Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q1 2024 Earnings Presentation
28 slides from Metropolitan Bank's earnings presentation, Apr 18, 2024
Slide 1: 1Q 2024 Investor Presentation
1Q 2024 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 2. Safe & Sound • Strong liquidity and disciplined interest rate management • Strong capital position • Conservative credit culture • Diversified deposit base • Proven, in-market deposi
Slide 4: Share price performance and returns since IPO
19.8% 9.0% 1.2% Metropolitan Commercial Bank KRX Index² NYC Middle-Market Banks³ Source: Bloomberg, FactSet, S&P Global Market Intelligence 1 CAGR from December 31, 2017 through December 31, 2023 2 KRX Index represents the KBW Regional Banking Index 3 Includes BKU, CNOB, DCOM, FFIC, FLIC, NYCB, OCFC
Slide 5: Track Record of Strong Operating Performance
Track Record of Strong Operating Performance 1 Annualized. 2 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 26. 3 CAGR from December 31, 2017 through March 31, 2024. 4 MCB closing stock price on April 15, 2024, of $33.31. Strong Book Value Growth Since IPO Tangible Book Valu
Slide 6: 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% 5.33% 3.52% 3.70% 3.46% 3.26% 2.77% 3.49% 3.49% 3.40% 2017 2018 2019 2020 2021 2022 2023 1Q 2024 Average Fed Funds
Slide 7: Highly Liquid and Resilient Balance Sheet
31.6% 32.0% 30.9% 3Q 2023 4Q 2023 1Q 2024 $5.5 $5.7 $6.2 3Q 2023 4Q 2023 1Q 2024 11.8% 11.5% 11.6% 3Q 2023 4Q 2023 1Q 2024 Highly Liquid and Resilient Balance Sheet 75% Insured deposits Deposits | ($ bn) CET1 Ratio1 Non-interest bearing Deposit % Deposit Profile at March 31, 2024 222% Uninsured Depo
Slide 8: Relationship Driven Commercial Bank with Strong Client Execution
Relationship Driven Commercial Bank 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 produ
Slide 9: Core Banking Digital Transformation
Core Banking Digital Transformation Innovative 8 4 Investments in our Core Banking Platforms will provide enhanced client experiences and efficient and scalable operating systems for our employees Extensive digital proficiencies NextGen analytics capabilities API-based extensibility Optimized back-o
Slide 10: Loans and Deposits
Loans and Deposits commanronaitan Ga) | 8
Slide 11: 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. 4 Mobile Home Parks, Residential Condos/Co-ops, Temporary Shelters, Religious Orgs., Parking Lots and Garag
Slide 12: 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 March 31, 2024 • Weighted averag
Slide 13: Conservatively Underwritten Multi-family Portfolio
Conservatively Underwritten Multi-family Portfolio 12 Overview March 31, 2024 | $ millions Stabilized1 Maturity Schedule March 31, 2024 | $ millions Origination Vintage March 31, 2024 | $ millions • Total Multi-family loans: $468 mm • Weighted average LTV of 53% • Recourse on 54%, notably with recou
Slide 14: Conservatively Underwritten, Locally Diversified CRE Office Portfolio
Conservatively Underwritten, Locally Diversified CRE Office Portfolio Office by Region March 31, 2024 36% 6% 15% 31% 10% 36% Manhattan 15% Brooklyn 6% Queens 2% Bronx 31% NY Metro Area (outside NYC) 10% Non NY Metro Area Overview March 31, 2024 • Total Office loans: $378 mm • Weighted average LTV of
Slide 15: 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 16: Diversified CRE and C&I Healthcare Portfolio
Diversified CRE and C&I Healthcare Portfolio • Active in Healthcare lending since 2002. • No realized losses since 2002 and no deferrals during the pandemic. • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 71%. • Highly selective regarding the quality of Skilled Nursing Operators that we
Slide 17: Geographically Diversified Skilled Nursing Facility Portfolio
Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State March 31, 2024 C&I Skilled Nursing Facility Exposure by State March 31, 2024 31% 25% 12% 8% 24% 31% Florida 25% New York 12% New Jersey 8% Indiana 24% Other States 24% 35% 19% 5% 17% 24% New
Slide 18: Deposit Composition and Verticals
31% 61% 8% 31% Non-interest-bearing demand deposits 61% Money market & savings account 8% Time deposits 1Q Cost of total deposits: 3.16% Deposit Composition 1 Commonly referred to as the "crypto related business," which the Company exited in 2023. * Certain prior period amounts adjusted to conform t
Slide 19: Core Banking Digital Transformation
Core Banking Digital Transformation 18
Slide 20: Core Banking Digital Transformation Overview
Core Banking Digital Transformation 19 Overview • The Bank is modernizing its core, payments and online banking systems to drive continued growth. A modern stack will support future business expansion, drive efficiencies and enable a better client experience. • Digital Transformation will provide ex
Slide 21: Core Banking Digital Transformation Partners
Core Banking Digital Transformation Partners 20 Partners Service Areas About Finzly provides a modern, cloud-based, API-enabled operating system that serves as a parallel payment processing platform to a bank's core. Finzly offers a wide range of turnkey banking solutions, including a multi-rail pay
Slide 22: Selected Financial Information
Selected Financial Information 21
Slide 23: 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 $6,238 2017 2018 2019 2020 2021 2022 2023 1Q 2024 Deposits | $ millions $63 $83 $108 $142 $181 $256 $251 $67 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Revenue | $ millions $12 $26 $30 $39 $60 $59
Slide 24: Highly Profitable, Scalable Model
Highly Profitable, Scalable Model * Annualized 1 Non-GAAP financial measures. See reconciliation on slide 26. 2 Total non-interest expense divided by Total revenues. 3 Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022. 4 Includes a $5.5 million reversa
Slide 25: 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% 0.00% 2017 2018 2019 2020 2021 2022 2023 1Q 2024 1.05% 1.02% 0.98% 1.13% 0.93% 0.93% 1.03% 1.02% 2017 2018 2019 2020 2021 2022 2023* 1Q 2024 0.24% 0.02% 0.17% 0
Slide 26: Capital Ratios
Capital Ratios* Common Equity Tier 1 Capital Ratio 15.3% 13.2% 10.1% 10.1% 14.1% 12.1% 11.5% 11.6% 2017 2018 2019 2020 2021 2022¹ 2023² 1Q 2024 Minimum to be "Well Capitalized" * These capital ratios are for Metropolitan Bank Holding Corp. 1 Includes a $35.0 million charge for a regulatory settlemen
Slide 27: 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.
Slide 28: Reconciliation of GAAP to Non-GAAP Measures, continued
Reconciliation of GAAP to Non-GAAP Measures, continued (1) Annualized. 27 (dollars in thousands, except per share data) Net income (loss) $ 16,203 Regulatory remediation 2,304 GPG wind down 819 Digital transformation 1,805 Impact of adjustments 4,929 Tax impact (1,640) Impact of adjustments, net of
Metropolitan Bank Holding — Q1 2024 Earnings Presentation on 6ix