Metropolitan Bank Holding Corp. reported net income of $16.4 million, or $1.45 per diluted common share, for the first quarter of 2025. This compares to $21.4 million, or $1.88 per diluted common share, in the fourth quarter of 2024, and $16.2 million, or $1.46 per diluted common share, in the first quarter of 2024. Net Interest Income (NII) increased by $7.3 million to $66.952 million in Q1 2025 compared to Q1 2024.
The bank demonstrated robust balance sheet growth, with total deposits increasing by $466.3 million, or 7.8%, in the first quarter of 2025. Total loans, net, also grew by $308.0 million, or 5.1%, during the same period. The Net Interest Margin (NIM) reached 3.68% for the quarter, marking the sixth consecutive quarter of margin expansion.
Looking ahead, management provided guidance for 2025, projecting loan growth of 10% to 12% and full-year NIM between 3.7% and 3.75%. Non-interest income is expected to grow by 6% to 8%, excluding past Global Payments Group contributions. Operating expenses are anticipated to be flat to 2024 levels, including approximately $11 million in one-time digital transformation costs, with a target for a lower 'clean run rate' in the low $150 million range by late 2025 or early 2026. The capital plan also contemplates a quarterly cash dividend as early as the third quarter of 2025.
Asset quality metrics at March 31, 2025, included non-performing loans of $34.5 million, representing 0.54% of total loans, and an Allowance for Credit Losses (ACL) of $67.8 million, or 1.07% of total loans. The provision for credit losses in Q1 2025 was $4.5 million, an increase from $528,000 in Q1 2024, primarily driven by loan growth and a specific provision against a single unsecured C&I loan. Non-performing loans increased slightly from $32.6 million at December 31, 2024, due to this single credit.
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