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

Exhibit 99.2
Metro Bancorp, Inc.
Selected Consolidated Financial Data
	At or for the															At or for the
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			September 30,									September 30,			September 30,
(in  thousands,  except  per  share  amounts)	2010			2010			Change			2009			Change			2010			2009				Change
Income Statement Data:
Net interest income	$	19,987		$	19,984			0	%	$	18,679			7	%	$	59,404		$	57,031				4	%
Provision for loan losses		13,400			2,600			415			3,725			260			18,400			10,625				73
Noninterest income		7,640			7,259			5			6,853			11			20,845			17,279				21
Total revenues		27,627			27,243			1			25,532			8			80,249			74,310				8
Noninterest operating expenses		24,159			24,521			(1	)		22,799			6			72,555			66,064				10
Net income (loss)		(6,160	)		360						(490	)					(5,794	)		(1,008	)			(475	)
Per Common Share Data:
Net  income (loss):  Basic	$	(0.46	)		0.02					$	(0.08	)				$	(0.43	)	$	(0.16	)			(169	) %
Net  income (loss):  Diluted		(0.46	)		0.02						(0.08	)					(0.43	)		(0.16	)			(169	)
Book Value																$	15.29		$	15.22				0
Weighted average shares outstanding:
Basic		13,581			13,509						6,591						13,520			6,520
Diluted		13,581			13,514						6,591						13,520			6,520
Balance Sheet Data:
Total assets	$	2,232,021		$	2,195,666			2	%							$	2,232,021		$	2,086,495				7	%
Loans (net)		1,374,743			1,424,919			(4	)								1,374,743			1,456,636				(6	)
Allowance for loan losses		21,169			16,178			31									21,169			14,618				45
Investment securities		635,930			548,670			16									635,930			393,820				61
Total deposits		1,928,684			1,833,626			5									1,928,684			1,736,961				11
Core deposits		1,885,510			1,786,413			6									1,885,510			1,721,859				10
Stockholders' equity		209,796			208,837			0									209,796			195,722				7
Capital:
Stockholders' equity to total assets					9.51	%											9.40	%		9.38		%
Leverage ratio					10.99												10.76			11.10
Risk based capital ratios:
Tier 1					13.75												14.00			13.07
Total Capital					14.67												15.25			13.89
Performance Ratios:
Cost of funds		0.83	%		0.87	%					1.15	%					0.88	%		1.19		%
Deposit cost of funds		0.70			0.73						0.99						0.75			1.04
Net interest margin		3.86			3.89						3.79						3.87			3.82
Return on average assets		(1.11	)		0.07						(0.09	)					(0.36	)		(0.06	)
Return on average total stockholders' equity		(11.54	)		0.70						(1.47	)					(3.75	)		(1.10	)
Asset Quality:
Net charge-offs (annualized) to average loans outstanding					0.45	%											1.09	%		1.17		%
Nonperforming assets to total period-end assets					3.22												2.83			1.53
Allowance for loan losses to total period-end loans					1.12												1.52			0.99
Allowance for loan losses to nonperforming loans					26												38			58
Nonperforming assets to capital and reserves					31												27			15

Metro Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
		September 30,		December 31,
	( dollars in  thousands,  except  share  and per share amounts)	2010		2009
Assets	Cash and cash equivalents	$	43,299	$	40,264
	Federal funds sold		-		-
	Cash and cash equivalents		43,299		40,264
	Securities, available for sale at fair value		409,067		388,836
	Securities, held to maturity at cost
	(fair value 2010: $230,607;  2009: $119,926 )		226,863		117,815
	Loans, held for sale		18,867		12,712
	Loans receivable, net of allowance for loan losses
	(allowance 2010: $21,169 &  2009: $14,391)		1,374,743		1,429,392
	Restricted investments in bank stock		21,695		21,630
	Premises and equipment, net		90,451		93,780
	Other assets		47,036		43,330
	Total assets	$	2,232,021	$	2,147,759
Liabilities	Deposits:
	Noninterest-bearing	$	341,029	$	319,850
	Interest-bearing		1,587,655		1,494,883
	Total deposits		1,928,684		1,814,733
	Short-term borrowings and repurchase agreements		14,600		51,075
	Long-term debt		54,400		54,400
	Other liabilities		24,541		27,529
	Total liabilities		2,022,225		1,947,737
Stockholders'	Preferred stock - Series A noncumulative; $10.00 par value
Equity	1,000,000 shares authorized; 40,000 shares issued and outstanding		400		400
	Common stock - $1.00 par value;  25,000,000 shares authorized;
	issued and outstanding shares - 2010: 13,650,356 &  2009: 13,448,447		13,650		13,448
	Surplus		150,296		147,340
	Retained earnings		43,851		49,705
	Accumulated other comprehensive income (loss )		1,599		(10,871	)
	Total stockholders' equity		209,796		200,022
	Total liabilities and stockholders' equity	$	2,232,021	$	2,147,759

Metro Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
		Three Months						Nine Months
		Ending September 30,						Ending September 30,
	(dollars in thousands, except per share amounts)	2010			2009			2010				2009
Interest	Loans  receivable,  including  fees :
Income	Taxable	$	17,712		$	18,548		$	52,838			$	56,334
	Tax - exempt		1,206			1,108			3,506				3,147
	Securities :
	Taxable		5,320			4,638			16,370				15,031
	Tax - exempt		-			16			14				49
	Federal  funds  sold		10			-			11				-
	Total  interest  income		24,248			24,310			72,739				74,561
Interest	Deposits		3,271			4,314			10,296				13,038
Expense	Short-term borrowings		55			226			242				976
	Long-term debt		935			1,091			2,797				3,516
	Total  interest  expense		4,261			5,631			13,335				17,530
	Net  interest  income		19,987			18,679			59,404				57,031
	Provision  for  loan  losses		13,400			3,725			18,400				10,625
	Net  interest  income  after  provision  for  loan  losses		6,587			14,954			41,004				46,406
Noninterest	Service charges, fees and other operating income		6,791			6,052			19,666				17,740
Income	Gains on sales of loans		778			238			1,105				294
	Total fees and other income		7,569			6,290			20,771				18,034
	Other-than-temporary impairment losses		(1,908	)		(6,819	)		(1,463	)	��		(4,912	)
	Portion of loss recognized in other comprehensive income (before taxes)		1,862			5,867			501				2,587
	Net impairment loss on investment securities		(46	)		(952	)		(962	)			(2,325	)
	Gains on sales/call of securities		117			1,515			1,036				1,570
	Total  noninterest  income		7,640			6,853			20,845				17,279
Noninterest	Salaries  and  employee  benefits		10,466			10,643			31,097				31,941
Expenses	Occupancy and equipment		3,447			3,228			10,431				9,375
	Advertising  and  marketing		698			830			2,140				1,875
	Data  processing		3,334			2,537			9,870				6,739
	Regulatory assessments and related fees		1,191			830			3,405				3,256
	Foreclosed real estate		420			94			1,369				289
	Consulting fees		965			161			2,667				342
	Core system conversion/branding (net)		-			(911	)		-				(523	)
	Mergers/acquisition		-			250			17				655
	Other		3,638			5,137			11,559				12,115
	Total  noninterest  expenses		24,159			22,799			72,555				66,064
	Income  (loss) before taxes		(9,932	)		(992	)		(10,706	)			(2,379	)
	Benefit for federal income taxes		(3,772	)		(502	)		(4,912	)			(1,371	)
	Net  income (loss)	$	(6,160	)	$	(490	)	$	(5,794	)		$	(1,008	)
	Net  income (loss) per  common share :
	Basic	$	(0.46	)	$	(0.08	)	$	(0.43	)		$	(0.16	)
	Diluted		(0.46	)		(0.08	)		(0.43	)			(0.16	)
	Average Common and Common Equivalent Shares Outstanding:
	Basic		13,581			6,591			13,520				6,520
	Diluted		13,581			6,591			13,520				6,520

Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Quarter ending,	Year-to-date,

	September 2010							June 2010							September 2009							September 2010							September 2009
	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	$	571,177	$	5,320		3.73	%	$	594,251	$	5,651		3.80	%	$	460,538	$	4,638		4.03	%	$	578,793	$	16,370		3.77		$	487,017	$	15,031		4.12	%
Tax-exempt		-		-		-			-		-		-			1,624		25		6.19			446		20		6.07			1,623		74		6.19
Total securities		571,177		5,320		3.73			594,251		5,651		3.80			462,162		4,663		4.04			579,239		16,390		3.77			488,640		15,105		4.12
Federal funds sold		32,518		10		0.13			557		-		0.12			-		-		-			12,804		11		0.12			-		-		-
Loans receivable:
Mortgage and   construction		742,825		10,362		5.47			724,186		10,111		5.53			744,218		10,673		5.63			730,576		30,737		5.56			748,641		32,197		5.68
Commercial loans   and lines of credit		363,524		4,582		4.94			393,584		4,689		4.72			393,545		4,837		4.82			376,929		13,735		4.81			382,866		14,381		4.96
Consumer		212,168		2,768		5.17			212,117		2,789		5.27			229,160		3,038		5.25			213,125		8,366		5.24			253,068		9,756		5.15
Tax-exempt		119,778		1,827		6.02			115,544		1,778		6.12			109,348		1,705		6.14			116,807		5,312		6.03			102,719		4,841		6.26
Total loans receivable		1,438,295		19,539		5.34			1,445,431		19,367		5.32			1,476,271		20,253		5.39			1,437,437		58,150		5.35			1,487,294		61,175		5.47
Total earning assets	$	2,041,990	$	24,869		4.80	%	$	2,040,239	$	25,018		4.88	%	$	1,938,433	$	24,916		5.07	%	$	2,029,480	$	74,551		4.87	%	$	1,975,934	$	76,280		5.13	%
Sources of Funds
Interest-bearing deposits:
Regular savings	$	316,626	$	367		0.46	%	$	340,056	$	404		0.48	%	$	329,348	$	464		0.56	%	$	326,618	$	1,158		0.47		$	336,821	$	1,495		0.59	%
Interest checking   and money market		960,166		1,570		0.65			913,655		1,619		0.71			811,911		1,877		0.92			932,112		4,985		0.71			764,587		5,339		0.93
Time deposits		212,490		1,259		2.35			213,819		1,282		2.41			256,835		1,923		2.97			218,151		3,971		2.43			255,461		6,006		3.14
Public funds time		44,743		75		0.67			30,142		53		0.71			15,606		50		1.28			34,715		182		0.70			13,259		198		1.99
Total interest-bearing deposits		1,534,025		3,271		0.85			1,497,672		3,358		0.90			1,413,700		4,314		1.21			1,511,596		10,296		0.91			1,370,128		13,038		1.27
Short-term borrowings		34,262		55		0.63			76,388		121		0.63			140,009		226		0.63			53,900		242		0.59			217,583		976		0.59
Other borrowed money		25,000		274		4.29			25,000		271		4.29			38,587		430		4.36			25,000		813		4.29			46,154		1,532		4.38
Junior subordinated debt		29,400		661		9.00			29,400		662		9.00			29,400		661		9.00			29,400		1,984		9.00			29,400		1,984		9.00
Total interest-bearing liabilities		1,622,687		4,261		1.04			1,628,460		4,412		1.09			1,621,696		5,631		1.38			1,619,896		13,335		1.10			1,663,265		17,530		1.41
Demand deposits (noninterest-bearing)		331,925							337,524							311,506							331,627							303,227
Sources to fund earning assets		1,954,612		4,261		0.86			1,965,984		4,412		0.90			1,933,202		5,631		1.15			1,951,523		13,335		0.91			1,966,492		17,530		1.19
Noninterest-bearing funds (net)		87,378							74,255							5,231							77,957							9,442
Total sources  to fund earning assets	$	2,041,990	$	4,261		0.83	%	$	2,040,239	$	4,412		0.87	%	$	1,938,433	$	5,631		1.15	%	$	2,029,480	$	13,335		0.88	%	$	1,975,934	$	17,530		1.19	%
Net interest income and margin
on a tax-equivalent basis			$	20,608		3.98	%			$	20,606		4.01	%			$	19,285		3.92	%			$	61,216		3.99	%			$	58,750		3.94	%
Tax-exempt adjustment				621							622							606							1,812							1,719
Net interest income and margin			$	19,987		3.86	%			$	19,984		3.89	%			$	18,679		3.79	%			$	59,404		3.87	%			$	57,031		3.82	%
Other Balances:
Cash and due from banks	$	44,695						$	44,736						$	47,805						$	44,088						$	42,641
Other assets		106,814							96,224							84,074							100,596							79,879
Total assets		2,193,499							2,181,199							2,070,312							2,174,164							2,098,454
Other liabilities		27,062							9,932							4,487							16,238							9,689
Stockholders' equity		211,825							205,283							132,623							206,403							122,273

Metro Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	Three Months Ended						Year-ended			Nine Months Ended
(dollar amounts in thousands)	9/30/2010			9/30/2009			12/31/2009			9/30/2010			9/30/2009
Balance at beginning of period	$	16,178		$	19,337		$	16,719		$	14,391		$	16,719
Provisions charged to operating expense		13,400			3,725			12,425			18,400			10,625
		29,578			23,062			29,144			32,791			27,344
Recoveries on loans charged-off:
Commercial		143			19			92			391			139
Consumer		5			0			6			7			5
Real estate		14			35			210			40			41
Total recoveries		162			54			308			438			185
Loans charged-off:
Commercial		(3,786	)		(3,878	)		(7,405	)		(5,540	)		(6,224	)
Consumer		(36	)		(2	)		(21	)		(117	)		(21	)
Real estate		(4,749	)		(4,618	)		(7,635	)		(6,403	)		(6,666	)
Total charged-off		(8,571	)		(8,498	)		(15,061	)		(12,060	)		(12,911	)
Net charge-offs		(8,409	)		(8,444	)		(14,753	)		(11,622	)		(12,726	)
Balance at end of period	$	21,169		$	14,618		$	14,391		$	21,169		$	14,618
Net charge-offs (annualized) as a percentage of
average loans outstanding		2.35	%		2.29	%		1.02	%		1.09	%		1.17	%
Allowance for loan losses as a percentage of
period-end loans		1.52	%		0.99	%		1.00	%		1.52	%		0.99	%

Metro 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, 2010 and for the preceding four quarters
(dollar amounts in thousands).
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009
Nonaccrual loans:
Commercial	$	21,536		$	25,327		$	13,142		$	14,254		$	8,683
Consumer		1,871			1,437			1,064			654			984
Real Estate:
Construction		15,120			17,879			17,424			11,771			7,605
Mortgage		17,021			17,723			14,419			11,066			7,819
Total nonaccrual loans		55,548			62,366			46,049			37,745			25,091
Loans past due 90 days or more
and still accruing		628			687			249			0			5
Renegotiated loans		178			171			0			0			0
Total nonperforming loans		56,354			63,224			46,298			37,745			25,096
Foreclosed real estate		6,815			7,367			7,154			7,821			6,875
Total nonperforming assets	$	63,169		$	70,591		$	53,452		$	45,566		$	31,971
Nonperforming loans to total loans		4.04	%		4.39	%		3.28	%		2.61	%		1.71	%
Nonperforming assets to total assets		2.83	%		3.22	%		2.46	%		2.12	%		1.53	%
Nonperforming loan coverage		38	%		26	%		33	%		38	%		58	%
Allowance for loan losses as a percentage
of total period-end loans		1.52	%		1.12	%		1.08	%		1.00	%		0.99	%
Nonperforming assets / capital plus allowance for loan losses		27	%		31	%		24	%		21	%		15	%