Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q3 2023 Earnings Presentation
25 slides from Metropolitan Bank's earnings presentation, Oct 19, 2023
Slide 1: 3Q 2023 Investor Presentation
3Q 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, Delivering 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 • Conservative cr
Slide 4: Highly Liquid and Resilient Balance Sheet
31.6% 32.7% 27.1% Metropolitan Commercial Bank Metropolitan Commercial Bank Median² Q3'23 $5.3 $5.5 4Q 2022 3Q 2023 11.9% 11.9% 11.8% Metropolitan Commercial Bank Metropolitan Commercial Bank Median² Highly Liquid and Resilient Balance Sheet 1 Common Equity Tier 1 Capital Ratio 2 Source: S&P Global
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 Providing Critical Financial Infrastructure
Innovative Payment Solutions 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 Remittan
Slide 7: Track Record of Strong Operating Performance
$2.34 $3.06 $3.56 $4.66 $6.45 $5.29 $5.61 2017 2018 2019 2020 2021 ĩ :5% Ī Track Record of Strong Operating Performance 1 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 24. 2 CAGR from December 31, 2017 through Q3'23 3 CAGR from December 31, 2017 through Q3'23 annual
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, except 2023, which represents annualized NIM for the nine months ended September 30, 2023. Net Interest Margin Analysis 1.00% 1.83% 2.16% 0.36% 0.08% 1.68% 4.93% 3.52% 3.70% 3.46% 3.26%
Slide 9: Commercial Bank
Commercial Bank nce OE
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: 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 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 • Weighted average LTV of 61% •
Slide 13: Well-Developed, Sector Diversified Healthcare Portfolio
Well-Developed, Sector Diversified Healthcare Portfolio • Active in Healthcare lending since 2002. • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 71%. • Highly selective regarding the quality of Skilled Nursing Operators that we finance. • Borrowers are very experienced operators that t
Slide 14: Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State at September 30, 2023 C&I Skilled Nursing Facility Exposure by State at September 30, 2023 33% 27% 8% 6% 5% 21% 33% New York 27% Florida 8% New Jersey 6% Virginia 5% Indiana 2
Slide 15: Well-Structured, Geographically Diversified Office Portfolio
Well-Structured, Geographically Diversified Office Portfolio Office Exposure by Region at September 30, 2023 36% 7% 15% 31% 9% 36% Manhattan 15% Brooklyn 7% Queens 2% Bronx 31% New York Metropolitan Area (outside NYC) 9% Non New York Metropolitan Area Office Overview at September 30, 2023 • Well str
Slide 16: Deposit Composition and Verticals
$1,529 $1,654 $1,833 $1,956 $2,204 $2,388 $862 $894 $869 $995 $1,125 $1,129 $1,041 $941 $840 $850 $839 $882 $545 $707 $747 $699 $731 $785 $888 $714 $425 $332 $321 $331 $65 $60 $70 $21 $11 $7 $4,930 $4,970 $4,784 $4,853 $5,231 $5,522 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Specialty Deposits*
Slide 17: Global Payments Group
Global Payments Group commerce gaan Ga | “2 16
Slide 18: Digital Payments Worldwide
Digital Payments Worldwide • 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 • Sponsorship for select clients as an extension of MCB’s expertise and legal
Slide 19: Digital Payments Worldwide: Transactions and Revenue
13.00 13.24 18.28 13.70 15.93 20.38 13.26 17.65 22.12 38.60 42.30 51.08 13.35 16.98 53.31 63.80 60.78 2018 2019 2020 2021 2022 YTD 2023 4Q 3Q 2Q 1Q Digital Payments Worldwide Non-bank financial service companies1 Client Transactions | Count in millions 1 Does not include digital currency businesses.
Slide 20: Selected Financial Information
Selected Financial Information 19
Slide 21: Proven High Growth Business Model
Proven High Growth Business Model Loans1 | $ millions $1,404 $1,661 $2,791 $3,830 $6,436 $5,278 $5,522 2017 2018 2019 2020 2021 2022 3Q 2023 Deposits | $ millions $63 $83 $108 $142 $181 $256 $187 2017 2018 2019 2020 2021 2022 YTD 2023 Revenue | $ millions $12 $26 $30 $39 $60 $59 $63 2017 2018 2019 2
Slide 22: 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 24. 2 Annualized 3 Total non-interest expense divided by Total revenues. 4 Inc
Slide 23: 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% 0.01% 2017 2018 2019 2020 2021 2022 YTD 2023¹ 1.05% 1.02% 0.98% 1.13% 0.93% 0.93% 0.98% 2017 2018 2019 2020 2021 2022 3Q 2023* 0.24% 0.02% 0.17% 0.20% 0.28% 0.00% 0.5
Slide 24: Capital Ratios
Capital ratios* Common Equity Tier 1 Capital Ratio 15.3% 13.2% 10.1% 10.1% 14.1% 12.1% 11.8% 2017 2018 2019 2020 2021 2022¹ 3Q 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 i
Slide 25: 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 — Q3 2023 Earnings Presentation on 6ix