Metrocity Bankshares, Inc. · NASDAQ:MCBS
Metrocity Bankshares — KBW Community Bank Investor Conference 2024
20 slides from Metrocity Bankshares's conference presentation, Jul 26, 2024
Slide 1: KBW Community Bank Investor Conference July 2024
KBW Community Bank Investor Conference NASDAQ: MCBS July 2024
Slide 2: Disclaimer
2 Disclaimer This presentation contains “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be regarding future events an
Slide 3: Company Overview
3 Company Overview Headquarters • Doraville, Georgia (Atlanta Metro Area) 2024 Size and Scale • $3.6 billion in total assets • $3.1 billion in gross loans • $2.7 billion in total deposits Focus • Non-conforming mortgage lending, SBA lending and conservative CRE lending • Predominantly Asian-American
Slide 4: History of Metro City Bank
4 History of Metro City Bank • Opened April 2006 • $14.9mm in equity 2006 • Opened a branch in Suwanee, GA 2008 • Achieved 2% ROAA • Acquired Global Commerce (FDIC-Assisted) • Acquired Opelika branch from Synovus to enter Alabama 2012 • Entered the Washington D.C. area by opening a branch in Centrev
Slide 5: Senior Management Team
5 Senior Management Team Name Holding Company Title Years in Industry Year Joined MetroCity Prior Experience Nack Y. Paek Chairman and Chief Executive Officer 43 2006 • Founder of MetroCity Bankshares, Inc. and Metro City Bank • Served as President of Government Loan Service Corp. which specialized
Slide 6: Key Investment Highlights
6 Key Investment Highlights • Strong asset growth in each of the last three years, driven by investments in personnel and branch infrastructure • Since 2015, we have added twelve full-service branches in carefully selected locations and added 130 employees • Investments yielded growth in assets, loa
Slide 7: Beneficial Ownership of Executive Officers and Directors
7 Beneficial Ownership of Executive Officers and Directors Name Age Year Joined Principal Occupation Nationality Title and Position with the Company Shares of Common Stock Beneficially Owned Nack Y. Paek 82 2006 Chairman and CEO of MetroCity Bankshares, Inc. Korean Chairman, CEO and Founder 5.46% Fa
Slide 8: Financial Snapshot
8 As of or for the Six Months Ended, June 30, 2024 Total Assets $3,61 5.4 Gross Loans 3,090.5 Total Deposits 2,7 45.9 Total Shareholders' Equity 407 .2 Net Income ($mm) $31 .6 Return on Av erage Assets 1 .7 7 % Return on Av erage Shareholders' Equity 1 6.27 % Net Interest Margin 3.45% Efficiency Rat
Slide 9: Exceptional Profitability and Growth
9 2.87% 2.17% 2.51% 1.96% 1.50% 1.77% 2019 2020 2021 2022 2023 2024 YTD 24.23% 16.02% 23.55% 19.55% 14.10% 16.27% 2019 2020 2021 2022 2023 2024 YTD 39.7% 44.0% 35.1% 35.8% 39.9% 36.8% 2019 2020 2021 2022 2023 2024 YTD Net Interest Margin Efficiency Ratio Exceptional Profitability and Growth Return o
Slide 10: Peer Leading Performance
10 Peer Leading Performance Performance Metrics vs. Peers Growth Metrics vs. Peers(1) (2) Peer Median Note: Ethnic Peer Group includes eight banks traded on either the NYSE or the Nasdaq Global Select Market and headquartered in the United States with a primary focus on serving distinct ethnic commu
Slide 11: Strong Focus on Credit
11 0.63% 0.93% 0.89% 0.50% 0.71% 1.10% 0.75% 2018 2019 2020 2021 2022 2023 2024 YTD Strong Focus on Credit Credit Quality Highlights NPAs / Total Assets • Adherence to disciplined and well-defined underwriting practices No delegated individual lending authority Lending authority governed by grad
Slide 12: Diverse Loan Portfolio
12 Construction and Development $13.6 0.4% Commercial Real Estate $733.8 23.7% Commercial and Industrial $68.3 2.2% Consumer & Other $0.2 Residential Real 0.01% Estate $2,282.6 73.7% Diverse Loan Portfolio 6/30/2024 Note: Dollars in millions unless otherwise noted Loan Portfolio Highlights • Primary
Slide 13: Residential Real Estate Lending
13 Residential Real Estate Lending Geographic Breakdown Residential Real Estate Loan Balances ($mm) Note: Dollars in millions unless otherwise noted. Financial data is as of or for the 12 months ended December 31 for each respective year end and as of or for the six months ended June 30 for 2024 YTD
Slide 14: SBA Lending Continues to Support Growth
14 $167.4 $173.6 $192.7 $238.8 $303.6 $286.6 $271.1 $92.4 $31.0 $0.7 $0.3 $0.2 $285.1 $269.8 $304.3 $286.9 $271.3 2018 2019 2020 2021 2022 2023 2024 YTD Non-PPP SBA Loans PPP Loans Agriculture 6.1% Supermarkets & Other Grocery 5.5% Beer/Wine/Liquor Stores 24.2% C-Store 4.0% Hotels & Motels 4.6% Rest
Slide 15: Revenue and Noninterest Income
15 Net Interest Income $57.8 83.9% SBA servicing income, net $2.1 3.0% Other $1.1 1.6% Service charges, commissions and fees $4.2 6.0% Gain on sale - SBA loans $1.0 1.5% Gain on sale - SFR loans $1.4 2.0% Mortgage servicing income, net and other $1.3 1.9% • For the year ended December 31, 2023 and t
Slide 16: Deposit Portfolio
16 1.69% 0.83% 0.21% 0.97% 3.04% 3.07% 2019 2020 2021 2022 2023 2024 YTD Deposit Portfolio Deposit Portfolio Highlights Note: Dollars in millions unless otherwise noted. Financial data is as of or for the 12 months ended December 31 for each respective year and as of or for the six months ended June
Slide 17: Strong Capital Position
17 22.01% 20.86% 17.77% 16.68% 17.60% 19.12% 2019 2020 2021 2022 2023 2024 YTD 12.70% 13.44% 9.44% 9.57% 10.20% 10.75% 2019 2020 2021 2022 2023 2024 YTD Strong Capital Position Total Shareholders Equity to Total Assets Tier 1 Leverage Ratio Note: Financial data is as of or for the 12 months ended De
Slide 18: Appendix
Appendix
Slide 19: Selected Historical Consolidated Financials
19 Selected Historical Consolidated Financials As of or for the As of or for the Year Ended Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 Statement of Income Data: Interest income $ 77,609 $ 108,741 $ 147,220 $ 192,827 $ 106,466 Interes
Slide 20: Selected Historical Consolidated Financials
20 Selected Historical Consolidated Financials As of or for the As of or for the Year Ended Six Months Ended December 31, June 30, (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 Asset quaility data: Net charge-offs/(recoveries) to average loans HFI 0.01% 0.01% 0.01% 0.02% (0.
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