Metropolitan Bank Holding Corp. reported net income of $7.1 million, or $0.67 per diluted common share, for the third quarter of 2025. This represents a significant decrease compared to $18.8 million, or $1.76 per diluted common share, in the second quarter of 2025, and $12.3 million, or $1.08 per diluted common share, in the third quarter of 2024.
The primary factor for the reduced profitability was a substantial provision for credit losses totaling $23.9 million. This included an $18.7 million specific provision related to three out-of-state multifamily loans extended to a single borrower group. An additional $3.5 million of provision expense was attributed to deteriorating macroeconomic variable forecasts.
Despite the credit provision impact, the bank reported strong operational metrics. Loan growth was approximately $170 million, or 2.6%, in the quarter, with year-to-date loan growth exceeding 12%. Core deposits rose by about $280 million, or 4.1%, contributing to total deposits increasing by over $1 billion, or 18%, year to date 2025. Net interest margin expanded five basis points sequentially to 3.88%, marking the eighth consecutive quarter of margin expansion, and net interest income reached $77.3 million, up 5% from the prior quarter and over 18% higher year over year.
Management provided guidance for the fourth quarter of 2025, expecting NIM to be between 3.93% and 3.95%, with the annual NIM projected to be north of 3.8%. Loan pipelines remain robust, projecting $100 million–$200 million in additional loan growth for the remainder of 2025. The company also announced new market branch expansion plans for Lakewood, Miami, and West Palm Beach, and anticipates full technology stack integration by the end of the first quarter of 2026. Operating expenses are projected at $46 million for Q4 2025, inclusive of one-time technology investment.
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