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Highlights

  • Metropolitan Bank reported diluted EPS of $1.76 in Q2 2025, up 21.4% from Q1 2025.
  • Net interest margin rose to 3.83% in Q2 2025, up 15 basis points from the prior quarter.
  • Total loans reached $6.6 billion, rising 4.3% from Q1 2025 and 13.3% from Q2 2024.

Metropolitan Bank Holding Corp. (NYSE:MCB), the parent company of Metropolitan Commercial Bank, posted net income of $18.8 million, or $1.76 per diluted share, for the quarter ended June 30, 2025. This reflects a 14.7% increase in net income and a 21.4% increase in EPS compared to Q1 2025, which reported $16.4 million in net income and $1.45 in diluted EPS. The second-quarter results included $1.6 million in digital transformation spending, equal to $0.10 per diluted share after tax.

Net interest income rose to $73.6 million, up from $67.0 million in Q1 2025 and $61.5 million in Q2 2024, driven by growth in average loan balances and lower funding costs. The net interest margin (NIM) improved to 3.83%, a 15 basis point increase from the prior quarter and 39 basis points higher than the same period last year.

The total loan portfolio expanded to $6.6 billion, up $270.7 million, or 4.3%, from Q1 2025, largely due to growth in commercial real estate loans. Compared to Q2 2024, loan balances rose $773.9 million, or 13.3%. Total deposits also grew to $6.8 billion, marking a $342.0 million, or 5.3%, increase from the previous quarter.

The non-performing loan ratio stood at 0.60%, compared to 0.54% in Q1 2025 and 0.53% in Q2 2024, while the allowance for credit losses increased to $74.1 million, up $6.3 million from Q1 2025. The rise reflects ongoing loan growth, a provision related to a CRE loan, and updates to macroeconomic assumptions.

On the capital return front, Metropolitan completed its initial $50 million share repurchase program in May 2025, buying back 878,807 shares at an average price of $56.90. A new $50 million repurchase plan was authorized in July, bringing the total buyback authorization to $100 million for 2025. The company also declared its first-ever quarterly cash dividend of $0.15 per share, payable on July 28, 2025.

Liquidity remained strong, with $2.9 billion in cash at the Federal Reserve and secured funding capacity, equivalent to 178% of estimated uninsured deposits. The company reported a total risk-based capital ratio of 12.2%, maintaining its “well-capitalized” status under regulatory guidelines.