MCB settles with Fed and NYDFS over prepaid debit card; $29.5M penalties fully reserved

Metropolitan Bank Holding Corp.

FRB consent order imposes $14.48M civil money penalty; requires board oversight, customer ID, due diligence, and third-party risk plans.
NYSDFS consent order imposes $15M penalty; requires information and status reports on third-party program manager supervision.
Investigations stem from unauthorized COVID benefits payments on prepaid card program; relationship ended August 2020.
Company is fully reserved for penalties through regulatory settlement reserve disclosed in prior periods.
Additional enforcement actions could have a materially adverse effect; Bank continues to enhance processes since 2020.

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