Metropolitan Bank Holding in New York reported lower quarterly profit that reflected costs tied to an out-of-market commercial real estate loan.
The $8.2 billion-asset company said in a press release that its third-quarter profit fell by 42% from a year earlier, to $7.1 million. The quarter included a $23.9 million loan-loss provision that included $18.7 million for the CRE multifamily loan relationship.
The CRE relationship was the reason why the company’s ratio of nonperforming loans rose to 1.20% from 0.53% a year earlier.
“This quarter we took prudent reserves against a CRE multifamily loan relationship,” Mark DeFazio, the company’s president and CEO, said in the release. “I am cautiously optimistic that we will complete the workout of one or more of these loans before year-end or during the first quarter of next year.”