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)	2008			2007			Change			2008			2007			Change
Income Statement Data:
Net interest income	$	19,652		$	15,190			29	%	$	57,322		$	42,672			34	%
Provision for loan losses		1,700			537			217			4,075			1,517			169
Noninterest income		6,365			5,816			9			18,851			16,691			13
Total revenues		26,017			21,006			24			76,173			59,363			28
Noninterest operating expenses		19,361			17,838			9			57,339			51,636			11
Net income		3,433			1,851			85			10,145			4,534			124
Per Common Share Data:
Net  income:  Basic	$	0.54		$	0.29			86	%	$	1.59		$	0.72			121	%
Net  income:  Diluted		0.52			0.28			86			1.55			0.69			125
Book Value										$	17.74		$	17.11			4	%
Weighted average shares outstanding:
Basic		6,358			6,259						6,342			6,217
Diluted		6,531			6,469						6,511			6,443
Balance Sheet Data:
Total assets										$	2,125,279		$	2,015,486			5	%
Loans (net)											1,369,149			1,104,322			24
Allowance for loan losses											13,888			10,673			30
Investment securities											551,436			721,041			(24	)
Total deposits											1,689,760			1,641,887			3
Core deposits											1,681,250			1,621,390			4
Stockholders' equity											114,070			108,321			5
Capital:
Stockholders' equity to total assets											5.37	%		5.37	%
Leverage ratio											7.58			7.30
Risk based capital ratios:
Tier 1											9.81			9.87
Total Capital											10.68			10.62
Performance Ratios:
Cost of funds		1.71	%		3.16	%					1.85	%		3.29	%
Deposit cost of funds		1.16			2.31						1.26			2.49
Net interest margin		4.00			3.36						4.05			3.20
Return on average assets		0.66			0.38						0.68			0.32
Return on average total stockholders' equity		11.96			6.91						11.98			5.79
Asset Quality:
Net charge-offs to average loans outstanding											0.07	%		0.05	%
Nonperforming assets to total period-end assets											0.57			0.19
Allowance for loan losses to total period-end loans											1.00			0.96
Allowance for loan losses to nonperforming loans											119			319
Nonperforming assets to capital and reserves											10	%		3	%

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

(unaudited)

	Quarter ending,
	September 2008							June 2008							September 2007
	Average				Average			Average				Average			Average					Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance			Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	567,050	$	6,898		4.87	%	$	572,632	$	7,109		4.97	%	$	682,415		$	9,154		5.37	%
Tax-exempt		1,622		25		6.17			1,622		25		6.17			1,620			25		6.17
Total securities		568,672		6,923		4.87			574,254		7,134		4.97			684,035			9,179		5.37
Federal funds sold		0		0		0.00			0		0		0.00			0			0		0.00
Loans receivable
Mortgage and construction		685,816		11,063		6.33			622,055		10,248		6.53			539,964			10,030		7.29
Commercial loans and lines of credit		347,373		5,309		5.98			344,512		5,373		6.17			301,787			6,083		7.89
Consumer		249,658		3,807		6.07			235,819		3,543		6.04			210,156			3,620		6.83
Tax-exempt		87,694		1,442		6.58			72,240		1,227		6.79			48,025			828		6.90
Total loans receivable		1,370,541		21,621		6.21			1,274,626		20,391		6.36			1,099,932			20,561		7.35
Total earning assets	$	1,939,213	$	28,544		5.82	%	$	1,848,880	$	27,525		5.93	%	$	1,783,967		$	29,740		6.59	%
Sources of Funds
Interest-bearing deposits
Regular savings	$	355,971	$	999		1.12	%	$	335,255	$	889		1.07	%	$	373,663		$	2,266		2.41	%
Interest checking and money market		756,066		3,003		1.58			694,178		2,548		1.48			704,352			6,091		3.43
Time deposits		191,451		1,582		3.29			199,025		1,788		3.61			173,084			1,817		4.16
Public funds time		9,158		75		3.26			24,607		223		3.64			18,290	��		230		4.99
Total interest-bearing deposits		1,312,646		5,659		1.72			1,253,065		5,448		1.75			1,269,389			10,404		3.25
Short-term borrowings		268,202		1,497		2.18			236,957		1,338		2.23			217,130			2,906		5.24
Other borrowed money		50,000		561		4.39			50,000		554		4.38			25,815			289		4.38
Junior subordinated debt		29,400		661		8.99			29,400		661		8.99			29,400			661		8.99
Total interest-bearing liabilities		1,660,248		8,378		2.00			1,569,422		8,001		2.04			1,541,734			14,260		3.66
Noninterest-bearing funds (net)		278,965							279,458							242,233
Total sources to fund earning assets	$	1,939,213	$	8,378		1.71	%	$	1,848,880	$	8,001		1.73	%	$	1,783,967		$	14,260		3.16	%
Net interest income and margin
on a tax-equivalent basis			$	20,166		4.11	%			$	19,524		4.20	%				$	15,480		3.43	%
Tax-exempt adjustment				514							437								290
Net interest income and margin			$	19,652		4.00	%			$	19,087		4.10	%				$	15,190		3.36	%
Other Balances:
Cash and due from banks	$	45,820						$	43,842						$	55,115
Other assets		78,488							83,137							90,536
Total assets		2,063,521							1,975,859							1,929,618
Demand deposits (noninterest-bearing)		277,592							283,693							274,089
Other liabilities		11,528							10,577							7,591
Stockholders' equity		114,153							112,167							106,204

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Year-to-date,
	September 2008							September 2007
	Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities
Taxable	$	585,259	$	21,934		5.00	%	$	691,202	$	27,641		5.33	%
Tax-exempt		1,622		75		6.17			1,620		74		6.09
Total securities		586,881		22,009		5.00			692,822		27,715		5.33
Federal funds sold		0		0		0.00			0		0		0.00
Loans receivable
Mortgage and construction		629,356		31,304		6.55			516,237		28,199		7.22
Commercial loans and lines of credit		341,479		16,546		6.37			305,285		18,419		7.96
Consumer		237,500		11,067		6.22			201,906		10,277		6.81
Tax-exempt		72,282		3,654		6.74			44,894		2,299		6.83
Total loans receivable		1,280,617		62,571		6.45			1,068,322		59,194		7.33
Total earning assets	$	1,867,498	$	84,580		5.99	%	$	1,761,144	$	86,909		6.55	%
Sources of Funds
Interest-bearing deposits
Regular savings	$	347,100	$	3,088		1.19	%	$	375,575	$	7,121		2.53	%
Interest checking and money market		719,092		8,911		1.66			693,072		19,081		3.68
Time deposits		185,587		5,020		3.61			188,093		5,942		4.22
Public funds time		18,859		535		3.79			18,575		685		4.93
Total interest-bearing deposits		1,270,638		17,554		1.85			1,275,315		32,829		3.44
Short-term borrowings		245,386		4,746		2.54			207,157		8,329		5.30
Other borrowed money		50,000		1,669		4.39			8,700		289		4.38
Junior subordinated debt		29,400		1,984		9.00			29,400		1,983		8.99
Total interest-bearing liabilities		1,595,424		25,953		2.16			1,520,572		43,430		3.81
Noninterest-bearing funds (net)		272,074							240,572
Total sources to fund earning assets	$	1,867,498	$	25,953		1.85	%	$	1,761,144	$	43,430		3.29	%
Net interest income and margin
on a tax-equivalent basis			$	58,627		4.14	%			$	43,479		3.26	%
Tax-exempt adjustment				1,305							807
Net interest income and margin			$	57,322		4.05	%			$	42,672		3.20	%
Other Balances:
Cash and due from banks	$	45,526						$	51,803
Other assets		83,831							90,364
Total assets		1,996,855							1,903,311
Demand deposits (noninterest-bearing)		277,212							270,346
Other liabilities		11,051							7,736
Stockholders' equity		113,168							104,657

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	9/30/2008			9/30/2007			Year-ended			9/30/2008			9/30/2007
(dollar amounts in thousands)	Three Months Ended						12/31/2007			Nine Months Ended
Balance at beginning of period	$	12,210		$	10,358		$	9,685		$	10,742		$	9,685
Provisions charged to operating expense		1,700			537			1,762			4,075			1,517
		13,910			10,895			11,447			14,817			11,202
Recoveries on loans charged-off:
Commercial		1			2			11			132			4
Consumer		1			9			53			24			23
Real estate		0			0			8			0			8
Total recoveries		2			11			72			156			35
Loans charged-off:
Commercial		0			(207	)		(634	)		(884	)		(469	)
Consumer		(24	)		(2	)		(69	)		(132	)		(69	)
Real estate		0			(24	)		(74	)		(69	)		(26	)
Total charged-off		(24	)		(233	)		(777	)		(1,085	)		(564	)
Net charge-offs		(22	)		(222	)		(705	)		(929	)		(529	)
Balance at end of period	$	13,888		$	10,673		$	10,742		$	13,888		$	10,673
Net charge-offs as a percentage of
average loans outstanding		0.00	%		0.02	%		0.07	%		0.07	%		0.05	%
Allowance for loan losses as a percentage of
period-end loans		1.00	%		0.96	%		0.93	%		1.00	%		0.96	%

Pennsylvania Commerce Bancorp, Inc. and Subsidiaries
Summary of Nonperforming Loans and Assets
(unaudited)
The following table presents information regarding nonperforming loans and assets as of September 30, 2008 and for the preceding four quarters
(dollar amounts in thousands).
	September 30,			June 30,			March 31,			December 31,			September 30,
	2008			2008			2008			2007			2007
Nonaccrual loans:
Commercial	$	7,083		$	2,577		$	1,158		$	534		$	997
Consumer		164			125			120			57			57
Real Estate:
Construction		731			735			284			385			529
Real Estate		3,657			3,433			2,183			1,959			1,767
Total nonaccrual loans		11,635			6,870			3,745			2,935			3,350
Loans past due 90 days or more
and still accruing		33			6,036			15			0			0
Renegotiated loans		0			0			0			0			0
Total nonperforming loans		11,668			12,906			3,760			2,935			3,350
Foreclosed real estate		535			421			588			489			390
Total nonperforming assets	$	12,203		$	13,327		$	4,348		$	3,424		$	3,740
Nonperforming loans to total loans		0.84	%		0.98	%		0.31	%		0.25	%		0.30	%
Nonperforming assets to total assets		0.57	%		0.65	%		0.22	%		0.17	%		0.19	%
Nonperforming loan coverage		119	%		95	%		309	%		366	%		319	%
Allowance for loan losses as a percentage
of total period-end loans		1.00	%		0.93	%		0.96	%		0.93	%		0.96	%
Nonperforming assets / capital plus allowance for loan losses		10	%		11	%		4	%		3	%		3	%