8-K
Metropolitan Bank Holding Corp. (MCB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 18, 2023
METROPOLITAN BANK HOLDING CORP.
(Exact Name of Registrant as Specified in Its Charter)
| | | |
|---|---|---|
| New York | 001-38282 | 13-4042724 |
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File No.) | (I.R.S. Employer Identification No.) |
| | | |
| 99 Park Avenue , New York , New York | | 10016 |
| (Address of Principal Executive Offices) | | (Zip Code) |
( 212 ) 659-0600
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)
| | | |||
|---|---|---|---|---|
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, par value $0.01 per share | | MCB | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition
On April 18, 2023, Metropolitan Bank Holding Corp. (the “Company”), the holding company for Metropolitan Commercial Bank (the “Bank”), issued a press release announcing its financial results for the first quarter of 2023. The press release containing the financial results is attached hereto as Exhibit 99.1 and shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.1 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.
Item 7.01Regulation FD Disclosure
The Company has also made available on its website presentation materials containing additional information about the Company’s financial results for the first quarter of 2023 (the “Presentation Materials”). The Presentation Materials are furnished herewith as Exhibit 99.2 and is incorporated by reference in this Item 7.01.
The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for any purpose, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.
Item 9.01.Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated April 18, 2023 |
| 99.2 | Presentation Materials |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| METROPOLITAN BANK HOLDING CORP. | ||
|---|---|---|
| Dated: April 18, 2023 | By: | /s/ Gregory A. Sigrist |
| Gregory A. Sigrist | ||
| Executive Vice President and Chief Financial Officer |
Exhibit 99.1
| Release: | 4:05 P.M. April 18, 2023 |
|---|
212-365-6721
IR@MCBankNY.com
Metropolitan Bank Holding Corp. Reports First Quarter 2023 Results
Quarterly Financial Highlights Year-Over-Year:
●Net income of $25.1 million, an increase of 31.8%.
●Diluted earnings per share of $2.25, an increase of 33.1%.
●Revenues^1^ of $65.5 million, an increase of 21.2%.
●Net interest income of $58.5 million, an increase of 25.5%.
●Net interest margin of 3.86%, an increase of 115 basis points, with an average loan yield of 6.34% and total cost of funds of 1.83% for the first quarter of 2023.
●Loans totaled $4.9 billion, an increase of 17.7%.
●Return on average equity of 17.2% and return on average tangible common equity^2^ of 17.4%.
Safety and Soundness
●Total core deposits, which do not include crypto related deposits of $278.5 million, were $4.9 billion at March 31, 2023, an increase of $69.2 million from December 31, 2022.
●Insured deposits accounted for approximately 71% of total deposits at March 31, 2023, up from 60% at December 31, 2022.
●Liquidity remains strong. At March 31, 2023, cash on deposit with the Federal Reserve Bank of New York and readily accessible secured funding capacity totaled $3.1 billion, which was 208% of uninsured deposit balances.
●Our previously announced exit from the crypto related vertical is almost complete, with deposits from active institutional crypto-asset related clients accounting for 4%, or $217.6 million, of total deposits at March 31, 2023.
●Asset quality remains strong. The commercial real estate (“CRE”) portfolio, which includes owner-occupied CRE, is broadly diversified by property type, with offices comprising only 7% of the total loan portfolio, and the 53% average loan-to-value ratio of the portfolio significantly mitigates credit risk.
●Modest loan growth for the quarter, with new originations of $265.4 million, which was offset by $254.2 million in loan payoffs and paydowns.
●The Company and Bank are “well capitalized” across all measures of regulatory capital, with a total risk-based capital of 13.6% and 13.2%, respectively, at March 31, 2023, well above regulatory minimums.
NEW YORK, April 18, 2023 ‒ Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), reported net income of $25.1 million, or $2.25 per diluted common share, for the first quarter of 2023 compared to net income of $19.0 million, or $1.69 per diluted common share, for the first quarter of 2022.
^1^ Total revenues equal net interest income plus non-interest income.
^2^ Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 11. 1
Mark DeFazio, President and Chief Executive Officer, commented,
“I am pleased with our first quarter results, which demonstrated that we were well prepared for the challenges that the banking industry has faced. The results, along with our proactive planning, validate our operating model. Our capital, liquidity and financial position remain strong. While our lending growth was modest for the quarter, we continue to maintain our high credit quality standards and continued to see growth in core deposits. Global Payments revenue excluding Crypto continued to scale, quarter over quarter.
“Business and economic disruptions cut both ways. When the dust settles, disruptions highlight business models like ours with sustainable growth. This disruption I believe will highlight the value of our commercial bank, which has the support of our very loyal commercial client base as we continue to enhance our franchise value.”
Balance Sheet
Total cash and cash equivalents were $299.5 million at March 31, 2023, an increase of $42.1 million, or 16.3%, from December 31, 2022 and a decrease of $1.1 billion from March 31, 2022. The increase from December 31, 2022, primarily reflected net cash from operating activities. The decrease from March 31, 2022, reflected the $730.3 million net deployment into loans and the $807.6 million outflow of deposits primarily due to the decrease in digital currency business deposits.
Total loans, net of deferred fees and unamortized costs, were $4.9 billion, an increase of $11.2 million, or 0.2%, from December 31, 2022, and an increase of $730.3 million, or 17.7% from March 31, 2022. Loan production was $265.4 million for the first quarter of 2023 compared to $411.3 million for the prior linked quarter and $488.9 million for the prior year period. The increase in total loans from December 31, 2022, was due primarily to an increase of $51.7 million in CRE (including owner-occupied) and commercial and industrial (“C&I”) loans, partially offset by a $44.9 million decrease in multi-family and construction loans. The increase in total loans from March 31, 2022, was due primarily to an increase of $497.2 million in CRE loans (including owner-occupied) and $211.9 million in C&I loans.
Total deposits were $5.1 billion at March 31, 2023, a decrease of $146.1 million, or 2.8% from December 31, 2022, and a decrease of $807.6 million or 13.6% from March 31, 2022. The decrease from December 31, 2022, was due primarily to a decrease of $215.4 million in digital currency business deposits, partially offset by an aggregate net increase of $69.2 million in core deposit verticals. The decrease in digital currency business deposits reflects the Company’s decision to fully exit the crypto related vertical. The decrease in deposits from March 31, 2022, was primarily due to a decrease of $825.8 million in digital currency business deposits. Non-interest-bearing demand deposits declined to 41.4% of total deposits at March 31, 2023, compared to 45.9% at December 31, 2022 and 53.5% at March 31, 2022, reflecting the outflow of crypto-related and other non-interest bearing deposits.
Accumulated other comprehensive loss, net of tax, was $50.1 million, a decrease of $4.2 million, from December 31, 2022, and an increase of $26.3 million from March 31, 2022. The decrease from December 31, 2022 was due to a decline in unrealized losses on available-for-sale securities due to the prevailing interest rate environment, partially offset by an unrealized loss on an outstanding cash flow hedge and the reclassification to net income of gains on a terminated cash flow hedge. The increase from March 31, 2022 was due primarily to unrealized losses on available-for-sale securities due to the prevailing interest rate environment, partially offset by the increases in unrealized gains on cash flow hedges prior to their termination in the third quarter of 2022.
At March 31, 2023, the Company had $2.8 billion remaining secured funding capacity from the Federal Home Loan Bank, Federal Reserve Bank and securities repurchase facilities. The Company and the Bank each met all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 357.8% of total risk-based capital at March 31, 2023, compared to 366.0% and 351.0% at December 31, 2022 and March 31, 2022, respectively.
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Income Statement
Financial Highlights
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Three months ended | | |||||||
| | | Mar. 31, | | Dec. 31, | | Mar. 31, | | |||
| (dollars in thousands, except per share data) | | 2023^(1)^ | | 2022^(2)^ | | 2022 | | |||
| Total revenues^(3)^ | | $ | 65,508 | | $ | 70,249 | | $ | 54,059 | |
| Net income (loss) | | | 25,076 | | | (7,740) | | | 19,021 | |
| Diluted earnings (loss) per common share | | 2.25 | | (0.71) | | 1.69 | | |||
| Return on average assets^(4)^ | | 1.64 | % | N.M. | % | 1.11 | % | |||
| Return on average equity^(4)^ | | 17.2 | % | N.M. | % | 13.8 | % | |||
| Return on average tangible common equity^(4), (5)^ | | 17.4 | % | N.M. | % | 14.0 | % |
| (1) | Includes a $2.5 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022. |
|---|---|
| (2) | Includes a $35.0 million charge for a regulatory settlement reserve. |
| --- | --- |
(3) Total revenues equal net interest income plus non-interest income.
| (4) | Ratios are annualized. |
|---|---|
| (5) | Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 11. |
| --- | --- |
N.M. ‒ Not meaningful.
Net Interest Income
Net interest income for the first quarter of 2023 was $58.5 million, a decrease of $5.4 million from the prior linked quarter and an increase of $11.9 million from the prior year period. The decrease from the prior linked quarter was primarily due to the 66 basis point increase in total cost of funds, partially offset by the 36 basis point increase in the average yield for loans. The increase from the prior year period was primarily due to the $936.4 million increase in the average balance of loans and the 156 basis point increase in the average yield for loans, partially offset by the 155 basis point increase in the cost of funds.
Net Interest Margin
Net interest margin for the first quarter of 2023 was 3.86% compared to 4.05% and 2.71% for the prior linked quarter and prior year period, respectively. The 19 basis point decrease for the prior linked quarter was due primarily to the increase in total cost of funds, partially offset by the increase in the average yield for loans. The 115 basis point increase for the prior year period was driven largely by the increase in the average balance of loans and the increase in loan yields partially offset by the higher cost of funds.
Total cost of funds for first quarter of 2023 was 183 basis points compared to 117 basis points and 28 basis points for the prior linked quarter and prior year period, respectively, which primarily reflects the increase in prevailing interest rates and competition for deposits, as well as the outflow of crypto-related and other non-interest bearing deposits.
Non-Interest Income
Non-interest income was $7.0 million for the first quarter of 2023, an increase of $624,000 from the prior linked quarter and a decrease of $453,000 from the prior year period. The increase from the prior linked quarter was driven by higher Global Payments Group (“GPG”) revenues. The decrease from the prior year period was driven by decreases in GPG revenues related to digital currency clients.
Non-Interest Expense
Non-interest expense was $31.0 million for the first quarter of 2023, a decrease of $35.6 million from the prior linked quarter and an increase of $6.4 million from the prior year period. The decrease from the prior linked quarter was due primarily to the $35.0 million regulatory settlement reserve recorded in the fourth quarter of 2022. The increase from
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the prior year period was due primarily to the increase in compensation and benefits due to the increase in the number of full-time employees, and an increase in professional fees, partially offset by the $2.5 million reduction of the regulatory settlement reserve recorded in the first quarter of 2023.
Income Tax Expense
The effective tax rate for the first quarter of 2023 was 25.9% compared to 27.0% for the prior year period. The effective tax rate for the first quarter of 2023 includes a favorable discrete benefit related to the conversion of stock awards in the first quarter of 2023. The effective tax rate in the prior year period includes the recognition of discrete tax items during the period. The effective tax rate for the prior linked quarter is not meaningful as it includes the $35.0 million regulatory settlement reserve.
Asset Quality
Credit quality remains strong. The ratio of non-performing loans to total loans was 0.50% at March 31, 2023 compared to 0.00% at December 31, 2022 and 0.00% at March 31, 2022, respectively.
The allowance for credit losses (“ACL”) was $47.8 million at March 31, 2023, a $2.9 million increase from December 31, 2022 and $9.6 million increase from March 31, 2022. The increase from December 31, 2022 was primarily due to the Company adopting ASU No. 2016-13, Financial Instruments – Credit Losses (ASC 326) effective January 1, 2023. ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at amortized cost to be based on historical experience, current condition, and reasonable and supportable forecasts. Upon adoption, the Company recorded a $2.3 million increase to the ACL for loans, a $777,000 increase to the ACL for loan commitments, and a $2.1 million decrease to retained earnings, net of taxes. The Company also recorded a $646,000 provision for credit losses for the first quarter of 2023 primarily driven by macroeconomic factors. The increase in the ACL from March 31, 2022 was primarily due to the growth in loans and the adoption of ASU No. 2016-13.
Conference Call
The Company will conduct a conference call at 8:30 a.m. ET on Wednesday, April 19, 2023, to discuss the results. To access the event by telephone, please dial 800-245-3047 (US), 203-518-9843 (INTL), and provide conference ID: MCBQ123 approximately 15 minutes prior to the start time (to allow time for registration).
The call will also be broadcast live over the Internet and accessible at MCB Quarterly Results Conference Call and in the Investor Relations section of the Company’s website at MCB News. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software. For those unable to join for the live presentation, a replay of the webcast will also be available later that day accessible at MCB Quarterly Results Conference Call.
About Metropolitan Bank Holding Corp.
Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”), a New York City based full-service commercial bank. The Bank provides a broad range of business, commercial and personal banking products and services to small businesses, private and public middle-market and corporate enterprises and institutions, municipalities and local government entities, and affluent individuals.
Metropolitan Commercial Bank’s Global Payments Group is an established leader in providing domestic and international banking services to non-bank financial service companies, including: providing digital payments settlements; providing a gateway to payment networks; acting as a custodian of deposits; providing merchant acquiring services; acting as a global settlement agent, and as a leading national issuer of third-party debit cards. The Bank continues to grow its presence as a valued, trusted and innovative strategic partner across, payments, custodial and money services businesses worldwide.
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Metropolitan Commercial Bank’s EB-5 / E-2 International Group delivers banking services and products for United States Citizen and Immigration Services EB-5 Immigrant Investor Program investors, developers, Regional Centers, government agencies, law firms and consulting companies that specialize in EB-5 and E-2.
Metropolitan Commercial Bank finished in the top ten of S&P Global Market Intelligence’s annual ranking of the best-performing community banks with assets between $3 billion and $10 billion for 2022, and among the top ten top-performing community banks in the Northeast region for 2022. The Bank is also a member of the Piper Sandler Sm-All Stars Class of 2022. The Bank is a New York State chartered commercial bank, a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal housing lender. For more information, please visit MCBankNY.com.
Forward-Looking Statement Disclaimer
This release 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 and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the continuing impact of the COVID-19 pandemic on our business and results of operation, an unexpected deterioration in our loan or securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, further deterioration in the financial condition or stock prices of financial institutions generally, unexpected increases in our expenses, different than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, inflation, potential recessionary conditions, unanticipated volatility in deposits, unexpected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans, our ability to absorb the amount of actual losses inherent in our existing loan portfolio, an unanticipated loss of key personnel or existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, an unexpected adverse financial, regulatory or bankruptcy event experienced by our non-bank financial service partners, unanticipated increases in FDIC costs, changes in regulations, legislation or tax or accounting rules, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, impacts related to or resulting from recent bank failures, an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance, the credit and other risks from borrower and depositor concentrations (by geographic area and by industry), the current or anticipated impact of military conflict, terrorism or other geopolitical events, the costs, including possibly incurring fines, penalties or other negative effects (including reputational harm), of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, or to implement new technologies, failure to maintain effective internal control over financial reporting, failure to retain or attract employees and unanticipated adverse changes in our customers’ economic conditions or general economic conditions, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K.
Forward-looking statements speak only as of the date of this release. We do not undertake any obligation to update or revise any forward-looking statement.
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Consolidated Balance Sheet (unaudited)
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Mar. 31, | | Dec. 31, | | Sept. 30, | | Jun. 30, | | Mar. 31, | |||||
| (in thousands) | **** | 2023 | | 2022 | | 2022 | | 2022 | | 2022 | |||||
| Assets | | | | | | | | | | | | | |||
| Cash and due from banks | | $ | 32,525 | | $ | 26,780 | | $ | 28,929 | | $ | 33,143 | | $ | 32,483 |
| Overnight deposits | | 266,978 | | 230,638 | | 679,849 | | 1,308,738 | | | 1,381,475 | ||||
| Total cash and cash equivalents | | 299,503 | | 257,418 | | 708,778 | | 1,341,881 | | | 1,413,958 | ||||
| Investment securities available for sale | | 444,169 | | 445,747 | | 423,265 | | 465,661 | | | 505,728 | ||||
| Investment securities held to maturity | | 501,525 | | 510,425 | | 521,376 | | 530,740 | | | 467,893 | ||||
| Equity investment securities, at fair value | | | 2,087 | | | 2,048 | | 2,027 | | 2,107 | | | 2,173 | ||
| Total securities | | 947,781 | | 958,220 | | 946,668 | | 998,508 | | | 975,794 | ||||
| Other investments | | 27,099 | | 22,110 | | 17,484 | | 17,357 | | | 15,989 | ||||
| Loans, net of deferred fees and unamortized costs | | 4,851,694 | | 4,840,523 | | 4,617,304 | | 4,375,165 | | | 4,121,443 | ||||
| Allowance for credit losses | | (47,752) | | (44,876) | | (42,541) | | (40,534) | | | (38,134) | ||||
| Net loans | | 4,803,942 | | 4,795,647 | | 4,574,763 | | 4,334,631 | | | 4,083,309 | ||||
| Receivables from global payments business, net | | | 83,787 | | 85,605 | | 75,457 | | 68,214 | | | 62,129 | |||
| Other assets^(1)^ | | | 147,870 | | | 148,337 | | | 144,328 | | | 152,941 | | | 123,380 |
| Total assets | | $ | 6,309,982 | | $ | 6,267,337 | | $ | 6,467,478 | | $ | 6,913,532 | | $ | 6,674,559 |
| | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity | | **** | | | | | | | |||||||
| Deposits | | | | | | | | ||||||||
| Non-interest-bearing demand deposits | | $ | 2,122,606 | | $ | 2,422,151 | | $ | 3,058,014 | | $ | 3,470,325 | | $ | 3,176,048 |
| Interest-bearing deposits | | 3,009,182 | | 2,855,761 | | 2,673,509 | | 2,708,075 | | | 2,763,315 | ||||
| Total deposits | | 5,131,788 | | 5,277,912 | | 5,731,523 | | 6,178,400 | | | 5,939,363 | ||||
| Federal funds purchased | | | 195,000 | | | 150,000 | | | — | | | — | | | — |
| Federal Home Loan Bank of New York advances | | | 200,000 | | | 100,000 | | | — | | | — | | | — |
| Trust preferred securities | | 20,620 | | 20,620 | | 20,620 | | 20,620 | | | 20,620 | ||||
| Secured borrowings | | | 7,689 | | | 7,725 | | | 26,912 | | | 32,044 | | | 32,322 |
| Prepaid third-party debit cardholder balances | | 11,102 | | 10,579 | | 9,395 | | 23,531 | | | 24,092 | ||||
| Other liabilities^(1)^ | | | 135,896 | | | 124,604 | | | 96,791 | | | 84,631 | | | 98,132 |
| Total liabilities | | 5,702,095 | | 5,691,440 | | 5,885,241 | | 6,339,226 | | | 6,114,529 | ||||
| | | | | | | | | | | | | | | | |
| Common stock | | 110 | | 109 | | 109 | | 109 | | | 109 | ||||
| Additional paid in capital | | 394,126 | | 389,276 | | 387,406 | | 385,369 | | | 383,327 | ||||
| Retained earnings | | 263,783 | | 240,810 | | 248,550 | | 223,595 | | | 200,406 | ||||
| Accumulated other comprehensive gain (loss), net of tax effect | | (50,132) | | (54,298) | | (53,828) | | (34,767) | | | (23,812) | ||||
| Total stockholders’ equity | | 607,887 | | 575,897 | | 582,237 | | 574,306 | | | 560,030 | ||||
| Total liabilities and stockholders’ equity | | $ | 6,309,982 | | $ | 6,267,337 | | $ | 6,467,478 | | $ | 6,913,532 | | $ | 6,674,559 |
| (1) | Includes adoption impact of ASU 2016-02, Leases (ASC 842) effective January 1, 2022. |
|---|
6
Consolidated Statement of Income (unaudited)
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| | **** | Three months ended | |||||||
| | | Mar. 31, | | Dec. 31, | | Mar. 31, | |||
| (dollars in thousands, except per share data) | **** | 2023 | | 2022 | | 2022 | |||
| Total interest income | | $ | 83,263 | | $ | 80,554 | | $ | 50,970 |
| Total interest expense | | 24,729 | | 16,655 | | 4,338 | |||
| Net interest income | | 58,534 | | 63,899 | | 46,632 | |||
| Provision for credit losses | | 646 | | 2,309 | | 3,400 | |||
| Net interest income after provision for credit losses | | 57,888 | | 61,590 | | 43,232 | |||
| | | | | ||||||
| Non-interest income | | | | ||||||
| Service charges on deposit accounts | | 1,456 | | 1,458 | | 1,370 | |||
| Global Payments Group revenue | | 4,850 | | 4,343 | | 5,657 | |||
| Other income | | | 668 | | | 549 | | | 400 |
| Total non-interest income | | 6,974 | | 6,350 | | 7,427 | |||
| | | | | ||||||
| Non-interest expense | | | | ||||||
| Compensation and benefits | | 16,255 | | 15,886 | | 13,421 | |||
| Bank premises and equipment | | 2,344 | | 2,247 | | 2,116 | |||
| Professional fees | | 4,187 | | 5,171 | | 1,474 | |||
| Technology costs | | 1,313 | | 1,186 | | 1,399 | |||
| Licensing fees | | | 2,662 | | | 2,674 | | | 2,294 |
| FDIC assessments | | | 2,814 | | | 1,030 | | | 1,245 |
| Regulatory settlement reserve | | | (2,500) | | | 35,000 | | | — |
| Other expenses | | 3,950 | | 3,465 | | 2,670 | |||
| Total non-interest expense | | 31,025 | | 66,659 | | 24,619 | |||
| | | | | ||||||
| Net income before income tax expense | | 33,837 | | 1,281 | | 26,040 | |||
| Income tax expense | | 8,761 | | 9,021 | | 7,019 | |||
| Net income (loss) | | $ | 25,076 | | $ | (7,740) | | $ | 19,021 |
| | | | | | |||||
| Earnings per common share: | | | | | |||||
| Average common shares outstanding: | | | | | | | | | |
| Basic | | | 11,044,624 | | | 10,932,952 | | | 10,919,868 |
| Diluted | | | 11,103,008 | | | 11,183,862 | | | 11,223,294 |
| Basic earnings (loss) | | $ | 2.26 | | $ | (0.71) | | $ | 1.74 |
| Diluted earnings (loss) | | $ | 2.25 | | $ | (0.71) | | $ | 1.69 |
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Loan Production, Asset Quality & Regulatory Capital
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar. 31, | | Dec. 31, | | Sept. 30, | | Jun. 30, | | Mar. 31, | | |||||
| | | 2023 | | 2022 | | 2022 | | 2022 | **** | 2022 | | |||||
| LOAN PRODUCTION (in millions) | | $ | 265.4 | | $ | 411.3 | | $ | 423.6 | | $ | 512.8 | | $ | 488.9 | |
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY (in thousands) | | | | | | | | | | | | | | | | |
| Non-accrual loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 24,000 | | $ | — | | $ | — | | $ | — | | $ | — | |
| Commercial and industrial | | | — | | | — | | | — | | | — | | | — | |
| Consumer | | | 24 | | | 24 | | | 24 | | | 24 | | | 24 | |
| Total non-accrual loans | | $ | 24,024 | | $ | 24 | | $ | 24 | | $ | 24 | | $ | 24 | |
| Total non-performing loans | | $ | 24,024 | | $ | 24 | | $ | 24 | | $ | 24 | | $ | 24 | |
| Non-accrual loans to total loans | | 0.50 | % | — | % | — | % | — | % | — | % | |||||
| Non-performing loans to total loans | | 0.50 | % | — | % | — | % | — | % | — | % | |||||
| Allowance for credit losses | | $ | 47,752 | | $ | 44,876 | | $ | 42,541 | | $ | 40,534 | | $ | 38,134 | |
| Allowance for credit losses to total loans | | 0.98 | % | 0.93 | % | 0.92 | % | 0.93 | % | 0.93 | % | |||||
| Charge-offs | | $ | (100) | | $ | — | | $ | — | | $ | — | | $ | — | |
| Recoveries | | $ | — | | $ | 25 | | $ | — | | $ | — | | $ | 5 | |
| Net charge-offs/(recoveries) to average loans (annualized) | | | 0.01 | % | | — | % | | — | % | | — | % | | — | % |
| | | | | | | | | | | | | | | | | |
| REGULATORY CAPITAL | | | | | | | ||||||||||
| Tier 1 Leverage: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 10.8 | % | 10.2 | % | 9.9 | % | 9.2 | % | 8.6 | % | |||||
| Metropolitan Commercial Bank | | 10.4 | % | 10.0 | % | 9.7 | % | 9.1 | % | 8.5 | % | |||||
| | | | | | | | | | | | | | | | | |
| Common Equity Tier 1 Risk-Based (CET1): | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 12.3 | % | 12.1 | % | 12.9 | % | 13.0 | % | 13.3 | % | |||||
| Metropolitan Commercial Bank | | 12.3 | % | 12.3 | % | 13.1 | % | 13.2 | % | 13.6 | % | |||||
| | | | | | | | | | | | | | | | | |
| Tier 1 Risk-Based: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 12.7 | % | 12.5 | % | 13.3 | % | 13.4 | % | 13.7 | % | |||||
| Metropolitan Commercial Bank | | 12.3 | % | 12.3 | % | 13.1 | % | 13.2 | % | 13.6 | % | |||||
| | | | | | | | | | | | | | | | | |
| Total Risk-Based: | | | | | | | ||||||||||
| Metropolitan Bank Holding Corp. | | 13.6 | % | 13.4 | % | 14.2 | % | 14.3 | % | 14.6 | % | |||||
| Metropolitan Commercial Bank | | 13.2 | % | 13.1 | % | 14.0 | % | 14.1 | % | 14.5 | % |
8
Performance Measures
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| | | Three months ended | | |||||||
| (dollars in thousands, | | Mar. 31, | | Dec. 31, | | Mar. 31, | | |||
| except per share data) | **** | 2023^(1)^ | | 2022^(2)^ | | 2022 | **** | |||
| Net income (loss) available to common shareholders | | $ | 24,992 | | $ | (7,740) | | $ | 18,996 | |
| Per common share: | | | | | ||||||
| Basic earnings (loss) | | $ | 2.26 | | $ | (0.71) | | $ | 1.74 | |
| Diluted earnings (loss) | | $ | 2.25 | | $ | (0.71) | | $ | 1.69 | |
| Common shares outstanding: | | | | | ||||||
| Period end | | 11,211,274 | | 10,949,965 | | 10,931,697 | | |||
| Average fully diluted | | 11,103,008 | | 11,183,862 | | 11,223,294 | | |||
| Return on:^(3)^ | | | | | ||||||
| Average total assets | | 1.64 | % | N.M. | % | 1.11 | % | |||
| Average equity | | | 17.2 | % | | N.M. | % | | 13.8 | % |
| Average tangible common equity^(4)^ | | | 17.4 | % | | N.M. | % | | 14.0 | % |
| Yield on average earning assets^(3)^ | | 5.51 | % | 5.12 | % | 2.96 | % | |||
| Total cost of deposits^(3)^ | | | 1.72 | % | | 1.11 | % | | 0.23 | % |
| Net interest spread^(3)^ | | 2.25 | % | 2.79 | % | 2.32 | % | |||
| Net interest margin^(3)^ | | 3.86 | % | 4.05 | % | 2.71 | % | |||
| Net charge-offs as % of average loans | | 0.01 | % | — | % | — | % | |||
| Efficiency ratio^(5)^ | | 47.4 | % | 94.9 | % | 45.5 | % |
| (1) | Includes a $2.5 million reversal of the regulatory settlement reserve recorded in the fourth quarter of 2022. |
|---|---|
| (2) | Includes a $35.0 million charge for a regulatory settlement reserve. |
| --- | --- |
| (3) | Ratios are annualized. |
| --- | --- |
| (4) | Non-GAAP financial measure. See Reconciliation of Non-GAAP Measures on page 11. |
| --- | --- |
| (5) | Total non-interest expense divided by total revenues. |
| --- | --- |
N.M. ‒ Not meaningful.
9
Interest Margin Analysis
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three months ended | | ||||||||||||||||||||||||
| | | Mar. 31, 2023 | | | Dec. 31, 2022 | | | Mar. 31, 2022 | | ||||||||||||||||||
| | **** | Average | **** | | | **** | | **** | | Average | **** | | | **** | | **** | | Average | **** | | | **** | | **** | |||
| | | Outstanding | | | | | Yield / | | | Outstanding | | | | | Yield / | | | Outstanding | | | | | Yield / | | |||
| (dollars in thousands) | | Balance | | Interest | | Rate ^(1)^ | | | Balance | | Interest | | Rate ^(1)^ | | | Balance | | Interest | | Rate ^(1)^ | | ||||||
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |||||||||||||||
| Loans ^(2)^ | | $ | 4,838,336 | | $ | 75,960 | 6.34 | % | | $ | 4,796,001 | | $ | 72,560 | 5.98 | % | | $ | 3,901,976 | | $ | 46,536 | 4.78 | % | |||
| Available-for-sale securities | | 530,503 | | 2,106 | 1.59 | | | 527,523 | | 1,979 | 1.50 | | | 565,301 | | 1,648 | 1.17 | | |||||||||
| Held-to-maturity securities | | 506,655 | | 2,377 | 1.88 | | | 518,822 | | 2,422 | 1.87 | | | 447,165 | | 1,738 | 1.55 | | |||||||||
| Equity investments | | | 2,362 | | | 12 | | 2.08 | | | | 2,351 | | | 10 | | 1.70 | | | | 2,328 | | | 6 | | 1.03 | |
| Overnight deposits | | 207,917 | | 2,484 | 4.78 | | | 362,244 | | 3,291 | 3.55 | | | 1,969,366 | | 915 | 0.19 | | |||||||||
| Other interest-earning assets | | 20,163 | | 324 | 6.42 | | | 18,689 | | 292 | 6.26 | | | 13,328 | | 127 | 3.80 | | |||||||||
| Total interest-earning assets | | 6,105,936 | | 83,263 | 5.51 | | | 6,225,630 | | 80,554 | 5.12 | | | 6,899,464 | | 50,970 | 2.96 | | |||||||||
| Non-interest-earning assets | | 152,302 | | | | 101,826 | | | | 57,241 | | | |||||||||||||||
| Allowance for credit losses | | (45,614) | | | | (43,643) | | | | (36,130) | | | |||||||||||||||
| Total assets | | $ | 6,212,624 | | | | $ | 6,283,813 | | | | $ | 6,920,575 | | | ||||||||||||
| Liabilities and Stockholders' Equity: | | **** | **** | | | | **** | | | | | | | | | | | ||||||||||
| Interest-bearing liabilities: | | | | | | | | | | | | | | | |||||||||||||
| Money market and savings accounts | | $ | 2,840,271 | | | 22,030 | 3.15 | | | $ | 2,683,653 | | | 15,241 | 2.25 | | | $ | 2,639,572 | | | 3,463 | 0.53 | | |||
| Certificates of deposit | | 52,912 | | 343 | 2.63 | | | 49,470 | | 207 | 1.66 | | | 75,881 | | 162 | 0.86 | | |||||||||
| Total interest-bearing deposits | | 2,893,183 | | 22,373 | 3.14 | | | 2,733,123 | | 15,448 | 2.24 | | | 2,715,453 | | 3,625 | 0.54 | | |||||||||
| Borrowed funds | | 188,230 | | 2,356 | 5.01 | | | 101,600 | | 1,207 | 4.75 | | | 40,340 | | 713 | 7.07 | | |||||||||
| Total interest-bearing liabilities | | 3,081,413 | | 24,729 | 3.25 | | | 2,834,723 | | 16,655 | 2.33 | | | 2,755,793 | | 4,338 | 0.64 | | |||||||||
| Non-interest-bearing liabilities: | | | | | | | | | | ||||||||||||||||||
| Non-interest-bearing deposits | | 2,390,840 | | | | 2,792,370 | | | | 3,574,835 | | | |||||||||||||||
| Other non-interest-bearing liabilities | | 147,850 | | | | 60,951 | | | | 28,927 | | | |||||||||||||||
| Total liabilities | | 5,620,103 | | | | 5,688,044 | | | | 6,359,555 | | | |||||||||||||||
| Stockholders' equity | | 592,521 | | | | 595,769 | | | | | | | | 561,020 | | | | | | | |||||||
| Total liabilities and equity | | $ | 6,212,624 | | | | $ | 6,283,813 | | | | $ | 6,920,575 | | | ||||||||||||
| Net interest income | | | $ | 58,534 | | | | | $ | 63,899 | | | | | $ | 46,632 | | | |||||||||
| Net interest rate spread ^(3)^ | | | | 2.25 | % | | | | | | | 2.79 | % | | | | | | | 2.32 | % | ||||||
| Net interest margin ^(4)^ | | | 3.86 | % | | | 4.05 | % | | | 2.71 | % | |||||||||||||||
| Total cost of deposits ^(5)^ | | | | | | | | 1.72 | % | | | | | | | | 1.11 | % | | | | | | | | 0.23 | % |
| Total cost of funds ^(6)^ | | | | | | | | 1.83 | % | | | | | | | | 1.17 | % | | | | 0.28 | % |
| (1) | Ratios are annualized. |
|---|---|
| (2) | Amount includes deferred loan fees and non-performing loans. |
| --- | --- |
| (3) | Determined by subtracting the annualized average cost of total interest-bearing liabilities from the annualized average yield on total interest-earning assets. |
| --- | --- |
| (4) | Determined by dividing annualized net interest income by total average interest-earning assets. |
| --- | --- |
| (5) | Determined by dividing annualized interest expense on deposits by total average interest-bearing and non-interest bearing deposits. |
| --- | --- |
| (6) | Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits. |
| --- | --- |
10
Reconciliation of Non-GAAP Measures
In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following tables:
| | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarterly Data | | |||||||||||||||||
| (dollars in thousands, | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | Jun. 30, | | | Mar. 31, | | |||||
| except per share data) | | 2023 | | | 2022 | | | 2022 | | | 2022 | | | 2022 | | |||||
| Average assets | | $ | 6,212,624 | | | $ | 6,283,813 | | | $ | 6,553,105 | | | $ | 6,736,800 | | | $ | 6,920,575 | |
| Less: average intangible assets | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | |
| Average tangible assets (non-GAAP) | | $ | 6,202,891 | | | $ | 6,274,080 | | | $ | 6,543,372 | | | $ | 6,727,067 | | | $ | 6,910,842 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average common equity | | $ | 592,521 | | | $ | 595,769 | | | $ | 589,941 | | | $ | 567,931 | | | $ | 561,020 | |
| Less: average intangible assets | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | |||||
| Average tangible common equity (non-GAAP) | | $ | 582,788 | | | $ | 586,036 | | | $ | 580,208 | | | $ | 558,198 | | | $ | 551,287 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 6,309,982 | | | $ | 6,267,337 | | | $ | 6,422,061 | | | $ | 6,867,042 | | | $ | 6,626,940 | |
| Less: intangible assets | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | | | | 9,733 | |
| Tangible assets (non-GAAP) | | $ | 6,300,249 | | | $ | 6,257,604 | | | $ | 6,412,328 | | | $ | 6,857,309 | | | $ | 6,617,207 | |
| | | | | | | | | | | | | | | | | | | | | |
| Common equity | | $ | 607,887 | | | $ | 575,897 | | | $ | 582,237 | | | $ | 574,306 | | | $ | 560,030 | |
| Less: intangible assets | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | | 9,733 | | |||||
| Tangible common equity (book value) (non-GAAP) | | $ | 598,154 | | | $ | 566,164 | | | $ | 572,504 | | | $ | 564,573 | | | $ | 550,297 | |
| | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | | 11,211,274 | | | | 10,949,965 | | | | 10,931,697 | | | | 10,931,697 | | | | 10,931,697 | |
| Book value per share (GAAP) | | $ | 54.22 | | | $ | 52.59 | | | $ | 53.26 | | | $ | 52.54 | | | $ | 51.23 | |
| Tangible book value per share (non-GAAP) ^(1)^ | | $ | 53.35 | | | $ | 51.70 | | | $ | 52.37 | | | $ | 51.65 | | | $ | 50.34 | |
(1) Tangible book value divided by common shares outstanding at period-end.
Explanatory Note
Some amounts presented within this document may not recalculate due to rounding.
11
Exhibit 99.2
| 1Q 2023<br>Investor Presentation | ||
|---|---|---|
| Disclosure<br>This presentation contains “forward-looking<br>statements” within the meaning of the Private<br>Securities Litigation Reform Act of 1995. Examples<br>of forward-looking statements include but are not<br>limited to the Company’s future financial condition<br>and capital ratios, results of operations and the<br>Company’s outlook and business. Forward-looking<br>statements are not historical facts. Such statements<br>may be identified by the use of such words as<br>“may,” “believe,” “expect,” “anticipate,” “plan,”<br>“continue” or similar terminology. These statements<br>relate to future events or our future financial<br>performance and involve risks and uncertainties<br>that may cause our actual results, levels of activity,<br>performance or achievements to differ materially<br>from those expressed or implied by these forward-looking statements. Although we believe that the<br>expectations reflected in the forward-looking<br>statements are reasonable, we caution you not to<br>place undue reliance on these forward-looking<br>statements. Factors which may cause our forward-looking statements to be materially inaccurate<br>include, but are not limited to the continuing<br>impact of the COVID-19 pandemic on our business<br>and results of operation, an unexpected<br>deterioration in our loan or securities portfolios,<br>changes in liquidity, including the size and<br>composition of our deposit portfolio, including the<br>percentage of uninsured deposits in the portfolio,<br>further deterioration in the financial condition or<br>stock prices of financial institutions generally,<br>unexpected increases in our expenses, different<br>than anticipated growth and our ability to manage<br>our growth, unanticipated regulatory action or<br>changes in regulations, unexpected changes in<br>interest rates, inflation, potential recessionary<br>conditions, unanticipated volatility in deposits,<br>unexpected increases in credit losses or in the level<br>of delinquent, nonperforming, classified and<br>criticized loans, our ability to absorb the amount of<br>actual losses inherent in our existing loan portfolio,<br>an unanticipated loss of key personnel or existing<br>customers, competition from other institutions<br>resulting in unanticipated changes in our loan or<br>deposit rates, an unexpected adverse financial,<br>regulatory or bankruptcy event experienced by our<br>non-bank financial service partners, unanticipated<br>increases in FDIC costs, changes in regulations,<br>legislation or tax or accounting rules, monetary<br>and fiscal policies of the U.S. Government including<br>policies of the U.S. Treasury and the Board of<br>Governors of the Federal Reserve System, impacts<br>related to or resulting from recent bank failures, an<br>unexpected failure to successfully manage our<br>credit risk and the sufficiency of our allowance, the<br>credit and other risks from borrower and depositor<br>concentrations (by geographic area and by<br>industry), the current or anticipated impact of<br>military conflict, terrorism or other geopolitical<br>events, the costs, including possibly incurring fines,<br>penalties or other negative effects (including<br>reputational harm), of any adverse judicial,<br>administrative, or arbitral rulings or proceedings,<br>regulatory enforcement actions, or other legal<br>actions, a failure in or breach of the Company’s<br>operational or security systems or infrastructure,<br>including cyberattacks, the failure to maintain<br>current technologies, or to implement new<br>technologies, failure to maintain effective internal<br>control over financial reporting, failure to retain or<br>attract employees and unanticipated adverse<br>changes in our customers’ economic conditions or<br>general economic conditions, as well as those<br>discussed under the heading “Risk Factors” in our<br>Annual Report on Form 10-K.<br>Forward-looking statements speak only as of the<br>date of this presentation. We do not undertake any<br>obligation to update or revise any forward-looking<br>statement.<br>1 | ||
| --- | ||
| A Diversified Financial Institution<br>We are More than a Commercial Bank<br>How We Succeed<br>23-Years of Reliable Asset<br>Quality and Financial<br>Performance and Protection<br>• Organic business loan<br>origination platform.<br>• Core funded organic deposit<br>franchise.<br>• Helping our clients build and<br>sustain generational wealth<br>since 1999.<br>• "Safety and Soundness" and<br>"Safety and Stability" are<br>Priority One<br>Our Strategic Priorities<br>Safeguarding client<br>money is job one.<br>Enhance our position<br>as a leader in the<br>settlement of global<br>digital payments that<br>brings people around the<br>world closer together.<br>Be the critical financial<br>infrastructure for<br>select clients to access our<br>global payments settlement<br>platform.<br>Our Mission<br>To offer a full range of banking<br>and innovative financial<br>services to businesses and<br>individuals embracing an ever-evolving digital banking era.<br>Serve markets impacted by<br>the ever-consolidating financial<br>services industry<br>and advance our leading- edge<br>model that combines new<br>technologies with<br>the best of traditional<br>banking practices.<br>2 | ||
| --- | ||
| A Diversified Financial Institution<br>We are More than a Commercial Bank<br>Business Banking<br>• Our Business Bankers have deep knowledge and expertise in multiple industries, including law firms, resident<br>healthcare, real estate property management, U.S. Trustee and Municipalities.<br>• The Bank offers retail financial service products such as, but not limited to, checking, deposit, lending and cash<br>management products and services for small, middle-market and commercial businesses.<br>Commercial Lending and Commercial Real Estate Lending<br>• Commercial Lending group offers an array of commercial and industrial lending products providing our clients with<br>industry experience, applying flexible thinking to create custom lending solutions.<br>• Commercial Real Estate ("CRE") Lending group has proven track record of successfully navigating today's complex<br>real estate market, especially in highly attractive metropolitan and emerging U.S. markets, which provides our CRE<br>lending clients a distinct advantage.<br>Global Payments<br>Our Global Payments business provides services to non-bank financial service companies, including serving as an issuing<br>bank for third-party debit card programs, as well as providing other financial infrastructure, including cash settlement and<br>custodian deposit services.<br>Personal Banking<br>The Bank offers a white-glove concierge service and a full suite of digital banking services allowing clients to easily<br>manage their everyday financing needs.<br>3 | ||
| --- | ||
| Safeguarding, Priority One<br>“Safety and Soundness” and Industry Recognition<br>4<br>Capital at March 31, 2023<br>Metropolitan Bank Holding Corp. (the “Company”) and Metropolitan Commercial Bank (the<br>“Bank”) are well capitalized across all measures of regulatory capital, with a total risk-based<br>capital of 13.6% and 13.2%, respectively, at March 31, 2022. Well above regulatory minimums.<br>Liquidity and Asset Quality at March 31, 2023<br>• Total core deposit verticals were $4.9 billion, up $69.2 million from December 31, 2022.<br>• Insured deposits account for 71% of total deposits, up from 60% at December 31, 2022.<br>• Liquidity remains strong. Cash on deposit with the Federal Reserve Bank of New York and readily accessible secured funding<br>capacity totaled $3.1 billion, which is 208% of uninsured deposit balances.<br>• Asset quality remains strong. The commercial real estate portfolio, which includes owner-occupied CRE, is broadly diversified by<br>property type, with offices accounting for only 7% of the total loan portfolio, and the 53% average loan-to-value ratio of the<br>portfolio significantly mitigates credit risk.<br>Industry Recognition<br>• Kroll affirmed a BBB+ (investment grade) deposit rating on January 25, 2023.<br>• Is a member of the Piper Sandler Sm-All Stars Class of 2022.<br>• Was ranked in the top ten (9th of the 196 banks and thrifts eligible) of S&P Global Market Intelligence’s 2022 ranking of the best-performing community banks with assets between $3 billion and $10 billion.<br>• Was also ranked in the top ten (8th of the 447 banks and thrifts eligible) of S&P Global Market Intelligence’s 2022 ranking among<br>top-performing community banks in the Northeast region.<br>• Six consecutive Five Star ratings from Bauer Financial since Q3 2021. | ||
| --- | ||
| Proven High Growth Business Model<br>Loans<br>$ millions<br>$1,404 $1,661<br>$2,791<br>$3,830<br>$6,436<br>$5,278 $5,132<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>Deposits<br>$ millions<br>$63<br>$83<br>$108<br>$142<br>$181<br>$256<br>$66<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>Revenue<br>$ millions<br>$12<br>$26<br>$30<br>$39<br>$60 $59<br>$25<br>2017 2018 2019 2020 2021 2022* 1Q 2023**<br>Net Income<br>$ millions<br>1 CAGR from December 31, 2017 through March 31, 2023.<br>2 CAGR from December 31, 2017 through 2022.<br>* Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022.<br>** Includes a $2.5 million reversal of the regulatory settlement reserve.<br>$1,421<br>$1,867<br>$2,678<br>$3,137<br>$3,732<br>$4,841 $4,852<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>5 | ||
| --- | ||
| Sustained High Performance and Well Positioned<br>6<br>13.8%<br>3.1%<br>Metropolitan Commercial Bank KRX Index²<br>Revenue CAGR1<br>2017–2022<br>Tangible book value per share CAGR1<br>2017–2022<br>Earnings per share CAGR1<br>2017–2022<br>Source: FactSet, S&P Global Market Intelligence<br>1 CAGR from December 31, 2017 through December 31, 2022<br>2 KRX Index represents the KBW Regional Bank Index<br>* Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022<br>32.2%<br>8.6%<br>Metropolitan Commercial Bank KRX Index²<br>17.7%<br>11.9%<br>Metropolitan Commercial<br>Bank*<br>KRX Index² | ||
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| Delivering Financial Results<br>First Quarter Financial Highlights<br>Year-Over-Year<br>• Net income of $25.1 million, an increase of 31.8%.<br>• Diluted earnings per share of $2.25, an increase of 33.1%.<br>• Revenues1 of $65.5 million, an increase of 21.2%.<br>• Net interest income of $58.5 million, an increase of 25.5%.<br>• Net interest margin of 3.86%, an increase of 115 basis points, with an<br>average loan yield of 6.34% and total cost of funds of 1.83% for the first<br>quarter of 2023.<br>• Loans totaled $4.9 billion, an increase of 17.7%.<br>• Return on average equity of 17.2% and return on average tangible common<br>equity2 of 17.4%.<br>1 Total Revenues includes Net Interest Income and Non-Interest Income.<br>2 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 22.<br>3 CAGR from December 31, 2017 through December 31, 2022.<br>* Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022.<br>** Includes a $2.5 million reversal of the regulatory settlement reserve.<br>$60,013<br>$78,744<br>$102,596<br>$133,460<br>$164,253<br>$236,410<br>$60,658<br>$3,369<br>$4,640<br>$5,643<br>$8,464<br>$16,445<br>$19,341<br>$4,850<br>$65,508<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>$255,751<br>$83,384<br>$63,382<br>Total Revenues1<br>Full year, except 2023, which is for 1Q 2023 | $ thousands<br>$108,239<br>$141,924<br>$180,698<br>Global Payments<br>Group (“GPG”)<br>Revenues<br>Excluding GPG<br>$2,549 $3,291 $8,531 $6,097 $12,117 $19,021 $25,076<br>$2,651 $5,865<br>$6,057 $10,811<br>$13,336<br>$23,189<br>$3,845<br>$7,113<br>$7,683<br>$10,783<br>$16,215<br>$24,955<br>$3,324<br>$6,285<br>$7,863<br>$11,775<br>$18,887<br>-$7,740<br>2017 2018 2019 2020 2021 2022* 1Q 2023**<br>Quarterly Net Income<br>$ thousands<br>$12,369<br>$25,554<br>$30,134<br>$39,466<br>$60,555<br>$59,425<br>10.5% 10.8% 11.3% 12.9%<br>15.2%<br>10.4%<br>17.4%<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>ROATCE2<br>at March 31, 2023<br>7 | |
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| Loan Portfolio Growth and Diversification<br>1 Gross of deferred fees and unamortized costs.<br>2 Certain prior period amounts adjusted to conform to current presentation.<br>3 Excludes owner-occupied.<br>* Includes consumer and 1-4 family loans.<br>** Includes commercial real estate, multifamily and construction loans.<br>$4.9 billion Gross Loan Portfolio1, 2<br>at March 31, 2023 | $ millions<br>A Diversified Loan Portfolio<br>at March 31, 2023<br>40%<br>27%<br>19%<br>9%<br>3%<br>CRE (Non Owner Occupied)<br>CRE (Owner Occupied)<br>C&I<br>Multifamily<br>Construction<br>Other<br>$2,140 $2,239 $2,259 $2,388 $2,504 $2,527<br>$855<br>$1,085<br>$1,268<br>$1,296<br>$1,362 $1,319<br>$654<br>$724<br>$781<br>$869<br>$909 $936<br>$90<br>$82<br>$78<br>$76<br>$78 $83<br>$3,739<br>$4,130<br>$4,386<br>$4,629<br>$4,853 $4,865<br>4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023<br>Total loans: $4,865mm<br>Average 1Q Yield: 6.34%<br>CRE/RBC ratio3<br>: MCB 358%<br>8 | |
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| Commercial & Industrial Growth Driven by<br>Expertise in Specific Lending Verticals<br>Target Market<br>• Middle market businesses with annual revenue of $5<br>million to $200 million<br>• Well-diversified across industries<br>Key Metrics<br>• Strong historical credit performance<br>- Pledged collateral and/or personal guarantees from<br>high-net-worth individuals support most loans<br>- Target borrowers have strong historical cash flows, good<br>asset coverage and positive industry outlooks<br>C&I Composition<br>at March 31, 2023<br>25%<br>16%<br>15%<br>13%<br>11%<br>7%<br>6%<br>6%<br>25% Finance & Insurance<br>16% Individuals<br>15% Skilled Nursing Facilities<br>13% Healthcare<br>11% Retail<br>7% Services<br>6% Manufacturing<br>6% Wholesale<br>1% Other<br>1 Excluding deferred fees, unamortized costs and premiums.<br>9<br>C&I Portfolio1<br>at March 31, 2023<br>$184 $203 $230 $236 $229 $234<br>$60<br>$110 $123 $148 $176 $150 $102<br>$97<br>$106 $111 $119 $138<br>$106<br>$114<br>$107<br>$116 $100 $117<br>$70<br>$60<br>$93<br>$92 $102 $103<br>$121<br>$131<br>$116<br>$163 $179 $191<br>$643<br>$715<br>$775<br>$866<br>$905 $933<br>4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023<br>Other<br>Retail<br>Healthcare<br>Skilled Nursing<br>Facilities<br>Individuals<br>Finance & Insurance | ||
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| Relationship-Based<br>Commercial Real Estate Lending<br>Target Market<br>• New York metropolitan area real estate entrepreneurs<br>with a net worth in excess of $50 million<br>• Primarily concentrated in the New York MSA<br>• Well-diversified across multiple property types<br>Key Metrics<br>• Weighted average LTV of 60%<br>• Multifamily loans – 36% rent regulated<br>• Average LTV of 41% on stabilized rent regulated properties<br>provides a cushion against any falling values<br>Composition by Type at March 31, 2023 Composition by Region at March 31, 2023<br>19%<br>17%<br>10%<br>11%<br>8%<br>6%<br>5%<br>4%<br>18%<br>19% Manhattan<br>17% Brooklyn<br>10% Queens<br>11% Florida<br>8% Bronx<br>6% New Jersey<br>5% Long Island<br>4% Other NY<br>1% Staten Island<br>1% Connecticut<br>18% Other States<br>Majority of loans are originated through direct relationships or referrals from existing clients.<br>31%<br>12%<br>10%<br>10%<br>10%<br>8%<br>7%<br>4%<br>3% 4%<br>31% Nursing Home CRE<br>12% Multifamily<br>10% Other CRE<br>10% Office<br>10% Mixed Use<br>8% Retail<br>7% Hospitality<br>4% Land<br>3% Construction<br>4% Warehouse<br>1% 1-4 Family<br>Total CRE loans: $3,839mm1<br>Owner Occupied: 27%<br>1 Net of deferred fees and unamortized costs.<br>10 | ||
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| Well-Developed, Sector Diversified<br>Healthcare Portfolio<br>• Active in Healthcare lending since 2002<br>• CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 72%<br>• Highly selective regarding the quality of Skilled Nursing Operators that we<br>finance<br>• Borrowers typically have over 1,000 beds under management<br>• Loans are made primarily in “certificate of need” states which limits the<br>supply of beds and supports stable occupancy rates.<br>• Stabilized SNF – 69% of CRE SNF portfolio. Stabilized facility provides<br>adequate cash flows to support debt service and collateral value. Borrowers’<br>primary motive for acquisition of a stabilized property is for synergies with<br>existing portfolio of SNFs. Average debt service coverage ratio is 2.64x.<br>• Non-stabilized SNF – typically “turn-around” older SNFs acquired from<br>owners who mismanaged the business, relied too heavily on long-term<br>care (Medicaid reimbursement) or did not stay current with changes in the<br>marketplace. Opportunity for owner to create value by renovating and<br>adding services with higher Medicaid reimbursements rates (rehabilitation<br>services, dialysis, etc.).<br>C&I Healthcare Composition at March 31, 2023<br>54%<br>19%<br>13%<br>3%<br>4%<br>6% 54% Nursing & Residential<br>Care Facilities<br>19% Ambulatory Health Care<br>Services<br>13% Medical Labs<br>3% Ambulance Services<br>4% Doctor Office<br>1% Offices and Clinics of<br>Dentists<br>6% Misc. Health Practitioners<br>CRE SNF - $1.176 bn<br>C&I SNF - $138 mm<br>C&I Other Healthcare - $117 mm<br>CRE SNF<br>$1,176 mm<br>C&I SNF<br>$138 mm<br>C&I Other<br>$117 mm<br>Diversified Healthcare Portfolio at March 31, 2023<br>Total Healthcare loans:<br>$1,431mm<br>11 | ||
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| Well-Developed, Geographically Diversified<br>Skilled Nursing Facility Portfolio<br>CRE Skilled Nursing Facility Exposure by State<br>at March 31, 2023<br>C&I Skilled Nursing Facility Exposure by State<br>at March 31, 2023<br>34%<br>26%<br>9%<br>7%<br>6%<br>18%<br>34% New York<br>26% Florida<br>9% New Jersey<br>7% Virginia<br>6% Indiana<br>18% Other States<br>28%<br>15% 24%<br>8%<br>6%<br>5%<br>14% 28% New York<br>24% Florida<br>15% New Jersey<br>8% Pennsylvania<br>6% District of Columbia<br>5% Indiana<br>14% Other<br>12 | ||
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| Well-Structured, Geographically Diversified<br>Office Portfolio<br>Office Exposure by Region<br>at March 31, 2023<br>37%<br>7% 16%<br>26%<br>12%<br>37% Manhattan<br>16% Brooklyn<br>7% Queens<br>2% Bronx<br>26% New York Metropolitan<br>Area (outside NYC)<br>12% Non New York<br>Metropolitan Area<br>Office Overview<br>at March 31, 2023<br>• Well structured with conservative weighted average LTV of 53%<br>• Average occupancy rate of 82%*<br>• Average debt service coverage ratio of 1.55x*<br>• Total exposure originated since March 2022 is 56%<br>• Manhattan exposure originated since March 2022 is 99%<br>• Owner-occupied represents 13%<br>• Recourse for 28% of outstanding balance<br>13<br>* Excluding owner-occupied office properties.<br>Total Office loans: $361mm Occupancy by Region<br>at March 31, 2023<br>67%<br>86%<br>61%<br>87%<br>82%<br>83%<br>Non NY Metro Area<br>NY Metro Area<br>(outside NYC)<br>Bronx<br>Queens<br>Brooklyn<br>Manhattan | ||
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| $1,501 $1,492 $1,529 $1,654 $1,833 $1,956<br>$736 $734<br>$862<br>$894<br>$869<br>$995<br>$1,121 $1,129<br>$1,041<br>$941<br>$840<br>$850<br>$495 $481<br>$545<br>$707 $747<br>$699<br>$934 $930<br>$888<br>$714 $425<br>$332<br>$127 $69<br>$65 $60<br>$70 $21<br>$4,915 $4,835<br>$4,930 $4,970<br>$4,784 $4,853<br>4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023<br>Specialty Deposits*<br>Bankruptcy Trustees<br>Non-bank Financial<br>Service Companies<br>Property Managers<br>Retail Deposits with Loan<br>Customers<br>Retail Deposits<br>41%<br>58%<br>1% 41% Non-interest-bearing<br>demand deposits<br>58% Money market &<br>savings account<br>1% Time deposits<br>1Q Cost of total<br>deposits: 1.72%<br>Deposit Composition<br>1 Commonly referred to as the "crypto related business."<br>* Includes accounts related to liquidation, receivership, and litigation settlement.<br>Core Deposit Verticals Composition Over Time<br> | $ millions<br>Total Deposits<br> | $ millions<br>$4,915 $4,835 $4,930 $4,970 $4,784 $4,853<br>$1,520 $1,104 $1,248 $762 $494 $278<br>$6,435<br>$5,939 $6,178<br>$5,732<br>$5,278 $5,132<br>4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023<br>Digital<br>Currency<br>Businesses¹<br>Core Deposit<br>Verticals<br>Deposits Composition<br>at March 31, 2023<br>14 |
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| Digital Payments Worldwide<br>Global Payments Group<br>• Domestic and international digital payments settlements<br>• Gateway to payment networks – Wire, ACH, Visa, Mastercard, Remittance<br>• Custodian of deposits on behalf of clients and their customers<br>• Sponsorship for select clients as an extension of MCB’s expertise and legal<br>authority e.g., money transmitter, issuing bank, acquiring bank, lending activities<br>• Oversight by experienced MCB bankers with the expertise to deploy and manage<br>regulatory compliance across a broad spectrum of client sectors for non-bank<br>financial service companies<br>• A leading national issuer of third-party debit cards<br>• In addition to reported revenues, GPG also contributed average non-interest<br>bearing deposits of $4.85 million in the first quarter.<br>About Global Payments<br>$4,628 $5,358<br>$7,331 $8,823 $10,006<br>$3,527<br>$12 $285<br>$1,133<br>$7,622<br>$9,335<br>$1,323<br>$4,640 $5,643<br>$8,464<br>$16,445<br>$19,341<br>$4,850<br>2018 2019 2020 2021 2022 1Q 2023<br>Digital Currency<br>Businesses²<br>Non-bank<br>financial service<br>companies**<br>GPG Revenue<br> | $ thousands<br>Global Payments Group Revenue as a<br>% of Total Bank Non-Interest Income<br>38% 53% 50% 69% 73%<br>1 CAGR from December 31, 2018 through 2022.<br>2 Commonly referred to as the "crypto related business."<br>** Does not include digital currency businesses.<br>38.60 42.30<br>51.08 53.31<br>63.80<br>18.28<br>3.46<br>39.23<br>43.94<br>6.26<br>38.60 42.30<br>54.54<br>92.54<br>107.74<br>24.54<br>2018 2019 2020 2021 2022 1Q 2023<br>Digital Currency<br>Businesses²<br>Non-bank<br>financial service<br>companies**<br>GPG Transactions<br> | Millions<br>15<br>70% |
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| 13.00 13.24 18.28<br>13.70 15.93<br>13.26<br>17.65<br>38.60<br>42.30<br>51.08 13.35<br>16.98 53.31<br>63.80<br>2018 2019 2020 2021 2022 Q1 2023<br>4Q<br>3Q<br>2Q<br>1Q<br>Digital Payments Worldwide<br>Global Payments Group<br>Non-bank financial service companies1<br>Client Transactions<br> | Millions<br>1 Does not include digital currency businesses.<br>2 Certain prior periods amounts have been reclassified for consistency with the current period presentation.<br>* CAGR from December 31, 2018 through 2022.<br>** General Purpose Re-Loadable (GPR).<br>*** Represents the percentage of total revenue from new clients who went live since 2021.<br>Non-bank financial service companies1<br>Revenue by Category2<br> | Thousands<br>$930 $997 $884<br>$791 $872<br>$782<br>$292<br>$373 $517<br>$512<br>$693<br>$673<br>$273 $122 $203<br>$104<br>$196<br>$226<br>$443 $444<br>$415 $809<br>$1,171<br>$1,678<br>$186 $182<br>$213<br>$328<br>$180<br>$168<br>$2,124 $2,118<br>$2,232<br>$2,544<br>$3,112<br>$3,527<br>4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023<br>Disbursements<br>Digital bank acct<br>Other<br>Corporate<br>Disbursement<br>GPR card**<br>12%*** 14%*** 13%*** 17%*** 15%***<br>16<br>19%*** |
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| Well Managed Net Interest Margin<br>1 Represents full-year NIM, except 2023, which represents annualized NIM for the three months ended March 31, 2023.<br>2 Represents effective average daily FRB funds rate.<br>Net Interest Margin Analysis<br>1.00%<br>1.83%<br>2.16%<br>0.36% 0.08%<br>1.68%<br>4.52%<br>3.52% 3.70% 3.46% 3.26%<br>2.77%<br>3.49%<br>3.86%<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>MCB Net Interest<br>Margin ("NIM")1<br>Average Fed<br>Funds Rate2<br>Estimated Sensitivity of Projected<br>Annualized Net Interest Income<br>as of March 31, 2023<br>Fixed vs. Floating Rate Loans<br>at March 31, 2023, for loans due after one year<br>Fixed<br>67%<br>Floating<br>33% 1.45%<br>0.96%<br>-1.52%<br>-3.36%<br>-200 bps -100 bps +100 bps +200 bps<br>Given the strength of our core deposit<br>verticals and overall asset sensitivity, we<br>are well- positioned to benefit from a<br>rising interest rate environment as we<br>maintain our margin management<br>discipline.<br>Approximately 79% of floating rate<br>loans have floors – Weighted average<br>floor of 4.85%<br>17 | ||
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| Highly Profitable, Scalable Model<br>^ This represents the percentage of total non-interest income (less any gains on sale of securities) as compared to total revenue.<br>1 Non-GAAP financial measures. See reconciliation on slide 22.<br>2 Total non-interest expense divided by Total revenues.<br>* Annualized<br>** Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022.<br>*** Annualized and includes a $2.5 million reversal of the regulatory settlement reserve.<br>17.8%<br>14.7%<br>9.8% 9.7%<br>12.8%<br>10.4% 10.7%<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>Non-Interest Income ratio1,^<br>Efficiency ratio2<br>10.5% 10.8% 11.3%<br>12.9%<br>15.2%<br>10.4%<br>17.9%<br>2017 2018 2019 2020 2021 2022** 1Q 2023***<br>ROATCE1<br>52.1% 52.1%<br>55.4%<br>52.5%<br>48.3%<br>58.2%<br>47.4%<br>2017 2018 2019 2020 2021 2022** 1Q 2023<br>Net Interest Margin<br>3.52% 3.70%<br>3.46% 3.26%<br>2.77%<br>3.49%<br>3.86%<br>2017 2018 2019 2020 2021 2022 1Q 2023*<br>18 | ||
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| Credit Metrics<br>NCOs/Average Loans Non-Performing Loans/Loans<br>ACL/Loans Non-Performing Loans/ACL<br>0.32%<br>-0.06%<br>-0.13%<br>0.01%<br>0.13%<br>0.00% 0.01%<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>1.05% 1.02% 0.98%<br>1.13%<br>0.93% 0.93% 0.98%<br>2017 2018 2019 2020 2021 2022 1Q 2023*<br>0.24%<br>0.02%<br>0.17%<br>0.20%<br>0.28%<br>0.00%<br>0.50%<br>2017 2018 2019 2020 2021 2022 1Q 2023<br>22.8%<br>1.5%<br>17.1% 18.0%<br>29.6%<br>0.0% 0.1%<br>2017 2018 2019 2020 2021 2022 1Q 2023*<br>19<br>* Includes $2.3 million increase in ACL due to impact of CECL adoption on January 1, 2023. | ||
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| Capital ratios*<br>Common Equity Tier 1 Capital Ratio<br>18.4%<br>15.6%<br>11.8% 11.6%<br>14.4%<br>12.3% 12.3%<br>2017 2018 2019 2020 2021 2022** Q1 2023***<br>Minimum to be "Well Capitalized"<br>* These capital ratios are for Metropolitan Commercial Bank Only<br>** Includes a $35.0 million charge for a regulatory settlement reserve in the fourth quarter of 2022.<br>*** Includes a $2.5 million reversal of the regulatory settlement reserve.<br>1 Non-GAAP financial measure. See reconciliation to GAAP measure on slide 22.<br>Tier 1 Leverage Ratio<br>14.7% 14.7%<br>10.1%<br>9.0% 8.4%<br>10.0% 10.4%<br>2017 2018 2019 2020 2021 2022** Q1 2023***<br>Minimum to be "Well Capitalized"<br>19.4%<br>16.7%<br>12.7% 12.7%<br>15.2%<br>13.1% 13.2%<br>2017 2018 2019 2020 2021 2022** Q1 2023***<br>Minimum to be "Well Capitalized"<br>Total Risk-Based Capital Ratio TCE / TA1<br>12.7%<br>11.5%<br>8.5%<br>7.5% 7.7%<br>9.0% 9.5%<br>2017 2018 2019 2020 2021 2022** Q1 2023***<br>20 | ||
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| Appendix<br>21 | ||
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| Reconciliation of GAAP to Non-GAAP Measures<br>* Tangible common equity divided by common shares outstanding at period-end.<br>In addition to the results presented<br>in accordance with Generally<br>Accepted Accounting Principles<br>(“GAAP”), this earnings presentation<br>includes certain non-GAAP financial<br>measures. Management believes<br>these non-GAAP financial measures<br>provide meaningful information to<br>investors<br>in understanding the Company’s<br>operating performance and trends.<br>These non-GAAP measures have<br>inherent limitations and are not<br>required to be uniformly applied<br>and are not audited. They should<br>not be considered in isolation or as<br>a substitute for an analysis of results<br>reported under GAAP. These non-GAAP measures may not be<br>comparable to similarly titled<br>measures reported by other<br>companies. Reconciliations of non-GAAP/adjusted financial measures<br>disclosed in this earnings<br>presentation to the comparable<br>GAAP measures are provided in the<br>accompanying tables.<br>22<br>$ thousands, except per share data Q1 2023 2022 2021 2020 2019 2018 2017<br>Average assets $ 6,212,624 $ 6,621,631 $ 5,724,230 $ 3,863,013 $ 2,846,959 $ 1,951,982 $ 1,524,202<br>Less: average intangible assets $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733<br>Average tangible assets $ 6,202,891 $ 6,611,898 $ 5,714,497 $ 3,853,280 $ 2,837,226 $ 1,942,249 $ 1,514,469<br>Average equity $ 592,521 $ 578,787 $ 413,212 $ 320,617 $ 282,604 $ 251,030 $ 133,462<br>Less: Average preferred equity $ - $ - $ 4,585 $ 5,502 $ 5,502 $ 5,502 $ 5,502<br>Average common equity $ 592,521 $ 578,787 $ 408,627 $ 315,115 $ 277,102 $ 245,528 $ 127,960<br>Less: average intangible assets $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733<br>Average tangible common equity $ 582,788 $ 569,054 $ 398,894 $ 305,382 $ 267,369 $ 235,795 $ 118,227<br>Total assets $ 6,309,982 $ 6,267,337 $ 7,116,358 $ 4,330,821 $ 3,357,572 $ 2,182,644 $ 1,759,855<br>Less: intangible assets $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733<br>Tangible assets $ 6,300,249 $ 6,257,604 $ 7,106,625 $ 4,321,088 $ 3,347,839 $ 2,172,911 $ 1,750,122<br>Total Equity $ 607,887 $ 575,897 $ 556,989 $ 340,787 $ 299,124 $ 264,517 $ 236,884<br>Less: preferred equity $ - $ - $ - $ 5,502 $ 5,502 $ 5,502 $ 5,502<br>Common Equity $ 607,887 $ 575,897 $ 556,989 $ 335,285 $ 293,622 $ 259,015 $ 231,382<br>Less: intangible assets $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733 $ 9,733<br>Tangible common equity (book value) $ 598,154 $ 566,164 $ 547,256 $ 325,552 $ 283,889 $ 249,282 $ 221,649<br>Common shares outstanding $ 11,211,274 $ 10,949,965 $ 10,920,569 $ 8,295,272 $ 8,312,918 $ 8,217,274 $ 8,196,310<br>Book value per share (GAAP) $ 54.22 $ 52.59 51.00 40.42 35.32 31.52 28.23<br>Tangible book value per share (non-GAAP)* $ 53.35 $ 51.70 50.11 39.25 34.15 30.34 27.04<br>Total Revenue (GAAP) $ 65,508 $ 255,751 $ 180,698 $ 141,924 $ 108,239 $ 83,177 $ 63,382<br>Less: Gain on sale of securities $ - $ - $ 609 $ 3,286 $ - $ (37) $ -<br>Revenue excluding gain on sale of securities<br>(non-GAAP) $ 65,508 $ 255,751 $ 180,089 $ 138,638 $ 108,239 $ 83,214 $ 63,382<br>Non-Interest Income Ratio (non-GAAP) 10.65% 10.40% 12.78% 9.67% 9.82% 14.66% 17.83%<br>For Year Ending | ||
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