Metrocity Bankshares, Inc. · NASDAQ:MCBS
Metrocity Bankshares — KBW Virtual Community Bank Investor Conference 2021
21 slides from Metrocity Bankshares's conference presentation, Aug 2, 2021
Slide 1: KBW Virtual Community Bank Investor Conference
KBW Virtual Community Bank Investor Conference NASDAQ: MCBS August 2021
Slide 2: Disclaimer
2 Disclaimer This presentation contains “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be regarding future events an
Slide 3: Company Overview
3 Company Overview Headquarters • Doraville, Georgia (Atlanta Metro Area) 2021 YTD Size and Scale • $2.5 billion in total assets • $2.1 billion in gross loans • $2.0 billion in total deposits Focus • Non-conforming mortgage lending, SBA lending and conservative CRE lending • Predominantly Asian-Amer
Slide 4: History of Metro City Bank
4 History of Metro City Bank • 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 Synovus to enter Alabama 2012 • Entered the Washington D.C. area by opening a branch in Centrev
Slide 5: Senior Management Team
5 Senior Management Team Name Holding Company Title Years in Industry Year Joined MetroCity Prior Experience Nack Y. Paek Chairman and Chief Executive Officer 40 2006 • Founder of MetroCity Bankshares, Inc. and Metro City Bank • Served as President of Government Loan Service Corp. which specialized
Slide 6: Key Investment Highlights
6 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 115 employees • Investments yielded grow
Slide 7: Beneficial Ownership of Executive Officers and Directors
7 Beneficial Ownership of Executive Officers and Directors Name Age Year Joined Principal Occupation Nationality Title and Position with the Company Shares of Common Stock Beneficially Owned Nack Y. Paek 79 2006 Chairman and CEO of MetroCity Bankshares, Inc. Korean Chairman and CEO 5.04% Farid Tan 6
Slide 8: YTD Financial Snapshot
8 $870.9 $1,020.0 $1,244.2 $1,307.4 $1,479.9 $1,974.8 2016 2017 2018 2019 2020 2021 YTD Financial Snapshot Total Deposits ($mm) Net Income ($mm) $20.2 $31.9 $41.3 $44.7 $36.4 $27.4 2016 2017 2018 2019 2020 2021 YTD Note: Dollars in millions unless otherwise noted. Financial data is as of or for the
Slide 9: Exceptional Profitability and Growth
9 2.42% 2.77% 3.01% 2.87% 2.17% 2.57% 2016 2017 2018 2019 2020 2021 YTD 21.2% 27.2% 27.9% 24.2% 16.0% 21.9% 2016 2017 2018 2019 2020 2021 YTD 44.7% 37.0% 40.3% 39.7% 44.0% 36.1% 2016 2017 2018 2019 2020 2021 YTD Efficiency Ratio Net Interest Margin Exceptional Profitability and Growth Return on Aver
Slide 10: Peer-Leading Performance
10 Peer-Leading Performance Performance Metrics vs. Peers(2) Growth Metrics vs. Peers(1) Peer Median Note: Ethnic Peer Group 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 commun
Slide 11: Strong Focus on Credit
11 0.36% 0.83% 0.63% 0.93% 0.89% 0.56% 2016 2017 2018 2019 2020 2021 YTD 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
Slide 12: Diverse Loan Portfolio
12 Construction and Development $58.7 2.8% Commercial Real Estate $475.7 22.7% Commercial and Industrial $134.1 6.4% Consumer and Other $0.2 0.0% Residential Real Estate $1,430.8 68.1% Diverse Loan Portfolio 6/30/2021 Note: Dollars in millions unless otherwise noted Loan Portfolio Highlights 12/31/2
Slide 13: Residential Real Estate Lending Geographic Breakdown
13 Residential Real Estate Lending Geographic Breakdown Residential Real Estate Loan Balances ($mm) Note: Dollars in millions unless otherwise noted. Financial data is as of or for the six months ended June 30, 2021 Gain on Sale/Servicing Income ($mm) Volume of Residential Loans Originated and Sold
Slide 14: SBA Lending Continues to Support Growth
14 SBA Balances ($mm) Major Industry Exposure(1) Note: Dollars in millions unless otherwise noted. Financial data is as of or for the six months ended June 30, 2021 (1) Excludes $93.1 million of PPP loans SBA Lending Continues to Support Growth Gain on Sale/Servicing Income ($mm) Volume of SBA Loans
Slide 15: Revenue Composition and Noninterest Income
15 Net Interest Income $46.4 73.4% SBA servicing income, net $4.0 6.4% Service charges, commissions and fees $8.1 12.8% Gain on sale - SBA loans $4.7 7.4% Gain on sale - SFR loans $0.0 0.0% Mortgage servicing income, net and other $0.0 0.0% • For the year ended December 31, 2020 and six months ended
Slide 16: Deposit Portfolio
16 NOW and Savings Deposits $113.1 5.7% Money Market Deposits $719.8 36.5% Retail Time Deposits $382.3 19.4% Jumbo Time Deposits $141.6 7.1% Noninterest Bearing Deposits $618.1 31.3% 0.69% 0.81% 1.21% 1.69% 0.83% 0.32% 2016 2017 2018 2019 2020 2021 YTD Deposit Portfolio $2.0bn 72% Core Deposits(1) D
Slide 17: Strong Capital Position
17 14.89% 17.08% 18.16% 22.01% 20.86% 18.72% 2016 2017 2018 2019 2020 2021 YTD 10.19% 10.76% 11.14% 12.70% 13.44% 11.14% 2016 2017 2018 2019 2020 2021 YTD 9.75% 10.48% 11.77% 13.28% 12.90% 10.50% 2016 2017 2018 2019 2020 2021 YTD Strong Capital Position Tier 1 Leverage Ratio Total Shareholders Equit
Slide 18: Appendix
Appendix
Slide 19: Non-Qualified Mortgage Overview
19 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 features), w
Slide 20: Selected Historical Consolidated Financials
20 Selected Historical Consolidated Financials As of or for the As of or for the Year Ended Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2016 2017 2018 2019 2020 2021 Statement of Income Data: Interest income 43,566 $ 60,514 $ 72,879 $ 83,213 $ 77,609 $ 48,560
Slide 21: Selected Historical Consolidated Financials
21 Selected Historical Consolidated Financials As of or for the As of or for the Year Ended Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2016 2017 2018 2019 2020 2021 Asset quality data: Net charge-offs to average loans held for investment 0.01% 0.17% 0.14% (0
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