CONTACTS
|
| |
| Gary L. Nalbandian | Mark A. Zody |
| Chairman/President | Chief Financial Officer |
(717) 412-6301
METRO BANCORP REPORTS RECORD QUARTERLY
NET INCOME OF $4.7 MILLION; EPS UP 136% AND LOANS GROW 13%
October 21, 2013 - Harrisburg, PA - Metro Bancorp, Inc. (Metro or the Company) (NASDAQ Global Select Market Symbol: METR), parent company of Metro Bank, today reported record quarterly net income of $4.7 million, or $0.33 per common share, for the quarter ended September 30, 2013, compared to net income of $2.0 million, or $0.14 per common share for the third quarter of 2012. The Company also reported net loan growth of $195.9 million, or 13%, over the past twelve months.
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| | | | | | | | | | | | | | | | | |
| Financial Highlights |
| (in millions, except per share data) |
| | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| | | | % | | | | % |
| | 09/30/13 | 09/30/12 | Change | | 09/30/13 | 09/30/12 | Increase |
| Total assets | $ | 2,756.0 |
| $ | 2,538.4 |
| 9 | % | | | | |
| | | | | | | | |
| Total loans (net) | 1,675.3 |
| 1,479.4 |
| 13 | % | | | | |
| | | | | | | | |
| Total deposits | 2,177.1 |
| 2,243.9 |
| (3 | )% | | | | |
| | | | | | | | |
| | | | | | | | |
| Total revenues | $ | 30.4 |
| $ | 28.9 |
| 5 | % | | $ | 90.0 |
| $ | 87.4 |
| 3 | % |
| | | | | | | | |
| Net income | 4.7 |
| 2.0 |
| 135 | % | | 12.4 |
| 7.4 |
| 66 | % |
| | | | | | | | |
| Diluted net income per common share | $ | 0.33 |
| $ | 0.14 |
| 136 | % | | $ | 0.86 |
| $ | 0.52 |
| 65 | % |
| | | | | | | | |
“We are very pleased with our record quarterly net income of $4.7 million which reflects our continued progress with increasing revenues and disciplined expense management. Our double digit growth in net loans of 13% demonstrates our ability to successfully grow our loan portfolio in this challenging economic environment. This performance shows our continued commitment to creating long-term shareholder value” said Gary L. Nalbandian, the Company's Chairman and Chief Executive Officer.
Highlights for the Third Quarter Ended September 30, 2013
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| • | The Company recorded net income of $4.7 million, or $0.33 per diluted share, for the third quarter of 2013 compared to net income of $2.0 million, or $0.14 per diluted share, for the same period one year ago, a $2.7 million, or 135%, increase. Financial results for the third quarter and first nine months last year included the impact of a one-time non-recurring regulatory expense of $1.5 million. Excluding that expense, net income and diluted earnings per share would have been $3.5 million and $0.25, respectively for the third quarter one year ago. Net income for the first nine months of 2013 totaled $12.4 million, or $0.86 per diluted share, up $4.9 million, or 66%, over $7.4 million, or $0.52 per diluted share recorded for the first nine months of 2012. |
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| • | Total revenues for the third quarter of 2013 were $30.4 million, up $1.5 million, or 5%, over total revenues of $28.9 million for the same quarter one year ago and were up $450,000, or 2%, over total revenues of $29.9 million for the previous quarter. Total revenues for the first nine months of 2013 increased $2.6 million, or 3%, over the first nine months of 2012. |
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| • | Noninterest expenses were basically flat versus the previous quarter and down $610,000, or 3%, from the same quarter one year ago. Total noninterest expenses for the first nine months of 2013 were down $1.5 million, or 2%, compared to the first nine months of 2012. |
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| • | The Company's net interest margin on a fully-taxable basis for the third quarter of 2013 was 3.58%, compared to 3.62% recorded in the second quarter of 2013 and compared to 3.85% for the third quarter of 2012. The Company's deposit cost of funds for the third quarter was 0.28%, down from 0.29% for the previous quarter and compared to 0.35% for the same period one year ago. |
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| • | Net loans grew $69.4 million, or 4%, on a linked quarter basis to $1.68 billion and were up $195.9 million, or 13%, over the third quarter 2012. |
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| • | The provision for loan losses totaled $1.2 million for the third quarter of 2013, compared to $1.8 million for the previous quarter and compared to $2.5 million for the third quarter one year ago. Our allowance for loan losses totaled $27.4 million, or 1.61%, of total loans at September 30, 2013 as compared to $25.6 million, or 1.70%, of total loans at September 30, 2012. |
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| • | Nonperforming assets were 1.71% of total assets at September 30, 2013, compared to 1.81% of total assets for the previous quarter and compared to 1.67% of total assets one year ago. |
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| • | Total deposits at the end of the third quarter of 2013 were $2.18 billion, down $66.9 million, or 3%, compared to third quarter one year ago. |
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| • | Metro's capital levels remain strong with a total risk-based capital ratio of 14.79%, a Tier 1 Leverage ratio of 9.42% and a tangible common equity to tangible assets ratio of 8.34%. |
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| • | Stockholders' equity totaled $230.9 million, or 8.38% of total assets, at the end of the third quarter. At September 30, 2013, the Company's book value per share was $16.25. The market price of Metro's common stock has increased by 66% from $12.67 per share at September 30, 2012 to $21.01 per share at September 30, 2013. |
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| • | Return on average shareholders equity was 8.14% for the third quarter of 2013, compared to 6.90% for the previous quarter and compared to 3.44% for the same period last year. |
Income Statement
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| | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
(dollars in thousands, except per share data) | 2013 | | 2012 | % Change | | 2013 | | 2012 | % Change |
| Total revenues | $ | 30,383 |
| | $ | 28,926 |
| 5 | % | | $ | 90,026 |
| | $ | 87,413 |
| 3 | % |
| Provision for loan losses | 1,200 |
| | 2,500 |
| (52 | ) | | 5,300 |
| | 7,950 |
| (33 | ) |
| Total noninterest expenses | 22,443 |
| | 23,053 |
| (3 | ) | | 67,132 |
| | 68,658 |
| (2 | ) |
| Net income | 4,676 |
| | 1,992 |
| 135 |
| | 12,369 |
| | 7,438 |
| 66 |
|
| Diluted net income per share | $ | 0.33 |
| | $ | 0.14 |
| 136 | % | | $ | 0.86 |
| | $ | 0.52 |
| 65 | % |
Metro recorded net income of $4.7 million, or $0.33 per diluted share, for the third quarter of 2013 compared to net income of $2.0 million, or $0.14 per diluted share, for the third quarter of 2012. On a linked quarter basis, net income increased $628,000, or 16%, and diluted earnings per share were up $0.05, or 18%.
Net income for the first nine months of 2013 was $12.4 million compared to $7.4 million recorded in the first nine months of 2012, up 66%. Diluted earnings per share for the first nine months of 2013 were $0.86 compared to $0.52 for the same period last year, a 65% increase.
Total revenues (net interest income plus noninterest income) for the third quarter of 2013 were $30.4 million, up $1.5 million, or 5%, over the third quarter of 2012. Total revenues for the first nine months of 2013 were $90.0 million, up $2.6 million, or 3%, over the first nine months of 2012.
Noninterest expenses for the quarter totaled $22.4 million, down $610,000, or 3%, compared to the same period in 2012 and were consistent on a linked quarter basis. Total noninterest expenses for the first nine months of 2013 were $67.1 million, down $1.5 million, or 2%, from the same period last year.
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2013 totaled $22.9 million, up $1.1 million, or 5%, over the $21.8 million recorded in the third quarter of 2012. For the first nine months of 2013, net interest income totaled $67.8 million versus $65.4 million for the same period in 2012, a 4% increase.
Average interest-earning assets for the third quarter of 2013 totaled $2.59 billion versus $2.55 billion for the previous quarter and were up $297.8 million, or 13%, over the third quarter of 2012. Average interest-bearing deposits totaled $1.69 billion for the third quarter of 2013, up $23.5 million, or 1%, over the same period of 2012 and average noninterest-bearing deposits for the quarter were $431.4 million, up $14.4 million, or 3%, over the third quarter last year. Total interest expense for the quarter was down $478,000, or 19%, from the third quarter of 2012 as a result of a 13 basis points (bps) reduction in the Company's overall total cost of all funds over the past twelve months.
Average interest-earning assets for the first nine months of 2013 totaled $2.54 billion versus $2.28 billion for the first nine months of 2012, an 11% increase. Total interest income on a tax equivalent basis for the first nine months of 2013 was up $961,000, or 1%, over the same period last year. Total interest expense for the first nine months was down $1.7 million, or 22%, from the first nine months of 2012.
The net interest margin for the third quarter of 2013 was 3.49%, down 3 bps from the 3.52% recorded for the previous quarter and down 26 bps from the third quarter one year ago. The net interest margin on a fully-taxable basis for the third quarter of 2013 was 3.58%, down 4 bps from the previous quarter and down 27 bps compared to 3.85% for the third quarter of 2012.
The net interest margin for the first nine months of 2013 was 3.53%, down 25 bps from the 3.78% recorded for the for the first nine months of 2012. On a fully-taxable basis, the net interest margin for the first nine months of 2013 was 3.62%, compared to 3.87% for the first nine months of 2012.
The Bank's deposit cost of funds for the third quarter of 2013 was 0.28%, down from 0.29% the previous quarter, and down 7 bps from 0.35% recorded in the third quarter one year ago. The total cost of all funding sources for the third quarter was 0.32%, compared to 0.33% for the previous quarter and down 13 basis points from the same period in 2012.
Change in Net Interest Income and Rate/Volume Analysis
As shown in the following table, the increase in net interest income on a fully tax-equivalent basis for the third quarter and for the first nine months of 2013 over the same periods of 2012 was primarily due to an increase in the level of interest earning assets. Lower yields on interest earning assets were partially offset by a reduction in the Company's cost of funds.
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| | | | | | |
| (dollars in thousands) | | Tax Equivalent Net Interest Income |
| 2013 vs. 2012 | | Volume Change | Rate Change | Total Increase | % Increase | |
| 3rd Quarter | | $2,649 | $(1,526) | $1,123 | 5% | |
| Nine Months | | $7,064 | $(4,377) | $2,687 | 4% | |
Noninterest Income
Noninterest income for the third quarter of 2013 totaled $7.5 million, up $368,000, or 5%, over the third quarter one year ago. Service charges and fees for the third quarter were $7.4 million, an increase of $535,000, or 8%, over the third quarter last year while net gains on the sale of loans totaled $148,000 for the third quarter of 2013 versus $352,000 for the same period in 2012.
Noninterest income for the first nine months of 2013 increased by $176,000, or 1%, compared to the first nine months of 2012. Service charges and fees were up 3% for the first nine months of 2013 compared to 2012 and gains on the sale of loans were $811,000 during the first nine months of 2013 compared to $953,000 for the same period of 2012. Net gains on sales of securities during the first nine months of 2013 were $21,000 compared to net gains of $959,000 in the first nine months of 2012. During the first nine months of 2013 there were no OTTI losses compared to $649,000 in OTTI charges on private-label CMOs in the Bank's investment portfolio for the first nine months of 2012.
The breakdown of noninterest income for the third quarter and for the first nine months of 2013 and 2012, respectively, is shown in the table below:
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| | | | | | | | | | | | | | | | | |
| | Three months ended
September 30, | | Nine months ended
September 30, |
| (dollars in thousands) | 2013 | 2012 | % Change | | 2013 | 2012 | % Change |
| Service charges, fees and other income | $ | 7,368 |
| $ | 6,833 |
| 8 | % | | $ | 21,393 |
| $ | 20,786 |
| 3 | % |
| Net gains on sales of loans | 148 |
| 352 |
| (58 | ) | | 811 |
| 953 |
| (15 | ) |
| Net gains (losses) on sales/calls of securities | — |
| (37 | ) | (100 | ) | | 21 |
| 959 |
| (98 | ) |
| Credit impairment losses on investment securities | — |
| — |
| — |
| | — |
| (649 | ) | (100 | ) |
| Total noninterest income | $ | 7,516 |
| $ | 7,148 |
| 5 | % | | $ | 22,225 |
| $ | 22,049 |
| 1 | % |
Noninterest Expenses
Noninterest expenses for the third quarter of 2013 were $22.4 million, down $610,000, or 3%, compared to $23.1 million recorded in the third quarter one year ago. For the first nine months of 2013, noninterest expenses totaled $67.1 million, down $1.5 million, or 2%, from $68.7 million recorded for the first nine months of 2012.
The breakdown of noninterest expenses for the third quarter and for the first nine months of 2013 and 2012, respectively, are shown in the table below:
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| | | | | | | | | | | | | | | | | |
| | Three months ended
September 30, | | Nine months ended
September 30, |
| (dollars in thousands) | 2013 | 2012 | % Change | | 2013 | 2012 | % Change |
| Salaries and employee benefits | $ | 10,761 |
| $ | 10,021 |
| 7 | % | | $ | 31,977 |
| $ | 30,725 |
| 4 | % |
| Occupancy and equipment | 3,319 |
| 3,265 |
| 2 |
| | 9,864 |
| 9,902 |
| — |
|
| Advertising and marketing | 610 |
| 446 |
| 37 |
| | 1,427 |
| 1,247 |
| 14 |
|
| Data processing | 3,206 |
| 3,220 |
| — |
| | 9,688 |
| 9,883 |
| (2 | ) |
| Regulatory assessments and related costs | 588 |
| 1,847 |
| (68 | ) | | 1,673 |
| 3,522 |
| (52 | ) |
| Foreclosed real estate | 54 |
| 399 |
| (86 | ) | | 269 |
| 1,543 |
| (83 | ) |
| Other expenses | 3,905 |
| 3,855 |
| 1 |
| | 12,234 |
| 11,836 |
| 3 |
|
| Total noninterest expenses | $ | 22,443 |
| $ | 23,053 |
| (3 | )% | | $ | 67,132 |
| $ | 68,658 |
| (2 | )% |
Balance Sheet
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| | | | | | | | |
| | As of September 30, | |
| (dollars in thousands) | 2013 | 2012 | % Increase |
| Total assets | $ | 2,755,982 |
| $ | 2,538,361 |
| 9 | % |
| | | | |
| Total loans (net) | 1,675,251 |
| 1,479,394 |
| 13 | % |
| | | | |
| Total deposits | 2,177,071 |
| 2,243,932 |
| (3 | )% |
| | | | |
| Total core deposits | 2,113,207 |
| 2,185,270 |
| (3 | )% |
| | | | |
| Total stockholders' equity | 230,941 |
| 231,822 |
| — | % |
Lending
Gross loans totaled $1.70 billion at September 30, 2013, an increase of $197.7 million, or 13%, compared to September 30, 2012. The Company experienced loan growth in all but one category over the past twelve months. The composition of the Company's loan portfolio at September 30, 2013 and September 30, 2012 was as follows:
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| | | | | | | | | | | | | | | | | | |
| (dollars in thousands) | September 30, 2013 | % of Total | | September 30, 2012 | % of Total | | $ Change | % Change | |
| Commercial and industrial | $ | 435,508 |
| 26 | % | | $ | 347,099 |
| 23 | % | | $ | 88,409 |
| 25 | % | |
| Commercial tax-exempt | 82,507 |
| 5 |
| | 88,934 |
| 6 |
| | (6,427 | ) | (7 | ) | |
| Owner occupied real estate | 300,555 |
| 18 |
| | 274,235 |
| 18 |
| | 26,320 |
| 10 |
| |
Commercial construction and land development | 124,376 |
| 7 |
| | 107,311 |
| 7 |
| | 17,065 |
| 16 |
| |
| Commercial real estate | 450,611 |
| 26 |
| | 393,182 |
| 26 |
| | 57,429 |
| 15 |
| |
| Residential | 94,227 |
| 5 |
| | 82,989 |
| 6 |
| | 11,238 |
| 14 |
| |
| Consumer | 214,892 |
| 13 |
| | 211,240 |
| 14 |
| | 3,652 |
| 2 |
| |
| Gross loans | $ | 1,702,676 |
| 100 | % | | $ | 1,504,990 |
| 100 | % | | $ | 197,686 |
| 13 | % | |
Asset Quality
The Company's asset quality ratios are highlighted below:
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| | | | | | | | | |
| | Quarters Ended |
| | September 30, 2013 | | June 30, 2013 | | September 30, 2012 | |
| Nonperforming assets/total assets | 1.71 | % | | 1.81 | % | | 1.67 | % | |
| Net loan charge-offs (annualized)/average total loans | 0.43 | % | | 0.31 | % | | 0.81 | % | |
| Loan loss allowance/total loans | 1.61 | % | | 1.72 | % | | 1.70 | % | |
| Nonperforming loan coverage | 63 | % | | 64 | % | | 68 | % | |
| Nonperforming assets/capital and reserves | 18 | % | | 19 | % | | 16 | % | |
Nonperforming assets decreased during the third quarter by $1.1 million, to $47.1 million, or 1.71%, of total assets at September 30, 2013, from $48.1 million, or 1.81%, of total assets at June 30, 2013, and compared to $42.3 million, or 1.67%, of total assets one year ago. The primary reason for the overall decrease during the third quarter of 2013 was the result of the sale of three foreclosed asset properties which totaled $993,000 combined with net charge-offs of $1.8 million. A total of $1.4 million, or 79%, of the total net charge-offs for the third quarter of 2013 was associated with one loan relationship which originated in 2006.
Total net charge-offs for the third quarter of 2013 were $1.8 million, versus $1.2 million for the previous quarter and compared to $3.1 million for the third quarter of 2012. Net charge-offs for the first nine months of 2013 totaled $3.2 million, down $817,000, or 21%, from 2012.
The Company recorded a provision for loan losses of $1.2 million for the third quarter of 2013 as compared to $1.8 million for the previous quarter and to $2.5 million recorded in the third quarter of 2012. The allowance for loan losses totaled $27.4 million as of September 30, 2013 as compared to $28.0 million at June 30, 2013 and to $25.6 million at September 30, 2012. The allowance represented 1.61% of gross loans outstanding at September 30, 2013, compared to 1.72% at June 30, 2013 and 1.70% at September 30, 2012.
Deposits
The Company's deposit balances at September 30, 2013 were $2.18 billion, compared to total deposits of $2.24 billion one year ago. Change in core deposits by type of account is as follows:
|
| | | | | | | | | | | | | |
| | As of September 30, | | | | |
| (dollars in thousands) | 2013 | | 2012 | | % Change | | 3rd Quarter 2013 Cost of Funds |
| Demand noninterest-bearing | $ | 436,013 |
| | $ | 451,443 |
| | (3 | )% | | 0.00 | % |
| Demand interest-bearing | 1,140,569 |
| | 1,149,453 |
| | (1 | ) | | 0.28 |
|
| Savings | 416,681 |
| | 436,005 |
| | (4 | ) | | 0.30 |
|
| Subtotal | 1,993,263 |
| | 2,036,901 |
| | (2 | ) | | 0.22 |
|
| Time | 119,944 |
| | 148,369 |
| | (19 | ) | | 1.19 |
|
| Total core deposits | $ | 2,113,207 |
| | $ | 2,185,270 |
| | (3 | )% | | 0.28 | % |
Total core deposits (excluding time deposits) decreased $43.6 million, or 2%, over the past twelve months. The cost of core deposits, excluding time deposits, during the third quarter of 2013 was 0.22%, the same as the previous quarter and down 5 bps from the third quarter one year ago. The cost of total core deposits for the third quarter of 2013 was 0.28%, down 1 bps on a linked quarter basis and down 7 bps from the same period in 2012.
Change in core deposits by type of customer is as follows:
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| | | | | | | | | | | | | | | |
| | September 30, | % of | | September 30, | % of | | % | |
| (dollars in thousands) | 2013 | Total | | 2012 | Total | | Increase | |
| Consumer | $ | 935,166 |
| 44 | % | | $ | 942,344 |
| 43 | % | | (1 | )% | |
| Commercial | 648,963 |
| 31 |
| | 668,161 |
| 31 |
| | (3 | ) | |
| Government | 529,078 |
| 25 |
| | 574,765 |
| 26 |
| | (8 | ) | |
| Total | $ | 2,113,207 |
| 100 | % | | $ | 2,185,270 |
| 100 | % | | (3 | )% | |
Investments
At September 30, 2013, the Company's investment portfolio totaled $889.4 million, up $25.9 million, or 3%, on a linked quarter basis and up $96.5 million, or 12%, compared to September 30, 2012. Detailed below is information regarding the composition and characteristics of the portfolio at September 30, 2013:
|
| | | | | | | | | | | | |
| Product Description | Available for Sale | | Held to Maturity | | Total | |
| (dollars in thousands) | | | | | | |
| U.S. Government agencies/other | $ | 30,372 |
| | $ | 149,093 |
| | $ | 179,465 |
| |
| Mortgage-backed securities: | | | | | | |
| Federal government agencies pass through certificates | 65,061 |
| | 16,793 |
| | 81,854 |
| |
| Agency collateralized mortgage obligations | 491,032 |
| | 103,361 |
| | 594,393 |
| |
| Corporate debt securities | — |
| | 5,000 |
| | 5,000 |
| |
| Municipal securities | 25,686 |
| | 2,977 |
| | 28,663 |
| |
| Total | $ | 612,151 |
| | $ | 277,224 |
| | $ | 889,375 |
| |
| Duration (in years) | 5.0 |
| | 6.6 |
| | 5.5 |
| |
| Average life (in years) | 5.6 |
| | 7.7 |
| | 6.3 |
| |
| Quarterly average yield (annualized) | 2.22 | % | | 2.62 | % | | 2.33 | % | |
At September 30, 2013, after-tax unrealized losses on the Bank's available for sale portfolio were $10.6 million, as compared to after-tax unrealized gains of $7.4 million at September 30, 2012. This change is a direct result of the steep decline in market prices for fixed rate investments which has occurred over the past two quarters.
Capital
Stockholders' equity at September 30, 2013 totaled $230.9 million, compared to $231.8 million at September 30, 2012. The decrease is primarily the net result of recorded net income over the past twelve months offset by the after-tax net decrease in the fair market value of the Company's investment securities available for sale portfolio. Return on average stockholders' equity (ROE) for the third quarter of 2013 was 8.14%, compared to 6.90% for the previous quarter and up over the 3.44% for the third quarter last year.
The Company's capital ratios at September 30, 2013 and 2012 were as follows:
|
| | | | | | |
| | 9/30/2013 | 9/30/2012 | Regulatory Guidelines “Well Capitalized” |
| Leverage ratio | 9.42 | % | 10.18 | % | 5.00 | % |
| Tier 1 | 13.54 |
| 14.50 |
| 6.00 |
|
| Total capital | 14.79 |
| 15.76 |
| 10.00 |
|
Both the Company and its subsidiary bank continue to maintain strong capital ratios and are well capitalized under various regulatory capital guidelines as required by federal banking agencies.
At September 30, 2013, the Company's book value per common share was $16.25.
The market price of Metro's common stock increased by 66% from $12.67 per common share at September 30, 2012 to $21.01 per common share at September 30, 2013.
Forward-Looking Statements
This document contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to as the Securities Act and Section 21E of the Securities Exchange Act of 1934, which we refer to as the Exchange Act, with respect to the financial condition, liquidity, results of operations, future performance and business of Metro Bancorp, Inc. These forward-looking statements are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan" and similar expressions are intended to identify forward-looking statements.
While we believe our plans, objectives, goals, expectations, anticipations, estimates and intentions as reflected in these forward-looking statements are reasonable, we can give no assurance that any of them will be achieved. You should understand that various factors, in addition to those discussed elsewhere in this document, could affect our future results and could cause results to differ materially from those expressed in these forward-looking statements, including:
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| • | the effects of and changes in, trade, monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve System, including the duration of such policies; |
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| • | general economic or business conditions, either nationally, regionally or in the communities in which we do business, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and loan performance or a reduced demand for credit; |
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| • | the effects of ongoing short and long-term federal budget and tax negotiations and their effects on economic and business conditions in general and our customers in particular; |
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| • | the effects of the failure of the federal government to reach a deal to permanently raise the debt ceiling and the potential negative results on economic and business conditions; |
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| • | the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and other changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); |
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| • | possible impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements; |
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| • | continued effects of the aftermath of recessionary conditions and the impacts on the economy in general and our customers in particular, including adverse impacts on loan utilization rates as well as delinquencies, defaults and customers' ability to meet credit obligations; |
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| • | our ability to manage current levels of impaired assets; |
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| • | continued levels of loan volume origination; |
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| • | the adequacy of the allowance for loan losses (allowance or ALL); |
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| • | the impact of changes in Regulation Z and other consumer credit protection laws and regulations; |
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| • | changes resulting from legislative and regulatory actions with respect to the current economic and financial industry environment; |
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| • | changes in the Federal Deposit Insurance Corporation (FDIC) deposit fund and the associated premiums that banks pay to the fund; |
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| • | interest rate, market and monetary fluctuations; |
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| • | the results of the regulatory examination and supervision process; |
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| • | unanticipated regulatory or legal proceedings and liabilities and other costs; |
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| • | compliance with laws and regulatory requirements of federal, state and local agencies; |
| |
| • | our ability to continue to grow our business internally or through acquisitions and successful integration of new or acquired entities while controlling costs; |
| |
| • | the willingness of customers to substitute competitors’ products and services for our products and services and vice versa, based on price, quality, relationship or otherwise; |
| |
| • | changes in consumer spending and saving habits relative to the financial services we provide; |
| |
| • | the ability to hedge certain risks economically; |
| |
| • | the loss of certain key officers; |
| |
| • | changes in accounting principles, policies and guidelines; |
| |
| • | the timely development of competitive new products and services by us and the acceptance of such products and services by customers; |
| |
| • | rapidly changing technology; |
| |
| • | continued relationships with major customers; |
| |
| • | effect of terrorist attacks and threats of actual war; |
| |
| • | other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services; |
| |
| • | interruption or breach in security of our information systems resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit systems; and |
| |
| • | our success at managing the risks involved in the foregoing. |
Because such forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. The foregoing list of important factors is not exclusive and you are cautioned not to place undue reliance on these factors or any of our forward-looking statements, which speak only as of the date of this document or, in the case of documents incorporated by reference, the dates of those documents. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of us except as required by applicable law.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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) | 2013 | | 2013 | | Change | | 2012 | | Change | | 2013 | | 2012 | | Change |
| Income Statement Data: | | | | | | | | | | | | | | | |
| Net interest income | $ | 22,867 |
| | $ | 22,599 |
| | 1 | % | | $ | 21,778 |
| | 5 | % | | $ | 67,801 |
| | $ | 65,364 |
| | 4 | % |
| Provision for loan losses | 1,200 |
| | 1,800 |
| | (33 | ) | | 2,500 |
| | (52 | ) | | 5,300 |
| | 7,950 |
| | (33 | ) |
| Noninterest income | 7,516 |
| | 7,334 |
| | 2 |
| | 7,148 |
| | 5 |
| | 22,225 |
| | 22,049 |
| | 1 |
|
| Total revenues | 30,383 |
| | 29,933 |
| | 2 |
| | 28,926 |
| | 5 |
| | 90,026 |
| | 87,413 |
| | 3 |
|
| Noninterest expenses | 22,443 |
| | 22,360 |
| | — |
| | 23,053 |
| | (3 | ) | | 67,132 |
| | 68,658 |
| | (2 | ) |
| Net income | 4,676 |
| | 4,048 |
| | 16 |
| | 1,992 |
| | 135 |
| | 12,369 |
| | 7,438 |
| | 66 |
|
| Per Common Share Data: | | | | | | | | | | | | | | | |
| Net income per common share: | | | | | | | | | | | | | | | |
| Basic | $ | 0.33 |
| | $ | 0.28 |
| | 18 | % | | $ | 0.14 |
| | 136 | % | | $ | 0.87 |
| | $ | 0.52 |
| | 67 | % |
| Diluted | 0.33 |
| | 0.28 |
| | 18 |
| | 0.14 |
| | 136 |
| | 0.86 |
| | 0.52 |
| | 65 |
|
| | | | | | | | | | | | | | | | |
| Book Value | | | $ | 16.09 |
| | | | | | | | $ | 16.25 |
| | $ | 16.33 |
| | — |
|
| | | | | | | | | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | |
| Basic | 14,145 |
| | 14,137 |
| | | | 14,129 |
| | | | 14,138 |
| | 14,128 |
| | |
| Diluted | 14,315 |
| | 14,243 |
| | | | 14,129 |
| | | | 14,248 |
| | 14,128 |
| | |
| Balance Sheet Data: | | | | | | | | | | | | | | | |
| Total assets | $ | 2,755,982 |
| | $ | 2,658,405 |
| | 4 | % | | | | | | $ | 2,755,982 |
| | $ | 2,538,361 |
| | 9 | % |
| Loans (net) | 1,675,251 |
| | 1,605,828 |
| | 4 |
| | | | | | 1,675,251 |
| | 1,479,394 |
| | 13 |
|
| Allowance for loan losses | 27,425 |
| | 28,038 |
| | (2 | ) | | | | | | 27,425 |
| | 25,596 |
| | 7 |
|
| Investment securities | 889,375 |
| | 863,462 |
| | 3 |
| | | | | | 889,375 |
| | 792,909 |
| | 12 |
|
| Total deposits | 2,177,071 |
| | 2,168,759 |
| | — |
| | | | | | 2,177,071 |
| | 2,243,932 |
| | (3 | ) |
| Core deposits | 2,113,207 |
| | 2,102,450 |
| | 1 |
| | | | | | 2,113,207 |
| | 2,185,270 |
| | (3 | ) |
| Stockholders' equity | 230,941 |
| | 228,468 |
| | 1 |
| | | | | | 230,941 |
| | 231,822 |
| | — |
|
| Capital: | | | | | | | | | | | | | | | |
| Total stockholders' equity to assets | | | 8.59 | % | | | | | | | | 8.38 | % | | 9.13 | % | | |
| Leverage ratio | | | 9.37 |
| | | | | | | | 9.42 |
| | 10.18 |
| | |
| Risk based capital ratios: | | | | | | | | | | | | | | | |
| Tier 1 | | | 13.63 |
| | | | | | | | 13.54 |
| | 14.50 |
| | |
| Total Capital | | | 14.89 |
| | | | | | | | 14.79 |
| | 15.76 |
| | |
| Performance Ratios: | | | | | | | | | | | | | | | |
| Deposit cost of funds | 0.28 | % | | 0.29 | % | | | | 0.35 | % | | | | 0.29 | % | | 0.39 | % | | |
| Cost of funds | 0.32 |
| | 0.33 |
| | | | 0.45 |
| | | | 0.34 |
| | 0.48 |
| | |
| Net interest margin | 3.49 |
| | 3.52 |
| | | | 3.75 |
| | | | 3.53 |
| | 3.78 |
| | |
| Return on average assets | 0.69 |
| | 0.60 |
| | | | 0.32 |
| | | | 0.62 |
| | 0.41 |
| | |
| Return on average stockholders' equity | 8.14 |
| | 6.90 |
| | | | 3.44 |
| | | | 7.10 |
| | 4.37 |
| | |
| Asset Quality: | | | | | | | | | | | | | | | |
Net charge-offs (annualized) to average loans outstanding | 0.43 | % | | 0.31 | % | | | | 0.81 | % | | | | 0.26 | % | | 0.36 | % | | |
Nonperforming assets to total period-end assets | 1.71 |
| | 1.81 |
| | | | | | | | 1.71 |
| | 1.67 |
| | |
Allowance for loan losses to total period-end loans | 1.61 |
| | 1.72 |
| | | | | | | | 1.61 |
| | 1.70 |
| | |
Allowance for loan losses to period-end nonperforming loans | 63 |
| | 64 |
| | | | | | | | 63 |
| | 68 |
| | |
Nonperforming assets to capital and allowance | 18 |
| | 19 |
| | | | | | | | 18 |
| | 16 |
| | |
|
| | | | | | | |
| Metro Bancorp, Inc. and Subsidiaries |
| Consolidated Balance Sheets |
| | | | |
| | September 30, | | December 31, |
| | 2013 | | 2012 |
| (in thousands, except share and per share amounts) | (Unaudited) | | |
| | | | |
| Assets | | | |
| Cash and cash equivalents | $ | 59,382 |
| | $ | 56,582 |
|
| Securities, available for sale at fair value | 612,151 |
| | 675,109 |
|
| Securities, held to maturity at cost (fair value 2013: $262,976; 2012: $273,671) | 277,224 |
| | 269,783 |
|
| Loans, held for sale | 5,011 |
| | 15,183 |
|
Loans receivable, net of allowance for loan losses
(allowance 2013: $27,425; 2012: $25,282) | 1,675,251 |
| | 1,503,515 |
|
| Restricted investments in bank stock | 18,538 |
| | 15,450 |
|
| Premises and equipment, net | 76,447 |
| | 78,788 |
|
| Other assets | 31,978 |
| | 20,465 |
|
| Total assets | $ | 2,755,982 |
| | $ | 2,634,875 |
|
| | |
| | |
|
| Liabilities and Stockholders' Equity | |
| | |
|
| Deposits: | |
| | |
|
| Noninterest-bearing | $ | 436,013 |
| | $ | 455,000 |
|
| Interest-bearing | 1,741,058 |
| | 1,776,291 |
|
| Total deposits | 2,177,071 |
| | 2,231,291 |
|
| Short-term borrowings | 316,225 |
| | 113,225 |
|
| Long-term debt | 15,800 |
| | 40,800 |
|
| Other liabilities | 15,945 |
| | 14,172 |
|
| Total liabilities | 2,525,041 |
| | 2,399,488 |
|
| Stockholders' Equity: | |
| | |
|
| Preferred stock - Series A noncumulative; $10.00 par value; $1,000,000 liquidation preference; | | | |
| (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 2013: 14,150,737; 2012: 14,131,263) | 14,151 |
| | 14,131 |
|
| Surplus | 158,415 |
| | 157,305 |
|
| Retained earnings | 68,620 |
| | 56,311 |
|
| Accumulated other comprehensive income (loss) | (10,645 | ) | | 7,240 |
|
| Total stockholders' equity | 230,941 |
| | 235,387 |
|
| Total liabilities and stockholders' equity | $ | 2,755,982 |
| | $ | 2,634,875 |
|
|
| | | | | | | | | | | | | | | |
| Metro Bancorp, Inc. and Subsidiaries | | | | | | | |
| Consolidated Statements of Income (Unaudited) | | | | | | | |
| | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| (in thousands, except per share amounts) | 2013 | | 2012 | | 2013 | | 2012 |
| Interest Income | | | | | | | |
| Loans receivable, including fees: | | | | | | | |
| Taxable | $ | 18,752 |
| | $ | 18,084 |
| | $ | 55,239 |
| | $ | 53,919 |
|
| Tax-exempt | 908 |
| | 929 |
| | 2,744 |
| | 2,693 |
|
| Securities: | | | | | | | |
| Taxable | 5,021 |
| | 5,094 |
| | 15,387 |
| | 16,332 |
|
| Tax-exempt | 185 |
| | 148 |
| | 553 |
| | 267 |
|
| Federal funds sold | — |
| | — |
| | — |
| | 1 |
|
| Total interest income | 24,866 |
| | 24,255 |
| | 73,923 |
| | 73,212 |
|
| Interest Expense | | | | | |
| | |
|
| Deposits | 1,503 |
| | 1,842 |
| | 4,647 |
| | 5,924 |
|
| Short-term borrowings | 189 |
| | 43 |
| | 501 |
| | 170 |
|
| Long-term debt | 307 |
| | 592 |
| | 974 |
| | 1,754 |
|
| Total interest expense | 1,999 |
| | 2,477 |
| | 6,122 |
| | 7,848 |
|
| Net interest income | 22,867 |
| | 21,778 |
| | 67,801 |
| | 65,364 |
|
| Provision for loan losses | 1,200 |
| | 2,500 |
| | 5,300 |
| | 7,950 |
|
| Net interest income after provision for loan losses | 21,667 |
| | 19,278 |
| | 62,501 |
| | 57,414 |
|
| Noninterest Income | | | | | |
| | |
|
| Service charges, fees and other operating income | 7,368 |
| | 6,833 |
| | 21,393 |
| | 20,786 |
|
| Net gains on sales of loans | 148 |
| | 352 |
| | 811 |
| | 953 |
|
| Total fees and other income | 7,516 |
| | 7,185 |
| | 22,204 |
| | 21,739 |
|
| Net impairment loss on investment securities | — |
| | — |
| | — |
| | (649 | ) |
| Net gains (losses) on sales/calls of securities | — |
| | (37 | ) | | 21 |
| | 959 |
|
| Total noninterest income | 7,516 |
| | 7,148 |
|
| 22,225 |
|
| 22,049 |
|
| Noninterest Expenses | | | | | |
| | |
|
| Salaries and employee benefits | 10,761 |
| | 10,021 |
| | 31,977 |
| | 30,725 |
|
| Occupancy and equipment | 3,319 |
| | 3,265 |
| | 9,864 |
| | 9,902 |
|
| Advertising and marketing | 610 |
| | 446 |
| | 1,427 |
| | 1,247 |
|
| Data processing | 3,206 |
| | 3,220 |
| | 9,688 |
| | 9,883 |
|
| Regulatory assessments and related costs | 588 |
| | 1,847 |
| | 1,673 |
| | 3,522 |
|
| Foreclosed real estate | 54 |
| | 399 |
| | 269 |
| | 1,543 |
|
| Other | 3,905 |
| | 3,855 |
| | 12,234 |
| | 11,836 |
|
| Total noninterest expenses | 22,443 |
| | 23,053 |
| | 67,132 |
| | 68,658 |
|
| Income before taxes | 6,740 |
| | 3,373 |
| | 17,594 |
| | 10,805 |
|
| Provision for federal income taxes | 2,064 |
| | 1,381 |
| | 5,225 |
| | 3,367 |
|
| Net income | $ | 4,676 |
| | $ | 1,992 |
| | $ | 12,369 |
| | $ | 7,438 |
|
| Net Income per Common Share | | | | | |
| | |
|
| Basic | $ | 0.33 |
| | $ | 0.14 |
| | $ | 0.87 |
| | $ | 0.52 |
|
| Diluted | 0.33 |
| | 0.14 |
| | 0.86 |
| | 0.52 |
|
| Average Common and Common Equivalent Shares Outstanding | | | | | |
| | |
|
| Basic | 14,145 |
| | 14,129 |
| | 14,138 |
| | 14,128 |
|
| Diluted | 14,315 |
| | 14,129 |
| | 14,248 |
| | 14,128 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income |
| (unaudited) |
| | | | | | | | | | | | | | | | |
| | Quarter ended, | Year-to-date, |
| | | | | | | | | | | | | | | | |
| | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 |
| | Average | | Avg. | Average | | Avg. | Average | | Avg. | Average | | Avg. | Average | | Avg. |
| | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate |
| (dollars in thousands) | | | | | | | | | | | | | | | |
| Earning Assets | | | | | | | | | | | | | | | |
| Investment securities: | | | | | | | | | | | | | | | |
| Taxable | $ | 881,068 |
| $ | 5,021 |
| 2.28 | % | $ | 889,510 |
| $ | 5,007 |
| 2.25 | % | $ | 755,138 |
| $ | 5,094 |
| 2.70 | % | $ | 895,782 |
| $ | 15,387 |
| 2.29 | % | $ | 784,101 |
| $ | 16,332 |
| 2.78 | % |
| Tax-exempt | 29,873 |
| 284 |
| 3.80 |
| 29,871 |
| 284 |
| 3.80 |
| 24,572 |
| 225 |
| 3.67 |
| 29,871 |
| 851 |
| 3.80 |
| 14,285 |
| 405 |
| 3.78 |
|
| Total securities | 910,941 |
| 5,305 |
| 2.33 |
| 919,381 |
| 5,291 |
| 2.30 |
| 779,710 |
| 5,319 |
| 2.73 |
| 925,653 |
| 16,238 |
| 2.34 |
| 798,386 |
| 16,737 |
| 2.80 |
|
| Federal funds sold | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 3,601 |
| 1 |
| 0.05 |
|
| Total loans receivable | 1,674,334 |
| 20,150 |
| 4.73 |
| 1,628,073 |
| 19,908 |
| 4.85 |
| 1,507,731 |
| 19,491 |
| 5.08 |
| 1,619,215 |
| 59,460 |
| 4.86 |
| 1,480,517 |
| 57,999 |
| 5.17 |
|
| Total earning assets | $ | 2,585,275 |
| $ | 25,455 |
| 3.88 | % | $ | 2,547,454 |
| $ | 25,199 |
| 3.93 | % | $ | 2,287,441 |
| $ | 24,810 |
| 4.28 | % | $ | 2,544,868 |
| $ | 75,698 |
| 3.94 | % | $ | 2,282,504 |
| $ | 74,737 |
| 4.33 | % |
| Sources of Funds | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | |
| Regular savings | $ | 458,105 |
| $ | 348 |
| 0.30 | % | $ | 424,474 |
| $ | 335 |
| 0.32 | % | $ | 408,213 |
| $ | 367 |
| 0.36 | % | $ | 432,453 |
| $ | 1,009 |
| 0.31 | % | $ | 394,997 |
| $ | 1,088 |
| 0.37 | % |
| Interest checking and money market | 1,039,800 |
| 735 |
| 0.28 |
| 1,039,872 |
| 733 |
| 0.28 |
| 1,043,502 |
| 889 |
| 0.34 |
| 1,052,330 |
| 2,270 |
| 0.29 |
| 1,023,718 |
| 2,903 |
| 0.38 |
|
| Time deposits | 123,044 |
| 368 |
| 1.19 |
| 130,015 |
| 397 |
| 1.22 |
| 151,313 |
| 533 |
| 1.40 |
| 130,506 |
| 1,212 |
| 1.24 |
| 161,071 |
| 1,763 |
| 1.46 |
|
| Public time and other noncore deposits | 65,145 |
| 52 |
| 0.32 |
| 59,894 |
| 60 |
| 0.40 |
| 59,610 |
| 53 |
| 0.36 |
| 60,026 |
| 156 |
| 0.35 |
| 53,551 |
| 170 |
| 0.42 |
|
| Total interest-bearing deposits | 1,686,094 |
| 1,503 |
| 0.35 |
| 1,654,255 |
| 1,525 |
| 0.37 |
| 1,662,638 |
| 1,842 |
| 0.44 |
| 1,675,315 |
| 4,647 |
| 0.37 |
| 1,633,337 |
| 5,924 |
| 0.48 |
|
| Short-term borrowings | 329,868 |
| 189 |
| 0.22 |
| 325,044 |
| 181 |
| 0.22 |
| 69,041 |
| 43 |
| 0.24 |
| 294,978 |
| 501 |
| 0.22 |
| 95,041 |
| 170 |
| 0.23 |
|
| Long-term debt | 15,800 |
| 307 |
| 7.77 |
| 15,800 |
| 307 |
| 7.77 |
| 49,200 |
| 592 |
| 4.80 |
| 22,760 |
| 974 |
| 5.70 |
| 49,200 |
| 1,754 |
| 4.75 |
|
| Total interest-bearing liabilities | 2,031,762 |
| 1,999 |
| 0.39 |
| 1,995,099 |
| 2,013 |
| 0.40 |
| 1,780,879 |
| 2,477 |
| 0.55 |
| 1,993,053 |
| 6,122 |
| 0.41 |
| 1,777,578 |
| 7,848 |
| 0.59 |
|
| Demand deposits (noninterest-bearing) | 431,438 |
| | | 440,573 |
| | | 417,079 |
| | | 435,026 |
| |
| |
| 410,572 |
| |
| |
|
| Sources to fund earning assets | 2,463,200 |
| 1,999 |
| 0.32 |
| 2,435,672 |
| 2,013 |
| 0.33 |
| 2,197,958 |
| 2,477 |
| 0.45 |
| 2,428,079 |
| 6,122 |
| 0.34 |
| 2,188,150 |
| 7,848 |
| 0.48 |
|
| Noninterest-bearing funds (net) | 122,075 |
| | | 111,782 |
| | | 89,483 |
| | | 116,789 |
| |
| |
| 94,354 |
| |
| |
|
| Total sources to fund earning assets | $ | 2,585,275 |
| $ | 1,999 |
| 0.31 | % | $ | 2,547,454 |
| $ | 2,013 |
| 0.32 | % | $ | 2,287,441 |
| $ | 2,477 |
| 0.43 | % | $ | 2,544,868 |
| $ | 6,122 |
| 0.32 | % | $ | 2,282,504 |
| $ | 7,848 |
| 0.46 | % |
| | | | | | | | | | | | | | | | |
Net interest income and margin on a tax- equivalent basis | | $ | 23,456 |
| 3.58 | % | | $ | 23,186 |
| 3.62 | % | | $ | 22,333 |
| 3.85 | % | | $ | 69,576 |
| 3.62 | % | | $ | 66,889 |
| 3.87 | % |
| Tax-exempt adjustment | | 589 |
| | | 587 |
| | | 555 |
| | | 1,775 |
| | | 1,525 |
| |
| Net interest income and margin | | $ | 22,867 |
| 3.49 | % | | $ | 22,599 |
| 3.52 | % | | $ | 21,778 |
| 3.75 | % | | $ | 67,801 |
| 3.53 | % | | $ | 65,364 |
| 3.78 | % |
| | | | | | | | | | | | | | | | |
| Other Balances: | | | | | | | | | | | | | | | |
| Cash and due from banks | $ | 50,839 |
| | | $ | 50,801 |
| | | $ | 56,959 |
| | | $ | 48,182 |
| | | $ | 47,485 |
| | |
| Other assets | 71,101 |
| | | 90,398 |
| | | 96,105 |
| | | 84,412 |
| | | 99,118 |
| | |
| Total assets | 2,707,215 |
| | | 2,688,653 |
| | | 2,440,505 |
| | | 2,677,462 |
| | | 2,429,107 |
| | |
| Other liabilities | 16,157 |
| | | 17,725 |
| | | 12,128 |
| | | 16,558 |
| | | 13,719 |
| | |
| Stockholders' equity | 227,858 |
| | | 235,256 |
| | | 230,419 |
| | | 232,825 |
| | | 227,238 |
| | |
|
| | | | | | | | | | | | | | | |
| Metro Bancorp, Inc. and Subsidiaries | | | | | |
| Summary of Allowance for Loan Losses and Other Related Data | | | |
| (Unaudited) | | | | | |
| | | | | | |
| | Three Months Ended | Year Ended | Nine Months Ended |
| | September 30, | December 31, | September 30, |
| (dollars in thousands) | 2013 | 2012 | 2012 | 2013 | 2012 |
| | | | | | |
| Balance at beginning of period | $ | 28,038 |
| $ | 26,158 |
| $ | 21,620 |
| $ | 25,282 |
| $ | 21,620 |
|
| Provisions charged to operating expenses | 1,200 |
| 2,500 |
| 10,100 |
| 5,300 |
| 7,950 |
|
| | 29,238 |
| 28,658 |
| 31,720 |
| 30,582 |
| 29,570 |
|
| Recoveries of loans previously charged-off: | | | | | |
| Commercial and industrial | 613 |
| 15 |
| 227 |
| 945 |
| 216 |
|
| Commercial tax-exempt | — |
| — |
| — |
| — |
| — |
|
| Owner occupied real estate | — |
| — |
| 7 |
| 3 |
| 8 |
|
| Commercial construction and land development | (21 | ) | 64 |
| 517 |
| 477 |
| 513 |
|
| Commercial real estate | — |
| 55 |
| 97 |
| — |
| 85 |
|
| Residential | 7 |
| 3 |
| 4 |
| 10 |
| 4 |
|
| Consumer | 11 |
| 20 |
| 67 |
| 69 |
| 65 |
|
| Total recoveries | 610 |
| 157 |
| 919 |
| 1,504 |
| 891 |
|
| Loans charged-off: | | | | | |
| Commercial and industrial | (1,462 | ) | (487 | ) | (2,302 | ) | (2,726 | ) | (947 | ) |
| Commercial tax-exempt | — |
| — |
| — |
| — |
| — |
|
| Owner occupied real estate | (34 | ) | — |
| (772 | ) | (270 | ) | (92 | ) |
| Commercial construction and land development | (267 | ) | (625 | ) | (1,378 | ) | (292 | ) | (1,223 | ) |
| Commercial real estate | (109 | ) | (1,580 | ) | (1,853 | ) | (332 | ) | (1,852 | ) |
| Residential | (36 | ) | (198 | ) | (308 | ) | (166 | ) | (263 | ) |
| Consumer | (515 | ) | (329 | ) | (744 | ) | (875 | ) | (488 | ) |
| Total charged-off | (2,423 | ) | (3,219 | ) | (7,357 | ) | (4,661 | ) | (4,865 | ) |
| Net charge-offs | (1,813 | ) | (3,062 | ) | (6,438 | ) | (3,157 | ) | (3,974 | ) |
| Balance at end of period | $ | 27,425 |
| $ | 25,596 |
| $ | 25,282 |
| $ | 27,425 |
| $ | 25,596 |
|
Net charge-offs (annualized) as a percentage of average loans outstanding | 0.43 | % | 0.81 | % | 0.44 | % | 0.26 | % | 0.36 | % |
Allowance for loan losses as a percentage of period-end loans | 1.61 | % | 1.70 | % | 1.65 | % | 1.61 | % | 1.70 | % |
|
| | | | | | | | | | | | | | | |
| 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, 2013 and for the preceding four quarters (dollar amounts in thousands). |
| | | | | | |
| | September 30, | June 30, | March 31, | December 31, | September 30, |
| | 2013 | 2013 | 2013 | 2012 | 2012 |
| Nonperforming Assets | | | | | |
| Nonaccrual loans: | | | | | |
| Commercial and industrial | $ | 9,967 |
| $ | 12,053 |
| $ | 12,451 |
| $ | 11,289 |
| $ | 17,133 |
|
| Commercial tax-exempt | — |
| — |
| — |
| — |
| — |
|
| Owner occupied real estate | 4,924 |
| 4,999 |
| 3,428 |
| 3,119 |
| 3,230 |
|
| Commercial construction and land development | 11,723 |
| 12,027 |
| 12,024 |
| 6,300 |
| 6,826 |
|
| Commercial real estate | 6,904 |
| 3,893 |
| 5,575 |
| 5,659 |
| 4,571 |
|
| Residential | 7,316 |
| 7,133 |
| 3,295 |
| 3,203 |
| 3,149 |
|
| Consumer | 2,541 |
| 3,422 |
| 2,517 |
| 2,846 |
| 2,304 |
|
| Total nonaccrual loans | 43,375 |
| 43,527 |
| 39,290 |
| 32,416 |
| 37,213 |
|
Loans past due 90 days or more and still accruing | 119 |
| — |
| 1,726 |
| 220 |
| 704 |
|
| Total nonperforming loans | 43,494 |
| 43,527 |
| 41,016 |
| 32,636 |
| 37,917 |
|
| Foreclosed assets | 3,556 |
| 4,611 |
| 2,675 |
| 2,467 |
| 4,391 |
|
| Total nonperforming assets | $ | 47,050 |
| $ | 48,138 |
| $ | 43,691 |
| $ | 35,103 |
| $ | 42,308 |
|
| | | | | | |
| Troubled Debt Restructurings (TDRs) | | | | | |
| Nonaccruing TDRs | $ | 23,621 |
| $ | 18,817 |
| $ | 18,927 |
| $ | 13,247 |
| $ | 14,283 |
|
| Accruing TDRs | 11,078 |
| 14,888 |
| 14,308 |
| 19,559 |
| 20,424 |
|
| Total TDRs | $ | 34,699 |
| $ | 33,705 |
| $ | 33,235 |
| $ | 32,806 |
| $ | 34,707 |
|
| | | | | | |
| Nonperforming loans to total loans | 2.55 | % | 2.66 | % | 2.61 | % | 2.13 | % | 2.52 | % |
| | | | | | |
| Nonperforming assets to total assets | 1.71 | % | 1.81 | % | 1.67 | % | 1.33 | % | 1.67 | % |
| | | | | | |
| Nonperforming loan coverage | 63 | % | 64 | % | 67 | % | 77 | % | 68 | % |
| | | | | | |
Allowance for loan losses as a percentage of total period-end loans | 1.61 | % | 1.72 | % | 1.74 | % | 1.65 | % | 1.70 | % |
| | | | | | |
Nonperforming assets / capital plus allowance for loan losses | 18 | % | 19 | % | 17 | % | 13 | % | 16 | % |
