Business Wire | Jan 20, 2022 04:05PM EST

Metropolitan Bank Holding Corp. Reports Record Quarterly and Annual Net Income

Jan. 20, 2022

NEW YORK--(BUSINESS WIRE)--Jan. 20, 2022--Metropolitan Bank Holding Corp. (the "Company") (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $18.9 million, or $1.69 per diluted common share, for the fourth quarter of 2021 compared to net income of $11.8 million, or $1.39 per diluted common share, for the fourth quarter of 2020. Net income for the year 2021 was $60.6 million, or $6.45 per diluted common share, compared to net income of $39.5 million, or $4.66 per diluted common share, for the year 2020.

Financial Highlights include:

For the Full Year 2021:

* Total revenues of $180.7 million, up 27.3%. * Net income of $60.6 million, up 53.4%. * Diluted earnings per share of $6.45, up 38.4%. * Loans totaled $3.7 billion, up 19.0%. Loan originations of $1.2 billion for 2021 compared to $687 million for 2020. * Deposits were $6.4 billion, up 68.0%. Non-interest-bearing demand deposits increased to $3.7 billion, up 112.5%. * Common equity offering at a price of $75.00 per share completed in September 2021, which raised net proceeds of $163 million. * Book value per share was $50.98 per share, up 26.1%, and tangible book value per share1 was $50.09, up 27.6%. * Return on average equity of 14.7% and return on average tangible common equity (ROATCE)1 of 15.2%. * Efficiency ratio1 improved to 48.3% compared to 52.5% from the prior year.

Fourth Quarter of 2021 Compared to the Prior Linked Quarter:

* Total revenues of $51.9 million, up 11.1%. * Net income of $18.9 million, up 16.5%. * Loans totaled $3.7 billion, up 3.6%. * Deposits were $6.4 billion, up 17.9%. * Annualized return on average equity of 13.6% and annualized ROATCE1 of 13.9%.

Mark DeFazio, President and Chief Executive Officer, commented, "2021 was a breakout year for MCB that underscores our sustained performance. Being recognized in Fortune's 100 Fastest Growing Companies in 2021 highlights the success we have had in growing both the commercial bank and our Global Payments business, which was evident from the strong growth in loans and deposits as well as the expansion of Global Payments revenues from the banking-as-a-service we provide to our fintech partners. I could not be more proud of the men and women who show up in person every day and make this possible. I would also like to thank our board of directors for their support and guidance."

Balance Sheet

The Company had total assets of $7.1 billion at December 31, 2021, an increase of 15.9% from September 30, 2021. Total loans, net of deferred fees and unamortized costs, increased $129 million, or 3.6%, from the prior linked quarter to $3.7 billion. The increase in total loans was due primarily to an increase of $110 million in commercial real estate ("CRE") loans (including owner occupied) and $43 million in commercial and industrial loans. Loan production was $411 million for the fourth quarter of 2021, compared to $313 million for the prior linked quarter. Loans of $18 million were transferred to held-for-sale and sold in the fourth quarter.

Total assets increased 64.3% from December 31, 2020. Total loans, net of deferred fees and unamortized costs, increased to $3.7 billion at December 31, 2021, an increase of 19.0%, as compared to $3.1 billion at December 31, 2020. The increase in total loans was due primarily to an increase of $601 million in CRE loans (including owner occupied) and $63 million in commercial and industrial loans. Loan production was $1.2 billion for the year 2021 compared to $687 million for the year 2020.

Total cash and cash equivalents were $2.4 billion at December 31, 2021, an increase of $502 million, or 27.0% from September 30, 2021, and $1.5 billion, or 173.0%, from December 31, 2020. The increase in cash and cash equivalents reflected the strong growth in deposits as well as the cash received from the issuance of common stock during the third quarter of 2021.

Total securities were $951 million at December 31, 2021, an increase of 56.5% from September 30, 2021, and 250.7% from December 31, 2020, due primarily to the deployment of excess liquidity from deposit growth.

Total deposits increased $978 million to $6.4 billion at December 31, 2021, up 17.9% from September 30, 2021. The increase in deposits was due primarily to an increase in non-interest-bearing demand deposits from Global Payments Group clients. Total deposits increased $2.6 billion, up 68.0% from December 31, 2020. The increase in deposits from December 31, 2020, was due to increases of $1.9 billion in non-interest-bearing demand deposits and $663 million in interest-bearing deposits, resulting from increases across most deposit verticals.

Non-interest-bearing demand deposits were 57.0% of total deposits at December 31, 2021, as compared to 51.4% and 45.1% at September 30, 2021, and December 31, 2020, respectively.

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 343.4% of total risk-based capital at December 31, 2021, compared to 412.5% of total risk-based capital at December 31, 2020.

Income Statement

Financial Highlights



(dollars inthousands, except Three Months Ended Twelve Months Endedper share data)

Dec 31, Sept 30, Dec 31, Dec 31,

2021 2021 2020 2021 2020

Total revenues $ 51,867 $ 46,683 $ 36,840 $ 180,698 $ 141,924

Net income 18,887 16,215 11,775 60,555 39,466

Diluted earnings per 1.69 1.77 1.39 6.45 4.66 common share

Return on average 1.10 % 1.09 % 1.13 % 1.06 % 1.02 %assets ^(1)

Return on average 13.57 % 16.30 % 13.94 % 14.65 % 12.31 %equity ^(1)

Return on averagetangible common 13.86 % 16.95 % 14.61 % 15.18 % 12.92 %equity ^(1), (2)

________________________________

(1) For periods less than a year, ratios are annualized.(2) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measuresstarting on page 14.

Net Interest Income

Net interest income for the fourth quarter of 2021 was $44.8 million, an increase of $4.0 million from the prior linked quarter. This increase was primarily due to a higher average balance of $855 million in interest-earning assets, particularly in loans, held-to-maturity securities, and overnight deposits for the fourth quarter of 2021, which increased $128 million, $190 million and $477 million from the prior linked quarter, respectively.

Net interest income for the year 2021 was $157.0 million, an increase of $32.1 million from the prior year. This increase was primarily due to a higher average balance of $1.8 billion in interest-earning assets, particularly in loans and securities, which increased $560 million and $344 million from the prior year, respectively.

Net Interest Margin

Net interest margin decreased by 11 basis points to 2.59% for the fourth quarter of 2021, as compared to 2.70% for the prior linked quarter, primarily due to the increase in lower yielding overnight deposits driven by deposit growth. This was partially offset by an increase in loan yields which were up on elevated fees from loan payoffs, securities yields which were up due to new securities purchases at higher yields, and a modest decline in the average cost of interest-bearing liabilities.

Net interest margin decreased by 49 basis points to 2.77% for the year 2021, as compared to 3.26% for the prior year primarily due to the increase in lower-yielding overnight deposits driven by deposit growth and the decrease in yields on securities driven by the lower rate environment. This was partially offset by a decrease of 25 basis points in the average cost of interest-bearing liabilities driven by the lower rate environment.

Total cost of funds declined 3 basis points to 28 basis points for the fourth quarter of 2021 as compared to the prior linked quarter, driven by the shift toward non-interest bearing deposits as well as a decrease in cost of interest-bearing deposits.

Non-Interest Income

Non-interest income was $7.1 million for the fourth quarter of 2021, an increase of $1.2 million from the prior linked quarter driven primarily by the increase of $1.4 million in Global payments revenue from underlying client transaction volumes.

Non-interest income for the year 2021 increased by $6.7 million, as compared to the prior year, primarily due to an increase of $8.0 million in Global Payments Group revenue. This was partially offset by a decrease of $2.7 million in gain on sale of securities.

Non-Interest Expense

Non-interest expense was $23.3 million for the fourth quarter of 2021, an increase of $1.3 million from the prior linked quarter primarily driven by increased compensation and benefits and technology costs, which were in line with revenue growth and transaction volumes, respectively.

Non-interest expense increased $12.8 million, as compared to the prior year. Drivers included an increase in compensation and benefits costs due to additional full-time employees and an increase in professional fees and technology costs in line with revenue growth. This was partially offset by reduced licensing fees.

The estimated effective tax rate for the year ended December 31, 2021, was 32.4% compared to 31.9% for the year ended December 31, 2020.

Asset Quality

Credit quality remains strong as non-performing loans to total loans decreased to 0.28% at December 31, 2021, from 0.43% at September 30, 2021. During the fourth quarter of 2021, the Company recorded a provision of $0.5 million, which reflected loan growth and losses on transfers of loans to held for sale of $0.8 million. This was partially offset by a reduction in the provision of $1.4 million related to a reduction in non-performing consumer loans. Additionally, the Company recorded net charge-offs in the fourth quarter of $3.9 million which primarily related to one shared national credit loan of $3.1 million that had been substantially reserved for in 2020, as well as $0.8 million related to the loans transferred to held-for-sale.

The Company recorded a provision of $3.8 million for the full year 2021. Additionally, the Company recorded net charge-offs in 2021 of $4.5 million, which primarily related to one shared national credit loan of $3.1 million and two C&I loans in the amount of $0.9 million, which had been substantially reserved for in 2020, as well as $0.8 million related to the loans transferred to held for sale. Net charge-offs as a percentage of average loans for the full year 2021 were 13 basis points.

COVID-19 related full payment deferrals remained steady at $10.0 million, or 27 basis points of total loans as of December 31, 2021. Principal only deferrals were $39.2 million, or 1.05% of total loans, as of December 31, 2021.

Conference Call

The Company will conduct a conference call at 9:00 a.m. Eastern time on Friday, January 21, 2022, to discuss fourth quarter 2021 and full year 2021 results. To access the event by telephone, please dial 866-342-8591 (US), 203-518-9713 (INTL), and provide conference ID: MCBQ421 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 which 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") that include: domestic and international clients; digital payments settlements; gateway to payment networks; custodian of deposits; regulatory and compliance oversight; global settlement agent for crypto exchanges and a leading national issuer of third-party debit cards. The Bank operates banking centers in New York City and on Long Island in New York State and has been ranked as one of the 100 Fastest-Growing Companies by Fortune. The Bank is a New York State chartered commercial bank and a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal opportunity 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 an unexpected deterioration in our loan or securities portfolios, unexpected increases in our expenses, greater than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, 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, unanticipated increases in FDIC costs, changes in regulations, legislation or tax or accounting rules 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.

Further, given its ongoing and dynamic nature, including the rate of vaccine acceptance and the development of new variants, it is difficult to predict the continued impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy worsens, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our cyber security risks may increase if a significant number of our employees are forced to work remotely; and FDIC premiums may increase if the agency experiences additional resolution costs. 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.

Consolidated Balance Sheet (unaudited)



(in thousands) Dec 31, 2021 Sept 30, 2021 June 30, 2021 Mar 31, 2021 Dec 31, 2020

Assets

Cash and due from $ 28,864 $ 32,660 $ 29,651 $ 9,432 $ 8,692 banks

Overnight deposits 2,330,486 1,824,820 1,689,614 1,125,589 855,613

Total cash and cash 2,359,350 1,857,480 1,719,265 1,135,021 864,305 equivalents

Investmentsecurities available 566,624 603,168 543,769 479,988 266,096 for sale

Investmentsecurities held to 382,099 2,017 2,222 2,492 2,760 maturity

Investmentsecurities -- Equity 2,273 2,289 2,291 2,281 2,313 investments

Total securities 950,996 607,474 548,282 484,761 271,169

Other investments 11,998 11,998 11,989 11,638 11,597

Loans, net ofdeferred fees and 3,731,929 3,603,288 3,449,490 3,237,664 3,137,053 unamortized costs

Allowance for loan (34,729 ) (38,121 ) (37,377 ) (35,502 ) (35,407 )losses

Net loans 3,697,200 3,565,167 3,412,113 3,202,162 3,101,646

Receivables fromglobal payments 39,864 48,302 40,091 38,356 27,259 business, net

Accrued interest 15,195 13,504 14,424 13,982 13,249 receivable

Premises and 15,116 14,031 13,337 13,756 13,475 equipment, net

Prepaid expenses and 16,906 13,565 17,959 13,392 18,388 other assets

Goodwill 9,733 9,733 9,733 9,733 9,733

Total assets $ 7,116,358 $ 6,141,254 $ 5,787,193 $ 4,922,801 $ 4,330,821

Liabilities and Stockholders' Equity

Deposits:

Non-interest-bearing $ 3,668,673 $ 2,803,823 $ 2,794,136 $ 2,167,899 1,726,135 demand deposits

Interest-bearing 2,766,899 2,653,746 2,494,137 2,258,818 2,103,471 deposits

Total deposits 6,435,572 5,457,569 5,288,273 4,426,717 3,829,606

Trust preferred 20,620 20,620 20,620 20,620 20,620 securities

Subordinated debt, 24,712 24,698 24,684 24,670 24,657 net of issuance cost

Secured Borrowings 32,461 35,559 36,449 36,475 36,964

Accounts payable,accrued expenses and 36,411 38,129 30,598 42,737 61,645 other liabilities

Accrued interest 746 448 1,773 563 712 payable

Prepaid third-partydebit cardholder 8,847 21,577 21,201 22,802 15,830 balances

Total liabilities 6,559,369 5,598,600 5,423,598 4,574,584 3,990,034



Class B preferred - 3 3 3 3 stock

Common stock 109 106 83 83 82

Additional paid in 382,999 382,922 219,098 217,384 218,899 capital

Retained earnings 181,385 162,498 146,283 132,947 120,830

Accumulated othercomprehensive gain, (7,504 ) (2,875 ) (1,872 ) (2,200 ) 973 net of tax effect

Total stockholders' 556,989 542,654 363,595 348,217 340,787 equity

Total liabilitiesand stockholders' $ 7,116,358 $ 6,141,254 $ 5,787,193 $ 4,922,801 $ 4,330,821 equity

Consolidated Statement of Income (unaudited)



Three Months Ended Twelve Months Ended

(dollars inthousands, Dec. 31, 2021 Sep. 30, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31,except per 2020share data)

Totalinterest $ 49,110 $ 45,018 $ 36,862 $ 173,284 $ 143,097income

Totalinterest 4,300 4,226 3,395 16,283 18,176expense

Net interest 44,810 40,792 33,467 157,001 124,921income

Provisionfor loan 501 490 1,795 3,816 9,488losses

Net interestincome afterprovision 44,309 40,302 31,672 153,185 115,433for loanlosses



Non-interest income:

Servicecharges ondeposit 1,313 1,344 981 4,755 3,728accounts ^(1)

Globalpayments 5,293 3,942 2,163 16,445 8,464revenue ^(1)

Otherservice 468 614 236 1,950 1,477charges and fees

Unrealizedgain (loss) (17 ) (9 ) (7 ) (62 ) 48on equity securities

Gain (loss)on sale of - - - 609 3,286securities

Totalnon-interest 7,057 5,891 3,373 23,697 17,003income



Non-interest expense:

Compensation 12,001 11,269 9,835 45,908 39,797and benefits

Bankpremises and 1,992 2,038 1,842 8,055 8,340equipment

Professional 1,567 1,877 1,064 6,750 4,122fees

Technology 1,736 1,090 864 5,201 3,387costs

Licensing 2,265 2,201 1,950 8,606 9,653fees

Other 3,753 3,509 2,233 12,792 9,219expenses

Totalnon-interest 23,314 21,984 17,788 87,312 74,518expense



Net incomebefore 28,052 24,209 17,257 89,570 57,918income tax expense

Income tax 9,165 7,994 5,482 29,015 18,452expense

Net income $ 18,887 $ 16,215 $ 11,775 $ 60,555 $ 39,466



Earnings percommon share:

Averagecommonshares 10,780,073 8,618,973 8,225,083 9,011,700 8,221,429outstanding- basic

Averagecommonshares 11,084,262 8,893,104 8,417,729 9,272,822 8,398,444outstanding- diluted

Basic $ 1.74 1.82 $ 1.42 $ 6.64 $ 4.76earnings

Diluted $ 1.69 1.77 $ 1.39 $ 6.45 $ 4.66earnings

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

Loan Production, Asset Quality & Regulatory Capital



(dollars in Dec 31, Sept 30, June 30, Mar 31, Dec 31,thousands) 2021 2021 2021 2021 2020



LOAN $ 411.0 $ 312.9 $ 265.4 $ 235.7 $ 174.0 PRODUCTION



ASSET QUALITY

Non-performing loans:

Non-accrual loans:

Commercial $ 9,984 $ 9,984 $ - $ - $ - real estate

Commercial and - 3,145 3,337 3,337 4,192 industrial

Consumer 37 1,674 1,560 1,523 1,428

Totalnon-accrual 10,021 14,803 4,897 4,860 5,620 loans

Totalnon-performing 10,286 15,376 5,491 5,464 6,389 loans

Non-accrualloans to total 0.27 % 0.41 % 0.14 % 0.15 % 0.18 %loans

Non-performingloans to total 0.28 % 0.43 % 0.16 % 0.17 % 0.20 %loans

Allowance for 34,729 38,121 37,377 35,502 35,407 loan losses

Allowance forloan losses to 0.93 % 1.06 % 1.08 % 1.10 % 1.13 %total loans

Charge-offs (3,909 ) (54 ) - (855 ) (30 )

Recoveries 17 308 - - 28

Netcharge-offs/(recoveries) 0.42 % (0.03 ) % - % 0.11 % - %as to averageloans(annualized)



REGULATORY CAPITAL

Tier 1 Leverage:

MetropolitanBank Holding 8.5 % 9.4 % 6.8 % 7.8 % 8.5 %Corp.

MetropolitanCommercial 8.4 % 9.3 % 7.3 % 8.2 % 9.0 %Bank



Common EquityTier 1 Risk-Based(CET1):

MetropolitanBank Holding 14.1 % 14.1 % 9.7 % 9.9 % 10.1 %Corp.

MetropolitanCommercial 14.4 % 14.6 % 11.1 % 11.3 % 11.6 %Bank



Tier 1 Risk-Based:

MetropolitanBank Holding 14.6 % 14.8 % 10.5 % 10.7 % 10.9 %Corp.

MetropolitanCommercial 14.4 % 14.6 % 11.1 % 11.3 % 11.6 %Bank



Total Risk-Based:

MetropolitanBank Holding 16.1 % 16.5 % 12.2 % 12.4 % 12.7 %Corp.

MetropolitanCommercial 15.2 % 15.6 % 12.2 % 12.4 % 12.7 %Bank

Performance Measures



Three Months Ended Twelve Months Ended

(dollars inthousands, Dec 31, 2021 Sept 30, Dec 31, Dec 31, 2021 Dec 31, except per share 2021 2020 2020data)

Net incomeavailable to 18,718 15,661 11,690 59,816 39,122 commonshareholders

Per common share:

Basic earnings $ 1.74 $ 1.82 $ 1.42 $ 6.64 $ 4.76

Diluted earnings $ 1.69 $ 1.77 $ 1.39 $ 6.45 $ 4.66

Common shares outstanding:

Period end 10,925,029 10,644,193 8,295,272 10,925,029 8,295,272

Average fully 11,084,262 8,893,104 8,417,729 9,272,822 8,398,444 diluted

Return on: ^(1)

Average total 1.10 % 1.09 % 1.13 % 1.06 % 1.02 %assets

Average equity 13.57 % 16.30 % 13.94 % 14.65 % 12.31 %

Average tangiblecommon equity ^ 13.86 % 16.95 % 14.61 % 15.18 % 12.92 %(2)

Yield on average 2.85 % 2.99 % 3.54 % 3.05 % 3.73 %earning assets

Cost ofinterest-bearing 0.54 % 0.57 % 0.56 % 0.57 % 0.75 %deposits

Net interest 2.24 % 2.35 % 2.90 % 2.41 % 2.83 %spread

Net interest 2.59 % 2.70 % 3.21 % 2.77 % 3.26 %margin

Net charge-offsas % of average 0.42 % (0.03) % 0.00 % 0.13 % 0.01 %loans ^(1)

Efficiency ratio 44.95 % 47.09 % 48.28 % 48.32 % 52.51 %^(2)

________________________________

(1) For periods less than a year, ratios are annualized.(2) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measuresstarting on page 14.

Interest Margin Analysis



Three Months Ended

Dec 31, 2021 Sep 30, 2021

Average Average

Outstanding Yield/Rate Outstanding Yield/Rate

(dollars in Balance Interest (annualized) Balance Interest (annualized) thousands)

Assets:

Interest-earning assets:

Loans ^(1) $ 3,694,362 $ 45,724 4.81 % $ 3,566,852 $ 42,730 4.65 %

Available-for-sale 599,175 1,656 1.11 % 538,115 1,454 1.06 %securities

Held-to-maturity 191,795 716 1.49 % 2,120 9 1.66 %securities

Equity investments - 2,322 6 0.96 % 2,316 6 1.01 %non-trading

Overnight deposits 2,215,042 857 0.15 % 1,738,102 666 0.15 %

Otherinterest-earning 11,998 151 4.98 % 11,991 153 5.06 %assets

Totalinterest-earning 6,714,694 49,110 2.85 % 5,859,496 45,018 2.99 %assets

Non-interest-earning 105,083 95,181 assets

Allowance for loan (38,464 ) (38,129 ) and lease losses

Total assets $ 6,781,313 $ 5,916,548

Liabilities andStockholders' Equity:

Interest-bearing liabilities:

Money market,savings and other $ 2,691,693 $ 3,614 0.53 % $ 2,501,757 $ 3,524 0.56 %interest-bearingaccounts

Certificates of 80,197 176 0.87 % 82,628 192 0.92 %deposit

Totalinterest-bearing 2,771,890 3,790 0.54 % 2,584,385 3,716 0.57 %deposits

Borrowed funds 45,324 510 4.49 % 45,309 510 4.40 %

Totalinterest-bearing 2,817,214 4,300 0.61 % 2,629,694 4,226 0.64 %liabilities

Non-interest-bearing liabilities:

Non-interest-bearing 3,337,477 2,814,335 deposits

Othernon-interest-bearing 74,496 77,732 liabilities

Total liabilities 6,229,187 5,521,761

Stockholders' equity 552,126 394,787

Total liabilities $ 6,781,313 $ 5,916,548 and equity

Net interest income $ 44,810 $ 40,792

Net interest rate 2.24 % 2.35 %spread ^(2)

Net interest-earning $ 3,897,480 $ 3,229,802 assets

Net interest margin 2.59 % 2.70 %^(3)

Ratio of interestearning assets to 2.38 x 2.23 xinterest bearingliabilities

Total cost of funds 0.28 % 0.31 %^(4)

___________________________

(1) Amount includes deferred loan fees and non-performing loans.(2) Determined by subtracting the annualized average cost of totalinterest-bearing liabilities from the annualized average yield on totalinterest-earning assets.(3) Determined by dividing annualized net interest income by total averageinterest-earning assets.(4) Determined by dividing annualized interest expense by the sum of totalaverage interest-bearing liabilities and total average non-interest-bearingdeposits.



Three Months Ended

Dec 31, 2021 Dec 31, 2020

Average Average

Outstanding Yield/Rate Outstanding Yield/Rate

(dollars in Balance Interest (annualized) Balance Interest (annualized) thousands)

Assets:

Interest-earning assets:

Loans ^(1) $ 3,694,362 $ 45,724 4.81 % $ 3,070,850 $ 35,843 4.62 %

Available-for-sale 599,175 1,656 1.11 % 230,080 573 0.97 %securities

Held-to-maturity 191,795 716 1.49 % 2,906 12 1.65 %securities

Equity investments - 2,322 6 0.96 % 2,294 9 1.46 %non-trading

Overnight deposits 2,215,042 857 0.15 % 806,602 280 0.14 %

Otherinterest-earning 11,998 151 4.98 % 11,336 145 5.09 %assets

Totalinterest-earning 6,714,694 49,110 2.85 % 4,124,068 36,862 3.54 %assets

Non-interest-earning 105,083 63,962 assets

Allowance for loan (38,464 ) (34,122 ) and lease losses

Total assets $ 6,781,313 $ 4,153,908

Liabilities andStockholders' Equity:

Interest-bearing liabilities:

Money market,savings and other $ 2,691,693 $ 3,614 0.53 % $ 1,962,417 $ 2,554 0.52 %interest-bearingaccounts

Certificates of 80,197 176 0.87 % 94,546 327 1.38 %deposit

Totalinterest-bearing 2,771,890 3,790 0.54 % 2,056,963 2,881 0.56 %deposits

Borrowed funds 45,324 510 4.49 % 45,268 514 4.44 %

Totalinterest-bearing 2,817,214 4,300 0.61 % 2,102,231 3,395 0.64 %liabilities

Non-interest-bearing liabilities:

Non-interest-bearing 3,337,477 1,636,417 deposits

Othernon-interest-bearing 74,496 79,320 liabilities

Total liabilities 6,229,187 3,817,968

Stockholders' equity 552,126 335,940

Total liabilities $ 6,781,313 $ 4,153,908 and equity

Net interest income $ 44,810 $ 33,467

Net interest rate 2.24 % 2.90 %spread ^(2)

Net interest-earning $ 3,897,480 $ 2,021,837 assets

Net interest margin 2.59 % 3.21 %^(3)

Ratio of interestearning assets to 2.38 x 1.96 xinterest bearingliabilities

Total cost of funds 0.28 % 0.36 %^(4)

_________________________________

(1) Amount includes deferred loan fees and non-performing loans.(2) Determined by subtracting the annualized average cost of totalinterest-bearing liabilities from the annualized average yield on totalinterest-earning assets.(3) Determined by dividing annualized net interest income by total averageinterest-earning assets.(4) Determined by dividing annualized interest expense by the sum of totalaverage interest-bearing liabilities and total average non-interest-bearingdeposits.



Year Ended

Dec 31, 2021 Dec 31, 2020

Average Average

Outstanding Outstanding

(dollars in Balance Interest Yield Balance Interest Yield thousands) /Rate /Rate

Assets:

Interest-earning assets:

Loans ^(1) $ 3,448,468 $ 164,528 4.77 % $ 2,888,180 $ 136,497 4.73 %

Available-for-sale 489,922 5,066 1.03 % 192,472 3,108 1.59 %securities

Held-to-maturity 50,110 746 1.49 % 3,282 59 1.77 %securities

Equity investments - 2,312 26 1.13 % 2,279 41 1.77 %non-trading

Overnight deposits 1,669,754 2,310 0.14 % 732,130 2,546 0.35 %

Otherinterest-earning 11,897 608 5.11 % 16,467 846 5.14 %assets

Totalinterest-earning 5,672,463 173,284 3.05 % 3,834,810 143,097 3.73 %assets

Non-interest-earning 89,002 59,584 assets

Allowance for loan (37,235 ) (31,381 ) and lease losses

Total assets $ 5,724,230 $ 3,863,013

Liabilities andStockholders' Equity:

Interest-bearing liabilities:

Money market,savings and other $ 2,394,616 $ 13,392 0.56 % $ 1,798,109 $ 12,420 0.69 %interest-bearingaccounts

Certificates of 83,313 849 1.02 % 98,483 1,824 1.85 %deposit

Totalinterest-bearing 2,477,929 14,241 0.57 % 1,896,592 14,244 0.75 %deposits

Borrowed funds 45,303 2,042 4.51 % 129,460 3,932 2.99 %

Totalinterest-bearing 2,523,232 16,283 0.65 % 2,026,052 18,176 0.90 %liabilities

Non-interest-bearing liabilities:

Non-interest-bearing 2,708,547 1,443,094 deposits

Othernon-interest-bearing 79,239 73,250 liabilities

Total liabilities 5,311,018 3,542,396

Stockholders' equity 413,212 320,617

Total liabilities $ 5,724,230 $ 3,863,013 and equity

Net interest income $ 157,001 $ 124,921

Net interest rate 2.41 % 2.83 %spread ^(2)

Net interest-earning $ 3,149,231 $ 1,808,758 assets

Net interest margin 2.77 % 3.26 %^(3)

Ratio of interestearning assets to 2.25 x 1.89 xinterest bearingliabilities

Total cost of funds 0.31 % 0.52 %^(4)

__________________________

(1) Amount includes deferred loan fees and non-performing loans.(2) Determined by subtracting the average cost of total interest-bearingliabilities from the average yield on total interest-earning assets.(3) Determined by dividing net interest income by total averageinterest-earning assets.(4) Determined by dividing interest expense by the sum of total averageinterest-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 table:



Quarterly Data Annual Data

(dollars inthousands, Dec 31, 2021 Sept 30, June 30, Mar 31, Dec 31, Dec 31, Dec 31, except per 2021 2021 2021 2020 2021 2020share data)

Average $ 6,781,313 $ 5,916,548 $ 5,504,686 $ 4,669,051 $ 4,153,908 $ 5,724,230 $ 3,863,013 assets

Less:average 9,733 9,733 9,733 9,733 9,733 9,733 9,733 intangible assets

Averagetangible $ 6,771,580 $ 5,906,815 $ 5,494,953 $ 4,659,318 $ 4,144,175 $ 5,714,497 $ 3,853,280 assets



Average $ 552,126 $ 394,787 $ 357,097 $ 346,785 $ 335,940 $ 413,212 $ 320,617 equity

Less:Average 1,834 5,502 5,502 5,502 5,502 4,585 5,502 preferred equity

Averagecommon $ 550,292 $ 389,285 $ 351,595 $ 341,283 $ 330,438 $ 408,627 $ 315,115 equity

Less:average 9,733 9,733 9,733 9,733 9,733 9,733 9,733 intangible assets

Averagetangible $ 540,559 $ 379,552 $ 341,862 $ 331,550 $ 320,705 $ 398,894 $ 305,382 common equity



Return onaveragetangible 13.86 % 16.95 % 15.65 % 14.82 % 14.61 % 15.18 % 12.92 %common equity ^(1), (2)



Total $ 7,116,358 $ 6,141,254 $ 5,787,193 $ 4,922,801 $ 4,330,821 $ 7,116,358 $ 4,330,821 assets

Less:intangible 9,733 9,733 9,733 9,733 9,733 9,733 9,733 assets

Tangible $ 7,106,625 $ 6,131,521 $ 5,777,460 $ 4,913,068 $ 4,321,088 $ 7,106,625 $ 4,321,088 assets



Total $ 556,989 $ 542,654 $ 363,595 $ 348,217 $ 340,787 $ 556,989 $ 340,787 equity

Less:preferred - 5,502 5,502 5,502 5,502 - 5,502 equity

Common $ 556,989 $ 537,152 $ 358,093 $ 342,715 $ 335,285 $ 556,989 $ 335,285 equity

Less:intangible 9,733 9,733 9,733 9,733 9,733 9,733 9,733 assets

Tangiblecommonequity $ 547,256 $ 527,419 $ 348,360 $ 332,982 $ 325,552 $ 547,256 $ 325,552 (bookvalue)



Commonshares 10,925,029 10,644,193 8,344,193 8,345,032 8,295,272 10,925,029 8,295,272 outstanding

Book valueper share $ 50.98 $ 50.46 $ 42.92 $ 41.07 $ 40.42 $ 50.98 $ 40.42 (GAAP)

Tangiblebook valueper share $ 50.09 $ 49.55 $ 41.75 $ 39.90 $ 39.25 $ 50.09 $ 39.25 (non-GAAP)^(3)



Totalrevenue $ 51,867 $ 46,683 $ 43,129 $ 39,017 $ 33,467 $ 180,698 $ 141,924 (GAAP) ^(4)

Gain onsale of $ - $ - $ 609 $ - $ - $ 609 $ 3,286 securities

Revenueexcluding gain on sale of

securities $ 51,867 $ 46,683 $ 42,520 $ 39,017 $ 33,467 $ 180,089 $ 138,638 (non-GAAP)



___________________________

(1) For periods less than a year, ratios are annualized.(2) Net income divided by average tangible common equity.(3) Tangible book value divided by common shares outstanding at period-end.(4) Total revenue equals net interest income plus non-interest income.

Reconciliation of Non-GAAP Measures, continued



Quarterly Data Annual Data

(dollars in Dec 31, Sept 30, June 30, Mar 31, Dec 31, Dec 31, Dec 31,thousands) 2021 2021 2021 2021 2020 2021 2020



Totalnon-interest $ 23,314 $ 21,984 $ 21,689 $ 20,323 $ 17,788 87,312 $ 74,518 expense(GAAP)

TotalRevenue $ 51,867 $ 46,683 $ 43,129 $ 39,017 $ 36,840 180,698 $ 141,924 (GAAP)

Efficiencyratio 44.9 % 47.1 % 50.3 % 52.1 % 48.3 % 48.3 % 52.5 %(non-GAAP)

Explanatory Note

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20220120005952/en/

CONTACT: Greg Sigrist EVP & Chief Financial Officer Metropolitan Commercial Bank (212) 365-6700 IR@MCBankNY.com