Metro Bancorp (METR) 8-K Results of Operations and Financial Condition

Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	At or for the						At or for the
	Three Months Ended						Six Months Ended
	June 30,						June 30,
					%						%
(in  thousands,  except  per  share  amounts)	2007		2006		Change		2007		2006			Change
Income Statement Data:
Net interest income	$              14,254		$              13,448		6	%	$      27,482		$        26,645			3	%
Provision for loan losses	500		506		(1)		980		981			0
Noninterest income	5,705		4,614		24		10,875		8,872			23
Total revenues	19,959		18,062		11		38,357		35,517			8
Noninterest operating expenses	17,308		14,498		19		33,798		28,423			19
Net income	1,571		2,050		(23)		2,683		4,087			(34)
Per Common Share Data:
Net  income:  Basic	$                  0.25		$                  0.33		(24)	%	$           0.43		$            0.67			(36)	%
Net  income:  Diluted	0.24		0.32		(25)		0.41		0.64			(36)
Book Value							$        16.60		$          15.15			10	%
Weighted average shares outstanding:
Basic	6,223		6,088				6,195		6,071
Diluted	6,458		6,369				6,430		6,355
Balance Sheet Data:
Total assets							$1,915,463		$   1,783,933			7	%
Loans (net)							1,070,353		888,391			20
Allowance for loan losses							10,358		9,677			7
Investment securities							657,120		722,890			(9)
Total deposits							1,532,449		1,416,490			8
Core deposits							1,514,453		1,360,195			11
Stockholders' equity							104,721		93,630			12
Capital:
Stockholders' equity to total assets							5.47	%	5.25	%
Leverage ratio							7.22		6.48
Risk based capital ratios:
Tier 1							10.03		9.36
Total Capital							10.78		10.15
Performance Ratios:
Cost of funds	3.30	%	3.08	%			3.35	%	2.96	%
Deposit cost of funds	2.43		2.20				2.58		2.17
Net interest margin	3.19		3.26				3.11		3.29
Return on average assets	0.33		0.47				0.29		0.48
Return on average total stockholders' equity	6.00		8.83				5.21		8.88
Asset Quality:
Net charge-offs to average loans outstanding							0.03	%	0.06	%
Nonperforming  assets  to  total  period-end  assets							0.21		0.19
Allowance  for  loan  losses  to  total  period-end  loans							0.96		1.08
Allowance  for  loan  losses  to  nonperforming  loans							278		306
Nonperforming  assets  to  capital and reserves							3	%	3	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Quarter ending,
	June 2007				March 2007				June 2006
	Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$      686,714	9,108	5.31	%	$    704,722	$    9,379	5.32	%	$    750,549	$    9,967	5.31	%
Tax-exempt	1,620	25	6.17		1,619	25	6.18		2,101	35	6.66
Total securities	688,334	9,133	5.31		706,341	9,404	5.32		752,650	10,002	5.32
Federal funds sold	0	0	0.00		0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	530,395	9,695	7.24		477,667	8,475	7.10		449,604	8,018	7.07
Commercial loans and lines of credit	301,393	6,068	7.97		312,797	6,267	8.01		250,646	5,114	8.07
Consumer	201,034	3,410	6.80		194,354	3,247	6.78		164,138	2,741	6.70
Tax-exempt	49,847	859	6.89		36,686	610	6.65		21,871	356	6.51
Total loans receivable	1,082,669	20,032	7.35		1,021,504	18,599	7.30		886,259	16,229	7.27
Total earning assets	$   1,771,003	$  29,165	6.55	%	$ 1,727,845	$  28,003	6.49	%	$ 1,638,909	$  26,231	6.37	%
Sources of Funds
Interest-bearing deposits
Regular savings	$      375,370	$    2,365	2.53	%	$    377,735	$    2,491	2.67	%	$    351,575	$    1,924	2.20	%
Interest checking and money market	674,125	6,138	3.65		700,697	6,851	3.97		556,976	4,891	3.52
Time deposits	190,854	2,024	4.25		200,642	2,101	4.25		191,900	1,813	3.79
Public funds time	17,839	219	4.92		19,611	236	4.88		33,678	355	4.23
Total interest-bearing deposits	1,258,188	10,746	3.43		1,298,685	11,679	3.65		1,134,129	8,983	3.18
Short-term borrowings	238,520	3,204	5.31		165,250	2,219	5.37		258,801	3,312	5.06
Junior subordinated debt	29,400	661	8.99		29,400	661	9.00		13,600	355	10.43
Total interest-bearing liabilities	1,526,108	14,611	3.83		1,493,335	14,559	3.94		1,406,530	12,650	3.59
Noninterest-bearing funds (net)	244,895				234,510				232,379
Total sources to fund earning assets	$   1,771,003	$  14,611	3.30		$ 1,727,845	$  14,559	3.41		$ 1,638,909	$  12,650	3.08
Net interest income and margin
on a tax-equivalent basis		$  14,554	3.25	%		$  13,444	3.08	%		$  13,581	3.29	%
Tax-exempt adjustment		300				216				133
Net interest income and margin		$  14,254	3.19	%		$  13,228	3.04	%		$  13,448	3.26	%
Other Balances:
Cash and due from banks	$        51,842				$      48,377				$      50,116
Other assets	90,813				89,736				78,575
Total assets	1,913,658				1,865,958				1,767,600
Demand deposits (noninterest-bearing)	274,794				262,022				258,020
Other liabilities	7,725				7,902				9,959
Stockholders' equity	105,031				102,699				93,091

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Year-to-date
	June 2007				June 2006
	Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$    695,668	$     18,487	5.31	%	$    736,528	$  19,318	5.25	%
Tax-exempt	1,619	50	6.18		2,358	79	6.70
Total securities	697,287	18,537	5.32		738,886	19,397	5.25
Federal funds sold	0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	504,177	18,169	7.17		445,561	15,598	6.97
Commercial loans and lines of credit	307,063	12,336	7.99		244,067	9,696	7.90
Consumer	197,713	6,657	6.79		161,598	5,289	6.60
Tax-exempt	43,303	1,470	6.79		20,366	656	6.44
Total loans receivable	1,052,256	38,632	7.32		871,592	31,239	7.15
Total earning assets	$ 1,749,543	$     57,169	6.52	%	$ 1,610,478	$  50,636	6.28	%
Sources of Funds
Interest-bearing deposits
Regular savings	$    376,546	$       4,855	2.60	%	$    350,788	$    3,672	2.11	%
Interest checking and money market	687,338	12,990	3.81		552,733	9,388	3.43
Time deposits	195,721	4,125	4.25		194,030	3,526	3.66
Public funds time	18,720	455	4.90		35,597	726	4.11
Total interest-bearing deposits	1,278,325	22,425	3.54		1,133,148	17,312	3.08
Short-term borrowings	202,087	5,423	5.34		234,044	5,720	4.86
Junior subordinated debt	29,400	1,322	8.99		13,600	709	10.43
Total interest-bearing liabilities	1,509,812	29,170	3.88		1,380,792	23,741	3.45
Noninterest-bearing funds (net)	239,731				229,686
Total sources to fund earning assets	$ 1,749,543	$     29,170	3.35		$ 1,610,478	$  23,741	2.96
Net interest income and margin
on a tax-equivalent basis		$     27,999	3.17	%		$  26,895	3.32	%
Tax-exempt adjustment		517				250
Net interest income and margin		$     27,482	3.11	%		$  26,645	3.29	%
Other Balances:
Cash and due from banks	$      50,119				$      47,552
Other assets	90,277				75,234
Total assets	1,889,939				1,733,264
Demand deposits (noninterest-bearing)	268,443				249,937
Other liabilities	7,813				9,694
Stockholders' equity	103,871				92,841

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
		6/30/2007		6/30/2006		Year-ended		6/30/2007		6/30/2006
(dollar amounts in thousands)		Three Months Ended				12/31/2006		Six Months Ended
Balance at beginning of period		$      9,992		$      9,656		$      9,231		$      9,685		$      9,231
Provisions charged to operating expense		500		506		1,634		980		981
		10,492		10,162		10,865		10,665		10,212
Recoveries on loans charged-off:
	Commercial	1		4		34		2		49
	Consumer	9		13		71		14		27
	Real estate	0		0		0		8		0
Total recoveries		10		17		105		24		76
Loans charged-off:
	Commercial	(86)		(501)		(895)		(262)		(501)
	Consumer	(58)		(1)		(390)		(67)		(110)
	Real estate	0		0		0		(2)		0
Total charged-off		(144)		(502)		(1,285)		(331)		(611)
Net charge-offs		(134)		(485)		(1,180)		(307)		(535)
Balance at end of period		$    10,358		$      9,677		$      9,685		$    10,358		$      9,677
Net charge-offs as a percentage of
average loans outstanding		0.01	%	0.06	%	0.13	%	0.03	%	0.06	%
Allowance for loan losses as a percentage of
period-end loans		0.96	%	1.08	%	0.99	%	0.96	%	1.08	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)
				June 30,	March 31,	December 31,	September 30,	June 30,
				2007	2007	2006	2006	2006
Nonaccrual loans:
	Commercial			$     1,362	$               945	$                984	$      1,275	$      1,009
	Consumer			54	19	19	139	334
	Mortgage:
		Construction		520	394	247	0	0
		Mortgage		1,784	2,207	2,129	2,216	1,818
			Total nonaccrual loans	3,720	3,565	3,379	3,630	3,161
Loans past due 90 days or more
	and still accruing			0	0	2	0	1
Renegotiated loans:				0	0	0	0	0
	Total non-performing loans			3,720	3,565	3,381	3,630	3,162
Foreclosed real estate				300	300	159	159	159
Total non-performing assets				$     4,020	$            3,865	$             3,540	$      3,789	$      3,321
Non-performing loans to total loans				0.34%	0.34%	0.34%	0.39%	0.35%
Non-performing assets to total assets				0.21%	0.20%	0.19%	0.21%	0.19%
Non-performing loan coverage				278%	280%	287%	265%	306%
Allowance for loan losses as a percentage
	of total period-end loans			0.96%	0.95%	0.99%	1.03%	1.08%
Non-performing assets / capital reserves				3%	3%	3%	3%	3%

CONTACT:

Pennsylvania Commerce Bancorp, Inc.

Gary L. Nalbandian

Chairman/President

(717) 412-6301

or

Mark A. Zody

Chief Financial Officer

(717) 412-6301

SOURCE:

Pennsylvania Commerce Bancorp, Inc.