Metropolitan Bank Holding Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, the bank's net income was $12.3 million, a decrease of $9.8 million from $22.1 million in the same period of 2023. The decline in net income was primarily attributed to a $20.3 million increase in non-interest expenses, which included a $10 million regulatory reserve related to an ongoing investigation. In contrast, net interest income rose to $65.2 million, up from $53.6 million year-over-year, driven by an increase in interest income, which reached $120.5 million compared to $97.9 million in Q3 2023.

For the nine months ended September 30, 2024, net income totaled $45.3 million, down from $62.7 million in the prior year. This decrease was also linked to a significant rise in non-interest expenses, which increased by $41 million, despite a $20.6 million increase in net interest income to $186.5 million.

Total assets as of September 30, 2024, were $7.3 billion, reflecting a 4.7% increase from $7.0 billion at the end of 2023. Total loans, net of deferred fees, rose to $5.9 billion, an increase of $272.3 million (4.8%) from the previous period. The growth in loans was primarily driven by a $315.1 million increase in commercial real estate loans, although multi-family loans decreased by $123.4 million.

Total deposits increased by $532.6 million (9.3%) to $6.3 billion, with non-interest-bearing demand deposits comprising 28.4% of total deposits, down from 32.0% at the end of 2023. The bank's cash and cash equivalents also rose to $318.5 million, up from $269.5 million.

The bank's capital ratios improved, with the common equity tier 1 ratio at 11.9% as of September 30, 2024, compared to 11.5% at the end of 2023. The allowance for credit losses increased to $62.5 million, up from $58.0 million, reflecting a proactive approach to managing credit risk.

In terms of strategic developments, the bank has been focusing on enhancing its digital capabilities, which contributed to increased technology costs. Additionally, the bank is managing its interest rate risk through prudent balance sheet structuring and the use of derivative contracts.

Overall, while Metropolitan Bank Holding Corp. experienced growth in certain areas, the increase in non-interest expenses and regulatory reserves significantly impacted profitability during the reported periods.