter was approximately 30% [15] Q&A Session Summary Question: Details on the CRE multifamily relationship - Management provided insights on a multifamily relationship in Champaign, Illinois, and Ohio, indicating ongoing restructuring efforts [20] Question: Additional details on the $5.2 million provision - The provision was primarily driven by macroeconomic forecast deterioration and loan growth, with $3.5 million related to macroeconomic variables [22] Question: Bank's policy on insider selling prior to earnings releases - Management confirmed that insider trading is governed by 10b5-1 agreements and blackout periods [24][25] Question: Percentage of CRE loans out of market - Management indicated no immediate concerns beyond what was reported in Q3, with 19% of the portfolio in Manhattan [31] Question: Opportunities for deposit growth - Management noted a diversified deposit model, with no reliance on any single vertical for significant growth [34] Question: Digital transformation expenses - Management confirmed a slight tail in expenses for the first quarter of 2026, estimating it to be well less than $2 million [36] Question: Credit trends and asset quality - Management stated that aside from the specific credit issue, there were no noticeable movements in asset quality [47] Question: Future margin expectations - Management expressed optimism about approaching a 4% margin in 2026 with multiple rate cuts [54][55]

Financial Data and Key Metrics Changes - In Q3 2025, Metropolitan Commercial Bank (MCB) reported loan growth of approximately $170 million, or 2.6% [3] - Year-to-date loan growth reached approximately $750 million, exceeding 12% [4] - Core deposits increased by approximately $280 million, or 4.1% in the quarter, with year-to-date growth over $1 billion, or 18% [4] - The net interest margin (NIM) increased by five basis points to 3.88% from 3.83% in the prior quarter [5][15] - Net interest income for Q3 was $77.3 million, up 5% from the previous quarter and over 18% year-over-year [17] - Diluted EPS for Q3 was reported at $0.67, with a normalized estimate closer to $1.95 after adjustments [17] Business Line Data and Key Metrics Changes - Total loan originations year-to-date were $1.4 billion, with a mix of approximately 70% fixed and 30% floating rate loans [4][12] - The bank's non-deposit funding initiative (NDFI) totals approximately $350 million, representing about 5% of the loan portfolio, with no identified credit issues [13] - Noninterest expense for the quarter was approximately $45.8 million, an increase of $2.7 million from the prior quarter, driven by compensation, technology costs, and licensing [19][20] Market Data and Key Metrics Changes - The bank's asset quality remains strong, with no broad-based negative trends identified across loan segments or geographies [7] - The provision expense for Q3 was $23.9 million, with $18.7 million related to a specific borrower group [8] Company Strategy and Development Direction - MCB's growth strategy focuses on maintaining and developing existing deposit verticals while exploring new branch openings in strategic markets [4] - The company is advancing its technology stack and has initiated an AI strategy, hiring its first AI director [6] - The bank aims to capture additional market share through traditional channels and strategically position itself for future opportunities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's position to benefit from favorable tailwinds in the banking industry despite recent market volatility [8] - The bank anticipates modest further expansion of NIM in Q4 due to a decline in the cost of funds and continued deposit growth [16] - Management noted that the recent provision expense is a prudent measure and does not reflect broader credit issues within the portfolio [47] Other Important Information - The board approved a $50 million share repurchase program and the payment of the first common stock dividend, reflecting a commitment to shareholder returns [5] - The effective tax rate for the quarter was approximately 30% [20] Q&A Session Summary Question: Details on the multifamily relationship metrics - Management provided insights on a multifamily relationship involving vacant buildings in Champaign, Illinois, and Ohio, indicating ongoing restructuring efforts [26] Question: Additional details on the $5.2 million provision - The provision was primarily driven by macroeconomic forecasts from Moody's, with a significant portion related to variable forecast deterioration [28] Question: Bank's policy on insider selling prior to earnings releases - Management confirmed that insider trading is governed by 10b5-1 plans, ensuring compliance with blackout periods [30][32] Question: Percentage of CRE loans out of market - Management stated that there are no immediate concerns about other CRE loans beyond those reported in Q3 [34] Question: Future opportunities in deposits - Management indicated that growth is spread evenly across various deposit verticals, with no reliance on a single category for significant growth [39] Question: Digital transformation expenses in Q1 - Management confirmed that there will be a slight tail in digital transformation expenses into Q1, but it will be managed effectively [41] Question: Trends on criticized and classified loans - Management reported no noticeable credit migration movements within the portfolio, indicating stability [45] Question: Near-term growth strategies - Management reassured that the specific reserve taken is an outlier and will not deter near-term growth strategies [47]

Financial Data and Key Metrics Changes - In Q3 2025, loan growth was approximately $170 million, or 2.6%, with year-to-date growth exceeding $750 million, or more than 12% [3][9] - Core deposits increased by approximately $280 million, or 4.1% in the quarter, with year-to-date growth over $1 billion, or 18% [3][10] - Net interest margin (NIM) rose five basis points to 3.88%, up from 3.83% in the prior quarter [4][12] - Net interest income for Q3 was $77.3 million, up 5% quarter-over-quarter and more than 18% year-over-year [13] - Diluted EPS for Q3 reported at $0.67, with a normalized estimate of approximately $1.95 after adjustments [13][15] Business Line Data and Key Metrics Changes - Total loan originations year-to-date were $1.4 billion, with a mix of approximately 70% fixed and 30% floating rate loans [3][9] - The bank's non-depository financial institution (NDFI) book totals about $350 million, representing around 5% of the loan portfolio, with no identified credit issues [10][12] Market Data and Key Metrics Changes - The bank's asset quality remains strong, with no broad-based negative trends identified across loan segments or geographies [5][6] - The provision expense for Q3 was $23.9 million, with $18.7 million related to three loans extended to a single borrower group [6][10] Company Strategy and Development Direction - The company is focused on expanding its presence in strategic markets, including new branch openings in Lakewood, New Jersey, Miami, and West Palm Beach, Florida [4][8] - The bank is advancing its AI strategy and digital transformation, with full integration expected by the end of Q1 2026 [5][8] - The focus for 2025 and beyond is to capture additional market share and enhance shareholder value through traditional channels [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable tailwinds for the banking industry despite recent market volatility [7][8] - The bank anticipates modest further expansion of NIM due to declining costs of funds and continued deposit growth [12][41] - Management indicated that the recent provision expense is an outlier and does not reflect broader credit quality concerns [39][40] Other Important Information - The company approved a $50 million share repurchase program and paid its first common stock dividend, reflecting a commitment to shareholder returns [4][8] - The effective tax rate for the quarter was approximately 30% [15] Q&A Session Summary Question: Details on the CRE multifamily relationship - Management provided insights on a multifamily relationship in Champaign, Illinois, and Ohio, indicating ongoing restructuring efforts [18][19] Question: More detail on the $5.2 million provision - The provision was primarily driven by macroeconomic forecast deterioration and loan growth, with reliance on third-party forecasts [20][22] Question: Bank's policy on insider selling prior to earnings releases - Management confirmed adherence to blackout periods and 10b5-1 agreements for insider trading [21][24] Question: Percentage of CRE loans out of market - Management stated that there are no immediate concerns beyond what was reported, with 19% of the portfolio in Manhattan [26][28] Question: Opportunities for deposit growth - Management indicated a balanced approach across various deposit verticals, with no reliance on a single category for growth [29] Question: Digital transformation expenses in Q1 2026 - Management confirmed a slight tail in expenses for Q1 2026, estimating it to be well under $2 million [31][32] Question: Size of credit and asset quality trends - Management detailed specific loans contributing to credit increases, emphasizing overall static asset quality [34][38] Question: Potential for margin to approach 4% in 2026 - Management expressed optimism about achieving a margin above 4% with continued efforts to control funding costs [41][42]

Financial Performance - The company's closing price increased from $70.00 in 2Q 2025 to $74.82 in 3Q 2025[8] - Market capitalization grew from $729.50 million in 2Q 2025 to $776.80 million in 3Q 2025[8] - Assets increased from $7.9 billion in 2Q 2025 to $8.2 billion in 3Q 2025[8] - Loans increased from $6.6 billion in 2Q 2025 to $6.8 billion in 3Q 2025[8] - Deposits increased from $6.8 billion in 2Q 2025 to $7.1 billion in 3Q 2025[8] - Net Interest Margin increased from 3.83% in 2Q 2025 to 3.88% in 3Q 2025[8] - The company's loans to deposits ratio was 95.9% in 3Q 2025, compared to 97.4% in 2Q 2025[8] Loan Portfolio - Total loans reached $6.8 billion as of September 30, 2025[30] - Commercial Real Estate (CRE) loans constitute 36% of the total loan portfolio[55] - Commercial & Industrial (C&I) loans represent 14% of the total loan portfolio[55] - The average yield on loans for 3Q 2025 was 7.32%[56]

Core Insights - Metropolitan Bank Holding Corp. reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $1.95 per share, and down from $1.86 per share a year ago, representing an earnings surprise of -65.64% [1] - The company posted revenues of $79.84 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.49%, and up from $71.52 million year-over-year [2] - The stock has increased approximately 28.9% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.07 on revenues of $80.1 million, and for the current fiscal year, it is $7.19 on revenues of $304.2 million [7] - The estimate revisions trend for Metropolitan Bank Holding was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which Metropolitan Bank Holding belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q3 2025 was $7.1 million, or $0.67 per diluted share, down from $18.8 million, or $1.76 per diluted share in Q2 2025[2] - Total revenues for Q3 2025 were $79.8 million, compared to $71.5 million in Q3 2024[10] - Net income for the nine months ended September 30, 2025, was $42,240 thousand, a decrease of 6.7% from $45,268 thousand in the same period last year[29] - Basic earnings per share for the three months ended September 30, 2025, was $0.68, down from $1.10 in the same period last year[29] - Net income for Q3 2025 was $7.1 million, resulting in basic earnings per share of $0.68, down from $1.78 in Q2 2025[31] Loan and Deposit Growth - Total loans reached $6.8 billion, reflecting a 15.0% increase from $5.9 billion in Q3 2024[6] - Total deposits were $7.1 billion, an increase of 12.8% from $6.3 billion in Q3 2024[7] - Loan production for Q3 2025 was $514.2 million, compared to $460.6 million in Q3 2024[6] - Total deposits reached $7,072,759 thousand, reflecting an increase of 4.1% from $6,791,306 thousand in the previous quarter[28] Asset Management - Total assets increased to $8,234,430 thousand as of September 30, 2025, up from $7,853,849 thousand in June 30, 2025, representing a growth of 4.8%[28] - Average total assets increased to $7.96 billion in Q3 2025, compared to $7.78 billion in Q2 2025[34] - Total assets grew to $7,733,520 thousand, up from $7,269,422 thousand in the previous year, indicating strong asset growth[40] Interest Income and Margin - Net interest income increased by 18.5% year-over-year to $77.3 million, up from $65.2 million in Q3 2024[3] - Total interest income for the three months ended September 30, 2025, was $132,000 thousand, up 9.5% from $120,454 thousand in the same period last year[29] - The net interest margin improved to 3.88%, up 26 basis points from 3.62% in the prior year[13] - The net interest margin for Q3 2025 was 3.88%, slightly up from 3.83% in Q2 2025, reflecting improved interest income[34] - Total interest-earning assets increased to $7,669,917 thousand with a net interest income of $217,910 thousand, reflecting a net interest margin of 3.80% compared to 3.49% in the previous year[40] Credit Quality - The ratio of non-performing loans to total loans rose to 1.20% from 0.53% a year ago, primarily due to a single out of market CRE multi-family loan[19] - The allowance for credit losses increased to $94.2 million, up $31.7 million from $62.5 million in Q3 2024[20] - Provision for credit losses significantly increased to $23,862 thousand for the three months ended September 30, 2025, compared to $6,378 thousand in the previous quarter[29] - Total non-performing loans rose to $81.6 million, with a non-performing loans to total loans ratio of 1.20% as of September 30, 2025, compared to 0.60% in June 2025[30] - The allowance for credit losses reached $94.2 million, with an allowance for credit losses to total loans ratio of 1.39% as of September 30, 2025[30] Cost Management - Non-interest expense totaled $45,794 thousand for the three months ended September 30, 2025, compared to $51,257 thousand in the same period last year, indicating a decrease of 10.6%[29] - The efficiency ratio improved to 57.4% in Q3 2025, compared to 56.5% in Q2 2025, indicating better cost management[31] - The total cost of deposits decreased to 2.98% in Q3 2025, down from 3.02% in Q2 2025, suggesting improved deposit cost management[34] - The total cost of deposits decreased to 3.03% from 3.25% year-over-year, indicating improved cost management[40] - The company reported a total cost of funds of 3.11%, down from 3.35% in the previous year, reflecting improved funding efficiency[40] Capital Position - Stockholders' equity increased to $732,237 thousand from $685,317 thousand, reflecting a solid capital position[40] - Average tangible common equity (non-GAAP) for the nine months ended September 30, 2025, was $722,504 thousand, up from $675,584 thousand in the previous year[41] - Book value per share (GAAP) rose to $70.51 from $63.89 year-over-year, indicating increased shareholder value[41] - The Tier 1 leverage ratio for Metropolitan Bank Holding Corp. was 9.8% as of September 30, 2025, down from 10.0% in June 2025[30] Yield and Spread - Average yield on loans was 7.31% for the nine months ended September 30, 2025, slightly down from 7.35% in the same period last year[40] - Net interest rate spread improved to 2.72% from 1.82% year-over-year, showcasing enhanced profitability on interest-earning assets[40]