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

Metro Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	At or for the									At or for the
	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
							%									%
(in  thousands,  except  per  share  amounts)	2009			2008			Change			2009			2008			Change
Income Statement Data:
Net interest income	$	18,575		$	21,383			(13	) %	$	75,606		$	78,705			(4	) %
Provision for loan losses		1,800			3,400			(47	)		12,425			7,475			66
Noninterest income		7,178			6,582			9			24,457			25,433			(4	)
Total revenues		25,753			27,965			(8	)		100,063			104,138			(4	)
Noninterest operating expenses		25,646			20,570			25			91,710			77,909			18
Net income (loss)		(890	)		2,756			(132	)		(1,898	)		12,901			(115	)
Per Common Share Data:
Net  income (loss):  Basic	$	(0.07	)	$	0.43			(116	) %	$	(0.24	)	$	2.02			(112	) %
Net  income (loss):  Diluted		(0.07	)		0.42			(117	)		(0.24	)		1.97			(112	)
Book Value										$	14.80		$	17.60			(16	) %
Weighted average shares outstanding:
Basic		13,348			6,397						8,241			6,356
Diluted		13,348			6,546						8,241			6,520
Balance Sheet Data:
Total assets										$	2,147,759		$	2,140,527			0	%
Loans (net)											1,429,392			1,423,064			0
Allowance for loan losses											14,391			16,719			(14	)
Investment securities											506,651			494,243			3
Total deposits											1,814,733			1,633,985			11
Core deposits											1,783,319			1,625,092			10
Stockholders' equity											200,022			114,470			75
Capital:
Stockholders' equity to total assets											9.31	%		5.35	%
Leverage ratio											11.31			7.44
Risk based capital ratios:
Tier 1											13.87			9.67
Total Capital											14.71			10.68
Performance Ratios:
Cost of funds		1.06	%		1.28	%					1.16	%		1.70	%
Deposit cost of funds		0.94			1.16						1.02			1.42
Net interest margin		3.74			4.20						3.81			4.09
Return on average assets		(0.17	)		0.52						(0.09	)		0.64
Return on average total stockholders' equity		(1.76	)		9.76						(1.34	)		11.42
Asset Quality:
Net charge-offs to average loans outstanding											1.02	%		0.11	%
Nonperforming assets to total year-end assets											2.12			1.30
Allowance for loan losses to total year-end loans											1.00			1.16
Allowance for loan losses to nonperforming loans											38			62
Nonperforming assets to capital and reserves											21			21

Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Quarter ending,																					Year-to-date,
	December 2009							September 2009							December 2008							December 2009							December 2008
	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	$	498,732	$	4,827		3.87	%	$	460,538	$	4,638		4.04	%	$	546,047	$	6,467		4.74	%	$	489,970	$	19,858		4.05	%	$	575,402	$	28,401		4.94	%
Tax-exempt		1,624		25		6.07			1,624		25		6.19			1,622		25		6.17			1,624		100		6.16			1,622		101		6.23
Total securities		500,356		4,852		3.88			462,162		4,663		4.05			547,669		6,492		4.74			491,594		19,958		4.06			577,024		28,502		4.94
Federal funds sold		5,457		2		0.13			0		0		0.00			0		0		0.00			1,375		2		0.13			0		0		0.00
Loans receivable:
Mortgage and construction		730,256		10,305		5.54			744,218		10,673		5.63			723,049		11,153		6.05			748,184		42,502		5.66			652,907		42,457		6.41
Commercial loans and lines of credit		379,724		4,494		4.64			393,545		4,837		4.82			373,748		5,268		5.52			377,897		18,875		4.95			349,590		21,814		6.14
Consumer		219,349		2,980		5.38			229,160		3,038		5.25			265,847		3,909		5.85			244,569		12,736		5.20			244,625		14,976		6.12
Tax-exempt		118,006		1,845		6.15			109,348		1,705		6.14			99,502		1,617		6.50			106,572		6,683		6.23			79,124		5,272		6.66
Total loans receivable		1,447,335		19,624		5.33			1,476,271		20,253		5.39			1,462,146		21,947		5.91			1,477,222		80,796		5.44			1,326,246		84,519		6.30
Total earning assets	$	1,953,148	$	24,478		4.94	%	$	1,938,433	$	24,916		5.07	%	$	2,009,815	$	28,439		5.59	%	$	1,970,191	$	100,756		5.09	%	$	1,903,270	$	113,021		5.89	%
Sources of Funds
Interest-bearing deposits:
Regular savings	$	308,961	$	435		0.56	%	$	329,348	$	464		0.56	%	$	363,773	$	761		0.83	%	$	329,799	$	1,930		0.59	%	$	351,291	$	3,849		1.10	%
Interest checking and money market		888,560		2,003		0.89			811,911		1,877		0.92			753,670		2,249		1.19			795,835		7,342		0.92			727,783		11,160		1.53
Time deposits		250,009		1,744		2.77			256,835		1,923		2.97			193,063		1,575		3.25			254,086		7,750		3.05			187,467		6,595		3.52
Public funds time		30,310		67		0.88			15,606		50		1.28			8,830		72		3.24			17,557		265		1.51			16,338		607		3.72
Total interest-bearing deposits		1,477,840		4,249		1.14			1,413,700		4,314		1.21			1,319,336		4,657		1.40			1,397,277		17,287		1.24			1,282,879		22,211		1.73
Short-term borrowings		40,192		62		0.60			140,009		226		0.63			325,477		603		0.72			172,870		1,038		0.59			265,518		5,349		1.98
Other borrowed money		25,000		275		4.29			38,587		430		4.36			50,000		561		4.39			40,822		1,807		4.37			50,000		2,230		4.39
Junior subordinated debt		29,400		661		9.00			29,400		661		9.00			29,400		661		8.99			29,400		2,645		9.00			29,400		2,645		9.00
Total interest-bearing liabilities		1,572,432		5,247		1.32			1,621,696		5,631		1.38			1,724,213		6,482		1.49			1,640,369		22,777		1.39			1,627,797		32,435		1.98
Noninterest-bearing funds (net)		380,716							316,737							285,602							329,822							275,473
Total sources to fund earning assets	$	1,953,148	$	5,247		1.06	%	$	1,938,433	$	5,631		1.15	%	$	2,009,815	$	6,482		1.28	%	$	1,970,191	$	22,777		1.16	%	$	1,903,270	$	32,435		1.70	%
Net interest income and margin
on a tax-equivalent basis			$	19,231		3.88	%			$	19,285		3.92	%			$	21,957		4.31	%			$	77,979		3.93	%			$	80,586		4.19	%
Tax-exempt adjustment				656							606							574							2,373							1,881
Net interest income and margin			$	18,575		3.74	%			$	18,679		3.79	%			$	21,383		4.20	%			$	75,606		3.81	%			$	78,705		4.09	%
Other Balances:
Cash and due from banks	$	46,702						$	47,805						$	42,237						$	43,665						$	44,699
Other assets		99,482							84,074							70,996							84,889							80,605
Total assets		2,099,332							2,070,312							2,123,048							2,098,745							2,028,574
Demand deposits (noninterest-bearing)		306,146							311,506							272,871							303,963							276,120
Other liabilities		19,600							4,487							13,581							12,258							11,687
Stockholders' equity		201,154							132,623							112,383							142,155							112,970

Metro Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	12/31/2009			12/31/2008			12/31/2009			12/31/2008
(dollar amounts in thousands)	Three Months Ended						Twelve Months Ended
Balance at beginning of period	$	14,618		$	13,888		$	16,719		$	10,742
Provisions charged to operating expense		1,800			3,400			12,425			7,475
		16,418			17,288			29,144			18,217
Recoveries on loans charged-off:
Commercial		(47	)		13			92			145
Consumer		1			1			6			25
Real estate		169			0			210			0
Total recoveries		123			14			308			170
Loans charged-off:
Commercial		(1,181	)		(542	)		(7,405	)		(1,426	)
Consumer		0			(41	)		(21	)		(173	)
Real estate		(969	)		0			(7,635	)		(69	)
Total charged-off		(2,150	)		(583	)		(15,061	)		(1,668	)
Net charge-offs		(2,027	)		(569	)		(14,753	)		(1,498	)
Balance at end of period	$	14,391		$	16,719		$	14,391		$	16,719
Net charge-offs (annualized) as a percentage of
average loans outstanding		0.56	%		0.16	%		1.02	%		0.11	%
Allowance for loan losses as a percentage of
period-end loans		1.00	%		1.16	%		1.00	%		1.16	%

Metro Bancorp, Inc. and Subsidiaries
Summary of Nonperforming Loans and Assets
(unaudited)
The following table presents information regarding nonperforming loans and assets as of December 31, 2009 and for the preceding four quarters
(dollar amounts in thousands).
	December 31,			September 30,			June 30,			March 31,			December 31,
	2009			2009			2009			2009			2008
Nonaccrual loans:
Commercial	$	14,403		$	8,833		$	8,240		$	8,479		$	6,863
Consumer		654			984			882			724			492
Real Estate:
Construction		3,969			4,580			6,045			7,870			7,646
Real Estate		18,719			10,694			16,628			12,348			12,121
Total nonaccrual loans		37,745			25,091			31,795			29,421			27,122
Loans past due 90 days or more
and still accruing		0			5			0			0			0
Renegotiated loans		0			0			0			0			0
Total nonperforming loans		37,745			25,096			31,795			29,421			27,122
Foreclosed real estate		7,821			6,875			1,650			989			743
Total nonperforming assets	$	45,566		$	31,971		$	33,445		$	30,410		$	27,865
Nonperforming loans to total loans		2.61	%		1.71	%		2.19	%		2.03	%		1.88	%
Nonperforming assets to total assets		2.12	%		1.53	%		1.61	%		1.44	%		1.30	%
Nonperforming loan coverage		38	%		58	%		61	%		55	%		62	%
Allowance for loan losses as a percentage
of total period-end loans		1.00	%		0.99	%		1.33	%		1.12	%		1.16	%
Nonperforming assets / capital plus allowance for loan losses		21	%		15	%		24	%		22	%		21	%