Metropolitan Bank (US:MCB)2025-10-23 20:20Financial 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]