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Metropolitan Bank Holding (MCB) Q3 2026 Earnings Report
MCB Q3 2026 EPS Results
- Actual EPS
- $2.58
- Consensus EPS
- $2.38
- Beat/Miss
- Beat by +$0.20
- One Year Ago EPS
- $0.67
MCB Q3 2026 Revenue Results
- Actual Revenue
- $150.14M
- Expected Revenue
- $97.05M
- Beat/Miss
- Beat by +$53.09M
- YoY Revenue Growth
- +11.61%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/20/2026
- Time
- After Close
- Conference Call
- Tuesday, October 20, 2026
MCB Upcoming Earnings
Metropolitan Bank Holding's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MCB Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported strong earnings, loan and deposit growth, improving credit performance, lower expenses, margin expansion, a dividend increase, and progress across AI, payments, branch expansion, tax credits, and share repurchases. The principal challenges were expected fourth-quarter NIM pressure, rate sensitivity, higher deposit-related fees, potential moderation in EB-5 deposit growth, and timing uncertainty for one gaming operator.
Company Guidance
Management expects $1 billion in loan growth for the year, with loan growth very close to $1 billion, deposit gathering to exceed loan growth, and $400 million of short-term investments available to fund Q4 growth; assuming a single hike in December, fourth-quarter NIM is forecast at approximately 4.15%-4.20%, while more than 20% net interest income growth is forecast for the full year, deposit-related fees are estimated to be about 25% higher than the Q3 result, and the effective beta within the current forecast model for 2027 is 65%, or probably closer to 75% excluding $1 billion worth of swaps; seasonal municipal deposits are expected to flow back in this quarter, two gaming operators will be in testing in the next 30 to 45 days with the platform hopefully live in the first quarter of next year, fee income is expected to receive a meaningful uplift beginning in the back half of 2027, and management is hopeful that 2027 expense growth will be lower year-over-year.
- Strong Third-Quarter Earnings and Margin ExpansionDiluted earnings per share were $2.58. Net interest margin expanded to 4.36%, while net interest income increased nearly 8% from the prior quarter and more than 25% from a year ago, driven by quality loan growth and lower funding costs.
- Balance Sheet Growth with Strong Credit and CapitalLoans reached $7.5 billion, up 11% year-to-date, and deposits reached $8.3 billion, up nearly 13% since year-end. The bank maintained disciplined underwriting, strong liquidity, robust capital levels, non-performing loans below 1% of total loans, and capital ratios well above regulatory requirements.
- Quarterly Dividend IncreaseThe board approved a 14% increase in the quarterly dividend to $0.40 per share, reflecting confidence in the company's performance, earnings trajectory, and long-term outlook.
- Strong Profitability and Expense ManagementThe company reported a low teens ROIC, a 4.36% net interest margin, and an efficiency ratio below 50%. Operating expenses were described as well managed, and the company realized a benefit from an investment tax credit for the first time.
- Loan Growth Remains on TrackThird-quarter loan growth was approximately $205 million, or 2.8%, bringing year-to-date growth to approximately $724 million, or 10.6%. Management said the pace remained aligned with its guidance of $1 billion in loan growth for the year.
- Selective Loan Origination and Robust PipelineThe bank originated almost $1 billion of loans during the quarter while payoffs, paydowns, and prepayments totaled almost $800 million. Signed term sheets totaled about $700 million, with another $600 million out for signature or under review, and pipeline pricing was approximately 7.03%. Management emphasized that it was not pursuing deals that failed to meet its pricing and underwriting standards.
- Excess Cash Invested in Short-Term SecuritiesThe securities portfolio grew primarily through the purchase of $400 million in short-term investments, including a laddered portfolio of T-bills funded with excess cash generated as deposit growth outpaced loan growth.
- Broad Deposit Growth and Funding MomentumQuarter-over-quarter deposits increased by approximately $589 million. Non-interest-bearing deposits rose by about $200 million, or more than 12%, while interest-bearing deposits increased by about $388 million, or more than 6%. EB-5 drove approximately 75% of the increase, while HOA, trustee, and retail verticals were also solidly positive.
- Lower Deposit Costs and Continued Deposit-Funded GrowthThe overall cost of deposits was 2.49%, an 8-basis-point decline from the prior period, primarily due to product mix. Management said the outlook for continued deposit growth in existing verticals remained strong and that its intent to fund all 2026 and future loan growth with deposits was unchanged.
- Interest Income and Top-Line GrowthThird-quarter interest income increased approximately $6.3 million, or 4.4%, from the prior quarter, while interest expense declined approximately $900,000, or nearly 2%. These movements produced unannualized top-line growth of $7.2 million, or 7.9%. Management forecast more than 20% net interest income growth for the full year.
- Improving Credit PerformanceThird-quarter charge-offs were 18 basis points. Management said credit performance had begun reverting toward its long-term level, expressed comfort with reserves for performing and non-performing credits, and said it detected no emerging systemic issues in the loan book.
- Expected Recoveries from Legacy CreditsManagement expects some recoveries in the fourth quarter from legacy loans that have been restructured or progressed through the legal process, including matters involving summary judgment or foreclosure. Remaining balances are expected to amortize under settlement agreements.
- Non-Interest Income GrowthThird-quarter non-interest income increased by approximately $400,000, or 15%, primarily as a result of deposit growth.
- Lower Non-Interest ExpenseThird-quarter non-interest expense was $49.5 million, down $2.3 million, or 4.5%, from the prior quarter. The efficiency ratio remained below 50% as management continued to diligently manage operating expenses.
- AI and Branch Network InvestmentsThe company is continuing to invest in AI and expand its branch network. The AI team currently has 6 full-time employees with at least one additional hire planned. Western U.S. initiatives and branches in Florida and New Jersey are fully operational, while branches in North Carolina, Connecticut, and Flushing, Queens are planned for later this year or early 2027.
- Payments, AI, and Fee-Income OpportunitiesManagement expects enterprise-wide AI initiatives and the payments platform rollout to become meaningful drivers of future earnings and efficiency. New initiatives related to payments, HUD, and other activities are expected to produce a meaningful uplift in fee income beginning in the back half of 2027. The re-engagement of the payments platform is expected to be accretive to earnings, diversify revenue streams, and enhance deposit liquidity over time.
- Gaming Payments Platform ProgressTwo gaming operators have signed up and are expected to enter testing within the next 30 to 45 days, with the goal of being live in the first quarter of next year. A third operator has agreed to proceed, with its timing appearing more likely to be in the first quarter.
- Energy Tax Credit ProgramThe company made an initial investment in energy tax credits during the quarter. Management expects the initiative to become a programmatic feature of reported earnings and said additional tax credit investments can manage the effective tax rate lower through time.
- Share Repurchases and Remaining AuthorizationDuring September, MCB repurchased approximately $10 million of shares at a weighted average price of about 109% of estimated 2026 year-end book value. The company had $40 million of remaining buyback authorization, and management expects to execute additional purchases.
- Readiness for $10 Billion Asset ScaleManagement said the bank is well positioned from an expense-structure perspective to operate as a $10 billion bank and that the anticipated $10 billion-related expenses are already reflected in the current run rate.
- Balance Sheet Funding PlanManagement expects to remain close to $1 billion in loan growth for the year, expects seasonal municipal deposits to flow back in the fourth quarter, and has $400 million of short-term investments available to roll off to fund deposit growth. It expects deposit gathering to exceed loan growth as its deposit verticals continue to develop.
- Relationship-Driven Geographic Lending StrategyOutside New York and Florida, the company will continue considering lending opportunities in emerging markets, primarily when driven by existing client relationships and opportunities that can be understood and managed within its credit discipline.
MCB Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2026 (Q4) | 2.54- | 2.77 | ― | ― |
| Oct 20, 2026 | 2026 (Q3) | 2.382.58 | 0.67 | 285.07% (+1.91) | |
| Jul 21, 2026 | 2026 (Q2) | 2.291.54 | 1.76 | -12.50% (-0.22) | |
| Apr 21, 2026 | 2026 (Q1) | 2.312.92 | 1.45 | 101.38% (+1.47) | |
| Jan 20, 2026 | 2025 (Q4) | 2.202.77 | 1.88 | 47.34% (+0.89) | |
| Oct 23, 2025 | 2025 (Q3) | 2.080.67 | 1.86 | -63.98% (-1.19) | |
| Jul 17, 2025 | 2025 (Q2) | 1.731.76 | 1.5 | 17.33% (+0.26) | |
| Apr 21, 2025 | 2025 (Q1) | 1.531.45 | 1.46 | -0.68% (-0.01) | |
| Jan 23, 2025 | 2024 (Q4) | 1.491.88 | 1.28 | 46.88% (+0.60) | |
| Oct 17, 2024 | 2024 (Q3) | 1.551.86 | 1.71 | 8.77% (+0.15) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
