Metropolitan Bank Holding Corp. to Exit Crypto-Asset Related Vertical
January 09 2023 - 6:05AM
Business Wire
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the
holding company for Metropolitan Commercial Bank, today announced
that it will fully exit the crypto-asset related vertical. This
decision follows a careful review by the Board of Directors and
management and reflects recent developments in the crypto-asset
industry, material changes in the regulatory environment regarding
banks’ involvement in crypto-asset related businesses, and a
strategic assessment of the business case for MCB’s further
involvement at this time.
The Company expects minimal financial impact from the exit of
this vertical. MCB currently has four active institutional
crypto-asset related clients that in the aggregate currently
account for approximately 1.5% of total revenues and 6% of total
deposits. MCB’s relationships with these clients are limited to
providing debit card, payment and account services. The Company has
no loans outstanding to any of these clients, does not hold
crypto-assets on its balance sheet and does not market or sell
crypto-assets to its customers. MCB has commenced the process of
closing out its relationships with these clients in an orderly
fashion and expects that process to be completed during 2023. This
determination will not affect customers’ existing ability to send
funds to, or receive funds from, crypto-asset companies they choose
to do business with, or MCB’s service to customers that do not have
crypto-asset related activity as a principal line of business.
“Today’s announcement of our exit from the crypto-currency
related asset vertical represents the culmination of a process that
began in 2017, when we decided to pivot away from crypto and not
grow the business,” said Mark R. DeFazio, President and CEO of MCB.
“Crypto-related clients, assets and deposits have never represented
a material portion of the Company’s business and have never exposed
the Company to material financial risks. We remain focused on
growing our core business and delivering superior value for all of
our stakeholders through high-touch, relationship-driven banking,
supported by financial discipline and sound risk management.”
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, 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, the current or anticipated impact of military
conflict, terrorism or other geopolitical events 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230109005186/en/
Greg Sigrist EVP & Chief Financial Officer Metropolitan
Commercial Bank (212) 365-6721 IR@MCBankNY.com
Metropolitan Bank (NYSE:MCB)
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