![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9911.jpg)
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KBW Texas Field Trip
February 11th, 2009
Presentation by: George M. Lee, CEO
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9912.jpg)
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Forward Looking Statements
The statements contained in this presentation that are not
historical facts are forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements describe
Reform Act of 1995. Forward-looking statements describe
MetroCorp’s future plans, projections, strategies and
expectations, are based on assumptions and involve a number
of risks and uncertainties, many of which are beyond
MetroCorp’s control. Actual results could differ materially from
those projected due to changes in interest rates, competition in
the industry, changes in local and national economic conditions
and various other factors. Additional information concerning
such factors that could affect MetroCorp is contained in
MetroCorp’s 2007 Annual Report on Form 10-K and other
reports and documents filed from time to time with the SEC.
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9913.jpg)
Good
to
Great
In ’08 & ’09:
Slowing down loan &
asset growth.
Extending to part
Extending to part
of 2010.
Strengthening Our
Platform
Platform
Growing Our Platform
Harvesting From Our Platform
Extending into 2013
Strategic Transformation of MetroCorp
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9914.jpg)
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Capital
Net Interest
Margin
Asset
Quality &
Provisions
Earning
Asset
Expense
Control
Future Earnings Platform
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9915.jpg)
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Expense Control
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9916.jpg)
FTE
298
MB
257
MB
63
MUB
($ in millions)
Assets
$859
$1,155
MB
$429
MUB
Loans
$575
$974
MB
$372
MUB
Deposits
$709
$955
MB
$319
MUB
FTE Expense Control
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9917.jpg)
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2004
Q4
2005
Q4
2006
Q4
2007
Q4
2008
Q4
2009
Q1 E
MetroBank
280
283
291
277
257
246
Metro United Bank
-
32
59
71
63
59
FTEs
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9918.jpg)
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2005 Q4
2006 Q4
2007 Q4
2008 Q4
2009 Q1 E
Total Assets ($000)
914,748
1,009,996
1,083,536
1,155,480
1,166,883
Total Loans ($000)
636,625
702,444
866,603
974,164
975,258
FTE
283
291
277
257
246
Total Assets ($000) / FTE
3,232
3,471
3,912
4,496
4,743
Total Loans ($000) / FTE
2,250
2,414
3,129
3,791
3,964
FTE - MetroBank
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_9919.jpg)
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2005 Q4
2006 Q4
2007 Q4
2008 Q4
2009 Q1 E
Total Assets ($000)
212,782
257,211
376,218
429,128
430,375
Total Loans ($000)
134,848
184,112
335,308
371,883
375,872
FTE
32
59
71
63
59
Total Assets ($000) / FTE
6,649
4,360
5,299
6,812
7,294
Total Loans ($000) / FTE
4,214
3,121
4,723
5,903
6,371
FTE - Metro United Bank
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99110.jpg)
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Net Interest Margin
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99111.jpg)
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Source: SNL Financial and MCBI company record
MCBI
UCBH
PFBC
EWBC
CATY
2008 Q4
3.72
2.44
3.31
2.72
2.85
2007 Q4
4.30
3.39
4.82
3.91
3.43
2006 Q4
4.61
3.34
5.19
3.81
4.01
2005 Q4
4.56
3.62
4.81
4.20
4.34
Net Interest Margin (%)
Comparison Among NASDAQ Listed Chinese Ethnic Banks
Comparison Among NASDAQ Listed Chinese Ethnic Banks
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99112.jpg)
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MetroBank
4.50
4.37
4.04
3.99
Metro United Bank
3.59
3.56
3.54
3.56
MetroBank
4.95
4.65
4.86
4.64
Metro United Bank
4.04
4.41
4.07
4.35
2008
2007
Net Interest Margin (%)
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99113.jpg)
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Capital
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99114.jpg)
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•
12
/
31
/
2008
:
10.32%
• With CPP
:
13.33%
Total Risk-Based Capital Ratio
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99115.jpg)
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Asset Quality & Provisions
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99116.jpg)
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Source: SNL Financial and MCBI company record
MCBI
UCBH
PFBC
EWBC
CATY
2008 Q4
2.56
NA
6.84
2.12
2.06
2007 Q4
0.38
0.55
1.90
0.57
0.84
2006 Q4
0.73
0.23
0.08
0.18
0.36
2005 Q4
1.53
0.38
0.00
0.30
0.30
* Net Nonperforming Assets are net of guarantee and accruing loan > 90 days delinquent.
Net NPA* / Assets (%)
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99117.jpg)
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Source: SNL Financial and MCBI company record
MCBI
UCBH
PFBC
EWBC
CATY
2008 Q4
1.53
2.20
1.56
2.16
1.64
2007 Q4
1.09
1.01
1.21
1.00
0.97
2006 Q4
1.29
0.91
1.03
0.95
1.05
2005 Q4
1.71
1.08
1.16
1.01
1.22
Reserves / Loans (%)
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99118.jpg)
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Nonperforming Assets (Net)
2004 | 2005 | 2006 | 2007 | 2008 | |
Net Nonperforming Assets * | $15,219 | $17,294 | $9,333 | $6,785 | $40,740 |
Net Nonperform. Assets to Total Assets % | 1.66% | 1.53% | 0.73% | 0.38% | 2.56% |
* Net Nonperforming Assets are net of guarantee and accruing loan > 90 days delinquent. |
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99119.jpg)
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Allowance to Net Nonperforming Loans
2004 | 2005 | 2006 | 2007 | 2008 | |
Allowance for Loan Losses | $10,501 | $13,169 | $11,436 | $13,125 | $20,577 |
Allowance to Net Nonperforming Loans % | 76.9% | 98.1% | 173.6% | 247.1% | 57.3% |
* Net Nonperforming Assets are net of guarantee and accruing loan > 90 days delinquent.
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99120.jpg)
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Earning Asset Platform
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99121.jpg)
Building
Market
Synergy
Market
Synergy
Northern
Southern
ChongQing
Xiamen
Houston
Dallas
Market Footprint
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99122.jpg)
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As of 12/31/08
$ in millions
• Assets
1,155
$
• Loans
974
$
• Deposits
955
$
• Branches
13
MetroBank (Texas)
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99123.jpg)
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Texas Initiatives
v Maintain Houston Dominance
v Asset Quality Improvement
v Expense Control
v Improve Fee Income
v Dallas Growth
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99124.jpg)
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As of: 12/31/08
$ in millions
• Assets
429
$
• Loans
372
$
• Deposits
319
$
• Branches
6
Metro United Bank (California)
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99125.jpg)
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California Initiatives
v Asset Quality Improvement
v Expense Control
v Improve Fee Income
v Low Cost Deposit Growth
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99126.jpg)
MCBI Asset Growth
$ in millions
Mid single
digit ‘09
digit ‘09
$867
$914
$1,128
$1,268
$1,460
$1,583
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2003
2004
2005
2006
2007
2008
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99127.jpg)
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MCBI Total Loan Growth
$ in millions
Mid single
digit ‘09
digit ‘09
$557
$595
$771
$887
$1,202
$1,346
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2003
2004
2005
2006
2007
2008
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99128.jpg)
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MCBI Deposit Growth
$ in millions
High single
digit ‘09
digit ‘09
$725
$755
$962
$1,082
$1,191
$1,269
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2003
2004
2005
2006
2007
2008
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99129.jpg)
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Earnings
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99130.jpg)
30
0.79
1.29
0.98
1.62
1.22
1.95
1.10
2.00
0.40
1.82
$-
$0.50
$1.00
$1.50
$2.00
$2.50
2004
2005
2006
2007
2008
Diluted EPS
PPPt EPS
Pre-Provision/Pre-Tax EPS
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99131.jpg)
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Good to Great - Metro Objectives
v Core Competency
v Competitive Edge
v Market Expansion
v Asset Quality
v Efficiency & Financial Results
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99132.jpg)
Good
to
Great
In ’08 & ’09:
Slowing down loan &
asset growth.
Extending to part
Extending to part
of 2010.
Strengthening Our
Platform
Platform
Growing Our Platform
Harvesting From Our Platform
Extending into 2013
Strategic Transformation of MetroCorp
![](https://capedge.com/proxy/8-K/0001171843-09-000124/exh_99133.jpg)