Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q1 2023 Earnings Presentation
23 slides from Metropolitan Bank's earnings presentation, Apr 18, 2023
Slide 1: 1Q 2023 Investor Presentation
1Q 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: A Diversified Financial Institution: More than a Commercial Bank
A Diversified Financial Institution We are More than a Commercial Bank How We Succeed 23-Years of Reliable Asset Quality and Financial Performance and Protection • Organic business loan origination platform. • Core funded organic deposit franchise. • Helping our clients build and sustain generationa
Slide 4: A Diversified Financial Institution: Business Banking and Lending
A Diversified Financial Institution We are More than a Commercial Bank Business Banking • Our Business Bankers have deep knowledge and expertise in multiple industries, including law firms, resident healthcare, real estate property management, U.S. Trustee and Municipalities. • The Bank offers retai
Slide 5: Safeguarding, Priority One: Safety and Soundness and Industry Recognition
Safeguarding, Priority One “Safety and Soundness” and Industry Recognition 4 Capital at March 31, 2023 Metropolitan Bank Holding Corp. (the “Company”) and Metropolitan Commercial Bank (the “Bank”) are well capitalized across all measures of regulatory capital, with a total risk-based capital of 13.6
Slide 6: Proven High Growth Business Model
Proven High Growth Business Model Loans $ millions $1,404 $1,661 $2,791 $3,830 $6,436 $5,278 $5,132 2017 2018 2019 2020 2021 2022 1Q 2023 Deposits $ millions $63 $83 $108 $142 $181 $256 $66 2017 2018 2019 2020 2021 2022 1Q 2023 Revenue $ millions $12 $26 $30 $39 $60 $59 $25 2017 2018 2019 2020 2021
Slide 7: Sustained High Performance and Well Positioned
Sustained High Performance and Well Positioned 6 13.8% 3.1% Metropolitan Commercial Bank KRX Index² Revenue CAGR1 2017–2022 Tangible book value per share CAGR1 2017–2022 Earnings per share CAGR1 2017–2022 Source: FactSet, S&P Global Market Intelligence 1 CAGR from December 31, 2017 through December
Slide 8: Delivering Financial Results: First Quarter Financial Highlights
Delivering Financial Results First Quarter Financial Highlights Year-Over-Year • Net income of $25.1 million, an increase of 31.8%. • Diluted earnings per share of $2.25, an increase of 33.1%. • Revenues1 of $65.5 million, an increase of 21.2%. • Net interest income of $58.5 million, an increase of
Slide 9: 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 10: 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 annual revenue of $5 million to $200 million • Well-diversified across industries Key Metrics • Strong historical credit performance - Pledged collateral and/or personal gua
Slide 11: 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 60% •
Slide 12: 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 72% • Highly selective regarding the quality of Skilled Nursing Operators that we finance • Borrowers typically have over 1,000 beds under man
Slide 13: Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State at March 31, 2023 C&I Skilled Nursing Facility Exposure by State at March 31, 2023 34% 26% 9% 7% 6% 18% 34% New York 26% Florida 9% New Jersey 7% Virginia 6% Indiana 18% Other
Slide 14: Well-Structured, Geographically Diversified Office Portfolio
Well-Structured, Geographically Diversified Office Portfolio Office Exposure by Region at March 31, 2023 37% 7% 16% 26% 12% 37% Manhattan 16% Brooklyn 7% Queens 2% Bronx 26% New York Metropolitan Area (outside NYC) 12% Non New York Metropolitan Area Office Overview at March 31, 2023 • Well structure
Slide 15: Deposit Composition and Core Deposit Verticals
$1,501 $1,492 $1,529 $1,654 $1,833 $1,956 $736 $734 $862 $894 $869 $995 $1,121 $1,129 $1,041 $941 $840 $850 $495 $481 $545 $707 $747 $699 $934 $930 $888 $714 $425 $332 $127 $69 $65 $60 $70 $21 $4,915 $4,835 $4,930 $4,970 $4,784 $4,853 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Specialty Deposit
Slide 16: Digital Payments Worldwide: Global Payments Group
Digital Payments Worldwide Global Payments Group • 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’
Slide 17: Digital Payments Worldwide: Client Transactions and Revenue by Category
13.00 13.24 18.28 13.70 15.93 13.26 17.65 38.60 42.30 51.08 13.35 16.98 53.31 63.80 2018 2019 2020 2021 2022 Q1 2023 4Q 3Q 2Q 1Q Digital Payments Worldwide Global Payments Group Non-bank financial service companies1 Client Transactions | Millions 1 Does not include digital currency businesses. 2 Cer
Slide 18: Well Managed Net Interest Margin
Well Managed Net Interest Margin 1 Represents full-year NIM, except 2023, which represents annualized NIM for the three months ended March 31, 2023. 2 Represents effective average daily FRB funds rate. Net Interest Margin Analysis 1.00% 1.83% 2.16% 0.36% 0.08% 1.68% 4.52% 3.52% 3.70% 3.46% 3.26% 2.7
Slide 19: 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 22. 2 Total non-interest expense divided by Total revenues. * Annualized **
Slide 20: 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 1Q 2023 1.05% 1.02% 0.98% 1.13% 0.93% 0.93% 0.98% 2017 2018 2019 2020 2021 2022 1Q 2023* 0.24% 0.02% 0.17% 0.20% 0.28% 0.00% 0.50%
Slide 21: Capital Ratios
Capital ratios* Common Equity Tier 1 Capital Ratio 18.4% 15.6% 11.8% 11.6% 14.4% 12.3% 12.3% 2017 2018 2019 2020 2021 2022** Q1 2023*** Minimum to be "Well Capitalized" * These capital ratios are for Metropolitan Commercial Bank Only ** Includes a $35.0 million charge for a regulatory settlement res
Slide 22: Appendix
Appendix con Matrapaltan GA) | cz NYSE 21
Slide 23: 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 — Q1 2023 Earnings Presentation on 6ix