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

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

NEW YORK, January 20, 2026 ‒ 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.

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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.

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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

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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.

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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.

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