Metropolitan Bank Holding Corp. has recently released its 10-K report, providing a detailed look at its financial performance and operations. The New York-based bank holding company operates Metropolitan Commercial Bank, offering a range of banking products and services to small businesses, middle-market enterprises, public entities, and individuals primarily in the New York metropolitan area. The company's primary lending products include commercial real estate (CRE) and commercial and industrial (C&I) loans, which are secured by specific collateral, including business and consumer assets, and commercial and residential real estate.
In 2025, Metropolitan Bank reported a return on average assets of 0.90% and a return on average equity of 9.70%. The net interest margin, a key measure of lending profitability, stood at 3.88%, reflecting the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. The efficiency ratio, which measures operating expenses as a percentage of revenue, was 55.86%.
The bank's total assets increased by 13.1% to $8.3 billion in 2025, with total cash and cash equivalents reaching $393.6 million, representing a 96.5% increase from the previous year. The loan portfolio grew by 12.9% to $6.8 billion, primarily driven by an increase of $884.1 million in CRE loans. Additionally, the company's securities portfolio, consisting primarily of investment-grade mortgage-backed securities and collateralized mortgage obligations, stood at $941.2 million.
Metropolitan Bank's approach to credit risk management is evident in its allowance for credit losses (ACL) for loans and loan commitments. The company's management believes that the ACL is adequate to cover expected credit losses over the life of the loan portfolio. The ACL is determined using models and economic forecasts developed by external parties, and the company periodically reviews and makes qualitative adjustments to capture potential limitations of the external models. Notably, Metropolitan Bank has a zero loss expectation for nearly all of its held-to-maturity (HTM) securities portfolio, with an immaterial ACL related to U.S. State and Municipal securities.
The 10-K report also highlights Metropolitan Bank's focus on organic growth in the New York metropolitan area, leveraging its experienced team of commercial relationship managers and integrated, client-centric approach to deepen existing client relationships and expand its client base. The company's financial position and performance are further detailed in the report, providing investors and stakeholders with comprehensive insights into its operations and outlook. Following these announcements, the company's shares moved -3.32%, and are now trading at a price of $79.50. For the full picture, make sure to review Metropolitan Bank's 10-K report.
