REGULATORY CAPITAL

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [Abstract]

REGULATORY CAPITAL

NOTE 15 — REGULATORY CAPITAL

The Holding Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about capital components, risk weightings and other factors. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being fully phased in by January 1, 2019. The capital conservation buffer was 1.25% at December 31, 2017 and 0.625% at December 31, 2016. The capital conservation buffer requirement is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing by 0.625% each subsequent January 1, until it reaches 2.5% on January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in the computation of the regulatory capital. The Company and the Bank meet all capital adequacy requirements, to which they are subject, as of December 31, 2017 and 2016.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2017 and 2016, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies.

The following is a summary of actual capital amounts and ratios as of December 31, 2017 and 2016, for the Company and the Bank compared to the requirements for minimum capital adequacy and classification as well capitalized. Actual and required capital amounts and ratios are presented below at year end (dollars in thousands):

	Actual					For Capital Adequacy  Purposes						To be Well Capitalized  under Prompt Corrective  Action Regulations
	Amount			Ratio		Amount				Ratio		Amount				Ratio
At December 31, 2017
Total capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	287,039		19.9%		$	115,636	≥		8.0%			N/A			N/A
Metropolitan Commercial Bank		$	280,317		19.4%		$	115,523	≥		8.0%		$	144,403	≥		10.0%
Tier 1 common equity (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	221,803		15.3%		$	65,045	≥		4.5%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		18.4%		$	64,981	≥		4.5%		$	93,862	≥		6.5%
Tier 1 capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	247,305		17.1%		$	86,726	≥		6.0%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		18.4%		$	86,642	≥		6.0%		$	115,523	≥		8.0%
Tier 1 capital (to average assets)
Metropolitan Bank Holding Corp.		$	247,305		13.7%		$	72,206	≥		4.0%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		14.7%		$	72,099	≥		4.0%		$	90,124	≥		5.0%
At December 31, 2016
Total capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	131,895		12.5%		$	84,733	≥		8.0%			N/A			N/A
Metropolitan Commercial Bank		$	130,949		12.4%		$	84,619	≥		8.0%		$	105,774	≥		10.0%
Tier 1 common equity (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	114,421		10.8%		$	47,662	≥		4.5%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		11.3%		$	47,598	≥		4.5%		$	68,753	≥		6.5%
Tier 1 capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	119,923		11.3%		$	63,549	≥		6.0%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		11.3%		$	63,465	≥		6.0%		$	84,619	≥		8.0%
Tier 1 capital (to average assets)
Metropolitan Bank Holding Corp.		$	119,923		10.5%		$	45,742	≥		4.0%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		10.4%		$	45,703	≥		4.0%		$	57,128	≥		5.0%

The following is a summary of actual capital amounts and ratios as of December 31, 2017 and 2016 for the Company and the Bank compared to the requirements for minimum capital adequacy plus the 1.25% capital conservation buffer currently in place:

	Actual					Minimum for Capital Adequacy  plus Capital Conservation Buffer
	Amount			Ratio		Amount				Ratio
December 31, 2017:
Total capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	287,039		19.9%			N/A			N/A
Metropolitan Commercial Bank		$	280,317		19.4%		$	133,573	≥		9.3%
Tier 1 common equity (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	221,803		15.3%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		18.4%		$	83,032	≥		5.8%
Tier 1 capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	247,305		17.1%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		18.4%		$	104,692	≥		7.3%
Tier 1 capital (to average assets)
Metropolitan Bank Holding Corp.		$	247,305		13.7%			N/A			N/A
Metropolitan Commercial Bank		$	265,076		14.7%		$	72,099	≥		4.0%

	Actual					Minimum for Capital Adequacy  plus Capital Conservation Buffer
	Amount			Ratio		Amount				Ratio
December 31, 2016:
Total capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	131,895		12.5%			N/A			N/A
Metropolitan Commercial Bank		$	130,949		12.4%		$	91,230	≥		8.6%
Tier 1 common equity (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	114,421		10.8%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		11.3%		$	54,209	≥		5.1%
Tier 1 capital (to risk-weighted assets)
Metropolitan Bank Holding Corp.		$	119,923		11.3%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		11.3%		$	70,075	≥		6.6%
Tier 1 capital (to average assets)
Metropolitan Bank Holding Corp.		$	119,923		10.5%			N/A			N/A
Metropolitan Commercial Bank		$	118,977		10.4%		$	45,703	≥		4.0%