EXHIBIT 99.1
[METROCORP BANCSHARES, INC. LOGO]
METROCORP BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2002 EARNINGS RESULTS
CONTINUED GROWTH IN NONINTEREST INCOME; UP 17.8% FROM SAME QUARTER LAST YEAR
HOUSTON, TEXAS - (April 24, 2002) MetroCorp Bancshares, Inc. (Nasdaq:MCBI), a
Texas community banking organization serving multicultural markets, today
announced net income after tax of $2.1 million for the first quarter ended March
31, 2002, slightly higher than the same period in 2001 by 0.5%. Diluted earnings
per share for the first quarter 2002 were $0.29, compared to $0.30 for the same
quarter in 2001. Since earnings for both periods were nearly the same, the
difference in earnings per share was primarily the result of an increase in
stock option shares outstanding. Basic earnings per share for the first quarter
2002 and 2001 were $0.30.
Allen Brown, President of MetroCorp Bancshares, Inc. and Chief Executive Officer
of MetroBank, N.A., said, "We were pleased with the continued growth in
noninterest income which increased 17.8% compared to the same period a year
earlier. The Bank's deposit balances declined slightly compared to December 31,
2001 but were up $24.0 million compared to March 31, 2001."
BALANCE SHEET DATA. Total assets at March 31, 2002 were $757.5 million, up $15.4
million or 2.1% from $742.2 million at December 31, 2001. Total loans at March
31, 2002 were $490.0 million, down slightly from $493.1 million at December 31,
2001. Total deposits at March 31, 2001 were $638.5 million, down $4.3 million or
0.7% from $642.8 million at December 31, 2001. Other borrowings at March 31,
2002 were $42.8 million, up $17.6 million from $25.2 million at December 31,
2001. This was primarily attributed to maintaining earning asset growth during
the quarter. Shareholders' equity at March 31, 2002 grew to $66.5 million, up
$1.3 million or 1.9% from $65.2 million at December 31, 2001. During the first
quarter 2002, the Company announced a plan to repurchase up to 350,000 shares of
its common stock on the open market or in privately negotiated block
transactions. As of March 31, 2002, the Company had repurchased 14,476 shares.
PROVISION FOR LOAN LOSSES AND ASSET QUALITY. The provision for loan losses for
the three months ended March 31, 2002 was $600,000, up $173,000 from $427,000
for the same quarter in 2001. The allowance for loan losses as a percent of
total loans at March 31, 2002 and December 31, 2001 was 1.75% and 1.81%,
respectively.
Net charge-offs for the three months ended March 31, 2002 were $909,000, down
$2.1 million compared to $3.0 million in the fourth quarter of 2001, and were up
$541,000 from $368,000 in the first quarter 2001. For the quarter ended March
31, 2002, the majority of the charge-offs were related to three restaurant
credits totaling approximately $315,000, one trucking contractor at $150,000,
one doctor's office at $170,000, and an air conditioning & heating contractor at
$130,000. The Company seeks recovery on its charge-offs through all available
channels.
During the quarter ended March 31, 2002, the Company continued its efforts that
commenced in the fourth quarter of 2001 to systematically review the quality of
its loan portfolio. As a result,
9600 Bellaire Boulevard o Suite 252 o P.O. Box 4760
Houston, Texas 77210-4760 o Tel: 713-776-3876
the Company placed approximately $9.8 million in loans (with a weighted average
interest rate of 8.18%) on nonaccrual status raising total nonaccrual loans at
March 31, 2002 to $12.7 million compared to $3.8 million at December 31, 2001.
Net nonperforming assets at March 31, 2002 were $10.4 million compared to $3.7
million at December 31, 2001, an increase of $6.7 million. This proactive
identification process is an integral part of an overall effort to improve
credit quality, and to facilitate this process, loan review and problem
resolution staff were added during the first quarter 2002. While future
deterioration in the loan portfolio is possible, management will continue its
risk assessment program as it also turns its attention to diversifying its
credit risk through new business development.
NET INTEREST INCOME AND EXPENSE. Interest income for the three months ended
March 31, 2002 was $11.7 million, down $3.4 million or 22.4% from $15.1 million
for the same three months in 2001. This was primarily the result of lower market
interest rates in 2002 coupled with an increase in nonaccrual loans and interest
rate renegotiations on current loans. Interest expense for the three months
ended March 31, 2002 was $3.9 million, down $3.3 million or 45.6% from $7.2
million for the same three months in 2001. This was also primarily the result of
lower market interest rates in 2002. A significant portion of the time deposit
portfolio matured in the first quarter 2002 and renewed at much lower interest
rates compared to interest rate levels in early 2001. Net interest income before
provision for loan losses for the three months ended March 31, 2002 was $7.8
million, down $100,000 or 1.5% from $7.9 million for the same three months in
2001. The net interest margin for the first quarter 2002 was 4.55%, compared to
4.77% for the same three months in 2001.
NONINTEREST INCOME AND EXPENSE. Noninterest income for the three months ended
March 31, 2002 was $2.5 million, up $400,000 or 17.8% from $2.1 million for the
same three months in 2001. The increase was primarily due to initiatives taken
during 2001 to increase fee income, through increased transaction accounts, and
continued relationship banking initiatives. Noninterest expense for the three
months ended March 31, 2001 was $6.6 million, up $200,000 or 2.9% from $6.4
million for the same three months in 2001. This was primarily the result of
increased employee compensation and benefits and a $200,000 charge to other real
estate that was partially offset by decreased occupancy and other operating
expenses.
Allen Brown added, "While we are controlling our non-staff operating expenses,
additional officer level staff and loan workout staff was needed in late 2001
and in the first quarter 2002. Although this is added expense, the long-term
benefits of the resources we have acquired should out-weigh the added resource
cost."
MetroCorp Bancshares, Inc., with $757.5 million in assets, provides a full range
of commercial and consumer banking services through its wholly owned subsidiary,
MetroBank, N.A. The Company has 14 full-service banking locations in the greater
Houston and Dallas metropolitan areas. For more information, visit the Company's
Web site at www.metrobank-na.com.
The statements contained in this release that are not historical facts are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
describe MetroCorp's future plans, projections, strategies and expectations, are
based on assumptions and involve a number of risks and uncertainties, many of
which are beyond MetroCorp's control. Actual results could differ materially
from those projected due to changes in interest rates, competition in the
industry, changes in local and national economic conditions and various other
factors. Additional information concerning such factors that could affect
MetroCorp is contained in MetroCorp's filings with the SEC.
Contact:
MetroCorp Bancshares, Inc., Houston
Allen Brown, President, (713) 776-3876, or
David D. Rinehart, EVP/Chief Financial Officer, (713) 776-3876
9600 Bellaire Boulevard o Suite 252 o P.O. Box 4760
Houston, Texas 77210-4760 o Tel: 713-776-3876
METROCORP BANCSHARES, INC.
(In thousands, except share amounts)
(Unaudited)
AS OF OR FOR THE THREE MONTHS
ENDED MARCH 31,
------------------------------ CHANGE
2002 2001 %
---------- ---------- --------
AVERAGE BALANCE SHEET SUMMARY
Total assets $ 739,228 $ 719,185 2.8
Securities 180,473 146,030 23.6
Total loans 489,801 475,193 3.1
Allowance for loan losses 8,957 9,271 (3.4)
Net loans 480,844 465,922 3.2
Total deposits 634,461 622,164 2.0
FHLB and other borrowings 29,190 25,823 13.0
Total shareholders' equity 67,108 60,386 11.1
INCOME STATEMENT
Interest income:
Loans 9,261 12,019 (22.9)
Investment securities:
Taxable 1,998 2,108 (5.2)
Tax-exempt 310 269 15.2
Federal funds sold and other temporary investments 118 667 (82.3)
---------- ----------
Total interest income 11,687 15,063 (22.4)
Interest expense:
Time deposits 2,960 5,660 (47.7)
Demand and savings deposits 601 1,178 (49.0)
Other borrowings 330 312 5.8
---------- ----------
Total interest expense 3,891 7,150 (45.6)
Net interest income 7,796 7,913 (1.5)
Provision for loan losses 600 427 40.5
---------- ----------
Net interest income after provision for loan losses 7,196 7,486 (3.9)
Noninterest income:
Service charges on deposit accounts 1,657 1,522 8.9
Other loan-related fees 586 200 193.0
Letters of credit commissions and fees 126 165 (23.6)
Gain on sale of investment securities, net 2 70 (97.1)
Other noninterest income 105 145 (27.6)
---------- ----------
Total noninterest income 2,476 2,102 17.8
Noninterest expense:
Employee compensation and benefits 3,570 3,319 7.6
Occupancy 1,235 1,366 (9.6)
Other real estate, net 263 7 (3,657.1)
Data processing 24 16 50.0
Professional fees 173 396 (56.3)
Advertising 90 114 (21.1)
Other noninterest expense 1,268 1,221 3.8
---------- ----------
Total noninterest expense 6,623 6,439 2.9
Income before provision for income taxes 3,049 3,149 (3.2)
Provision for income taxes 958 1,069 (10.4)
---------- ----------
Net income $ 2,091 $ 2,080 0.5
========== ==========
Note: Net interest income (full tax-equivalent)
PER SHARE DATA
Earnings per share - basic $ 0.30 $ 0.30 (0.0)
Earnings per share - diluted 0.29 0.30 (1.0)
Weighted average shares outstanding:
Basic 7,020 6,981 0.6
Diluted 7,140 7,028 1.6
PERFORMANCE RATIOS
Return on average assets 1.15% 1.17% (2.2)
Return on average shareholders' equity 12.64% 13.97% (9.5)
Net interest margin 4.55% 4.77% (4.6)
Efficiency ratio 64.48% 64.29% 0.3
Equity to assets 9.08% 8.40% 8.1
BANK CAPITAL RATIOS
Tier I capital 12.08% 11.88% 1.7
Total capital (tier I & II) 13.33% 13.13% 1.5
Leverage (Regulatory) 8.59% 8.01% 7.3
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METROCORP BANCSHARES, INC.
(In thousands, except share amounts)
(Unaudited)
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<Caption>
MARCH 31, DECEMBER 31, CHANGE
2002 2001 %
---------- ------------ --------
CONSOLIDATED BALANCE SHEET
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 27,334 $ 34,428 (20.6)
Federal funds sold and other temporary investments 24,252 26,821 (9.6)
---------- ----------
Total cash and cash equivalents 51,586 61,249 (15.8)
Investment securities available-for-sale 201,300 173,087 16.3
Loans, net 481,382 484,242 (0.6)
Premises and equipment, net 5,401 5,623 (3.9)
Accrued interest receivable 3,196 3,602 (11.3)
Deferred income taxes 5,744 5,471 5.0
Due from customers on acceptances 5,159 4,605 12.0
Other real estate and repossessed assets, net 794 1,025 (22.5)
Other assets 2,979 3,270 (8.9)
---------- ----------
Total assets $ 757,541 $ 742,174 2.1
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 124,162 $ 127,299 (2.5)
Interest-bearing 514,368 515,452 (0.2)
---------- ----------
Total deposits 638,530 642,751 (0.7)
Other borrowings 42,823 25,195 70.0
Accrued interest payable 738 863 (14.5)
Income taxes payable 436 (608) (171.7)
Acceptances outstanding 5,159 4,605 12.0
Other liabilities 3,365 4,139 (18.7)
---------- ----------
Total liabilities 691,051 676,945 2.1
Commitments and contingencies (Note 15) -- -- --
Shareholders' Equity:
Preferred stock, $1.00 par value, 2,000,000 shares authorized; none
of which are issued and outstanding -- -- --
Common stock, $1.00 par value, 20,000,000 shares authorized;
7,187,423 shares are issued and 7,013,829 shares and 7,017,823 shares are
outstanding at March 31, 2002 and December 31, 2001,
respectively 7,187 7,187 --
Additional paid-in-capital 26,173 26,144 0.1
Retained earnings 34,504 32,834 5.1
Accumulated other comprehensive income 12 376 (96.8)
Treasury stock, at cost (1,386) (1,312) 5.6
---------- ----------
Total shareholders' equity 66,490 65,229 1.9
---------- ----------
Total liabilities and shareholders' equity $ 757,541 $ 742,174 2.1
========== ==========
NONPERFORMING ASSETS AND ASSET QUALITY RATIOS
Nonaccrual loans $ 12,720 $ 3,758 238.5
Accruing loans 90 days or more past due 258 783 --
Other real estate ("ORE") 794 969 (18.1)
Other assets repossessed ("OAR") -- 56 (100.0)
---------- ----------
Total nonperforming assets 13,772 5,566 147.4
Less nonperforming loans guaranteed by the SBA, Ex-Im Bank, or
the OCCGF (3,333) (1,833) 81.8
---------- ----------
Net nonperforming assets $ 10,439 $ 3,733 179.6
========== ==========
Net nonperforming assets to total assets 1.38% 0.50% 174.0
Net nonperforming assets to total loans and ORE/OAR 2.13% 0.76% 181.6
Allowance for loan losses to total loans 1.75% 1.81% (2.9)
Allowance for loan losses to net nonperforming loans 89.08% 328.77% (72.9)
Net loan charge-offs to total loans 0.19% 0.84% (78.0)
Net loan charge-offs $ 909 $ 4,167 (78.2)
Total loans to total deposits 76.73% 76.72% 0.0
Total loans 489,974 493,145 (0.6)
Allowance for loan losses 8,592 8,903 (3.5)
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