Metropolitan Bank Holding Corp. Reports Third Quarter 2026 Results

Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $32.4 million, or $2.58 per diluted common share, for the third quarter of 2026 compared to $19.2 million, or $1.54 per diluted common share, for the second quarter of 2026 and $7.1 million, or $0.67 per diluted common share, for the third quarter of 2025.

Mark DeFazio, President and Chief Executive Officer, commented,

“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.”

Balance Sheet

Total loans, net of deferred fees and unamortized costs, were $7.5 billion at September 30, 2026, an increase of $205.0 million, or 2.8%, from June 30, 2026, and an increase of $752.2 million, or 11.1%, from September 30, 2025. The increase in total loans from June 30, 2026 was due primarily to an increase of $164.5 million in commercial real estate (“CRE”) loans (including owner-occupied), an increase of $24.3 million in commercial and industrial (“C&I”) loans and an increase of $19.7 million in construction loans. The increase in total loans from September 30, 2025 was due primarily to an increase of $859.3 million in CRE loans (including owner-occupied), partially offset by a decrease of $97.3 million in C&I loans and a decrease of $8.0 million in construction loans.

Total securities were $1.5 billion at September 30, 2026, an increase of $399.5 million, or 36.7%, from June 30, 2026, and an increase of $553.5 million, or 59.2%, from September 30, 2025. The increase in securities from June 30, 2026 was due primarily to the deployment of excess cash into short-term securities.

Total deposits were $8.3 billion at September 30, 2026, an increase of $589.1 million, or 7.6%, from June 30, 2026, and an increase of $1.2 billion, or 17.6%, from September 30, 2025. The increase in deposits from June 30, 2026 and September 30, 2025 was primarily driven by the Bank’s EB-5 (Immigrant Investor Program), Home Owners Association banking and retail deposit verticals.

The Bank’s liquidity position remains robust. At September 30, 2026, cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $4.2 billion, which represented 185% of our estimated uninsured deposits. Total cash and cash equivalents were $247.0 million at September 30, 2026.

The Company and Bank have total risk-based capital ratios well above regulatory minimums. The Bank is “well capitalized” under all applicable regulatory guidelines. Total non-owner-occupied CRE loans were 301.1% of total risk-based capital at September 30, 2026, compared to 304.1% and 376.3% at June 30, 2026 and September 30, 2025, respectively. The CRE loan concentration ratio declined from September 30, 2025 primarily owing to the increase in the Bank’s total capital as a result of the completion of the Company’s follow-on public equity offering of common stock in the first quarter of 2026.

Income Statement

Financial Highlights

Net Interest Income

Net interest income for the third quarter of 2026 was $97.6 million compared to $90.4 million for the prior linked quarter and $77.3 million for the prior year period. The $7.2 million increase from the prior linked quarter was primarily due to an increase in the average balance of loans and, to a lesser extent, securities, a decrease in the average balance of interest-bearing deposits and a decrease in the total cost of funds, partially offset by a decrease in overnight deposits. The $20.3 million increase from the prior year period was primarily due to an increase in the average balance of loans and overnight deposits and a decrease in the cost of funds, partially offset by an increase in the average balance of interest-bearing deposits.

Net Interest Margin

Net interest margin for the third quarter of 2026 was 4.36% compared to 4.08% and 3.88% for the prior linked quarter and prior year period, respectively. The 28 basis point increase from the prior linked quarter and the 48 basis point increase from the prior year period were driven largely by an increase in yields on the average balance of loans and securities, in combination with elevated prepayment penalties and deferred fee recognition as a result of an increased level of loan payoffs, as well as a decrease in the cost of funds.

The total cost of funds for the third quarter of 2026 was 250 basis points compared to 257 basis points and 305 basis points for the prior linked quarter and prior year period, respectively. The decrease from the prior linked quarter primarily reflects improvements in the deposit mix. The decrease from the prior year period primarily reflects the decline in short-term interest rates.

Non-Interest Income

Non-interest income was $3.0 million for the third quarter of 2026, an increase of $392,000 from the prior linked quarter and an increase of $427,000 from the prior year period. The increase from both the prior linked quarter and prior year period was primarily due to an increase in service charges on deposit accounts, partially offset by an increase in the unrealized loss on equity securities.

Non-Interest Expense

Non-interest expense was $49.5 million for the third quarter of 2026, a decrease of $2.3 million from the prior linked quarter and an increase of $3.7 million from the prior year period. The $2.3 million decrease from the prior linked quarter was primarily due to a decrease of $1.8 million in other operating expenses, a $1.1 million decrease in professional fees and a $946,000 decrease in technology costs, partially offset by a $1.7 million increase in deposit related program fees.

The $3.7 million increase from the prior year period was due primarily to a $4.1 million increase in compensation and benefits and a $1.8 million increase in deposit related program fees, partially offset by a $1.5 million decrease in technology costs and a $1.1 million decrease in the Federal Deposit Insurance Corporation (“FDIC”) assessment.

Income Tax Expense

The effective tax rate for the third quarter of 2026 was 29.5% compared to 31.1% for the prior linked quarter and 30.1% for the prior year period. The decline in the effective tax rate reflects the Company’s initiation of an investment tax credit purchase program.

Asset Quality

The ratio of non-performing loans to total loans was 0.95% at September 30, 2026, compared to 0.91% at June 30, 2026 and 1.20% at September 30, 2025. The slight increase in the non-performing loan ratio from the prior linked quarter was primarily attributable to a single CRE loan being placed on non-accrual status. The decrease from the prior year period reflects the resolution and charge-off of a single CRE loan relationship and a single non-core C&I loan relationship.

The allowance for credit losses was $64.2 million at September 30, 2026, an increase of $2.2 million from June 30, 2026, and a decrease of $30.0 million from September 30, 2025. The increase from June 30, 2026 primarily reflects a modest increase in specific reserves and loan growth. The decrease from September 30, 2025 was primarily due to enhancements made to the Bank’s allowance for credit loss estimation process implemented in the first quarter of 2026, as well as the charge-off of the aforementioned previously reserved CRE loan relationship in the second quarter of 2026, partially offset by loan growth.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Wednesday, October 21, 2026, to discuss the results. To access the event by telephone, please dial 800-245-3047 (US), 203-518-9765 (INTL), and provide conference ID: MCBQ326 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 Commercial Bank (“MCB”) is a New York City–based, full-service commercial bank serving businesses, institutions, and individuals who value expertise, responsiveness, and long-term partnerships. Since 1999, MCB has built enduring client relationships, many spanning generations, by delivering consistent, relationship-driven banking.

The Bank provides a full suite of commercial, business, and personal banking solutions, with deep expertise in sectors including real estate, property management, legal services, healthcare, government, and global investors utilizing EB-5 financial solutions. MCB combines specialized capabilities with a highly personalized approach, offering integrated solutions such as title and escrow services, 1031 exchanges, and merchant acquiring.

MCB has received national recognition for its performance and innovation, including being named one of Newsweek’s Best Regional Banks in 2024 and 2025 and earning industry recognition for its lending performance and specialized commercial banking capabilities.

MCB operates full-service banking centers in Manhattan and Boro Park, Brooklyn, within New York City; Great Neck on Long Island; Lakewood, New Jersey; and in South Florida, including Miami, and West Palm Beach.

Metropolitan Commercial 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. The Bank’s parent company is Metropolitan Bank Holding Corp. (NYSE: MCB).

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, business, share repurchases under the share repurchase program, dividend payments and statements related to the completion of the public offering of common stock and the use of proceeds from the public offering of common stock. 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 or critical technology service providers; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company’s third-party service providers; 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, nonperforming loan resolutions 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)

Consolidated Statement of Income (unaudited)

Loan Production, Asset Quality & Regulatory Capital

Performance Measures

Interest Margin Analysis