Metropolitan Bank Holding Corp. Reports Fourth Quarter and Full Year 2024 Results

NEW YORK--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $21.4 million, or $1.88 per diluted common share, for the fourth quarter of 2024 compared to $12.3 million, or $1.08 per diluted common share, for the third quarter of 2024, and $14.6 million, or $1.28 per diluted common share, for the fourth quarter of 2023. Mark DeFazio, President and Chief Executive Officer, commented, “I am pleased with MCB’s fourth quarter and full year performance for 2024. Beyond our core commercial banking business, we made meaningful progress on two major initiatives in 2024. First, MCB reached a significant milestone and successfully exited its 22-year old BaaS business with only a few minor operational tasks remaining. Throughout the exit, MCB demonstrated its core strengths by replacing the deposits associated with this business timely and efficiently, while increasing our NIM. The other significant initiative, our investment in a franchise-wide new technology stack, is expected to be completed by year end 2025. We are confident we have scaled these new technologies to support MCB’s diversified commercial banking business for years to come. “While managing these initiatives, MCB advanced its sustained growth strategy with strong profitability, continued solid asset quality, and further solidified its presence in New York and several other markets around the country. “Our solid performance in the dynamic environment of 2024 sets the stage for enhanced performance in 2025. I am particularly optimistic, in light of the anticipated improvement in the operating environment and the positive economic outlook. By maintaining our core discipline and implementing other opportunistic growth initiatives, we plan to continue to enhance our strong industry position in 2025 and beyond.” Balance Sheet Total cash and cash equivalents were $200.3 million at December 31, 2024, a decrease of $118.2 million, or 37.1%, from September 30, 2024 and a decrease of $69.2 million, or 25.7%, from December 31, 2023. The decrease from September 30, 2024, primarily reflects an increase in the loan book of $137.0 million and a $286.9 million decrease in deposits, partially offset by a $200.0 million increase in wholesale funding. The decrease from December 31, 2023, primarily reflects an increase in the loan book of $409.3 million and a $89.0 million decrease in wholesale funding, partially offset by $245.7 million increase in deposits and $87.6 million decrease in receivables from the GPG wind down. Total loans, net of deferred fees and unamortized costs, were $6.0 billion at December 31, 2024, an increase of $137.0 million, or 2.3%, from September 30, 2024, and an increase of $409.3 million, or 7.3%, from December 31, 2023. Loan production was $309.0 million for the fourth quarter of 2024 compared to $460.6 million for the prior linked quarter and $342.5 million for the prior year period. The increase in total loans from September 30, 2024 was due primarily to an increase of $144.7 million in commercial real estate (“CRE”) loans (including owner-occupied), partially offset by a decrease of $23.5 million in commercial and industrial loans. The increase in total loans from December 31, 2023 was due primarily to an increase of $459.7 million in CRE loans (including owner-occupied), partially offset by a $90.8 million decrease in multi-family loans. Total deposits were $6.0 billion at December 31, 2024, a decrease of $286.9 million, or 4.6%, from September 30, 2024, and an increase of $245.7 million, or 4.3%, from December 31, 2023. The decrease from September 30, 2024 was due primarily to a $678.3 million decrease in GPG deposits, partially offset by a $391.4 million increase spread across most of the Company’s various deposit verticals. The increase in deposits from December 31, 2023, was due to a $934.7 million increase spread across most of the Bank’s various deposit verticals, partially offset by a $689.0 million decrease in GPG deposits due to the successful completion of the GPG wind down. At December 31, 2024, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $2.9 billion. The Company and the Bank each met all the requirements to be considered “well capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 346.1% of total risk-based capital at December 31, 2024, compared to 353.3% and 368.1% at September 30, 2024 and December 31, 2023, respectively. Income Statement Financial Highlights Three months ended Year ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Total revenues(1) $ 71,004 $ 71,518 $ 63,555 $ 276,913 $ 250,739 Net income (loss) $ 21,418 $ 12,266 $ 14,568 66,686 77,268 Diluted earnings (loss) per common share $ 1.88 $ 1.08 $ 1.28 5.93 6.91 Return on average assets(2) 1.16 % 0.67 % 0.84 % 0.91 % 1.19 % Return on average equity(2) 11.8 % 6.9 % 9.0 % 9.6 % 12.4 % Return on average tangible common equity(2), (3), (4) 12.0 % 7.0 % 9.1 % 9.7 % 12.6 % ____________________ (1) Total revenues equal net interest income plus non-interest income. (2) For periods less than a year, ratios are annualized. (3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13. (4) Net income divided by average tangible common equity. Net Interest Income Net interest income for the fourth quarter of 2024 was $66.6 million compared to $65.2 million for the prior linked quarter and $57.0 million for the prior year period. The $1.4 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 a decrease in loan yields primarily related to reductions in short-term interest rates that affect floating rate loans, a decline in the average balance of overnight deposits, and an increase in the average balance of interest earning liabilities, including $80.3 million in wholesale funding. The $9.6 million increase from the prior year period was due primarily to an increase in the average balance of loans, an increase in loan yields, and a decrease in the average balance of borrowed funds, partially offset by an increase in the average balance of deposits. Net interest income for the year 2024 was $253.1 million compared to $222.8 million for the prior year. The $30.2 million increase from the prior year was due primarily to an increase in the average balance of loans, an increase in loan yields, partially offset by an increase in the cost of funds and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit. Net Interest Margin Net interest margin for the fourth quarter of 2024 was 3.66% compared to 3.62% and 3.36% for the prior linked quarter and prior year period, respectively. The 4 basis point increase from the prior linked quarter was driven largely by an increase in the average balance of loans and a decrease in the cost of funds, partially offset by a decrease in loan yields, a decrease in the average balance of overnight deposits, and an increase in the average balance of interest earning liabilities. The 30 basis point increase from the prior year period was due primarily to an increase in the average balance of loans, an increase in loan yields, and a decrease in the average balance of borrowed funds, partially offset by an increase in the average balance of deposits. Net interest margin for the year 2024 was 3.53% compared to 3.49% for the prior year, primarily driven by an increase in the average balance of loans and the yield on loans, partially offset by an increase in the average balance of deposits and the cost of funds. The total cost of funds for the fourth quarter of 2024 was 325 basis points compared to 339 basis points and 314 basis points for the prior linked quarter and prior year, respectively. The decrease from the prior linked quarter reflects the recent reduction in short-term interest rates, partially offset by the runoff of lower cost GPG deposits replaced with market rate deposits and wholesale borrowings. The increase from the prior year reflects the relatively high short-term interest rates in the earlier part of the year, the intense competition for deposits, and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit. The total cost of funds for the year 2024 was 332 basis points compared to 265 basis points for the prior year. The increase reflects the relatively high short-term interest rates in the earlier part of the year, the intense competition for deposits, and a shift from non-interest bearing deposits to interest bearing funding primarily related to the GPG exit. Non-Interest Income Non-interest income was $4.4 million for the fourth quarter of 2024, a decrease of $1.9 million from the prior linked quarter and a decrease of $2.2 million from the prior year period. The decrease from the prior linked quarter was driven primarily by a decline in GPG revenue as that business was wound down. The decrease from the prior year period was driven primarily by lower GPG revenue, partially offset by an increase in service charges on deposit accounts. Non-interest income was $23.8 million for the year 2024, a decrease of $4.1 million from the prior year. The decrease from the prior year was driven primarily by lower GPG revenue as that business was wound down, partially offset by an increase in service charges on deposit accounts. Non-Interest Expense Non-interest expense was $38.2 million for the fourth quarter of 2024, a decrease of $13.1 million from the prior linked quarter and an increase of $1.0 million from the prior year period. The decrease from the prior linked quarter was due primarily to the pre-tax $10.0 million regulatory reserve recorded in the third quarter of 2024, which was recorded in connection with a matter involving the Attorney General of the State of Washington that was resolved in the fourth quarter of 2024. The $1.0 million increase from the prior year period was due primarily to a $1.4 million increase in compensation and benefits related to the increase in the number of employees and a $1.0 million increase in technology costs related to the digital transformation initiative, partially offset by a $1.3 million decrease in professional fees. Non-interest expense was $173.6 million for the year 2024, an increase of $42.0 million from the prior year. The increase from the prior year was due primarily to the pre-tax $10.0 million regulatory reserve recorded in the third quarter of 2024, the $5.0 million reversal of the reserve in 2023, a $10.9 million increase in compensation and benefits related to the increase in the number and mix of employees, as well as severance related expenses, and a $6.1 million increase in technology costs related to the digital transformation initiatives. Income Tax Expense The effective tax rate for the year 2024 was 31.3% compared to 27.7% for the prior year. The effective tax rate for the prior year reflects a discrete tax item related to the exercise of stock options in the third quarter of 2023 and the reversal of the regulatory settlement reserve in that period. Asset Quality Credit quality remains stable. The ratio of non-performing loans to total loans was 0.54% at December 31, 2024 and 0.53% at September 30, 2024. The ratio of non-performing loans to total loans was 0.92% at December 31, 2023. The allowance for credit losses was $63.3 million at December 31, 2024, an increase of $780,000 from September 30, 2024, and $5.3 million from December 31, 2023. The increase from September 30, 2024 primarily reflects loan growth. The increase from December 31, 2023 primarily reflects loan growth and a provision related to a single C&I loan. Conference Call The Company will conduct a conference call at 9:00 a.m. ET on Friday, January 24, 2025, to discuss the results. To access the event by telephone, please dial 800-579-2543 (US), 785-424-1789 (INTL), and provide conference ID: MCBQ424 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. 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 and corporate enterprises and institutions, municipalities, and local government entities. Metropolitan Commercial Bank was named one of Newsweek’s Best Regional Banks and Credit Unions 2025. The Bank was ranked by Independent Community Bankers of America among the top ten successful loan producers for 2024 by loan category and asset size for commercial banks with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating on January 25, 2024. 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. Forward-Looking Statement Disclaimer This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s future financial condition and capital ratios, results of operations and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that are difficult to predict and are generally beyond our control and may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the following: the interest rate policies of the Federal Reserve and other regulatory bodies; an unexpected deterioration in the performance of our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; global pandemics, or localized epidemics, could adversely affect the Company’s financial condition and results of operations; potential recessionary conditions, including the related effects on our borrowers and on our financial condition and results of operations; an unanticipated loss of key personnel or existing clients, or an inability to attract key employees; increases in competitive pressures among financial institutions or from non-financial institutions which may result in unanticipated changes in our loan or deposit rates; unanticipated increases in FDIC insurance premiums or future assessments; legislative, tax or regulatory changes or actions, which may adversely affect the Company’s business; impacts related to or resulting from regional and community bank failures and stresses to regional banks; changes in deposit flows, funding sources or loan demand, which may adversely affect the Company’s business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition or results of operation to be reported or perceived differently; general economic conditions, including unemployment rates, either nationally or locally in some or all of the areas in which the Company does business, or conditions in the securities markets or the banking industry being less favorable than currently anticipated; inflation, which may lead to higher operating costs; declines in real estate values in the Company’s market area, which may adversely affect our loan production; an unexpected adverse financial, regulatory, legal or bankruptcy event experienced by our non-bank financial service clients; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company’s third-party service providers or those of our non-bank financial service clients for which we provide global payments infrastructure; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or clients; failure to maintain current technologies or technological changes that may be more difficult or expensive to implement than anticipated, and failure to successfully implement future information technology enhancements; the costs, including the possible incurrence of fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the successful implementation or consummation of new business initiatives, which may be more difficult or expensive than anticipated; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by clients; changes in consumer spending, borrowing or savings habits; the risks associated with adverse changes to credit quality; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance for credit losses; credit and other risks from borrower and depositor concentrations (e.g., by geographic area and by industry); difficulties associated with achieving or predicting expected future financial results; and the potential impact on the Company’s operations and clients resulting from natural or man-made disasters, wars, acts of terrorism, cyberattacks and pandemics, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forward-looking statements speak only as of the date of this release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law. Consolidated Balance Sheet (unaudited) Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, (in thousands) 2024 2024 2024 2024 2023 Assets Cash and due from banks $ 13,078 $ 16,674 $ 18,152 $ 34,037 $ 31,973 Overnight deposits 187,190 301,804 226,510 500,366 237,492 Total cash and cash equivalents 200,268 318,478 244,662 534,403 269,465 Investment securities available-for-sale 482,085 510,966 504,748 497,789 461,207 Investment securities held-to-maturity 428,557 438,445 449,368 460,249 468,860 Equity investment securities, at fair value 5,109 5,213 2,122 2,115 2,123 Total securities 915,751 954,624 956,238 960,153 932,190 Other investments 30,636 26,586 26,584 32,669 38,966 Loans, net of deferred fees and unamortized costs 6,034,076 5,897,119 5,838,892 5,719,218 5,624,797 Allowance for credit losses (63,273 ) (62,493 ) (60,008 ) (58,538 ) (57,965 ) Net loans 5,970,803 5,834,626 5,778,884 5,660,680 5,566,832 Receivables from global payments business, net — 96,048 90,626 93,852 87,648 Other assets 183,291 172,996 168,597 171,614 172,571 Total assets $ 7,300,749 $ 7,403,358 $ 7,265,591 $ 7,453,371 $ 7,067,672 Liabilities and Stockholders' Equity Deposits Non-interest-bearing demand deposits $ 1,334,054 $ 1,780,305 $ 1,883,176 $ 1,927,629 $ 1,837,874 Interest-bearing deposits 4,648,919 4,489,602 4,286,486 4,309,913 3,899,418 Total deposits 5,982,973 6,269,907 6,169,662 6,237,542 5,737,292 Federal funds purchased 210,000 — — — 99,000 Federal Home Loan Bank of New York advances 240,000 150,000 150,000 300,000 440,000 Trust preferred securities 20,620 20,620 20,620 20,620 20,620 Secured and other borrowings 7,441 107,478 107,514 107,549 7,585 Prepaid third-party debit cardholder balances — 21,970 22,631 18,685 10,178 Other liabilities 109,888 118,192 102,760 95,434 93,976 Total liabilities 6,570,922 6,688,167 6,573,187 6,779,830 6,408,651 Common stock 112 112 112 112 111 Additional paid in capital 400,188 397,963 395,520 393,341 395,871 Retained earnings 382,661 361,243 348,977 332,178 315,975 Accumulated other comprehensive gain (loss), net of tax effect (53,134 ) (44,127 ) (52,205 ) (52,090 ) (52,936 ) Total stockholders’ equity 729,827 715,191 692,404 673,541 659,021 Total liabilities and stockholders’ equity $ 7,300,749 $ 7,403,358 $ 7,265,591 $ 7,453,371 $ 7,067,672 Consolidated Statement of Income (unaudited) Three months ended Year ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Total interest income $ 119,829 $ 120,454 $ 105,267 $ 468,379 $ 375,405 Total interest expense 53,226 55,221 48,273 215,295 152,569 Net interest income 66,603 65,233 56,994 253,084 222,836 Provision for credit losses 1,500 2,691 6,541 6,257 12,283 Net interest income after provision for credit losses 65,103 62,542 50,453 246,827 210,553 Non-interest income Service charges on deposit accounts 2,177 2,135 1,671 8,269 6,071 Global Payments Group revenue 2,100 3,500 4,177 13,355 19,005 Other income 124 650 713 2,205 2,827 Total non-interest income 4,401 6,285 6,561 23,829 27,903 Non-interest expense Compensation and benefits 19,615 19,885 18,210 77,859 66,961 Bank premises and equipment 2,520 2,471 2,317 9,656 9,344 Professional fees 3,687 4,745 5,031 21,320 18,064 Technology costs 1,989 2,969 974 11,012 4,940 Licensing fees 3,217 3,411 3,638 13,084 12,818 FDIC assessments 2,980 2,950 2,639 11,780 9,077 Regulatory settlement reserve (537 ) 10,000 — 9,463 (5,521 ) Other expenses 4,690 4,826 4,338 19,401 15,855 Total non-interest expense 38,161 51,257 37,147 173,575 131,538 Net income before income tax expense 31,343 17,570 19,867 97,081 106,918 Income tax expense 9,925 5,304 5,299 30,395 29,650 Net income (loss) $ 21,418 $ 12,266 $ 14,568 $ 66,686 $ 77,268 Earnings per common share: Average common shares outstanding: Basic 11,196,822 11,193,063 11,062,729 11,179,074 11,060,110 Diluted 11,388,163 11,312,773 11,366,463 11,255,223 11,129,900 Basic earnings (loss) $ 1.91 $ 1.10 $ 1.31 $ 5.97 $ 6.95 Diluted earnings (loss) $ 1.88 $ 1.08 $ 1.28 $ 5.93 $ 6.91 Loan Production, Asset Quality & Regulatory Capital Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, 2024 2024 2024 2024 2023 LOAN PRODUCTION (in millions) $ 309.0 $ 460.6 $ 290.8 $ 269.6 $ 342.5 ASSET QUALITY (in thousands) Non-performing loans: Commercial real estate $ 25,087 $ 24,000 $ 24,000 $ 44,939 $ 44,939 Commercial and industrial 6,989 6,989 6,989 6,989 6,934 One- to four- family 452 — — — — Consumer 72 — 108 145 24 Total non-performing loans $ 32,600 $ 30,989 $ 31,097 $ 52,073 $ 51,897 Non-performing loans to total loans 0.54 % 0.53 % 0.53 % 0.91 % 0.92 % Allowance for credit losses $ 63,273 $ 62,493 $ 60,008 $ 58,538 $ 57,965 Allowance for credit losses to total loans 1.05 % 1.06 % 1.03 % 1.02 % 1.03 % Charge-offs $ (106 ) $ (122 ) $ (16 ) $ (3 ) $ (946 ) Recoveries $ 120 $ 2 $ — $ 2 $ — Net charge-offs/(recoveries) to average loans (annualized) — % 0.01 % — % — % 0.07 % REGULATORY CAPITAL Tier 1 Leverage: Metropolitan Bank Holding Corp. 10.8 % 10.6 % 10.3 % 10.3 % 10.6 % Metropolitan Commercial Bank 10.6 % 10.3 % 10.1 % 10.1 % 10.3 % Common Equity Tier 1 Risk-Based (CET1): Metropolitan Bank Holding Corp. 11.9 % 11.9 % 11.7 % 11.6 % 11.5 % Metropolitan Commercial Bank 12.0 % 11.9 % 11.8 % 11.7 % 11.5 % Tier 1 Risk-Based: Metropolitan Bank Holding Corp. 12.3 % 12.2 % 12.1 % 11.9 % 11.8 % Metropolitan Commercial Bank 12.0 % 11.9 % 11.8 % 11.7 % 11.5 % Total Risk-Based: Metropolitan Bank Holding Corp. 13.3 % 13.2 % 13.0 % 12.9 % 12.8 % Metropolitan Commercial Bank 13.0 % 12.9 % 12.8 % 12.6 % 12.5 % Performance Measures Three months ended Year ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Net income per consolidated statements of income $ 21,418 $ 12,266 $ 14,568 $ 66,686 $ 77,268 Less: Earnings allocated to participating securities — — (78 ) — (365 ) Net income (loss) available to common shareholders $ 21,418 $ 12,266 $ 14,490 $ 66,686 $ 76,903 Per common share: Basic earnings (loss) $ 1.91 $ 1.10 $ 1.31 $ 5.97 $ 6.95 Diluted earnings (loss) $ 1.88 $ 1.08 $ 1.28 $ 5.93 $ 6.91 Common shares outstanding: Period end 11,197,625 11,194,411 11,062,729 11,197,625 11,062,729 Average fully diluted 11,388,163 11,312,773 11,366,463 11,255,223 11,129,900 Return on:(1) Average total assets 1.16 % 0.67 % 0.84 % 0.91 % 1.19 % Average equity 11.8 % 6.9 % 9.0 % 9.6 % 12.4 % Average tangible common equity(2), (3) 12.0 % 7.0 % 9.1 % 9.7 % 12.6 % Yield on average earning assets(1) 6.58 % 6.68 % 6.21 % 6.53 % 5.88 % Total cost of deposits(1) 3.15 % 3.32 % 2.98 % 3.22 % 2.43 % Net interest spread(1) 2.28 % 1.93 % 1.81 % 1.94 % 1.85 % Net interest margin(1) 3.66 % 3.62 % 3.36 % 3.53 % 3.49 % Net charge-offs as % of average loans(1) — % 0.01 % 0.07 % — % 0.02 % Efficiency ratio(4) 53.7 % 71.7 % 58.4 % 62.7 % 52.5 % ____________________ (1) For periods less than a year, ratios are annualized. (2) Net income divided by average tangible common equity. (3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 13. (4) Total non-interest expense divided by total revenues. Interest Margin Analysis Three months ended Dec. 31, 2024 Sept. 30, 2024 Dec. 31, 2023 Average Yield / Average Yield / Average Yield / (dollars in thousands) Balance Interest Rate (1) Balance Interest Rate (1) Balance Interest Rate (1) Assets: Interest-earning assets: Loans (2) $ 6,027,313 $ 111,486 7.36 % $ 5,889,298 $ 111,286 7.52 % $ 5,538,095 $ 97,897 7.01 % Available-for-sale securities 567,548 3,256 2.28 581,529 3,350 2.29 532,970 2,430 1.82 Held-to-maturity securities 434,234 2,012 1.84 444,842 2,061 1.84 474,475 2,217 1.87 Equity investments 5,477 39 2.81 3,164 23 2.89 2,401 14 2.30 Overnight deposits 180,175 2,469 5.45 231,946 3,223 5.53 139,009 1,966 5.53 Other interest-earning assets 30,255 567 7.46 26,584 511 7.65 35,718 743 8.32 Total interest-earning assets 7,245,002 119,829 6.58 7,177,363 120,454 6.68 6,722,668 105,267 6.21 Non-interest-earning assets 181,786 180,748 192,237 Allowance for credit losses (63,536 ) (60,608 ) (53,570 ) Total assets $ 7,363,252 $ 7,297,503 $ 6,861,335 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Money market and savings accounts $ 4,459,792 47,581 4.24 $ 4,314,237 51,266 4.73 $ 3,891,476 42,395 4.32 Certificates of deposit 116,062 1,254 4.30 41,028 471 4.57 34,179 272 3.16 Total interest-bearing deposits 4,575,854 48,835 4.25 4,355,265 51,737 4.73 3,925,655 42,667 4.31 Borrowed funds 350,892 4,391 4.98 270,633 3,484 5.12 427,250 5,606 5.25 Total interest-bearing liabilities 4,926,746 53,226 4.30 4,625,898 55,221 4.75 4,352,905 48,273 4.40 Non-interest-bearing liabilities: Non-interest-bearing deposits 1,586,005 1,851,497 1,748,178 Other non-interest-bearing liabilities 128,995 113,666 116,995 Total liabilities 6,641,746 6,591,061 6,218,078 Stockholders' equity 721,506 706,442 643,257 Total liabilities and equity $ 7,363,252 $ 7,297,503 $ 6,861,335 Net interest income $ 66,603 $ 65,233 $ 56,994 Net interest rate spread (3) 2.28 % 1.93 % 1.81 % Net interest margin (4) 3.66 % 3.62 % 3.36 % Total cost of deposits (5) 3.15 % 3.32 % 2.98 % Total cost of funds (6) 3.25 % 3.39 % 3.14 % ____________________ (1) Ratios are annualized. (2) Amount includes deferred loan fees and non-performing loans. (3) Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets. (4) Determined by dividing annualized net interest income by total average interest-earning assets. (5) Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits. (6) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits. Year ended Dec. 31, 2024 Dec. 31, 2023 Average Yield / Average Yield / (dollars in thousands) Balance Interest Rate Balance Interest Rate Assets: Interest-earning assets: Loans (1) $ 5,842,570 $ 429,748 7.36 % $ 5,147,653 $ 345,039 6.70 % Available-for-sale securities 576,040 12,917 2.24 527,873 8,865 1.68 Held-to-maturity securities 450,048 8,369 1.86 499,379 9,608 1.92 Equity investments 3,377 92 2.73 2,381 52 2.17 Overnight deposits 269,472 15,013 5.57 176,813 9,319 5.20 Other interest-earning assets 29,386 2,240 7.62 33,061 2,522 7.63 Total interest-earning assets 7,170,893 468,379 6.53 6,387,160 375,405 5.88 Non-interest-earning assets 182,936 169,377 Allowance for credit losses (60,384 ) (49,923 ) Total assets $ 7,293,445 $ 6,506,614 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Money market and savings accounts $ 4,298,166 $ 195,695 4.55 $ 3,299,427 $ 127,494 3.86 Certificates of deposit 57,227 2,318 4.05 42,926 1,183 2.76 Total interest-bearing deposits 4,355,393 198,013 4.55 3,342,353 128,677 3.85 Borrowed funds 336,364 17,282 5.14 445,061 23,892 5.37 Total interest-bearing liabilities 4,691,757 215,295 4.59 3,787,414 152,569 4.03 Non-interest-bearing liabilities: Non-interest-bearing deposits 1,788,170 1,960,469 Other non-interest-bearing liabilities 119,364 137,725 Total liabilities 6,599,291 5,885,608 Stockholders' equity 694,154 621,006 Total liabilities and equity $ 7,293,445 $ 6,506,614 Net interest income $ 253,084 $ 222,836 Net interest rate spread (2) 1.94 % 1.85 % Net interest margin (3) 3.53 % 3.49 % Total cost of deposits (4) 3.22 % 2.43 % Total cost of funds (5) 3.32 % 2.65 % ____________________ (1) Amount includes deferred loan fees and non-performing loans. (2) Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets. (3) Determined by dividing annualized net interest income by total average interest-earning assets. (4) Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits. (5) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits. Reconciliation of Non-GAAP Measures In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables: Quarterly Data Year ended (dollars in thousands, Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31, except per share data) 2024 2024 2024 2024 2023 2024 2023 Average assets $ 7,363,252 $ 7,297,503 $ 7,322,480 $ 7,185,768 $ 6,861,335 $ 7,293,445 $ 6,506,614 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Average tangible assets (non-GAAP) $ 7,353,519 $ 7,287,770 $ 7,312,747 $ 7,176,035 $ 6,851,602 $ 7,283,712 $ 6,496,881 Average common equity $ 721,506 $ 706,442 $ 680,064 $ 667,009 $ 643,257 $ 694,154 $ 621,006 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Average tangible common equity (non-GAAP) $ 711,773 $ 696,709 $ 670,331 $ 657,276 $ 633,524 $ 684,421 $ 611,273 Total assets $ 7,300,749 $ 7,403,358 $ 7,265,591 $ 7,453,371 $ 7,067,672 $ 7,300,749 $ 7,067,672 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Tangible assets (non-GAAP) $ 7,291,016 $ 7,393,625 $ 7,255,858 $ 7,443,638 $ 7,057,939 $ 7,291,016 $ 7,057,939 Common equity $ 729,827 $ 715,191 $ 692,404 $ 673,541 $ 659,021 $ 729,827 $ 659,021 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 9,733 9,733 Tangible common equity (book value) (non-GAAP) $ 720,094 $ 705,458 $ 682,671 $ 663,808 $ 649,288 $ 720,094 $ 649,288 Common shares outstanding 11,197,625 11,194,411 11,192,936 11,191,958 11,062,729 11,197,625 11,062,729 Book value per share (GAAP) $ 65.18 $ 63.89 $ 61.86 $ 60.18 $ 59.57 $ 65.18 $ 59.57 Tangible book value per share (non-GAAP) (1) $ 64.31 $ 63.02 $ 60.99 $ 59.31 $ 58.69 $ 64.31 $ 58.69 ____________________ (1) Tangible book value divided by common shares outstanding at period-end. Explanatory Note Some amounts presented within this document may not recalculate due to rounding.

Metropolitan Bank Holding Corp. Reports Fourth Quarter and Full Year 2024 Results

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