Metropolitan Bank Holding Corp. declared a quarterly cash dividend of $0.40 per share on its common stock on October 19, 2026, following third-quarter 2026 results that showed diluted earnings per share of $2.58. The move comes as the company reports net interest margin expansion and significant growth in loans and deposits, raising questions about the sustainability of its capital deployment strategy.
The New York-based holding company, listed on the NYSE under the ticker MCB, reported net income of $32.4 million for the third quarter of 2026. This figure compares to $19.2 million in the second quarter of 2026 and $7.1 million in the third quarter of 2025. Diluted earnings per common share were $2.58 for the current quarter, up from $1.54 in the prior linked quarter and $0.67 in the prior year period.
Net interest income reached $97.6 million in the third quarter of 2026, rising $7.2 million, or 7.9%, from the previous quarter. The company attributes this growth primarily to higher average loan balances and a decrease in the total cost of funds. The net interest margin expanded to 4.36% for the quarter, a 28 basis point increase from the prior linked quarter and a 48 basis point increase from the prior year period.
Mark DeFazio, President and Chief Executive Officer, stated that the third-quarter performance reflects strong execution across the franchise with disciplined loan and deposit growth. He noted that lower funding costs and continued net interest margin expansion are driving meaningful earnings growth, adding that the dividend increase reflects confidence in the company's long-term outlook.
Balance sheet metrics show total loans of $7.5 billion at September 30, 2026, an increase of $205.0 million, or 2.8%, from June 30, 2026. Total deposits reached $8.3 billion at September 30, 2026, up $589.1 million, or 7.6%, from June 30, 2026. The company reported that total securities increased by $399.5 million, or 36.7%, from June 30, 2026, due primarily to the deployment of excess cash into short-term securities.
Liquidity positions remain strong, with cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaling $4.2 billion at September 30, 2026. This amount represented 185% of estimated uninsured deposits. The Bank remains "well capitalized" under all applicable regulatory guidelines, with total risk-based capital ratios of 13.5% for the Bank and 13.9% for the Company.
Total non-owner-occupied commercial real estate loans stood at 301.1% of total risk-based capital at September 30, 2026. This ratio declined from 376.3% at September 30, 2025, a change the company attributes primarily to an increase in total capital resulting from the completion of a follow-on public equity offering in the first quarter of 2026.