Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q2 2021 Earnings Presentation
36 slides from Metropolitan Bank's earnings presentation, Jul 21, 2021
Slide 1: 2Q 2021 Investor Presentation
2Q 2021 Investor Presentation
Slide 2: Exceptional match-funded loan growth since founding
$11 $34 $56 $125 $172 $238 $304 $360 $390 $490 $494 $439 $410 $412 $494 $627 $810 $1,043 $1,405 $1,846 $2,647 $3,101 $3,412 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q2 Since our founding, we have delivered exceptional match-fun
Slide 3: Strong profitability gains for shareholders
$19.75 $20.76 $27.04 $30.34 $34.15 $39.25 $41.75 2015 2016 2017 2018 2019 2020 2021Q2 $1.54 $0.43 $2.34 $3.06 $3.56 $4.66 $6.20 2015 2016 2017 2018 2019 2020 2021Q2* * QTD Annualized 1 CAGR from December 31, 2015 through June 30, 2021 2 Tangible Book Value Per Share December 31, 2015 – June 30, 2021
Slide 4: How We Succeed
How We Succeed 35.9% 22.5% 8.7% High-growth banks KRX Index 3 Revenue CAGR1 2015–2021Q2 Investors have been rewarded for our sustained growth despite a discounted P/E multiple Earnings per share CAGR1 2015–2021Q2 Tangible book value per share CAGR1 2015–2021Q2 28.8% 25.6% 14.4% High-growth banks KRX
Slide 5: Delivering Financial Results
Delivering Financial Results 4 ROATCE* at December 31, except 2021, which is at June 30,1 10.46% 10.84% 11.27% 12.32% 15.65% 2017 2018 2019 2020 2Q 2021 *Non-GAAP financial measure. See reconciliation to GAAP measure on page 22. 1 Annualized Total Revenues at December 31, except 2021, which is at Ju
Slide 6: A Diversified Financial Institution
A Diversified Financial Institution Our Unique Product Offerings and Solutions 5 Personal Banking • Broad range of hallmark personal checking and savings accounts • A full suite of electronic banking services that allow clients to easily manage their everyday financing needs Business Banking • Check
Slide 7: Well Managed Net Interest Margin
3.52% 3.70% 3.46% 3.26% 2.68% 1.10% 1.91% 2.28% 0.54% 0.25% 2017 2018 2019 2020 2Q 2021 Well Managed Net Interest Margin 6 Net Interest Margin Analysis at June 30, 2021 MCB Net Interest Margin ("NIM") 1 Average Fed Funds Rate 2 1 Represents full-year NIM, except 2021, which represents annualized NIM
Slide 8: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification 7 1 Includes commercial real estate, multifamily and construction loans. 2 Includes consumer and 1-4 family loans $3.45 billion Loan Portfolio at June 30, 2021 | $ millions A Diversified Portfolio at June 30, 2021 • Multifamily loans – 40.5% rent regulated •
Slide 9: Commercial Growth Driven by Expertise in Specific Lending Verticals
Commercial Growth Driven by Expertise in Specific Lending Verticals 8 General Commercial and Industrial Overview C&I Composition at June 30, 2021 Target Market • Middle market businesses with annual revenues below $200 million • Primarily concentrated in the New York MSA • Well-diversified across in
Slide 10: Relationship-Based Commercial Real Estate Lending
Relationship-Based Commercial Real Estate Lending 9 Target Market • New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million • Primarily concentrated in the New York MSA • Well-diversified across various property types Key Metrics • Weighted average LTV of 63.38%
Slide 11: Well-Developed, Sector Diversified Healthcare Portfolio
Well-Developed, Sector Diversified Healthcare Portfolio 10 • Active in Healthcare lending since 2002 • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 74% • Highly selective regarding the quality of Skilled Nursing Operators that we finance • Borrowers typically have over 1,000 beds under
Slide 12: Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio 11 CRE Skilled Nursing Facility Exposure by State C&I Skilled Nursing Facility Exposure by State 58% 13% 12% 8% 3%3%3% 58% New York 13% Pennsylvania 12% District of Columbia 8% New Jersey 3% Virginia 3% Georgia, Indiana, W
Slide 13: Credit Metrics
Credit Metrics at June 30, 2021 12 NCOs/Average Loans (Annualized) Non-Performing Loans/Loans ALLL/Loans Non-Performing Loans/ALLL 0.32% -0.06% -0.13% 0.00% 0.00% 2017 2018 2019 2020 2Q 2021 1.05% 1.02% 0.98% 1.13% 1.08% 2017 2018 2019 2020 2Q 2021 0.24% 0.02% 0.17% 0.20% 0.16% 2017 2018 2019 2020 2
Slide 14: Deposit Composition
Deposit Composition 13 1 Includes liquidation, receivership, litigation settlement and other fiduciary accounts. 2 Includes cost of surety bonds required for certain deposits. Deposit Composition Over Time at June 30, 2021 | $ millions Corporate cash management deposits: • Have an expected retention
Slide 15: Well Positioned for Changing Rate Environment
Well Positioned for Changing Rate Environment How We Succeed 14 Estimated Sensitivity of Projected Annualized Net Interest Income1 as of March 31, 2021 Fixed vs. Floating Rate Loans at June 30, 2021 1 Given the recent decreases in market interest rates, the Bank did not model a 200-basis point decre
Slide 16: Singular Focus: Digital Payments Worldwide, Every Day
Global Payments Group 15 Singular Focus Digital Payments Worldwide, Every Day
Slide 17: Strong Growth in Revenue
Strong Growth in Revenue Global Payments Group 16 Non-Interest Income at December 31, except 2021, which is at June 30, | $ thousands $3,369 $4,640 $5,643 $8,464 $6,894 2017 2018 2019 2020 2Q 2021 Global Payments Group Revenue (% of Total Bank Non-30% 38% 53% 50% 64% Interest Income ) In addition to
Slide 18: Customer Centric Digital Payments Worldwide
Customer Centric Digital Payments Worldwide Global Payments Group 17 Client Transactions at June 30, 2021 | Millions Customer $ Volume at June 30, 2021 | Billions $3.96 $3.85 $7.09 $21.83 2018 2019 2020 2021* 38.60 42.30 54.54 90.55 2018 2019 2020 2021* * Annualized Highlights • 180 clients with off
Slide 19: Diversified Revenue Contribution
Diversified Revenue Contribution Global Payments Group 18 Total Revenue by Category For the three months ended March 31, 2021 | Unaudited 35% 25% 13% 9% 7% 6% 5% 35% Crypto General Purpose Reloadable (“GPR”) Cards 25% GPR Cards 13% Other 9% Crypto Exchange/OTC 7% Digital Bank Account 6% Corporate Di
Slide 20: Diversified Deposit Contribution
Diversified Deposit Contribution Global Payments Group 19 Total Average Deposits by Category at June 30, 2021 | Unaudited 33% 16% 13% 13% 11% 8% 6% 33% Crypto Exchange/ OTC 16% GPR Cards 13% Digital Bank Account 13% Crypto GPR 11% Other 8% Corporate Disbursements 6% Disbursements 27% Crypto Exchange
Slide 21: Contributions to Deposits
Contributions to Deposits Global Payments Group 20 Total Average Deposits at June 30, 2021 | $ millions $391.4 $616.1 $410.3 $359.8 $639.9 $79.2 $530.1 2017 2018 2019 2020 2Q 2021 Crypto Deposits $439.0 $1,170 Growth in average deposits in the second quarter of 2021 driven by increases across all GP
Slide 22: Appendix
Appendix Conmetropalitan (Es) | set NYSE
Slide 23: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 22 *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 release includes certain non-GAAP financial measures. Man
Slide 24: A Diversified Financial Institution: More than a Commercial Bank
A Diversified Financial Institution We are More than a Commercial Bank 23 How We Succeed 21-Years of Reliable Asset Quality and Financial Performance • Organic business loan origination platform • Core funded organic deposit franchise • Helping our clients build and sustain generational wealth since
Slide 25: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day Global Payments Group 24 • Domestic and international digital payments settlements, every day • Gateway to payment networks – Wire, ACH, Visa, Mastercard, Remittance, every day • Custodian of deposits on behalf of clients and their customers, e
Slide 26: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day 25 U.S. Treasury Government Payments Pension Companies Public and Private Pension Payments Law Firms Payouts for Legal Settlements Other Load Types MG, WU, GD, VRL, MCR Direct Deposits/ ACH Loads Network Loads WU, MG GD Corporate Prefund Adjust
Slide 27: Client Case Study: Broxel
Client Case Study Global Payments Group 26 “The B2B and B2C infrastructure Broxel has built in Mexico combined with MCB’s total support infrastructure in the United States is the blueprint for our mutual success.” Gustavo Gutierrez Broxel Overview Broxel is a FinTech leader founded in 2011 and based
Slide 28: Client Case Study: CIBanco
Client Case Study Global Payments Group 27 CIBanco Overview Consultoría Internacional (CI) was established in 1983 and became known as CIBanco in 2008. CIBanco became a signatory of the Equator Principles from the World Bank in 2012 in response to the environmental challenges that the world is facin
Slide 29: Client Case Study: Mesh Payments
Client Case Study Global Payments Group 28 Mesh Payments Overview Corporate HQ New York, NY, International office Tel Aviv, Israel; 20+ employees, privately held company founded in 2018 with VC backers and a recent round of favorable financing; strong growth in the virtual card space, which is a fra
Slide 30: Client Case Study: Revolut
Client Case Study Global Payments Group 29 Revolut Overview • A global fintech financial services company • Corporate HQ London, England • International offices including Asia, Europe and Oceania • North American offices, San Francisco, CA and New York, NY • 2,000+ employees revolut.com/en-US Leader
Slide 31: Client Case Study: Voyager Digital
Client Case Study Global Payments Group 30 Voyager Digital, Ltd CSE: VYGR. CN Overview Voyager: The Fastest-Growing Digital Asset Broker Voyager’s team of established Wall Street and Silicon Valley entrepreneurs is eliminating the roadblocks that currently exist in digital trading. The Company’s goa
Slide 32: Partner with the Leading Processors and Payment Processing Networks
Partner with the Leading Processors and Payment Processing Networks, Every Day Global Payments Group 31 Leading Processors Leading Payment Processing Networks
Slide 33: Who Are Our Payment Clients?
Who Are Our Payment Clients? 32 Global Payments Group
Slide 34: Our Diverse Digital Payment Products Ecosystem
Tending to Our Diverse Digital Payment Products Ecosystem, Every Day Global Payments Group 33 Illustrative photography and captions, not actual customers. Accounts Payable/ Expense Management ACH Processing and Settlement Bill Payment Card Present Debit Card Claim Handling and Processing Digital Ass
Slide 35: Securing Our Place in a Diverse Digital Payment Industry
Securing Our Place in a Diverse Digital Payment Industry Complex, Every Day Global Payments Group 34 Illustrative photography and captions, not actual customers. Auto Consumer Lending Corporate Accounts Payable Management Corporate Payroll Correspondent Banking Criminal Justice and Corrections Crypt
Slide 36: Disclosure
Disclosure 35 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 of operations and the
Metropolitan Bank Holding — Q2 2021 Earnings Presentation on 6ix