Metropolitan Bank Holding Corp. announced that the Bank has entered into Consent Orders with the Board of Governors of the Federal Reserve System and the New York State Department of Financial Services to resolve Federal Reserve and DFS concerns related to the Bank?s relationship with a program manager that processed government stimulus funds and expanded unemployment insurance benefits during the COVID-19 pandemic and was a target of fraud. The Consent Orders relate to a unique challenge that arose for a short period at the height of the COVID-19 pandemic.

MCB was committed to supporting the government?s provision of stimulus funds and expanded unemployment insurance benefits to millions of Americans, particularly underserved consumers who did not have traditional bank accounts. At the same time, as federal and state authorities have acknowledged, third-party fraud ballooned rapidly under these pandemic-era programs, creating oversight challenges for banks. The company announced that the Federal Reserve and New York Department of Financial Services have acknowledged the actions and enhancements the company voluntarily undertook, including terminating the relationship with the third-party program manager at issue in August 2020, and supplementing the company?s oversight mechanisms. The company also appreciate its employees?

hard work to stem the tide of fraud that occurred rapidly in these government programs, as a result of which MCB was able to freeze approximately $100 million in fraudulent payments for return to government authorities. The imposed fines are covered by a provision taken in prior periods. Since 2020, the Bank has been actively working to enhance its processes and procedures to more effectively and efficiently address the concerns that arose.