Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and individuals primarily in the New York metropolitan area.
By combining high-tech service with the relationship-based focus of a community bank and offering an extensive suite of financial products and services, the company is well-positi...
Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and individuals primarily in the New York metropolitan area.
By combining high-tech service with the relationship-based focus of a community bank and offering an extensive suite of financial products and services, the company is well-positioned to continue to capitalize on the significant growth opportunities available in the New York metropolitan area and elsewhere.
In addition to traditional commercial banking products, the company offers: corporate cash management and retail banking services; customized financial solutions for government entities, municipalities, public institutions and charter schools; specialized services to facilitate secure and efficient real estate transactions and tax-deferred exchanges for title and escrow and Section 1031 exchanges; and EB-5 Program accounts for qualified foreign investors. In 2024, the company exited the GPG BaaS business, and only residual operational tasks remain to be completed.
The company has developed various deposit gathering strategies, which generate the funding necessary to operate without a large branch network. These activities, together with six strategically located banking centers, generate a stable source of deposits to fund a diverse loan portfolio with attractive risk-adjusted yields.
As a bank holding company, the company is subject to the supervision of the Board of Governors of the Federal Reserve System. The company is required to file with the FRB reports and other information regarding its business operations and the business operations of its subsidiaries. As a state-chartered bank that is a member of the FRB, the bank is subject to FDIC regulations, as well as supervision, periodic examination and regulation by the NYSDFS as its primary state regulator and by the FRB as its primary federal regulator.
Market Area
The company’s primary market includes the New York metropolitan area, specifically Manhattan and the outer boroughs, and Nassau County, New York.
The company’s market area has a diversified economy typical of most urban population centers, with the majority of employment provided by services, wholesale/retail trade, finance/insurance/real estate, technology companies and construction. A relationship-led strategy has provided the company with select opportunities in other U.S. markets, with a particular focus on South Florida.
The company operates various banking centers strategically located within close proximity to target clients. Its banking centers are located in Manhattan, in Brooklyn, New York, and in Great Neck, Long Island. The 99 Park Avenue banking center, adjacent to the company headquarters, is located at the center of one of the largest markets for bank deposits in the New York Metropolitan Statistical Area due to the abundance of corporate and high net worth clients. The Manhattan banking centers are centrally located in the heart of neighborhoods notably associated with specific business sectors with which the company has strong existing relationships. The Brooklyn banking center is in the active Boro Park neighborhood, which is home to many small- and medium-sized businesses, and where several important existing lending clients live and work. The banking center in Great Neck, Long Island represents a natural extension of the company’s efforts to establish a physical footprint in areas where many of its existing and prospective commercial clients are located, and also serves as a central hub for philanthropic and community events. The company also has a loan production office in Miami, Florida and an administrative office in Lakewood, New Jersey.
Business Strategy
The company’s strategy is to continue to build a relationship-oriented commercial bank by organically growing its existing client relationships and developing new long-term clients. The company focuses on the New York metropolitan area middle-market businesses with annual revenues of $400 million or less and the New York metropolitan area real estate entrepreneurs with a net worth of $50 million or more. The company originates and services CRE and C&I loans of generally between $3 million and $30 million, which is an under-served segment of the market.
Products and Services
The company provides a comprehensive set of commercial and retail banking products and services customized to meet the needs of its clients. The company offers a broad range of lending products, with a primary focus on CRE and C&I loans.
Lending Products
The company’s CRE products include acquisition loans, loans to refinance or return borrower equity on income producing properties, renovation loans, loans on owner-occupied properties and construction loans. The company lends against a variety of asset classes, including skilled nursing facilities, healthcare, multi-family, office, hospitality, mixed use, retail, and warehouse.
The company’s C&I products consist primarily of working capital lines of credit secured by business assets, self-liquidating term loans generally made for the acquisition of equipment and other long-lived company assets, trade finance and letters of credit. The majority of C&I loans carry the personal guarantee of the principals of the borrowing entity.
Commercial Real Estate
Non-owner occupied CRE comprises the largest component of the company’s real estate loan portfolio. These mortgage loans are secured by mixed-use properties, office buildings, commercial condominium units, retail properties, hotels and warehouses. In underwriting these loans, the company generally relies on the income generated by the property as the primary means of repayment. However, the personal guarantee of the principals will frequently be required as a credit enhancement, particularly when the collateral property is in transition (i.e., under renovation and/or in the lease-up stage). A Phase I Environmental Report is generally required for all new CRE loans.
Loans are generally written for terms of three to five years, although loans with longer or shorter terms are occasionally written. Interest rates may be fixed or floating, and repayment schedules are generally based on a 25- to 30-year amortization schedule, although interest only loans are also offered.
At December 31, 2024, 38.8% of the company’s real estate loan portfolio consisted of loans to the healthcare industry, which were primarily made to nursing and residential care facilities. The company has lenders who are experienced in lending to the healthcare industry, particularly to skilled nursing homes. They generally originate loans to borrowers with strong cash flows from diverse sources and who are very experienced operators that typically have over 1,000 beds under management. In addition to being secured by real estate, these loans are generally secured by the assets of the operating company, and in almost all cases the credit facilities are personally guaranteed by principals of the company, who are typically high net worth individuals. The company also originates term loans to standalone medical facilities, such as radiology and dialysis centers and medical practices, which are generally secured by the assets of the company and the personal guaranties of the sponsors/owners of the practice.
Multi-family
The multi-family loan portfolio consists of loans secured by multi-tenanted residential properties primarily located in New York City or the Greater New York area. In underwriting multi-family loans, the company employs the same underwriting standards and procedures as are employed for non-owner occupied CRE.
Construction Loans
Construction lending involves additional risks when compared to permanent loans. These risks include completion risk, which could be impacted by unanticipated delays and/or cost overruns, and market risk, i.e., the risk that market rental rates and/or market sales prices may decline before the project is completed. Therefore, the company only originates construction loans on a very selective basis. Generally, the types of construction loans the company originates include extensive renovation loans, as well as ground-up construction loans. At December 31, 2024, construction loans comprised 3.4% of the company’s loan portfolio.
Commercial and Industrial Loans
C&I credit facilities are made to a wide range of industries. The principals of the companies have extensive experience in acquiring and operating their business. The industries include healthcare with a specialty in skilled nursing facilities, auto leasing firms, wholesalers, manufacturers and importers and exporters of a wide range of products. The loans are secured by the assets of the company, including accounts receivable, inventory and equipment and, in most cases, are personally guaranteed. Collateral may also include owner-occupied real estate. The company targets companies that have $400 million of revenues or less.
The company’s lines of credit are generally reviewed on an annual basis. Term loans typically have terms of two to five years and are also reviewed on an annual basis. The credit facilities may be made with either fixed or floating rates.
At December 31, 2024, 33.9% of the company’s C&I loan portfolio consisted of loans to the healthcare industry, of which 67.0% were made to nursing and residential care facilities. Within the C&I lending group, the company has lenders who are experienced in lending to the healthcare industry, particularly to skilled nursing homes. They generally originate loans to borrowers with strong cash flows from diverse sources and who are very experienced operators that typically have over 1,000 beds under management. In all cases these loans are secured by the assets of the operating company, and in almost all cases the credit facilities are personally guaranteed by principals of the company, who are typically high net worth individuals. The company also originates term loans to standalone medical facilities, such as radiology and dialysis centers and medical practices, which are secured by the assets of the company and the personal guarantees of the sponsors/owners of the practice.
Deposit Products and Services
The company’s retail products and services are similar to those of mid-to-large banks in its market, and include, but are not limited to, online banking, mobile banking, ACH, and remote deposit capture. The company has made, and will continue to make, investments in technology to meet the needs of its customers. Deposit funding is provided by the following deposit verticals:
Borrowing Clients – The company generates significant deposits from its borrowing clients. The company provides commercial clients with convenient solutions such as remote deposit capture, business online banking and various other retail services and products. The company will attempt to continue to convert lending clients into full retail clients and thereby continue to expand its retail presence.
Non-borrowing Retail Banking Products and Services Clients – These customers, located primarily in the New York City metropolitan area, need an efficient technology interface and the personal service of an experienced banker who can assist them in managing their day-to-day operations using the company’s retail banking products and services. Management understands that not every potential client of the company is in need of an extension of credit; instead, these clients require a bank that can assist in making them more efficient and competitive.
Corporate Cash Management Clients – The company provides corporate cash management services to clients who are in possession of, or have discretion over, large deposits such as, but not limited to, property management companies, title companies and bankruptcy trustees.
Government Entities, Municipalities and Other Local Entities – The company provides customized financial solutions for government entities, municipalities, public institutions, and charter schools to help them reach their strategic objectives.
EB-5 Program Accounts – The EB-5 Program, administered by the U.S. Citizenship and Immigration Services, allows qualified foreign investors who meet specific capital investment and other requirements to obtain permanent residency and become contributors to the U.S. communities.
Title and Escrow – The company provides specialized services designed to facilitate secure and efficient real estate transactions and tax-deferred exchanges for title and escrow, Section 1031 exchanges, and qualified intermediary needs.
Global Payments Business
In 2023, the company completed the exit from the business associated with digital currency entities, commonly referred to as the crypto-asset business. In 2024, the company exited the GPG BaaS business, and only residual operational tasks remain to be completed.
Sources of Funds
Deposits
Deposits have traditionally been the company’s primary source of funds for use in lending and investment activities. The company generates deposits from: traditional commercial banking products offered to borrowing and non-borrowing clients; corporate cash management and retail banking services; tailored financial solutions for government entities, municipalities, and public institutions; specialized services to facilitate secure and efficient real estate transactions and tax-deferred exchanges for title and escrow and Section 1031 exchanges; and EB-5 Program accounts for qualified foreign investors.
Securities
At December 31, 2024, the company’s investment portfolio primarily consisted of government agency residential mortgage-backed securities, and to a lesser extent, the U.S. Government Agency and treasury securities, government agency commercial mortgage-backed securities, and municipal securities.
Regulation
As a bank holding company, the company is subject to the supervision of the Board of Governors of the Federal Reserve System. The company is required to file with the FRB reports and other information regarding its business operations and the business operations of its subsidiaries.
As a state-chartered bank that is a member of the FRB, the bank is subject to FDIC regulations, as well as primary supervision, periodic examination and regulation by the NYSDFS as its state regulator and by the FRB as its primary federal regulator.
The bank is a commercial bank organized under the laws of the state of New York. It is a member of the Federal Reserve System and its deposits are insured under the DIF of the FDIC up to applicable legal limits.
The company is subject to extensive regulation, supervision and examination by, and the enforcement authority of, the NYSDFS and FRB, and to a lesser extent by the FDIC, as its deposit insurer. The company is also subject to federal financial consumer protection and fair lending laws and regulations of the CFPB, though, because it has less than $10 billion in total consolidated assets, the FRB and NYSDFS are responsible for examining and supervising the company’s compliance with these laws.
Sections 23A and 23B of the Federal Reserve Act govern transactions between an insured depository institution and its affiliates, which includes the company.
Under the CRA, the company has a continuing and affirmative obligation consistent with its safe and sound operation to help meet the credit needs of its entire community, including low- and moderate-income neighborhoods.
The company is also subject to provisions of the New York State Banking Law that impose continuing and affirmative obligations upon a banking institution organized in New York State to serve the credit needs of its local community.
The company is subject to the BSA, which incorporates several laws, including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, or the USA PATRIOT Act and related regulations.
While the company is subject to the CFPB regulations, because it has less than $10 billion in total consolidated assets, the FRB and the NYSDFS are responsible for examining and supervising the company’s compliance with these consumer financial laws and regulations.
The company’s operations are also subject to federal laws applicable to credit transactions, such as The Truth-In-Lending Act and Regulation Z promulgated thereunder, governing disclosures of credit terms to consumer borrowers; The Real Estate Settlement Procedures Act and Regulation X promulgated thereunder, requiring that borrowers for mortgage loans for one-to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; The Home Mortgage Disclosure Act and Regulation C promulgated thereunder, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; The Equal Credit Opportunity Act and Regulation B promulgated thereunder, and other fair lending laws, prohibiting discrimination on the basis of race, religion, sex and other prohibited factors in extending credit; The Fair Credit Reporting Act, governing the use of credit reports on consumers and the provision of information to credit reporting agencies; Unfair or Deceptive or Abusive Acts or Practices laws and regulations; The Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; The Coronavirus Aid, Relief and Economic Security Act; and The rules and regulations of the various federal agencies charged with responsibility for implementing such federal laws.
The operations of the company is further subject to: The Truth in Savings Act and Regulation DD promulgated thereunder, which specifies disclosure requirements with respect to deposit accounts; The Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; The Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; The Check Clearing for the 21st Century Act (also known as ‘Check 21’), which gives ‘substitute checks,’ such as digital check images and copies made from that image, the same legal standing as the original paper check; State unclaimed property or escheatment laws; and Cybersecurity regulations, including but not limited to those implemented by NYSDFS.
The company is a reporting company subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
The Sarbanes-Oxley Act of 2002 is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws. The company has policies, procedures and systems designed to comply with these regulations, and it reviews and documents such policies, procedures and systems to monitor its compliance with these regulations.
History
Metropolitan Bank Holding Corp. was incorporated in 1997.
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