Metrocity Bankshares, Inc. · NASDAQ:MCBS
Metrocity Bankshares — IPO Roadshow (September 2019)
26 slides from Metrocity Bankshares's IPO roadshow presentation, Sep 24, 2019
Slide 1: Initial Public Offering
Initial Public Offering NASDAQ: MCBS September 2019 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333 - 233625 Dated September 24, 2019
Slide 2: Disclaimer
2 Disclaimer MetroCity Bankshares , Inc. (“ MetroCity ”, the “Company” or “we”) has filed a registration statement (including a prospectus, which is preliminary and subject to com ple tion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relat
Slide 3: Offering Summary
3 Offering Summary Issuer Ticker / Exchange Base Offering Size Filing Range Base Shares Offered Overallotment Pro Forma Market Capitalization Lock - Ups Use of Proceeds Joint Bookrunning Managers Co - Manager Expected Pricing Date MetroCity Bankshares , Inc. MCBS / Nasdaq Global Select $30.1 million
Slide 4: Company Overview
4 Company Overview Headquarters • Atlanta Metro Area (Doraville, Georgia) 2019 Q2 Size and Scale • $1.5 billion in total assets • $1.3 billion in gross loans (including HFS) • $1.3 billion in total deposits Focus • Non - conforming mortgage lending, SBA lending and conservative CRE lending • Predomi
Slide 5: History of Metro City Bank
5 History of Metro City Bank 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Opened April 2006 • $14.9mm in equity 2006 • Opened a branch in Suwanee, GA 2008 • Achieved 2% ROAA • Acquired Global Commerce (FDIC - Assisted) • Acquired Opelika branch from S ynovus to enter Alabama 20
Slide 6: Senior Management Team
6 Senior Management Team Name Holding Company Title Years in Industry Year Joined MetroCity Prior Experience Nack Y. Paek Chairman and Chief Executive Officer 38 2006 • Founder of MetroCity Bankshares, Inc. and Metro City Bank • Served as President of Government Loan Service Corp. which specialized
Slide 7: Key Investment Highlights
7 Key Investment Highlights • Double - digit percentage asset growth in each of the last three years, driven by investments in personnel and branch infrastructure • Since 2015, we have added eleven full - service branches in carefully selected locations and added 112 employees • Investments yielded
Slide 8: Beneficial Ownership of Directors and Executive Officers
8 Beneficial Ownership of Directors and Executive Officers Name Age Year Joined Principal Occupation Nationality Title and Position with the Company Shares of Common Stock Beneficially Owned Nack Y. Paek 77 2006 Chairman and CEO of MetroCity Bankshares, Inc. Korean Chairman and CEO 5.29% Farid Tan 6
Slide 9: Financial Snapshot
9 $562.9 $870.9 $1,020.0 $1,244.2 $1,296.2 2015 2016 2017 2018 6/30/2019 Financial Snapshot Total Deposits Net Income $16.6 $20.2 $31.9 $41.3 $21.7 2015 2016 2017 2018 6/30/2019 Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respe
Slide 10: Exceptional Profitability and Growth
10 2.61% 2.42% 2.77% 3.01% 2.94% 2015 2016 2017 2018 6/30/2019 20.9% 21.2% 27.2% 28.0% 25.5% 2015 2016 2017 2018 6/30/2019 40.9% 44.7% 37.0% 40.3% 40.3% 2015 2016 2017 2018 6/30/2019 Efficiency Ratio (1 ) Net Interest Margin Exceptional Profitability and Growth Return on Average Equity Note : Financ
Slide 11: Peer-Leading Performance
11 Peer - Leading Performance (1) Performance Metrics vs. Peers (3) Growth Metrics vs. Peers (2) Peer Median (1) Ethnic Peer G roup includes eight banks traded on either the NYSE or the Nasdaq Global Select Market and headquartered in the United States with a primary focus on serving distinct ethnic
Slide 12: Strong Focus on Credit
12 0.91% 0.36% 0.83% 0.63% 1.10% 2015 2016 2017 2018 6/30/2019 Strong Focus on Credit NPAs / Total Assets Credit Quality Highlights • Adherence to disciplined and well - defined underwriting practices » No delegated individual lending authority » Lending authority governed by graduated size limits a
Slide 13: Diverse Loan Portfolio
13 Diverse Loan Portfolio 6/30/2019 Note: Dollars in millions unless otherwise noted Loan Portfolio Highlights 12/31/2014 Construction and Development $37.8 7.7% Commercial Real Estate $317.9 65.0% Commercial and Industrial $32.0 6.5% Consumer $16.7 3.4% Residential Real Estate $83.9 17.2% Other $0.
Slide 14: Residential Real Estate Lending
14 Residential Real Estate Lending Geographic Breakdown Residential Real Estate Loan Balances Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respecti ve year or the six months ended June 30 , 2019 Gain on Sale/Servicing Income Vol
Slide 15: SBA Lending Continues to Support Growth
15 SBA Balances Major Industry Exposure Note: Dollars in millions unless otherwise noted. Financial data is as of or for the years ended December 31 of each respecti ve year or the six months ended June 30, 2019 SBA Lending Continues to Support Growth Gain on Sale/Servicing Income Volume of SBA Loan
Slide 16: Well Diversified Revenue Streams
16 • For the year ended December 31, 2018 and six months ended June 30, 2019, 39.3% and 39.4%, respectively, of revenue came from noninterest income • Noninterest income for the six - month period ended June 30 , 2019 was $19.5 million, an increase of $172,000 or 0.9%, compared to $19.4 million for
Slide 17: Deposit Portfolio
17 Noninterest - bearing $309.3 23.9% NOW and other $35.4 2.7% Money market and savings $161.8 12.5% Time deposits $250,000 or less $580.4 44.8% Time deposits greater than $250,000 $209.3 16.1% 0.85% 0.96% 1.09% 1.60% 2.17% 2015 2016 2017 2018 6/30/2019 Deposit Portfolio Total: $1,296.2 m illion 93.
Slide 18: Strong Capital Position
18 19.40% 14.89% 17.08% 18.16% 18.66% 2015 2016 2017 2018 6/30/2019 13.20% 10.19% 10.76% 11.14% 11.67% 2015 2016 2017 2018 6/30/2019 13.33% 9.75% 10.48% 11.77% 12.09% 2015 2016 2017 2018 6/30/2019 Strong Capital Position Tier 1 Leverage Ratio Tangible Common Equity to Tangible Assets (1) Note: Finan
Slide 19: Pro Forma Capitalization
19 Pro Forma Capitalization (1) Assumes 1,000,000 base primary shares offered at the midpoint of the range, 6.50% underwriting spread and $1.4 million in oth er offering expenses for $13.0 million of net proceeds. For regulatory capital purposes, net proceeds are assumed to carry a risk - weighting
Slide 20: Appendix
Appendix
Slide 21: Non-Qualified Mortgage Overview
21 Non - Qualified Mortgage Overview • Title XIV of Dodd - Frank governs the ATM/QM Rule, which clearly defines the loan characteristics required for a loan to be considered a “qualified mortgage”: 1. Loan must be fully - amortizing (no interest - only, negative amortization or other risky loan feat
Slide 22: Non-QM Securitizations for Select Issuers
22 Non - QM Securitizations for Select Issuers • MetroCity’s non - QM portfolio has competitive cost and comparable or superior borrower statistics versus historic issuances from Angel Oak, STWD, EFC, Arroyo Mortgage and Bunker Hill • Non - QM Portfolio Weighted Average Coupon : • MCBS at 5.55% vs.
Slide 23: Selected Historical Consolidated Financials
23 Selected Historical Consolidated Financials (1) Represents annualized June 30, 2019 and 2018 data (2) Represents non - interest expense divided by the sum of net interest income plus non - interest income As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars
Slide 24: Selected Historical Consolidated Financials
24 Selected Historical Consolidated Financials (1) Represents annualized June 30, 2019 and 2018 data (2) Represents a non - GAAP financial measure. See following pages for reconciliation to the most comparable GAAP financial measures As of or for the Year Ended As of or for the Six Months Ended Dece
Slide 25: Non-GAAP Reconciliation
25 Non - GAAP Reconciliation Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. Our management uses the non - GAAP financial measures set forth below in its analysis of our performance . • “Tangible common equity” is defined as
Slide 26: Non-GAAP Reconciliation
26 Non - GAAP Reconciliation As of or for the Year Ended As of or for the Six Months Ended December 31, June 30, (Dollars in thousands) 2015 2016 2017 2018 2018 2019 Adjusted allowance for loan losses to gross loans: Gross Loans 570,755 804,318 1,068,593 1,145,714 1,094,229 1,190,911 Less: Auto loan