Metropolitan Bank Holding Corp. · NYSE:MCB
Metropolitan Bank — Q2 2019 Earnings Presentation
22 slides from Metropolitan Bank's earnings presentation, Jul 25, 2019
Slide 1: Investor Presentation 2019 Q2
Investor Presentation 2019 Q2
Slide 2: Forward-looking Statement
1 Forward - looking Statement This presentation contains certain “forward - looking statements” about the Company which, to the extent applicable, are intended to be covered by the safe harbor for forward - looking statements provided under Federal securities laws and, regardless of such coverage, y
Slide 3: Company Overview
2 Company Overview ▪ Full service commercial bank with goal of helping our clients build and sustain wealth since 1999 ▪ Business model combines high - touch service and relationship - based focus of a community bank with extensive suite of financial products and services ▪ Expertise in commercial r
Slide 4: Loan and Deposit Portfolio
3 Loan and Deposit Portfolio Metropolitan Commercial Bank • Multi - family loans – 78% rent regulated • CRE/RBC ratios: MCBH 374.2% and MCB 372.6% • CRE Owner - occupied is a segment of our C&I Lending platform Loan Portfolio at June 30, 2019 $2.34 Billion Deposits at June 30, 2019 $ 2 .38 Billion 3
Slide 5: Quarterly Revenues, Profitability and Asset Quality
4 Quarterly Revenues, Profitability and Asset Quality *annualized (1) Results include a recovery of $ 4.2 million related to loans previously charged off in Q1. (2) Results include a recovery of $1.5 million related to loans previously charged off. 3 Months ended 6/30/2019 3/31/2019 12/31/2018 9/30/
Slide 6: Net Interest Margin Analysis
5 Net Interest Margin Analysis 3.59% 3.76% 3.77% 3.68% 3.47% 4.13% 4.49% 4.65% 4.83% 4.66% 1.46% 1.69% 1.90% 2.15% 2.22% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2Q18 3Q18 4Q18 1Q19 2Q19 Net Interest Margin Components ▬ NIM ▬ Yield on Interest - Earning Assets ▬ Rate on Interest - Bearing Liabilities Yie
Slide 7: Non-interest Income and Expense Detail
6 Non - interest Income and Expense Detail Non - Interest Income ($000s) Non - Interest Expense ($000s) 6/30/19 3/31/19 12/31/18 6/30/18 Service Charges on Deposit Accounts $908 $819 $826 $821 Prepaid Debit Card Income 1,422 1,257 1,133 1,519 Other Service Charges and Fees 313 278 229 346 Change in
Slide 8: Balance Sheet and Capital
7 Balance Sheet and Capital *Metropolitan Bank Holding Corp. and Metropolitan Commercial Bank meet all the requirements to be considered “Well - Capitalized” under applicable regulatory guidelines at each date shown. 3/31/19 12/31/18 Balance Sheet Total Assets $415,427 $777,969 Total Loans $233,153
Slide 9: Strong Balance Sheet Growth
8 Strong Balance Sheet Growth Deposits ($mm) Total Equity ($mm) Assets ($mm) Loans, Net of Deferred Fees ($mm) $1,924 $1,931 $2,183 $2,545 $2,961 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 $1,600 $1,699 $1,865 $2,102 $2,336 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 $1,540 $1,534 $1,661 $1,966 $2,376 2018Q2 2018Q3
Slide 10: Robust Organic Loan Growth within a Diversified Portfolio
9 Robust Organic Loan Growth within a Diversified Portfolio 1 Includes commercial real estate, multifamily, and construction ■ Total CRE¹ (Non Owner Occupied) ■ Total CRE (Owner Occupied) ■ C&I ■ Other $1,526 $1,600 $1,699 $1,867 $2,105 $2,339 859 903 964 1,063 1,142 1,330 210 234 228 236 366 419 34
Slide 11: Commercial Growth Driven by Expertise in Specific Lending Verticals
10 Commercial Growth Driven by Expertise in Specific Lending Verticals General Commercial and Industrial Overview C&I Composition at June 30, 2019 Target Market Key Metrics ▪ Middle market businesses with annual revenues below $200mm ▪ Primarily concentrated in the New York MSA ▪ Well - diversified
Slide 12: Relationship-based Commercial Real Estate Lending
11 Relationship - based Commercial Real Estate Lending Composition by Type at June 30, 2019 Composition by Region at June 30, 2019 Overview Target Market Key Metrics ▪ New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million ▪ Primarily concentrated in the New Yo
Slide 13: NYC Multi-family Loan Portfolio
12 NYC Multi - family Loan Portfolio New Rent Regulations Total Balance Weighted Average LTV Weighted Average DCR Weighted Average Debt Yield Total NYC Multi-family $181,333 47.69% 1.74 11.97% Rent regulated 141,037 44.87% 1.87 13.31% Unregulated 40,296 57.59% 1.28 7.28% ▪ MCB multi - family loans u
Slide 14: Well-Developed, Diversified Healthcare Portfolio
13 Well - Developed, Diversified Healthcare Portfolio ▪ Active in Healthcare lending since 2002 ▪ CRE – SNF – Average loan - to - value of 69% ▪ Highly selective in regards to the quality of Skilled Nursing Operators which we finance ▪ Majority of loans supported by personal guarantee of high net wo
Slide 15: Credit Metrics
14 Credit Metrics 0.01% 0.02% 0.02% 0.07% 0.05% 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 ALLL/Loans Non - Performing Assets/ALLL NCOs/Average Loans (Annualized) Non - Performing Assets/Loans 1.09% 1.09% 1.02% 0.99% 0.97% 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 1.1% 2.2% 1.5% 7.2% 4.9% 2018Q2 2018Q3 2018Q4 2019
Slide 16: Diversified Deposit Gathering Capabilities
15 Diversified Deposit Gathering Capabilities Deposit Composition ($mm) 812 1,012 878 773 799 866 1,103 592 605 662 761 862 1,100 1,273 $1,404 $1,617 $1,540 $1,534 $1,661 $1,966 $2,376 0.47% 0.38% 0.44% 0.62% 0.81% 1.06% 1.12% 2017 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 ▪ Conversion of commercial
Slide 17: Global Payments Group
16 Global Payments Group Metropolitan Commercial Bank $282 $250 $280 $251 $229 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 Average Deposits Related to Debit Card Programs ($mm) ▪ Payroll ▪ Corporate ▪ Incentive ▪ Commission ▪ Rebates ▪ Gift Cards General purpose reloadable debit cards Average Deposits to All
Slide 18: Well Positioned for Changing Rate Environment
17 Well Positioned for Changing Rate Environment Estimated Sensitivity of Projected Annualized Net Interest Income as of March 31, 2019 Fixed vs. Floating Rate Loans at June 30, 2019 (1.92%) (1.54%) 1.52% 2.64% 4.02% 5.40% -200bps -100bps +100bps +200bps +300bps +400bps Floating 39% Fixed 61% Approx
Slide 19: Outlook: Loan and Deposit Growth, Margin Expansion, Operating Leverage
18 Outlook: Loan and Deposit growth, Margin Expansion, Operating Leverage Loan Growth Core Deposit Funding Performance ▪ Maintain a diversified commercial real estate portfolio ▪ Maintain CRE concentration below our internal limits ▪ Capture market share from larger competitors through differentiate
Slide 20: Appendix
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Slide 21: MCB Selected Global Payment Clients
20 MCB Selected Global Payment Clients Debit Card For teens with parental spending controls and financial literacy lessons Metropolitan Commercial Bank Issuing Bank Debit Card Premier mobile service provider in the Caribbean and Central America for money transfer Metropolitan Commercial Bank Issuing
Slide 22: MCB Selected Global Payment Clients
21 MCB Selected Global Payment Clients Payments Processor Digital check cashing and payment services Metropolitan Commercial Bank Sponsor Bank Debit Card Issuer of debit cards linked to margin accounts for the largest U.S. electronic brokerage firm Metropolitan Commercial Bank Issuing Bank Payments
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