Metropolitan Commercial Bank Announces Settlements with Federal Reserve and New York State Department of Financial Services
19 Outubro 2023 - 5:05PM
Business Wire
Metropolitan Bank Holding Corp. (NYSE: MCB), the holding company
for Metropolitan Commercial Bank (the “Bank”), today announced that
the Bank has entered into Consent Orders with the Board of
Governors of the Federal Reserve System (the “Federal Reserve”) and
the New York State Department of Financial Services (“DFS”) to
resolve Federal Reserve and DFS concerns related to the Bank’s
relationship with a program manager that processed government
stimulus funds and expanded unemployment insurance benefits during
the COVID-19 pandemic and was a target of fraud.
The Consent Orders relate to a unique challenge that arose for a
short period at the height of the COVID-19 pandemic. MCB was
committed to supporting the government’s provision of stimulus
funds and expanded unemployment insurance benefits to millions of
Americans, particularly underserved consumers who did not have
traditional bank accounts. At the same time, as federal and state
authorities have acknowledged, third-party fraud ballooned rapidly
under these pandemic-era programs, creating oversight challenges
for banks. We appreciate that the Federal Reserve and New York
Department of Financial Services have acknowledged the actions and
enhancements we voluntarily undertook, including terminating the
relationship with the third-party program manager at issue in
August 2020, and supplementing our oversight mechanisms. We also
appreciate our employees’ hard work to stem the tide of fraud that
occurred rapidly in these government programs, as a result of which
MCB was able to freeze approximately $100 million in fraudulent
payments for return to government authorities.
The imposed fines are covered by a provision taken in prior
periods. Since 2020, the Bank has been actively working to enhance
its processes and procedures to more effectively and efficiently
address the concerns that arose.
About Metropolitan Bank Holding Corp.
Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent
company of Metropolitan Commercial Bank (the “Bank”), a New York
City based full-service commercial bank.
The Bank provides a broad range of business, commercial and
personal banking products and services to individuals, small
businesses, private and public middle-market and corporate
enterprises and institutions, municipalities and local government
entities.
Metropolitan Commercial Bank’s Global Payments Group is an
established leader in providing payments services to domestic and
international non-bank financial service companies. The Bank
continues to grow its presence as a valued, trusted and innovative
strategic partner across payments, custodial and money services
businesses worldwide.
Metropolitan Commercial Bank’s EB-5 / E-2 International Group
delivers banking services and products for United States Citizen
and Immigration Services EB-5 Immigrant Investor Program investors,
developers, Regional Centers, government agencies, law firms and
consulting companies that specialize in EB-5 and E-2.
Metropolitan Commercial Bank was ranked by Independent Community
Bankers of America among the top ten successful loan producers for
2023 by loan category and asset size for commercial banks with more
than $1 billion in assets. The Bank finished ninth in S&P
Global Market Intelligence’s annual ranking of the best-performing
community banks with assets between $3 billion and $10 billion for
2022 and eighth among top-performing community banks in the
Northeast region for 2022. The Bank is also a member of the Piper
Sandler Sm-All Stars Class of 2022 and Kroll affirmed a BBB+
(investment grade) deposit rating on January 25, 2023.
The Bank is a New York State chartered commercial bank, a member
of the Federal Reserve System and the Federal Deposit Insurance
Corporation, and an equal housing lender. For more information,
please visit the Bank’s website at MCBankNY.com.
Forward-Looking Statement Disclaimer
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include but are not limited
to the Company’s future financial condition and capital ratios,
results of operations and the Company’s outlook and business.
Forward-looking statements are not historical facts. Such
statements may be identified by the use of such words as “may,”
“believe,” “expect,” “anticipate,” “plan,” “continue” or similar
terminology. These statements relate to future events or our future
financial performance and involve risks and uncertainties that are
difficult to predict and are generally beyond our control and may
cause our actual results, levels of activity, performance, or
achievements to differ materially from those expressed or implied
by these forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we caution you not to place undue reliance on these
forward-looking statements. Factors which may cause our
forward-looking statements to be materially inaccurate include, but
are not limited to the following: the interest rate policies of the
Board of Governors of the Federal Reserve System; inflation; an
unexpected deterioration in our loan or securities portfolios;
changes in liquidity, including the size and composition of our
deposit portfolio, including the percentage of uninsured deposits
in the portfolio; further deterioration in the financial condition
or stock prices of financial institutions generally; unexpected
increases in our expenses; different than anticipated growth and
our ability to manage our growth; the lingering effects of the
COVID-19 pandemic on our business and results of operation;
unanticipated regulatory action or changes in regulations;
potential recessionary conditions; unanticipated volatility in
deposits; unexpected increases in credit losses or in the level of
delinquent, nonperforming, classified and criticized loans; our
ability to absorb the amount of actual losses inherent in our
existing loan portfolio; an unanticipated loss of key personnel or
existing customers; competition from other institutions resulting
in unanticipated changes in our loan or deposit rates; an
unexpected adverse financial, regulatory or bankruptcy event
experienced by our non-bank financial service partners;
unanticipated increases in FDIC costs; changes in regulations,
legislation or tax or accounting rules, monetary and fiscal
policies of the U.S. Government including policies of the U.S.
Treasury; impacts related to or resulting from recent bank
failures; an unexpected failure to successfully manage our credit
risk and the sufficiency of our allowance, the credit and other
risks from borrower and depositor concentrations (by geographic
area and by industry); the current or anticipated impact of
military conflict, terrorism or other geopolitical events; the
costs, including possibly incurring fines, penalties or other
negative effects (including reputational harm), of any adverse
judicial, administrative, or arbitral rulings or proceedings,
regulatory enforcement actions, or other legal actions; a failure
in or breach of the Company’s operational or security systems or
infrastructure, including cyberattacks; the failure to maintain
current technologies, or to implement new technologies; the failure
to maintain effective internal controls over financial reporting;
the failure to retain or attract employees; and unanticipated
adverse changes in our customers’ economic conditions or general
economic conditions, as well as those discussed under the heading
“Risk Factors” in our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q which have been filed with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as
amended.
Forward-looking statements speak only as of the date of this
release. We do not undertake (and expressly disclaim) any
obligation to update or revise any forward-looking statement,
except as may be required by law.
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Mark R. DeFazio President & Chief Executive Officer
Metropolitan Commercial Bank 212 659-0618 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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