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 eventreported): April 21, 2021
METROPOLITAN BANK HOLDING CORP.
(Exact name of the registrant as specifiedin its charter)
| New York | 001-38282 | 13-4042724 |
|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS 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)
N/A
(Former name or former address, if changedsince 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 x
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 2.02 | Results of Operations and Financial Condition |
|---|
On April 21, 2021, Metropolitan Bank Holding Corp. (the “Company”), the holding company for Metropolitan Commercial Bank, issued a press release announcing its financial results for the three months ended March 31, 2021. 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 7.01 | Regulation FD Disclosure |
|---|
The Company has also made available on its website presentation materials containing additional information about the Company’s financial results for the three months ended March 31, 2021 (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 21, 2021 |
| 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<br> 21, 2021 | By: | /s/ Gregory A. Sigrist |
| Gregory A. Sigrist | ||
| Executive Vice President<br> and Chief Financial Officer |
Exhibit 99.1
212-365-6721
IR@MetropolitanBankNY.com
Metropolitan Bank Holding Corp. Reports NetIncome
of $12 Million and Diluted EPS of $1.43 forthe First Quarter
| v | Net income of $12 million for second sequential quarter sets the stage for robust earnings growth for 2021 |
|---|---|
| v | Continued strong momentum in core deposit growth, up 16% from year-end 2020, provides sustainable funding for increased loan production |
NEW YORK, April 21, 2021 – Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $12.1 million, or $1.43 per diluted common share, for the first quarter of 2021 compared to net income of $6.1 million, or $0.72 per diluted common share, for the first quarter of 2020.
Financial Highlights include:
| · | First quarter net income of $12.1 million, up 98.7% from the prior year quarter, and earnings per share<br>of $1.43 per share up 98.6% over same period. |
|---|---|
| · | Annualized return on average equity of 14.17% and an annualized return on average tangible common equity*<br>of 14.82%. |
| --- | --- |
| · | Total revenues** of $39.0 million, up 17.1% from the prior year period and 5.9% from the linked quarter,<br>reflecting continued strength from market positioning of our core franchise. |
| --- | --- |
| · | Total assets were up 13.7% from the linked quarter with net loan growth of $100.6 million, reflecting<br>a 12.8% annualized pace, on quarterly loan production of $235.7 million. |
| --- | --- |
| · | Deposits were up 15.6% from year-end 2020, driven by an increase of $441.8 million in non-interest-bearing<br>deposits; non-interest-bearing deposits were 49.0% of total deposits at quarter-end, from 45.1% at year-end 2020. |
| --- | --- |
| · | Total average cost of funds decreased by 1 basis point from the linked quarter to 35 basis points. Annualized<br>net interest margin of 3.00% was down 21 basis points during the same period, primarily due to strong core deposit growth driving increased<br>overnight liquidity. |
| --- | --- |
* Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.
**Total revenues equals the sum of net interest income and non-interest income.
1
| · | Asset quality remained strong with non-performing loans at 17 basis points of total loans, down 3 basis<br>points from the linked quarter. Loan loss provision of $950,000 in the quarter was commensurate with net loan growth. |
|---|---|
| · | Full payment deferrals related to the Coronavirus pandemic (“COVID-19”) were $27.9 million,<br>or 0.9% of the total loan portfolio as of March 31, 2021, while principal-only payment deferrals were $37.4 million, or 1.2% of the total<br>loan portfolio at the same date. |
| --- | --- |
| · | Non-interest expenses were $20.3 million, up 4.1% compared to the first quarter of 2020. The efficiency<br>ratio was 52.1%, as compared to 58.6% for the first quarter of 2020. |
| --- | --- |
Mark R. DeFazio, President and Chief Executive Officer commented, “MCB’s unwavering focus transformed the unprecedented challenges of 2020 into a record year and a launching pad for 2021. I am very pleased with our first quarter results. Our momentum has set the stage for a strong, efficient balance sheet build which will allow for sustainable earnings for years to come. Our core funding strategies continue to generate low cost, stable liquidity to fund our organic loan growth. Loan yields, together with low-cost funding, will maintain our margin management discipline. Asset quality continues to perform as it has over the past 20 + years of organic growth. As reported, pandemic-related loan deferrals are winding down with no evidence of loss to date.
“The markets in which we do business are reopening, and we are seeing a positive trend of new business activity, especially in New York City. While we operate in diverse markets, we are very confident in our exposure in Manhattan and in the greater New York area. A benefit of our organic loan production platform is the direct communication with our clients, allowing us to discuss both challenges and opportunities as they evolve in the marketplace. This platform places MCB in the best position to address challenges quickly and to assist our clients in taking advantage of the opportunities.
“I am also very encouraged by the sustained performance of our Global Payments Group. As our fintech clients continue to take market share from banks, we are well positioned to continue to provide the requisite financial infrastructure to support their growth. We are very confident in GPG’s ability as a global payment settlement provider to contribute low-cost funding and non-interest income in a very scalable and efficient manner.
Lastly, I want to thank our staff and board of directors for their dedication to MCB and our clients. I would also like to thank our clients, who have been very active and have demonstrated their support for MCB’s sustained success over the past 20 years,” Mr. DeFazio concluded.
Balance Sheet
The Company had total assets of $4.92 billion at March 31, 2021, an increase of 13.7% from December 31, 2020. Total loans before deferred fees increased to $3.24 billion at March 31, 2021, as compared to $3.14 billion at December 31, 2020. The increase in total loans from December 31, 2020 was due primarily to an increase of $114.6 million in commercial real estate (“CRE”) loans, including construction and multifamily loans, offset by net paydowns and amortization of $4.9 million in 1-4 family loans, $4.5 million in consumer loans and $4.4 million in commercial and industrial (“C&I”) loans. For the first quarter of 2021, the Bank’s loan production was $235.7 million, as compared to $174.0 million and $152.6 for the linked quarter and the first quarter of 2020, respectively.
Total cash and cash equivalents was $1.14 billion at March 31, 2021, an increase of 31.3% from December 31, 2020. The increase in cash and cash equivalents reflect the strong growth in deposits of $597.1 million that exceeded growth in loans of $100.6 million for the first quarter of 2021. Total securities, primarily those classified as available-for-sale (“AFS”), was $484.8 million at March 31, 2021, an increase of 78.8% from December 31, 2020.
2
Total deposits increased to $4.43 billion at March 31, 2021, up 15.6% from $3.83 billion at December 31, 2020. The increase in deposits for the first quarter of 2021 was due to increases of $441.8 million in non-interest-bearing deposits and $155.3 million in interest-bearing deposits, resulting from increases across most deposit verticals. Non-interest-bearing deposits were 49.0% of total deposits at March 31, 2021, as compared to 45.1% at December 31, 2020.
The Company and the Bank each meet all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 426.5% and 412.5% of total risk-based capital at March 31, 2021 and December 31, 2020, respectively.
Income Statement
Financial Highlights
| Three months ended March 31, | Three months ended<br><br> December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2020 | |||||||
| Total Revenues | $ | 39,017 | $ | 33,309 | $ | 36,840 | |||
| Net income | 12,117 | 6,097 | 11,775 | ||||||
| Diluted earnings per common share | 1.43 | 0.72 | 1.39 | ||||||
| Annualized return on average assets | 1.05 | % | 0.71 | % | 1.13 | % | |||
| Annualized return on average equity | 14.17 | % | 8.00 | % | 13.94 | % | |||
| Annualized return on average tangible common equity* | 14.82 | % | 8.33 | % | 14.61 | % |
*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.
Net Interest Income
Net interest income for the first quarter of 2021 was $34.4 million, an increase of $955,000 from the linked quarter. This increase was primarily due to a higher average balance of $4.63 billion in interest-earning assets for the first quarter of 2021, which increased $511.1 million from the linked quarter, partially offset by an increase of $88.6 million in average interest-bearing liabilities, which were $2.19 billion for the first quarter of 2021, as compared to $2.10 billion for the linked quarter.
Net interest income increased $5.4 million for first quarter of 2021, as compared to the first quarter of 2020, primarily due to an increase of $1.21 billion in the average balance of interest-earning assets for the first quarter of 2021, as compared to the first quarter of 2020. This was partially offset by a $259.1 million increase in the average balance of interest-bearing liabilities for the first quarter of 2021, as compared to the first quarter of 2020.
Net InterestMargin
Net interest margin decreased by 21 basis points to 3.00% for the first quarter of 2021, as compared to 3.21% for the linked quarter, primarily due to increased overnight deposits driven by strong deposit growth. Additionally, the average cost of interest-bearing deposits increased by 4 basis points to 0.60% for the first quarter of 2021, as compared to 0.56% for the linked quarter, primarily due to an increase in reciprocal sweep deposits.
Net interest margin decreased by 38 basis points for the first quarter of 2021 as compared to 3.38% for the first quarter of 2020, primarily due to increased overnight deposits driven by deposit growth; partially offset by a decrease in the average cost of interest-bearing liabilities driven by the lower rate environment.
Non-Interest Income
Non-interest income was $4.6 million for the first quarter of 2021, an increase of $1.2 million from the linked quarter driven primarily by Global Payments Group, which continues to see strong increases in client transaction volumes driving revenue growth along with contractual fee recognition, which represented approximately 15% of non-interest income in the first quarter of 2021.
3
Non-interest income for the first quarter of 2021 increased slightly by $255,000, as compared to the first quarter of 2020. The increase was primarily due to an increase of $1.6 million of global payments revenue, partially offset by a gain of $975,000 recognized on sale of AFS securities in the first quarter of 2020.
Non-Interest Expense
Non-interest expense was $20.3 million for the first quarter of 2021, an increase of $2.5 million from the linked quarter. The primary driver was a $1.6 million increase in compensation and benefits expense, of which approximately $1.3 million was related to elevated first quarter employer expenses, including FICA expense and severance costs.
Non-interest expense increased $807,000 for the first quarter of 2021, as compared to the first quarter of 2020. Drivers included an increase in compensation and benefits cost due to addition of 21 full-time employees along with annual salary adjustments and increases in other expenses in line with business expansion, partially offset by a reduction in premises and equipment related to completion of the corporate office move and reduced licensing fees given the LIBOR rate reduction.
Asset Quality
Non-performing loans were $5.5 million at March 31, 2021, a decrease of $925,000 from December 31, 2020. The decrease was primarily due to the charge-off of two C&I loans in the amount of $855,000, all of which was reserved for at December 31, 2020. The Bank’s ratio of non-performing loans to total loans was 0.17% at March 31, 2021.
The provision for loan losses for the first quarter of 2021 was $950,000, a decrease of $845,000 from the linked quarter. This was primarily due to lower net loan growth in the first quarter of 2021, as compared to the linked quarter, as well as higher specific reserves recorded in the linked quarter for certain C&I and consumer loans.
| (dollars in thousands) | March 31, 2021 | December 31, 2020 | ||||
|---|---|---|---|---|---|---|
| Non-performing loans: | ||||||
| Non-accrual loans: | ||||||
| Commercial and industrial | 3,337 | 4,192 | ||||
| Consumer | 1,523 | 1,428 | ||||
| Total non-accrual loans | $ | 4,860 | $ | 5,620 | ||
| Accruing loans 90 days or more past due | 604 | 769 | ||||
| Total non-performing loans | $ | 5,464 | $ | 6,389 | ||
| Non-accrual loans as % of loans outstanding | 0.15 | % | 0.18 | % | ||
| Non-performing loans as % of loans outstanding | 0.17 | % | 0.20 | % | ||
| Allowance for loan losses | $ | (35,502 | ) | $ | (35,407 | ) |
| Allowance for loan losses as % of loans outstanding | 1.10 | % | 1.13 | % |
| Three months ended | ||||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | March 31, 2021 | December 31, 2020 | ||||
| Provision for loan losses | $ | 950 | $ | 1,795 | ||
| Charge-offs | $ | (855 | ) | $ | (30 | ) |
| Recoveries | $ | — | $ | 28 | ||
| Net charge-offs/(recoveries) as % of average loans (annualized) | 0.11 | % | 0.00 | % |
4
About Metropolitan Bank Holding Corporation
Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank. The Bank provides a broad range of business, commercial and personal banking products and services to small and middle-market businesses, public entities and affluent individuals in the New York metropolitan area. Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island. The Bank is also an active issuer of debit cards for third-party debit card programs and provides critical global payments infrastructure to its FinTech partners. Metropolitan Commercial Bank is a New York State chartered commercial bank and a Federal Reserve System member bank whose deposits are insured up to applicable limits by the FDIC, and an equal opportunity lender. For more information, please visit www.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 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 an unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth and our ability to manage such growth, unanticipated regulatory action, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel, an unanticipated loss of existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in Federal Deposit Insurance Corporation costs, changes in regulations, legislation or accounting rules and unanticipated adverse changes in our customers’ economic conditions or economic conditions in our local area in general, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our cyber security risks may increase if a significant number of our employees are forced to working remotely; and FDIC premiums may increase if the agency experiences additional resolution costs.
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.
5
Consolidated Balance Sheet
| (Dollars in thousands) | March 31, 2021 | December 31, 2020 | ||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and due from banks | $ | 9,432 | $ | 8,692 | ||
| Overnight deposits | 1,125,589 | 855,613 | ||||
| Total cash and cash equivalents | 1,135,021 | 864,305 | ||||
| Investment securities available for sale | 479,988 | 266,096 | ||||
| Investment securities held to maturity | 2,492 | 2,760 | ||||
| Investment securities -- Equity investments | 2,281 | 2,313 | ||||
| Total securities | 484,761 | 271,169 | ||||
| Other investments | 11,638 | 11,597 | ||||
| Loans, net of deferred fees and unamortized costs | 3,237,664 | 3,137,053 | ||||
| Allowance for loan losses | (35,502 | ) | (35,407 | ) | ||
| Net loans | 3,202,162 | 3,101,646 | ||||
| Receivable from prepaid card programs, net | 38,356 | 27,259 | ||||
| Accrued interest receivable | 13,982 | 13,249 | ||||
| Premises and equipment, net | 13,756 | 13,475 | ||||
| Prepaid expenses and other assets | 13,392 | 18,388 | ||||
| Goodwill | 9,733 | 9,733 | ||||
| Total assets | $ | 4,922,801 | $ | 4,330,821 | ||
| Liabilities and Stockholders' Equity | ||||||
| Deposits: | ||||||
| Non-interest-bearing demand deposits | $ | 2,167,899 | $ | 1,726,135 | ||
| Interest-bearing deposits | 2,258,818 | 2,103,471 | ||||
| Total deposits | 4,426,717 | 3,829,606 | ||||
| Federal Home Loan Bank of New York advances | — | — | ||||
| Trust preferred securities | 20,620 | 20,620 | ||||
| Subordinated debt, net of issuance cost | 24,670 | 24,657 | ||||
| Secured Borrowings | 36,475 | 36,964 | ||||
| Accounts payable, accrued expenses and other liabilities | 42,737 | 61,645 | ||||
| Accrued interest payable | 563 | 712 | ||||
| Prepaid third-party debit cardholder balances | 22,802 | 15,830 | ||||
| Total liabilities | 4,574,584 | 3,990,034 | ||||
| Class B preferred stock | 3 | 3 | ||||
| Common stock | 83 | 82 | ||||
| Additional paid in capital | 217,384 | 218,899 | ||||
| Retained earnings | 132,947 | 120,830 | ||||
| Accumulated other comprehensive gain, net of tax effect | (2,200 | ) | 973 | |||
| Total stockholders’ equity | 348,217 | 340,787 | ||||
| Total liabilities and stockholders’ equity | $ | 4,922,801 | $ | 4,330,821 |
6
Consolidated Statement of Income (unaudited)
| Quarter ended Mar. 31, | Quarter ended Dec. 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except per share data) | 2021 | 2020 | 2020 | |||||
| Total interest income | $ | 38,106 | $ | 36,067 | $ | 36,862 | ||
| Total interest expense | 3,684 | 7,098 | 3,395 | |||||
| Net interest income | 34,422 | 28,969 | 33,467 | |||||
| Provision for loan losses | 950 | 4,790 | 1,795 | |||||
| Net interest income after provision for loan losses | 33,472 | 24,179 | 31,672 | |||||
| Non-interest income: | ||||||||
| Service charges on deposit accounts | 1,065 | 1,081 | 981 | |||||
| Global payments revenue | 3,267 | 1,621 | 2,163 | |||||
| Other service charges and fees | 304 | 627 | 236 | |||||
| Unrealized (loss) gain on equity securities | (41 | ) | 36 | (7 | ) | |||
| Gain on sale of securities | — | 975 | — | |||||
| Total non-interest income | 4,595 | 4,340 | 3,373 | |||||
| Non-interest expense: | ||||||||
| Compensation and benefits | 11,428 | 9,960 | 9,835 | |||||
| Bank premises and equipment | 2,024 | 2,500 | 1,842 | |||||
| Professional fees | 1,304 | 955 | 1,064 | |||||
| Licensing fees and technology costs | 3,001 | 3,806 | 2,814 | |||||
| Other expenses | 2,566 | 2,295 | 2,233 | |||||
| Total non-interest expense | 20,323 | 19,516 | 17,788 | |||||
| Net income before income tax expense | 17,744 | 9,003 | 17,257 | |||||
| Income tax expense | 5,627 | 2,906 | 5,482 | |||||
| Net income | $ | 12,117 | $ | 6,097 | $ | 11,775 | ||
| Earnings per common share: | ||||||||
| Average common shares outstanding - basic | 8,276,174 | 8,215,959 | 8,225,083 | |||||
| Average common shares outstanding - diluted | 8,417,319 | 8,412,782 | 8,417,729 | |||||
| Basic earnings | $ | 1.46 | $ | 0.73 | $ | 1.42 | ||
| Diluted earnings | $ | 1.43 | $ | 0.72 | $ | 1.39 |
7
Net Interest Margin Analysis
| Three months ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | December 31, 2020 | |||||||||||||||
| Average | Average | |||||||||||||||
| Outstanding | Yield/Rate | Outstanding | Yield/Rate | |||||||||||||
| (dollars in thousands) | Balance | Interest | (annualized) | Balance | Interest | (annualized) | ||||||||||
| Assets: | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans ^(1)^ | $ | 3,187,450 | $ | 36,840 | 4.67 | % | $ | 3,070,850 | $ | 35,843 | 4.62 | % | ||||
| Available-for-sale securities | 330,451 | 752 | 0.91 | % | 230,080 | 573 | 0.97 | % | ||||||||
| Held-to-maturity securities | 2,623 | 11 | 1.71 | % | 2,906 | 12 | 1.65 | % | ||||||||
| Equity investments - non-trading | 2,302 | 8 | 1.39 | % | 2,294 | 9 | 1.46 | % | ||||||||
| Overnight deposits | 1,100,690 | 344 | 0.13 | % | 806,602 | 280 | 0.14 | % | ||||||||
| Other interest-earning assets | 11,610 | 151 | 5.27 | % | 11,336 | 145 | 5.09 | % | ||||||||
| Total interest-earning assets | 4,635,126 | 38,106 | 3.32 | % | 4,124,068 | 36,862 | 3.54 | % | ||||||||
| Non-interest-earning assets | 69,894 | 63,962 | ||||||||||||||
| Allowance for loan and lease losses | (35,969 | ) | (34,122 | ) | ||||||||||||
| Total assets | $ | 4,669,051 | $ | 4,153,908 | ||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Money market, savings and other interest-bearing accounts | $ | 2,058,611 | $ | 2,907 | 0.57 | % | $ | 1,962,417 | $ | 2,554 | 0.52 | % | ||||
| Certificates of deposit | 86,902 | 264 | 1.23 | % | 94,546 | 327 | 1.38 | % | ||||||||
| Total interest-bearing deposits | 2,145,513 | 3,171 | 0.60 | % | 2,056,963 | 2,881 | 0.56 | % | ||||||||
| Borrowed funds | 45,282 | 513 | 4.53 | % | 45,268 | 514 | 4.44 | % | ||||||||
| Total interest-bearing liabilities | 2,190,795 | 3,684 | 0.68 | % | 2,102,231 | 3,395 | 0.64 | % | ||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||
| Non-interest-bearing deposits | 2,067,539 | 1,636,417 | ||||||||||||||
| Other non-interest-bearing liabilities | 63,932 | 79,320 | ||||||||||||||
| Total liabilities | 4,322,266 | 3,817,968 | ||||||||||||||
| Stockholders' Equity | 346,785 | 335,940 | ||||||||||||||
| Total liabilities and equity | $ | 4,669,051 | $ | 4,153,908 | ||||||||||||
| Net interest income | $ | 34,422 | $ | 33,467 | ||||||||||||
| Net interest rate spread ^(2)^ | 2.64 | % | 2.90 | % | ||||||||||||
| Net interest-earning assets | $ | 2,444,331 | $ | 2,021,837 | ||||||||||||
| Net interest margin ^(3)^ | 3.00 | % | 3.21 | % | ||||||||||||
| Total cost of funds ^(4)^ | 0.35 | % | 0.36 | % |
| (1) | Amount includes deferred loan fees and non-performing loans. |
|---|---|
| (2) | Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from<br>the annualized weighted average yield on total interest-earning assets. |
| (3) | Determined by dividing annualized net interest income by total average interest-earning assets. |
| (4) | Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities<br>and total average non-interest-bearing deposits. |
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| Three months ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | March 31, 2020 | |||||||||||||||
| Average | Average | |||||||||||||||
| Outstanding | Yield/Rate | Outstanding | Yield/Rate | |||||||||||||
| (dollars in thousands) | Balance | Interest | (annualized) | Balance | Interest | (annualized) | ||||||||||
| Assets: | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans ^(1)^ | $ | 3,187,450 | $ | 36,840 | 4.67 | % | $ | 2,705,710 | $ | 32,827 | 4.85 | % | ||||
| Available-for-sale securities | 330,451 | 752 | 0.91 | % | 219,883 | 1,343 | 2.42 | % | ||||||||
| Held-to-maturity securities | 2,623 | 11 | 1.71 | % | 3,622 | 17 | 1.86 | % | ||||||||
| Equity investments - non-trading | 2,302 | 8 | 1.39 | % | 2,263 | 12 | 2.10 | % | ||||||||
| Overnight deposits | 1,100,690 | 344 | 0.13 | % | 470,638 | 1,593 | 1.36 | % | ||||||||
| Other interest-earning assets | 11,610 | 151 | 5.27 | % | 21,441 | 275 | 5.07 | % | ||||||||
| Total interest-earning assets | 4,635,126 | 38,106 | 3.32 | % | 3,423,557 | 36,067 | 4.22 | % | ||||||||
| Non-interest-earning assets | 69,894 | 57,567 | ||||||||||||||
| Allowance for loan and lease losses | (35,969 | ) | (26,789 | ) | ||||||||||||
| Total assets | $ | 4,669,051 | $ | 3,454,335 | ||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Money market, savings and other interest-bearing accounts | $ | 2,058,611 | $ | 2,907 | 0.57 | % | $ | 1,638,362 | $ | 5,171 | 1.27 | % | ||||
| Certificates of deposit | 86,902 | 264 | 1.23 | % | 104,067 | 596 | 2.30 | % | ||||||||
| Total interest-bearing deposits | 2,145,513 | 3,171 | 0.60 | % | 1,742,429 | 5,767 | 1.33 | % | ||||||||
| Borrowed funds | 45,282 | 513 | 4.53 | % | 189,226 | 1,331 | 2.78 | % | ||||||||
| Total interest-bearing liabilities | 2,190,795 | 3,684 | 0.68 | % | 1,931,655 | 7,098 | 1.48 | % | ||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||
| Non-interest-bearing deposits | 2,067,539 | 1,157,270 | ||||||||||||||
| Other non-interest-bearing liabilities | 63,932 | 58,923 | ||||||||||||||
| Total liabilities | 4,322,266 | 3,147,848 | ||||||||||||||
| Stockholders' Equity | 346,785 | 306,487 | ||||||||||||||
| Total liabilities and equity | $ | 4,669,051 | $ | 3,454,335 | ||||||||||||
| Net interest income | $ | 34,422 | $ | 28,969 | ||||||||||||
| Net interest rate spread ^(2)^ | 2.64 | % | 2.74 | % | ||||||||||||
| Net interest-earning assets | $ | 2,444,331 | $ | 1,491,902 | ||||||||||||
| Net interest margin ^(3)^ | 3.00 | % | 3.38 | % | ||||||||||||
| Total cost of funds ^(4)^ | 0.35 | % | 0.92 | % |
| (1) | Amount includes deferred loan fees and non-performing loans. |
|---|---|
| (2) | Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from<br>the annualized weighted average yield on total interest-earning assets. |
| (3) | Determined by dividing annualized net interest income by total average interest-earning assets. |
| (4) | Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities<br>and total average non-interest-bearing deposits. |
9
Summaryof Income and Performance Measures
Five Quarter Trend (unaudited)
| Quarter Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | Mar. 31, 2020 | ||||||||||
| Net interest income | $ | 34,422 | $ | 33,467 | $ | 32,324 | $ | 30,161 | $ | 28,969 | |||||
| Provision for loan losses | 950 | 1,795 | 1,137 | 1,766 | 4,790 | ||||||||||
| Net interest income after provision for loan losses | 33,472 | 31,672 | 31,187 | 28,395 | 24,179 | ||||||||||
| Non-interest income | 4,595 | 3,373 | 3,637 | 5,653 | 4,340 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Compensation and benefits | 11,428 | 9,835 | 9,944 | 10,058 | 9,960 | ||||||||||
| Other Expense | 8,895 | 7,953 | 8,986 | 8,226 | 9,556 | ||||||||||
| Total non-interest expense | 20,323 | 17,788 | 18,930 | 18,284 | 19,516 | ||||||||||
| Income before income tax expense | 17,744 | 17,257 | 15,894 | 15,764 | 9,003 | ||||||||||
| Income tax expense | 5,627 | 5,482 | 5,111 | 4,953 | 2,906 | ||||||||||
| Net income | 12,117 | 11,775 | 10,783 | 10,811 | 6,097 | ||||||||||
| Pre-tax, pre-provision income* | $ | 18,694 | $ | 19,052 | $ | 17,031 | $ | 17,530 | $ | 13,793 | |||||
| Performance Measures: | |||||||||||||||
| Net income available to common shareholders | 12,062 | 11,690 | 10,694 | 10,716 | 6,032 | ||||||||||
| Per common share: | |||||||||||||||
| Basic earnings | $ | 1.46 | $ | 1.42 | $ | 1.30 | $ | 1.30 | $ | 0.73 | |||||
| Diluted earnings | $ | 1.43 | $ | 1.39 | $ | 1.27 | $ | 1.28 | $ | 0.72 | |||||
| Common shares outstanding: | |||||||||||||||
| Average - diluted | 8,417,319 | 8,417,729 | 8,393,211 | 8,359,450 | 8,412,782 | ||||||||||
| Period end | 8,345,032 | 8,295,272 | 8,289,479 | 8,294,801 | 8,294,801 | ||||||||||
| Return on (annualized): | |||||||||||||||
| Average total assets | 1.05 | % | 1.13 | % | 1.07 | % | 1.14 | % | 0.71 | % | |||||
| Average equity | 14.17 | % | 13.94 | % | 13.20 | % | 13.82 | % | 8.00 | % | |||||
| Average tangible common equity* | 14.82 | % | 14.61 | % | 13.85 | % | 14.36 | % | 8.33 | % | |||||
| Yield on average earning assets | 3.32 | % | 3.54 | % | 3.54 | % | 3.62 | % | 4.22 | % | |||||
| Cost of interest-bearing liabilities | 0.68 | % | 0.64 | % | 0.71 | % | 0.81 | % | 1.48 | % | |||||
| Net interest spread | 2.64 | % | 2.90 | % | 2.83 | % | 2.81 | % | 2.74 | % | |||||
| Net interest margin | 3.00 | % | 3.21 | % | 3.18 | % | 3.19 | % | 3.38 | % | |||||
| Net charge-offs as % of average loans (annualized) | 0.11 | % | 0.00 | % | 0.00 | % | 0.03 | % | 0.02 | % | |||||
| Efficiency ratio | 52.09 | % | 48.28 | % | 52.64 | % | 54.58 | % | 58.59 | % |
*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.
10
ConsolidatedBalance Sheet Summary, Five Quarter Trend (unaudited)
| (dollars in thousands) | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | Mar. 31, 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||||||||
| Total Assets | $ | 4,922,801 | $ | 4,330,821 | $ | 4,001,759 | $ | 3,970,441 | $ | 3,612,012 | |||||
| Overnight deposits | 1,125,589 | 855,613 | 758,913 | 813,147 | 569,927 | ||||||||||
| Total securities | 484,761 | 271,169 | 187,695 | 194,979 | 205,646 | ||||||||||
| Other investments | 11,638 | 11,597 | 11,097 | 15,731 | 21,455 | ||||||||||
| Loans, net of deferred fees and unamortized costs | 3,237,664 | 3,137,053 | 2,989,550 | 2,892,274 | 2,766,099 | ||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing demand deposits | $ | 2,167,899 | $ | 1,726,135 | $ | 1,561,605 | $ | 1,535,245 | $ | 1,254,089 | |||||
| Interest-bearing deposits | 2,258,818 | 2,103,471 | 1,974,385 | 1,868,300 | 1,771,108 | ||||||||||
| Total deposits | 4,426,717 | 3,829,606 | 3,535,990 | 3,403,545 | 3,025,197 | ||||||||||
| Borrowings | 45,290 | 45,277 | 45,263 | 149,249 | 189,235 | ||||||||||
| Total stockholders' Equity | 348,217 | 340,787 | 328,584 | 317,169 | 308,536 | ||||||||||
| Asset Quality | |||||||||||||||
| Total non-accrual loans | $ | 4,860 | $ | 5,620 | $ | 5,669 | $ | 7,083 | $ | 6,136 | |||||
| Total non-performing loans | $ | 5,464 | $ | 6,389 | $ | 6,623 | $ | 8,448 | $ | 6,341 | |||||
| Non-accrual loans to total loans | 0.15 | % | 0.18 | % | 0.19 | % | 0.24 | % | 0.22 | % | |||||
| Non-performing loans to total loans | 0.17 | % | 0.20 | % | 0.22 | % | 0.29 | % | 0.23 | % | |||||
| Allowance for loan losses | (35,502 | ) | (35,407 | ) | (33,614 | ) | (32,505 | ) | (30,924 | ) | |||||
| Allowance for loan losses to total loans | 1.10 | % | 1.13 | % | 1.12 | % | 1.12 | % | 1.12 | % | |||||
| Provision for loan losses | 950 | 1,795 | 1,137 | 1,766 | 4,790 | ||||||||||
| Net charge-offs | 855 | 2 | 28 | 185 | 138 | ||||||||||
| Regulatory Capital | |||||||||||||||
| Tier 1 Leverage: | |||||||||||||||
| Metropolitan Bank Holding Corp. | 7.8 | % | 8.5 | % | 8.4 | % | 8.6 | % | 9.1 | % | |||||
| Metropolitan Commercial Bank | 8.2 | % | 9.0 | % | 9.0 | % | 9.2 | % | 9.8 | % | |||||
| Common Equity Tier 1 Risk-Based (CET1): | |||||||||||||||
| Metropolitan Bank Holding Corp. | 9.9 | % | 10.1 | % | 10.1 | % | 9.9 | % | 9.8 | % | |||||
| Metropolitan Commercial Bank | 11.3 | % | 11.6 | % | 11.8 | % | 11.6 | % | 11.5 | % | |||||
| Tier 1 Risk-Based: | |||||||||||||||
| Metropolitan Bank Holding Corp. | 10.7 | % | 10.9 | % | 11.0 | % | 10.8 | % | 10.7 | % | |||||
| Metropolitan Commercial Bank | 11.3 | % | 11.6 | % | 11.8 | % | 11.6 | % | 11.5 | % | |||||
| Total Risk-Based: | |||||||||||||||
| Metropolitan Bank Holding Corp. | 12.4 | % | 12.7 | % | 12.9 | % | 12.7 | % | 12.1 | % | |||||
| Metropolitan Commercial Bank | 12.4 | % | 12.7 | % | 12.9 | % | 12.6 | % | 12.5 | % |
11
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 table:
| Quarterly Data | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Dollars in thousands, except per share data | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | Mar. 31, 2020 | |||||
| Average assets | $ | 4,669,051 | $ | 4,153,908 | $ | 4,026,366 | $ | 3,812,225 | $ | 3,454,335 |
| Less: average intangible assets | 9,733 | 9,733 | 9,733 | 9,733 | 9,733 | |||||
| Average tangible assets | $ | 4,659,318 | $ | 4,144,175 | $ | 4,016,633 | $ | 3,802,492 | $ | 3,444,602 |
| Average equity | $ | 346,785 | $ | 335,940 | $ | 324,876 | $ | 314,727 | $ | 306,487 |
| Less: Average preferred equity | 5,502 | 5,502 | 5,502 | 5,502 | 5,502 | |||||
| Average common equity | $ | 341,283 | $ | 330,438 | $ | 319,374 | $ | 309,225 | $ | 300,985 |
| Less: average intangible assets | 9,733 | 9,733 | 9,733 | 9,733 | 9,733 | |||||
| Average tangible common equity | $ | 331,550 | $ | 320,705 | $ | 309,641 | $ | 299,492 | $ | 291,252 |
| Total assets | $ | 4,922,801 | $ | 4,330,821 | $ | 4,001,759 | $ | 3,970,441 | $ | 3,612,012 |
| Less: intangible assets | 9,733 | 9,733 | 9,733 | 9,733 | 9,733 | |||||
| Tangible assets | $ | 4,913,068 | $ | 4,321,088 | $ | 3,992,026 | $ | 3,960,708 | $ | 3,602,279 |
| Total Equity | $ | 348,217 | $ | 340,787 | $ | 328,584 | $ | 317,169 | $ | 308,536 |
| Less: preferred equity | 5,502 | 5,502 | 5,502 | 5,502 | 5,502 | |||||
| Common Equity | $ | 342,715 | $ | 335,285 | $ | 323,082 | $ | 311,667 | $ | 303,034 |
| Less: intangible assets | 9,733 | 9,733 | 9,733 | 9,733 | 9,733 | |||||
| Tangible common equity (book value) | $ | 332,982 | $ | 325,552 | $ | 313,349 | $ | 301,934 | $ | 293,301 |
| Common shares outstanding | 8,345,032 | 8,295,272 | 8,289,479 | 8,294,801 | 8,294,801 | |||||
| Book value per share (GAAP) | $ | 41.07 | $ | 40.42 | $ | 38.97 | $ | 37.57 | $ | 36.53 |
| Tangible book value per share (non-GAAP)* | $ | 39.90 | $ | 39.25 | $ | 37.80 | $ | 36.40 | $ | 35.36 |
* Tangible book value divided by common shares outstanding at period-end.
| Quarterly Data | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Dollars in thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | Mar. 31, 2020 | |||||
| Net income | $ | 12,117 | $ | 11,775 | $ | 10,783 | $ | 10,811 | $ | 6,097 |
| Plus: income tax expense | 5,627 | 5,482 | 5,111 | 4,953 | 2,906 | |||||
| Income before income tax expense | $ | 17,744 | $ | 17,257 | $ | 15,894 | $ | 15,764 | $ | 9,003 |
| Plus: provision for loan losses | 950 | 1,795 | 1,137 | 1,766 | 4,790 | |||||
| Pre-tax, pre-provision income | $ | 18,694 | $ | 19,052 | $ | 17,031 | $ | 17,530 | $ | 13,793 |
12
Exhibit 99.2
1 Q 2021 Investor Presentation
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 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 those discussed under the heading “Risk Factors” in our Annual Report on Form 10 - K and Quarterly Reports on Form 10 - Q, as well as an unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth and our ability to manage such growth, unanticipated regulatory action, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel, an unanticipated loss of existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in Federal Deposit Insurance Corporation costs and unanticipated adverse changes in our customers’ economic conditions or economic conditions in our local area in general. Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the Coronavirus (“COVID - 19”) outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. As the result of the COVID - 19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest - bearing liabilities, reducing our net interest margin and spread and reducing net income; our cyber security risks are increased as the result of an increase in the number of employees working remotely; and FDIC premiums may increase if the agency experience additional resolution costs. Forward - looking statements speak only as of the date of this presentation. We do not undertake any obligation to update or revise any forward - looking statement, whether the result of new information, future events or otherwise.
A Diversified Financial Institution Our Unique Product Offerings and Solutions How We Succeed 2 Personal Banking • Broad range of hallmark personal checking and savings accounts • A full suite of electronic banking services that allow clients to easily manage their everyday financing needs Business Banking • Checking, deposit, lending and cash management product and services for small and middle - market businesses • MCB Business Bankers with deep knowledge and expertise in multiple markets, including but not limited to law firms, resident healthcare, real estate property management, U.S. Trustee and municipalities. Commercial Lending • Relationship based commercial real estate lending • Commercial lending growth driven by expertise in specific lending verticals • Weighted - average loan - to - value (“LTV”) of 55.57 % • Peak losses of 51 bps in 2010 and have been de minimus since 2014 Global Digital Payments • Administers domestic and international digital payments settlement • Leading national, third - party debit card issuer • Fee business growing at a 33% Compounded Annual Growth Rate (“CAGR”) from full year 2014 through full year 2020 • Meaningful average deposit contribution growing at 69 % CAGR from 2014 through Q1 2021
Delivering Financial Results How We Succeed 3 *Non - GAAP financial measure. See reconciliation to GAAP measure at the end of the presentation. 1 Annualized Financial Highlights • Q1 2021 net income and diluted earnings per common share of $12.1 million and $1.43, respectively • Year - to - date (“YTD”) return on average tangible common equity (“ROATCE”)* of 14.82% • Total pre - tax, pre - provision income* up 35.5% year - over - year • Total assets up 13.7% year - over - year, driven by 15.6% growth in total deposits • Total loans up 12.8% annualized; YTD production of $235.7 million • Book value per share and tangible book value per share* increased year - over - year 12.4% and 12.8%, respectively Diluted EPS at December 31, except 2021, which is at March 31, Quarterly Net Income $ thousands ROATCE* at December 31, except 2021, which is at March 31, 1 2,548 6,291 8,531 6,097 12,117 2,651 5,865 6,057 10,811 3,845 7,113 7,683 10,783 3,236 6,285 7,863 11,775 2017 2018 2019 2020 2021 1Q 2Q 3Q 4Q $2.34 $3.06 $3.56 $4.66 $1.43 2017 2018 2019 2020 1Q 2021 10.46% 10.84% 11.27% 12.32% 14.82% 2017 2018 2019 2020 1Q 2021
Strong Balance Sheet Growth How We Succeed 4 Assets at March 31, 2021 | $ millions Loans, Net of Deferred Fees and Allowance for Loan Losses at March 31, 2021 | $ millions Deposits at March 31, 2021 | $ millions Total Equity at March 31, 2021 | $ millions $768 $965 $1,220 $1,760 $2,183 $3,358 $4,331 $4,923 2014 2015 2016 2017 2018 2019 2020 1Q 2021 $616 $766 $994 $1,404 $1,661 $2,791 $3,830 $4,427 2014 2015 2016 2017 2018 2019 2020 1Q 2021 $627 $810 $1,043 $1,405 $1,846 $2,647 $3,101 $3,202 2014 2015 2016 2017 2018 2019 2020 1Q 2021 $59 $76 $109 $237 $265 $299 $341 $348 2014 2015 2016 2017 2018 2019 2020 1Q 2021
Strong Growth in Revenue How We Succeed 5 Total Revenues at December 31, except 2021, which is at March 31, | $ thousands $24,735 $29,352 $40,563 $60,013 $78,744 $102,596 $133,460 $35,750 $1,551 $2,568 $2,926 $3,369 $4,640 $5,643 $8,464 $3,267 2014 2015 2016 2017 2018 2019 2020 1Q 2021 $39,017 $26,286 $31,920 $43,489 $63,382 $83,384 $108,239 $141,924 In addition to revenue of $3.3 Million for 1Q 2021, GPG contributed average non - interest bearing Deposits of $699.8 million, the value of which was estimated at $ 1.2 million 2 . Global Payments Group (“GPG”) Revenues Excluding GPG 1 CAGR from full year 2014 through full year 2020. 2 On an FTP basis, assuming the alternative source of funding to be 3 - year FHLB advances to match fund interest earning asset, a t an average cost of funds of 0.70% through March 31, 2021.
3.38% 3.36% 3.35% 3.52% 3.70% 3.46% 3.26% 3.00% 0.25% 0.26% 0.51% 1.10% 1.91% 2.28% 0.54% 0.25% 2014 2015 2016 2017 2018 2019 2020 1Q 2021 Stable Net Interest Margin How We Succeed 6 Net Interest Margin Analysis at March 31, 2021 MCB Net Interest Margin ("NIM") 1 Average Fed Funds Rate 2 1 Represents full - year NIM, except 2021, which represents annualized NIM for the three months ended March 31, 2021. 2 Represents full - year average, except 2021, which represents March 2021 YTD average.
Loan Portfolio Growth and Diversification How We Succeed 7 1 Includes commercial real estate, multifamily and construction loans. 2 Includes consumer and 1 - 4 family loans $3.24 billion Loan Portfolio at March 31, 2021 | $ millions A Diversified Portfolio at March 31, 2021 • Multifamily loans – 36.9% rent regulated • CRE/RBC ratios: MCB 426.5% • CRE Owner - Occupied is a segment of our C&I Lending platform 40% 21% 18% 14% 4% 40% CRE – Non - Owner Occupied 21% CRE – Owner Occupied 18% C&I 14% Multifamily 4% Construction 2% 1 - 4 family 1% Consumer $1,530 $1,551 $1,692 $1,732 $1,778 $1,869 $545 $599 $636 $620 $655 $679 $449 $482 $444 $527 $591 $587 $155 $139 $125 $116 $118 $108 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 $2,678 $2,771 $2,897 $2,995 $3,142 $3,243 Total CRE 1 (Non - Owner Occupied) Total CRE (Owner Occupied) C&I Other 2
Commercial Growth Driven by Expertise in Specific Lending Verticals How We Succeed 8 General Commercial and Industrial Overview C&I Composition at March 31, 2021 Target Market • Middle market businesses with annual revenues below $200 million • Primarily concentrated in the New York MSA • Well - diversified across industries 37% 28% 10% 7% 5% 4% 3% 37% Healthcare 28% Finance and Insurance 10% Retail Trade and RE Rental & Leasing 7% Individuals - Unsecured 5% Wholesale Trade 4% Professional, Scientific, Technical and Other Services 3% C&I Other 3% Manufacturing 2% Individual - Secured 1% Accommodation and Food Services 1% Transportation Key Metrics • Average yield of 5.03% YTD • Strong historical credit performance - Pledged collateral and/or personal guarantees from high - net - worth individuals support most loans - Target borrowers have strong historical cash flows, good asset coverage and positive industry outlooks
Relationship - Based Commercial Real Estate Lending How We Succeed 9 Target Market • New York metropolitan area real estate entrepreneurs with a net worth in excess of $5 million • Primarily concentrated in the New York MSA • Well - diversified across various property types Key Metrics • Losses peaked at 51 basis points in 2010 and have been de minimus since 2014 • Weighted average LTV of 55.57 % • Average LTV of 44.04 % on stabilized rent regulated properties provide a cushion against any falling values Composition by Type at March 31, 2021 Composition by Region at March 31, 2021 27% 20% 19% 11% 9% 5% 4% 3% 27% Other 20% Brooklyn 19% Manhattan 11% Bronx 9% Queens 5% Long Island 4% Other NY 3% New Jersey 1% Connecticut 1% Staten Island Majority of loans are originated through direct relationships or referrals from existing clients. 25% 18% 9% 9% 8% 7% 6% 6% 5% 3% 25% Nursing Home CRE 18% Multifamily 9% Other CRE 9% Retail 8% Mixed Use 7% Office 6% Hospitality 6% Land 5% Construction 3% Commercial Condo and Co - op 2% 1 - 4 Family 2% Warehouse
Well - Developed, Sector Diversified Healthcare Portfolio How We Succeed 10 • Active in Healthcare lending since 2002 • CRE – Skilled Nursing Facilities (“SNF”) – Average LTV of 69% • Highly selective regarding the quality of Skilled Nursing Operators that we finance • Borrowers typically have over 1,000 beds under management • Loans are made only in “certificate of need” states which limits the supply of beds and supports stable occupancy rates. • Stabilized SNF – 74% of CRE SNF portfolio. Stabilized facility provides adequate cash flows to support debt service and collateral value. Borrowers’ primary motive for acquisition of a stabilized property is for synergies with existing portfolio of SNFs. Average debt service coverage ratio is 2.15x. • Stabilized loans and Non - Stabilized loans are respectively $467 million and $164 million. • Non - stabilized SNF – typically “turn - around” older SNFs acquired from owners who mismanaged the business, relied too heavily on long - term care (Medicaid reimbursement) or did not stay current with changes in the marketplace. Opportunity for owner to create value by renovating and adding services with higher Medicaid reimbursements rates (rehabilitation services, dialysis, etc.). C& I Healthcare Composition at March 31, 2021 46% 24% 13% 7% 4% 4% 46% Nursing and Residential Care Facilities 24% Ambulatory Health Care Services 13% Misc. Health Practitioners 7% Doctor Office 4% Ambulance Services 4% Medical Labs 2% Offices and Clinics of Dentists CRE Skilled Nursing Facilities (SNF) – $631 million C&I Other Healthcare – $116 million C&I Skilled Nursing Facilities (SNF) – $96 million CRE SNF $631 million C&I Other $116 million C&I SNF $96 million Diversified Healthcare Portfolio at March 31, 2021
Well - Developed, Geographically Diversified Skilled Nursing Facility Portfolio How We Succeed 11 CRE Skilled Nursing Facility Exposure by State C&I Skilled Nursing Facility Exposure by State 31% 24% 14% 13% 8% 7% 3% 31% New York 24% Tennessee 14% Pennsylvania 13% District of Columbia 8% New Jersey 7% Georgia, Indiana, Wisconsin, Virginia, Ohio, Kentucky 3% Florida 33% 15% 8% 6% 5% 5% 4% 4% 4% 4% 4% 3% 3% 33% New York 15% Florida 8% Pennsylvania 6% Virginia 5% Massachusetts 5% Tennessee 4% California 4% Indiana 4% Kentucky 4% Wisconsin 4% Georgia, Ohio, Rhode Island 3% Maryland 3% Michigan 2% New Jersey
Credit Metrics at March 31, 2021 How We Succeed 12 NCOs/Average Loans (Annualized) Non - Performing Loans/Loans ALLL/Loans Non - Performing Loans/ALLL 0.00% 0.00% 0.66% 0.32% - 0.06% - 0.13% 0.00% 0.11% 2014 2015 2016 2017 2018 2019 2020 1Q 2021 1.25% 1.21% 1.12% 1.05% 1.02% 0.98% 1.13% 1.10% 2014 2015 2016 2017 2018 2019 2020 1Q 2021 0.33% 0.26% 0.35% 0.24% 0.02% 0.17% 0.20% 0.17% 2014 2015 2016 2017 2018 2019 2020 1Q 2021 26.2% 20.9% 31.0% 22.8% 1.5% 17.1% 18.0% 15.4% 2014 2015 2016 2017 2018 2019 2020 1Q 2021
Deposit Composition How We Succeed 13 1 Includes liquidation, receivership, litigation settlement and other fiduciary accounts. 2 Includes cost of surety bonds required for certain deposits. Deposits $4.43 billion at March 31, 2021 Deposit Composition Over Time at March 31, 2021 | $ millions Corporate cash management deposits: • Have an expected retention period of greater than 3 years. • In total have cost of 50 basis points 2 . 36% 25% 23% 14% 36% DDA (excl. Corporate Cash Management) 25% Corporate Cash Management MMA 23% MMA (excl. Corporate Cash Management) 14% Corporate Cash Management DDA 2% Savings and CD’s $805 $898 $983 $927 $1,016 $1,256 $580 $861 $856 $813 $758 $901 $375 $387 $396 $436 $598 $708 $392 $353 $515 $601 $659 $651 $207 $219 $318 $389 $392 $516 $104 $129 $106 $97 $140 $279 $328 $173 $221 $220 $256 $116 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 $2,791 $3,022 $3,395 $3,528 $3,819 $4,427 Retail Deposits Bankruptcy Accounts Property Managers Retail Deposits with Loan Customers Debit Cards – Global Payments Group Digital Currency Customers – Global Payments Group Corporate Cash Management Deposits 1
Well Positioned for Changing Rate Environment How We Succeed 14 Estimated Sensitivity of Projected Annualized Net Interest Income 1 as of December 31, 2020 Fixed vs. Floating Rate Loans at March 31, 2021 1 Given the recent decreases in market interest rates, the Bank did not model a 200 - basis point decrease in interest rates at De cember 31, 2020. 0.19% 1.79% 7.77% -100 bps +100 bps +200 bps 60% Fixed 40% Floating Approximately 70% of floating rate loans have floors – Weighted average floor of 4.97% Given the strength of our deposit verticals and overnight liquidity, we are well - positioned to benefit from a rising interest rate environment as we maintain our margin management discipline.
Global Payments Group 15 Singular Focus Digital Payments Worldwide, Every Day
Client Case Study How We Succeed | Global Payments Group 16 “The B2B and B2C infrastructure Broxel has built in Mexico combined with MCB’s total support infrastructure in the United States is the blueprint for our mutual success.” Gustavo Gutierrez Broxel Overview Broxel is a FinTech leader founded in 2011 and based in Mexico City, Mexico. The Company is an innovator of tailor - made payments solutions that create efficient, agile, disruptive and available financial B2B and B2C ecosystems anywhere in the world. broxel.com/us - en/ Leadership Gustavo Gutierrez, CEO and Founder Vision We will transform money into something more valuable. Markets Mexico, United States Hispanic Primary Business Broxel offers prepaid debit cards and a mobile app that accepts direct deposits and can make payments online and at retail locations in MXN and USD. Broxel is a Mexican company that is always looking out for the Hispanic community living in the United States. Metropolitan Commercial Bank Global Payments Group • Broxel has been a client since 2018 • Mobile app - based bank account and card that works as a remittance product
Client Case Study How We Succeed | Global Payments Group 17 CIBanco Overview Consultoría Internacional (CI) was established in 1983 and became known as CIBanco in 2008. CIBanco became a signatory of the Equator Principles from the World Bank in 2012 in response to the environmental challenges that the world is facing. Aligned with a renewed corporate philosophy CIBanco became the first green bank in Mexico to provide sustainable financial solutions. CIBanco, CICasa de Bolsa, CIFondos de Inversion, Finamadrid, are wholly - owned subsidiaries of Tenedora CI, S. A. de C.V. Financial Group. cibanco.com Leadership Jorge Rangel de Alba Brunel, Chairman of the Board Norman Hagemeister Rey, Chief Executive Director and Board Member Luis Miguel Osio Barroso, Chief Executive Director and Board Member Salvador Arroyo Rodriguez, Chief Executive Director and Board Member Mario Maciel Castro, CEO Vision To stand apart from traditional vertically integrated banks in specific niches that favor sustainability through unparalleled service, reliability, security and leadership. Markets Mexico, United States Hispanic | Spain and Latin America Primary Business Mexico - based bank providing banked, unbanked and underbanked financial service, leaders in Trust Funds, FX & Foreign Trade Units. Financial services including auto loans, trust funds, online and mobile banking, currency and investment options, and lines of credit, in and outside of Mexico. CIBanco serves “SME”, large and corporate entities and individuals providing all financial services, settling electronic and wire transfers “from” and “to” the U.S.; thanks to its “export and import profile” and the commercial relevance between both countries and the world. Metropolitan Commercial Bank Global Payments Group • CIBanco has been a client since 2019 • Mobile app - based bank account and card that works as a remittance product “Metropolitan Commercial Bank has demonstrated from the very beginning and throughout the journey, collaboration between institutions outside the transactional scope suggests a long - term relationship, in which there is trust to point out everything right or wrong; seeking to consolidate a bilateral and joint reputation. It is not every day you have the openness and willingness to grow and mature with a partner who is on your side while committing to each entity daily.” Luis Miguel Osio Barroso
Client Case Study How We Succeed | Global Payments Group 18 Mesh Payments Overview Corporate HQ New York, NY, International office Tel Aviv, Israel; 20+ employees, privately held company founded in 2018 with VC backers and a recent round of favorable financing; strong growth in the virtual card space, which is a fraction of the corporate card space. meshpayments.com Leadership Globally recognized payment and technology leaders. Oded Zehavi, CEO and Co - founder • Before Mesh: COO, Kaymera Technologies; Payoneer, Chief Revenue Officer; PayPal, Director Global Business Development • Board Member: ReWire.tp; Advisory Board Member: Fiverr, AU10TIX, CreditStacks Vision Re - writing the way corporate payments are made. One - stop hub to orchestrate, manage, analyze and optimize, reconcile, and reduce their corporate spend and subscription payments. Markets Global B2B cardless payments. Primary Business Cardless corporate payments solutions via virtual cards • SaaS (software as a service) subscriptions • On - Demand to employees and gig workers • Payment intelligence – manage corporate spending and protect companies from failed payment risks • Receipt Automation – collects and matches digital receipts automatically for all tracked payments. • Accounting Integrations – works with existing accounting software Metropolitan Commercial Bank Global Payments Group • Mesh Payments has been a client since 2018 • MCB holds deposits on behalf of Mesh Payments’ clients • MCB provides Mesh Payments with access to ACH and wire payment systems • MCB sponsors Mesh Payments’ Visa branded virtual cards “ Metropolitan Commercial Bank checks all the boxes when it comes to innovation mindset and execution and strong relationships and fintech support.” Oded Zehavi
Client Case Study How We Succeed | Global Payments Group 19 Revolut Overview • A global fintech financial services company • Corporate HQ London, England • International offices including Asia, Europe and Oceania • North American offices, San Francisco, CA and New York, NY • 2,000+ employees revolut.com/ en - US Leadership Revolut, Martin Gilbert, Chairman; Nik Storonsky, CEO and Co - founder; Vlad Yatsenko, CTO and Co - founder Revolut USA, Ronald Oliveira, CEO since November 2019 The Company’s executive leadership is a Who’s Who of global fintech and finance superstars. Vision Revolut is building the world’s first truly global financial super app. Markets Global, individuals and businesses Primary Business Around the world use dozens of Revolut’s innovative banking, investment and wealth management products to make more than 100 million transactions a month. Across Revolut’s personal and business accounts, the Company helps customers improve their financial health, give them more control, and connect people seamlessly across the world. Metropolitan Commercial Bank Global Payments Group • Revolut has been a client since 2018 • MCB holds deposits on behalf of Revolut’s clients • MCB provides Revolut with: • Access to ACH and wire payment systems • Correspondent relationships for FX services • Tailored solutions for Revolut clients in other jurisdictions • MCB sponsors Revolut card processing services for its Visa and MasterCard products “ Metropolitan Commercial Bank is not only a bank with excellent financial health, a deep bench of experienced fintech bankers and a track record across a wide arena of fintech sectors, their people listen and are open to new and interesting banking solutions.” Ronald Oliveira
Client Case Study How We Succeed | Global Payments Group 20 Voyager Digital, Ltd CSE: VYGR. CN Overview Voyager: The Fastest - Growing Digital Asset Broker Voyager’s team of established Wall Street and Silicon Valley entrepreneurs is eliminating the roadblocks that currently exist in digital trading. The Company’s goal is to bring the best of the traditional equities’ world to crypto, while still delivering the innovation this exciting new asset class deserves. investvoyager.com Leadership Stephen Ehrlich, Chief Executive Officer, Co - Founder Philip Eytan, Chairman, Co - Founder Gaspard de Dreuzy, Co - Founder Oscar Salazar, Advisor, Co - Founder Voyager’s founders have combined their decades of experience from leading organizations like E*TRADE, Uber, TradeIt, Lightspeed Financial and more, to bring Voyager to the crypto investing universe. Vision Voyager believes that crypto assets are the future of finance and investing. The Company is creating the broker that the crypto market deserves. Markets Voyager is based in New York and serves retail and institutional clients in Canada and the United States. Voyager’s mission is to provide every investor with a trusted and secure access point to crypto asset trading. Primary Business Crypto trading solutions, built for retail and institutional businesses. Voyager offers best - in - class customer service, incomparable access to the most popular assets and commission - free trading. Metropolitan Commercial Bank Global Payments Group • Voyager has been a client since 2019 • MCB provides depository relationship for client funds • MCB provides access to ACH and wire payment networks “ Voyager partners with companies that bring their A - game every day through technology and human capital. Proximity is a bonus when synergy amongst team members is seamless. Metropolitan Commercial Bank has been the right choice for us since day one.” Stephen Ehrlich
Strong Growth in Revenue How We Succeed | Global Payments Group 21 Non - Interest Income at December 31, except 2021, which is at March 31, | $ thousands $1,551 $2,568 $2,926 $3,369 $4,640 $5,643 $8,464 $3,267 2014 2015 2016 2017 2018 2019 2020 1Q 2021 Global Payments Group Revenue (% of Total Bank Non - Interest Income ) 71% 53% 38% 30% 54% 57% 99% 50% 1 CAGR from full year 2014 through full year 2020.
Customer Centric Digital Payments Worldwide How We Succeed | Global Payments Group 22 Client Transactions at March 31, 2021 | Millions Customer $ Volume at March 31, 2021 | Billions $3.96 $3.85 $7.09 $13.04 2018 2019 2020 2021* 38.60 42.30 54.54 65.66 2018 2019 2020 2021* * Annualized Highlights • 180 clients with offices on six continents. • More than 2 million active customers across 200 countries. • Over 65 million domestic and international transactions totaling $13.04 billion in 130 fiat and digital currencies and 120+ languages. • Strong c ustomer $ volume growth across all product categories for the first quarter of 2021.
Who Are Our Payment Clients? 23 How We Succeed | Global Payments Group
Delivering Critical Financial Infrastructure, Every Day How We Succeed | Global Payments Group 24 • Domestic and international digital payments settlements, every day • Gateway to payment networks – Wire, ACH, Visa, Mastercard, Remittance, every day • Custodian of deposits on behalf of clients and their customers, every day • Sponsorship for select clients as an extension of MCB’s expertise and legal authority e.g., money transmitter, issuing bank, acquiring bank, lending activities, every day • Regulatory oversight by experienced MCB bankers with the expertise to deploy and manage regulatory compliance across a broad spectrum of client sectors including fintech, digital payments and money services businesses, every day • Merchant Acquiring Services for the banked, underbanked and unbanked, every day • A leading national issuer of third - party debit cards status, every day Digital payment platforms are the underpinnings of E - commerce – E - commerce 1.0 was about selling goods, starting with Dell.com and Book Stacks Unlimited in the early 1990s. E - commerce 2.0 is about buying, selling and connecting a limitless array of products and services with desktop and mobile devices: • Video, movies, TV programs, music, books, podcasts and news streaming services • DIY online learning – from around the corner to around the world; how to knit to PhD • Global gig work opportunities • Tickets to in - person and virtual sporting and entertainment events • Grocery and prepared meals delivered The list goes on and on...
Diversified Deposit and Revenue Contribution How We Succeed | Global Payments Group 25 Total Average Deposits by Category at March 31, 2021 | Unaudited Total Revenue by Category For the three months ended March 31, 2021 | Unaudited 45% 18% 11% 7% 7% 7% 5% 27% 16% 15% 14% 10% 9% 9% 27% Crypto Exchange/ OTC 16% General Purpose Reloadable (“GPR”) Cards 15% Digital Bank Account 14% Corporate Disbursement 10% Other 9% Disbursements 9% Crypto GPR 45% GPR Cards 18% Crypto GPR 11% Other 7% Crypto Exchange OTC 7% Digital Bank Account 7% Corporate Disbursement 5% Disbursements
Contributions to Deposits How We Succeed | Global Payments Group 26 Total Average Deposits at March 31, 2021 | $ millions $25 … $77.9 $157.6 $391.4 $616.1 $410.3 $359.8 $445.1 $79.2 $254.7 2014 2015 2016 2017 2018 2019 2020 1Q 2021 Crypto Deposits $439.0 $699.8 Growth in average deposits in the first quarter of 2021 driven by increases across all GPG product categories.
Appendix 27
A Diversified Financial Institution We are More than a Commercial Bank 28 How We Succeed 21 - Years of Reliable Asset Quality and Financial Performance • Organic business loan origination platform • Core funded organic deposit franchise • Helping our clients build and sustain generational wealth since 1999 Our Strategic Priorities Enhance our position as a leader in the settlement of global and digital payments that brings people around the world closer together. Be the critical financial infrastructure for select fintechs to access our global payments settlement platform. Our Mission To offer a full range of banking and innovative financial services to businesses and individuals embracing the new digital banking era. Serve markets underserved by the ever - consolidating financial services industry and advance our leading - edge model that combines new technologies with the best of traditional banking practices .
Delivering Critical Financial Infrastructure, Every Day 29 U.S. Treasury Government Payments Pension Companies Public and Private Pension Payments Law Firms Payouts for Legal Settlements Other Load Types MG, WU, GD, VRL, MCR Direct Deposits/ ACH Loads Network Loads WU, MG GD Corporate Prefund Adjustment Account Charge Back Disputes or Provisional Credits Program Revenue Account Program’s Revenue Operating Account Net Network Settlement Cardholder Activity MCB Settlement Account Net of Fees (Program Earnings and Expenses) MCB Pooled Funds Account MCB Revenue Account MCB’s Revenue MCB Reserve Account Extraordinary Events MCB Prepaid Invoice Account External Activity MCB Owned Program Owned Moved by External Party Moved by MCB MCB Clients Moved by External Party How We Succeed | Global Payments Group
Partner with the Leading Processors and Payment Processing Networks, Every Day How We Succeed | Global Payments Group 30 Leading Processors Leading Payment Processing Networks
Tending to Our Diverse Digital Payment Products Ecosystem, Every Day How We Succeed | Global Payments Group 31 Illustrative photography and captions, not actual customers. Accounts Payable/ Expense Management ACH Processing and Settlement Bill Payment Card Present Debit Card Claim Handling and Processing Digital Assets Settlement E - Wallet Debit Card Government Benefits Settlement International Remittance Loan Advance / Payment Settlement Merchant Acquiring Mobile Payment Settlement Due cappuccino date night with my prefunded e - wallet watch app in Naples, Italy. I don’t know how it’s done but I am glad my phone helps me travel around with ease. Peer - To - Peer (P2P) Payments Push Payments – Real Time Domestic and International Rebate Settlement Virtual Debit Card Traveling through southeast Asia and never worrying about having the right currency. Credit score is up so now I can get approved for a new car and visit my folks in Ontario. Sent my sister money to pay for books at St. George’s University in Granada. My benefit payments arrive like clockwork to my debit card every month. Easy peazy . Morning coffee with my loyalty rewards prepaid debit card in Seattle, Washington. Paying in for Sally’s wedding gift was easier than deciding what the gift should be. Traded in my wallet for paying mobile. More space in my purse for makeup. Foreign travel is exciting, not having to think about exchange rates is joyful. Now I can view and comment on everyone’s expenses no matter where they are. Getting paid in Bitcoin and having it converted to Euros instantly, sweeeet ! This auto insurance claim app is a snap to use. No more needless repair estimates. I really enjoy the security of my debit card over cash. A feeling of safety I was missing. Check writing, stamps, check registers, so yesterday. Billpay app happy to meet you. Our international business runs smoother when we are paid digitally.
Securing Our Place in a Diverse Digital Payment Industry Complex, Every Day How We Succeed | Global Payments Group 32 Illustrative photography and captions, not actual customers. Auto Consumer Lending Corporate Accounts Payable Management Corporate Payroll Correspondent Banking Criminal Justice and Corrections Crypto Currency Financial Services to the Unbanked/Underbanked Foreign Exchange Government Payments Healthcare Co - Pay Hospitality Merchant Acquiring Mobile Banking Online Gambling Online Gaming Travel Trucking Pharmaceutical Prepaid Phonecards
Reconciliation of GAAP to Non - GAAP Measures How We Succeed 33 *Tangible common equity divided by common shares outstanding at period - end In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non - GAAP financial measures. 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 accompanying tables. Year - To - Date $ thousands Mar 31, 2021 Mar 31, 2020 Net income $ 12,117 $ 6,097 Plus: income tax expense 5,627 2,906 Income before income tax expense $ 17,744 $ 9,003 Plus: provision for loan losses $ 950 $ 4,790 Pre - tax, pre - provision income 18,694 13,793 Year - To - Date $ thousands, except per share data Mar 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Average assets $ 4,669,051 $ 3,863,013 $ 2,846,959 $ 1,951,982 $ 1,524,202 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 Average tangible assets $ 4,659,318 $ 3,853,280 $ 2,837,226 $ 1,942,249 $ 1,514,469 Average equity $ 346,785 $ 320,617 $ 282,604 $ 251,030 $ 133,462 Less: average preferred equity 5,502 5,502 5,502 5,502 5,502 Average common equity $ 341,283 $ 315,115 277,102 $ 245,528 $ 127,960 Less: average intangible assets 9,733 9,733 9,733 9,733 9,733 Average tangible common equity $ 331,550 $ 305,382 $ 267,369 $ 235,795 $ 118,227 Total assets $ 4,922,801 $ 4,330,821 3,357,572 $ 2,182,644 $ 1,759,855 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 Tangible assets $ 4,913,068 $ 4,321,088 3,347,839 $ 2,172,911 $ 1,750,122 Total equity $ 347,217 $ 340,787 299,124 $ 264,517 $ 236,884 Less: preferred equity 5,502 5,502 5,502 5,502 5,502 Common equity $ 342,715 $ 335,285 293,622 $ 259,015 $ 231,382 Less: intangible assets 9,733 9,733 9,733 9,733 9,733 Tangible common equity (book value) $ 332,982 $ 325,552 283,889 $ 249,282 $ 221,649 Common shares outstanding 8,345,032 8,295,272 8,312,918 8,217,274 8,196,310 Book value per share (GAAP) $ 41.07 $ 40.42 $ 35.32 $ 31.52 $ 28.23 Tangible book value per share (non - GAAP)* $ 39.90 $ 39.25 $ 34.15 $ 30.34 $ 27.04