Metropolitan Bank slides after $179 million equity raise

Metropolitan Bank Holding

26/02/2026 14:04

Updates

** New York-based community lender Metropolitan Bank's MCB.N shares fall 7.4% to $86.93 premarket

** MCB sells 2.1 million shares at $85 apiece in public offering to raise $178.5 million

** Stock offering priced at 9.4% discount to last close

** Proceeds will be used for growth initiatives, investments, and other purposes

** MCB chief executive Mark DeFazio had indicated interest in purchasing $0.5 million worth of shares in offering, according to prospectus

** UBS Investment Bank and Hovde Group were joint book-running managers

** Piper Sandler says move isn't surprising as management has suggested they would consider raising capital once stock traded above tangible book value

** "We continue to view Metropolitan as one of the few growth-oriented stories in the banking industry. We believe the additional capital gives MCB some extra dry-powder to support accelerated growth," says Piper Sandler

** MCB had 10.1 million outstanding shares as of February 13, per prospectus

** As of last close, MCB stock down 22.9% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))