Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q4 2021 Earnings Presentation
34 slides from Metropolitan Bank's earnings presentation, Jan 20, 2022
Slide 1: Q4 2021 Investor Presentation
4 Q 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 future financial condition and capital ratios, results of operation
Slide 3: A Diversified Financial Institution
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
Slide 4: Proven high growth business model
Proven high growth business model $821 $1,056 $1,421 $1,867 $3,137 $2,678 $3,732 2015 2 0 16 2 0 1 7 2 0 18 2 0 1 9 2 0 20 2 0 2 1 Loans $ millions $766 $994 $1,404 $1,661 $2,791 $3,830 $6,436 2 0 17 2 0 1 8 2019 2 0 2 0 2021 D e p os i t s $ millions $32 $43 $63 $83 $108 $ 1 4 2 $ 1 8 1 R eve n u e
Slide 5: Investors have been rewarded for our strong performance
2 9 . 9 % 2 0 . 2 % 8 . 3 % Revenue CAGR 1 2017 – 2021 Investors have been rewarded for our strong performance Tangible book value per share CAGR 1 2017 – 2021 Earnings per share CAGR 1 2017 – 2021 2 8 . 9 % 2 6 . 2 % 1 6 . 1 % High - growth banks² KRX Index³ High - growth banks² KRX Index³ Share pr
Slide 6: Delivering Financial Results
Delivering Financial Results ROATCE* at December 31, 2021 10.5% 10.8% 11.3% 12.9% 15.2% 2017 2018 2019 2020 2021 *Non - GAAP financial measure. See reconciliation to GAAP measure on page 20. Total Revenues at December 31, 2021 | $ thousands $60,013 $164,253 $2,568 $29,352 $2,926 $40,563 $4,640 $78,7
Slide 7: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification $3.74 billion Gross Loan Portfolio* at December 31, 2021 | $ millions A Diversified Portfolio at December 31, 2021 6 7 % 1 7 % 1 0 % 4% 2% 2% Other $ 1 , 7 3 2 $ 1 , 7 7 8 $ 1 , 8 6 9 $ 2 , 0 1 4 $ 2 , 1 2 2 2 , 1 40 $ 6 2 0 $ 6 5 5 $ 7 3 9 $679 $ 7 8 0 $ 8
Slide 8: Commercial Growth Driven by Expertise in Specific Lending Verticals
Commercial Growth Driven by Expertise in Specific Lending Verticals 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/o
Slide 9: Relationship-Based Commercial Real Estate Lending
Relationship - Based Commercial Real Estate Lending 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 63%
Slide 10: Well-Developed, Sector Diversified Healthcare Portfolio
Well - Developed, Sector Diversified Healthcare Portfolio • Active in Healthcare lending since 2002 • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 64% • Highly selective regarding the quality of Skilled Nursing Operators that we finance • Borrowers typically have over 1,000 beds under m
Slide 11: Geographically Diversified Skilled Nursing Facility Portfolio
Well - Developed, Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State at December 31, 2021 C&I Skilled Nursing Facility Exposure by State at December 31, 2021 51 % 11 % 11 % 9 % 8 % 6 % 4 % 8% Other States 6% Michigan 4% Florida 33 % 11 % 10 %
Slide 12: Deposit Composition
5 7 % 4 1 % Total deposits: $6.43bn 4Q Cost of total deposits: 0.25% Deposit Composition Deposit Composition Over Time at December 31, 2021 | $ millions $ 9 2 7 11 $ 1 , 0 4 0 $ 1 , 2 5 4 $ 1 , 2 7 1 $ 1 , 3 2 0 $ 1 , 5 0 1 $ 8 1 3 $ 7 5 8 $ 9 0 1 $ 9 4 0 $ 9 4 0 $ 9 3 4 $ 4 3 6 $ 5 9 8 $ 7 0 8 $ 9
Slide 13: Customer Centric Digital Payments Worldwide
Customer Centric Digital Payments Worldwide Global Payments Group About Global Payments • 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
Slide 14: Customer Centric Digital Payments Worldwide
22.64 21.70 38.60 42.30 54.54 31.79 Customer Centric Digital Payments Worldwide Global Payments Group Client Transactions at December 31, 2021 | Millions Customer $ Volume at December 31, 2021 | Billions Highlights • Over 90 million client transactions totaling $22.14 billion in 2021. 9 2 . 5 4 ■ 4
Slide 15: Diversified Revenue and Deposit Contribution
Diversified Revenue and Deposit Contribution Global Payments Group Total Revenue by Category* At December 31, 2021 | Thousands This represents revenue from new clients who went live in 2021 * Certain prior periods amounts have been reclassified for consistency with the current period presentation. $
Slide 16: Well Managed Net Interest Margin
Well Managed Net Interest Margin 1 Represents full - year NIM 2 Represents full - year average Net Interest Margin Analysis 1 . 1 0 % 1 . 9 1 % 2 . 2 8 % 0 . 5 4 % 0 . 2 5 % 3 . 5 2 % 3 . 7 0 % 3 . 4 6 % 3 . 2 6 % 2 . 7 7 % 2 0 19 MCB Net Interest Margin ("NIM") 1 Average Fed Funds Rate 2 2017 2018
Slide 17: Highly Profitable, Scalable Model
Highly Profitable, Scalable Model 1 7 . 7 % 1 4 . 1 % 9.8% 9.9% 1 2 . 8 % 2017 2 0 18 2 0 1 9 2 0 20 2 0 2 1 Non - Interest Income ratio 1^ 1 0 . 5 % 1 0 . 8 % 1 1 . 3 % 1 2 . 9 % 1 5 . 2 % 2017 2 0 1 8 2019 2 0 20 2021 ROATCE 1 52.1% 52.1% 5 5 . 4 % 52.5% 48.3% 2017 2018 2019 2020 2021 ^ This repre
Slide 18: Credit Metrics
Credit Metrics at December 31, 2021 NCOs/Average Loans Non - Performing Loans/Loans A L L L / L o a n s Non - Performing Loans/ALLL 0.32% - 0 . 0 6 % - 0.13% 0 . 0 1 % 0 . 1 3 % 2017 2 0 1 8 2 0 19 2 0 20 2021 1 . 0 5 % 1 . 0 2 % 0 . 9 8 % 1 . 1 3 % 0 . 9 3 % 2017 2 0 1 8 2 0 19 2 0 20 2021 0 . 2 4
Slide 19: Capital ratios
1 9 . 9 % 1 7 . 0 % 12.5% 12.7% 1 5 . 3 % 2 0 20 2 0 2 1 Capital ratios Common Equity Tier 1 Capital Ratio Tier 1 Leverage Ratio TCE / TA 1 1 5 . 3 % 1 3 . 2 % 1 0 . 1 % 1 0 . 1 % 1 4 . 4 % 2017 2018 2019 Total Risk - Based Capital Ratio 2 0 20 2 0 2 1 1 3 . 7 % 1 3 . 7 % 9 . 4 % 8 . 5 % 8 . 4 % 201
Slide 20: Appendix
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Slide 21: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non - GAAP Measures *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.
Slide 22: Core-funded loan and deposit growth since 1999
$ 2 3 8 $ 3 0 4 $ 3 6 0 $ 3 9 0 $ 4 9 0 $ 4 9 4 $ 4 3 9 $ 4 1 0 $ 4 1 2 $ 4 9 4 $ 6 2 7 $ 8 1 0 $ 1 , 8 46 $1,405 $1,043 $ 2 , 64 7 $ 3 , 1 01 $ 3 , 6 97 $11 $34 $56 $ 1 2 5 $ 1 7 2 1999 2000 2001 200 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Si
Slide 23: A Diversified Financial Institution: How We Succeed
A Diversified Financial Institution We are More than a Commercial Bank 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 24: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day Global Payments Group • 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, ever
Slide 25: Delivering Critical Financial Infrastructure, Every Day
Delivering Critical Financial Infrastructure, Every Day U.S. Treasury G o v e r n m e n t Payments Pension Companies Public and Private Pension Payments Law F i r m s Payouts for Legal Settlements Other Load Types MG, WU, GD, VRL, MCR Direct Deposits/ ACH Loads N e t w o r k Loads WU, MG GD C o r p
Slide 26: Client Case Study: Broxel
Client Case Study Global Payments Group “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 B r o x e l O v e r v i e w Broxel is a FinTech leader founded in 2011
Slide 27: Client Case Study: CIBanco
Client Case Study Global Payments Group C I B a n co O v e r v i e w 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
Slide 28: Client Case Study: Mesh Payments
Client Case Study Global Payments Group Mesh Payments O v e r v i e w 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
Slide 29: Client Case Study: Revolut
Client Case Study Global Payments Group R e v o l u t O v e r v i e w • 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
Slide 30: Client Case Study: Voyager Digital
Client Case Study Global Payments Group Voyager Digital, Ltd CSE: VYGR. CN O v e r v i e w 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 Compa
Slide 31: Partner with the Leading Processors and Payment Processing Networks
Partner with the Leading Processors and Payment Processing Networks, Every Day Global Payments Group Leading Processors Leading Payment Processing Networks 30
Slide 32: Who Are Our Payment Clients?
Who Are Our Payment Clients? Global Payments Group 31
Slide 33: Tending to Our Diverse Digital Payment Products Ecosystem
Tending to Our Diverse Digital Payment Products Ecosystem, Every Day 32 Global Payments Group Illustrative photography and captions, not actual customers. Accounts Payable/ Expense Management ACH Processing and Settlement Bill P ay me n t Card Present Debit Card Claim Handling and Processing Digital
Slide 34: Securing Our Place in a Diverse Digital Payment Industry
Securing Our Place in a Diverse Digital Payment Industry Complex, Every Day 33 Global Payments Group Illustrative photography and captions, not actual customers. A u t o C o n s u me r Lending Corporate Accounts Payable Management Co r p o r a t e Payroll C o rr e spo n d e n t Banking Criminal Just
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