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1. Company Snapshot

1.a. Company Description

Metropolitan Bank Holding Corp.operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area.The company offers checking, savings, term deposit, and money market accounts, as well as certificates of deposit.


It also provides lending products, including commercial real estate, construction, multi-family, and one-to four-family real estate loans; commercial and industrial loans; consumer loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance and letters of credit; and term loans.In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit card services.It operates six banking centers in Manhattan, Brooklyn, Great Neck, and Long Island.


Metropolitan Bank Holding Corp.was founded in 1999 and is headquartered in New York, New York.

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1.b. Last Insights on MCB

The recent 3-month performance of Metropolitan Bank Holding Corp. was negatively impacted by the absence of a share repurchase plan in the past two years, which was a notable absence in the industry. However, the company has since announced a $50 million stock repurchase program, which is a positive development for shareholders. The company's solid financials, including stable margins and prudent loan origination, were highlighted in a recent report, but the stock is currently in a range trade.

1.c. Company Highlights

2. Metropolitan Commercial Bank's Q3 Earnings: A Closer Look

Metropolitan Commercial Bank reported a diluted EPS of $0.67 for the third quarter, significantly lower than the normalized EPS of approximately $1.95. The bank's net interest margin increased 5 basis points to 3.88%, driven by a decline in cost of funds. The bank's loan growth was approximately $170 million or 2.6%, with year-to-date growth exceeding $750 million or 12%. Total loan originations year-to-date were $1.4 billion.

Publication Date: Oct -27

📋 Highlights
  • Loan Growth Momentum:: Q3 loan growth of $170M (2.6%) with YTD growth exceeding $750M (12%), driven by $1.4B in total year-to-date originations.
  • Net Interest Margin Expansion:: Increased 5 bps to 3.88%, with expectations of further modest growth in Q4 due to lower cost of funds and loan repricing.
  • EPS Performance:: Q3 diluted EPS at $0.67, while normalized EPS would have been $1.95, reflecting noninterest expenses up $2.7M to $45.8M vs. prior quarter.
  • CRE Loan Restructuring:: Nonperforming multi-family loans in Champagne, IL, and Ohio are being restructured with a specific reserve, but no broader CRE concerns noted.
  • Funding & Margin Outlook:: Base case for 2026 net interest margin approaching 4% due to liability sensitivity and anticipated Fed rate cuts, with Q4 and 2025 growth momentum intact.

Loan Growth and Credit Quality

The bank's loan growth was driven by its strategic funding initiatives, including maintaining and developing existing deposit verticals and identifying new verticals. The bank is expanding its presence in new markets, including Lakewood, New Jersey, Miami, and West Palm Beach, Florida. Mark DeFazio stated that the bank is working through a restructuring with a client regarding a CRE multi-family relationship, but this is not expected to impact their go-forward lending.

Net Interest Margin and Funding

The bank expects modest further expansion of the net interest margin in the fourth quarter due to a decline in cost of funds and continued repricing of the loan book. Daniel Dougherty stated that with 1 cut this quarter and 3 next year, the net interest margin could get very close to or above 4%. The bank is working to replace GPG and explore other deposit opportunities to drive lower costs of funds and control margin expansion.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio not directly available, we can look at the Price-to-Book Ratio (P/B) of 0.35. Analysts estimate next year's revenue growth at 11.9%. The actual EPS came out at $0.67 relative to estimates at $1.95. The bank's ROE is 6.33%, and the Dividend Yield is 0.21%. The current valuation metrics suggest that the market is pricing in a certain level of growth, and the bank's guidance and outlook will be crucial in determining whether the stock can continue to perform.

3. NewsRoom

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Creative Planning Buys 8,271 Shares of Metropolitan Bank Holding Corp. $MCB

Dec -01

Source: defenseworld.net

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Acadian Asset Management LLC Sells 10,302 Shares of Metropolitan Bank Holding Corp. $MCB

Nov -14

Source: defenseworld.net

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MCB Real Estate Proposes to Acquire Whitestone REIT for $15.20 Per Share

Nov -04

Source: prnewswire.com

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Metropolitan Commercial Bank Names Emma Krentz as AI Scientist to Advance Technological Strategy

Oct -27

Source: businesswire.com

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Metropolitan Bank (MCB) Earnings Transcript

Oct -24

Source: fool.com

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Metropolitan Bank Holding Corp. (MCB) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

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Metropolitan Bank Holding Corp. (MCB) Misses Q3 Earnings Estimates

Oct -23

Source: zacks.com

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Metropolitan Bank Holding Corp. Reports Third Quarter 2025 Results

Oct -23

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11.0%

Metropolitan Bank Holding Corp.'s 11.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic partnerships. Additionally, investments in digital transformation and cost-cutting initiatives have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Commercial Banking

Metropolitan Bank Holding Corp.'s commercial banking segment provides a range of financial products and services to small and medium-sized businesses, including cash management, lending, and deposit services.

Consumer Banking

The consumer banking segment offers a variety of personal banking products and services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

The mortgage banking segment provides residential mortgage loans to individuals and families, as well as mortgage servicing and secondary marketing services.

Wealth Management

The wealth management segment offers investment and wealth management services, including brokerage, trust, and investment management services.

Treasury Management

The treasury management segment provides cash management and treasury services to businesses, including account management, payment processing, and risk management.

8. Metropolitan Bank Holding Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Metropolitan Bank Holding Corp. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers and the high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the moderate concentration of suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry and the attractiveness of the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition among existing players and the high stakes of the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.47%
Debt Cost 9.65%
Equity Weight 53.53%
Equity Cost 9.65%
WACC 9.65%
Leverage 86.83%

11. Quality Control: Metropolitan Bank Holding Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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C&F Financial

A-Score: 6.3/10

Value: 7.7

Growth: 4.7

Quality: 6.1

Yield: 6.0

Momentum: 7.5

Volatility: 5.7

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Metropolitan Bank

A-Score: 5.8/10

Value: 7.6

Growth: 8.0

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

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Alerus Financial

A-Score: 5.5/10

Value: 5.9

Growth: 3.0

Quality: 5.8

Yield: 7.0

Momentum: 3.5

Volatility: 7.7

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First Northwest Bancorp

A-Score: 5.2/10

Value: 9.4

Growth: 5.6

Quality: 4.0

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

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First Internet

A-Score: 4.4/10

Value: 9.6

Growth: 6.7

Quality: 3.7

Yield: 2.0

Momentum: 0.5

Volatility: 3.7

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Kentucky First Federal

A-Score: 4.3/10

Value: 4.8

Growth: 1.9

Quality: 4.1

Yield: 4.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.51$

Current Price

77.51$

Potential

-0.00%

Expected Cash-Flows