Metropolitan Bank (US:MCB)2026-01-20 21:20Financial Performance - Quarterly net income for Q4 2025 was $28.9 million, or $2.77 per diluted share, compared to $7.1 million, or $0.67 per diluted share in Q3 2025, and $21.4 million, or $1.88 per diluted share in Q4 2024[3] - Net income for the year ended December 31, 2025, was $71,098 thousand, compared to $66,686 thousand in 2024, reflecting a 6.3% increase[36] - Net income available to common shareholders for Q4 2025 was $28.857 million, compared to $7.119 million in Q3 2025, reflecting a significant increase[38] - Basic earnings per share for Q4 2025 were $2.83, up from $1.91 in Q4 2024, representing a 48.2% increase[36] - Basic earnings per share for Q4 2025 were $2.83, up from $0.68 in Q3 2025[38] Interest Income and Margin - Net interest income for Q4 2025 was $85.3 million, an increase of $8.0 million, or 10.4%, from $77.3 million in Q3 2025, and an increase of $18.7 million, or 28.1%, from the prior year[4] - Total interest income for Q4 2025 reached $137,465 thousand, up from $119,829 thousand in Q4 2024, representing a 14.7% year-over-year increase[36] - Net interest income after provision for credit losses was $82,479 thousand in Q4 2025, compared to $65,103 thousand in Q4 2024, reflecting a 26.7% increase[36] - The net interest margin for Q4 2025 was 4.10%, up 22 basis points from 3.88% in Q3 2025 and up 44 basis points from 3.66% in Q4 2024[4] - The total cost of deposits decreased to 2.75% in Q4 2025, compared to 2.98% in Q3 2025, reflecting improved funding costs[40] Loans and Deposits - Total loans at December 31, 2025, were $6.8 billion, an increase of $28.5 million, or 0.4%, from September 30, 2025, and an increase of $776.2 million, or 12.9%, from December 31, 2024[4] - Total deposits at December 31, 2025, were $7.4 billion, an increase of $304.4 million, or 4.3%, from September 30, 2025, and an increase of $1.4 billion, or 23.3%, from December 31, 2024[4] - Total deposits rose to $7,377,178 thousand in Q4 2025, up from $5,982,973 thousand in Q4 2024, an increase of 23.3%[35] Credit Quality - The allowance for credit losses was $97.1 million at December 31, 2025, an increase of $2.9 million from September 30, 2025, and an increase of $33.8 million from December 31, 2024[26] - The provision for credit losses in Q4 2025 was $2,846 thousand, significantly lower than $23,862 thousand in Q3 2025, indicating improved credit quality[36] - The ratio of non-performing loans to total loans was 1.28% at December 31, 2025, up from 1.20% at September 30, 2025, and 0.54% at December 31, 2024[25] - Total non-performing loans increased to $86.884 million, up from $81.562 million in Q3 2025, resulting in a non-performing loans to total loans ratio of 1.28%[37] Assets and Equity - Total assets increased to $8,255,716 thousand as of December 31, 2025, compared to $7,300,749 thousand a year earlier, marking a 13.1% growth[35] - Total stockholders' equity reached $743,112 thousand as of December 31, 2025, compared to $729,827 thousand a year earlier, showing a slight increase of 1.8%[35] - Average total assets increased to $8.319 billion in Q4 2025, compared to $7.964 billion in Q3 2025[40] Expenses and Efficiency - Non-interest expense for Q4 2025 was $44,381 thousand, compared to $38,161 thousand in Q4 2024, an increase of 16.3%[36] - The efficiency ratio improved to 50.2% in Q4 2025, down from 57.4% in Q3 2025, indicating better cost management[38] Other Financial Metrics - The effective tax rate for the year 2025 was 30.0%, compared to 31.3% for the prior year[24] - The allowance for credit losses increased to $97,081 thousand as of December 31, 2025, from $63,273 thousand a year earlier, indicating a more conservative approach to credit risk[35] - Tier 1 leverage ratio for Metropolitan Bank Holding Corp. was 9.5% in Q4 2025, down from 9.8% in Q3 2025[37] - Average yield on loans was 7.31%, slightly down from 7.36% in the previous year, while total interest-earning assets increased to $7,819,456[46] - Book value per share (GAAP) increased to $73.66 from $65.18, reflecting a year-over-year growth of 12.1%[47] - Tangible book value per share (non-GAAP) rose to $72.69, up from $64.31, indicating a significant increase of 13.2%[47]