Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q4 2019 Earnings Presentation
23 slides from Metropolitan Bank's earnings presentation, Jan 22, 2020
Slide 1: Investor Presentation 2019 Q4
Investor Presentation 2019 Q4
Slide 2: Forward-looking Statement
1 Forward - looking Statement This presentation contains certain “forward - looking statements” about the Company which, to the extent applicable, are intended to be covered by the safe harbor for forward - looking statements provided under Federal securities laws. Examples of forward - looking stat
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 – 53 % rent regulated • CRE/RBC ratios: MCB 412.2 % • CRE Owner - occupied is a segment of our C&I Lending platform Loan Portfolio at Dec ember 31, 2019 $2.67 Billion Deposits at December 31, 2019 $ 2 .79 Billion 27% 12
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 Q1. (dollars in thousands) 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 Summary Income Statement Net Interest Income $28,042 $26,053 $22,
Slide 6: Net Interest Margin Analysis
5 Net Interest Margin Analysis 3.77% 3.68% 3.47% 3.26% 3.35% 4.65% 4.83% 4.66% 4.47% 4.38% 1.90% 2.15% 2.22% 2.15% 1.77% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 4Q18 1Q19 2Q19 3Q19 4Q19 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 $615,000 and $400,000 related to additional leased space at the Company’s headquarters for the fourth and third qu arters of 2019, respectively. 12/31/19 9/30/19 6/30/19 3/31/19 12/31
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. (dollars in thousands) 9/30/19 12/31/18 Balance Sheet ($000's) Total Assets $114,40
Slide 9: Strong Balance Sheet Growth
8 Strong Balance Sheet Growth Deposits ($mm) Total Equity ($mm) Assets ($mm) Loans, Net of Deferred Fees ($mm) $2,183 $2,545 $2,961 $3,243 $3,357 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 $1,865 $2,102 $2,336 $2,497 $2,673 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 $1,661 $1,966 $2,376 $2,705 $2,791 2018Q4 2019Q1
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 (dollars in millions) ■ Total CRE ( 1) (Non Owner Occupied) ■ Total CRE (Owner Occupied) ■ C&I ■ Other $1,867 $2,105 $2,339 $2,501 $2,678 1,063 1,142 1,330 1,409 1,530 236 3
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 Dec ember 31, 2019 Target Market Key Metrics ▪ Middle market businesses with annual revenues below $200mm ▪ Primarily concentrated in the New York MSA ▪ Well - diversi
Slide 12: Relationship-based Commercial Real Estate Lending
11 Relationship - based Commercial Real Estate Lending Composition by Type at Dec ember 31, 2019 Composition by Region at Dec e mber 31, 2019 Overview Target Market Key Metrics ▪ New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million ▪ Primarily concentrated in
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 1.78 on stabilized rent regulated properties ▪ Average LTV of 46% on stabilized rent regulated properties provide a cushion against falling values (dollars in thous
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 in regards to the quality of Skilled Nursing Operators which we finance ▪ Borrowers typically have over 1,000 beds under management ▪ Loan
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% 17% 2% 7% 8% 4% 2% 2% 30% 2% 7% 2% 8% 1% 2% California Florida Georgia Indiana Maryland Massachusetts Missouri New Jersey New York Ohio Pennsylvania Rhode Island Tennessee Wisconsin Kansas State B
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 4% 2% 4% 51% 15% 24% Florida Georgia/Indiana/Wisconsin New Jersey New York Pennsylvania Tennessee State Balance ($000's) % of Total C&I SNF Florida 4,412 4% Georgia/Indiana/Wisconsin 1,749 2% New Jer
Slide 17: Credit Metrics
16 Credit Metrics 0.02% 0.07% 0.15% 0.19% 0.17% 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 ALLL/Loans Non - Performing Assets/ALLL NCOs/Average Loans (Annualized) Non - Performing Assets/Loans 1.02% 0.99% 0.97% 0.98% 0.98% 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 1.5% 7.2% 15.4% 19.3% 17.1% 2018Q4 2019Q1 2019Q2 2
Slide 18: Deposit Composition
17 Deposit Composition (1) Includes liquidation, receivership, litigation settlement and other fiduciary accounts. $1,661 $1,966 $2,376 $2,705 $2,791 633 707 675 758 805 81 262 425 527 580 150 210 285 355 375 281 283 310 328 392 271 244 225 221 207 220 210 205 139 104 23 50 251 377 328 2018Q4 2019Q1
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 September 30, 2019 Fixed vs. Floating Rate Loans at Dec ember 31, 2019 5.55%% 3.94% (7.77%) -100bps +100bps +200bps Floating 41% Fixed 59% Approximately 75.06% of floating rate lo
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
Metropolitan Mce Commerc Bank @ csre0 The Entrepreneurial eiiSnceisag NYSE Appendix
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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