Metropolitan Bank (NYSE:MCB) Shares Gap Down on Disappointing Earnings

Metropolitan Bank Holding Corp. (NYSE:MCB)’s share price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $99.07, but opened at $87.30. Metropolitan Bank shares last traded at $89.4520, with a volume of 70,193 shares trading hands.

The company reported $1.54 EPS for the quarter, missing the consensus estimate of $2.30 by ($0.76). Metropolitan Bank had a net margin of 14.31% and a return on equity of 10.72%. The company had revenue of $93.01 million for the quarter, compared to the consensus estimate of $93.39 million.

Metropolitan Bank Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st will be issued a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $1.40 annualized dividend and a yield of 1.6%. This is a positive change from Metropolitan Bank’s previous quarterly dividend of $0.25. Metropolitan Bank’s dividend payout ratio (DPR) is currently 12.32%.

Trending Headlines about Metropolitan Bank

Here are the key news stories impacting Metropolitan Bank this week:

• Positive Sentiment: Metropolitan Bank raised its quarterly dividend to $0.35 per share from $0.25, a 40% increase, which signals confidence in capital strength and may appeal to income-focused investors.
• Positive Sentiment: Management said it is targeting net interest margin of about 4.20% in 2026 and highlighted growth initiatives in AI and payments, suggesting longer-term earnings opportunities. Article Title
• Neutral Sentiment: The company reported second-quarter net income of $19.2 million and EPS of $1.54, with revenue of $93.01 million. Those figures were broadly solid on a year-over-year basis, but not enough to offset investor concerns. Article Title
• Negative Sentiment: The main pressure on the stock came from the earnings miss: EPS came in below expectations, and investors focused on higher provisioning and non-interest expenses, which raised concerns about future profitability. Article Title

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods boosted their target price on Metropolitan Bank from $105.00 to $109.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Wall Street Zen upgraded Metropolitan Bank from a “hold” rating to a “buy” rating in a report on Saturday, April 4th. UBS Group started coverage on Metropolitan Bank in a report on Thursday, April 16th. They issued a “neutral” rating and a $97.00 price target on the stock. Finally, Weiss Ratings upgraded Metropolitan Bank from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $103.00.

Insider Activity at Metropolitan Bank

In other news, Director Robert C. Patent sold 10,000 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $96.41, for a total value of $964,100.00. Following the transaction, the director owned 86,185 shares of the company’s stock, valued at $8,309,095.85. This represents a 10.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Nick Rosenberg sold 1,807 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $100.42, for a total value of $181,458.94. Following the completion of the transaction, the executive vice president owned 22,202 shares in the company, valued at $2,229,524.84. This represents a 7.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 19,897 shares of company stock worth $1,874,352 over the last ninety days. Company insiders own 5.50% of the company’s stock.

Hedge Funds Weigh In On Metropolitan Bank

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCB. Adage Capital Partners GP L.L.C. grew its holdings in Metropolitan Bank by 114.8% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 559,479 shares of the company’s stock valued at $42,722,000 after purchasing an additional 299,061 shares during the period. Wellington Management Group LLP increased its stake in Metropolitan Bank by 66.6% in the fourth quarter. Wellington Management Group LLP now owns 592,799 shares of the company’s stock valued at $45,266,000 after purchasing an additional 236,946 shares in the last quarter. Bank of America Corp DE raised its holdings in Metropolitan Bank by 611.9% in the first quarter. Bank of America Corp DE now owns 141,613 shares of the company’s stock worth $11,795,000 after purchasing an additional 121,721 shares during the period. JPMorgan Chase & Co. raised its holdings in Metropolitan Bank by 53.7% in the third quarter. JPMorgan Chase & Co. now owns 178,363 shares of the company’s stock worth $13,345,000 after purchasing an additional 62,327 shares during the period. Finally, UBS Group AG boosted its position in shares of Metropolitan Bank by 363.5% during the fourth quarter. UBS Group AG now owns 64,832 shares of the company’s stock worth $4,951,000 after purchasing an additional 50,844 shares in the last quarter. Institutional investors own 79.83% of the company’s stock.

Metropolitan Bank Stock Down 8.9%

The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.02. The firm’s fifty day moving average price is $94.36 and its 200-day moving average price is $89.32. The company has a market cap of $1.12 billion, a price-to-earnings ratio of 11.42 and a beta of 1.00.

Metropolitan Bank Company Profile

Metropolitan Bank (NYSE:MCB), through its principal subsidiary Metropolitan Commercial Bank, operates as a New York–based regional financial institution providing a range of commercial and consumer banking services. The company offers deposit products including checking, savings and money market accounts, as well as business and personal certificates of deposit. On the lending side, Metropolitan Bank extends commercial real estate financing, equipment loans, working capital lines of credit and consumer installment loans tailored to the needs of small- and medium-sized enterprises and individual customers.

In addition to traditional deposit and lending services, Metropolitan Bank provides specialized treasury and cash-management solutions, foreign exchange services and letters of credit for both domestic businesses and multinational clients.