Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q4 2022 Earnings Presentation
33 slides from Metropolitan Bank's earnings presentation, Jan 20, 2023
Slide 1: 4Q 2022 Investor Presentation
4 Q 2022 Investor Presentation
Slide 2: Disclosure
Disclosure 1 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 Companys future financial condition and capital ratios, results of operations and t
Slide 3: A Diversified Financial Institution
2 A Diversified Financial Institution We are More than a Commercial Bank 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 Commercial Lending Relationship-base
Slide 4: Proven high growth business model
Proven high growth business model 3 Loans $ millions $1,404 $1,661 $2,791 $3,830 $6,436 $5,278 2017 2018 2019 2020 2021 2022 Deposits $ millions $63 $83 $108 $142 $181 $256 2017 2018 2019 2020 2021 2022 Revenue $ millions $12 $26 $30 $39 $60 $59 2017 2018 2019 2020 2021 2022 Adjusted Net Income Net
Slide 5: Investors have been rewarded for our strong performance
36.4% 19.5% 10.7% Metropolitan Commercial Bank High-growth banks KRX Index Revenue CAGR 1 20172022Q3 Investors have been rewarded for our strong performance Tangible book value per share CAGR 1 20172022Q3 Earnings per share CAGR 1 20172022Q3 32.5% 22.4% 14.4% Metropolitan Commercial Bank High-growth
Slide 6: Delivering Financial Results
Delivering Financial Results 5 Annual Financial Highlights Year-Over-Year Revenues increased 41.5%. Net interest income of $229.2 million, an increase of 46.0%. Net interest margin of 3.49%, an increase of 72 basis points. Net income of $59.4 million, inclusive of a $35.0 million charge for a regula
Slide 7: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification 6 1 Gross of deferred fees and unamortized costs. 2 Certain prior period amounts adjusted to conform to current presentation. * Includes consumer and 1-4 family loans. ** Includes commercial real estate, multifamily and construction loans. $4.85 billion Gros
Slide 8: Commercial Growth Driven by Expertise in Specific Lending Verticals
Commercial Growth Driven by Expertise in Specific Lending Verticals 7 Commercial and Industrial Overview Target Market Middle market businesses with annual revenues below $200 million Well-diversified across industries Key Metrics Strong historical credit performance - Pledged collateral and/or pers
Slide 9: Relationship-Based Commercial Real Estate Lending
Relationship-Based Commercial Real Estate Lending 8 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 various property types Key Metrics Weighted average LTV of 61% Multifami
Slide 10: Well-Developed, Sector Diversified Healthcare Portfolio
Well-Developed, Sector Diversified Healthcare Portfolio 9 Active in Healthcare lending since 2002 Highly selective regarding the quality of Skilled Nursing Operators that we finance Borrowers typically have over 1,000 beds under management Loans are made primarily in certificate of need states which
Slide 11: Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio 10 CRE Skilled Nursing Facility Exposure by State at December 31, 2022 C&I Skilled Nursing Facility Exposure by State at December 31, 2022 33% 25% 10% 7% 6% 4% 4% 2% 3% 3% 33% New York 25% Florida 10% New Jersey 7% Virgini
Slide 12: Deposit Composition
$1,320 $1,501 $1,492 $1,529 $1,654 $1,832 $940 $934 $930 $882 $714 $425 $1,044 $1,121 $1,129 $1,041 $941 $840 $796 $736 $734 $868 $894 $869 $447 $495 $481 $545 $707 $747 $132 $128 $69 $65 $60 $70 $4,679 $4,915 $4,835 $4,930 $4,970 $4,784 3Q 20214Q 20211Q 20222Q 20223Q 20224Q 2022 Specialty Deposits*
Slide 13: Customer Centric Digital Payments Worldwide
Customer Centric Digital Payments Worldwide Global Payments Group 12 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 extensi
Slide 14: Fintech BaaS
13.00 13.24 13.70 15.93 13.26 17.65 38.60 42.30 51.08 13.35 16.98 2018 2019 2020 2021 2022 4Q 3Q 2Q 1Q Customer Centric Digital Payments Worldwide Global Payments Group Fintech BaaS 13 Fintech BaaS 1 Client Transactions | Millions 53.31 63.80 1 Does not include digital currency businesses. 2 Certain
Slide 15: Well Managed Net Interest Margin
14 Well Managed Net Interest Margin 1 Represents full-year NIM. 2 Represents effective average daily FRB funds rate . Net Interest Margin Analysis 1.00% 1.83% 2.16% 0.36% 0.08% 1.68% 3.52% 3.70% 3.46% 3.26% 2.77% 3.49% 2017 2018 2019 2020 2021 2022 MCB Net Interest Margin ("NIM") 1 Average Fed Funds
Slide 16: Highly Profitable, Scalable Model
Highly Profitable, Scalable Model 15 ^ This represents the percentage of total non-interest income (less any gains on sale of securities) as compared to total revenue. * Annualized 1 Non-GAAP financial measure. See reconciliation to GAAP measure beginning on page 19. 17.8% 14.7% 9.8% 9.7% 12.8% 10.4
Slide 17: Credit Metrics
Credit Metrics 16 NCOs/Average Loans Non-Performing Loans/Loans ALLL/Loans Non-Performing Loans/ALLL 0.32% -0.06% -0.13% 0.01% 0.13% 0.00% 2017 2018 2019 2020 2021 2022 1.05% 1.02% 0.98% 1.13% 0.93% 0.93% 2017 2018 2019 2020 2021 2022 0.24% 0.02% 0.17% 0.20% 0.28% 0.00% 2017 2018 2019 2020 2021 2022
Slide 18: Capital ratios
Capital ratios* 17 Common Equity Tier 1 Capital Ratio 18.4% 15.6% 11.8% 11.6% 14.4% 12.3% 2017 2018 2019 2020 2021 2022 * These capital ratios are for Metropolitan Commercial Bank Only 1 Non-GAAP financial measure. See reconciliation to GAAP measure beginning on page 19. Tier 1 Leverage Ratio 14.7%
Slide 19: Appendix
Appendix commerce gana | “2 NYSE 18
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 19 *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. Mana
Slide 21: Reconciliation of GAAP to Non-GAAP Measures, continued
Reconciliation of GAAP to Non-GAAP Measures, continued 20 (1) Impact of adjustments exclude the effect of costs related to the regulatory settlement reserve in the fourth quarter of 2022. (2) For periods less than a year, ratios are annualized. ($ in thousands, except per share data) Net income (los
Slide 22: Since our founding, we have delivered exceptional core-funded loan growth
$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 $3,697 $4,796 199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022 Since our founding, we have delivered exceptional core-funded loan growt
Slide 23: A Diversified Financial Institution
A Diversified Financial Institution We are More than a Commercial Bank 22 How We Succeed 23-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 1999
Slide 24: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day Global Payments Group 23 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, every day
Slide 25: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day 24 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 26: Client Case Study: Broxel
Client Case Study Global Payments Group 25 The B2B and B2C infrastructure Broxel has built in Mexico combined with MCBs 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 in
Slide 27: Client Case Study: CIBanco
Client Case Study Global Payments Group 26 CIBanco Overview Consultora 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 facing
Slide 28: Client Case Study: Mesh Payments
Client Case Study Global Payments Group 27 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 29: Client Case Study: Revolut
Client Case Study Global Payments Group 28 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 Leadership Revol
Slide 30: Partner with the Leading Processors and Payment Processing Networks
Partner with the Leading Processors and Payment Processing Networks, Every Day Global Payments Group 29 Leading Processors Leading Payment Processing Networks
Slide 31: Who Are Our Payment Clients?
Who Are Our Payment Clients? 30 Global Payments Group
Slide 32: Engaging in Our Diverse Digital Payment Products Ecosystem
Engaging in Our Diverse Digital Payment Products Ecosystem, Every Day Global Payments Group 31 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 E-Wallet D
Slide 33: Establishing Our Place in a Diverse Digital Payment Industry
Establishing Our Place in a Diverse Digital Payment Industry Complex, Every Day Global Payments Group 32 Illustrative photography and captions, not actual customers. Auto Consumer Lending Corporate Accounts Payable Management Corporate Payroll Correspondent Banking Criminal Justice and Corrections F
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