Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q3 2019 Earnings Presentation
21 slides from Metropolitan Bank's earnings presentation, Oct 24, 2019
Slide 1: Investor Presentation 2019 Q3
Investor Presentation 2019 Q3
Slide 2: Forward-looking Statement
1 Forward - looking Statement This presentation contains certain “forward - looking statements” about the Company which, to the extent applicable, are intended to be covered by the safe harbor for forward - looking statements provided under Federal securities laws. Examples of forward - looking stat
Slide 3: Company Overview
2 Company Overview ▪ Full service commercial bank since 1999 with goal of helping our clients build and sustain wealth ▪ Business model combines high - touch service and relationship - based focus of a community bank with extensive suite of financial products and services ▪ Expertise in commercial r
Slide 4: Loan and Deposit Portfolio
3 Loan and Deposit Portfolio Metropolitan Commercial Bank • Multi - family loans – 60% rent regulated • CRE/RBC ratios: MCBH 394.82% and MCB 390.62% • CRE Owner - occupied is a segment of our C&I Lending platform Loan Portfolio at September 30, 2019 $2.50 Billion Deposits at September 30, 2019 $ 2 .
Slide 5: Quarterly Revenues, Profitability and Asset Quality
4 Quarterly Revenues, Profitability and Asset Quality *annualized (1) Results include a recovery of $4.2 million related to loans previously charged off in Q1. (2) Results include a recovery of $1.5 million related to loans previously charged off. 3 Months ended 9/30/2019 6/30/2019 3/31/2019 12/31/2
Slide 6: Net Interest Margin Analysis
5 Net Interest Margin Analysis 3.76% 3.77% 3.68% 3.47% 3.26% 4.49% 4.65% 4.83% 4.66% 4.47% 1.69% 1.90% 2.15% 2.22% 2.15% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 3Q18 4Q18 1Q19 2Q19 3Q19 Net Interest Margin Components ▬ NIM ▬ Yield on Interest - Earning Assets ▬ Rate on Interest - Bearing Liabilities Yie
Slide 7: Non-interest Income and Expense Detail
Non-interest Income and Expense Detail Non-Interest Income ($000s) Non-Interest Expense ($000s) 9/30/19 6/30/19 12/31/18 9/30/18 Service Charges on Deposit Accounts $852 $908 $826 $693 Prepaid Debit Card Income 1,482 1,422 1,133 1,080 Other Service Charges and Fees 349 313 229 239 Change in fair val
Slide 8: Balance Sheet and Capital
7 Balance Sheet and Capital *Metropolitan Bank Holding Corp. and Metropolitan Commercial Bank meet all the requirements to be considered “Well - Capitalized” under applicable regulatory guidelines at each date shown. (dollars in thousands) 6/30/19 12/31/18 Balance Sheet ($000's) Total Assets $282,55
Slide 9: Strong Balance Sheet Growth
8 Strong Balance Sheet Growth Deposits ($mm) Total Equity ($mm) Assets ($mm) Loans, Net of Deferred Fees ($mm) $1,931 $2,183 $2,545 $2,961 $3,243 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 $1,699 $1,865 $2,102 $2,336 $2,497 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 $1,534 $1,661 $1,966 $2,376 $2,705 2018Q3 2018Q4
Slide 10: Robust Organic Loan Growth within a Diversified Portfolio
9 Robust Organic Loan Growth within a Diversified Portfolio 1 Includes commercial real estate, multifamily, and construction (dollars in millions) ■ Total CRE¹ (Non Owner Occupied) ■ Total CRE (Owner Occupied) ■ C&I ■ Other $1,600 $1,699 $1,867 $2,105 $2,339 $2,501 903 964 1,063 1,142 1,330 1,409 23
Slide 11: Commercial Growth Driven by Expertise in Specific Lending Verticals
10 Commercial Growth Driven by Expertise in Specific Lending Verticals General Commercial and Industrial Overview C&I Composition at September 30, 2019 Target Market Key Metrics ▪ Middle market businesses with annual revenues below $200mm ▪ Primarily concentrated in the New York MSA ▪ Well - diversi
Slide 12: Relationship-based Commercial Real Estate Lending
11 Relationship - based Commercial Real Estate Lending Composition by Type at September 30, 2019 Composition by Region at Septe mber 30, 2019 Overview Target Market Key Metrics ▪ New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million ▪ Primarily concentrated in
Slide 13: NYC Stabilized Multi-family Loan Portfolio
12 NYC Stabilized Multi - family Loan Portfolio New Rent Regulations ▪ MCB multi - family loans underwritten to current cash flows – weighted average DCR of 1.78 on stabilized rent regulated properties ▪ Average LTV of 47% on stabilized rent regulated properties provide a cushion against falling val
Slide 14: Well-Developed, Diversified Healthcare Portfolio
13 Well - Developed, Diversified Healthcare Portfolio ▪ Active in Healthcare lending since 2002 ▪ CRE – SNF – Average loan - to - value of 69% ▪ Highly selective in regards to the quality of Skilled Nursing Operators which we finance ▪ Borrowers typically have over 1,000 beds under management ▪ Loan
Slide 15: Credit Metrics
14 Credit Metrics 0.02% 0.02% 0.07% 0.15% 0.19% 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 ALLL/Loans Non - Performing Assets/ALLL NCOs/Average Loans (Annualized) Non - Performing Assets/Loans 1.09% 1.02% 0.99% 0.97% 0.98% 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2.2% 1.5% 7.2% 15.4% 19.3% 2018Q3 2018Q4 2019Q1 20
Slide 16: Diversified Deposit Gathering Capabilities
15 Diversified Deposit Gathering Capabilities Deposit Composition ($mm) 1,012 878 773 799 866 1,103 1,041 605 662 761 862 1,100 1,273 1,664 $1,617 $1,540 $1,534 $1,661 $1,966 0.38% 0.44% 0.62% 0.81% 1.06% 1.12% 1.20% 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 $ 2,376 $ 2,705 ▪ Conversion of co
Slide 17: Well Positioned for Changing Rate Environment
16 Well Positioned for Changing Rate Environment Estimated Sensitivity of Projected Annualized Net Interest Income as of June 30, 2019 Fixed vs. Floating Rate Loans at September 30, 2019 11.03% 3.96% (3.13%) (6.68%) -200bps -100bps +100bps +200bps Floating 41% Fixed 59% Approximately 63.7 % of float
Slide 18: Outlook: Loan and Deposit growth, Margin Expansion, Operating Leverage
17 Outlook: Loan and Deposit growth, Margin Expansion, Operating Leverage Loan Growth Core Deposit Funding Performance ▪ Maintain a diversified commercial real estate portfolio ▪ Maintain CRE concentration below our internal limits ▪ Capture market share from larger competitors through differentiate
Slide 19: Appendix
Metropolitan Mce Commerc Bank @ csre0 The Entrepreneurial eiiSnceisag NYSE Appendix
Slide 20: MCB Selected Global Payment Clients
19 MCB Selected Global Payment Clients Debit Card For teens with parental spending controls and financial literacy lessons Metropolitan Commercial Bank Issuing Bank Debit Card Premier mobile service provider in the Caribbean and Central America for money transfer Metropolitan Commercial Bank Issuing
Slide 21: MCB Selected Global Payment Clients
20 MCB Selected Global Payment Clients Debit Card Issuer of debit cards linked to margin accounts for the largest U.S. electronic brokerage firm Metropolitan Commercial Bank Issuing Bank Payments Platform Providing global payment services via banking relationships throughout the world Metropolitan C
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