Highlights

  • Metropolitan Bank Holding shows 66.25% basic EPS growth, P/E of 10.06 and PEG of 0.00.
  • Third quarter 2026 net income was $32.4 million, or $2.58 per diluted share.
  • Net interest margin was 4.36%, against 4.08% in the prior linked quarter.
  • The board declared a $0.40 quarterly cash dividend on October 19, 2026.

Growth, P/E and PEG sit side by side at Metropolitan Bank Holding (NYSE:MCB), an undervalued growth stock: basic earnings per share grew 66.25% over one year, the trailing twelve-month P/E ratio is 10.06 and the PEG ratio, on an expected basis, is 0.00, with shares trading at USD 96.15 on October 28, 2026, down 0.58%. In its latest disclosures, the New York commercial bank holding company completed a follow-on public equity offering of common stock in the first quarter of 2026, declared a quarterly cash dividend of $0.40 per share on October 19, and reported third quarter 2026 net income of $32.4 million, or $2.58 per diluted common share, on October 20.

Metropolitan Bank Holding Corp. is headquartered at 99 Park Avenue in New York City and is incorporated in New York. It is the holding company for Metropolitan Commercial Bank, a New York State-chartered commercial bank and member of the Federal Reserve System that has operated since 1999. The bank serves businesses, institutions and individuals, with expertise in real estate, property management, legal services, healthcare, government and EB-5 financial solutions, with banking centers in New York City, Great Neck, Lakewood, New Jersey, and South Florida.

Growth: Third Quarter Earnings, Net Interest Income and Margin

Net income was $32.4 million, or $2.58 per diluted common share, in the third quarter of 2026, against $19.2 million, or $1.54, in the second quarter of 2026 and $7.1 million, or $0.67, in the third quarter of 2025.

Net interest income was $97.6 million, an increase of $7.2 million, or 7.9%, from the prior linked quarter and an increase of $20.3 million, or 26.3%, from the prior year period. The net interest margin was 4.36%, against 4.08% and 3.88% in those periods. The company attributed the margin change largely to higher yields on loans and securities and a lower cost of funds.

Total loans were $7.5 billion at September 30, 2026, up 10.6% from December 31, 2025. Total deposits were $8.3 billion, up 12.8% from December 31, 2025, with the company citing its EB-5, Home Owners Association banking and retail deposit verticals.

Valuation: P/E of 10.06, PEG of 0.00 and Book Value

The P/E ratio of 10.06 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 is on an expected basis. Annualized return on average equity was 13.1% for the third quarter against 8.0% in the second quarter, and annualized return on average tangible common equity, a non-GAAP measure, was 13.2%. Book value per share was $79.34 at September 30, 2026 against $70.51 a year earlier.

On the October 21 call, Chief Financial Officer Daniel Dougherty said the company repurchased shares in September, that buying shares above book value is new to the company, and that he is committed to further purchases for as long as he considers the shares to be on sale.

Capital Returns and Balance Sheet

The Company and Bank reported total risk-based capital ratios of 13.9% and 13.5%, respectively, at September 30, 2026, which the company said are well above regulatory minimums. The Bank remains well capitalized under applicable regulatory guidelines. Non-owner-occupied commercial real estate loans were 301.1% of total risk-based capital against 304.1% at June 30, 2026 and 376.3% at September 30, 2025.

Cash on deposit with the Federal Reserve Bank of New York and available secured funding capacity totaled $4.2 billion, or 185% of estimated uninsured deposits. Total cash and cash equivalents were $247.0 million. The board declared the $0.40 quarterly cash dividend on October 19, 2026.

Disclosed Risks and Outlook

The ratio of non-performing loans to total loans was 0.95% at September 30, 2026 against 0.91% at June 30, 2026 and 1.20% a year earlier; the company said the sequential increase was primarily attributable to a single commercial real estate loan placed on non-accrual status. The allowance for credit losses was $64.2 million, up $2.2 million from June 30, 2026 and down $30.0 million from September 30, 2025. Non-interest expense was $49.5 million, up $3.7 million from the prior year period.

On the call, management said the EB-5 vertical contributed about 75% of third quarter deposit growth and that it expects the pace to decelerate. For the fourth quarter of 2026, management expects a net interest margin of approximately 4.15%-4.20%, assuming one Federal Reserve rate increase in December. It forecasts more than 20% net interest income growth for the full year, loan growth close to $1 billion for the year, and a payments platform going live in the first quarter of 2027.