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KBW 11th Annual
Community Bank Investor Conference
New York, NY
July 27th, 2010
Presentation by: George M. Lee
Executive Vice Chairman, President & CEO
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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 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 2009 Annual Report on Form 10-K
and other reports and documents filed from time to time with the SEC.
are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation 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 2009 Annual Report on Form 10-K
and other reports and documents filed from time to time with the SEC.
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FORWARD LOOKING STATEMENTS
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NET INTEREST MARGIN (%)
2009 | 2010 | |||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
MetroBank | 3.70 | 3.86 | 3.11 | 4.10 | 4.39 | 3.98 |
Metro United Bank | 3.15 | 3.31 | 3.67 | 3.48 | 3.28 | 3.69 |
2007 | 2008 | |||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
MetroBank | 4.95 | 4.65 | 4.86 | 4.64 | 4.50 | 4.37 | 4.04 | 3.99 |
Metro United Bank | 4.04 | 4.41 | 4.07 | 4.35 | 3.59 | 3.56 | 3.54 | 3.56 |
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CAPITAL RATIOS
TOTAL RISK BASED CAPITAL RATIO | TANGIBLE COMMON EQUITY CAPITAL RATIO | |
6/30/2010 | 14.57% | 5.85% |
12/31/2009 | 13.80% | 5.79% |
12/31/2008 | 10.17% | 6.22% |
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In $000’s | 2005 | 2006 | 2007 | 2008 | 2009 | 2010- Q1 | 2010- Q2 |
Net Nonperforming Assets * | $17,262 | $9,304 | $5,501 | $55,695 | $100,309 | $97,456 | $79,664 |
Net Nonperforming Assets to Total Assets % | 1.53% | 0.73% | 0.38% | 3.52% | 6.31% | 6.10% | 4.9% |
* Net Nonperforming Assets are net of guarantee and accruing loans > 90 days delinquent.
NON-PERFORMING ASSETS (NET)
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In $000’s | 2005 | 2006 | 2007 | 2008 | 2009 | 2010-Q1 | 2010-Q2 |
Allowance for Loan Losses | $13,169 | $11,436 | $13,125 | $24,235 | $29,403 | $34,732 | $36,004 |
Allowance to Net Nonperforming Loans % * | 98.31% | 174.41% | 325.93% | 47.64% | 37.69% | 49.29% | 58.85% |
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* Net Nonperforming Loans include TDR but are net of guarantee and accruing loans > 90 days delinquent.
ALLOWANCE FOR LOAN LOSSES
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METROBANK (TEXAS)
As of 6/30/10 $ in millions
• Assets $ 1,167
• Loans $ 878
• Deposits $ 999
• Branches 13
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§ Maintain Texas Dominance
§ Asset Quality Improvement
§ Expense Control
§ International (China) Opportunity Expansion
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TEXAS INITIATIVES
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METRO UNITED BANK (CALIFORNIA)
As of 6/30/10 $ in millions
• Assets $ 462
• Loans $ 347
• Deposits $ 371
• Branches 6
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§ Asset Quality Improvement
§ Expense Control
§ Improve Fee Income
§ Low Cost Deposit Growth
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CALIFORNIA INITIATIVES
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$ in millions
MCBI TOTAL ASSET TREND
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$ in millions
MCBI TOTAL LOAN TREND
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$ in millions
MCBI TOTAL DEPOSIT TREND
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PRE-TAX PRE-PROVISION EPS
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PRE-TAX PRE-PROVISION EPS
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PRE-TAX PRE-PROVISION EPS
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OPERATING GUIDELINES
ESTABLISH
PRIORITIES
PRIORITIES
CHOOSE THE
CULTURE
CULTURE
DETERMINE RISK
STRATEGY
STRATEGY
IMPLEMENT RISK
CONTROLS
CONTROLS
STEP 1 STEP 2 STEP 3 STEP 4
VALUES DRIVEN
IMMEDIATE
EARNINGS
EARNINGS
DRIVEN
PRODUCTION
DRIVEN
DRIVEN
UNFOCUSED
CONSERVATIVE
MANAGED
AGGRESSIVE
VARIES/VARIOUS
BEHAVIOR
INFLUENCING
INFLUENCING
BEHAVIOR
DIRECTING
DIRECTING
BEHAVIOR
CONTROLLING
CONTROLLING
ASSET QUALITY/
SOUNDNESS
SOUNDNESS
IMMEDIATE
EARNINGS
EARNINGS
GROWTH /
MARKET SHARE
NO CLEAR
PRIORITIES
PRIORITIES
?
X
X
X
X
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