third quarter of 2026
Filed Oct 20, 2026Metropolitan Bank Holding Corp. Reports Third Quarter 2026 Results Net Interest Margin Expansion to 4.36% Diluted EPS of $2.58
Third-quarter net income rose to $32.4 million from $19.2 million in the prior linked quarter and $7.1 million in the prior-year period, supported by net interest income of $97.6 million, net interest margin of 4.36%, lower non-interest expense sequentially, and loan and deposit growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $100.6M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $97.6M | 7.9% | 26.3% |
| Net interest margin, three months ended September 30, 2026other | 4.36% | increase of 28 basis points | increase of 48 basis points |
| Total cost of funds, three months ended September 30, 2026other | 250 basis points | – | – |
| Total non-interest income, three months ended September 30, 2026GAAP | $3M | increase of $392,000 | increase of $427,000 |
| Total non-interest expense, three months ended September 30, 2026GAAP | $49.5M | decrease of $2.3 million | increase of $3.7 million |
| Provision for credit losses, three months ended September 30, 2026GAAP | $5.09M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 29.5% | – | – |
| Net income, three months ended September 30, 2026GAAP | $32.4M | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $2.58 | – | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $2.62 | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.43% | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 13.1% | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 13.2% | – | – |
| Efficiency ratio, three months ended September 30, 2026other | 49.2% | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $282.1M | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $274.0M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $83.09M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $6.91 | – | – |
| Net interest margin, nine months ended September 30, 2026other | 4.17% | – | – |
| Total loans, net of deferred fees and unamortized costs, at September 30, 2026GAAP | $7.5B | 2.8% | 11.1% |
| Total deposits at September 30, 2026GAAP | $8.3B | 7.6% | 17.6% |
| Total securities at September 30, 2026GAAP | $1.5B | 36.7% | 59.2% |
| Total assets at September 30, 2026GAAP | $9.47B | – | – |
| Allowance for credit losses at September 30, 2026GAAP | $64.2M | increase of $2.2 million | decrease of $30.0 million |
| Non-performing loans to total loans at September 30, 2026other | 0.95% | – | – |
| Total risk-based capital ratio, Metropolitan Bank Holding Corp., at September 30, 2026other | 13.9% | – | – |
| Total risk-based capital ratio, Metropolitan Commercial Bank, at September 30, 2026other | 13.5% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- On October 19, 2026, the board of directors declared a quarterly cash dividend of $0.40 per share on the Company’s common stock.
What drove it
- Net interest income increased from the prior linked quarter primarily due to higher average loan balances, to a lesser extent higher securities balances, lower average interest-bearing deposits and lower total cost of funds, partially offset by lower overnight deposits.
- Net interest margin expansion reflected increased yields on average loans and securities, elevated prepayment penalties and deferred fee recognition from increased loan payoffs, and lower cost of funds.
- Sequential loan growth was driven primarily by a $164.5 million increase in CRE loans, a $24.3 million increase in C&I loans and a $19.7 million increase in construction loans.
- Deposit growth was primarily driven by the Bank’s EB-5, Home Owners Association banking and retail deposit verticals.
- Sequential non-interest expense declined primarily because of lower other operating expenses, professional fees and technology costs, partially offset by higher deposit related program fees.
Concerns
- The ratio of non-performing loans to total loans increased to 0.95% at September 30, 2026 from 0.91% at June 30, 2026, primarily attributable to a single CRE loan being placed on non-accrual status.
- Deposit related program fees were $ 8,635 (dollars in thousands) in the third quarter of 2026, compared with $ 6,892 (dollars in thousands) in the prior linked quarter and $ 6,800 (dollars in thousands) in the prior-year period.
- Total non-owner-occupied CRE loans were 301.1% of total risk-based capital at September 30, 2026.
What to watch
- Net interest margin, which was 4.36% in the third quarter of 2026 versus 4.08% in the prior linked quarter.
- Loan and deposit growth, particularly the CRE, EB-5, Home Owners Association banking and retail deposit verticals cited by the Company.
- Credit performance following the placement of a single CRE loan on non-accrual status.
- The allowance for credit losses, which was $64.2 million at September 30, 2026.
- Deposit related program fees and other non-interest expense.
Balance sheet and cash flow
- Total cash and cash equivalents were $247.0 million at September 30, 2026.
- Cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $4.2 billion at September 30, 2026, which represented 185% of estimated uninsured deposits.
- Trust preferred securities were $ 20,620 (in thousands) at September 30, 2026.
- Secured and other borrowings were $ 15,914 (in thousands) at September 30, 2026.
- Total stockholders’ equity was $ 974,680 (in thousands) at September 30, 2026.
Analysis
Metropolitan Bank Holding reported a strong third quarter, with net income of $32.4 million and diluted earnings per common share of $2.58, compared with $19.2 million and $1.54 in the prior linked quarter and $7.1 million and $0.67 in the prior-year period. Total revenues were $ 100,563 (dollars in thousands), while return on average assets was 1.43%, return on average equity was 13.1%, and the efficiency ratio was 49.2%.
Net interest income was $97.6 million, up $7.2 million from the prior linked quarter and $20.3 million from the prior-year period. Net interest margin expanded to 4.36% from 4.08% and 3.88%, respectively. Management attributed the expansion to higher yields on average loans and securities, elevated prepayment penalties and deferred fee recognition from loan payoffs, and lower funding costs. Total cost of funds was 250 basis points, compared with 257 basis points in the prior linked quarter and 305 basis points in the prior-year period.
Balance-sheet growth was led by loans and deposits. Total loans were $7.5 billion, up $205.0 million from June 30, 2026 and $752.2 million from September 30, 2025. Total deposits were $8.3 billion, up $589.1 million sequentially and $1.2 billion from the prior-year period. The Company also increased total securities to $1.5 billion through deployment of excess cash into short-term securities. Liquidity capacity was $4.2 billion, representing 185% of estimated uninsured deposits.
Expense performance improved sequentially, as non-interest expense declined $2.3 million to $49.5 million, although it was $3.7 million above the prior-year period. The provision for credit losses was $ 5,095 (dollars in thousands), below $ 13,325 (dollars in thousands) in the prior linked quarter and $ 23,862 (dollars in thousands) in the prior-year period. Credit quality requires attention because non-performing loans to total loans rose to 0.95% from 0.91% sequentially following a single CRE loan being placed on non-accrual status.
Capital and shareholder returns remained central to the release. The Company and Bank reported total risk-based capital ratios of 13.9% and 13.5%, respectively, and the Bank remained well capitalized under applicable regulatory guidelines. The board declared a quarterly cash dividend of $0.40 per share on October 19, 2026. The filing did not provide forward financial guidance.
Management, verbatim
Our third-quarter performance reflects strong execution across the franchise, with disciplined loan and deposit growth, lower funding costs and continued net interest margin expansion driving meaningful earnings growth. We remain well capitalized, with robust liquidity, and the increase in our quarterly dividend reflects our confidence in the Company’s performance and long-term outlook.
Mark DeFazio, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-release outlook for comparison
- Segment revenue disclosure
- Gross margin
- Operating income
- Operating cash flow
- Free cash flow
- Share repurchase amount or activity
- CFO commentary
- Non-GAAP earnings per share
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.