Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q2 2024 Earnings Presentation
28 slides from Metropolitan Bank's earnings presentation, Jul 18, 2024
Slide 1: 2Q 2024 Investor Presentation
2Q 2024 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 operations an
Slide 3: Proven Growth-Oriented Business Model with Strong Risk Management
Proven Growth-Oriented Business Model with Strong Risk Management, Poised to Deliver Significant Shareholder Value 3. Safe & Sound • Strong liquidity and disciplined interest rate risk management • Strong capital position • Conservative credit culture • Diversified deposit base • Proven, deposit gat
Slide 4: Relationship Driven Commercial Bank with Strong Client Execution
Relationship Driven Commercial Bank with Strong Client Execution • Our Business Bankers have deep knowledge and expertise across multiple industries (e.g. law firms, resident healthcare, real estate property management, U.S. Trustee and Municipalities). • Full suite of retail financial service produ
Slide 5: Share price performance since IPO
15.8% 6.5% (4.1%) NYC Middle-Market Banks³ Source: Bloomberg, FactSet, S&P Global Market Intelligence 1 CAGR from December 31, 2017 through March 31, 2024 2 KRX Index represents the KBW Regional Banking Index 3 Includes BKU, CNOB, DCOM, FFIC, FLIC, NYCB, OCFC, and VLY 4 Performance since November 7,
Slide 6: Track Record of Strong Operating Performance
Track Record of Strong Operating Performance 1 Annualized. 2 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 26. 3 CAGR from December 31, 2017 through June 30, 2024. 4 MCB closing stock price on July 15, 2024, of $50.39. Strong Book Value Growth Since IPO Tangible Book Value
Slide 7: Well Managed Net Interest Margin
6 1 Represents effective average daily Fed Funds rate. Well Managed Net Interest Margin Net Interest Margin Analysis Estimated Sensitivity of Annual Net Interest Income June 30, 2024 Fixed vs. Floating Rate Loans June 30, 2024 1.00% 1.83% 2.16% 0.36% 0.08% 1.68% 5.03% 5.33% 3.52% 3.70% 3.46% 3.26% 2
Slide 8: Highly Liquid and Resilient Balance Sheet
32.0% 30.9% 30.5% 4Q 2023 1Q 2024 2Q 2024 $5.7 $6.2 $6.2 4Q 2023 1Q 2024 2Q 2024 11.5% 11.6% 11.7% 4Q 2023 1Q 2024 2Q 2024 Highly Liquid and Resilient Balance Sheet 76% Insured deposits Deposits ($ bn) CET1 Ratio1 Non-interest bearing Deposit % Deposit Profile at June 30, 2024 228% Uninsured Deposit
Slide 9: Core Banking Digital Transformation
Core Banking Digital Transformation Innovative 8 4 Investments in our Core Banking Platforms will provide an enhanced client experience and efficient and scalable operating systems for our employees Extensive digital proficiencies NextGen analytics capabilities API-based extensibility Optimized back
Slide 10: Loans and Deposits
Loans and Deposits Metropolitan McB Commerc donk GD) Bi usTED Entrepre NYSE
Slide 11: Loan Portfolio Growth and Diversification
10 1 Gross of deferred fees and unamortized costs. 2 Certain prior period amounts adjusted to conform to current presentation. 3 Excludes owner-occupied. 4 Mobile Home Parks, Residential Condos/Co-ops, Temporary Shelters, Religious Orgs., Parking Lots and Garages, Restaurants and Entertainment Facil
Slide 12: Relationship-Based Commercial Real Estate Lending
18% 15% 13% 9% 8% 8% 5% 4% 20% 18% Manhattan 15% Florida 13% Brooklyn 9% Bronx 8% Queens 8% New Jersey 5% Long Island 4% Other NY 20% Other States 35% 10% 8% 9% 7% 6% 6% 4% 15% 35% Skilled Nursing Facilities 10% Multifamily 8% Office 9% Mixed Use 7% Hospitality 6% Retail 6% Land 4% Warehouse 15% Oth
Slide 13: Conservatively Underwritten Multi-family Portfolio
12 Conservatively Underwritten Multi-family Portfolio Overview June 30, 2024 | $ millions Stabilized1 Maturity Schedule June 30, 2024 | $ millions Origination Vintage June 30, 2024 • Total Multi-family loans: $440mm • Weighted average LTV of 53% • Recourse on 53% of Total; recourse on 99% of Transit
Slide 14: Conservatively Underwritten, Geographically Diversified CRE Office Portfolio
Conservatively Underwritten, Geographically Diversified CRE Office Portfolio 13 Office by Region June 30, 2024 36% 6% 14% 31% 10% 36% Manhattan 14% Brooklyn 6% Queens 2% Bronx 31% NY Metro Area (outside NYC) 10% Non NY Metro Area Overview June 30, 2024 • Total Office loans: $377mm • Weighted average
Slide 15: Commercial & Industrial: Growth Driven by Expertise in Specific Lending Verticals
$234 $233 $241 $260 $265 $266 $138 $169 $181 $206 $236 $258 $150 $131 $138 $137 $125 $117 $113 $121 $118 $128 $126 $127 $66 $74 $72 $77 $75 $71 $55 $58 $61 $56 $56 $58 $52 $51 $47 $45 $42 $41 $124 $126 $119 $142 $132 $163 $936 $955 $977 $1,051 $1,057 $1,105 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q
Slide 16: Diversified CRE and C&I Healthcare Portfolio
C&I Healthcare Composition | June 30, 2024 Diversified CRE and C&I Healthcare Portfolio • Active in Healthcare lending since 2002. • No realized losses since 2002. No deferrals during the pandemic. • CRE – Skilled Nursing Facilities (“SNF”) – average LTV of 70%. • Highly selective regarding the qual
Slide 17: Geographically Diversified Skilled Nursing Facility Portfolio
C&I Skilled Nursing Facility Exposure by State June 30, 2024 Geographically Diversified Skilled Nursing Facility Portfolio CRE Skilled Nursing Facility Exposure by State June 30, 2024 33% 24% 11% 8% 24% 33% Florida 24% New York 11% New Jersey 8% Indiana 24% Other States 21% 38% 18% 23% 21% New York
Slide 18: Deposit Verticals Composition Over Time
$1,596 $1,684 $1,667 $1,803 $1,810 $1,125 $1,129 $1,181 $1,135 $1,055 $839 $882 $890 $989 $1,059 $502 $515 $655 $757 $758 $731 $785 $781 $940 $892 $332 $338 $325 $298 $298 $163 $189 $238 $316 $298 $5,288 $5,522 $5,737 $6,238 $6,170 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 EB-5, Title & Escrow, & Char
Slide 19: Core Banking Digital Transformation
Core Banking Digital Transformation 18
Slide 20: Core Banking Digital Transformation
2024 2025 Service Description Partners Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Payments Hub (Wires) Payments Hub (ACH) Payments Hub (FedNow) Commercial Loans Servicing Enterprise Datawarehouse Digital Banking (Consumers) Digital Banking (Commercial) Fraud Risk Management Core Processing Contact Center / Core servic
Slide 21: Partners and Service Areas
Partners Service Areas About Finzly provides a modern, cloud-based, API-enabled operating system that serves as a parallel payment processing platform to a bank's core. Finzly offers a wide range of turnkey banking solutions, including a multi-rail payment for traditional payments on ACH and wires,
Slide 22: Selected Financial Information
Selected Financial Information 21
Slide 23: Proven High Growth Business Model
Proven High Growth Business Model Loans1 | $ millions $1,404 $1,661 $2,791 $3,830 $6,436 $5,278 $5,737 $6,170 2017 2018 2019 2020 2021 2022 2023 2Q 2024 Deposits | $ millions $63 $83 $108 $142 $181 $256 $251 $134 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Revenue | $ millions $12 $26 $30 $39 $60 $5
Slide 24: Highly Profitable, Scalable Model
Return on Average Assets Highly Profitable, Scalable Model * Annualized 1 Non-GAAP financial measures. See reconciliation on slide 26. 2 Total non-interest expense divided by Total revenues. 3 Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022. 4 Includ
Slide 25: Credit Metrics
0.24% 0.02% 0.17% 0.20% 0.28% 0.00% 0.92% 0.53% 2017 2018 2019 2020 2021 2022 2023 2Q 2024 Non-Performing Loans/Loans Credit Metrics NCOs/Average Loans ACL/Loans Non-Performing Loans/ACL 0.32% -0.06% -0.13% 0.01% 0.13% 0.00% 0.02% 0.00% 2017 2018 2019 2020 2021 2022 2023 YTD 2024¹ 1.05% 1.02% 0.98%
Slide 26: Capital Ratios
Capital Ratios* Common Equity Tier 1 Capital Ratio 15.3% 13.2% 10.1% 10.1% 14.1% 12.1% 11.5% 11.7% 2017 2018 2019 2020 2021 2022¹ 2023² 2Q 2024 Minimum to be "Well Capitalized" * These capital ratios are for Metropolitan Bank Holding Corp. 1 Includes a $35.0 million charge for a regulatory settlemen
Slide 27: 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 presentation includes certain non-GAAP financial measures.
Slide 28: Reconciliation of GAAP to Non-GAAP Measures, continued
Reconciliation of GAAP to Non-GAAP Measures, continued (1) Annualized. 27 (dollars in thousands, except per share data) Net income (loss) $ 16,799 $ 16,203 $ 33,002 Regulatory remediation 3,647 2,305 5,952 GPG wind down 129 819 948 Digital transformation 1,695 1,805 3,500 Impact of adjustments 5,471
Metropolitan Bank Holding — Q2 2024 Earnings Presentation on 6ix