Metropolitan Bank Holding Corp. Reports Fourth Quarter and Full Year 2025 Results

Quarterly Net Income of $28.9 Million Supported by Continued Margin Expansion to 4.10%

Achieved Quarterly Annualized ROAE of 15.6%

Financial Highlights

• Diluted earnings per share of $2.77 for the fourth quarter of 2025, compared to $0.67 for the prior linked quarter and $1.88 for the prior year period.
• Net interest income for the fourth quarter of 2025 was $85.3 million, an increase of $8.0 million, or 10.4%, compared to $77.3 million for the prior linked quarter and an increase of $18.7 million or 28.1%, compared to the prior year period.
• The net interest margin for the fourth quarter of 2025 was 4.10%, an increase of 22 basis points compared to 3.88% for the prior linked quarter and an increase of 44 basis points compared to 3.66% for the prior year period.
• Annualized return on average equity ("ROAE") of 15.6% and annualized return on average tangible common equity¹ ("ROATCE") of 15.8% for the fourth quarter of 2025.
• On January 16, 2026, declared a quarterly cash dividend of $0.20 per share on the Company's common stock, an increase of $0.05 from the prior quarterly dividend of $0.15 per share.
• Total loans at December 31, 2025 were $6.8 billion, an increase of $28.5 million, or 0.4%, from September 30, 2025 and $776.2 million, or 12.9%, from December 31, 2024.
• Total deposits at December 31, 2025 were $7.4 billion, an increase of $304.4 million, or 4.3%, from September 30, 2025 and $1.4 billion, or 23.3%, from December 31, 2024.
• The Company and Bank have total risk-based capital ratios of 12.3% and 11.7%, respectively, at December 31, 2025, well above regulatory minimums. The Bank is "well capitalized" under all applicable regulatory guidelines.

¹ Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13.

Metropolitan Bank Holding Corp. (the "Company") (NYSE:MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $28.9 million, or $2.77 per diluted common share, for the fourth quarter of 2025 compared to $7.1 million, or $0.67 per diluted common share, for the third quarter of 2025, and $21.4 million, or $1.88 per diluted common share, for the fourth quarter of 2024.

Mark DeFazio, President and Chief Executive Officer, commented,

"We are pleased to report our financial performance for both the fourth quarter and the year. In 2025 we continued to execute on our organic growth strategy. Loan growth for the year was $776 million, or approximately 13%, funded entirely with deposit growth. In fact, for the year our deposit growth exceeded our exceptional loan growth by more than $600 million, affording us the ability to pay off all wholesale funding and close the year with a robust cash position. Our performance underscores our leading market position and our resilient business model. We continue to take the right steps to position the bank for above market growth, while balancing this with our acute focus on risk management. Displaying strong momentum in the fourth quarter we achieved a net interest margin of 4.10% and ROATCE of 15.8%.

"As we look ahead to 2026 we are committed to leveraging the success and momentum achieved in the fourth quarter. We are confident we can continue to deliver exceptional customer service and a compelling long-term value proposition to investors."

Balance Sheet

Total loans, net of deferred fees and unamortized costs, were $6.8 billion at December 31, 2025, 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. Loan production was $510.9 million for the fourth quarter of 2025 compared to $514.2 million for the prior linked quarter and $309.0 million for the prior year period. The increase in total loans from September 30, 2025, was due primarily to an increase of $131.4 million in commercial real estate ("CRE") loans (including owner-occupied), partially offset by a decrease of $81.4 million in commercial and industrial ("C&I") loans. The increase in total loans from December 31, 2024 was due primarily to an increase of $884.1 million in CRE loans (including owner-occupied), partially offset by a decrease of $174.5 million in C&I loans.

Total deposits were $7.4 billion at December 31, 2025, 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. Deposit growth for the quarter and for the year was broadly distributed across the Bank's various deposit verticals.

The Bank's liquidity position remains robust. At December 31, 2025, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $3.3 billion, which represented 176% of our estimated uninsured deposits. Total cash and cash equivalents were $393.6 million at December 31, 2025.

The Company and Bank have total risk-based capital ratios well above regulatory minimums. The Bank is "well capitalized" under all applicable regulatory guidelines. During the fourth quarter of 2025, we repurchased approximately 293,000 shares of MCB common stock at a weighted average price of $68.09, or approximately 93.7% of year-end tangible book value per share. Total non-owner-occupied CRE loans were 376.5% of total risk-based capital at December 31, 2025, compared to 373.5% and 346.1% at September 30, 2025 and December 31, 2024, respectively. The increase in the CRE concentration ratio from December 31, 2024 was affected by the Company's common stock repurchases in 2025, which were funded by dividends paid from the Bank to the Company.

Income Statement

Financial Highlights

Net Interest Income

Net interest income for the fourth quarter of 2025 was $85.3 million compared to $77.3 million for the prior linked quarter and $66.6 million for the prior year period. The $8.0 million increase from the prior linked quarter was due primarily to an increase in the average balance of loans, and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits. The $18.7 million increase from the prior year period was due primarily to an increase in the average balance of loans and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits.

Net interest income for the year 2025 was $303.2 million compared to $253.1 million for the prior year. The $50.1 million increase from the prior year was due primarily to an increase in the average balance of loans and a decrease in the cost of funds.

Net Interest Margin

Net interest margin for the fourth quarter of 2025 was 4.10% compared to 3.88% and 3.66% for the prior linked quarter and prior year period, respectively. The Bank's ability to expand its net interest margin compared to the prior-linked quarter and prior year period was supported by rigorous loan and deposit pricing initiatives and the recent decline in short-term interest rates.

Net interest margin for the year 2025 was 3.88% compared to 3.53% for the prior year, primarily driven by the decrease in the cost of funds and loan spread discipline.

The total cost of funds for the fourth quarter of 2025 was 279 basis points compared to 305 basis points and 325 basis points for the prior linked quarter and prior year period, respectively. The decrease from the prior linked quarter and prior year primarily reflects the reduction in short-term interest rates, changes in the deposit mix and hedging activities.

The total cost of funds for the year 2025 was 302 basis points compared to 332 basis points for the prior year. The decrease primarily reflects the reduction in short-term interest rates that favorably impacted our cost of deposits.

Non-Interest Income

Non-interest income was $3.1 million for the fourth quarter of 2025, an increase of $556,000 from the prior linked quarter and a decrease of $1.3 million from the prior year period. The increase from the prior linked quarter was due primarily to a $674,000 gain on the sale of securities in the fourth quarter of 2025. The decrease from the prior year period was driven primarily by the absence of $2.1 million in Banking-as-a-Service revenue, a business we exited in 2024.

Non-interest income was $11.9 million for the year 2025, a decrease of $12.0 million from the prior year. The decrease from the prior year was driven primarily by the absence of $13.4 million in Banking-as-a-Service revenue.

Non-Interest Expense

Non-interest expense was $44.4 million for the fourth quarter of 2025, a decrease of $1.4 million from the prior linked quarter and an increase of $6.2 million from the prior year period. The decrease from the prior linked quarter was primarily due to a decrease of $1.3 million in compensation and benefits. The $6.2 million increase from the prior year period was due primarily to a $4.0 million increase in technology costs and a $2.7 million increase in deposit program related fees, partially offset by a $1.4 million decrease in Federal Deposit Insurance Corporation ("FDIC") assessments.

Non-interest expense was $176.0 million for the year 2025, an increase of $2.4 million from the prior year. The increase from the prior year was due primarily to a $7.2 million increase in deposit program fees, a $6.2 million increase in compensation and benefits related to the increase in the number and mix of employees, and a $6.1 million increase in technology costs related to the digital transformation initiatives, partially offset by a decrease of $9.5 million in the regulatory settlement reserve, a $6.4 million decrease in professional fees and a decrease of $2.2 million in FDIC assessments.

Income Tax Expense

The effective tax rate for the year 2025 was 30.0% compared to 31.3% for the prior year.

Asset Quality

The ratio of non-performing loans to total loans was 1.28% at December 31, 2025 and 1.20% at September 30, 2025 and 0.54% at December 31, 2024. The increase in the non-performing loan ratio from the prior linked quarter primarily reflects the non-performing classification in the fourth quarter of 2025 of two multi-family loans totaling $5.3 million. The increase in the non-performing loan ratio from the prior year period is primarily attributable to a single out-of-market CRE multi-family loan relationship that was classified as non-performing in the third quarter of 2025.

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. The increase from December 31, 2024 primarily reflects an $18.7 million provision in the third quarter of 2025 related to single out-of-market CRE multi-family loan relationship and loan growth.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Wednesday, January 21, 2026, to discuss the results. To access the event by telephone, please dial 800-245-3047 (US), 203-518-9765 (INTL), and provide conference ID: MCBQ425 approximately 15 minutes prior to the start time (to allow time for registration).

The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company's website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software.

For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE:MCB) is the parent company of Metropolitan Commercial Bank (the "Bank"), a New York City based full-service commercial bank. The Bank provides a broad range of business, commercial and personal banking products and services to individuals, small businesses, private and public middle-market corporate enterprises and institutions, municipalities, and local government entities.

Metropolitan Commercial Bank was named one of Newsweek's Best Regional Banks in 2024 and 2025. The Independent Community Bankers of America ranked the Bank as a top ten loan producer in 2024 among commercial banks with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating on January 29, 2025. For the fourth time, MCB has earned a place in the Piper Sandler Bank Sm-All Stars Class of 2024.

The Bank is a New York State chartered commercial bank, a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal housing lender. For more information, please visit the Bank's website at MCBankNY.com.

Forward-Looking Statement Disclaimer

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company's future financial condition and capital ratios, results of operations and the Company's outlook, business, share repurchases under the program, and dividend payments. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as "may," "believe," "expect," "anticipate," "plan," "continue" or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that are difficult to predict and are generally beyond our control and may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the following: the interest rate policies of the Federal Reserve and other regulatory bodies; an unexpected deterioration in the performance of our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; global pandemics, or localized epidemics, could adversely affect the Company's financial condition and results of operations; potential recessionary conditions, including the related effects on our borrowers and on our financial condition and results of operations; an unanticipated loss of key personnel or existing clients, or an inability to attract key employees; increases in competitive pressures among financial institutions or from non-financial institutions which may result in unanticipated changes in our loan or deposit rates; unanticipated increases in FDIC insurance premiums or future assessments; legislative, tax or regulatory changes or actions, which may adversely affect the Company's business; impacts related to or resulting from regional and community bank failures and stresses to regional banks; changes in deposit flows, funding sources or loan demand, which may adversely affect the Company's business; changes in accounting principles, policies or guidelines may cause the Company's financial condition or results of operation to be reported or perceived differently; general economic conditions, including unemployment rates, either nationally or locally in some or all of the areas in which the Company does business, or conditions in the securities markets or the banking industry being less favorable than currently anticipated; inflation, which may lead to higher operating costs; declines in real estate values in the Company's market area, which may adversely affect our loan production; an unexpected adverse financial, regulatory, legal or bankruptcy event experienced by our non-bank financial service clients or critical technology service providers; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company's third-party service providers; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or clients; failure to maintain current technologies or technological changes that may be more difficult or expensive to implement than anticipated, and failure to successfully implement future information technology enhancements; the costs, including the possible incurrence of fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the successful implementation or consummation of new business initiatives, which may be more difficult or expensive than anticipated; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by clients; changes in consumer spending, borrowing or savings habits; the risks associated with adverse changes to credit quality; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance for credit losses; credit and other risks from borrower and depositor concentrations (e.g., by geographic area and by industry); difficulties associated with achieving or predicting expected future financial results; and the potential impact on the Company's operations and clients resulting from natural or man-made disasters, wars, acts of terrorism, cyberattacks and pandemics, as well as those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forward-looking statements speak only as of the date of this release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law.

Consolidated Balance Sheet (unaudited)

Consolidated Statement of Income (unaudited)

Loan Production, Asset Quality & Regulatory Capital

Performance Measures

Interest Margin Analysis