HARRISBURG, Pa., July 29, 2015 (GLOBE NEWSWIRE) -- Metro Bancorp, Inc. (Metro or the Company) (NASDAQ:METR), parent company of Metro Bank, today reported net income of $4.2 million, or $0.29 per diluted common share, for the quarter ended June 30, 2015 compared to $5.1 million, or $0.35 per diluted common share, for the second quarter of 2014. The results for the quarter were impacted by certain one-time and accelerated expenses totaling $1.8 million after tax, or $0.13 per diluted common share offset partially by after-tax securities gains of $289,000, or $0.02 per diluted common share.  The Company also reported net loan growth of $217.0 million, or 12%, over the past twelve months and total deposit growth of $181.7 million, or 8%, for the same period.
Financial Highlights
(in millions, except per share data)
                     
  Quarter Ended     Six Months Ended
          %         %
  06/30/15   06/30/14   Change     06/30/15 06/30/14 Change
Total assets $ 3,001.4     $ 2,868.9     5 %          
                     
Total loans (net) 2,044.6     1,827.5     12 %          
                     
Total deposits 2,368.7     2,187.0     8 %          
                     
                     
Total revenues $ 34.0     $ 31.5     8 %     $ 67.6   $ 61.9   9 %
                     
Net income 4.2     5.1     (18 )%     9.9   10.0   (1 )%
                     
Adjusted net income* 5.7     5.1     13 %     11.7   10.0   16 %
                     
                     
Diluted net income per common share $ 0.29     $ 0.35     (17 )%     $ 0.68   $ 0.70   (3 )%
                     
Adjusted diluted net income per common share* 0.40     0.35     14 %     0.80   0.70   14 %

* Non-GAAP financial measure; please refer to the Statement Regarding Non-GAAP Financial Measures included in this document for an explanation of the Company's use of non-GAAP financial measures and their reconciliation to GAAP measures.

"We continue to work hard at and are pleased with the strength of our balance sheet as evidenced by solid loan growth of 12% and deposit growth of 8%" said Gary L. Nalbandian, the Company's Chairman and Chief Executive Officer.  "While our net income for the quarter was impacted by the acceleration of certain one-time expenses, our revenue growth continues to increase and we continue to focus on disciplined core noninterest expense management."

"As part of our commitment to enhancing shareholder returns, I am pleased to announce that on July 24, 2015, Metro's Board of Directors declared a third quarter cash dividend of $0.07 per common share, payable August 26, 2015 to shareholders of record on August 7, 2015."

Income Statement Highlights
  • The Company recorded net income of $4.2 million, or $0.29 per diluted common share, for the second quarter of 2015 compared to net income of $5.1 million, or $0.35 per diluted common share for the same period one year ago; a $904,000, or 18%, decrease. Exclusive of net gains on sales of securities and certain nonrecurring expenses, adjusted net income was $5.7 million*, or $0.40 per diluted common share*, for the second quarter of 2015 compared to $5.1 million, or $0.35 per diluted common share, for the same period one year ago. Net income for the first six months of 2015 totaled $9.9 million, or $0.68 per diluted common share; down $126,000, or 1%, from $10.0 million, or $0.70 per diluted common share, recorded for the first half of 2014. Adjusted net income for the first six months of 2015 totaled $11.7 million*, or $0.80 per diluted common share*, compared to $10.0 million, or $0.70 per diluted common share, recorded for the first half of 2014. 
  • Net income for the second quarter of 2015 was negatively impacted by several nonrecurring noncash expenses, including (1) $1.4 million of accelerated stock-based compensation expense due to the immediate vesting of all outstanding employee stock options triggered by a provision in the Company's Employee Stock Option and Restricted Stock Plan, (2) a $499,000 write-off of pre-construction costs related to a terminated land lease agreement for a planned future store, and (3) $462,000 of accelerated depreciation expense due to closing two stores (as previously announced). These expenses were partially offset by $444,000 net gains on sales of securities during the second quarter of 2015. 
  • Total revenues (net interest income plus noninterest income) for the second quarter of 2015 were $34.0 million, up $2.5 million, or 8%, over total revenues of $31.5 million for the same quarter one year ago and were up $377,000, or 1%, over total revenues of $33.6 million for the previous quarter.  Total revenues for the first half of 2015 increased $5.7 million, or 9%, over the first half of 2014.  
  • Return on average stockholders' equity (ROE) was 6.21% for the second quarter of 2015 compared to 8.30% for the same period last year and to 8.62% the previous quarter.  Exclusive of net gains on sales of securities and certain nonrecurring expenses, adjusted ROE was 8.52%* for the second quarter of 2015 compared to 8.30% for the same period last year. ROE for the first six months of 2015 was 7.41%, compared to 8.36% for the first six months of 2014.  Adjusted ROE for the first half of 2015 was 8.73%* compared to 8.35% for the first six months of 2014. 
  • The Company's net interest margin on a fully-taxable basis for the second quarter of 2015, was 3.66%, compared to 3.70% recorded in the first quarter of 2015 and 3.59% for the second quarter of 2014. The Company's deposit cost of funds for the second quarter was 0.26%, the same as the previous quarter and for the same period one year ago.

* Non-GAAP financial measure; please refer to the Statement Regarding Non-GAAP Financial Measures included in this document for an explanation of the Company's use of non-GAAP financial measures and their reconciliation to GAAP measures.
  • The provision for loan losses totaled $2.6 million for the second quarter of 2015, compared to $1.5 million for the previous quarter and compared to $1.1 million for the second quarter one year ago.  The provision for the first half of 2015 was up $2.1 million, or 105%, over the first half of 2014. 
  • Noninterest expenses for the second quarter of 2015 were $25.0 million, up $1.1 million, or 5%, over the previous quarter and up $1.9 million, or 8%, over the same quarter last year. Total noninterest expenses for the first six months of 2015 were up $3.0 million, or 7%, compared to the first half of 2014.  The increase for both the second quarter and the first half of 2015 are primarily related to the three nonrecurring events previously mentioned.  
  • The efficiency ratio for the second quarter of 2015 was 73.4% compared to 71.0% for the previous quarter and 73.1% for the second quarter of 2014.

Balance Sheet Highlights
  • Loan growth continues to be strong as net loans grew $66.6 million, or 3% (nonannualized), on a linked quarter basis to $2.04 billion and were up $217.0 million, or 12%, over the second quarter 2014. 
  • Nonperforming assets were 1.39% of total assets at June 30, 2015, compared to 1.43% of total assets for the previous quarter and compared to 1.42% of total assets one year ago. 
  • Total deposits at June 30, 2015 were $2.37 billion, up $181.7 million, or 8%, compared to same time last year.  Total core deposits grew $152.1 million, or 7%, over the past twelve months and totaled $2.19 billion at June 30, 2015. 
  • Metro's capital levels remain strong with a Tier 1 Leverage ratio of 9.20%, a common equity tier 1 ratio of 11.82% and a total risk-based capital ratio of 13.02%. 
  • Stockholders' equity totaled $267.0 million, or 9% of total assets, at the end of the second quarter 2015, up $18.2 million, or 7%, over the past twelve months.  At June 30, 2015, the Company's book value per common share was $18.98, down slightly from $19.04 per common share at March 31, 2015 but up $1.53, or 9%, per common share over June 30, 2014.  The market price of Metro's common stock increased by 13%, over the past twelve months from $23.12 per common share at June 30, 2014 to $26.14 per common share at June 30, 2015.

Income Statement Overview
  Three months endedJune 30,   Six months endedJune 30,
(dollars in thousands, except per share data ) 2015   2014 % Change   2015   2014 % Change
Total revenues $ 34,003     $ 31,490   8 %   $ 67,629     $ 61,903   9 %
Provision for loan losses 2,600     1,100   136     4,100     2,000   105  
Total noninterest expenses 24,954     23,021   8     48,831     45,803   7  
Net income 4,177     5,081   (18 )   9,899     10,025   (1 )
Adjusted net income* 5,726     5,081   13     11,658     10,018   16  
Diluted net income per common share $ 0.29     $ 0.35   (17 )%   $ 0.68     $ 0.70   (3 )%
Adjusted diluted net income per common share* 0.40     0.35   14     0.80     0.70   14  
Cash dividends per common share 0.07           0.14        
Efficiency ratio 73.4 %   73.1 %     72.2 %   74.0 %  

Metro recorded net income of $4.2 million, or $0.29 per diluted common share, for the second quarter of 2015 compared to net income of $5.1 million, or $0.35 per diluted common share, for the second quarter of 2014.  Exclusive of net gains on sales of securities and certain nonrecurring expenses, adjusted net income was $5.7 million*, or $0.40 per diluted common share*, for the second quarter of 2015 compared to $5.1 million, or $0.35 per diluted common share, for the same period one year ago.

Net income for the first six months of 2015 was $9.9 million compared to $10.0 million recorded in the first six months of 2014, down 1%.  Earnings per diluted common share for the first half of 2015 were $0.68 compared to $0.70 for the same period last year, a 3% decrease.  Adjusted net income for the first six months of 2015 totaled $11.7 million*, or $0.80 per diluted common share*, compared to $10.0 million, or $0.70 per diluted common share, recorded for the first half of 2014.

Total revenues (net interest income plus noninterest income) for the second quarter of 2015 were $34.0 million, up $2.5 million, or 8%, over the second quarter of 2014.  Total revenues for the first six months of 2015 were $67.6 million, up $5.7 million, or 9%, over the first half of 2014.

Noninterest expenses for the quarter totaled $25.0 million, up $1.9 million, or  8%, compared to the same period in 2014. On a linked quarter basis, total noninterest expenses were up $1.1 million, or 5%, over the first quarter of 2015.  Total noninterest expenses for the first half of 2015 were $48.8 million, up $3.0 million, or 7%, over the same period last year. The increase for both the second quarter and the first half of 2015 are primarily related to the three nonrecurring events previously mentioned.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2015 totaled $25.6 million, up $1.6 million, or 7%, over the second quarter of 2014.  For the first six months of 2015, net interest income totaled $51.6 million versus $47.3 million for the same period in 2014, a $4.3 million, or 9%, increase.

* Non-GAAP financial measure; please refer to the Statement Regarding Non-GAAP Financial Measures included in this document for an explanation of the Company's use of non-GAAP financial measures and their reconciliation to GAAP measures.

Average interest-earning assets for the second quarter of 2015 totaled $2.83 billion versus $2.87 billion for the previous quarter and were up $106.9 million, or 4%, over the second quarter of 2014.  Average loans receivable increased by $217.8 million, or 12%, and average investment securities balances decreased by $110.9 million, or 12%, from the second quarter of last year.  Average interest-bearing deposits totaled $1.87 billion for the second quarter of 2015, up $181.6 million, or 11%, over the same period of 2014 and average noninterest-bearing deposits for the second quarter 2015 were $532.3 million, up $55.6 million, or 12%, over the second quarter last year.  Average interest-earning assets for the first six months of 2015 totaled $2.85 billion versus $2.70 billion for the first six months of 2014, an increase of $149.0 million, or 6%.

The net interest margin for the second quarter of 2015 was 3.59%, down 4 basis points (bps) from the 3.63% recorded for the previous quarter but up 9 bps over the 3.50% recorded in the second quarter one year ago. The net interest margin on a fully-taxable basis for the second quarter of 2015 was 3.66%, down 4 bps from the previous quarter but up 7 bps compared to the second quarter of 2014. Net interest income and the net interest margin in the first quarter of 2015 were higher due to the receipt by Metro of a special dividend of $555,000 paid in the first quarter by the Federal Home Loan Bank.

The net interest margin for the first half of 2015 was 3.61%, up 12 bps over the 3.49% recorded for the first six months of 2014. On a fully-taxable basis, the net interest margin for the first six months of 2015 was 3.68%, up 10 bps compared to 3.58% for the first half of 2014.

Metro's deposit cost of funds for the second quarter of 2015 was 0.26%, compared to the same amount for the previous quarter, and the second quarter one year ago. Metro's deposit cost of funds of 0.26% stayed the same in the first six months of 2015 compared to the same period in 2014. The total cost of all funding sources for the second quarter of 2015 was 0.28%, compared to the same amount for the previous quarter and 0.31% for the same period in 2014.             Change in Net Interest Income and Rate/Volume Analysis

The increase in net interest income on a fully tax-equivalent basis for the second quarter and for the first six months of 2015 over the same periods of 2014 was primarily due to an increase in the level of interest-earning assets as shown in the table below.
(dollars in thousands)   Tax-equivalent net interest income
2015 vs. 2014   VolumeChange RateChange TotalIncrease %Increase  
2nd Quarter   $ 1,927   $ (409 ) $ 1,518     6 %  
Six Months   $ 4,409   $ (209 ) $ 4,200     9 %  

Noninterest Income

Noninterest income for the second quarter of 2015 totaled $8.4 million, up $939,000, or 13%, over the second quarter one year ago. Card, service charges and other noninterest income for the second quarter were $7.5 million, an increase of $159,000, or 2%, over the second quarter last year. Gains on the sale of loans totaled $474,000 for the second quarter of 2015 versus $138,000 for the same period in 2014. Net gains on investment securities totaled $444,000 for the second quarter of 2015. There were no sales or calls of investment securities for the second quarter of 2014.

Noninterest income for the first six months of 2015 increased $1.4 million, or 10%, compared to the first half of 2014.  Card, service charges and other noninterest income were $14.6 million, an increase of $350,000, or 2%, compared to the same period in 2014, while gains on sales of loans were $945,000 for the first half of 2015 versus $274,000 for the first six months of 2014, up 245%. Net gains on sales of securities for the first six months of 2015 were $416,000 compared to $11,000 for the first half of 2014. 

The breakdown of noninterest income for the second quarter and for the first six months of 2015 and 2014, respectively, is shown in the table below:
  Three months ended June 30,   Six months ended June 30,
(dollars in thousands) 2015 2014 % Increase   2015 2014 % Increase
Card, service charges and other noninterest income $ 7,516   $ 7,357   2 %   $ 14,638   $ 14,288   2 %
Gains on sales of loans 474   138   243     945   274   245  
Net gains on sales of securities 444         416   11   3,682  
Total noninterest income $ 8,434   $ 7,495   13 %   $ 15,999   $ 14,573   10 %

Noninterest Expenses

Noninterest expenses for the second quarter of 2015 were $25.0 million, up $1.1 million, or 5%, on a linked quarter basis, and up $1.9 million, or 8%, compared to the second quarter one year ago. For the first six months of 2015, noninterest expense totaled $48.8 million, up $3.0 million, or 7%, over $45.8 million recorded for the first half of 2014.

Due to the immediate vesting of all outstanding options under the 2006 Employee Stock Option and Restricted Stock Plan (the Plan), Metro recorded accelerated stock-based compensation expenses totaling $1.4 million during the second quarter of 2015. A total of $823,000 of this expense is not deductible for federal tax purposes.  The accelerated vesting was triggered by a provision in the Plan which provided for such acceleration upon a change in the identity of at least four (4) members of the board of directors or the addition of four (4) or more new members to the board of directors, or any combination of the foregoing, within any two (2) consecutive calendar year periods.  As a result of this full acceleration charge, Metro will not recognize any further compensation expense related to these vested options in future periods.

Metro had previously entered into a land lease for the premises located at the corner of Airport Rd & Rt. 501 (Lititz Pike), Manheim Township, Lancaster County, Pennsylvania, where  Metro had planned to construct a full-service store. During the second quarter of 2015, the lease was terminated without penalty.  As a result, Metro wrote off $499,000 of accumulated costs associated with pre-construction activities, including site studies and plans as well as engineering and legal costs.

As previously announced in April 2015, Metro permanently closed two stores effective June 30, 2015.  As a result of these store closures, Metro accelerated the remaining depreciation on certain assets at these locations during the first and second quarters of 2015.  The accelerated depreciation recognized in occupancy and equipment expense totaled $462,000 during the second quarter of 2015 and $755,000 during the six months ended June 30, 2015. Beginning in the third quarter of 2015, Metro will experience a reduction in total occupancy and equipment expenses as the stores are no longer in operation.

The breakdown of noninterest expenses for the second quarter and for the first six months of 2015 and 2014, respectively, are shown in the table below:

  Three months ended June 30,   Six months ended June 30,
(dollars in thousands) 2015 2014 % Change   2015 2014 % Change
Salaries and employee benefits $ 12,084   $ 11,055   9 %   $ 22,963   $ 22,482   2 %
Occupancy and equipment 3,370   3,098   9     6,595   6,603    
Advertising and marketing 398   376   6     762   769   (1 )
Data processing 3,692   3,320   11     7,230   6,570   10  
Regulatory assessments and related costs 556   584   (5 )   1,123   1,153   (3 )
Loan expense 206   881   (77 )   1,608   1,016   58  
Professional services 591   301   96     1,459   602   142  
Other expenses 4,057   3,406   19     7,091   6,608   7  
Total noninterest expenses $ 24,954   $ 23,021   8 %   $ 48,831   $ 45,803   7 %

Excluding the impact of the three above mentioned nonrecurring expenses, total noninterest expenses for the second quarter and first six months of 2015 would have been $22.6 million and $46.2 million, respectively.

Balance Sheet

  As of June 30,  
(dollars in thousands) 2015 2014 % Increase
Total assets $ 3,001,357   $ 2,868,928   5 %
Total loans (net) 2,044,570   1,827,544   12  
Total deposits 2,368,688   2,186,980   8  
Total core deposits 2,188,381   2,036,308   7  
Total stockholders' equity 266,981   248,770   7  

Lending

Gross loans receivable totaled $2.1 billion at June 30, 2015, an increase of $218.6 million, or 12%, over June 30, 2014.  The composition of the Company's loan portfolio at June 30, 2015 and June 30, 2014 was as follows:
(dollars in thousands) June 30, 2015 % of Total   June 30, 2014 % of Total   $ Change %Change  
Commercial and industrial $ 591,860   28 %   $ 467,587   25 %   $ 124,273   27 %  
Commercial tax-exempt 58,319   3     76,674   4     (18,355 ) (24 )  
Owner occupied real estate 313,377   15     308,708   17     4,669   2    
Commercial construction and land development 136,354   7     130,449   7     5,905   5    
Commercial real estate 625,344   30     544,544   29     80,800   15    
Residential 122,838   6     103,564   6     19,274   19    
Consumer 222,349   11     220,289   12     2,060   1    
Gross loans receivable $ 2,070,441   100 %   $ 1,851,815   100 %   $ 218,626   12 %  

The Company experienced loan growth in every major category over the past twelve months except for commercial tax-exempt loans which represent the smallest segment of Metro's loan portfolio.  On a linked-quarter basis, total net loans increased by $66.7 million, or 3% (nonannualized).

Asset Quality

The Company's asset quality ratios are shown below:
  Quarter ended
  June 30, 2015   March 31, 2015   June 30, 2014  
Nonperforming assets/total assets 1.39 %   1.43 %   1.42 %  
Net loan charge-offs (annualized)/average total loans 0.49 %   0.15 %   0.17 %  
Allowance for loan losses/total loans 1.25 %   1.29 %   1.31 %  
Nonperforming loan coverage 72 %   74 %   66 %  
Nonperforming assets/capital and allowance for loan losses 14 %   14 %   15 %  

Nonperforming loans totaled $35.8 million at June 30, 2015, an increase of $1.1 million from March 31, 2015, while foreclosed asset balances decreased by $2.0 million to $6.0 million.  Compared to June 30, 2014, nonperforming loans decreased $840,000, or 2%, and foreclosed assets increased $2.0 million, or 49%.

Total nonperforming assets decreased during the second quarter of 2015 by $860,000, or 2%, to $41.8 million, or 1.39%, of total assets at June 30, 2015, compared to $42.7 million, or 1.43%, of total assets at March 31, 2015. Nonperforming assets were up $1.1 million, or 3%, over the past year,  compared to $40.7 million, or 1.42% of total assets at June 30, 2014.

At June 30, 2015, foreclosed assets totaling $2.0 million were under contract to be sold with no additional net loss to the Company expected.

Net loan charge-offs totaled $2.5 million for the second quarter of 2015, composed of $2.6 million in gross loan charge-offs offset partially by $82,000 in recoveries.  Three different relationships accounted for $1.9 million, or 75%, of the total net charge-offs for the second quarter.  Total net loan charge-offs for the first six months of 2015 were $3.2 million, or 0.32%, of average loans  outstanding compared to $839,000, or 0.09%, for the first half of 2014.

The Company recorded a provision for loan losses of $2.6 million for the second quarter of 2015 as compared to $1.5 million for the previous quarter and $1.1 million recorded in the second quarter of 2014. The allowance for loan losses (allowance or ALL) totaled $25.9 million as of June 30, 2015, compared to $25.8 million at March 31, 2015 and $24.3 million at June 30, 2014. The allowance represented 1.25% of gross loans outstanding at June 30, 2015, compared to 1.29% at March 31, 2015 and 1.31%  at June 30, 2014.

Deposits

The Company's deposit balances at June 30, 2015 were $2.37 billion, compared to total deposits of  $2.19 billion one year ago.

The change in core deposits over the past twelve months by type of account is as follows:
  As of June 30,        
(dollars in thousands) 2015   2014   %Change   2nd Quarter 2015 Cost of Funds
Demand noninterest-bearing $ 569,663     $ 508,012     12 %   0.00 %
Interest checking and money market 989,940     931,393     6     0.26  
Savings 497,442     474,416     5     0.27  
  Subtotal 2,057,045     1,913,821     7     0.20  
Time 131,336     122,487     7     1.11  
Total core deposits $ 2,188,381     $ 2,036,308     7 %   0.25 %

 Total core deposits, excluding time deposits, increased $143.2 million, or 7%, over the past twelve months. The cost of core deposits, excluding time deposits, during the second quarter of 2015 was 0.20%, the same amount as the previous quarter and down 1 basis point (bp) from the second quarter one year ago.  The cost of total core deposits for the second quarter of 2015 was 0.25%, down 1 bp from both the previous quarter and the second quarter of 2014.

            Change in total core deposits by type of customer was as follows:

  June 30, % of   June 30, % of   %  
(dollars in thousands) 2015 Total   2014 Total   Change  
Consumer $ 1,057,058   48 %   $ 996,772   49 %   6 %  
Commercial 805,433   37     725,106   36     11    
Government 325,890   15     314,430   15     4    
Total $ 2,188,381   100 %   $ 2,036,308   100 %   7 %  

Total consumer core deposits increased by $60.3 million, or 6%, and total commercial core deposits grew by $80.3 million, or 11%, over the past twelve months.

Investments

At June 30, 2015, the Company's investment portfolio totaled $765.2 million, down $43.9 million, or 5%, on a linked quarter basis and down $79.6 million, or 9%, compared to June 30, 2014. The Company continues to redirect regular monthly cash flows from its investment portfolio into higher yield loan growth at this time. Detailed below is information regarding the composition and characteristics of the portfolio at June 30, 2015:
Product description Available for sale   Held to maturity   Total  
(dollars in thousands)            
U.S. Government agency securities $ 32,946     $ 149,122     $ 182,068    
Mortgage-backed securities:            
  Residential mortgage-backed securities 55,819     11,741     67,560    
  Agency collateralized mortgage obligations 296,103     174,921     471,024    
Corporate debt securities     5,000     5,000    
Municipal securities 29,878     9,702     39,580    
Total $ 414,746     $ 350,486     $ 765,232    
Duration (in years) 4.8     5.4     5.1    
Average life (in years) 5.4     6.3     5.8    
Quarterly average yield (annualized) 2.28 %   2.50 %   2.37 %  

At June 30, 2015, the after-tax unrealized loss on the Company's available for sale portfolio was $5.6 million, as compared to an after-tax unrealized loss of $3.9 million at December 31, 2014 and compared to an after-tax unrealized loss of $8.8 million at June 30, 2014.

Capital

Stockholders' equity at June 30, 2015 totaled $267.0 million, compared to $248.8 million at June 30, 2014. Return on average stockholders' equity (ROE) for the second quarter of 2015 was 6.21%, compared to 8.62% for the previous quarter and 8.30% for the second quarter last year. Exclusive of net gains on sales of securities and certain nonrecurring expenses, adjusted ROE was 8.52%* for the second quarter of 2015 compared to 8.30% for the same period last year.  ROE for the first six months of 2015 was 7.41%, compared to 8.36% for the first half of 2014. Adjusted ROE for the first half of 2015 was 8.73%* compared to 8.35% for the first six months of 2014.

The Company's capital ratios at June 30, 2015 and 2014 were as follows:
  6/30/2015 6/30/2014 Regulatory guidelines "well capitalized"
Leverage ratio 9.20 % 9.57 % 5.00 %
CET1 11.82   n/a 6.50  
Tier 1 (risk-based) 11.86   13.36   8.00  
Total capital (risk-based) 13.02   14.55   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.

During the first six months of 2015, the Company repurchased 288,900 shares of its common stock as part of its previously announced stock buyback program which began late in the fourth quarter of 2014.  Total shares repurchased to date under this program are 301,200.

* Non-GAAP financial measure; please refer to the Statement Regarding Non-GAAP Financial Measures included in this document for an explanation of the Company's use of non-GAAP financial measures and their reconciliation to GAAP measures.

At June 30, 2015, the Company's book value per common share was $18.98, compared to $17.45 one year ago, up 9%.

The market price of the Company's common stock increased by 13% from $23.12 per common share at June 30, 2014 to $26.14 per common share at June 30, 2015.

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 based on the information available to us at the time, 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 in particular interest rate policies of the Board of Governors of the Federal Reserve System, including the duration of such policies;
   
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;
   
federal budget and tax negotiations and their effects on economic and business conditions in general and our customers in particular;
   
the federal government's inability to reach a deal to permanently raise the debt ceiling and the potential negative results on economic and business conditions;
   
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and other changes in laws and regulations affecting the financial services industry (including laws concerning taxes, banking, securities and insurance as well as enhanced expectations of regulators);
   
possible impacts of the capital and liquidity requirements of the Basel III standards as implemented or to be implemented by the Federal Reserve and other US regulators, as well as other regulatory pronouncements and prudential standards;
   
changes in regulatory policies on positions relating to capital distributions;
   
our ability to generate sufficient earnings to justify capital distributions;
   
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;
   
our ability to manage current levels of impaired assets;
   
continued levels of loan volume origination;
   
the adequacy of the allowance for loan losses or any provisions;
   
the views and actions of the Consumer Financial Protection Bureau regarding consumer credit protection laws and regulations;
   
changes resulting from legislative and regulatory actions with respect to the current economic and financial industry environment;
   
changes in the Federal Deposit Insurance Corporation (FDIC) deposit fund and the associated premiums that banks pay to the fund;
   
interest rate, market and monetary fluctuations;
   
the results of the regulatory examination and supervision process;
   
unanticipated regulatory or legal proceedings and liabilities and other costs;
   
compliance with laws and regulatory requirements of federal, state and local agencies, including regulatory expectations regarding enhanced compliance programs;
   
our ability to continue to grow our business internally or through acquisitions and successful integration of new or acquired entities while controlling costs;
   
deposit flows;
   
the inability to achieve anticipated cost savings in the amount of time expected, and the emergence of unexpected offsetting costs in the compliance or risk management areas or otherwise;
   
changes in consumer spending and saving habits relative to the financial services we provide;
   
the ability to hedge certain risks economically and effectively;
   
the loss of key officers or other personnel;
   
changes in accounting principles, policies and guidelines as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (FASB), and other accounting standards setters;
   
the timely development of competitive new products and services by us and the acceptance of such products and services by customers;
   
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;
   
other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services;
   
rapidly changing technology;
   
our continued relationships with major customers;
   
the effect of terrorist attacks and threats of actual war;
   
interruption or breach in security of our information systems, including cyber-attacks, resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit systems or disclosure of confidential information;
   
our ability to maintain compliance with the exchange rules of The Nasdaq Stock Market, Inc.;
   
our ability to maintain the value and image of our brand and protect our intellectual property rights;
   
disruptions due to flooding, severe weather or other natural disasters or Acts of God; 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.

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements.  The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements when filed with the Securities and Exchange Commission (SEC).  Accordingly, the financial information in this announcement is subject to change.  The statements are valid only as of the date hereof and the Company disclaims any obligation to update this information.

Statement Regarding Non-GAAP Financial Measures

This document contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The tables that follow present reconciliations of certain non-GAAP measures to the most directly comparable GAAP measures. These reconciliations exclude certain nonrecurring charges incurred during the three and six months ended June 30, 2015, which the Company believes do not reflect the operating performance of the Company during those periods. These nonrecurring charges include (1) stock-based compensation expense related to the immediate vesting of all outstanding employee stock options during the second quarter of 2015, (2) a write-off during the second quarter of 2015 of pre-construction costs related to a terminated land lease agreement for a planned future store, and (3) accelerated depreciation expense recognized during the three and six months ended June 30, 2015 due to closing two stores. There have not been similar nonrecurring charges within the prior two years and, based on current information, the Company believes these charges are not reasonably likely to recur within two years. Additionally, these reconciliations exclude net gains from the sales of securities for all periods presented. The Company's management uses these non-GAAP measures to evaluate the performance of the Company and believes this presentation also increases the comparability of period-to-period results.

The Company believes these non-GAAP measures, in addition to GAAP measures, provide useful information for investors to evaluate the Company's results. These non-GAAP measures should not be considered a substitute for GAAP measures, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

  Three months ended June 30,   Six months ended June 30,
(in thousands, except per share amounts) 2015 2014   2015 2014
Adjusted net income reconciliation:          
Net income $ 4,177   $ 5,081     $ 9,899   $ 10,025  
Nonrecurring charges, net of tax:          
Accelerated vesting of employee stock options (1) 1,214       1,214    
Accelerated depreciation expense for two store closures (1) 300       491    
Pre-construction costs of cancelled planned store (1) 324       324    
Total nonrecurring charges, net of tax 1,838       2,029    
Net gains on sales of securities, net of tax (1) (289 )     (270 ) (7 )
Adjusted net income (2) $ 5,726   $ 5,081     $ 11,658   $ 10,018  
           
Adjusted diluted net income per common share reconciliation:        
Diluted net income per common share $ 0.29   $ 0.35     $ 0.68   $ 0.70  
Nonrecurring charges, net of tax:          
Accelerated vesting of employee stock options (1) 0.09       0.09    
Accelerated depreciation expense for two store closures (1) 0.02       0.03    
Pre-construction costs of cancelled planned store (1) 0.02       0.02    
Total nonrecurring charges, net of tax 0.13       0.14    
Net gains on sales of securities, net of tax (1) (0.02 )     (0.02 )  
Adjusted diluted net income per common share (2) $ 0.40   $ 0.35     $ 0.80   $ 0.70  
           
Adjusted return on average stockholders' equity reconciliation:          
Adjusted net income (2) $ 5,726   $ 5,081     $ 11,658   $ 10,018  
Average stockholders' equity 269,711   245,650     269,429   241,927  
Adjusted return on average stockholders' equity (2) 8.52 % 8.30 %   8.73 % 8.35 %

(1) Assumes a 35% tax rate. The accelerated vesting of employee stock options resulted in a pretax expense of $1.4 million during the second quarter of 2015, $823,000 of which is not deductible for federal tax purposes. (2) Non-GAAP measure.
Metro Bancorp, Inc. and Subsidiaries
Selected Consolidated Financial Data
                     
  At or for the   For the
  Three months ended   Six months ended
  June 30, March 31,   % June 30, %   June 30, June 30, %
(dollars in thousands, except per share amounts) 2015 2015   Change 2014 Change   2015 2014 Change
Income Statement Data:                    
Net interest income $ 25,569   $ 26,061     (2 )% $ 23,995   7 %   $ 51,630   $ 47,330   9 %
Provision for loan losses 2,600   1,500     73   1,100   136     4,100   2,000   105  
Noninterest income 8,434   7,565     11   7,495   13     15,999   14,573   10  
Total revenues 34,003   33,626     1   31,490   8     67,629   61,903   9  
Noninterest expenses 24,954   23,877     5   23,021   8     48,831   45,803   7  
Net income 4,177   5,722     (27 ) 5,081   (18 )   9,899   10,025   (1 )
Per Common Share Data:                    
Net  income per common share:                    
Basic $ 0.29   $ 0.40     (28 )% $ 0.36   (19 )%   $ 0.70   $ 0.70   %
Diluted 0.29   0.39     (26 ) 0.35   (17 )   0.68   0.70   (3 )
Cash dividends per common share 0.07   0.07       $       0.14      
Book value 18.98   19.04       $ 17.45   9          
Weighted-average common shares outstanding:                    
Basic 14,112   14,168       14,184       14,140   14,172    
Diluted 14,373   14,437       14,387       14,412   14,366    
Balance Sheet Data:                    
Total assets $ 3,001,357   $ 2,974,615     1 % $ 2,868,928   5 %        
Loans receivable (net) 2,044,570   1,977,955     3   1,827,544   12          
Allowance for loan losses 25,871   25,755       24,271   7          
Investment securities 765,232   809,107     (5 ) 844,856   (9 )        
Total deposits 2,368,688   2,411,519     (2 ) 2,186,980   8          
Core deposits 2,188,381   2,235,292     (2 ) 2,036,308   7          
Stockholders' equity 266,981   270,764     (1 ) 248,770   7          
Capital:                    
Total stockholders' equity to assets 8.90 % 9.10 %     8.67 %          
Leverage ratio 9.20   9.05       9.57            
Risk-based capital ratios:                    
CET1 11.82   12.23       n/a          
Tier 1 11.86   12.27       13.36            
Total Capital 13.02   13.48       14.55            
Performance Ratios:                    
Deposit cost of funds 0.26 % 0.26 %     0.26 %     0.26 % 0.26 %  
Cost of funds 0.28   0.28       0.31       0.28   0.31    
Net interest margin 3.59   3.63       3.50       3.61   3.49    
Return on average assets 0.57   0.77       0.72       0.67   0.72    
Return on average stockholders' equity 6.21   8.62       8.30       7.41   8.36    
Asset Quality:                    
Net charge-offs (annualized) to average loans outstanding 0.49 % 0.15 %     0.17 %     0.32 % 0.09 %  
Nonperforming assets to total period-end assets 1.39   1.43       1.42            
Allowance for loan losses to total period-end loans 1.25   1.29       1.31            
Allowance for loan losses to period-end nonperforming loans 72   74       66            
Nonperforming assets to capital and allowance for loan losses 14   14       15            

Metro Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
       
  June 30,   December 31,
  2015   2014
(in thousands, except share and per share amounts) (Unaudited)    
       
Assets      
Cash and cash equivalents $ 57,678     $ 42,832  
Securities, available for sale at fair value 414,746     528,038  
Securities, held to maturity at cost (fair value 2015: $345,774;  2014: $319,923) 350,486     324,994  
Loans, held for sale 5,610     4,996  
Loans receivable, net of allowance for loan losses (allowance 2015: $25,871; 2014: $24,998) 2,044,570     1,973,536  
Restricted investments in bank stock 17,793     15,223  
Premises and equipment, net 73,318     75,182  
Other assets 37,156     32,771  
Total assets $ 3,001,357     $ 2,997,572  
       
Liabilities and Stockholders' Equity      
Deposits:      
Noninterest-bearing $ 569,663     $ 478,724  
Interest-bearing 1,799,025     1,901,948  
Total deposits 2,368,688     2,380,672  
Short-term borrowings 322,675     333,475  
Long-term debt 25,000      
Other liabilities 18,013     17,902  
Total liabilities 2,734,376     2,732,049  
Stockholders' Equity:      
Preferred stock - Series A noncumulative; $10.00 par value; $1,000 aggregate 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 shares 2015: 14,310,602; 2014: 14,232,844; outstanding shares 2015: 14,009,402; 2014: 14,220,544) 14,311     14,233  
Surplus 163,248     160,588  
Retained earnings 102,369     94,496  
Accumulated other comprehensive loss (5,616 )   (3,875 )
Treasury stock, at cost (common shares 2015: 301,200; 2014: 12,300) (7,731 )   (319 )
Total stockholders' equity 266,981     265,523  
Total liabilities and stockholders' equity $ 3,001,357     $ 2,997,572  

Metro Bancorp, Inc. and Subsidiaries              
Consolidated Statements of Income (Unaudited)              
               
  Three months ended   Six months ended
  June 30,   June 30,
(in thousands, except per share amounts) 2015   2014   2015   2014
Interest Income              
Loans receivable, including fees:              
Taxable $ 22,124     $ 19,938     $ 43,727     $ 39,148  
Tax-exempt 680     834     1,409     1,695  
Securities:              
Taxable 4,362     5,018     9,707     10,064  
Tax-exempt 241     191     481     381  
Total interest income 27,407     25,981     55,324     51,288  
Interest Expense              
Deposits 1,560     1,401     3,107     2,835  
Short-term borrowings 195     278     434     509  
Long-term debt 83     307     153     614  
Total interest expense 1,838     1,986     3,694     3,958  
Net interest income 25,569     23,995     51,630     47,330  
Provision for loan losses 2,600     1,100     4,100     2,000  
Net interest income after provision for loan losses 22,969     22,895     47,530     45,330  
Noninterest Income              
Card, service charges and other noninterest income 7,516     7,357     14,638     14,288  
Net gains on sales of loans 474     138     945     274  
Net gains on sales of securities 444         416     11  
Total noninterest income 8,434     7,495     15,999     14,573  
Noninterest Expenses              
Salaries and employee benefits 12,084     11,055     22,963     22,482  
Occupancy and equipment 3,370     3,098     6,595     6,603  
Advertising and marketing 398     376     762     769  
Data processing 3,692     3,320     7,230     6,570  
Regulatory assessments and related costs 556     584     1,123     1,153  
Loan expense 206     881     1,608     1,016  
Professional services 591     301     1,459     602  
Other 4,057     3,406     7,091     6,608  
Total noninterest expenses 24,954     23,021     48,831     45,803  
Income before taxes 6,449     7,369     14,698     14,100  
Provision for federal income taxes 2,272     2,288     4,799     4,075  
Net income $ 4,177     $ 5,081     $ 9,899     $ 10,025  
Net Income per Common Share              
Basic $ 0.29     $ 0.36     $ 0.70     $ 0.70  
Diluted 0.29     0.35     0.68     0.70  
Cash Dividends per Common Share 0.07         0.14      
Average Common and Common Equivalent Shares Outstanding              
Basic 14,112     14,184     14,140     14,172  
Diluted 14,373     14,387     14,412     14,366  

Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(Unaudited)
                               
                     
  Three months ended Six months ended
  June 30, 2015 March 31, 2015 June 30, 2014 June 30, 2015 June 30, 2014
  Average   Avg. Average   Avg. Average   Avg. Average   Avg. Average   Avg.
(dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets                              
Investment securities:                              
Taxable $ 738,552   $ 4,362   2.36 % $ 813,682   $ 5,345   2.63 % $ 858,174   $ 5,018   2.34 % $ 775,909   $ 9,707   2.50 % $ 867,161   $ 10,064   2.32 %
Tax-exempt 39,692   370   3.73   39,690   370   3.73   30,941   293   3.79   39,691   740   3.73   30,934   586   3.79  
Total securities 778,244   4,732   2.43   853,372   5,715   2.68   889,115   5,311   2.39   815,600   10,447   2.56   898,095   10,650   2.37  
Total loans 2,048,652   23,171   4.49   2,021,214   22,724   4.51   1,830,846   21,222   4.60   2,035,009   45,895   4.50   1,803,564   41,756   4.62  
Total interest-earning assets 2,826,896   $ 27,903   3.92 % 2,874,586   $ 28,439   3.96 % 2,719,961   $ 26,533   3.88 % 2,850,609   $ 56,342   3.94 % 2,701,659   $ 52,406   3.87 %
Allowance for loan losses (25,920 )     (25,406 )     (24,533 )     (25,665 )     (24,154 )    
Other noninterest earning assets 158,235       155,070       138,188       156,662       137,138      
Total assets $ 2,959,211       $ 3,004,250       $ 2,833,616       $ 2,981,606       $ 2,814,643      
Liabilities and Stockholders' Equity                              
Interest-bearing deposits:                              
  Regular savings $ 543,196   $ 372   0.27 % $ 533,365   $ 363   0.28 % $ 464,780   $ 319   0.28 % $ 538,308   $ 736   0.28 % $ 462,564   $ 654   0.29 %
  Interest checking and money market 1,019,471   667   0.26   1,030,095   677   0.27   950,215   642   0.27   1,024,753   1,344   0.26   967,239   1,300   0.27  
  Time deposits 132,235   365   1.11   128,671   355   1.12   124,209   318   1.03   130,463   720   1.11   125,325   647   1.04  
  Public time and other noncore deposits 178,360   156   0.35   176,377   152   0.35   152,421   122   0.32   177,374   307   0.35   151,382   234   0.31  
Total interest-bearing deposits 1,873,262   1,560   0.33   1,868,508   1,547   0.34   1,691,625   1,401   0.33   1,870,898   3,107   0.33   1,706,510   2,835   0.34  
Short-term borrowings 238,083   195   0.32   315,913   239   0.30   387,611   278   0.28   276,783   434   0.31   372,168   509   0.27  
Long-term debt 25,000   83   1.32   21,111   70   1.32   15,800   307   7.77   23,066   153   1.32   15,800   614   7.77  
Total interest-bearing liabilities 2,136,345   $ 1,838   0.34 % 2,205,532   $ 1,856   0.34 % 2,095,036   $ 1,986   0.38 % 2,170,747   $ 3,694   0.34 % 2,094,478   $ 3,958   0.38 %
Demand deposits (noninterest-bearing) 532,252       509,140       476,605       520,760       461,452      
Other liabilities 20,903       20,434       16,325       20,670       16,786      
Total liabilities 2,689,500       2,735,106       2,587,966       2,712,177       2,572,716      
Stockholders' equity 269,711       269,144       245,650       269,429       241,927      
Total liabilities and stockholders' equity $ 2,959,211       $ 3,004,250       $ 2,833,616       $ 2,981,606       $ 2,814,643      
                               
Net interest income and margin on a tax-equivalent basis   $ 26,065   3.66 %   $ 26,583   3.70 %   $ 24,547   3.59 %   $ 52,648   3.68 %   $ 48,448   3.58 %
Tax-exempt adjustment   496       522       552       1,018       1,118    
Net interest income and margin   $ 25,569   3.59 %   $ 26,061   3.63 %   $ 23,995   3.50 %   $ 51,630   3.61 %   $ 47,330   3.49 %

Securities include securities available for sale, securities held to maturity and restricted investments in bank stock. Securities available for sale are carried at amortized cost for purposes of calculating the average rate received on taxable securities. Yields on tax-exempt securities and loans are computed on a tax-equivalent basis, assuming a 35% tax rate.
Metro Bancorp, Inc. and Subsidiaries          
Summary of Allowance for Loan Losses and Other Related Data      
(Unaudited)          
           
  Three months ended Six months ended Year ended
  June 30, June 30, December 31,
(dollars in thousands) 2015 2014 2015 2014 2014
           
Balance at beginning of period $ 25,755   $ 23,934   $ 24,998   $ 23,110   $ 23,110  
Provisions charged to operating expenses 2,600   1,100   4,100   2,000   6,750  
  28,355   25,034   29,098   25,110   29,860  
Recoveries of loans previously charged-off:          
  Commercial and industrial 53   244   107   1,249   1,468  
  Commercial tax-exempt          
  Owner occupied real estate 3   43   3   286   325  
  Commercial construction and land development   111   2   211   546  
  Commercial real estate 10   101   17   174   203  
  Residential 1   20   2   20   20  
  Consumer 15   16   27   39   248  
Total recoveries 82   535   158   1,979   2,810  
Loans charged-off:          
  Commercial and industrial (1,646 ) (501 ) (1,925 ) (855 ) (1,754 )
  Commercial tax-exempt          
  Owner occupied real estate (65 ) (171 ) (118 ) (196 ) (775 )
  Commercial construction and land development   (527 )   (539 ) (1,293 )
  Commercial real estate (238 )   (695 ) (716 ) (1,105 )
  Residential (69 ) (19 ) (83 ) (302 ) (1,466 )
  Consumer (548 ) (80 ) (564 ) (210 ) (1,279 )
Total charged-off (2,566 ) (1,298 ) (3,385 ) (2,818 ) (7,672 )
Net charge-offs (2,484 ) (763 ) (3,227 ) (839 ) (4,862 )
Balance at end of period $ 25,871   $ 24,271   $ 25,871   $ 24,271   $ 24,998  
Net charge-offs (annualized) as a percentage of average loans outstanding 0.49 % 0.17 % 0.32 % 0.09 % 0.26 %
Allowance for loan losses as a percentage of period-end loans 1.25 % 1.31 % 1.25 % 1.31 % 1.25 %

Metro Bancorp, Inc. and Subsidiaries          
Summary of Nonperforming Loans and Assets        
(Unaudited)          
           
The following table presents information regarding nonperforming loans and assets as of June 30, 2015 and for the preceding four quarters (dollar amounts in thousands).
           
  June 30, March 31, December 31, September 30, June 30,
  2015 2015 2014 2014 2014
Nonperforming Assets          
Nonaccrual loans:          
Commercial and industrial $ 11,985   $ 12,375   $ 11,634   $ 7,974   $ 4,291  
Commercial tax-exempt          
Owner occupied real estate 7,720   6,210   7,416   6,954   6,401  
Commercial construction and land development 3,226   3,241   3,228   3,254   9,028  
Commercial real estate 6,384   6,362   5,824   6,407   5,793  
Residential 5,336   4,971   4,987   6,157   6,341  
Consumer 1,177   1,573   1,877   2,421   2,479  
Total nonaccrual loans 35,828   34,732   34,966   33,167   34,333  
Loans past due 90 days or more and still accruing     445   8   2,335  
Total nonperforming loans 35,828   34,732   35,411   33,175   36,668  
Foreclosed assets 5,981   7,937   7,681   7,162   4,020  
Total nonperforming assets $ 41,809   $ 42,669   $ 43,092   $ 40,337   $ 40,688  
           
Troubled Debt Restructurings (TDRs)          
Nonaccruing TDRs (included in nonaccrual loans above) $ 15,667   $ 16,272   $ 15,030   $ 12,495   $ 17,748  
Accruing TDRs 10,653   10,627   10,712   10,791   11,309  
Total TDRs $ 26,320   $ 26,899   $ 25,742   $ 23,286   $ 29,057  
           
Nonperforming loans to total loans 1.73 % 1.73 % 1.77 % 1.73 % 1.98 %
           
Nonperforming assets to total assets 1.39 % 1.43 % 1.44 % 1.36 % 1.42 %
           
Nonperforming loan coverage 72 % 74 % 71 % 74 % 66 %
           
Allowance for loan losses as a percentage of total period-end loans 1.25 % 1.29 % 1.25 % 1.28 % 1.31 %
           
Nonperforming assets / capital plus allowance for loan losses 14 % 14 % 15 % 15 % 15 %

 
Gary L. NalbandianChairman/PresidentMark A. ZodyChief Financial Officer(717) 412-6301

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