8-K - MCB - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 20, 2023

METROPOLITAN BANK HOLDING CORP.

(Exact Name of Registrant as Specified in Its Charter)


New York	001-38282	13-4042724
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File No.)	(I.R.S. Employer Identification No.)

99 Park Avenue , New York , New York		10016
(Address of Principal Executive Offices)		(Zip Code)

( 212 ) 659-0600

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		MCB		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02Results of Operations and Financial Condition

On January 20, 2023, Metropolitan Bank Holding Corp. (the “Company”), the holding company for Metropolitan Commercial Bank (the “Bank”), issued a press release announcing its financial results for the fourth quarter and full year ending 2022. The press release containing the financial results is attached hereto as Exhibit 99.1 and shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.1 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

Item 7.01Regulation FD Disclosure

The Company has also made available on its website presentation materials containing additional information about the Company’s financial results for the fourth quarter and full year ending 2022 (the “Presentation Materials”). The Presentation Materials are furnished herewith as Exhibit 99.2 and is incorporated by reference in this Item 7.01.

The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

Item 8.01Other Events

Regulatory Matters

There are ongoing investigations by federal and state governmental entities concerning a prepaid debit card product program that was offered by the Company through an independent program manager. These include investigations as to which the Company is a subject by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and certain state authorities, including the New York State Department of Financial Services (the “NYSDFS”). During the early stages of the COVID-19 pandemic, third parties used this prepaid debit card product to establish unauthorized accounts and to receive unauthorized government benefits payments, including unemployment insurance benefits payments made pursuant to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act from many states. The Company ceased accepting new accounts from this program manager in July of 2020 and has exited its relationship with this program manager. The Company is cooperating in these investigations and continues to review this matter. As the Company has previously disclosed, the foregoing could result in enforcement or other actions against the Company and the Bank including civil money penalties and remedial measures.

The Bank is in discussions with the Federal Reserve and the NYSDFS with respect to consensual resolutions of their investigations. Although the Company is unable at this time to determine the final terms on which the Federal Reserve and NYSDFS investigations will be resolved or the timing of such resolutions, the Company accrued a pre-tax charge of $35 million during the fourth quarter of 2022 to establish a reserve for what the Company believes is a reasonable estimate of the probable loss associated with the Federal Reserve and NYSDFS settlements. If final settlements with the Federal Reserve and the NYSDFS are not reached and the Federal Reserve and the NYSDFS do bring public enforcement actions, such actions and their resolution could have a materially adverse effect on the Company and the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations.

Forward Looking Statement Disclaimer

This report 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 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 continuing impact of the COVID-19

pandemic on our business and results of operation, an unexpected deterioration in our loan or securities portfolios, unexpected increases in our expenses, different than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, inflation, potential recessionary conditions, an unanticipated decrease in deposits, 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 fintech 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 and the Board of Governors of the Federal Reserve System, 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, 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.

Forward-looking statements speak only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statement.

Item 9.01.Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated January 20, 2023
99.2	Presentation Materials
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	METROPOLITAN BANK HOLDING CORP.
Dated: January 20, 2023	By:	/s/ Gregory A. Sigrist
		Gregory A. Sigrist
		Executive Vice President and Chief Financial Officer

Exhibit 99.1

Release:	7:05 A.M. January 20, 2023

212-365-6721

IR@MCBankNY.com

Metropolitan Bank Holding Corp. Reports Fourth Quarter 2022 and Full Year 2022 Results

Annual Financial Highlights Year-Over-Year:

●Revenues increased 41.5%.

●Net interest income of $229.2 million, an increase of 46.0%.

●Net interest margin of 3.49%, an increase of 72 basis points.

●Net income of $59.4 million, inclusive of a $35.0 million charge for a regulatory settlement reserve and adjusted net income^1^ of $94.4 million.

●Diluted earnings per share of $5.29, inclusive of a $3.13 per share charge for a regulatory settlement reserve and adjusted diluted earnings per share^1^ of $8.42.

●Loans totaled $4.8 billion, an increase of 29.7%.

●Return on average equity of 10.3% and return on average tangible common equity^1^ of 10.4%.

●Adjusted return on average equity^1^ of 16.3% and adjusted return on average tangible common equity^1^ of 16.6%.

Quarterly Financial Highlights Year-Over-Year:

●Net interest income of $63.9 million, an increase of 42.6%.

●Net interest margin of 4.05%, an increase of 146 basis points.

NEW YORK, January 20, 2023‒ Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported a net loss of $7.7 million, or $0.71 per diluted common share, for the fourth quarter of 2022, compared to net income of $18.9 million, or $1.69 per diluted common share, for the fourth quarter of 2021. Adjusted net income^1^ for the fourth quarter of 2022 was $27.3 million, or $2.43 per diluted common share after removing the impact of the regulatory settlement reserve. Net income for the year 2022 was $59.4 million, or $5.29 per diluted common share, compared to net income of $60.6 million, or $6.45 diluted common share, for the year 2021. Adjusted net income^1^ for the year 2022 was $94.4 million, or $8.42 per diluted common share.

^1^Non-GAAP financial measure. Adjusted amounts exclude the effect of costs related to the $35.0 million regulatory settlement reserve. See Reconciliation of Non-GAAP Measures beginning on page 13.

Mark DeFazio, President and Chief Executive Officer, commented,

“I am pleased to report on an operating basis MCB had a record year with adjusted net income of $94.4 million. The commercial bank along with our banking-as-a-service initiatives saw growth along all lines of business contributing to our operating results.

“While 2022 was a challenging year for our industry, we worked through rising interest rates, increased cost of funds, fierce competition for deposits, a material correction in the digital assets industry, and with that, increased regulatory scrutiny. To that end, we have reserved $35 million toward a potential resolution of an investigation by the Federal Reserve and the New York DFS relating to matters involving a fintech client MCB banked in 2020. We look forward to putting this matter behind us, which is more fully discussed in an SEC filing we are making today.

“On balance, we successfully covered tremendous ground in 2022 and are entering 2023 in a strong position to support our clients with enhanced resilience and strong capital levels.”

Balance Sheet

The Company had total assets of $6.3 billion at December 31, 2022, a decrease of $154.7 million, or 2.4%, from September 30, 2022, and a decrease of $849.0 million, or 11.9% from December 31, 2021.

Total cash and cash equivalents were $257.4 million at December 31, 2022, a decrease of $451.4 million, or 63.7%, from September 30, 2022 and a decrease of $2.1 billion, or 89.1%, from December 31, 2021. The decrease from September 30, 2022, reflected net loan growth of $220.9 million and net deposit outflows of $453.6 million partially offset by $250.0 million in Fed funds purchased and Federal Home Loan Bank of New York advances. The decrease from December 31, 2021, reflected the $1.1 billion deployment into loans and securities and the $1.2 billion outflow of deposits.

Total loans, net of deferred fees and unamortized costs, were $4.8 billion, an increase of $223.2 million, or 4.8%, from September 30, 2022, and an increase of $1.1 billion, or 29.7% from December 31, 2021. Loan production was $411.3 million for the fourth quarter of 2022 compared to $423.6 million for the prior linked quarter and $411.0 million for the prior year period. The increase in total loans from September 30, 2022, was due primarily to an increase of $192.5 million in commercial real estate (“CRE”) loans (including owner-occupied) and $39.4 million in commercial and industrial (“C&I”) loans. The increase in total loans from December 31, 2021, was due primarily to an increase of $765.2 million in CRE loans (including owner-occupied) and $254.1 million in C&I loans.

Other assets were $148.3 million at December 31, 2022, an increase of $49.4 million from September 30, 2022, and an increase of $91.4 million from December 31, 2021. The increase in Other assets from September 30, 2022 was due primarily to the adoption of ASU 2016-02 Leases (Topic 842), which required the Company to recognize lease assets, and liabilities, on the balance sheet as of December 31, 2022. The increase in Other assets from December 31, 2021, was due primarily to the adoption of ASU 2016-02 and the recognition of deferred tax assets related to the unrealized losses on available-for-sale securities.

Total deposits were $5.3 billion, a decrease of $453.6 million, or 7.9% from September 30, 2022, and a decrease of $1.2 billion or 18.0% from December 31, 2021. The decrease from September 30, 2022, was due to a decrease of $268.4 million in digital currency business deposits and aggregate net decrease of $185.2 million in all other deposit verticals. The decrease in digital currency business deposits reflects the Company’s decision to fully exit the crypto-asset related vertical in light of recent developments in the crypto-asset industry and material changes in the regulatory environment regarding banks’ involvement in crypto-asset related businesses. The decrease in deposits from December 31, 2021, was primarily due to a decrease of $1.0 billion in digital currency business deposits and $789.7 million in bankruptcy trustee and property manager deposits, partially offset by an aggregate net increase of $658.3 in all other deposit verticals. Non-interest-bearing demand deposits were 45.9% of total deposits at December 31, 2022, compared to 53.4% at September 30, 2022 and 57.0% at December 31, 2021.

Accumulated other comprehensive loss, net of tax, was $54.3 million, an increase of $0.5 million, from September 30, 2022, and $46.8 million from December 31, 2021. The increases were due to the prevailing interest rate environment, which increased the unrealized losses on available-for-sale securities, partially offset by the increases in unrealized gains on cash flow hedges prior to their termination in the third quarter of 2022.

At December 31, 2022, the Company had available borrowing capacity of $984.4 million from the Federal Home Loan Bank, and an available line of credit of $137.6 million under the Federal Reserve Bank of New York discount window. The Company and the Bank each met all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 366.0% of total risk-based capital at December 31, 2022, compared to 343.3% and 343.4% at September 30, 2022 and December 31, 2021, respectively.

Income Statement

Financial Highlights


	****	Three months ended									Year ended
		Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
(dollars in thousands, except per share data)		2022			2022			2021			2022			2021
Total revenues^(1)^		$	70,249		$	69,143		$	51,867		$	255,751		$	180,698
Net income (loss)			(7,740)			24,955			18,887			59,425			60,555
Diluted earnings (loss) per common share			(0.71)			2.23			1.69			5.29			6.45
Return on average assets ^(2)^			N.M.	%		1.51	%		1.10	%		0.90	%		1.06	%
Return on average equity ^(2)^			N.M.	%		16.8	%		13.6	%		10.3	%		14.7	%
Return on average tangible common equity ^(2), (3)^			N.M.	%		17.1	%		13.9	%		10.4	%		15.2	%

For the fourth quarter of 2022, adjusted return on average assets ^(2), (3)^, adjusted return on average equity ^(2), (3)^ and adjusted return on average tangible common equity ^(2), (3)^ was 1.72%, 18.2% and 18.5%, respectively.

(1)	Total revenues equal net interest income plus non-interest income.
(2)	For periods less than a year, ratios are annualized.
---	---
(3)	Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures beginning on page 13.
---	---

N.M. ‒ Not meaningful.

Net Interest Income

Net interest income for the fourth quarter of 2022 was $63.9 million, an increase of $574,000 from the prior linked quarter and $19.1 million from the prior year period. The increase from the prior linked quarter was primarily due to the $291.7 million increase in the average balance of loans and the 68 basis point increase in the average yield for loans partially offset by the $551.3 million decrease in the average balance of overnight deposits and a higher cost of funds. The increase from the prior year period was primarily due to the $1.1 billion increase in the average balance of loans and the 117 basis point increase in the average yield for loans partially offset by the higher cost of funds.

Net interest income for the year 2022 was $229.2 million, an increase of $72.2 million from the prior year. The increase from the prior year was primarily due to the $1.4 billion increase in the average balance of loans and securities and the 55 basis point and 91 basis point increases in average yield for loans and overnight deposits, respectively, partially offset by a higher cost of funds.

Net Interest Margin

Net interest margin for the fourth quarter of 2022 was 4.05% compared to 3.85% and 2.59% for the prior linked quarter and prior year period, respectively. The 20 basis point increase for the prior linked quarter was driven largely by the increase in the average balance of loans and the increase in loan and overnight deposit yields partially offset by the

decrease in the average balance of overnight deposits and a higher cost of funds. The 146 basis point increase for the prior year period was driven largely by the increase in the average balance of loans and the increase in loan yields partially offset by the higher cost of funds.

Net interest margin for the year 2022 was 3.49% compared to 2.77% for the prior year. The 72 basis point increase was driven largely by the increase in the average balance of loans and the increase in loan and overnight deposit yields partially offset by the decrease in the average balance of overnight deposits and a higher cost of funds.

Total cost of funds for fourth quarter of 2022 was 117 basis points compared to 45 basis points and 28 basis points for the prior linked quarter and prior year period, respectively, which reflects the increase in prevailing interest rates and competition for deposits.

Total cost of funds for the year 2022 was 53 basis points compared to 31 basis points for the prior year, which reflect the increase in prevailing interest rates and competition for deposits.

Non-Interest Income

Non-interest income was $6.4 million for the fourth quarter of 2022, an increase of $532,000 from the prior linked quarter and a decrease of $707,000 from the prior year period. The increase from the prior linked quarter was driven by higher Global Payments Group (“GPG”) revenues and other services charges and fees. The decrease from the prior year period was driven by decreases in GPG revenues.

Non-interest income was $26.6 million for the year 2022, an increase of $2.9 million from the prior year, driven by driven primarily by increases in GPG revenue from higher fintech Banking-as-a-Service transactions.

Non-Interest Expense

Non-interest expense was $66.7 million for the fourth quarter of 2022, an increase of $35.5 million from the prior linked quarter and $43.3 million from the prior year period. The increase from the prior linked quarter was due primarily to the $35.0 million regulatory settlement reserve and the increase in compensation and benefits due to the increase in the number of full-time employees that is in line with revenue growth, partially offset by lower professional fees. The increase from the prior year period was due primarily to the $35.0 million regulatory settlement reserve, the increase in compensation and benefits due to the increase in the number of full-time employees, and by an increase in professional fees.

Non-interest expense was $148.7 million for the year 2022, an increase of $61.4 million from the prior year. The increase was driven by the $35.0 million regulatory settlement reserve, an increase in compensation and benefits due to the increase in the number of full-time employees that is in line with revenue growth, and an increase in professional fees.

Income Tax Expense

The effective tax rate for the year 2022 was 38.7% compared to 32.4% for the prior year period. The effective tax rate increased from the prior year due to the $35.0 million regulatory settlement reserve and other discrete tax items.

Asset Quality

Credit quality remains strong as there were no charge-offs during the fourth quarter of 2022 and only $24,000 in non-performing loans at December 31, 2022. The ratio of non-performing loans to total loans was 0.00% at December 31, 2022 compared to 0.00% at September 30, 2022 and 0.28% at December 31, 2021, respectively.

The Company recorded a provision of $2.3 million for the fourth quarter of 2022 compared to $2.0 million and $501,000 for the prior linked quarter and prior year period, respectively. The Company recorded a provision of $10.1 million for the year 2022 compared to $3.8 million for the prior year. The provision was in line with loan growth during the respective periods.

Conference Call

The Company will conduct a conference call at 9:00 a.m. ET on Friday, January 20, 2023, to discuss the results. To access the event by telephone, please dial 800-245-3047 (US), 203-518-9765 (INTL), and provide conference ID: MCBQ422 approximately 15 minutes prior to the start time (to allow time for registration).

The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company’s website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software.

For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”). The Bank is a New York City based commercial bank that provides a broad range of business, commercial and personal banking products and services to small, middle-market, corporate enterprises, municipalities, and affluent individuals. The Bank’s Global Payments Group is an established leader in BaaS (Banking-as-a-Service) to various domestic and international fintech, payments and money services businesses. The Bank operates banking centers in New York City and on Long Island in New York State, and is ranked as one of the 100 Fastest-Growing Companies by Fortune, Top 50 Community Banks by S&P, Top 20 Commercial Lenders by ICBA for banks with an asset size of more than $1 billion, and is a member of the Piper Sandler Sm-All Stars Class of 2022. 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 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 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 continuing impact of the COVID-19 pandemic on our business and results of operation, an unexpected deterioration in our loan or securities portfolios, unexpected increases in our expenses, different than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, inflation, potential recessionary conditions, an unanticipated decrease in deposits, 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 fintech 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 and the Board of Governors of the Federal Reserve System, 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, 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.

Forward-looking statements speak only as of the date of this release. We do not undertake any obligation to update or revise any forward-looking statement. 6

Consolidated Balance Sheet (unaudited)


		Dec. 31,		Sept. 30,		Jun. 30,		Mar. 31,		Dec. 31,
(in thousands)	****	2022		2022		2022		2022		2021
Assets
Cash and due from banks		$	26,780	$	28,929	$	33,143	$	32,483	$	28,864
Overnight deposits			230,638		679,849		1,308,738		1,381,475		2,330,486
Total cash and cash equivalents			257,418		708,778		1,341,881		1,413,958		2,359,350
Investment securities available for sale			445,747		423,265		465,661		505,728		566,624
Investment securities held to maturity			510,425		521,376		530,740		467,893		382,099
Equity investment securities, at fair value			2,048		2,027		2,107		2,173		2,273
Total securities			958,220		946,668		998,508		975,794		950,996
Other investments			22,110		17,484		17,357		15,989		11,998
Loans, net of deferred fees and unamortized costs			4,840,523		4,617,304		4,375,165		4,121,443		3,731,929
Allowance for loan losses			(44,876)		(42,541)		(40,534)		(38,134)		(34,729)
Net loans			4,795,647		4,574,763		4,334,631		4,083,309		3,697,200
Receivables from global payments business, net			85,605		75,457		68,214		62,129		39,864
Other assets			148,337		98,911		106,451		75,761		56,950
Total assets		$	6,267,337	$	6,422,061	$	6,867,042	$	6,626,940	$	7,116,358

Liabilities and Stockholders' Equity		****
Deposits
Non-interest-bearing demand deposits		$	2,422,151	$	3,058,014	$	3,470,325	$	3,176,048	$	3,668,673
Interest-bearing deposits			2,855,761		2,673,509		2,708,075		2,763,315		2,766,899
Total deposits			5,277,912		5,731,523		6,178,400		5,939,363		6,435,572
Federal funds purchased			150,000		—		—		—		—
Federal Home Loan Bank of New York advances			100,000		—		—		—		—
Trust preferred securities			20,620		20,620		20,620		20,620		20,620
Subordinated debt, net of issuance cost			—		—		—		—		24,712
Secured borrowings			7,725		26,912		32,044		32,322		32,461
Prepaid third-party debit cardholder balances			10,579		9,395		23,531		24,092		8,847
Other liabilities			124,604		51,374		38,141		50,513		37,157
Total liabilities			5,691,440		5,839,824		6,292,736		6,066,910		6,559,369

Common stock			109		109		109		109		109
Additional paid in capital			389,276		387,406		385,369		383,327		382,999
Retained earnings			240,810		248,550		223,595		200,406		181,385
Accumulated other comprehensive gain (loss), net of tax effect			(54,298)		(53,828)		(34,767)		(23,812)		(7,504)
Total stockholders’ equity			575,897		582,237		574,306		560,030		556,989
Total liabilities and stockholders’ equity		$	6,267,337	$	6,422,061	$	6,867,042	$	6,626,940	$	7,116,358

Consolidated Statement of Income (unaudited)


	****	Three months ended							Year ended
		Dec. 31,		Sept. 30,		Dec. 31,			Dec. 31,		Dec. 31,
(dollars in thousands, except per share data)	****	2022		2022		2021		****	2022		2021
Total interest income		$	80,554	$	70,057	$	49,110		$	260,739	$	173,284
Total interest expense			16,655		6,732		4,300			31,581		16,283
Net interest income			63,899		63,325		44,810			229,158		157,001
Provision for loan losses			2,309		2,007		501			10,116		3,816
Net interest income after provision for loan losses			61,590		61,318		44,309			219,042		153,185

Non-interest income
Service charges on deposit accounts ^(1)^			1,458		1,445		1,313			5,747		4,755
Global Payments Group revenue ^(1)^			4,343		4,099		5,293			19,341		16,445
Other income			549		274		451			1,505		2,497
Total non-interest income			6,350		5,818		7,057			26,593		23,697

Non-interest expense
Compensation and benefits			15,886		14,568		12,001			57,290		45,908
Bank premises and equipment			2,247		2,228		1,992			8,855		8,055
Professional fees			5,171		6,086		1,567			14,423		6,750
Technology costs			1,186		984		1,736			4,713		5,201
Licensing fees			2,674		2,823		2,265			10,477		8,606
FDIC assessments			1,030		1,110		975			4,625		3,852
Regulatory settlement reserve			35,000		—		—			35,000		—
Other expenses			3,465		3,391		2,778			13,354		8,940
Total non-interest expense			66,659		31,190		23,314			148,737		87,312

Net income before income tax expense			1,281		35,946		28,052			96,898		89,570
Income tax expense			9,021		10,991		9,165			37,473		29,015
Net income (loss)		$	(7,740)	$	24,955	$	18,887		$	59,425	$	60,555

Earnings per common share:
Average common shares outstanding:
Basic			10,932,952		10,931,697		10,780,073			10,929,021		9,011,700
Diluted			11,183,862		11,177,152		11,084,262			11,200,184		9,272,822
Basic earnings (loss)		$	(0.71)	$	2.28	$	1.74		$	5.42	$	6.64
Diluted earnings (loss)		$	(0.71)	$	2.23	$	1.69		$	5.29	$	6.45

(1)	Certain prior period amounts have been reclassified for consistency with the current period presentation.

Loan Production, Asset Quality & Regulatory Capital


	****	Dec. 31,			Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,
		2022			2022			2022			2022		****	2021
LOAN PRODUCTION (in millions)		$	411.3		$	423.6		$	512.8		$	488.9		$	411.0

ASSET QUALITY (in thousands)
Non-accrual loans:
Commercial real estate		$	—		$	—		$	—		$	—		$	9,984
Commercial and industrial			—			—			—			—			—
Consumer			24			24			24			24			37
Total non-accrual loans		$	24		$	24		$	24		$	24		$	10,021
Total non-performing loans		$	24		$	24		$	24		$	24		$	10,286
Non-accrual loans to total loans			—	%		—	%		—	%		—	%		0.27	%
Non-performing loans to total loans			—	%		—	%		—	%		—	%		0.28	%
Allowance for loan losses		$	44,876		$	42,541		$	40,534		$	38,134		$	34,729
Allowance for loan losses to total loans			0.93	%		0.92	%		0.93	%		0.93	%		0.93	%
Charge-offs		$	—		$	—		$	—		$	—		$	(3,909)
Recoveries		$	25		$	—		$	—		$	5		$	17
Net charge-offs/(recoveries) to average loans (annualized)			—	%		—	%		—	%		—	%		0.42	%

REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.			10.2	%		9.9	%		9.2	%		8.6	%		8.5	%
Metropolitan Commercial Bank			10.0	%		9.7	%		9.1	%		8.5	%		8.4	%

Common Equity Tier 1 Risk-Based (CET1):
Metropolitan Bank Holding Corp.			12.1	%		12.9	%		13.0	%		13.3	%		14.1	%
Metropolitan Commercial Bank			12.3	%		13.1	%		13.2	%		13.6	%		14.4	%

Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.			12.5	%		13.3	%		13.4	%		13.7	%		14.6	%
Metropolitan Commercial Bank			12.3	%		13.1	%		13.2	%		13.6	%		14.4	%

Total Risk-Based:
Metropolitan Bank Holding Corp.			13.4	%		14.2	%		14.3	%		14.6	%		16.1	%
Metropolitan Commercial Bank			13.1	%		14.0	%		14.1	%		14.5	%		15.2	%

Performance Measures


		Three months ended									Year ended					****
(dollars in thousands,		Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
except per share data)	****	2022			2022			2021		****	2022			2021		****
Net income (loss) available to common shareholders		$	(7,740)		$	24,887		$	18,718		$	59,284		$	59,816
Per common share:
Basic earnings (loss)		$	(0.71)		$	2.28		$	1.74		$	5.42		$	6.64
Diluted earnings (loss)		$	(0.71)		$	2.23		$	1.69		$	5.29		$	6.45
Common shares outstanding:
Period end			10,949,965			10,931,697			10,920,569			10,949,965			10,920,569
Average fully diluted			11,183,862			11,177,152			11,084,262			11,200,184			9,272,822
Return on: ^(1)^
Average total assets			N.M.	%		1.51	%		1.10	%		0.90	%		1.06	%
Average equity			N.M.	%		16.8	%		13.6	%		10.3	%		14.7	%
Average tangible common equity ^(2)^			N.M.	%		17.1	%		13.9	%		10.4	%		15.2	%
Yield on average earning assets			5.12	%		4.26	%		2.85	%		3.97	%		3.05	%
Total cost of deposits			1.11	%		0.44	%		0.25	%		0.49	%		0.27	%
Net interest spread			2.79	%		3.25	%		2.24	%		2.82	%		2.41	%
Net interest margin			4.05	%		3.85	%		2.59	%		3.49	%		2.77	%
Net charge-offs as % of average loans ^(1)^			—	%		—	%		0.42	%		—	%		0.13	%
Efficiency ratio ^(3)^			94.9	%		45.1	%		44.9	%		58.16	%		48.32	%

(1) For periods less than a year, ratios are annualized.

(2) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures beginning on page 13.

(3) Total non-interest expense divided by total revenues.

N.M. ‒ Not meaningful.

Interest Margin Analysis


		Three months ended
		Dec. 31, 2022								Sept. 30, 2022								Dec. 31, 2021
	****	Average		****			****		****	Average		****			****		****	Average		****			****		****
		Outstanding						Yield /		Outstanding						Yield /		Outstanding						Yield /
(dollars in thousands)		Balance			Interest			Rate ^(1)^		Balance			Interest			Rate ^(1)^		Balance			Interest			Rate ^(1)^
Assets:
Interest-earning assets:
Loans ^(2)^		$	4,796,001		$	72,560		5.98	%	$	4,504,260		$	60,570		5.30	%	$	3,694,362		$	45,724		4.81	%
Available-for-sale securities			527,523			1,979		1.50			521,378			1,651		1.27			599,175			1,656		1.11
Held-to-maturity securities			518,822			2,422		1.87			527,050			2,466		1.87			191,795			716		1.49
Equity investments			2,351			10		1.70			2,342			9		1.47			2,322			6		0.96
Overnight deposits			362,244			3,291		3.55			913,566			5,114		2.19			2,215,042			857		0.15
Other interest-earning assets			18,689			292		6.26			17,360			247		5.69			11,998			151		4.98
Total interest-earning assets			6,225,630			80,554		5.12			6,485,956			70,057		4.26			6,714,694			49,110		2.85
Non-interest-earning assets			101,826								108,643								105,083
Allowance for loan losses			(43,643)								(41,494)								(38,464)
Total assets		$	6,283,813							$	6,553,105							$	6,781,313
Liabilities and Stockholders' Equity:		****	****							****
Interest-bearing liabilities:
Money market and savings accounts		$	2,683,653			15,241		2.25		$	2,572,111			6,407		0.99		$	2,691,693			3,614		0.53
Certificates of deposit			49,470			207		1.66			51,363			98		0.76			80,197			176		0.87
Total interest-bearing deposits			2,733,123			15,448		2.24			2,623,474			6,505		0.98			2,771,890			3,790		0.54
Borrowed funds			101,600			1,207		4.75			20,555			227		4.41			45,324			510		4.49
Total interest-bearing liabilities			2,834,723			16,655		2.33			2,644,029			6,732		1.01			2,817,214			4,300		0.61
Non-interest-bearing liabilities:
Non-interest-bearing deposits			2,792,370								3,243,664								3,337,477
Other non-interest-bearing liabilities			60,951								75,471								74,496
Total liabilities			5,688,044								5,963,164								6,229,187
Stockholders' equity			595,769								589,941								552,126
Total liabilities and equity		$	6,283,813							$	6,553,105							$	6,781,313
Net interest income					$	63,899							$	63,325							$	44,810
Net interest rate spread ^(3)^								2.79	%							3.25	%							2.24	%
Net interest margin ^(4)^								4.05	%							3.85	%							2.59	%
Total cost of deposits ^(5)^								1.11	%							0.44	%							0.25	%
Total cost of funds ^(6)^								1.17	%							0.45	%							0.28	%

(1)	For periods less than a year, ratios are annualized.
(2)	Amount includes deferred loan fees and non-performing loans.
---	---
(3)	Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets.
---	---
(4)	Determined by dividing annualized net interest income by total average interest-earning assets.
---	---
(5)	Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.
---	---
(6)	Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.
---	---


		Year ended
		Dec. 31, 2022								Dec. 31, 2021							****
	****	Average		****			****		****	Average		****			****		****
		Outstanding						Yield /		Outstanding						Yield /	****
(dollars in thousands)		Balance			Interest			Rate ^(1)^		Balance			Interest			Rate ^(1)^	****
Assets:
Interest-earning assets:
Loans ^(2)^		$	4,361,412		$	231,851		5.32	%	$	3,448,468		$	164,528		4.77	%
Available-for-sale securities			538,425			6,921		1.29			489,922		$	5,066		1.03
Held-to-maturity securities			495,812			8,682		1.75			50,110		$	746		1.49
Equity investments			2,339			32		1.37			2,312		$	26		1.13
Overnight deposits			1,156,468			12,314		1.05			1,669,754		$	2,310		0.14
Other interest-earning assets			16,700			939		5.62			11,897		$	608		5.11
Total interest-earning assets			6,571,156			260,739		3.97			5,672,463			173,284		3.05
Non-interest-earning assets			90,495								89,002
Allowance for loan losses			(40,020)								(37,235)
Total assets		$	6,621,631							$	5,724,230
Liabilities and Stockholders' Equity:		****	****								****
Interest-bearing liabilities:
Money market and savings accounts		$	2,652,502		$	28,694		1.08		$	2,394,616		$	13,392		0.56
Certificates of deposit			59,645			590		0.99			83,313		$	849		1.02
Total interest-bearing deposits			2,712,147			29,284		1.08			2,477,929			14,241		0.57
Borrowed funds			45,878			2,297		5.00			45,303			2,042		4.51
Total interest-bearing liabilities			2,758,025			31,581		1.15			2,523,232			16,283		0.65
Non-interest-bearing liabilities:
Non-interest-bearing deposits			3,223,606								2,708,547
Other non-interest-bearing liabilities			61,213								79,239
Total liabilities			6,042,844								5,311,018
Stockholders' equity			578,787								413,212
Total liabilities and equity		$	6,621,631							$	5,724,230
Net interest income					$	229,158							$	157,001
Net interest rate spread ^(3)^								2.82	%							2.41	%
Net interest margin ^(4)^								3.49	%							2.77	%
Total cost of deposits ^(5)^								0.49	%							0.27	%
Total cost of funds ^(6)^								0.53	%							0.31	%

(1)	For periods less than a year, ratios are annualized.
(2)	Amount includes deferred loan fees and non-performing loans.
---	---
(3)	Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest earning assets.
---	---
(4)	Determined by dividing annualized net interest income by total average interest-earning assets.
---	---
(5)	Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits.
---	---
(6)	Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.
---	---

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables:


	Quarterly Data										Year ended
(dollars in thousands,	Dec. 31,		Sept. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
except per share data)	2022		2022		2022		2022		2021		2022		2021
Average assets	$	6,283,813	$	6,553,105	$	6,736,800	$	6,920,575	$	6,781,313	$	6,621,631	$	5,724,230
Less: average intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Average tangible assets (non-GAAP)	$	6,274,080	$	6,543,372	$	6,727,067	$	6,910,842	$	6,771,580	$	6,611,898	$	5,714,497

Average equity	$	595,769	$	589,941	$	567,931	$	561,020	$	552,126	$	578,787	$	413,212
Less: average preferred equity		—		—		—		—		1,834		—		4,585
Average common equity	$	595,769	$	589,941	$	567,931	$	561,020	$	550,292	$	578,787	$	408,627
Less: average intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Average tangible common equity (non-GAAP)	$	586,036	$	580,208	$	558,198	$	551,287	$	540,559	$	569,054	$	398,894

Total assets	$	6,267,337	$	6,422,061	$	6,867,042	$	6,626,940	$	7,116,358	$	6,267,337	$	7,116,358
Less: intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Tangible assets (non-GAAP)	$	6,257,604	$	6,412,328	$	6,857,309	$	6,617,207	$	7,106,625	$	6,257,604	$	7,106,625

Common equity	$	575,897	$	582,237	$	574,306	$	560,030	$	556,989	$	575,897	$	556,989
Less: intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Tangible common equity (book value) (non-GAAP)	$	566,164	$	572,504	$	564,573	$	550,297	$	547,256	$	566,164	$	547,256

Common shares outstanding		10,949,965		10,931,697		10,931,697		10,931,697		10,920,569		10,949,965		10,920,569
Book value per share (GAAP)	$	52.59	$	53.26	$	52.54	$	51.23	$	51.00	$	52.59	$	51.00
Tangible book value per share (non-GAAP) ^(1)^	$	51.70	$	52.37	$	51.65	$	50.34	$	50.11	$	51.70	$	50.11

(1) Tangible book value divided by common shares outstanding at period-end.


	Quarterly Data															Year ended
(dollars in thousands,	Dec. 31,			Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
except per share data)	2022			2022			2022			2022			2021			2022			2021
Net income (loss)	$	(7,740)		$	24,955		$	23,189		$	19,021		$	18,887		$	59,425		$	60,555
Impact of adjustments ^(1)^		35,000			—			—			—			—			35,000			—
Adjusted net income (non-GAAP)	$	27,260		$	24,955		$	23,189		$	19,021		$	18,887		$	94,425		$	60,555

Diluted earnings (loss) per common share	$	(0.71)		$	2.23		$	2.07		$	1.69		$	1.69		$	5.29		$	6.45
Impact of adjustments ^(1)^		3.14			—			—			—			—			3.13			—
Adjusted diluted earnings per common share (non-GAAP)	$	2.43		$	2.23		$	2.07		$	1.69		$	1.69		$	8.42		$	6.45

Return on average assets^(2)^		(0.49)	%		1.51	%		1.38	%		1.11	%		1.10	%		0.90	%		1.06	%
Impact of adjustments ^(1)^		2.21			—			—			—			—			0.53			—
Adjusted return on average assets (non-GAAP)		1.72	%		1.51	%		1.38	%		1.11	%		1.10	%		1.43	%		1.06	%

Return on average equity^(2)^		(5.2)	%		16.8	%		16.4	%		13.8	%		13.6	%		10.3	%		14.7	%
Impact of adjustments ^(1)^		23.3			—			—			—			—			6.0			—
Adjusted return on average equity (non-GAAP)		18.2	%		16.8	%		16.4	%		13.8	%		13.6	%		16.3	%		14.7	%

Return on average tangible common equity ^(2)^		(5.2)	%		17.1	%		16.7	%		14.0	%		13.9	%		10.4	%		15.2	%
Impact of adjustments ^(1)^		23.7			—			—			—			—			6.2			—
Adjusted return on average tangible common equity (non-GAAP)		18.5	%		17.1	%		16.7	%		14.0	%		13.9	%		16.6	%		15.2	%

Efficiency ratio ^(2)^		94.9	%		45.1	%		42.2	%		45.5	%		44.9	%		58.2	%		48.3	%
Impact of adjustments ^(1)^		(49.8)			—			—			—			—			(13.7)			—
Adjusted efficiency ratio (non-GAAP)		45.1	%		45.1	%		42.2	%		45.5	%		44.9	%		44.5	%		48.3	%

(1) Impact of adjustments exclude the effect of costs related to the regulatory settlement reserve in the fourth quarter of 2022.

(2) For periods less than a year, ratios are annualized.

Explanatory Note

Some amounts presented within this document may not recalculate due to rounding.

Exhibit 99.2

4<br>Q<br>2022<br>Investor Presentation
Disclosure<br>1<br>This presentation contains forward-looking<br>statements within the meaning of the<br>Private Securities Litigation Reform Act of<br>1995. Examples of forward-looking<br>statements include but are not limited to<br>the Companys future financial condition<br>and capital ratios, results of operations and<br>the Companys outlook and business.<br>Forward-looking statements are not<br>historical facts. Such statements may be<br>identified by the use of such words as may,<br>believe, expect, anticipate, plan,<br>continue or similar terminology. These<br>statements relate to future events or our<br>future financial performance and involve<br>risks and uncertainties that may cause our<br>actual results, levels of activity, performance<br>or achievements to differ materially from<br>those expressed or implied by these<br>forward-looking statements. Although we<br>believe that the expectations reflected in<br>the forward-looking statements are<br>reasonable, we caution you not to place<br>undue reliance on these forward-looking<br>statements. Factors which may cause our<br>forward-looking statements to be<br>materially inaccurate include, but are not<br>limited to the continuing impact of the<br>COVID-19 pandemic on our business and<br>results of operation, an unexpected<br>deterioration in our loan or securities<br>portfolios, unexpected increases in our<br>expenses, different than anticipated growth<br>and our ability to manage our growth,<br>unanticipated regulatory action or changes<br>in regulations, unexpected changes in<br>interest rates, inflation, potential<br>recessionary conditions, an unanticipated<br>decrease in deposits, an unanticipated loss<br>of key personnel or existing customers,<br>competition from other institutions<br>resulting in unanticipated changes in our<br>loan or deposit rates, an unexpected<br>adverse financial, regulatory or bankruptcy<br>event experienced by our fintech partners,<br>unanticipated increases in FDIC costs,<br>changes in regulations, legislation or tax or<br>accounting rules, monetary and fiscal<br>policies of the U.S. Government including<br>policies of the U.S. Treasury and the Board<br>of Governors of the Federal Reserve System,<br>the current or anticipated impact of military<br>conflict, terrorism or other geopolitical<br>events, the costs, including possibly<br>incurring fines, penalties or other negative<br>effects (including reputational harm), of any<br>adverse judicial, administrative, or arbitral<br>rulings or proceedings, regulatory<br>enforcement actions, or other legal actions,<br>a failure in or breach of the Companys<br>operational or security systems or<br>infrastructure, including cyberattacks, the<br>failure to maintain current technologies,<br>failure to retain or attract employees and<br>unanticipated adverse changes in our<br>customers economic conditions or general<br>economic conditions, as well as those<br>discussed under the heading Risk Factors<br>in our Annual Report on Form 10-K and<br>Quarterly Reports on Form 10-Q..<br>Forward-looking statements speak only as<br>of the date of this presentation. We do not<br>undertake any obligation to update or<br>revise any forward-looking statement.
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2<br>A Diversified Financial Institution<br>We are More than a Commercial Bank<br>Personal<br>Banking<br><br>Broad range of hallmark personal checking and savings accounts<br><br>A full suite of electronic banking services that allow clients to easily manage their<br>everyday financing needs<br>Commercial<br>Lending<br><br>Relationship-based commercial real estate lending<br><br>Growth driven by expertise in specific lending verticals<br>Business<br>Banking<br><br>Checking, deposit, lending and cash management products and services for<br>small and middle-market businesses<br><br>MCB Business Bankers with deep knowledge and expertise in multiple industries,<br>including law firms, resident healthcare, real estate property management, U.S.<br>Trustee and municipalities<br>Global Digital<br>Payments (BaaS)<br><br>Settlement for domestic and international digital payments<br><br>Delivers critical financial infrastructure<br><br>Provides Banking-as-a-Service to high growth fintechs<br>Our mission<br>To offer a full range of<br>banking and innovative financial services<br>to businesses<br>and individuals<br>Serve<br>markets underserved<br>by the ever-consolidating financial services industry<br>and advance our leading edge model that<br>combines new technologies with<br>the best of traditional banking practices<br>Our history<br>Founded in 1999 in New York City with the goal of helping clients build and sustain<br>generational wealth<br>Business model focused on providing high-touch service with industry expertise<br>and delivering customized solutions for our clients<br>Commercial banking business is relationship driven and predominantly located in<br>the highly attractive New York metro area<br>Global payments business provides Banking-as-a-Service (BaaS) to leading<br>fintech partners, which includes serving as an issuing bank for third-party<br>managed debit card programs nationwide and providing other financial<br>infrastructure, including cash settlement and custodian deposit services<br>2017 IPO raised $125mm of common equity and fueled industry-leading balance<br>sheet and earnings growth<br>In September 2021, MCB raised $172.5 million of common equity in a follow on<br>offering of 2.3 million shares at $75 per share<br>As of December 31, 2022, MCB has $6.3bnof assets; 29% compound annual<br>growth rate since the IPO
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Proven high growth business model<br>3<br>Loans<br>$ millions<br>$1,404<br>$1,661<br>$2,791<br>$3,830<br>$6,436<br>$5,278<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Deposits<br>$ millions<br>$63<br>$83<br>$108<br>$142<br>$181<br>$256<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Revenue<br>$ millions<br>$12<br>$26<br>$30<br>$39<br>$60<br>$59<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Adjusted Net Income<br>Net Income and Adjusted Net Income<br>4<br>$ millions<br>1<br>CAGR from December 31, 2017 through 2022.<br>2<br>CAGR from December 31, 2017 through 2022.<br>3<br>Adjusted Net Income CAGR from December 31, 2017 through 2022.<br>4<br>Non-GAAP financial measure. Adjusted amounts exclude the effect of costs related to the $35.0 million regulatory settlement reserve. See reconciliation to GAAP measure beginning on page 19.<br>$1,421<br>$1,867<br>$2,678<br>$3,137<br>$3,732<br>$4,841<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>$94
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36.4%<br>19.5%<br>10.7%<br>Metropolitan<br>Commercial Bank<br>High-growth banks<br>KRX Index<br>Revenue CAGR<br>1<br>20172022Q3<br>Investors have been rewarded for our strong<br>performance<br>Tangible book value per share CAGR<br>1<br>20172022Q3<br>Earnings per share CAGR<br>1<br>20172022Q3<br>32.5%<br>22.4%<br>14.4%<br>Metropolitan<br>Commercial Bank<br>High-growth banks<br>KRX Index<br>Share price performance since IPO<br>4<br>versus KRX Index<br>3<br>14.9%<br>13.1%<br>2.0%<br>Metropolitan<br>Commercial Bank<br>High-growth banks<br>KRX Index<br>(60%)<br>0%<br>60%<br>120%<br>180%<br>240%<br>Nov-17<br>Aug-18<br>May-19<br>Jan-20<br>Oct-20<br>Jul-21<br>Apr-22<br>Jan-23<br>Metropolitan Commercial Bank<br>High-growth banks<br>KRX Index<br>+74%<br>+50%<br>Source: FactSet, SNL Financial<br>1 CAGR from December 31, 2017 through September 30, 2022 (if applicable for High-growth banks and KRX Index).<br>2 Includes banks with market capitalization of $500mm+ and revenue, EPS, and TBVPS CAGRs >10% (2015-2021); Includes AX, BFC, CASH, FFIN, FFWM, FRC, HIFS, MBIN, PNFP, QCRH, SFBS, SIVB, and WAL.<br>3 KRX Index represents the KBW Regional Bank Index.<br>4 Performance since November 7, 2017 (MCB offering price of $35.00 per share) through January 12, 2023.<br>+11%
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Delivering Financial Results<br>5<br>Annual Financial Highlights<br>Year-Over-Year<br><br>Revenues increased 41.5%.<br><br>Net interest income of $229.2 million, an increase of 46.0%.<br><br>Net interest margin of 3.49%, an increase of 72 basis points.<br><br>Net income of $59.4 million, inclusive of a $35.0 million charge for a regulatory<br>settlement reserve and adjusted net income of $94.4 million.<br><br>Diluted earnings per share of $5.29, inclusive of a $3.13 per share charge for a<br>regulatory settlement reserve and adjusted diluted earnings per share of $8.42.<br><br>Loans totaled $4.8 billion, an increase of 29.7%.<br><br>Return on average equity of 10.3% and return on average tangible common<br>equity1 of 10.4%.<br><br>Adjusted return on average equity of 16.3% and adjusted return on average<br>tangible common equity of 16.6%.<br>Total Revenues includes Net Interest Income and Non-Interest Income.<br>Non-GAAP financial measure. See reconciliation to GAAP measure beginning on page 19.<br>1<br>Total non-interest expense divided by Total revenues.<br>$60,013<br>$78,744<br>$102,596<br>$133,460<br>$164,253<br>$236,410<br>$3,369<br>$4,640<br>$5,643<br>$8,464<br>$16,445<br>$19,341<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>$255,751<br>$83,384<br>Total Revenues<br>Full year, December 31, 2022	$ thousands<br>$108,239<br>$141,924<br>$180,698<br>Global Payments<br>Group (GPG)<br>Revenues<br>Excluding GPG<br>$63,382<br>$19,021<br>$19,021<br>$12,117<br>$6,097<br>$8,531<br>$3,291<br>$2,549<br>$23,189<br>$23,189<br>$13,336<br>$10,811<br>$6,057<br>$5,865<br>$2,651<br>$24,955<br>$24,955<br>$16,215<br>$10,783<br>$7,683<br>$7,113<br>$3,845<br>-$7,740<br>$18,887<br>$11,775<br>$7,863<br>$6,285<br>$3,324<br>$27,260<br>Adjusted<br>Net Income<br>2022<br>2022<br>2021<br>2020<br>2019<br>2018<br>2017<br>Adjusted Q4<br>4Q<br>3Q<br>2Q<br>1Q<br>Quarterly Net Income and Adjusted Quarterly Net<br>Income<br>$ thousands<br>$94,425<br>$12,369<br>$25,554<br>$30,134<br>$39,466<br>$60,555<br>$59,425<br>10.5%<br>10.8%<br>11.3%<br>12.9%<br>15.2%<br>10.4%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Adjusted ROATCE<br>ROATCE and Adjusted ROATCE**<br>at December 31, 2022<br>16.6%
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Loan Portfolio Growth and Diversification<br>6<br>1<br>Gross of deferred fees and unamortized costs.<br>2<br>Certain prior period amounts adjusted to conform to current presentation.<br>* Includes consumer and 1-4 family loans.<br>** Includes commercial real estate, multifamily and construction loans.<br>$4.85 billion Gross Loan Portfolio<br>1, 2<br>at December 31, 2022	$ millions<br>A Diversified Portfolio<br>at December 31, 2022<br>67%<br>19%<br>10%<br>3%<br>CRE<br>C&I<br>Multifamily<br>Contruction<br>Other<br>$2,122<br>$2,140<br>$2,239<br>$2,259<br>$2,388<br>$2,504<br>$780<br>$855<br>$1,085<br>$1,268<br>$1,296<br>$1,362<br>$611<br>$654<br>$724<br>$781<br>$869<br>$909<br>$97<br>$90<br>$82<br>$78<br>$76<br>$78<br>3Q 20214Q 20211Q 20222Q 20223Q 20224Q 2022<br>$3,610<br>$3,739<br>$4,130<br>$4,629<br>Total loans:<br>$4.85mm<br>Average 4Q Yield:<br>5.98%<br>CRE/RBC ratio: MCB<br>366%<br>$4,853<br>$4,368
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Commercial Growth Driven by<br>Expertise in Specific Lending Verticals<br>7<br>Commercial and Industrial Overview<br>Target Market<br><br>Middle market businesses with annual revenues below $200<br>million<br><br>Well-diversified across industries<br>Key Metrics<br><br>Strong historical credit performance<br>-<br>Pledged collateral and/or personal guarantees from high-<br>net-worth individuals support most loans<br>-<br>Target borrowers have strong historical cash flows, good<br>asset coverage and positive industry outlooks<br>C&I Composition<br>at December 31, 2022<br>25%<br>18%<br>13%<br>11%<br>11%<br>10%<br>6%<br>5%<br>25% Finance & Insurance<br>18% Individuals Secured<br>13% Skilled Nursing Facilities<br>11% Healthcare<br>11% Retail<br>10% Other<br>6% Manufacturing<br>5% Wholesale<br>1% Individuals Unsecured<br>Total C&I loans:<br>$905mm<br>1<br>1<br>Net of deferred fees and unamortized costs.
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Relationship-Based<br>Commercial Real Estate Lending<br>8<br>Target Market<br><br>New York metropolitan area real estate entrepreneurs<br>with a net worth in excess of $50 million<br><br>Primarily concentrated in the New York MSA<br><br>Well-diversified across various property types<br>Key Metrics<br><br>Weighted average LTV of 61%<br><br>Multifamily loans 34.5% rent regulated<br><br>Average LTV of 42% on stabilized rent regulated properties<br>provide a cushion against any falling values<br>Composition by Type<br>at December 31, 2022<br>Composition by Region<br>at December 31, 2022<br>18%<br>17%<br>11%<br>8%<br>8%<br>6%<br>6%<br>3%<br>21%<br>18% Manhattan<br>17% Brooklyn<br>11% Queens<br>8% Florida<br>8% Bronx<br>6% Long Island<br>6% New Jersey<br>3% Other NY<br>1% Staten Island<br>1% Connecticut<br>21% Other States<br>Majority of loans are originated through direct relationships or referrals from existing clients.<br>31%<br>12%<br>11%<br>9%<br>9%<br>10%<br>5%<br>4%<br>4%<br>4%<br>31% Nursing Home CRE<br>12% Multifamily<br>11% Other CRE<br>9% Mixed Use<br>9% Retail<br>10% Office<br>5% Hospitality<br>4% Land<br>4% Construction<br>4% Warehouse<br>1% 1-4 Family<br>Total CRE loans:<br>$3,858mm<br>1<br>1<br>Net of deferred fees and unamortized costs.
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Well-Developed, Sector Diversified<br>Healthcare Portfolio<br>9<br><br>Active in Healthcare lending since 2002<br><br><br><br>Highly selective regarding the quality of Skilled Nursing Operators that we finance<br><br>Borrowers typically have over 1,000 beds under management<br><br>Loans are made primarily in certificate of need states which limits the supply of<br>beds and supports stable occupancy rates.<br><br>Stabilized SNF 71% of CRE SNF portfolio. Stabilized facility provides adequate<br>cash flows to support debt service and collateral value. Borrowers primary motive<br>for acquisition of a stabilized property is for synergies with existing portfolio of<br>SNFs. Average debt service coverage ratio is 2.55x.<br><br>Non-stabilized SNF typically turn-around older SNFs acquired from owners<br>who mismanaged the business, relied too heavily on long-term care (Medicaid<br>reimbursement) or did not stay current with changes in the marketplace.<br>Opportunity for owner to create value by renovating and adding services with<br>higher Medicaid reimbursements rates (rehabilitation services, dialysis, etc.).<br>C&I Healthcare Composition<br>at December 31, 2022<br>54%<br>22%<br>15%<br>4%<br>3%<br>54% Nursing & Residential<br>Care Facilities<br>22% Ambulatory Health Care<br>Services<br>15% Medical Labs<br>4% Ambulance Services<br>3% Doctor Office<br>1% Offices and Clinics of<br>Dentists<br>1% Misc. Health Practitioners<br>CRE SNF - $1.217 bn<br>C&I SNF - $119 mm<br>C&I Other Healthcare - $100 mm<br>CRE SNF<br>$1,217 mm<br>C&I SNF<br>$119 mm<br>C&I Other<br>$100 mm<br>Diversified Healthcare Portfolio<br>at December 31, 2022<br>Total Healthcare loans:<br>$1,436mm
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Well-Developed, Geographically Diversified Skilled<br>Nursing Facility Portfolio<br>10<br>CRE Skilled Nursing Facility Exposure by State<br>at December 31, 2022<br>C&I Skilled Nursing Facility Exposure by State<br>at December 31, 2022<br>33%<br>25%<br>10%<br>7%<br>6%<br>4%<br>4%<br>2%<br>3%<br>3%<br>33% New York<br>25% Florida<br>10% New Jersey<br>7% Virginia<br>6% Indiana<br>4% Pennsylvania<br>4% Ohio<br>2% Other States<br>3% Kentucky<br>3% Arizona<br>1% Georgia<br>1% Tennessee<br>1% Michigan<br>24%<br>22%<br>18%<br>10%<br>10%<br>8%<br>7%<br>24% New York<br>22% Florida<br>18% New Jersey<br>10% Pennsylvania<br>10% Other<br>8% District of Columbia<br>7% Indiana<br>1% Michigan
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$1,320<br>$1,501<br>$1,492<br>$1,529<br>$1,654<br>$1,832<br>$940<br>$934<br>$930<br>$882<br>$714<br>$425<br>$1,044<br>$1,121<br>$1,129<br>$1,041<br>$941<br>$840<br>$796<br>$736<br>$734<br>$868<br>$894<br>$869<br>$447<br>$495<br>$481<br>$545<br>$707<br>$747<br>$132<br>$128<br>$69<br>$65<br>$60<br>$70<br>$4,679<br>$4,915<br>$4,835<br>$4,930<br>$4,970<br>$4,784<br>3Q 20214Q 20211Q 20222Q 20223Q 20224Q 2022<br>Specialty Deposits*<br>Fintech BaaS<br>Retail Deposits with Loan<br>Customers<br>Property Managers<br>Bankruptcy Trustees<br>Retail Deposits<br>46%<br>53%<br>1%<br>46% Non-interest-bearing<br>demand deposits<br>53% Money market &<br>savings account<br>1% Time deposits<br>4Q Cost of total<br>deposits:<br>0.49%<br>Deposit Composition<br>11<br>* Certain prior period amounts have been reclassified for consistency with the current period presentation.<br>** Includes liquidation, receivership, and litigation settlement.<br>Deposits Verticals Composition Over Time<br>	$ millions<br>Total Deposits<br>	$ millions<br>$4,679<br>$4,915<br>$4,835<br>$4,930<br>$4,970<br>$4,784<br>$778<br>$1,520<br>$1,104<br>$1,248<br>$762<br>$494<br>$5,457<br>$6,435<br>$5,939<br>$6,178<br>$5,732<br>$5,278<br>3Q 2021<br>4Q 2021<br>1Q 2022<br>2Q 2022<br>3Q 2022<br>4Q 2022<br>Digital<br>Currency<br>Businesses*<br>Deposit<br>Verticals<br>Deposits Composition<br>at December 31, 2022
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Customer Centric Digital Payments Worldwide<br>Global Payments Group<br>12<br><br>Domestic and international digital payments settlements<br><br>Gateway to payment networks Wire, ACH, Visa, Mastercard, Remittance<br><br>Custodian of deposits on behalf of clients and their customers<br><br>Sponsorship for select clients as an extension of MCBs expertise and legal authority e.g., money<br>transmitter, issuing bank, acquiring bank, lending activities<br><br>Regulatory oversight by experienced MCB bankers with the expertise to deploy and manage<br>regulatory compliance across a broad spectrum of client sectors including fintech, digital payments<br>and money services businesses<br><br>A leading national issuer of third-party debit cards status<br><br>In addition to reported revenues, GPG-Fintech also contributed average non-interest bearing<br>deposits of $737 million in the fourth quarter.<br>About Global Payments<br>$4,628<br>$5,358<br>$7,331<br>$8,823<br>$10,006<br>$12<br>$285<br>$1,133<br>$7,622<br>$9,335<br>$4,640<br>$5,643<br>$8,464<br>2018<br>2019<br>2020<br>2021<br>2022<br>Digital<br>Currency<br>Businesses<br>Fintech<br>BaaS<br>$<br>16,445<br>$19,341<br>GPG Revenue<br>$ thousands<br>Global Payments Group Revenue as a<br>% of Total Bank Non-Interest Income<br>38%<br>53%<br>69%<br>50%<br>73%<br>1<br>CAGR from December 31, 2018 through 2022.<br>* Does not include digital currency businesses.<br>38.60<br>42.30<br>51.08<br>53.31<br>63.80<br>3.46<br>39.23<br>43.94<br>2018<br>2019<br>2020<br>2021<br>2022<br>Digital<br>Currency<br>Businesses<br>Fintech<br>BaaS**<br>38.60<br>42.30<br>54.54<br>92.54<br>107.74<br>GPG Transactions<br>	Millions
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13.00<br>13.24<br>13.70<br>15.93<br>13.26<br>17.65<br>38.60<br>42.30<br>51.08<br>13.35<br>16.98<br>2018<br>2019<br>2020<br>2021<br>2022<br>4Q<br>3Q<br>2Q<br>1Q<br>Customer Centric Digital Payments Worldwide<br>Global Payments Group Fintech BaaS<br>13<br>Fintech BaaS<br>1<br>Client Transactions<br>	Millions<br>53.31<br>63.80<br>1<br>Does not include digital currency businesses.<br>2<br>Certain prior periods amounts have been reclassified for consistency with the current period presentation.<br><br>CAGR from December 31, 2018 through 2022.<br><br>General Purpose Re-Loadable (GPR).<br>**<br>Represents the percentage of total revenue from new clients who went live since 2021.<br>Total Fintech BaaS<br>1<br>Revenue by Category<br>2<br>	Thousands<br>$930<br>$997<br>$884<br>$791<br>$872<br>$292<br>$373<br>$517<br>$512<br>$693<br>$273<br>$122<br>$203<br>$104<br>$196<br>$443<br>$444<br>$415<br>$809<br>$1,171<br>$186<br>$182<br>$213<br>$328<br>$180<br>4Q 2021<br>1Q 2022<br>2Q 2022<br>3Q 2022<br>4Q 2022<br>Disbursements<br>Digital bank acct<br>Other<br>Corporate Disbursement<br>GPR card<br>$2,544<br>$2,124<br>$3,112<br>15%<br><br>13%<br><br>17%<br><br>19%<br><br>$2,118<br>14%<br>*<br>$2,232
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14<br>Well Managed Net Interest Margin<br>1 Represents full-year NIM.<br>2 Represents effective average daily FRB funds rate .<br>Net Interest Margin Analysis<br>1.00%<br>1.83%<br>2.16%<br>0.36%<br>0.08%<br>1.68%<br>3.52%<br>3.70%<br>3.46%<br>3.26%<br>2.77%<br>3.49%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>MCB Net Interest<br>Margin ("NIM")<br>1<br>Average Fed<br>Funds Rate<br>2<br>Estimated Sensitivity of Projected<br>Annualized Net Interest Income<br>as of December 31, 2022<br>Fixed vs. Floating Rate Loans<br>at December 31, 2022, for loans due after one year<br>Fixed<br>64%<br>Floating<br>36%<br>2.32%<br>1.42%<br>-1.86%<br>-4.01%<br>-200 bps<br>-100 bps<br>+100 bps<br>+200 bps<br>Giventhestrengthof our deposit verticals<br>and overall asset sensitivity,wearewell-<br>positionedtobenefitfroma risinginterest<br>rateenvironmentaswemaintainour<br>margin managementdiscipline.<br>Approximately 79% of floating rate loans have<br>floors Weighted average floor of 4.84%
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Highly Profitable, Scalable Model<br>15<br>^ This represents the percentage of total non-interest income (less any gains on sale of securities) as compared to total revenue.<br>* Annualized<br>1 Non-GAAP financial measure. See reconciliation to GAAP measure beginning on page 19.<br>17.8%<br>14.7%<br>9.8%<br>9.7%<br>12.8%<br>10.4%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Non-Interest Income ratio<br>1,^<br>Efficiency ratio and Adjusted Efficiency ratio<br>1<br>16.6%<br>10.5%<br>10.8%<br>11.3%<br>12.9%<br>15.2%<br>10.4%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Adjusted ROATCE<br>ROATCE and Adjusted ROATCE<br>1<br>52.1%<br>52.1%<br>55.4%<br>52.5%<br>48.3%<br>58.2%<br>44.5%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Adjusted Efficiency Ratio<br>Net Interest Margin<br>3.52%<br>3.70%<br>3.46%<br>3.26%<br>2.77%<br>3.49%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022
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Credit Metrics<br>16<br>NCOs/Average Loans<br>Non-Performing Loans/Loans<br>ALLL/Loans<br>Non-Performing Loans/ALLL<br>0.32%<br>-0.06%<br>-0.13%<br>0.01%<br>0.13%<br>0.00%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>1.05%<br>1.02%<br>0.98%<br>1.13%<br>0.93%<br>0.93%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>0.24%<br>0.02%<br>0.17%<br>0.20%<br>0.28%<br>0.00%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>22.8%<br>1.5%<br>17.1%<br>18.0%<br>29.6%<br>0.0%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022
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Capital ratios<br>17<br>Common Equity Tier 1 Capital Ratio<br>18.4%<br>15.6%<br>11.8%<br>11.6%<br>14.4%<br>12.3%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br> These capital ratios are for Metropolitan Commercial Bank Only<br>1<br>Non-GAAP financial measure. See reconciliation to GAAP measure beginning on page 19.<br>Tier 1 Leverage Ratio<br>14.7%<br>14.7%<br>10.1%<br>9.0%<br>8.4%<br>10.0%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>19.4%<br>16.7%<br>12.7%<br>12.7%<br>15.2%<br>13.1%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>Total Risk-Based Capital Ratio<br>TCE / TA<br>1<br>12.7%<br>11.5%<br>8.5%<br>7.5%<br>7.7%<br>9.0%<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022
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Appendix<br>18
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Reconciliation of GAAP to Non-GAAP Measures<br>19<br>Tangible common equity divided by common shares outstanding at period-end.<br>In addition to the results presented<br>in accordance with Generally<br>Accepted Accounting Principles<br>(GAAP), this earnings release<br>includes certain non-GAAP financial<br>measures. Management believes<br>these non-GAAP financial measures<br>provide meaningful information to<br>investors<br>in understanding the Companys<br>operating performance and trends.<br>These non-GAAP measures have<br>inherent limitations and are not<br>required to be uniformly applied<br>and are not audited. They should<br>not be considered in isolation or as<br>a substitute for an analysis of results<br>reported under GAAP. These non-<br>GAAP measures may not be<br>comparable to similarly titled<br>measures reported by other<br>companies. Reconciliations of non-<br>GAAP/adjusted financial measures<br>disclosed in this earnings release to<br>the comparable GAAP measures are<br>provided in the accompanying<br>tables.<br>$ thousands, except per share data<br>Q4 2022<br>2021<br>2020<br>2019<br>2018<br>2017<br>Average assets<br>6,283,813<br>$<br>5,724,230<br>$<br>3,863,013<br>$<br>2,846,959<br>$<br>1,951,982<br>$<br>1,524,202<br>$<br>Less: average intangible assets<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>Average tangible assets<br>6,274,080<br>$<br>5,714,497<br>$<br>3,853,280<br>$<br>2,837,226<br>$<br>1,942,249<br>$<br>1,514,469<br>$<br>Average equity<br>595,769<br>$<br>413,212<br>$<br>320,617<br>$<br>282,604<br>$<br>251,030<br>$<br>133,462<br>$<br>Less: Average preferred equity<br>-<br>$<br>4,585<br>$<br>5,502<br>$<br>5,502<br>$<br>5,502<br>$<br>5,502<br>$<br>Average common equity<br>595,769<br>$<br>408,627<br>$<br>315,115<br>$<br>277,102<br>$<br>245,528<br>$<br>127,960<br>$<br>Less: average intangible assets<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>Average tangible common equity<br>586,036<br>$<br>398,894<br>$<br>305,382<br>$<br>267,369<br>$<br>235,795<br>$<br>118,227<br>$<br>Total assets<br>6,267,337<br>$<br>7,116,358<br>$<br>4,330,821<br>$<br>3,357,572<br>$<br>2,182,644<br>$<br>1,759,855<br>$<br>Less: intangible assets<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>Tangible assets<br>6,257,604<br>$<br>7,106,625<br>$<br>4,321,088<br>$<br>3,347,839<br>$<br>2,172,911<br>$<br>1,750,122<br>$<br>Total Equity<br>575,897<br>$<br>556,989<br>$<br>340,787<br>$<br>299,124<br>$<br>264,517<br>$<br>236,884<br>$<br>Less: preferred equity<br>-<br>$<br>-<br>$<br>5,502<br>$<br>5,502<br>$<br>5,502<br>$<br>5,502<br>$<br>Common Equity<br>575,897<br>$<br>556,989<br>$<br>335,285<br>$<br>293,622<br>$<br>259,015<br>$<br>231,382<br>$<br>Less: intangible assets<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>9,733<br>$<br>Tangible common equity (book value)<br>566,164<br>$<br>547,256<br>$<br>325,552<br>$<br>283,889<br>$<br>249,282<br>$<br>221,649<br>$<br>Common shares outstanding<br>10,949,965<br>$<br>10,920,569<br>$<br>8,295,272<br>$<br>8,312,918<br>$<br>8,217,274<br>$<br>8,196,310<br>$<br>Book value per share (GAAP)<br>52.59<br>$<br>51.00<br>40.42<br>35.32<br>31.52<br>28.23<br>Tangible book value per share (non-GAAP)<br>51.70<br>$<br>50.11<br>39.25<br>34.15<br>30.34<br>27.04<br>Total Revenue (GAAP)<br>70,249<br>$<br>180,698<br>$<br>141,924<br>$<br>108,239<br>$<br>83,177<br>$<br>63,382<br>$<br>Less: Gain on sale of securities<br>-<br>$<br>609<br>$<br>3,286<br>$<br>-<br>$<br>(37)<br>$<br>-<br>$<br>Revenue excluding gain on sale of<br>securities (non-GAAP)<br>70,249<br>$<br>180,089<br>$<br>138,638<br>$<br>108,239<br>$<br>83,214<br>$<br>63,382<br>$<br>Non-Interest Income Ratio (non-GAAP)<br>9.04%<br>12.78%<br>9.67%<br>9.82%<br>14.66%<br>17.83%<br>For Year Ending
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Reconciliation of GAAP to Non-GAAP Measures,<br>continued<br>20<br>(1) Impact of adjustments exclude the effect of costs related to the regulatory settlement reserve in the fourth quarter of 2022.<br>(2) For periods less than a year, ratios are annualized.<br>($ in thousands,<br> except per share data)<br>Net income (loss)<br>$(7,740)<br>$24,955<br>$23,189<br>$19,021<br>$18,887<br>$59,425<br>$60,555<br>Impact of adjustments<br>(1)<br>35,000<br><br><br><br><br>35,000<br><br>Adjusted net income (non-GAAP)<br>$27,260<br>$24,955<br>$23,189<br>$19,021<br>$18,887<br>$94,425<br>$60,555<br>Diluted earnings (loss) per common share<br>$(0.71)<br>$<br>2.23<br>$<br>2.07<br>$<br>1.69<br>$<br>1.69<br>$<br>5.29<br>$<br>6.45<br>Impact of adjustments<br>(1)<br>3.14<br><br><br><br><br>3.13<br><br>Adjusted diluted earnings per common<br>share (non-GAAP)<br>$<br>2.43<br>$<br>2.23<br>$<br>2.07<br>$<br>1.69<br>$<br>1.69<br>$<br>8.42<br>$<br>6.45<br>Return on average assets<br> (2)<br>(0.49)<br>%<br>1.51<br>%<br>1.38<br>%<br>1.11<br>%<br>1.10<br>%<br>0.90<br>%<br>1.06<br>Impact of adjustments<br>(1)<br>2.21<br><br><br><br><br>0.53<br><br>Adjusted return on average assets (non-<br>GAAP)<br>1.72<br>%<br>1.51<br>%<br>1.38<br>%<br>1.11<br>%<br>1.10<br>%<br>1.43<br>%<br>1.06<br>Return on average equity<br> (2)<br>(5.2)<br>%<br>16.8<br>%<br>16.4<br>%<br>13.8<br>%<br>13.6<br>%<br>10.3<br>%<br>14.7<br>Impact of adjustments<br>(1)<br>23.3<br><br><br><br><br>6.0<br><br>Adjusted return on average equity (non-<br>GAAP)<br>18.2<br>%<br>16.8<br>%<br>16.4<br>%<br>13.8<br>%<br>13.6<br>%<br>16.3<br>%<br>14.7<br>Return on average tangible common equity<br>(2)<br>(5.2)<br>%<br>17.1<br>%<br>16.7<br>%<br>14.0<br>%<br>13.9<br>%<br>10.4<br>%<br>15.2<br>Impact of adjustments<br>(1)<br>23.7<br><br><br><br><br>6.2<br><br>Adjusted return on average tangible<br>common equity (non-GAAP)<br>18.5<br>%<br>17.1<br>%<br>16.7<br>%<br>14.0<br>%<br>13.9<br>%<br>16.6<br>%<br>15.2<br>Efficiency ratio<br>(2)<br>94.9<br>%<br>45.1<br>%<br>42.2<br>%<br>45.5<br>%<br>44.9<br>%<br>58.2<br>%<br>48.3<br>Impact of adjustments<br>(1)<br>(49.8)<br><br><br><br><br>(13.7)<br><br>Adjusted efficiency ratio (non-GAAP)<br>45.1<br>%<br>45.1<br>%<br>42.2<br>%<br>45.5<br>%<br>44.9<br>%<br>44.5<br>%<br>48.3<br>Quarterly Data<br>Year ended<br>Dec. 31,<br>Sept. 30,<br>Mar. 31,<br>Dec. 31,<br>Dec. 31,<br>Dec. 31,<br>2022<br>2021<br>Jun. 30,<br>2022<br>2022<br>2022<br>2022<br>2021
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$11<br>$34<br>$56<br>$125<br>$172<br>$238<br>$304<br>$360<br>$390<br>$490<br>$494<br>$439<br>$410 $412<br>$494<br>$627<br>$810<br>$1,043<br>$1,405<br>$1,846<br>$2,647<br>$3,101<br>$3,697<br>$4,796<br>199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022<br>Since our founding, we have delivered exceptional<br>core-funded loan growth . . .<br>21<br>Net Loans<br>since December 31, 1999	$ millions<br>Deposits<br>since December 31, 1999	$ millions<br>$10<br>$52<br>$69<br>$126<br>$184<br>$248<br>$316<br>$370<br>$349<br>$438<br>$449<br>$445<br>$464<br>$435<br>$492<br>$616<br>$766<br>$994<br>$1,404<br>$1,661<br>$2,791<br>$3,830<br>$6,435<br>5,278<br>199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022<br>1 CAGR from December 31, 1999 through 2022.
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A Diversified Financial Institution<br>We are More than a Commercial Bank<br>22<br>How We Succeed<br>23-Years of Reliable Asset<br>Quality and Financial<br>Performance<br><br>Organic business loan<br>origination platform<br><br>Core funded organic<br>deposit franchise<br><br>Helping our clients build<br>and sustain generational<br>wealth since 1999<br>Our Strategic Priorities<br>Enhance our<br>position<br>as a leader in the<br>settlement of global<br>and digital payments<br>that brings people around<br>the world closer together.<br>Be the<br>critical financial<br>infrastructure for<br>select fintechs<br>to access<br>our global payments<br>settlement platform.<br>Our Mission<br>To offer a full<br>range of<br>banking and innovative<br>financial services<br>to<br>businesses and individuals<br>embracing the new digital<br>banking era.<br>Serve<br>markets underserved<br>by the ever-consolidating<br>financial services industry<br>and advance our leading-<br>edge model that<br>combines<br>new technologies with<br>the best of traditional<br>banking practices<br>..
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Delivering Critical Financial Infrastructure,<br>Every<br>Day<br>Global Payments Group<br>23<br><br>Domestic and international digital payments settlements,<br>every day<br><br>Gateway to payment networks Wire, ACH, Visa, Mastercard,<br>Remittance,<br>every day<br><br>Custodian of deposits on behalf of clients and their customers,<br>every day<br><br>Sponsorship for select clients as an extension of MCBs expertise<br>and legal authority e.g., money transmitter, issuing bank, lending activities,<br>every day<br><br>Regulatory oversight by experienced MCB bankers with the<br>expertise to deploy and manage regulatory compliance across<br>a broad spectrum of client sectors including fintech, digital<br>payments and money services businesses,<br>every day<br><br>A leading national issuer of third-party debit cards status,<br>every day<br>Digital payment platforms are the<br>underpinnings of<br>E-commerce<br>E-commerce 1.0<br>was about<br>selling goods, starting with<br>Dell.comand Book Stacks<br>Unlimited in the early 1990s.<br>E-commerce 2.0<br>is about buying,<br>selling and connecting a limitless array<br>of products and services with desktop<br>and mobile devices:<br><br>Video, movies, TV programs,<br>music, books, podcasts and<br>news streaming services<br><br>DIY online learning from around<br>the corner to around the world;<br>how to knit to PhD<br><br>Global gig work opportunities<br><br>Tickets to in-person and virtual<br>sporting and entertainment<br>events<br><br>Grocery and prepared meals<br>delivered<br>The list goes on and on...
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Delivering Critical Financial Infrastructure,<br>Every<br>Day<br>24<br>U.S.<br>Treasury<br>Government<br>Payments<br>Pension<br>Companies<br>Public and Private<br>Pension Payments<br>Law<br>Firms<br>Payouts for Legal<br>Settlements<br>Other Load<br>Types<br>MG, WU, GD, VRL,<br>MCR<br>Direct<br>Deposits/<br>ACH Loads<br>Network<br>Loads<br>WU, MG GD<br>Corporate<br>Prefund<br>Adjustment Account<br>Charge Back Disputes<br>or Provisional Credits<br>Program Revenue Account<br>Programs Revenue<br>Operating Account<br>Net Network Settlement<br>Cardholder Activity<br>MCB Settlement Account<br>Net of Fees (Program Earnings<br>and Expenses)<br>MCB Pooled Funds Account<br>MCB Revenue Account<br>MCBs Revenue<br>MCB Reserve Account<br>Extraordinary Events<br>MCB Prepaid Invoice<br>Account<br>External Activity<br>MCB Owned<br>Program Owned<br>Moved by External Party<br>Moved by MCB<br>MCB Clients<br>Moved by External Party<br>Global Payments Group
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Client Case Study<br>Global Payments Group<br>25<br>The B2B and B2C<br>infrastructure Broxel has<br>built in Mexico combined<br>with MCBs total support<br>infrastructure in the United<br>States is the blueprint for<br>our mutual success.<br>Gustavo Gutierrez<br>Broxel<br>Overview<br>Broxel is a FinTech leader founded in 2011 and based in Mexico City, Mexico. The Company is an innovator of<br>tailor-made payments solutions that create efficient, agile, disruptive and available financial B2B and B2C<br>ecosystems anywhere in the world.<br>broxel.com/us-en/<br>Leadership<br>Gustavo Gutierrez,<br>CEO and Founder<br>Vision<br>We will transform money into something more valuable.<br>Markets<br>Mexico, United States Hispanic<br>Primary Business<br>Broxel offers prepaid debit cards and a mobile app that accepts direct deposits and can make payments<br>online and at retail locations in MXN and USD. Broxel is a Mexican company that is always looking out for the<br>Hispanic community living in the United States.<br>Metropolitan<br>Commercial Bank<br>Global Payments Group<br><br>Broxel has been a client since 2018<br><br>Mobile app-based bank account and card that works as a remittance product
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Client Case Study<br>Global Payments Group<br>26<br>CIBanco<br>Overview<br>Consultora Internacional (CI) was established in 1983 and became known as CIBanco in 2008.<br>CIBanco became a signatory of the Equator Principles from the World Bank in 2012 in response to the<br>environmental challenges that the world is facing. Aligned with a renewed corporate philosophy CIBanco<br>became the first green bank in Mexico to provide sustainable financial solutions.<br>CIBanco, CICasa de Bolsa, CIFondos de Inversion, Finamadrid, are wholly-owned subsidiaries of Tenedora CI, S.<br>A. de C.V. Financial Group.<br>cibanco.com<br>Leadership<br>Jorge Rangel de Alba Brunel,<br>Chairman of the Board<br>Norman Hagemeister Rey,<br>Chief Executive Director and Board Member<br>Luis Miguel Osio Barroso,<br>Chief Executive Director and Board Member<br>Salvador Arroyo Rodriguez,<br>Chief Executive Director and Board Member<br>Mario Maciel Castro,<br>CEO<br>Vision<br>To stand apart from traditional vertically integrated banks in specific niches that favor sustainability through<br>unparalleled service, reliability, security and leadership.<br>Markets<br>Mexico, United States Hispanic	Spain and Latin America<br>Primary Business<br>Mexico-<br>based bank providing banked, unbanked and underbanked financial service, leaders in Trust Funds, FX<br>& Foreign Trade Units.<br>Financial services including auto loans, trust funds, online and mobile banking, currency and investment<br>options, and lines of credit, in and outside of Mexico.<br>CIBanco serves SME, large and corporate entities and individuals providing all financial services, settling<br>electronic and wire transfers from and to the U.S.; thanks to its export and import profile and the<br>commercial relevance between both countries and the world.<br>Metropolitan<br>Commercial Bank<br>Global Payments Group<br><br>CIBanco has been a client since 2019<br><br>Mobile app-based bank account and card that works as a remittance product<br>Metropolitan Commercial<br>Bank has demonstrated from<br>the very beginning and<br>throughout the journey,<br>collaboration between<br>institutions outside the<br>transactional scope suggests a<br>long-term relationship, in<br>which there is trust to point<br>out everything right or wrong;<br>seeking to consolidate a<br>bilateral and joint reputation.<br>It is not every day you have the<br>openness and willingness to<br>grow and mature with a<br>partner who is on your side<br>while committing to each<br>entity daily.<br>Luis Miguel Osio Barroso
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Client Case Study<br>Global Payments Group<br>27<br>Mesh Payments<br>Overview<br>Corporate HQ New York, NY, International office Tel Aviv, Israel; 20+ employees, privately held company<br>founded in 2018 with VC backers and a recent round of favorable financing; strong growth in the virtual card<br>space, which is a fraction of the corporate card space.<br>meshpayments.com<br>Leadership<br>Globally recognized payment and technology leaders.<br>Oded Zehavi,<br>CEO and Co-founder<br><br>Before Mesh: COO, Kaymera Technologies; Payoneer, Chief Revenue Officer; PayPal,<br>Director Global Business Development<br><br>Board Member: ReWire.tp; Advisory Board Member: Fiverr, AU10TIX, CreditStacks<br>Vision<br>Re-writing the way corporate payments are made. One-stop hub to orchestrate, manage, analyze and<br>optimize, reconcile, and reduce their corporate spend and subscription payments.<br>Markets<br>Global B2B cardlesspayments.<br>Primary Business<br>Cardless corporate payments solutions via virtual cards<br><br>SaaS (software as a service) subscriptions<br><br>On-Demand to employees and gig workers<br><br>Payment intelligence manage corporate spending and protect companies from failed payment risks<br><br>Receipt Automation collects and matches digital receipts automatically for all tracked payments.<br><br>Accounting Integrations works with existing accounting software<br>Metropolitan<br>Commercial Bank<br>Global Payments Group<br><br>Mesh Payments has been a client since 2018<br><br>MCB holds deposits on behalf of Mesh Payments clients<br><br>MCB provides Mesh Payments with access to ACH and wire payment systems<br><br>MCB sponsors Mesh Payments Visa branded virtual cards<br><br>Metropolitan Commercial<br>Bank checks all the boxes<br>when it comes to innovation<br>mindset and execution and<br>strong relationships and<br>fintech support.<br>Oded Zehavi
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Client Case Study<br>Global Payments Group<br>28<br>Revolut<br>Overview<br><br>A global fintech financial services company<br><br>Corporate HQ London, England<br><br>International offices including Asia, Europe and Oceania<br><br>North American offices, San Francisco, CA and New York, NY<br><br>2,000+ employees<br>revolut.com/en-US<br>Leadership<br>Revolut,<br>Martin Gilbert, Chairman; Nik Storonsky, CEO and Co-founder; Vlad Yatsenko, CTO and Co-founder<br>Revolut USA,<br>Ronald Oliveira, CEO since November 2019<br>The Companys executive leadership is a Whos Who of global fintech and finance superstars.<br>Vision<br>Revolut is building the worlds first truly global financial super app.<br>Markets<br>Global, individuals and businesses<br>Primary Business<br>Around the world use dozens of Revoluts innovative banking, investment and wealth management products to<br>make more than 100 million transactions a month.<br>Across Revoluts personal and business accounts, the Company helps customers improve their financial health,<br>give them more control, and connect people seamlessly across the world.<br>Metropolitan<br>Commercial Bank<br>Global Payments Group<br><br>Revolut has been a client since 2018<br><br>MCB holds deposits on behalf of Revoluts clients<br><br>MCB provides Revolut with:<br><br>Access to ACH and wire payment systems<br><br>Correspondent relationships for FX services<br><br>Tailored solutions for Revolut clients in other jurisdictions<br><br>MCB sponsors Revolut card processing services for its Visa and MasterCard products<br><br>Metropolitan Commercial<br>Bank is not only a bank with<br>excellent financial health, a<br>deep bench of experienced<br>fintech bankers and a track<br>record across a wide arena of<br>fintech sectors, their people<br>listen and are open to new and<br>interesting banking solutions.<br>Ronald Oliveira
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Partner with the Leading Processors and<br>Payment Processing Networks,<br>Every Day<br>Global Payments Group<br>29<br>Leading Processors<br>Leading Payment Processing Networks
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Who Are Our Payment Clients?<br>30<br>Global Payments Group
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Engaging in Our Diverse Digital Payment<br>Products Ecosystem, Every Day<br>Global Payments Group<br>31<br>Illustrative photography and captions, not actual customers.<br>Accounts Payable/<br>Expense Management<br>ACH Processing and<br>Settlement<br>Bill<br>Payment<br>Card Present<br>Debit Card<br>Claim Handling and<br>Processing<br>E-Wallet<br>Debit Card<br>Government Benefits<br>Settlement<br>International<br>Remittance<br>Loan Advance /<br>Payment Settlement<br>Mobile Payment<br>Settlement<br>Due cappuccino date night with<br>my prefunded e-wallet watch<br>app in Naples, Italy.<br>I dont know how its done but I<br>am glad my phone helps me<br>travel around with ease.<br>Peer-To-Peer (P2P)<br>Payments<br>Push Payments Real Time<br>Domestic and International<br>Rebate<br>Settlement<br>Virtual<br>Debit Card<br>Credit score is up so now I can<br>get approved for a new car and<br>visit my folks in Ontario.<br>Sent my sister money to<br>pay for books at St. Georges<br>University in Granada.<br>My benefit payments arrive<br>like clockwork to my debit card<br>every month. Easy peazy.<br>Morning coffee with my<br>loyalty rewards prepaid debit<br>card in Seattle, Washington.<br>Paying in for Sallys wedding gift<br>was easier than deciding what<br>the gift should be.<br>Traded in my wallet for paying<br>mobile. More space in my purse<br>for makeup.<br>Foreign travel is exciting,<br>not having to think about<br>exchange rates is joyful.<br>Now I can view and comment on<br>everyones expenses no matter<br>where they are.<br>This auto insurance claim<br>app is a snap to use. No more<br>needless repair estimates.<br>I really enjoy the security of my<br>debit card over cash. A feeling of<br>safety I was missing.<br>Check writing, stamps, check<br>registers, so yesterday. Billpayapp<br>happy to meet you.<br>Our international business runs<br>smoother when we are paid<br>digitally.
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Establishing Our Place in a Diverse Digital<br>Payment Industry Complex, Every Day<br>Global Payments Group<br>32<br>Illustrative photography and captions, not actual customers.<br>Auto<br>Consumer<br>Lending<br>Corporate Accounts Payable<br>Management<br>Corporate<br>Payroll<br>Correspondent<br>Banking<br>Criminal Justice<br>and Corrections<br>Financial Services to the<br>Unbanked/Underbanked<br>Foreign<br>Exchange<br>Government<br>Payments<br>Healthcare<br>Co-Pay<br>Hospitality<br>Mobile<br>Banking<br>Online<br>Gambling<br>Online<br>Gaming<br>Travel<br>Trucking<br>Pharmaceutical<br>Prepaid<br>Phonecards
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