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									Nine Months Ended
	September 30,									September 30,
							%								%
(in  thousands,  except  per  share  amounts)	2007			2006			Change			2007			2006			Change
Income Statement Data:
Net interest income	$	15,190		$	13,156			15	%	$	42,672		$	39,801			7	%
Provision for loan losses		537			428			25			1,517			1,409			8
Noninterest income		5,816			4,680			24			16,691			13,552			23
Total revenues		21,006			17,836			18			59,363			53,353			11
Noninterest operating expenses		17,838			14,861			20			51,636			43,284			19
Net income		1,851			1,645			13			4,534			5,732			(21	)
Per Common Share Data:
Net  income:  Basic	$	0.29		$	0.27			7	%	$	0.72		$	0.93			(23	)%
Net  income:  Diluted		0.28			0.26			8			0.69			0.89			(22	)
Book Value										$	17.11		$	16.02			7	%
Weighted average shares outstanding:
Basic		6,259			6,116						6,217			6,086
Diluted		6,469			6,373						6,443			6,381
Balance Sheet Data:
Total assets										$	2,015,486		$	1,838,173			10	%
Loans (net)											1,104,322			927,950			19
Allowance for loan losses											10,673			9,635			11
Investment securities											721,041			737,868			(2	)
Total deposits											1,641,887			1,606,253			2
Core deposits											1,621,390			1,556,458			4
Stockholders' equity											108,321			99,180			9
Capital:
Stockholders' equity to total assets											5.37	%		5.40	%
Leverage ratio											7.30			7.34
Risk based capital ratios:
Tier 1											9.87			10.24
Total Capital											10.62			10.99
Performance Ratios:
Cost of funds		3.16	%		3.27	%					3.29	%		3.07	%
Deposit cost of funds		2.31			2.47						2.49			2.27
Net interest margin		3.36			3.14						3.20			3.23
Return on average assets		0.38			0.36						0.32			0.44
Return on average total stockholders' equity		6.91			6.77						5.79			8.15
Asset Quality:
Net charge-offs to average loans outstanding											0.05	%		0.11	%
Nonperforming assets to total period-end assets											0.19			0.21
Allowance for loan losses to total period-end loans											0.96			1.03
Allowance for loan losses to nonperforming loans											319			265
Nonperforming assets to capital and reserves											3	%		3	%

Pennsylvania Commerce Bancorp, Inc.
Selected Consolidated Financial Data
	At or for the
	Three Months Ended
	September 30,			June 30,			%			September 30,			%
(in  thousands,  except  per  share  amounts)	2007			2007			Change			2006			Change
Income Statement Data:
Net interest income	$	15,190		$	14,254			7	%	$	13,156			15	%
Provision for loan losses		537			500			7			428			25
Noninterest income		5,816			5,705			2			4,680			24
Total Revenues		21,006			19,959			5			17,836			18
Noninterest operating expenses		17,838			17,308			3			14,861			20
Net income		1,851			1,571			18			1,645			13
Per Common Share Data:
Net  income:  Basic	$	0.29		$	0.25			16	%	$	0.27			7	%
Net  income:  Diluted		0.28			0.24			17			0.26			8
Effective Tax Rate		29.6	%		27.0	%					35.4	%
Balance Sheet Data:
Total assets	$	2,015,486		$	1,915,463			5	%	$	1,838,173			10	%
Loans (net)		1,104,322			1,070,353			3			927,950			19
Investment Securities		721,041			657,120			10			737,868			(2	)
Total deposits		1,641,887			1,532,449			7			1,606,253			2
Core deposits		1,621,390			1,514,453			7			1,556,458			4
Stockholders' equity		108,321			104,721			3			99,180			9
Net interest margin		3.36	%		3.19	%					3.14	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income

(unaudited)

	Quarter ending,												Year-to-date,
	September 2007				June 2007				September 2006				September 2007				September 2006
	Average		Average		Average		Average		Average		Average		Average		Average		Average		Average
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$     682,415	9,154	5.37	%	$     686,714	$    9,108	5.31	%	$    738,088	$   9,876	5.35	%	$   691,202	$  27,641	5.33	%	$    737,054	$  29,194	5.28	%
Tax-exempt	1,620	25	6.17		1,620	25	6.17		1,618	25	6.18		1,620	74	6.09		2,108	105	6.64
Total securities	684,035	9,179	5.37		688,334	9,133	5.31		739,706	9,901	5.35		692,822	27,715	5.33		739,162	29,299	5.29
Federal funds sold	0	0	0.00		0	0	0.00		0	0	0.00		0	0	0.00		0	0	0.00
Loans receivable
Mortgage and construction	539,964	10,030	7.29		530,395	9,695	7.24		451,923	8,204	7.14		516,237	28,199	7.22		447,705	23,802	7.03
Commercial loans and lines of credit	301,787	6,083	7.89		301,393	6,068	7.97		266,821	5,509	8.08		305,285	18,419	7.96		251,735	15,205	7.97
Consumer	210,156	3,620	6.83		201,034	3,410	6.80		173,892	2,973	6.78		201,906	10,277	6.81		165,741	8,262	6.66
Tax-exempt	48,025	828	6.90		49,847	859	6.89		24,357	409	6.72		44,894	2,299	6.83		21,711	1,075	6.60
Total loans receivable	1,099,932	20,561	7.35		1,082,669	20,032	7.35		916,993	17,095	7.33		1,068,322	59,194	7.33		886,892	48,344	7.21
Total earning assets	$  1,783,967	$ 29,740	6.59	%	$  1,771,003	$  29,165	6.55	%	$ 1,656,699	$ 26,996	6.45	%	$  1,761,144	$ 86,909	6.55	%	$ 1,626,054	$ 77,643	6.34	%
Sources of Funds
Interest-bearing deposits
Regular savings	$    373,663	$   2,266	2.41	%	$    375,370	$   2,365	2.53	%	$    368,467	$   2,290	2.47	%	$   375,575	$    7,121	2.53	%	$    356,746	$   5,962	2.23	%
Interest checking and money market	704,352	6,091	3.43		674,125	6,138	3.65		600,658	5,732	3.79		693,072	19,081	3.68		568,884	15,120	3.55
Time deposits	173,084	1,817	4.16		190,854	2,024	4.25		193,738	1,951	4.00		188,093	5,942	4.22		193,931	5,477	3.78
Public funds time	18,290	230	4.99		17,839	219	4.92		32,133	351	4.33		18,575	685	4.93		34,429	1,077	4.18
Total interest-bearing deposits	1,269,389	10,404	3.25		1,258,188	10,746	3.43		1,194,996	10,324	3.43		1,275,315	32,829	3.44		1,153,990	27,636	3.20
Short-term borrowings	217,130	2,906	5.24		238,520	3,204	5.31		219,130	3,003	5.36		207,157	8,329	5.30		229,018	8,723	5.02
Other borrowed money	25,815	289	4.38		0	0	0.00		0	0	0.00		8,700	289	4.38		0	0	0.00
Junior subordinated debt	29,400	661	8.99		29,400	661	8.99		13,943	361	10.36		29,400	1,983	8.99		13,716	1,070	10.40
Total interest-bearing liabilities	1,541,734	14,260	3.66		1,526,108	14,611	3.83		1,428,069	13,688	3.79		1,520,572	43,430	3.81		1,396,724	37,429	3.57
Noninterest-bearing funds (net)	242,233				244,895				228,630				240,572				229,330
Total sources to fund earning assets	$ 1,783,967	$  14,260	3.16		$  1,771,003	$    14,611	3.30		$ 1,656,699	$  13,688	3.27		$  1,761,144	$ 43,430	3.29		$ 1,626,054	$ 37,429	3.07
Net interest income and margin
on a tax-equivalent basis		$  15,480	3.43	%		$  14,554	3.25	%		$  13,308	3.18	%		$ 43,479	3.26	%		$  40,214	3.27	%
Tax-exempt adjustment		290				300				152				807				413
Net interest income and margin		$  15,190	3.36	%		$  14,254	3.19	%		$   13,156	3.14	%		$ 42,672	3.20	%		$  39,801	3.23	%
Other Balances:
Cash and due from banks	$       55,115				$       51,842				$       51,904				$     51,803				$       49,019
Other assets	90,536				90,813				82,357				90,364				77,635
Total assets	1,929,618				1,913,658				1,790,960				1,903,311				1,752,708
Demand deposits (noninterest-bearing)	274,089				274,794				258,786				270,346				252,919
Other liabilities	7,591				7,725				7,699				7,736				9,022
Stockholders' equity	106,204				105,031				96,406				104,657				94,043

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	9/30/2007			9/30/2006			Year-ended			9/30/2007			9/30/2006
(dollar amounts in thousands)	Three Months Ended						12/31/2006			Nine Months Ended
Balance at beginning of period	$	10,358		$	9,677		$	9,231		$	9,685		$	9,231
Provisions charged to operating expense		537			428			1,634			1,517			1,409
		10,895			10,105			10,865			11,202			10,640
Recoveries on loans charged-off:
Commercial		2			13			34			4			62
Consumer		9			13			71			23			40
Real estate		0			0			0			8			0
Total recoveries		11			26			105			35			102
Loans charged-off:
Commercial		(207	)		(249	)		(895	)		(469	)		(750	)
Consumer		(2	)		(247	)		(390	)		(69	)		(357	)
Real estate		(24	)		0			0			(26	)		0
Total charged-off		(233	)		(496	)		(1,285	)		(564	)		(1,107	)
Net charge-offs		(222	)		(470	)		(1,180	)		(529	)		(1,005	)
Balance at end of period	$	10,673		$	9,635		$	9,685		$	10,673		$	9,635
Net charge-offs as a percentage of
average loans outstanding		0.02	%		0.05	%		0.13	%		0.05	%		0.11	%
Allowance for loan losses as a percentage of
period-end loans		0.96	%		1.03	%		0.99	%		0.96	%		1.03	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Non-Performing Loans and Assets
(unaudited)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2007			2007			2007			2006			2006
Nonaccrual loans:
	Commercial	$	997		$	1,362		$	945		$	984		$	1,275
	Consumer		57			54			19			19			139
	Mortgage:
	Construction		529			520			394			247			0
	Mortgage		1,767			1,784			2,207			2,129			2,216
	Total nonaccrual loans		3,350			3,720			3,565			3,379			3,630
Loans past due 90 days or more
	and still accruing		0			0			0			2			0
Renegotiated loans			0			0			0			0			0
	Total non-performing loans		3,350			3,720			3,565			3,381			3,630
Foreclosed real estate			390			300			300			159			159
Total non-performing assets		$	3,740		$	4,020		$	3,865		$	3,540		$	3,789
Non-performing loans to total loans			0.30	%		0.34	%		0.34	%		0.34	%		0.39	%
Non-performing assets to total assets			0.19	%		0.21	%		0.20	%		0.19	%		0.21	%
Non-performing loan coverage			319	%		278	%		280	%		287	%		265	%
Allowance for loan losses as a percentage
	of total period-end loans		0.96	%		0.96	%		0.95	%		0.99	%		1.03	%
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.