Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q1 2020 Earnings Presentation
23 slides from Metropolitan Bank's earnings presentation, Apr 21, 2020
Slide 1: Investor Presentation 2020 Q1
Investor Presentation 2020 Q1
Slide 2: Forward-looking Statement
1 Forward - looking Statement 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 financial condition and capital ratios, results o
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 – 50 % rent regulated • CRE/RBC ratio: MCB 408.3 % • CRE Owner - occupied is a segment of our C&I Lending platform Loan Portfolio at March 31, 2020 $2.77 Billion Deposits at March 31, 2020 $3.02 Billion 27% 14% 4% 22% 3
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 the first quarter of 2019. Excluding this recovery, net income would have been $5.6 million. (2) First quarter 2020 results include a pro vision
Slide 6: Net Interest Margin Analysis
5 Net Interest Margin Analysis 3.69% 3.47% 3.26% 3.35% 3.38% 4.83% 4.66% 4.47% 4.38% 4.22% 2.22% 2.22% 2.15% 1.77% 1.48% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 1Q19 2Q19 3Q19 4Q19 1Q20 Net Interest Margin Components ▬ NIM ▬ Yield on Interest - Earning Assets ▬ Rate on Interest - Bearing Liabilities Yie
Slide 7: Non-interest Income and Expense Detail
6 Non - interest Income and Expense Detail Non - Interest Income ($000s) Non - Interest Expense ($000s) (1) Includes expenses related to additional leased space at the Company’s headquarter in the amounts of $615,000 for the firs t quarter of 2020 and the fourth quarter of 2019; and $400,000 for the
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. 12/31/19 3/31/19 Balance Sheet ($000's) Total Assets $254,440 $1,066,826 Total Loan
Slide 9: Strong Balance Sheet Growth
8 Strong Balance Sheet Growth Deposits ($mm) Total Equity ($mm) Assets ($mm) Loans, Net of Deferred Fees ($mm) $2,545 $2,961 $3,243 $3,358 $3,612 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 $2,102 $2,336 $2,497 $2,673 $2,766 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 $1,966 $2,376 $2,705 $2,791 $3,022 2019Q1 2019Q2
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 ■ Total CRE ( 1) (Non - Owner Occupied) ■ Total CRE (Owner Occupied) ■ C&I ■ Other $2,105 $2,339 $2,501 $2,678 $2,771 139 1,142 1,330 1,409 1,530 1,551 366 419 495 545 599 42
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 March 31, 2020 Target Market Key Metrics ▪ Middle market businesses with annual revenues below $200mm ▪ Primarily concentrated in the New York MSA ▪ Well - diversified
Slide 12: Relationship-based Commercial Real Estate Lending
11 Relationship - based Commercial Real Estate Lending Composition by Type at March 31, 2020 Composition by Region at March 31, 2020 Overview Target Market Key Metrics ▪ New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million ▪ Primarily concentrated in the New
Slide 13: NYC Stabilized Multi-family Loan Portfolio
12 NYC Stabilized Multi - family Loan Portfolio ▪ MCB multi - family loans underwritten to current cash flows – weighted average DCR of 1.80 on stabilized rent regulated properties ▪ Average LTV of 46.95% on stabilized rent regulated properties provide a cushion against falling values (dollars in th
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 68% ▪ Highly selective with the quality of Skilled Nursing Operators which we finance ▪ Borrowers typically have over 1,000 beds under management ▪ Loans are mad
Slide 15: Healthcare Portfolio: CRE Skilled Nursing Facility Exposure By State
14 Well - Developed, Diversified Healthcare Portfolio CRE Skilled Nursing Facility Exposure By State 6% 14% 1% 5% 8% 4% 4% 6% 35% 1% 6% 1% 5% 4% California Florida Georgia Indiana Maryland Massachusetts Missouri New Jersey New York Ohio Pennsylvania Rhode Island Tennessee Wisconsin Florida 71,811,60
Slide 16: Healthcare Portfolio: C&I Skilled Nursing Facility Exposure By State
15 Well - Developed, Diversified Healthcare Portfolio C&I Skilled Nursing Facility Exposure By State 7% 2% 4% 52% 13% 22% Florida Georgia/Indiana/Wisconsin New Jersey New York Pennsylvania Tennessee State Balance ($000's) % of Total C&I SNF Florida 7,222 7% New Jersey 4,693 4% New York 57,046 52% Ge
Slide 17: Credit Metrics
16 Credit Metrics 0.07% 0.15% 0.19% 0.17% 0.23% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 ALLL/Loans Non - Performing Assets/ALLL NCOs/Average Loans (Annualized) Non - Performing Assets/Loans 0.99% 0.97% 0.98% 0.98% 1.12% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 7.2% 15.4% 19.3% 17.1% 20.5% 2019Q1 2019Q2 2019Q3
Slide 18: Deposit Composition
17 Deposit Composition (1) Includes liquidation, receivership, litigation settlement and other fiduciary accounts. $1,966 $2,376 $2,705 $2,791 $3,022 707 675 758 805 898 262 425 527 580 861 210 285 355 375 387 283 310 328 392 353 244 225 221 207 219 210 205 139 104 129 50 251 377 328 173 2019Q1 2019
Slide 19: Well Positioned for Changing Rate Environment
18 Well Positioned for Changing Rate Environment Estimated Sensitivity of Projected Annualized Net Interest Income as of Dec ember 31, 2019 Fixed vs. Floating Rate Loans at March 31, 2020 6.41% (4.53%) (8.21%) -100bps +100bps +200bps Floating 41% Fixed 59% Approximately 73.37% of floating rate loans
Slide 20: Outlook: Loan and Deposit growth, Margin Expansion, Operating Leverage
19 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 21: Appendix
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Slide 22: MCB Selected Global Payment Clients
21 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 23: MCB Selected Global Payment Clients
22 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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