Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q4 2023 Earnings Presentation
24 slides from Metropolitan Bank's earnings presentation, Jan 18, 2024
Slide 1: 4Q 2023 Investor Presentation
4Q 2023 Investor Presentation
Slide 2: Disclosure
Disclosure This presentation 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
Slide 3: Proven Growth-Oriented Business Model with Strong Risk Management
Proven Growth-Oriented Business Model with Strong Risk Management, Poised to Deliver Significant Shareholder Value 1. Safe & Sound 2. Customer Centric 3. Innovative 4. High Performing • Strong, liquid balance sheet • Significant capital buffer • Diversified deposit base • Proven operators • Conserva
Slide 4: Highly Liquid and Resilient Balance Sheet
31.6% 32.0% 3Q 2023 4Q 2023 $5.3 $5.5 $5.7 4Q 2022 3Q 2023 4Q 2023 11.8% 11.5% 3Q 2023 4Q 2023 Highly Liquid and Resilient Balance Sheet 73% Insured deposits Deposit Growth | ($ bn) CET1 Ratio1 Non-interest bearing Deposit % Deposit Profile at December 31, 2023 Scaling deposits in rising rate enviro
Slide 5: Relationship Banking with Strong Client Execution
Relationship Banking with Strong Client Execution • Our Business Bankers have deep knowledge and expertise across multiple industries (e.g. law firms, resident healthcare, real estate property management, U.S. Trustee and Municipalities). • Full suite of retail financial service products targeting s
Slide 6: Innovative Payment Solutions Platform Providing Critical Financial Infrastructure
Innovative Payment Solutions Platform Providing Critical Financial Infrastructure GPG is an established leader in providing global payments infrastructure to non-bank financial services companies Payroll E-Wallet Payments / Cash Settlement Debit Cards Prepaid Cards Deposit Custody Cross Border Money
Slide 7: Track Record of Strong Operating Performance
$2.34 $3.06 $3.56 $4.66 $6.45 $5.29 $6.91 2017 2018 2019 2020 2021 2022³ ĩ Track Record of Strong Operating Performance 1 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 23. 2 CAGR from December 31, 2017 through December 31, 2023. 3 Includes a $35.0 million charge for a r
Slide 8: Well Managed Net Interest Margin
Well Managed Net Interest Margin 1 Represents effective average daily Fed Funds rate. 2 Represents full-year NIM. Net Interest Margin Analysis 1.00% 1.83% 2.16% 0.36% 0.08% 1.68% 5.03% 3.52% 3.70% 3.46% 3.26% 2.77% 3.49% 3.49% 2017 2018 2019 2020 2021 2022 2023 Average Fed Funds Rate¹ MCB Net Intere
Slide 9: Commercial Bank
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Slide 10: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification 1 Gross of deferred fees and unamortized costs. 2 Certain prior period amounts adjusted to conform to current presentation. 3 Excludes owner-occupied. * Includes consumer and 1-4 family loans. ** Includes commercial real estate, multifamily and construction
Slide 11: Relationship-Based Commercial Real Estate Lending
Relationship-Based Commercial Real Estate Lending Target Market • New York metropolitan area real estate entrepreneurs with a net worth in excess of $50 million • Primarily concentrated in the New York MSA • Well-diversified across multiple property types Key Metrics • Weighted average LTV of 61% •
Slide 12: Commercial & Industrial Growth Driven by Expertise in Specific Lending Verticals
Commercial & Industrial Growth Driven by Expertise in Specific Lending Verticals Target Market • Middle market businesses with revenues up to $400 million • Well-diversified across industries Key Metrics • Strong historical credit performance - Pledged collateral and/or personal guarantees from high
Slide 13: Well-Developed, Sector Diversified CRE and C&I Healthcare Portfolio
Well-Developed, Sector Diversified CRE and C&I Healthcare Portfolio • Active in Healthcare lending since 2002. • No realized losses since 2002. • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 71%. • Highly selective regarding the quality of Skilled Nursing Operators that we finance. • Bo
Slide 14: Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State at December 31, 2023 C&I Skilled Nursing Facility Exposure by State at December 31, 2023 29% 28% 10% 5% 9% 19% 29% New York 28% Florida 10% New Jersey 5% Virginia 9% Indiana 1
Slide 15: Well-Structured, Geographically Diversified CRE Office Portfolio
Well-Structured, Geographically Diversified CRE Office Portfolio Office by Region at December 31, 2023 36% 6% 15% 31% 10% 36% Manhattan 15% Brooklyn 6% Queens 2% Bronx 31% New York Metropolitan Area (outside NYC) 10% Non New York Metropolitan Area Office Overview at December 31, 2023 • Well structur
Slide 16: Deposit Composition and Verticals
$1,254 $1,226 $1,475 $1,539 $1,684 $1,667 $894 $869 $995 $1,125 $1,129 $1,181 $941 $840 $850 $839 $882 $400 $890 $598 $455 $502 $515 $655 $707 $747 $699 $731 $785 $781 $774 $495 $353 $332 $338 $325 $9 $26 $163 $189 $238 $4,970 $4,784 $4,853 $5,231 $5,522 $5,737 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 202
Slide 17: Global Payments Group
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Slide 18: About Global Payments Group
About Global Payments Group • Domestic and international digital payments settlements • Gateway to payment networks – Wire, ACH, Visa, Mastercard, Remittance • Custodian of deposits on behalf of clients and their customers • Contributed $781 million of deposits at December 31, 2023. • Sponsorship fo
Slide 19: Selected Financial Information
Selected Financial Information 18
Slide 20: Proven High Growth Business Model
Proven High Growth Business Model Loans1 | $ millions $1,404 $1,661 $2,791 $3,830 $6,436 $5,278 $5,737 2017 2018 2019 2020 2021 2022 2023 Deposits | $ millions $63 $83 $108 $142 $181 $256 $251 2017 2018 2019 2020 2021 2022 2023 Revenue | $ millions $12 $26 $30 $39 $60 $59 $77 2017 2018 2019 2020 202
Slide 21: Highly Profitable, Scalable Model
Highly Profitable, Scalable Model This represents the percentage of total non-interest income (less any gains on sale of securities) as compared to total revenue. 1 Non-GAAP financial measures. See reconciliation on slide 23. 2 Total non-interest expense divided by Total revenues. 3 Includes a $35.0
Slide 22: Credit Metrics
Credit Metrics NCOs/Average Loans Non-Performing Loans/Loans ACL/Loans Non-Performing Loans/ACL 0.32% -0.06% -0.13% 0.01% 0.13% 0.00% 0.02% 2017 2018 2019 2020 2021 2022 2023 1.05% 1.02% 0.98% 1.13% 0.93% 0.93% 1.03% 2017 2018 2019 2020 2021 2022 2023* 0.24% 0.02% 0.17% 0.20% 0.28% 0.00% 0.92% 2017
Slide 23: Capital Ratios
Capital ratios* Common Equity Tier 1 Capital Ratio 15.3% 13.2% 10.1% 10.1% 14.1% 12.1% 11.5% 2017 2018 2019 2020 2021 2022¹ 2023² Minimum to be "Well Capitalized" * These capital ratios are for Metropolitan Bank Holding Corp. 1 Includes a $35.0 million charge for a regulatory settlement reserve in t
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures * Tangible common equity divided by common shares outstanding at period-end. In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings presentation includes certain non-GAAP financial measures.
Metropolitan Bank Holding — Q4 2023 Earnings Presentation on 6ix