Revenues Increased 44.4% Year-Over-Year

Loans Increased 26.8% Year-Over-Year

Return on Average Tangible Common Equity¹ of 16.7%

Metropolitan Bank Holding Corp. (the "Company") (NYSE:MCB), the holding company for Metropolitan Commercial Bank (the "Bank"), reported net income of $23.2 million, or $2.07 per diluted common share, for the second quarter of 2022 compared to net income of $13.3 million, or $1.55 per diluted common share, for the second quarter of 2021.

The Company will conduct a conference call at 9:00 a.m. Eastern time on Friday, July 22, 2022, to discuss second quarter 2022 results. See "Conference Call" section below for further details.

Financial Highlights Year-Over-Year:

Total revenues of $62.3 million, up 44.4%.
Banking-as-a-Service ("BaaS") revenues of $5.2 million, up 36.1%.
Net income of $23.2 million, up 73.9%.
Diluted earnings per share of $2.07, up 33.5%.
Net interest margin of 3.27%, up 59 basis points.
Loans totaled $4.4 billion, up 26.8%.
Deposits were $6.2 billion, up 16.8%.
Book value per share was $52.54, up 22.4%, and tangible book value per share¹ was $51.65, up 23.7%.
Return on average equity of 16.4% and return on average tangible common equity¹ of 16.7%.
Efficiency ratio² improved to 42.2% compared to 50.3% for the prior year period.

Mark DeFazio, President and Chief Executive Officer, commented,

"I am pleased with the strong performance of MCB throughout the franchise. The solid balance sheet growth continues to generate strong financial returns while prior investments have made us more efficient and built for scale. Our sustained performance throughout the full economic cycle underscores the resilience of our business model and our focus on disciplined underwriting. Our strong market positioning and balance sheet strength position us well to serve existing and new clients at a time when the competitive landscape is fluid.

"Our Global Payments Group continues to deepen and expand its relationship with fintech clients who provide retail financial services to consumers and businesses nationwide. Together with our Fintech partners, the stage is set for GPG to be a best in class digital retail bank providing consumer financial services.

"Our continued performance would not be possible without the unconditional support and dedication of our staff and Directors."

Balance Sheet

The Company had total assets of $6.9 billion at June 30, 2022, an increase of $1.1 billion, or 18.7%, from June 30, 2021, and an increase of $240.1 million, or 3.6% from March 31, 2022.

Total cash and cash equivalents were $1.3 billion at June 30, 2022, a decrease of $377.4 million, or 22.0%, from June 30, 2021 and a decrease of $72.1 million, or 5.1%, from March 31, 2022. The decrease from June 30, 2021, reflected the $1.4 billion deployment into loans and securities offset by the strong growth in deposits as well as the cash received from the issuance of common stock during the third quarter of 2021.

Total loans, net of deferred fees and unamortized costs, were $4.4 billion, an increase of $925.7 million, or 26.8%, from June 30, 2021, and an increase of $253.7 million, or 6.2% from March 31, 2022. Loan production was $512.8 million for the second quarter of 2022 compared to $265.4 million for the prior year period and $488.9 million for the prior linked quarter. The increase in total loans from June 30, 2021, was due primarily to an increase of $735.8 million in commercial real estate ("CRE") loans (including owner-occupied) and $180.0 million in commercial and industrial ("C&I") loans. The increase in total loans from March 31, 2022, was due primarily to an increase of $140.1 million in CRE loans (including owner-occupied) and $57.1 million in C&I loans.

Total securities were $998.5 million at June 30, 2022, an increase of 82.1% from June 30, 2021, and 2.3% from March 31, 2022, due primarily to the deployment of excess liquidity.

Total deposits were $6.2 billion, an increase of $890.1 million, or 16.8% from June 30, 2021, and an increase of $239.0 million or 4.0% from March 31, 2022. The increase in deposits from June 30, 2021, was primarily due to increases in digital currency and retail deposit customers. Non-interest-bearing demand deposits were 56.2% of total deposits at June 30, 2022, compared to 52.8% at June 30, 2021 and 53.5% at March 31, 2022.

Accumulated other comprehensive loss, net of tax, was $34.8 million, an increase of $32.9 million, from June 30, 2021, and $11.0 million from March 31, 2022. The increases were due to the prevailing interest rate environment which increased the unrealized losses on available-for-sale securities, partially offset by increases in unrealized gains on cash flow hedges.

At June 30, 2022, the Company had available borrowing capacity of $477.4 million from the Federal Home Loan Bank and an available line of credit of $97.8 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 337.4% of total risk-based capital at June 30, 2022, compared to 442.6% and 350.9% at June 30, 2021 and March 31, 2022, respectively.

Income Statement

Financial Highlights


	Three months ended									Six months ended
	Jun. 30,			Mar. 31,			Jun. 30,			Jun. 30,			Jun. 30,
*(dollars in thousands, except per share data)*	2022			2022			2021			2022			2021
Total revenues⁽¹⁾	$	62,300		$	54,059		$	43,129		$	116,359		$	82,145
Net income		23,189			19,021			13,336			42,210			25,453
Diluted earnings per common share		2.07			1.69			1.55			3.76			2.98
Return on average assets ⁽²⁾		1.38	%		1.11	%		0.97	%		1.25	%		1.01	%
Return on average equity ⁽²⁾		16.4	%		13.8	%		15.0	%		15.1	%		14.6	%
Return on average tangible common equity ^{(2), (3)}		16.7	%		14.0	%		15.6	%		15.5	%		15.2	%

____________________

(1) Total revenues equal net interest income plus non-interest income.

(2) Ratios are annualized.

(3) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

Net Interest Income

Net interest income for the second quarter of 2022 was $55.3 million, an increase of $8.7 million from the prior linked quarter and $18.3 million from the prior year period. This was primarily due to an increase in the average balance of loans and securities, the increase in prevailing interest rates and the shift in asset mix to higher-yielding interest earning assets. The average balance of loans increased $330.0 million and $897.3 million compared to the prior linked quarter and prior year period, respectively. The average balance of securities increased $16.7 million and $539.7 million compared to the prior linked quarter and prior year period, respectively. The average yield on loans increased 9 basis points and 22 basis points compared to the prior linked quarter and prior year period, respectively. The average yield on overnight deposits increased 66 basis points and 74 basis points compared to the prior linked quarter and prior year period, respectively.

Net Interest Margin

Net interest margin for the second quarter of 2022 was 3.27% compared to 2.71% and 2.68% for the prior linked quarter and prior year period, respectively. The 56 basis point increase in net interest margin from the prior linked quarter was driven largely by the increase in the average balance of loans, the increase in yields for loans and overnight deposits and the subordinated debt redemption in the first quarter of 2022. The 59 basis point increase from the prior year period was driven largely by the increase in the average balance of loans and securities, the increase in yields for loans and overnight deposits, and the subordinated debt redemption in the first quarter of 2022.

Total cost of funds for the second quarter of 2022 was 25 basis points compared to 28 basis points and 32 basis points for the prior linked quarter and prior year period, respectively. The 3 basis point decrease from the prior linked quarter was driven by the subordinated debt redemption in the first quarter of 2022. The 7 basis point decline from the prior year period was driven by the shift toward non-interest bearing deposits as well as a decrease in the cost of interest-bearing deposits.

Non-Interest Income

Non-interest income was $7.0 million for the second quarter of 2022, a decrease of $0.4 million from the prior linked quarter. Global Payments Group non transactional revenues were elevated in the prior linked quarter. Non-interest income increased $0.8 million for the second quarter of 2022, compared to the prior year period primarily driven by the increase in Global Payments Group client transaction volumes, offset by the $0.6 million decrease in the gain on the sale of securities.

Non-Interest Expense

Non-interest expense was $26.3 million for the second quarter of 2022, an increase of $1.7 million and $4.6 million from the prior linked quarter and prior year period, respectively. Non-interest expense increased from the prior linked quarter primarily due to charitable contributions and qualified CRA grants. Non-interest expense increased from the prior year period primarily due to an increase in full-time employees, and general expense growth in line with revenue growth and volume expansion in the global payments business.

Income Tax Expense

The estimated effective tax rate for the second quarter of 2022 was 31.0% compared to 27.0% and 31.8% for the prior linked quarter and prior year period, respectively. The effective tax rate increased from the prior linked quarter primarily due to discrete tax items recognized during the first quarter of 2022.

Asset Quality

Credit quality remains strong as there were no charge-offs during the second quarter of 2022 and non-performing loans to total loans was 0.00% at June 30, 2022 compared to 0.16% at June 30, 2021.

The Company recorded a provision of $2.4 million for the second quarter of 2022 compared to $3.4 million and $1.9 million for the prior linked quarter and prior year period, respectively. 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. Eastern time on Friday, July 22, 2022, to discuss second quarter 2022 results. To access the event by telephone, please dial 866-518-6930 (US), 203-518-9797 (INTL), and provide conference ID: MCBQ222 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, one of the Top 50 Community Banks by S&P, and one of the Top 20 Commercial Lenders by ICBA for banks with an asset size of more than $1 billion. 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.

Consolidated Balance Sheet (unaudited)


	Jun. 30,		Mar. 31,		Dec. 31,		Sept. 30,		Jun. 30,
*(in thousands)*	2022		2022		2021		2021		2021
Assets
Cash and due from banks	$	33,143	$	32,483	$	28,864	$	32,660	$	29,651
Overnight deposits		1,308,738		1,381,475		2,330,486		1,824,820		1,689,614
Total cash and cash equivalents		1,341,881		1,413,958		2,359,350		1,857,480		1,719,265
Investment securities available for sale		465,661		505,728		566,624		603,168		543,769
Investment securities held to maturity		530,740		467,893		382,099		2,017		2,222
Equity investment securities, at fair value		2,107		2,173		2,273		2,289		2,291
Total securities		998,508		975,794		950,996		607,474		548,282
Other investments		17,357		15,989		11,998		11,998		11,989
Loans, net of deferred fees and unamortized costs		4,375,165		4,121,443		3,731,929		3,603,288		3,449,490
Allowance for loan losses		(40,534)		(38,134)		(34,729)		(38,121)		(37,377)
Net loans		4,334,631		4,083,309		3,697,200		3,565,167		3,412,113
Receivables from global payments business, net		68,214		62,129		39,864		48,302		40,091
Accrued interest receivable		18,203		16,186		15,195		13,504		14,424
Premises and equipment, net		17,933		16,434		15,116		14,031		13,337
Prepaid expenses and other assets		60,582		33,408		16,906		13,565		17,959
Goodwill		9,733		9,733		9,733		9,733		9,733
Total assets	$	6,867,042	$	6,626,940	$	7,116,358	$	6,141,254	$	5,787,193
Liabilities and Stockholders' Equity
Deposits
Non-interest-bearing demand deposits	$	3,470,325	$	3,176,048	$	3,668,673	$	2,803,823	$	2,794,136
Interest-bearing deposits		2,708,075		2,763,315		2,766,899		2,653,746		2,494,137
Total deposits		6,178,400		5,939,363		6,435,572		5,457,569		5,288,273
Trust preferred securities		20,620		20,620		20,620		20,620		20,620
Subordinated debt, net of issuance cost		—		—		24,712		24,698		24,684
Secured borrowings		32,044		32,322		32,461		35,559		36,449
Accounts payable, accrued expenses and other liabilities		37,774		50,216		36,411		38,129		30,598
Accrued interest payable		367		297		746		448		1,773
Prepaid third-party debit cardholder balances		23,531		24,092		8,847		21,577		21,201
Total liabilities		6,292,736		6,066,910		6,559,369		5,598,600		5,423,598

Class B preferred stock		—		—		—		3		3
Common stock		109		109		109		106		83
Additional paid in capital		385,369		383,327		382,999		382,922		219,098
Retained earnings		223,595		200,406		181,385		162,498		146,283
Accumulated other comprehensive gain (loss), net of tax effect		(34,767)		(23,812)		(7,504)		(2,875)		(1,872)
Total stockholders' equity		574,306		560,030		556,989		542,654		363,595
Total liabilities and stockholders' equity	$	6,867,042	$	6,626,940	$	7,116,358	$	6,141,254	$	5,787,193

Consolidated Statement of Income (unaudited)

	Three months ended						Six months ended
	Jun. 30,		Mar. 31,		Jun. 30,		Jun. 30,		Jun. 30,
*(dollars in thousands, except per share data)*	2022		2022		2021		2022		2021
Total interest income	$	59,158	$	50,970	$	41,050	$	110,128	$	79,156
Total interest expense		3,856		4,338		4,077		8,194		7,760
Net interest income		55,302		46,632		36,973		101,934		71,396
Provision for loan losses		2,400		3,400		1,875		5,800		2,825
Net interest income after provision for loan losses		52,902		43,232		35,098		96,134		68,571

Non-interest income
Service charges on deposit accounts ⁽¹⁾		1,474		1,370		1,126		2,844		2,098
Global Payments Group revenue ⁽¹⁾		5,242		5,657		3,851		10,899		7,210
Other service charges and fees		355		506		566		861		868
Unrealized gain (loss) on equity securities		(73)		(106)		4		(179)		(36)
Gain (loss) on sale of securities		—		—		609		—		609
Total non-interest income		6,998		7,427		6,156		14,425		10,749

Non-interest expense
Compensation and benefits		13,415		13,421		11,211		26,836		22,638
Bank premises and equipment		2,264		2,116		2,000		4,380		4,024
Professional fees		1,692		1,474		2,003		3,166		3,306
Technology costs		1,144		1,399		1,447		2,543		2,374
Licensing fees		2,686		2,294		2,067		4,980		4,141
Other expenses		5,068		3,915		2,961		8,983		5,528
Total non-interest expense		26,269		24,619		21,689		50,888		42,011

Net income before income tax expense		33,631		26,040		19,565		59,671		37,309
Income tax expense		10,442		7,019		6,229		17,461		11,856
Net income	$	23,189	$	19,021	$	13,336	$	42,210	$	25,453

Earnings per common share:
Average common shares outstanding:
Basic		10,931,697		10,919,868		8,312,234		10,925,718		8,294,404
Diluted		11,189,807		11,223,294		8,543,474		11,208,992		8,496,945
Basic earnings	$	2.12	$	1.74	$	1.59	$	3.86	$	3.06
Diluted earnings	$	2.07	$	1.69	$	1.55	$	3.76	$	2.98

____________________

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

Loan Production, Asset Quality & Regulatory Capital


	Jun. 30,			Mar. 31,			Dec. 31,			Sept. 30,			Jun. 30,
*(dollars in thousands)*	2022			2022			2021			2021			2021
LOAN PRODUCTION	$	512.8		$	488.9		$	411.0		$	312.9		$	265.4

ASSET QUALITY
Non-accrual loans:
Commercial real estate	$	—		$	—		$	9,984		$	9,984		$	—
Commercial and industrial		—			—			—			3,145			3,337
Consumer		24			24			37			1,674			1,560
Total non-accrual loans	$	24		$	24		$	10,021		$	14,803		$	4,897
Total non-performing loans	$	24		$	24		$	10,286		$	15,376		$	5,491
Non-accrual loans to total loans		—	%		—	%		0.27	%		0.41	%		0.14	%
Non-performing loans to total loans		—	%		—	%		0.28	%		0.43	%		0.16	%
Allowance for loan losses	$	40,534		$	38,134		$	34,729		$	38,121		$	37,377
Allowance for loan losses to total loans		0.93	%		0.93	%		0.93	%		1.06	%		1.08	%
Charge-offs	$	—		$	—		$	(3,909)		$	(54)		$	—
Recoveries	$	—		$	5		$	17		$	308		$	—
Net charge-offs/(recoveries) to average loans (annualized)		—	%		—	%		0.42	%		(0.03)	%		—	%

REGULATORY CAPITAL
Tier 1 Leverage:
Metropolitan Bank Holding Corp.		9.2	%		8.6	%		8.5	%		9.4	%		6.8	%
Metropolitan Commercial Bank		9.1	%		8.5	%		8.4	%		9.3	%		7.3	%

Common Equity Tier 1 Risk-Based (CET1):
Metropolitan Bank Holding Corp.		13.0	%		13.3	%		14.1	%		14.1	%		9.7	%
Metropolitan Commercial Bank		13.2	%		13.6	%		14.4	%		14.6	%		11.1	%

Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.		13.4	%		13.7	%		14.6	%		14.8	%		10.5	%
Metropolitan Commercial Bank		13.2	%		13.6	%		14.4	%		14.6	%		11.1	%

Total Risk-Based:
Metropolitan Bank Holding Corp.		14.3	%		14.6	%		16.1	%		16.5	%		12.2	%
Metropolitan Commercial Bank		14.1	%		14.5	%		15.2	%		15.6	%		12.2	%

Performance Measures


	Three months ended									Six months ended
*(dollars in thousands, except per share*	Jun. 30,			Mar. 31,			Jun. 30,			Jun. 30,			Jun. 30,
*data)*	2022			2022			2021			2022			2021
Net income available to common shareholders	$	23,126		$	18,996		$	13,252		$	42,125		$	25,347
Per common share:
Basic earnings	$	2.12		$	1.74		$	1.59		$	3.86		$	3.06
Diluted earnings	$	2.07		$	1.69		$	1.55		$	3.76		$	2.98
Common shares outstanding:
Period end		10,931,697			10,931,697			8,344,193			10,931,697			8,344,193
Average fully diluted		11,189,807			11,223,294			8,543,474			11,208,992			8,496,945
Return on: ⁽¹⁾
Average total assets		1.38	%		1.11	%		0.97	%		1.25	%		1.01	%
Average equity		16.4	%		13.8	%		15.0	%		15.1	%		14.6	%
Average tangible common equity ⁽²⁾		16.7	%		14.0	%		15.6	%		15.5	%		15.2	%
Yield on average earning assets		3.50	%		2.96	%		2.98	%		3.24	%		3.14	%
Total cost of deposits		0.24	%		0.23	%		0.29	%		0.24	%		0.29	%
Net interest spread		2.95	%		2.32	%		2.31	%		2.65	%		2.47	%
Net interest margin		3.27	%		2.71	%		2.68	%		3.00	%		2.83	%
Net charge-offs as % of average loans ⁽¹⁾		—	%		—	%		—	%		—	%		0.05	%
Efficiency ratio		42.2	%		45.5	%		50.3	%		43.73	%		51.14	%

____________________

(1) Ratios are annualized.

(2) Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 12.

Interest Margin Analysis


	Three months ended
	Jun. 30, 2022						Mar. 31, 2022						Jun. 30, 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⁾	$	4,232,016	$	52,185	4.87	%	$	3,901,976	$	46,536	4.78	%	$	3,334,762	$	39,234	4.65	%
Available-for-sale securities		540,100		1,643	1.22			565,301		1,648	1.17			487,147		1,204	0.98
Held-to-maturity securities		489,082		2,056	1.68			447,165		1,738	1.55			2,348		9	1.52
Equity investments		2,334		7	1.25			2,328		6	1.03			2,309		7	1.20
Overnight deposits		1,401,027		2,994	0.85			1,969,366		915	0.19			1,612,187		442	0.11
Other interest-earning assets		17,357		273	6.29			13,328		127	3.80			11,985		154	5.15
Total interest-earning assets		6,681,916		59,158	3.50			6,899,464		50,970	2.96			5,450,738		41,050	2.98
Non-interest-earning assets		93,597						57,241						90,287
Allowance for loan losses		(38,713)						(36,130)						(36,339)
Total assets	$	6,736,800					$	6,920,575					$	5,504,686
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market and savings accounts	$	2,716,676		3,583	0.53		$	2,639,572		3,463	0.53		$	2,314,791		3,348	0.58
Certificates of deposit		62,247		123	0.80			75,881		162	0.86			83,606		217	1.04
Total interest-bearing deposits		2,778,923		3,706	0.53			2,715,453		3,625	0.54			2,398,397		3,565	0.60
Borrowed funds		20,621		150	2.91			40,340		713	7.07			45,296		512	4.47
Total interest-bearing liabilities		2,799,544		3,856	0.55			2,755,793		4,338	0.64			2,443,693		4,077	0.67
Non-interest-bearing liabilities:
Non-interest-bearing deposits		3,290,328						3,574,835						2,603,198
Other non-interest-bearing liabilities		78,997						28,927						100,698
Total liabilities		6,168,869						6,359,555						5,147,589
Stockholders' equity		567,931						561,020						357,097
Total liabilities and equity	$	6,736,800					$	6,920,575					$	5,504,686
Net interest income			$	55,302					$	46,632					$	36,973
Net interest rate spread ⁽³⁾					2.95	%					2.32	%					2.31	%
Net interest margin ⁽⁴⁾					3.27	%					2.71	%					2.68	%
Total cost of deposits ⁽⁵⁾					0.24	%					0.23	%					0.29	%
Total cost of funds ⁽⁶⁾					0.25	%					0.28	%					0.32	%

____________________

(1) 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.


	Six months ended
	Jun. 30, 2022						Jun. 30, 2021
	Average						Average
	Outstanding				Yield /		Outstanding				Yield /
*(dollars in thousands)*	Balance		Interest		Rate ⁽¹⁾		Balance		Interest		Rate ⁽¹⁾
Assets:
Interest-earning assets:
Loans ⁽²⁾	$	4,067,908	$	98,721	4.85	%	$	3,263,309	$	76,074	4.67	%
Available-for-sale securities		552,631		3,291	1.19	%		409,895		1,956	0.95	%
Held-to-maturity securities		468,239		3,794	1.62	%		2,485		20	1.60	%
Equity investments		2,331		13	1.14	%		2,306		15	1.29	%
Overnight deposits		1,683,626		3,909	0.46	%		1,357,851		786	0.12	%
Other interest-earning assets		15,354		400	5.21	%		11,799		305	5.21	%
Total interest-earning assets		6,790,089		110,128	3.24	%		5,047,645		79,156	3.14	%
Non-interest-earning assets		75,520						77,662
Allowance for loan losses		(37,429)						(36,155)
Total assets	$	6,828,180					$	5,089,152
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market and savings accounts	$	2,678,146	$	7,046	0.53	%	$	2,188,333	$	6,254	0.58	%
Certificates of deposit		69,026		285	0.83	%		85,245		482	1.14	%
Total interest-bearing deposits		2,747,172		7,331	0.54	%		2,273,578		6,736	0.60	%
Borrowed funds		30,426		863	5.67	%		45,289		1,024	4.50	%
Total interest-bearing liabilities		2,777,598		8,194	0.59	%		2,318,867		7,760	0.67	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		3,431,987						2,335,924
Other non-interest-bearing liabilities		54,100						82,416
Total liabilities		6,263,685						4,737,207
Stockholders' equity		564,495						351,945
Total liabilities and equity	$	6,828,180					$	5,089,152
Net interest income			$	101,934					$	71,396
Net interest rate spread ⁽³⁾					2.65	%					2.47	%
Net interest margin ⁽⁴⁾					3.00	%					2.83	%
Total cost of deposits ⁽⁵⁾					0.24	%					0.29	%
Total cost of funds ⁽⁶⁾					0.27	%					0.34	%

____________________

(1) 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 table:


	Quarterly Data
	Jun. 30,			Mar. 31,			Dec. 31,			Sept. 30,			Jun. 30,
*(dollars in thousands, except per share data)*	2022			2022			2021			2021			2021
Average assets	$	6,736,800		$	6,920,575		$	6,781,313		$	5,916,548		$	5,504,686
Less: average intangible assets		9,733			9,733			9,733			9,733			9,733
Average tangible assets	$	6,727,067		$	6,910,842		$	6,771,580		$	5,906,815		$	5,494,953

Average equity	$	567,931		$	561,020		$	552,126		$	394,787		$	357,097
Less: average preferred equity		—			—			1,834			5,502			5,502
Average common equity	$	567,931		$	561,020		$	550,292		$	389,285		$	351,595
Less: average intangible assets		9,733			9,733			9,733			9,733			9,733
Average tangible common equity	$	558,198		$	551,287		$	540,559		$	379,552		$	341,862

Return on average tangible common equity ^{(1), (2)}		16.7	%		14.0	%		13.9	%		16.9	%		15.6	%

Total assets	$	6,867,042		$	6,626,940		$	7,116,358		$	6,141,254		$	5,787,193
Less: intangible assets		9,733			9,733			9,733			9,733			9,733
Tangible assets	$	6,857,309		$	6,617,207		$	7,106,625		$	6,131,521		$	5,777,460

Total equity	$	574,306		$	560,030		$	556,989		$	542,654		$	363,595
Less: preferred equity		—			—			—			5,502			5,502
Common equity	$	574,306		$	560,030		$	556,989		$	537,152		$	358,093
Less: intangible assets		9,733			9,733			9,733			9,733			9,733
Tangible common equity (book value)	$	564,573		$	550,297		$	547,256		$	527,419		$	348,360

Common shares outstanding		10,931,697			10,931,697			10,925,029			10,644,193			8,344,193
Book value per share (GAAP)	$	52.54		$	51.23		$	50.98		$	50.46		$	42.92
Tangible book value per share (non-GAAP) ⁽³⁾	$	51.65		$	50.34		$	50.09		$	49.55		$	41.75

____________________

(1) Ratios are annualized.

(2) Net income divided by average tangible common equity.

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

Explanatory Note

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

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Metropolitan Bank Holding Corp. Reports Quarterly Net Income