Metropolitan Bank Holding Corp. acts as the parent organization for Metropolitan Commercial Bank, which provides a wide array of business, commercial, and ...
Metropolitan Bank Holding Corp. is a single-bank holding company whose principal operating subsidiary is Metropolitan Commercial Bank, commonly known as MCB. The institution was established in 1999 and is headquartered at 99 Park Avenue in New York City. Its business model is centered on relationship banking and the needs of ...Metropolitan Bank Holding Corp. is a single-bank holding company whose principal operating subsidiary is Metropolitan Commercial Bank, commonly known as MCB. The institution was established in 1999 and is headquartered at 99 Park Avenue in New York City. Its business model is centered on relationship banking and the needs of entrepreneurs, middle-market companies, real estate owners, professionals, small and midsized businesses, public-sector entities, and retail customers. The bank describes itself as an entrepreneurial and solutions-oriented institution that seeks to serve clients whose requirements may not be fully addressed by larger national banks.
MCB offers deposit products including checking accounts, savings accounts, money market accounts, certificates of deposit, and other term-deposit products. Its lending activities include commercial and industrial loans, commercial real estate financing, construction loans, multifamily property loans, owner-occupied real estate loans, and financing for one-to-four-family residential properties. The bank also provides working-capital lines, conventional term loans, acquisition and renovation financing, refinancing, and equity-extraction facilities. Trade-finance services, letters of credit, and cash-management solutions complement its lending and deposit operations.
Digital and transaction banking capabilities include online and mobile banking, automated clearing house services, remote deposit capture, debit cards, and other electronic payment and treasury-management tools. The company operates a branch network in the New York metropolitan region, including locations in Manhattan, Brooklyn, Great Neck, and Long Island. As of the supplied data, the organization had approximately 326 employees, including 326 full-time employees and two part-time employees in the referenced workforce information, placing it in the 201-500 employee category.
Mark R. DeFazio is the founder, president, chief executive officer, and a director of the company. Other identified senior executives include Daniel F. Dougherty, executive vice president and chief financial officer, and Dixiana M. Berrios, executive vice president and chief operating officer. Metropolitan Bank Holding Corp. became publicly traded on the New York Stock Exchange under the symbol MCB in November 2017. The supplied financial snapshot indicates a regional-banking business with approximately $971 million in market capitalization, a price-to-book ratio near 1.1, a trailing price-to-earnings ratio near 11.6, and a reported return on equity of approximately 10.2%. These figures are market and trailing-period observations and can change over time. Unlike a manufacturing company, the bank's principal economic inputs are deposits, capital, credit underwriting, personnel, technology, regulatory compliance, and branch infrastructure rather than physical components or a conventional bill of materials. Its key opportunities include expanding commercial relationships, improving digital banking, growing fee-generating services, and maintaining disciplined credit and liquidity risk management. Its principal challenges include interest-rate volatility, deposit competition, credit losses, commercial real estate exposure, regulatory requirements, cybersecurity, and the operating costs associated with a smaller banking platform.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$527.1M
+7.1%
-94.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$71.1M
+6.6%
-38.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+52.6%
-4.3%
-967.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+19.3%
-2.4%
-2079.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+13.5%
-0.5%
+1110.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$82.4M
-43.5%
-123.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+15.6%
-47.2%
-554.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
1.5%
-97.6%
-2.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.13x
+186.8%
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Welcome to Metropolitan Commercial Bank second quarter 2026 earnings call. Hosting the call today for Metropolitan Commercial Bank are Mark DeFazio, President and Chief Executive Officer, and Daniel Dougherty, Executive Vice President and Chief Financial Officer. Please note, today's call is being recorded. During today's presentation, reference will be made to the company's earnings release and investor presentation, copies of which are available at mcbankny.com. Today's presentation may include forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ materially. Please refer to the company's notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release and investor presentation. It is now my pleasure to turn the floor over to Mark DeFazio, President and Chief Executive Officer. You may begin.
Mark DeFazio: Thank you. Good morning, and thank you for joining us. I am pleased with the continued progress across the franchise. Balance sheet growth remains consistent with our guidance. The lending pipeline is strong, and loan yields continue to hold. On the funding side, our deposit forecast remains on track, and we expect core funding to support balance sheet growth through the second half of 2026. Although our core operating trends remain strong, this quarter's earnings were impacted by several isolated items, primarily tied to legacy asset quality matters and investments we decided to move forward with. I want to address these directly and provide additional context before Dan reviews the financials in great detail. Asset quality. With respect to the Kansas City loan we have been speaking about for the last few years, the original loan balance was $24 million. After posting a specific reserve of $2 million, the carrying balance was reduced to $22 million. We have reached a $27 million settlement, which includes full principal repayment, interest at the note rate, and a partial reimbursement of out-of-pocket expenses. We also expect a significant principal paydown by year-end, with the remaining balance being amortized over time and collateralized and supported by full recourse. We do expect a recovery with this particular loan. We also resolved the legacy out-of-market multifamily matter that we've been discussing also for the last two years. In the third quarter of 2025, we established a $20 million specific reserve for this credit. As I mentioned then, I was confident that we took the adequate amount of reserves and no further reserves would be needed. A full settlement has now been reached, and we charged off the prior specific reserve during the quarter. The remaining $14 million loan balance provides for P&I payments, collateral, and full recourse. We will allow this credit to season before placing the restructured loan back on an accrual status. In connection with the high net worth client exposure associated with the matter I just …
