Metro Bancorp, Inc. (NASDAQ Global Select Market Symbol: METR), parent company of Metro Bank, reported a 10% increase in core deposits and an 11% increase in total deposits for the first quarter, as well as profit improvement over the previous quarter announced Gary L. Nalbandian, Chairman, President and CEO.
           

First Quarter Financial Highlights
                           

Quarter Ended
%
  03/31/10   03/31/09 Change
Total assets $ 2.17 Billion $ 2.12 Billion 3 %
 
Total deposits $ 1.85 Billion $ 1.67 Billion 11 %
 
Total loans (net) $ 1.39 Billion $ 1.43 Billion

(2

)

%
                                       
Total revenues $ 25.4 Million $ 24.8 Million 2 %
 
Net income $ 6,000 $ 837,000

(99

)

%
 
Diluted net income

per share
$ 0.00 $ 0.13

(100

)

%
                                               

Chairman’s Statement

Commenting on the Company’s financial results, Chairman Nalbandian stated “our continued focus on community banking produced a 10% increase in core deposits over the previous twelve months to $1.8 billion. Especially noteworthy was our growth in core demand deposits of $197 million, or 19%, over the same period. We are also pleased with our improvement in net income over the results we recorded in the previous three quarters.”

Mr. Nalbandian noted the following highlights from the first quarter ended March 31, 2010:

  • Total deposits increased $179.1 million, or 11%, to $1.85 billion from one year ago.
  • Core deposits increased $162.1 million, or 10%, over the same period.
  • Core consumer deposits increased by $101.9 million, or 13%, over the previous twelve months to $903.9 million and represent 50% of total core deposits.
  • Stockholders’ equity increased by $84.2 million, or 71%, over the past twelve months to $203.2 million. At March 31, 2010, the Company’s book value per share was $14.99.
  • Metro Bancorp continues to exhibit very strong capital ratios. The Company’s consolidated leverage ratio as of March 31, 2010 was 11.08% and its total risk-based capital ratio was 14.82%.
  • Total assets reached $2.17 billion.
  • Total borrowings and long-term debt decreased by $209.8 million, or 66%, from one year ago.
  • Net loans totaled $1.39 billion, down 2% over the past twelve months.
  • The allowance for loan losses to total loans increased to 1.08% from 1.00% at the previous quarter end.
  • The Company recorded net income of $6,000, or $0.00 per fully-diluted share, for the first quarter vs. net income of $837,000, or $0.13 per fully-diluted share, for the same period one year ago. Impacting net income for the first quarter of 2010 were the following:
    • Net securities losses of $292,000, primarily the result of other-than-temporary impairment charges totaling $913,000 on private-label collateralized mortgage obligations (“CMO’s”) held in the Company’s investment portfolio;
    • Expenses associated with Other Real Estate Owned (“OREO”) and problem loans totaling $745,000;
    • The reversal of $201,000 of accrued interest income associated with loans which were reclassified to non-accrual status during the quarter; and
    • FDIC insurance premiums of $1.1 million vs. $735,000 for the first quarter of 2009.
  • The net income of $6,000 for the first quarter was an improvement of $896,000 over the loss reported for the previous quarter.
  • Total revenues for the first quarter were $25.4 million as compared to $24.8 million for the same quarter one year ago.
  • The Company’s net interest margin on a fully taxable basis for the first quarter of 2010 was 4.00% vs. 3.88% for the fourth quarter of 2009 and compared to 3.94% for the first quarter of 2009. The Bank’s deposit cost of funds for the first quarter was 0.81% as compared to 1.09% for the same period one year ago, while core deposits grew from $1.66 billion to $1.82 billion over the past twelve months.
  • Noninterest income totaled $5.9 million for the first quarter of 2010, up $447,000, or 8%, over the first quarter of 2009.
  • On a linked-quarter basis, total noninterest expenses were down $1.8 million, or 7%, from the previous quarter.
  • During the quarter, the Company announced that the merger agreement with Republic First Bancorp, Inc. had been terminated.
  • Metro Bank has five new sites in various stages of development in Central Pennsylvania: two in York County; two in Lancaster County and one in Cumberland County. The Bank currently has a network of 33 stores in the counties of Berks, Cumberland, Dauphin, Lancaster, Lebanon and York.

Income Statement
   

 

For the three months ended
                   

(in thousands,

except per share data)
March 31,

2010
 

December 31,2009
  %

Change
  March 31,

2009
  %

Change
       
Total revenues $ 25,379 $ 25,753 (1 )% $ 24,836 2 %
Total expenses 23,875 25,646 (7 ) 20,627 16
Net income (loss) 6 (890 ) 101 837 (99 )
Diluted net income (loss) per share  

$

0.00
 

$

(0.07

)
 

100

%
 

$

0.13
 

(100

)%

Total revenues (net interest income plus noninterest income) for the first quarter increased $543,000 to $25.4 million, up 2% over the first quarter of 2009. Net interest income increased slightly while service charges and other fee income increased by $223,000, or 4%. The increase was partially offset by net securities losses of $292,000. Excluding the net securities losses and the reversal of accrued interest income on nonaccrual loans, total revenues were up $1.0 million, or 4%, over the first quarter one year ago.

The Company recorded net income of $6,000 for the first quarter of 2010 vs. net income of $837,000 for the first quarter of 2009. Net income per fully diluted share for the quarter was $0.00 as compared to fully diluted net income per share of $0.13 recorded for the same period a year ago.

The difference in earnings is attributable to a 2% increase in revenues offset by a 16% increase in expenses, primarily a result of the transition of operational services away from TD Bank in mid-2009, as well as an increase in Federal Deposit Insurance Corporation (FDIC) premiums and higher expenses associated with foreclosed assets, problem loans and consulting services.

On a linked quarter basis, the Company improved from a net loss of $890,000, or $(0.07) per share, in the fourth quarter of 2009 to net income of $6,000 during the first quarter of 2010. Linked quarter total revenues were down $374,000, or 1%, while at the same time, total noninterest expenses were down $1.8 million, or 7%, from the previous quarter.

The total tax benefit recorded for the first quarter of 2010 was $902,000. This benefit was partially due to the proportion of tax free income to a total pre-tax loss. It also includes a $256,000 tax benefit the Company recorded during the first quarter of 2010 for merger-related expenses that were not deductible in previous periods.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2010 totaled $19.4 million vs. $19.3 million recorded in the first quarter of 2009. Net interest income for the first quarter of 2010 was impacted by the reversal of $201,000 of accrued interest income associated with loans which were reclassified to nonaccrual status during the quarter.

The net interest margin for the first quarter of 2010 was 3.87%, up 13 basis points over the previous quarter and up 4 basis points over the first quarter of 2009. Average interest earning assets for the first quarter totaled $2.01 billion vs. $2.02 billion for the first quarter of 2009 and compared to $1.95 billion for the previous quarter.

Total noninterest bearing deposits averaged $325.4 million for the first quarter of 2010, up $39.8 million, or 14%, over first quarter last year while average interest bearing deposits totaled $1.50 billion, up $175.3 million, or 13%, over the first quarter of 2009. At the same time, average borrowings for the first quarter of 2010 were $76.2 million compared to $358.1 million for the same period one year ago. Total interest expense for the quarter was down $1.3 million, or 22%, from the first quarter of 2009 as a result of a 26 bps reduction in the Company’s total cost of funds from 1.20% to 0.94%.

Net interest income on tax-equivalent basis, totaled $20.1 million in the first quarter of 2010, an increase of $174,000, or 1%, over the first quarter one year ago. The net interest margin on a fully-taxable basis for the first quarter of 2010 was 4.00% vs. 3.88% for the previous quarter and compared to 3.94% for the first quarter of 2009.

Change in Net Interest Income and Rate/Volume Analysis

As shown below, the change in net interest income on a fully tax-equivalent basis for the quarter was due to a decrease in volume change which was more than offset by an increase in rate change in the Company’s earning assets.
           
(dollars in thousands)         Net Interest Income
March 31

2010 vs. 2009
        Volume

Change
        Rate

Change
        Total

Increase
        %

Increase
Quarter         $ (321)         $ 495         $ 174         1%

Noninterest Income

Noninterest income for the first quarter of 2010 totaled $5.9 million, up $447,000, or 8%, over $5.5 million recorded in the first quarter one year ago.
         
  Three months ended

March 31,
   
(dollars in thousands)     2010       2009     % Change    
Service charges and fees $ 5,894   $ 5,646   4 %
Other income     150       175    

(14

)
 
Subtotal     6,044       5,821     4    
Gains on sale of residential loans 194 305

(36

)
Loss on sale of student loans - (627 )

(100

)
Gains on sales of securities 621 - -
Impairment losses on investment securities     (913 )     -     -    
Total noninterest income   $ 5,946     $ 5,499     8   %

Service charges and fees increased by $248,000, or 4%, over the first quarter of 2009. Noninterest income for the first quarter of 2010 was impacted by net impairment losses on private-label CMO’s totaling $913,000. These charges were partially offset by $621,000 of gains on the sales of other securities. Noninterest income for the first quarter one year ago was impacted by a $627,000 loss on the sale of student loans.

Noninterest Expenses

Noninterest expenses for the first quarter of 2010 were $23.9 million, up $3.2 million, or 16%, over $20.6 million recorded one year ago. The breakdown of noninterest expenses for the first quarter of 2010 are shown in the following table:
   

 

For the three months ended
                 

(dollars in thousands)

March 31,

2010
 

December 31,2009
  %

Change
    March 31,

2009
  %

Change
 
Salaries and employee benefits $ 10,254   $ 11,485   (11 )%   $ 9,999   3 %
Occupancy and equipment 3,429 3,557 (4 ) 3,035 13
Advertising and marketing 832 876 (5 ) 520 60
Data Processing 3,140 2,416 30 2,034 54
Regulatory assessments and related fees 1,169 736 59 782 49
One-time system conversion/branding (net) 0 1,440 (100 ) 588 (100 )
Merger/acquisition 17 110 (85 ) 230 (93 )
Other expenses     5,034     5,026   0       3,439   46  
Total noninterest expenses   $ 23,875   $ 25,646   (7 )%   $ 20,627   16 %

The increases in data processing and equipment expense are primarily the result of the new systems that were put into operation during the second quarter of 2009 as part of the transition of certain services away from TD Bank. Advertising expenses were higher in 2010 as a result of a reduction in advertising in the first quarter of 2009 in anticipation of the rebranding of the Company that occurred in the second quarter of 2009. FDIC premiums were higher due to an increase in rates imposed on the deposits of all banks as well as an increase in the level of average deposits covered. Other expenses were higher during the first quarter of 2010 primarily as a result of increased expenses related to OREO, problem loans, telephone call center service and outside consulting services. Expenses associated with OREO and problem loans totaled $745,000 for the first quarter of 2010 as compared to $222,000 for the same period in 2009.

Balance Sheet

                     
        March 31,        

 
(dollars in thousands)           2010           2009         %

Change
Total assets $ 2,171,191         $ 2,115,301 3 %
 
Total loans (net) 1,394,398 1,430,105 (2

)%
 
Total deposits 1,847,695 1,668,617 11 %
 
Total core deposits 1,820,173 1,658,100 10 %
 
Total borrowings and debt 106,175 315,925 (66 )%
 
Total stockholders’ equity           203,219           118,997         71 %

Deposits

The Company’s deposit growth continues to be strong with total deposits at March 31, 2010 reaching $1.85 billion, a $179 million, or 11%, increase over total deposits of $1.67 billion one year ago. Core deposits grew by $162 million, or 10%, over the previous twelve months.
                     
(dollars in thousands)     03/31/10     03/31/09   $ Increase   % Increase
       
Core Deposits $ 1,820,173 $ 1,658,100 $ 162,073 10 %
 
Total Deposits     1,847,695     1,668,617     179,078   11 %

Core Deposits

Change in core deposits by type of account is as follows:
                         
      March 31,            
(dollars in thousands)         2010         2009       %

Change
     

1st Quarter2010 Cost ofFunds
Demand non-interest-bearing $ 349,729       $ 310,219 13 % 0.00 %
Demand interest-bearing 907,732 749,760 21 % 0.79
Savings         344,008         337,660       2         0.49  
Subtotal 1,601,469 1,397,639 15 % 0.56
Time         218,704         260,461       (16 )       2.54  
Total core deposits       $ 1,820,173       $ 1,658,100       10 %       0.81 %

Total core demand and savings deposits increased by $203.8 million, or 15%, over the past twelve months to $1.6 billion. The total cost of these deposits during the first quarter of 2010 was 0.56% as compared to 0.66% for the first quarter one year ago. The first quarter of 2010 cost of total core deposits was 0.81%, down 27 basis points, or 25%, from the first quarter of 2009.

Change in core deposits by type of customer is as follows:

                         
  March 31,   % of     March 31,   % of   %
(dollars in thousands)   2010   Total     2009   Total     Change
Consumer $ 903,930 50 % $ 802,077 48 % 13 %
Commercial 563,951 31 528,375 32 7
Government     352,292   19         327,648   20     8  
Total   $ 1,820,173   100

%

 
  $ 1,658,100   100 %   10 %

Consumer core deposits grew by $101.9 million, or 13%, over the past twelve months and account for 50% of total core deposits.

Lending

Gross loans totaled $1.41 billion at March 31, 2010, down $36.8 million from one year ago. The composition of the Company’s loan portfolio is as follows:
                                 
(dollars in thousands)  

March 31,2010
 

% ofTotal
     

March 31,2009
 

% ofTotal
   

 

$

Change
 

%Change
Commercial   $ 452,619   32

%

 
  $ 448,898   31 %   $ 3,721   1

%
Owner occupied     244,066   17         271,151   19       (27,085 )   (10 )
Total commercial 696,685 49 720,049 50 (23,364 ) (3 )
Consumer/residential 292,091 21 318,476 22 (26,385 ) (8 )
Commercial real estate     420,800   30         407,811   28       12,989     3  
Gross loans   $ 1,409,576   100

%

 
  $ 1,446,336   100 %   $ (36,760 )  

(3

)%

Asset Quality

The Company’s asset quality ratios are highlighted below:
     
  Quarters Ended
   

March 31,2010
   

December 31,2009
   

March 31,2009
 
Non-performing assets/total assets 2.46 %   2.12 %   1.44 %
Net loan charge-offs (annualized)/avg total loans 0.46 % 0.56 % 1.03 %
Loan loss allowance/total loans 1.08 % 1.00 % 1.12 %
Non-performing loan coverage 33 % 38 % 55 %
Non-performing assets/capital and reserves   24 %   21 %   22 %

Non-performing assets at March 31, 2010 totaled $53.5 million, or 2.46%, of total assets, up from $45.6 million, or 2.12% of total assets, at December 31, 2009 and as compared to $30.4 million, or 1.44%, of total assets one year ago. The Company’s provision for loan losses totaled $2.4 million for the first quarter of 2010 as compared to $1.8 million for the previous quarter and to $3.2 million recorded in the first quarter of 2009. The allowance for loan losses totaled $15.2 million as of March 31, 2010 as compared to $14.4 million at December 31, 2009 and to $16.2 million at March 31, 2009. The allowance represented 1.08% of gross loans outstanding at March 31, 2010, up from 1.00% at December 31, 2009 and compared to 1.12% at March 31, 2009.

Total net charge-offs for the first quarter of 2010 were $1.6 million vs. $2.0 million for the previous quarter and compared to $3.7 million for the first quarter of 2009. Approximately $1.3 million, or 82%, of the total net charge-offs in the first quarter of 2010 were associated with two separate loan relationships.

Investments

At March 31, 2010, the Company’s investment portfolio totaled $552.4 million. Detailed below is information regarding the composition and characteristics of the portfolio at March 31, 2010:
             
Product Description  

Availablefor Sale
 

Held toMaturity
  Total
(dollars in thousands)      
U.S. Government agencies/other $ 50,175 $ 25,000 $ 75,175
Mortgage-backed securities:
Federal government agencies pass through certificates 66,990 51,822 118,812
Agency collateralized mortgage obligations 237,745 28,375 266,120
Private-label collateralized mortgage obligations 86,532 3,740 90,272
Corporate debt securities     -       1,998       1,998  
Total   $ 441,442     $ 110,935     $ 552,377  
Duration (in years) 2.8 4.0 3.1
Average life (in years) 3.4 4.8 3.6
Quarterly average yield     3.70 %     4.77 %     3.78 %

At March 31, 2010, the after-tax unrealized loss on the Bank’s available for sale portfolio was $8.3 million as compared to $10.9 million at December 31, 2009 and $14.6 million at March 31, 2009. The Company recorded a $913,000 charge against 2010 first quarter earnings for other-than-temporary credit losses on three private-label collateralized mortgage obligations held in the Bank’s portfolio. The average life of the total investment securities portfolio decreased from 3.8 years at December 31, 2009 to 3.6 years at March 31, 2010, and the total duration decreased from 3.3 years to 3.1 years during the same period.

Capital

Stockholders’ equity at March 31, 2010 totaled $203.2 million, an increase of $84.2 million, or 71%, over stockholders’ equity of $119.0 million at March 31, 2009, primarily the result of a common stock offering in the third quarter of 2009 which provided $77.8 million in new capital to the Company. Return on average stockholders’ equity (ROE) for the first quarter of March 31, 2010 and 2009, respectively, is 0.01% and 2.91%.

The Company’s capital ratios at March 31, 2010 were as follows:
         
  Metro  

Regulatory Guidelines“Well Capitalized”
Leverage Ratio   11.08 %   5.00 %
Tier 1 13.94 6.00
Total Capital   14.82     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.

Regulatory Matters

The Company is also disclosing today on Form 8-K that the Bank has agreed to the issuance of a consent order by the FDIC.

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:
  • 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;
  • the Federal Deposit Insurance Corporation (FDIC) deposit fund is continually being used due to increased bank failures and existing financial institutions are being assessed higher premiums in order to replenish the fund;
  • 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;
  • continued levels of loan quality and volume origination;
  • the adequacy of loan loss reserves;
  • the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance);
  • 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;
  • unanticipated regulatory or judicial proceedings and liabilities and other costs;
  • interest rate, market and monetary fluctuations;
  • the timely development of competitive new products and services by us and the acceptance of such products and services by customers;
  • changes in consumer spending and saving habits relative to the financial services we provide;
  • the loss of certain key officers;
  • continued relationships with major customers;
  • our ability to continue to grow our business internally and through acquisition and successful integration of new or acquired entities while controlling costs;
  • compliance with laws and regulatory requirements of federal, state and local agencies;
  • the ability to hedge certain risks economically;
  • effect of terrorist attacks and threats of actual war;
  • deposit flows;
  • changes in accounting principles, policies and guidelines;
  • rapidly changing technology;
  • other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services; 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. 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
(Unaudited)
At or for the
Three Months Ended
                   
March 31, December 31, % March 31, %
(in thousands, except per share amounts) 2010 2009 Change 2009 Change
 
Income Statement Data:
 
Net interest income $ 19,433 $ 18,575 5 % $ 19,337 0 %
Provision for loan losses 2,400 1,800 33 3,200 (25 )
Noninterest income 5,946 7,178 (17 ) 5,499 8
Total revenues 25,379 25,753 (1 ) 24,836 2
Noninterest operating expenses 23,875 25,646 (7 ) 20,627 16
Net income (loss) 6 (890 ) 101 837 (99 )
 
 
Per Common Share Data:
 
Net income (loss): Basic $ 0.00 $ (0.07 ) 100 % $ 0.13 (100 )%
Net income (loss): Diluted 0.00 (0.07 ) 100 0.13 (100 )
 
Book Value $ 14.99 $ 14.80 1 $ 18.17 (18 )
 
Weighted average shares outstanding:
Basic 13,469 13,348 6,465
Diluted 13,474 13,348 6,518
 
 
Balance Sheet Data:
 
Total assets $ 2,171,191 2,147,759 1 % 2,115,301 3 %
Loans (net) 1,394,398 1,429,392 (2 ) 1,430,105 (2 )
Allowance for loan losses 15,178 14,391 5 16,231 (6 )
Investment securities 552,377 506,651 9 470,610 17
Total deposits 1,847,695 1,814,733 2 1,668,617 11
Core deposits 1,820,173 1,783,319 2 1,658,100 10
Stockholders' equity 203,219 200,022 2 118,997 71
 
 
Capital:
 
Stockholders' equity to total assets 9.36 % 9.31 % 5.63 %
Leverage ratio 11.08 11.31 7.59
Risk based capital ratios:
Tier 1 13.94 13.88 9.51
Total Capital 14.82 14.71 10.47
 
 
Performance Ratios:
 
Cost of funds 0.94 % 1.06 % 1.20 %
Deposit cost of funds 0.81 0.94 1.09
Net interest margin 3.87 3.74 3.83
Return on average assets 0.00 (0.17 ) 0.16
Return on average total stockholders' equity 0.01 (1.76 ) 2.91
 
 
Asset Quality:
 
Net charge-offs (annualized) to average loans outstanding 0.46 % 1.02 % 1.03 %
Nonperforming assets to total period-end assets 2.46 2.12 1.44
Allowance for loan losses to total period-end loans 1.08 1.00 1.12
Allowance for loan losses to nonperforming loans 33 38 55
Nonperforming assets to capital and reserves 24 21 22
 
                 
Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
 
    Quarter ending,
 
    March 2010   December 2009   March 2009
Average Average Average Average Average Average
Balance   Interest   Rate Balance   Interest   Rate Balance   Interest   Rate
(dollars in thousands)
Earning Assets
Investment securities:
Taxable $ 570,947 $ 5,399 3.78 % $ 498,732 $ 4,827 3.87 % $ 525,370 $ 5,477 4.17 %
Tax-exempt     1,354     21   6.10       1,624     25   6.07       1,623     26   6.41  
Total securities 572,301 5,420 3.79 500,356 4,852 3.88 526,993 5,503 4.18
Federal funds sold 5,036 1 0.10 5,457 2 0.13 0 0 0.00
Loans receivable:
Mortgage and construction 724,517 10,264 5.67 730,256 10,305 5.54 753,190 10,740 5.70
Commercial loans and lines of credit 375,091 4,464 4.76 379,724 4,494 4.64 369,236 4,663 5.05
Consumer 215,123 2,809 5.29 219,349 2,980 5.38 270,078 3,409 5.12
Tax-exempt     115,046     1,762   6.13       118,006     1,845   6.15       96,328     1,536   6.38  
Total loans receivable     1,429,777     19,299   5.41       1,447,335     19,624   5.33       1,488,832     20,348   5.48  
Total earning assets   $ 2,007,114   $ 24,720   4.94 %   $ 1,953,148   $ 24,478   4.94 %   $ 2,015,825   $ 25,851   5.14 %
 
Sources of Funds
Interest-bearing deposits:
Regular savings $ 323,243 $ 387 0.49 % $ 308,961 $ 435 0.56 % $ 345,498 $ 552 0.65 %
Interest checking and money market 922,098 1,796 0.79 888,560 2,003 0.89 722,248 1,663 0.93
Time deposits 228,318 1,430 2.54 250,009 1,744 2.77 249,374 2,047 3.33
Public funds time     29,088     54   0.75       30,310     67   0.88       10,307     70   2.75  
Total interest-bearing deposits 1,502,747 3,667 0.99 1,477,840 4,249 1.14 1,327,427 4,332 1.32
Short-term borrowings 51,238 66 0.51 40,192 62 0.60 308,065 426 0.55
Other borrowed money 25,000 268 4.29 25,000 275 4.29 50,000 548 4.38
Junior subordinated debt     29,400     661   9.00       29,400     661   9.00       29,400     661   8.99  
Total interest-bearing liabilities 1,608,385 4,662 1.17 1,572,432 5,247 1.32 1,714,892 5,967 1.41
Noninterest-bearing funds (net)     398,729               380,716               300,933          
Total sources to fund earning assets   $ 2,007,114   $ 4,662   0.94 %   $ 1,953,148   $ 5,247   1.06 %   $ 2,015,825   $ 5,967   1.20 %

Net interest income and margin on a tax-equivalent basis
$ 20,058 4.00 % $ 19,231 3.88 % $ 19,884 3.94

%
Tax-exempt adjustment   625   656   547
Net interest income and margin       $ 19,433   3.87 %       $ 18,575   3.74 %       $ 19,337   3.83 %
 
 
 
Other Balances:
Cash and due from banks $ 42,812 $ 46,702 $ 38,763
Other assets 97,360 99,482 75,055
Total assets 2,147,286 2,099,332 2,129,643
Demand deposits (noninterest-bearing) 325,359 306,146 285,580
Other liabilities 11,548 19,600 12,702
Stockholders' equity     201,994               201,154               116,469          
 
 
Metro Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
     
 
 
  3/31/2010     3/31/2009   Year-ended
(dollar amounts in thousands)   Three Months Ended     12/31/2009  
 
Balance at beginning of period $ 14,391 $ 16,719 $ 16,719
Provisions charged to operating expense   2,400     3,200     12,425  
16,791 19,919 29,144
 
Recoveries on loans charged-off:
Commercial 31 3 92
Consumer 1 1 6
Real estate   13     0     210  
Total recoveries 45 4 308
 
Loans charged-off:
Commercial (1,344) (1,860) (7,405)
Consumer (61) (7) (21)
Real estate   (253)     (1,825)     (7,635)  
 
Total charged-off   (1,658)     (3,692)     (15,061)  
 
Net charge-offs   (1,613)     (3,688)     (14,753)  
 
Balance at end of period   $ 15,178     $ 16,231     $ 14,391  
 

Net charge-offs (annualized) as a percentage of average loans outstanding
0.46 % 1.03 % 1.02 %
 

Allowance for loan losses as a percentage of period-end loans
1.08 % 1.12 % 1.00 %
 
 
Metro Bancorp, Inc. and Subsidiaries
Summary of Nonperforming Loans and Assets
(unaudited)
         

The following table presents information regarding nonperforming loans and assets as of March 31, 2010 and for the preceding four quarters (dollar amounts in thousands).
 
March 31, December 31, September 30, June 30, March 31,
  2010       2009       2009       2009       2009  
Nonaccrual loans:
Commercial $ 13,142 $ 14,403 $ 8,833 $ 8,240 $ 8,479
Consumer 1,064 654 984 882 724
Real Estate:
Construction 17,424 3,969 4,580 6,045 7,870
Real Estate   14,419       18,719       10,694       16,628       12,348  
Total nonaccrual loans 46,049 37,745 25,091 31,795 29,421

Loans past due 90 days or more and still accruing
  249       0       5       0       0  
Total nonperforming loans   46,298       37,745       25,096       31,795       29,421  
 
Foreclosed real estate   7,154       7,821       6,875       1,650       989  
 
Total nonperforming assets $ 53,452     $ 45,566     $ 31,971     $ 33,445     $ 30,410  
 
 
Nonperforming loans to total loans 3.28 % 2.61 % 1.71 % 2.19 % 2.03 %
 
Nonperforming assets to total assets 2.46 % 2.12 % 1.53 % 1.61 % 1.44 %
 
Nonperforming loan coverage 33 % 38 % 58 % 61 % 55 %
 

Allowance for loan losses as a percentage of total period-end loans
1.08 % 1.00 % 0.99 % 1.33 % 1.12 %
 
Nonperforming assets / capital plus allowance for loan losses 24 % 21 % 15 % 24 % 22 %
 

Copyright Business Wire 2010

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