Metropolitan Bank Holding Corp. (MCB) 10-K 2026: AI Summary

Summary

Full summary

The Print

Net income rose to $71.1M in 2025 from $66.7M in 2024, with diluted EPS of $6.62 versus $5.93, as net interest income increased $18.7M to $303.2M while non-interest income fell $12.0M to $11.9M.

Net income increased $4.4M to $71.1M, which the filing attributes primarily to the $18.7M increase in net interest income, partially offset by a $12.0M decrease in non-interest income driven primarily by the absence of $13.4M in Banking-as-a-Service revenue, and a $2.4M increase in total non-interest expense. Net interest margin rose 35 basis points to 3.88%, which management attributes to the decrease in the cost of funds and loan spread discipline.

Net interest income increased $18.7M to $303.2M and net interest margin rose 35 basis points to 3.88%, which management attributes to a decrease in the cost of funds and loan spread discipline.
Non-interest income decreased $12.0M to $11.9M, driven primarily by the absence of $13.4M in Banking-as-a-Service revenue.
The provision for credit losses for loans and loan commitments was $37.6M versus $6.3M in 2024, primarily due to a single out-of-market CRE multi-family loan relationship classified as non-performing in the third quarter of 2025 and loan growth.
Total assets increased 13.1% to $8.3B and total deposits increased $1.4B, or 23.3%, to $7.4B.

Results That Matter

Net Interest Income
Current period
$303.2M
Prior period
$253.1M
Change
—
Prior period from XBRL
Non-Interest Income
Current period
$11.9M
Prior period
$23.8M
Change
—
Prior period from XBRL
Net income
Current period
$71.1M
Prior period
$66.7M
Change
+6.6%
This increase primarily reflects the $18.7 million increase in net interest income, partially offset by a $12.0 million decrease in non-interest income, driven primarily by the absence of $13.4 million in Banking-as-a-Service revenue and a $2.4 million increase in total non-interest expense.
Diluted earnings per common share
Current period
$6.6
Prior period
$5.9
Change
+11.6%
Diluted EPS increased while net income rose 6.6%; the filing discloses 1,211,574 treasury shares purchased at a cost of $73.5M during 2025, reducing shares outstanding to 10,088,617 from 11,197,625.
Basic earnings per common share
Current period
$6.7
Prior period
$6.0
Change
+12.4%
Basic EPS increased alongside the net income increase and the reduction in shares outstanding from treasury stock purchases.
Provision for credit losses
Current period
$37.6M
Prior period
$6.3M
Change
+496.8%
The increase from the prior year was primarily due to a single out-of-market CRE multi-family loan relationship that was classified as non-performing in the third quarter of 2025 and loan growth.
Net interest margin
Current period
3.9%
Prior period
3.5%
Change
+0.4 ppts
The 35 basis point increase was primarily driven by the decrease in the cost of funds and loan spread discipline.
Efficiency ratio
Current period
55.9%
Prior period
62.7%
Change
−6.8 ppts
The efficiency ratio decreased from 62.68% to 55.86%.

Financial highlights: current period, prior period, change, and investor takeaway per metric
Metric	Current Period	Prior Period	Change	Investor Takeaway
Net Interest Income	$303.2M	$253.1M	—	Prior period from XBRL
Non-Interest Income	$11.9M	$23.8M	—	Prior period from XBRL
Net income	$71.1M	$66.7M	+6.6%	This increase primarily reflects the $18.7 million increase in net interest income, partially offset by a $12.0 million decrease in non-interest income, driven primarily by the absence of $13.4 million in Banking-as-a-Service revenue and a $2.4 million increase in total non-interest expense.
Diluted earnings per common share	$6.6	$5.9	+11.6%	Diluted EPS increased while net income rose 6.6%; the filing discloses 1,211,574 treasury shares purchased at a cost of $73.5M during 2025, reducing shares outstanding to 10,088,617 from 11,197,625.
Basic earnings per common share	$6.7	$6.0	+12.4%	Basic EPS increased alongside the net income increase and the reduction in shares outstanding from treasury stock purchases.
Provision for credit losses	$37.6M	$6.3M	+496.8%	The increase from the prior year was primarily due to a single out-of-market CRE multi-family loan relationship that was classified as non-performing in the third quarter of 2025 and loan growth.
Net interest margin	3.9%	3.5%	+0.4 ppts	The 35 basis point increase was primarily driven by the decrease in the cost of funds and loan spread discipline.
Efficiency ratio	55.9%	62.7%	−6.8 ppts	The efficiency ratio decreased from 62.68% to 55.86%.

Earnings Quality & Cash Conversion

Non-interest income of $11.9M in 2025 reflects the absence of $13.4M in Banking-as-a-Service revenue recognized in 2024, when Global Payments Group revenue was $13.4M. Non-interest expense of $176.0M includes a decrease of $9.5M in the regulatory settlement reserve, which was $9.5M in 2024 and zero in 2025. The provision for credit losses of $37.6M includes the effect of a single out-of-market CRE multi-family loan relationship classified as non-performing in the third quarter of 2025.

Red flag

Non-performing loans increased to $86.9M at December 31, 2025 from $32.6M at December 31, 2024, primarily due to a single out-of-market CRE multi-family loan relationship classified as non-performing in the third quarter of 2025.

Red flag

The allowance for credit losses to non-performing loans decreased to 111.7% at December 31, 2025 from 194.1% at December 31, 2024.

Red flag

The provision for credit losses for loans and loan commitments increased to $37.6M for 2025 from $6.3M for 2024.

Value Drivers & Capital Allocation

Return on equity was 9.6% (prior 9.1%) (period net income / period-end equity, not annualized); return on assets 0.9% (prior 0.9%) (period net income / period-end assets, not annualized).

Forward Signals

No forward guidance is provided in the filing. The filing discloses interest rate sensitivity simulations: at December 31, 2025, an instantaneous and sustained parallel upward shift of 200 basis points in interest rates would result in a 1.61% decrease in net interest income, and a downward shift of 200 basis points would result in a 4.08% increase in net interest income.

Known trends

At December 31, 2025, total CRE loans were 376.5% of the Bank's risk-based capital, compared to 346.1% at December 31, 2024.
Non-performing loans increased to $86.9 million at December 31, 2025 from $32.6 million at December 31, 2024, primarily due to a single out-of-market CRE multi-family loan relationship classified as non-performing in the third quarter of 2025.
The Company performed a hypothetical sensitivity analysis that decreased the weight on the baseline scenario by 33% and equally allocated the difference to increase the weights on the more optimistic and adverse scenarios, resulting in a net increase of approximately $9.7 million, or 9.9%, in the Company's total ACL for loans and loan commitments as of December 31, 2025.

Subsequent events

Not disclosed—no material subsequent events are described in the provided filing excerpts.

Risks

4 source-verified filing excerpts. 1 item withheld because the evidence could not be matched. Selected excerpts are not a complete risk inventory.

Filing excerpt 1

EvidenceAt December 31, 2025, $6.7 billion, or 98.6% of total loans, consisted of CRE and C&I loans.

Filing excerpt 2

EvidenceThe largest concentration in the loan portfolio is to the healthcare industry, which amounted to $2.8 billion, or 41.4% of total loans, at December 31, 2025, including $2.7 billion in loans to skilled nursing facilities.

Filing excerpt 3

EvidenceAt December 31, 2025, the Company had $172.6 million of New York City rent-regulated stabilized multi-family loans, which had a weighted-average debt service coverage ratio of 2.7x and a weighted-average LTV of 44.7% based on the most recent appraisal.

Filing excerpt 4

EvidenceAt December 31, 2025, the estimated aggregate amount of FDIC uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.0 billion.

Balance Sheet & Liquidity

Leverage: This filing's standardized financial data reports no debt balance under a concept whose scope can be verified. That is an unestablished scope, not zero debt and not a net cash position; no total debt, net debt or debt-to-equity figure is stated.

Liquidity: Cash and cash equivalents totaled $393.6M at December 31, 2025, an increase of $193.3M, or 96.5%, from December 31, 2024. The Company had cash on deposit with the FRBNY and available secured wholesale funding borrowing capacity of $3.3 billion at December 31, 2025.

Cash flow: Cash flow — operating $88.7M, investing $-763.0M, financing $867.6M.

Working capital: Not applicable—the Company reports an unclassified balance sheet as a bank holding company, with no current-asset/current-liability split.

Maturities & covenants

Time deposits due within one year as of December 31, 2025 totaled $186.3 million, or 2.5% of total deposits.
At December 31, 2025, the Company had no outstanding Federal funds purchased or FHLBNY advances.
At December 31, 2025 and December 31, 2024, the Bank met all applicable regulatory capital requirements, and the Bank is considered "well capitalized" under regulatory guidelines.

Notable Footnotes

Item	Impact
Allowance for credit losses on loans	The ACL for loans was $97.1 million at December 31, 2025, as compared to $63.3 million at December 31, 2024. The ratio of ACL to total loans was 1.43% at December 31, 2025 compared to 1.05% at December 31, 2024. The increase in the ACL was primarily due to loan growth and a single out-of-market CRE multi-family loan relationship that was classified as non-performing in the third quarter of 2025.
Goodwill	The Company had $9.7 million of goodwill associated with a purchase of a prepaid third-party debit card business as of December 31, 2025. Based on its annual impairment assessment, the Company determined that no impairment of goodwill existed as of December 31, 2025.
Deposit related program fees	Bankruptcy accounts subject to the licensing fees amounted to $492.3 million and $305.4 million at December 31, 2025 and 2024, respectively. EB-5 Program accounts subject to fees amounted to $480.8 million and $291.2 million at December 31, 2025 and 2024, respectively.
Adoption of ASC 326	Upon adoption, the Company recorded a cumulative effect adjustment that increased the allowance for credit losses for loans and loan commitments by $3.0 million, increased deferred tax assets by $777,000 and decreased retained earnings by $2.1 million, net of tax.

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