Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q3 2021 Earnings Presentation
36 slides from Metropolitan Bank's earnings presentation, Oct 21, 2021
Slide 1: 3Q 2021 Investor Presentation
3Q 2021 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 Company's financial condition and capital ratios, results of operations and the C
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 * Annualized 1 CAGR from December 31, 2015 through September 30, 2021 $821 $1,056 $1,421 $1,867 $2,678 $3,142 $3,603 2015 2016 2017 2018 2019 2020 3Q 2021 Loans $ millions $766 $994 $1,404 $1,661 $2,791 $3,830 $5,458 2015 2016 2017 2018 2019 2020 3Q 2021 Deposits
Slide 5: Investors have been rewarded for our strong performance
34.0% 19.9% 6.6% High-growth banks KRX Index 4 Revenue CAGR1 20172021Q3 Investors have been rewarded for our strong performance Tangible book value per share CAGR1 20172021Q3 Earnings per share CAGR1 20172021Q3 30.3% 31.0% 18.1% High-growth banks KRX Index Share price performance since IPO4 versus K
Slide 6: Delivering Financial Results
Delivering Financial Results 5 ROATCE* at December 31, except 2021, which is at September 30,1 10.46% 10.84% 11.27% 12.32% 16.95% 2017 2018 2019 2020 3Q 2021 *Non-GAAP financial measure. See reconciliation to GAAP measure on page 21. 1 Annualized Total Revenues at December 31, except 2021, which is
Slide 7: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification 6 1 Includes commercial real estate, multifamily and construction loans. 2 Includes consumer and 1-4 family loans $3.61 billion Loan Portfolio at September 30, 2021 | $ millions A Diversified Portfolio at September 30, 2021 66% 17% 10% 4% 3% 66% CRE 17% CI 1
Slide 8: Commercial Growth Driven by Expertise in Specific Lending Verticals
Commercial Growth Driven by Expertise in Specific Lending Verticals 7 General Commercial and Industrial Overview Target Market bull; Middle market businesses with annual revenues below $200 million bull; Well-diversified across industries Key Metrics bull; Strong historical credit performance - Pled
Slide 9: Relationship-Based Commercial Real Estate Lending
Relationship-Based Commercial Real Estate Lending 8 Target Market bull; New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million bull; Primarily concentrated in the New York MSA bull; Well-diversified across various property types Key Metrics bull; Weighted avera
Slide 10: Well-Developed, Sector Diversified Healthcare Portfolio
Well-Developed, Sector Diversified Healthcare Portfolio 9 bull; Active in Healthcare lending since 2002 bull; CRE Skilled Nursing Facilities ("SNF") Average LTV of 70% bull; Highly selective regarding the quality of Skilled Nursing Operators that we finance bull; Borrowers typically have over 1,000
Slide 11: Geographically Diversified Skilled Nursing Facility Portfolio
Well-Developed, Geographically Diversified Skilled Nursing Facility Portfolio 10 CRE Skilled Nursing Facility Exposure by State CI Skilled Nursing Facility Exposure by State 56% 13% 12% 9% 4% 3%3% 56% New York 13% Pennsylvania 12% District of Columbia 9% New Jersey 4% Florida 3% Georgia, Indiana, Ke
Slide 12: Deposit Composition
Deposit Composition 11 1 Includes liquidation, receivership, litigation settlement and other fiduciary accounts. Deposit Composition Over Time at September 30, 2021 | $ millions $983 $927 $1,040 $1,254 $1,271 $1,320 $856 $813 $758 $901 $940 $940 $396 $436 $598 $708 $920 $1,044 $515 $601 $659 $651 $6
Slide 13: Customer Centric Digital Payments Worldwide
Customer Centric Digital Payments Worldwide Global Payments Group 12 * Annualized 1 CAGR from December 31, 2017 through September 30, 2021 bull; Domestic and international digital payments settlements bull; Gateway to payment networks Wire, ACH, Visa, Mastercard, Remittance bull; Custodian of deposi
Slide 14: Customer Centric Digital Payments Worldwide
Customer Centric Digital Payments Worldwide Global Payments Group 13 Client Transactions at September 30, 2021 | Millions Customer $ Volume at September 30, 2021 | Billions $3.96 $3.85 $7.09 $18.65 2018 2019 2020 2021* 38.60 42.30 54.54 86.80 2018 2019 2020 2021* Highlights bull; 180 clients with of
Slide 15: Diversified Revenue Contribution
Diversified Revenue Contribution Global Payments Group 14 Total Revenue by Category For the three months ended June 30, 2021 | Unaudited 39% 23% 12% 6% 9% 6% 5% 39% Crypto General Purpose Reloadable ("GPR") Cards 23% GPR Cards 12% Other 6% Crypto Exchange/OTC 9% Digital Bank Account 6% Corporate Dis
Slide 16: Diversified Deposit Contribution
Diversified Deposit Contribution Global Payments Group 15 Total Average Deposits by Category at September 30, 2021 | Unaudited 33% 12% 10% 12% 21% 7% 5% 33% Crypto Exchange/ OTC 12% GPR Cards 10% Digital Bank Account 12% Crypto GPR 21% Other 7% Corporate Disbursements 5% Disbursements 27% Crypto Exc
Slide 17: Well Managed Net Interest Margin
16 Well Managed Net Interest Margin 1 Represents full-year NIM, except 2021, which represents annualized NIM for the three months ended September 30, 2021 2 Represents full-year average, except 2021, which represents September 2021 YTD average Net Interest Margin Analysis 1.10% 1.91% 2.28% 0.54% 0.2
Slide 18: Highly profitable, scalable model
Highly profitable, scalable model 17 bull; Annualized ^ This represents the percentage of total non-interest income (less any gains on sale of securities) as compared to total income. 1 These are non-GAAP financial measures. See reconciliation on slide 21 17.7% 14.1% 9.8% 9.9% 13.0% 2017 2018 2019 2
Slide 19: Credit Metrics at September 30, 2021
Credit Metrics at September 30, 2021 18 NCOs/Average Loans (Annualized) Non-Performing Loans/Loans ALLL/Loans Non-Performing Loans/ALLL 0.32% -0.06% -0.13% 0.00% -0.03% 2017 2018 2019 2020 3Q 2021 1.05% 1.02% 0.98% 1.13% 1.06% 2017 2018 2019 2020 3Q 2021 0.24% 0.02% 0.17% 0.20% 0.43% 2017 2018 2019
Slide 20: Capital ratios
19.9% 17.0% 12.5% 12.7% 16.5% 2017 2018 2019 2020 3Q 2021 Capital ratios 19 Common Equity Tier 1 Capital Ratio Tier 1 Leverage Ratio Total Risk-Based Capital Ratio TCE / TA1 15.3% 13.2% 10.1% 10.1% 14.1% 2017 2018 2019 2020 3Q 2021 13.7% 13.7% 9.4% 8.5% 9.4% 2017 2018 2019 2020 3Q 2021 12.7% 11.5% 8
Slide 21: Appendix
Appendix comMetropaitan GA) | nce NYSE 20
Slide 22: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 21 *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 23: Since our founding, we have delivered exceptional match-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 $3,565 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q3 Since our founding, we have delivered exceptional match-fun
Slide 24: A Diversified Financial Institution
A Diversified Financial Institution We are More than a Commercial Bank 23 How We Succeed 21-Years of Reliable Asset Quality and Financial Performance bull; Organic business loan origination platform bull; Core funded organic deposit franchise bull; Helping our clients build and sustain generational
Slide 25: Contributions to Deposits
Contributions to Deposits Global Payments Group 24 Total Average Deposits at September 30, 2021 | $ millions $391.4 $616.1 $410.3 $359.8 $709.3 $79.2 $571.5 2017 2018 2019 2020 3Q 2021 Crypto Deposits $439.0 $1,280.8 Growth in average deposits in the second quarter of 2021 driven by increases across
Slide 26: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day Global Payments Group 25 bull; Domestic and international digital payments settlements, every day bull; Gateway to payment networks Wire, ACH, Visa, Mastercard, Remittance, every day bull; Custodian of deposits on behalf of clients and their cu
Slide 27: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day 26 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 28: Client Case Study: Broxel
Client Case Study Global Payments Group 27 "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 29: Client Case Study: CIBanco
Client Case Study Global Payments Group 28 CIBanco Overview Consultoria 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 30: Client Case Study: Mesh Payments
Client Case Study Global Payments Group 29 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 31: Client Case Study: Revolut
Client Case Study Global Payments Group 30 Revolut Overview bull; A global fintech financial services company bull; Corporate HQ London, England bull; International offices including Asia, Europe and Oceania bull; North American offices, San Francisco, CA and New York, NY bull; 2,000+ employees revo
Slide 32: Client Case Study: Voyager Digital
Client Case Study Global Payments Group 31 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 33: Partner with the Leading Processors and Payment Processing Networks
Partner with the Leading Processors and Payment Processing Networks, Every Day Global Payments Group 32 Leading Processors Leading Payment Processing Networks
Slide 34: Who Are Our Payment Clients?
Who Are Our Payment Clients? 33 Global Payments Group
Slide 35: Tending to Our Diverse Digital Payment Products Ecosystem
Tending to Our Diverse Digital Payment Products Ecosystem, Every Day Global Payments Group 34 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 36: Securing Our Place in a Diverse Digital Payment Industry
Securing Our Place in a Diverse Digital Payment Industry Complex, Every Day Global Payments Group 35 Illustrative photography and captions, not actual customers. Auto Consumer Lending Corporate Accounts Payable Management Corporate Payroll Correspondent Banking Criminal Justice and Corrections Crypt
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