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Metro Phoenix Bank Reports Earnings of $795,000, or $0.21 per Diluted Share in 3Q2017 and Loan Growth of 6.09%

PHOENIX, Nov. 2, 2017 /PRNewswire/ -- Metro Phoenix Bank (OTCPink:MPHX)("Bank") announced net income for quarter ending September 30, 2017 increased 72% to $795,000, or $0.21 per diluted share, from $463,000, or $0.12 per diluted share in the second quarter of 2017. Net income increased 97% from $403,000 in the third quarter of 2016.

For the first nine months of 2017, net income grew 228% to $2.49 million, or $0.66 per diluted share, compared to $758,000, or $0.31 per diluted share for the same period of 2016. Excluding non-recurring income for nine months of 2017, adjusted net income grew 115% to $1.63 million, or $0.43 per diluted share, compared to the same period in 2016.

"The recent private placement of $10.0 million in common stock coupled with improving business fundamentals in the Phoenix metropolitan market have significantly enhanced the Bank's efforts in sustaining annualized double digit loan and deposit growth," stated Stephen P. Haggard, President and Chief Executive Officer. "Our third quarter results reflect solid loan growth, an uptick in non-interest income, the maintenance of a strong net interest margin and most importantly healthy credit quality. Metro Phoenix closed out the quarter without a single non-performing loan or other real estate owned (OREO) property."

Third Quarter 2017 Highlights:

  • Net Income for the quarter was $795,000, or $0.21 per diluted share.
    • ROA of 1.93% and 1.42% for the quarter and for the nine months excluding non-recurring income, respectively;
    • ROE of 11.86% and 10.30% for the quarter and for nine months excluding non-recurring income, respectively.
  • NIM of 5.35% and 5.06% for the quarter and the nine months, respectively, with the cost of funds stable at 0.35% compared to the linked quarter, and only slightly higher than the third quarter 2016 of 0.31%.
  • SBA Gains on Sale of $315M and $768M for the quarter and for the nine months, respectively.
  • Provision Expense of $35M and $170M for the quarter and for the nine months, respectively.
  • Efficiency Ratio of 49.27% and 57.01% for the quarter and for the nine months excluding non-recurring income, respectively.
  • Loan growth was 6.09% and 22.07% for the quarter and for the nine months, respectively.
  • Non-Performing Assets remained at zero for the second consecutive quarter.

Balance Sheet

Total assets grew by 1.64% to $167.5 million at September 30, 2017, and increased 18.21% compared to $141.7 million a year ago. Total loans grew by 6.09% to $135.2 million at September 30, 2017, and increased 23.92% compared to $109.1 million a year ago. Total deposits grew by 1.28% to $139.9 million at September 30, 2017, and increased 12.24% compared to $124.6 million a year ago.

The allowance for loan losses totaled $1.5 million at September 30, 2017, or 1.14% of total loans. No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders' equity increased to $27.2 million at September 30, 2017, from $26.4 million the preceding quarter. At September 30, 2017, book value and tangible book value were $8.02 per share compared to $7.80 per share at June 30, 2017.

Capital Management

The Bank's capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III and Dodd Frank Wall Street Reform requirements at September 30, 2017. The Bank reported the following capital ratios:


Bank

Regulatory


09/30/17

Well Capitalized

Tier 1 Leverage Ratio

16.18%

5.00%

Common Equity Tier 1 Capital Ratio

20.94%

6.50%

Tier 1 Risk Based Capital Ratio

20.94%

8.00%

Total Risk Based Capital Ratio

22.18%

10.00%

About the Company

Metro Phoenix Bank, Inc., headquartered in Phoenix, Arizona is a full-service community Bank that caters to small-to mid-sized businesses and real estate professionals. It offers deposit and loan products and services as well as convenient on-line banking. The Bank was established in 2007 and operates out of single corporate office. The company is traded over-the-counter as MPHX. For further information please visit the website: www.metrophoenixbank.com.

Forward-looking Statements

This press release may include forward-looking statements about Metro Phoenix Bank. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competition, fluctuations in interest rates, dependency on key individuals, loan defaults, geographical concentration, litigation and changes in federal laws, regulations and interpretations thereof. All forward-looking statements included in this press release are based on information available at the time of the release, and Metro Phoenix Bank assumes no obligation to update any forward-looking statement.


Unaudited Summary Financial Information

(dollars in thousands, except per share data or noted otherwise)














For the Three months
ended September 30,


For the Nine months
ended September 30,


Year-End



2017


2016


2017


2016


2016

Summary Income Data











Interest income


2,305


1,653


5,993


4,968


6,643

Interest expense


168


110


405


317


427

Net interest income


2,137


1,543


5,588


4,651


6,216

Provision for (reduction in) loan losses


-


105


170


470


534

Non-interest income


406


598


2,392


960


973

Non-interest expense


1,253


1,204


3,753


3,731


7,456

Realized gains (losses) on sales of securities


-


-


-


(1)


(1)

Income (loss) before income taxes


1,290


832


4,057


1,409


(802)

Provision for income tax


495


429


1,562


651


(16)

Net income


795


403


2,495


758


(786)

Per Share Data:











Shares outstanding end-of-period


3,386


2,053


3,386


2,053


2,053

Earnings per common share


0.23


0.20


0.74


0.37


(0.38)

Cash dividend declared


-


-


-


-


-

Total shareholders' equity


27,168


16,896


27,168


16,896


15,360

Book value per share


8.02


8.23


8.02


8.23


7.48

Selected Balance Sheet Data:











Total assets


167,462


141,759


167,462


141,759


141,500

Securities available-for-sale


1,081


-


1,081


-


-

Loans


135,205


109,098


135,205


109,098


110,764

Allowance for loan losses


1,539


1,309


1,539


1,309


1,359

Deposits


139,890


124,637


139,890


124,637


125,859

Other borrowings


-


-


-


-


-

Shareholders' equity


27,168


16,896


27,168


16,896


15,360

Performance Ratios:











Return on average shareholders' equity (annualized) (%)


11.76%


9.74%


15.70%


6.22%


-4.88%

Net interest margin (%)


5.35%


4.62%


5.06%


4.92%


5.00%

Average assets


164,859


141,850


154,244


136,825


138,064

Return on average assets (annualized) (%)


1.91%


1.14%


2.16%


0.74%


-0.57%

Shareholders' equity to assets (%)


16.22%


11.92%


16.22%


11.92%


10.86%

Efficiency ratio (%)


49.27%


56.24%


47.03%


66.49%


103.73%

Asset Quality Data:











Nonaccrual loans


-


1,030


-


1,030


-

Troubled debt restructurings


454


570


454


570


556

Other real estate


-


843


-


843


475

Nonperforming assets


-


1,873


-


1,873


475

Nonperforming assets to total assets (%)


-


2.20%


-


2.20%


0.34%

Nonperforming loans to total loans (%)


-


0.94%


-


0.94%


-

Reserve for loan losses to total loans (%)


1.14%


1.20%


1.14%


1.20%


1.25%

Reserve for loan losses to nonperforming loans (%)


-


127.08%


-


127.08%


-

Reserve for loan losses to nonperforming assets (%)


-


69.90%


-


69.90%


286.12%

Net charge-offs for period


(10)


152


(10)


217


223

Average loans


126,398


97,049


117,273


95,094


93,271

Ratio of charge-offs to average loans (%)


-0.01%


0.16%


-0.01%


0.23%


0.24%

Regulatory Capital Ratios:











Tier 1 leverage capital ratio (%)


16.18%


10.60%


16.18%


10.60%


9.34%

Common Equity Tier 1 (%)


20.94%


14.42%


20.94%


14.42%


12.45%

Tier 1 risk-based capital ratio (%)


20.94%


14.42%


20.94%


14.42%


12.45%

Total risk-based capital ratio (%)


22.18%


15.68%


22.18%


15.68%


13.71%

Contact:

Stephen P. Haggard


President & CEO


602-346-1800


shaggard@metrophoenixbank.com

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SOURCE Metro Phoenix Bank