Metropolitan Bank Holding Corp. (MCB) Investigation

MCB Investigation Focus: Credit Quality Representations vs. July 21 Disclosures

Hagens Berman’s investigation focuses on whether Metropolitan Bank and certain of its executive officers issued materially false and misleading statements or failed to disclose material credit and reserve risks to investors during the relevant period.

• Adequate Reserve Narrative (April 2026 / AGM): Throughout early 2026—including during the Q1 earnings call and Annual General Meeting—management assured investors that credit issues were merely a localized “speed bump” involving only five specific credits. Executives portrayed legacy loan concerns as fully contained, stated that the bank was “adequately reserved,” expressed confidence in a "full recovery" of principal, interest, and legal fees on troubled assets like the Kansas City loan, and guided that criticized and classified loans would return to normal, extremely low trends.

• The July 21 Reality Check: On July 21, 2026, Metropolitan Bank reported its Q2 2026 financial results, revealing a steep earnings miss (EPS of $1.54 vs. consensus estimates of roughly $2.28) driven by a severe spike in credit loss provisions and unexpected write-downs.
  • Overall Portfolio Health: Rather than a speed bump limited to five known credits, earnings were hit by several "isolated items," including a significant new $26 million C&I non-performing loan.
  • Reserve Adequacy: The "adequately reserved" narrative was upended by $14 million in unexpected new charge-offs, including $10 million for C&I and $4 million for a high-net-worth exposure, alongside a separate $10 million charge-off for a window and door manufacturer.

• • Loan Resolutions: Despite assurances of a "full" recovery of legal expenses on the Kansas City loan, the final settlement resulted in only a "partial reimbursement" of legal fees.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the MCB investigation about?

Our investigation focuses on whether Metropolitan Bank may have misled investors by downplaying credit quality issues as a contained ‘speed bump’ while underlying risks in the C&I and legacy loan portfolios may have festered.

WHAT SHOULD I DO?

I worked at MCB. What should I do?

If you were an employee of MCB, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in MCB, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any MCB investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.