Market Overview

Metro Bancorp Reports Net Income of $4.8 Million and EPS of $0.33 After Merger-Related Expenses; Balance Sheet Growth Remains Strong as Loans Grow 10% and Deposits Increase 5%

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HARRISBURG, Pa., Oct. 26, 2015 (GLOBE NEWSWIRE) -- Metro Bancorp, Inc. (Metro or the Company) (NASDAQ: METR), parent company of Metro Bank, today reported net income of $4.8 million, or $0.33 per diluted common share, for the quarter ended September 30, 2015 compared to $5.5 million, or $0.38 per diluted common share, for the third quarter of 2014.  Results for the third quarter of 2015 were impacted by $1.7 million, pre-tax, of merger-related expenses associated with Metro's announcement on August 4, 2015 that it has agreed to be acquired by F.N.B. Corporation.  The Company also reported net loan growth of $181.9 million, or 10%, over the past twelve months and total deposit growth of $113.6 million, or 5%, for the same period. On October 23, 2015, Metro's board of directors declared a fourth quarter cash dividend of $0.07 per common share, payable November 23, 2015 to shareholders of record on November 4, 2015.

Financial Highlights
(in millions, except per share data)
           
 Quarter Ended  Nine Months Ended
     %    %
 09/30/15 09/30/14 Change  09/30/1509/30/14Change
Total assets$2,966.2  $2,959.8  %     
           
Total loans (net)2,071.0  1,889.1  10%     
           
Total deposits2,445.5  2,331.8  5%     
           
           
Total revenues$33.4  $32.5  3%  $101.0 $94.4 7%
           
Net income4.8  5.5  (12)%  14.7 15.5 (5)%
           
Adjusted net income*6.3  5.5  15%  17.9 15.5 16%
           
           
Diluted net income per common share$0.33  $0.38  (13)%  $1.02 $1.07 (5)%
           
Adjusted diluted net income per common share*0.44  0.38  16%  1.25 1.07 17%

* 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 are pleased with the solid loan growth of 10% and deposit growth of 5% as we manage our balance sheet ahead of the planned merger with and into F.N.B. Corporation (FNB), which we announced on August 4, 2015," said Gary L. Nalbandian, the Company's Chairman and Chief Executive Officer. "Our revenues continue to grow and we are pleased with our normalized earnings performance, after considering the impact of $1.7 million of merger-related expenses for the quarter.  Pending regulatory and shareholder approval, we expect to finalize the merger transaction in the first quarter of 2016."

"As part of our commitment to enhancing shareholder returns, I am pleased to announce that on October 23, 2015, Metro's Board of Directors declared a fourth quarter cash dividend of $0.07 per common share, payable on November 23, 2015 to shareholders of record on November 4, 2015."

Income Statement Highlights

  • The Company recorded net income of $4.8 million, or $0.33 per diluted common share, for the third quarter of 2015 compared to net income of $5.5 million, or $0.38 per diluted common share for the same period one year ago; a $686,000, or 12%, decrease. Exclusive of net gains on sales/calls of securities and merger-related expenses, adjusted net income was $6.3 million*, or $0.44 per diluted common share*, for the third quarter of 2015 compared to $5.5 million, or $0.38 per diluted common share, for the same period one year ago. Net income for the first nine months of 2015 totaled $14.7 million, or $1.02 per diluted common share; down $812,000, or 5%, from $15.5 million, or $1.07 per diluted common share, recorded for the first nine months of 2014. Exclusive of net gains on sales/calls of securities and certain nonrecurring expenses in 2015, adjusted net income for the first nine months of 2015 totaled $17.9 million*, or $1.25 per diluted common share*, compared to $15.5 million, or $1.07 per diluted common share, recorded for the first nine months of 2014.
     
  • Total revenues (net interest income plus noninterest income) for the third quarter of 2015 were $33.4 million, up $916,000, or 3%, over total revenues of $32.5 million for the same quarter one year ago. Total revenues for the first nine months of 2015 increased $6.6 million, or 7%, over the first nine months of 2014.
     
  • Return on average stockholders' equity (ROE) was 7.03% for the third quarter of 2015 compared to 8.67% for the same period last year and to 6.21% the previous quarter. Exclusive of net gains on sales/calls of securities and merger-related expenses in the third quarter of 2015, adjusted ROE was 9.23%* for the quarter compared to 8.64% for the same period last year. ROE for the first nine months of 2015 was 7.28%, compared to 8.47% for the first nine months of 2014.  Exclusive of net gains on sales/calls of securities and certain nonrecurring expenses in 2015, adjusted ROE for the first nine months of 2015 was 8.88%* compared to 8.45% for the first nine months of 2014.
     
  • The Company's net interest margin on a fully-taxable basis for the third quarter of 2015, was 3.64%, compared to 3.66% recorded in the previous quarter of 2015 and 3.57% for the third quarter of 2014. The Company's deposit cost of funds for the third quarter was 0.27%, compared to 0.26% for the previous quarter and to 0.27% for the third quarter one year ago.
     
  • The provision for loan losses totaled $2.3 million for the third quarter of 2015, compared to $2.6 million for the previous quarter and compared to $2.1 million for the third quarter one year ago.  The provision for the first nine months of 2015 was $6.4 million, up $2.3 million, or 55%, over the first nine months of 2014.
     
  • Noninterest expenses for the third quarter of 2015 were $23.6 million, down $1.4 million, or 6%, from the previous quarter but up $1.2 million, or 5%, over the same quarter last year. Total noninterest expenses for the first nine months of 2015 were $72.4 million, up $4.2 million, or 6%, compared to the first nine months of 2014.

* 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 efficiency ratio for the third quarter of 2015 was 70.6% compared to 73.4% for the previous quarter and 68.9% for the third quarter of 2014.  Excluding net gains on sales/calls of securities and merger-related expenses, the Company's adjusted efficiency ratio was 65.6%* for the third quarter of 2015 compared to 68.9% for the same period last year.  The recorded efficiency ratio for the first nine months of 2015 and 2014 was 71.7% and 72.2%, respectively.  Excluding net securities gains and certain nonrecurring expenses, the adjusted efficiency ratio for the first nine months of 2015 was 67.6%* compared to 72.3% for the same period in 2014.

Balance Sheet Highlights

  • Loan growth continues to be strong as net loans increased to $2.07 billion, up $181.9 million, or 10%, over the third quarter 2014.
     
  • Nonperforming assets were 1.42% of total assets at September 30, 2015, compared to 1.39% of total assets for the previous quarter and compared to 1.36% of total assets one year ago.
     
  • Total deposits at September 30, 2015 were $2.45 billion, up $113.6 million, or 5%, compared to same time last year.  Total core deposits grew $118.9 million, or 6%, over the past twelve months and totaled $2.28 billion at September 30, 2015.
     
  • Metro's capital levels remain strong with a Tier 1 Leverage ratio of 9.34%, a common equity tier 1 ratio of 12.01% and a total risk-based capital ratio of 13.25%.
     
  • Stockholders' equity totaled $277.6 million, or 9%, of total assets, at the end of the third quarter 2015, up $24.2 million, or 10%, over the past twelve months.  At September 30, 2015, the Company's book value per common share was $19.57, up from $18.98 per common share at June 30, 2015 and up $1.81, or 10%, per common share over September 30, 2014.  The market price of Metro's common stock increased by 21%, over the past twelve months from $24.25 per common share at September 30, 2014 to $29.39 per common share at September 30, 2015.

Income Statement Overview

 Three months ended
September 30,
 Nine months ended
September 30,
(dollars in thousands, except per share data)2015 2014% Change 2015 2014% Change
Total revenues$33,400  $32,484 3% $101,029  $94,387 7%
Provision for loan losses2,250  2,100 7  6,350  4,100 55 
Total noninterest expenses23,576  22,376 5  72,407  68,179 6 
Net income4,815  5,501 (12) 14,714  15,526 (5)
Adjusted net income*6,326  5,484 15  17,949  15,502 16 
Diluted net income per common share$0.33  $0.38 (13)% $1.02  $1.07 (5)%
Adjusted diluted net income per common share*0.44  0.38 16  1.25  1.07 17 
Cash dividends per common share0.07     0.21    
Efficiency ratio70.6% 68.9%  71.7% 72.2% 

Metro recorded net income of $4.8 million, or $0.33 per diluted common share, for the third quarter of 2015 compared to net income of $5.5 million, or $0.38 per diluted common share, for the third quarter of 2014.  Exclusive of net gains on sales/calls of securities and merger-related fees, adjusted net income was $6.3 million*, or $0.44 per diluted common share*, for the third quarter of 2015 compared to $5.5 million, or $0.38 per diluted common share, 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.

Net income for the first nine months of 2015 was $14.7 million compared to $15.5 million recorded in the first nine months of 2014, down 5%.  Earnings per diluted common share for the first nine months of 2015 were $1.02 compared to $1.07 for the same period last year, a 5% decrease. Exclusive of net gains on sales/calls of securities and certain nonrecurring expenses in 2015, adjusted net income for the first nine months of 2015 totaled $17.9 million*, or $1.25 per diluted common share*, compared to $15.5 million, or $1.07 per diluted common share, recorded for the first nine months of 2014.

Total revenues (net interest income plus noninterest income) for the third quarter of 2015 were $33.4 million, up $916,000, or 3%, over the third quarter of 2014.  Total revenues for the first nine months of 2015 were $101.0 million, up $6.6 million, or 7%, over the first nine months of 2014.

Noninterest expenses for the quarter totaled $23.6 million, up $1.2 million, or  5%, compared to the same period in 2014. On a linked quarter basis, total noninterest expenses were down $1.4 million, or 6%, from the second quarter of 2015.  Total noninterest expenses for the first nine months of 2015 were $72.4 million, up $4.2 million, or 6%, over the same period last year.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2015 totaled $25.9 million, up $1.1 million, or 4%, over the third quarter of 2014.  For the first nine months of 2015, net interest income totaled $77.6 million versus $72.2 million for the same period in 2014, a $5.4 million, or 7%, increase.

Average interest-earning assets for the third quarter of 2015 totaled $2.85 billion versus $2.83 billion for the previous quarter and were up $42.9 million, or 2%, over the third quarter of 2014. Average loans receivable increased by $200.2 million, or 11%, and average investment securities balances decreased by $157.3 million, or 17%, from the third quarter of last year.  Average interest-bearing deposits totaled $1.84 billion for the third quarter of 2015, up $111.5 million, or 6%, over the same period of 2014 and average noninterest-bearing deposits for the third quarter 2015 were $528.6 million, up $43.1 million, or 9%, over the third quarter last year.  Average interest-earning assets for the first nine months of 2015 totaled $2.85 billion versus $2.74 billion for the first nine months of 2014, an increase of $113.2 million, or 4%.

The net interest margin for the third quarter of 2015 was 3.58%, down 1 basis point (bp) from the 3.59% recorded for the previous quarter but up 9 bps over the 3.49% recorded in the third quarter one year ago. The net interest margin on a fully-taxable basis for the third quarter of 2015 was 3.64%, down 2 bps from the previous quarter but up 7 bps compared to the third quarter of 2014.

The net interest margin for the first nine months of 2015 was 3.60%, up 11 bps over the 3.49% recorded for the first nine months of 2014. On a fully-taxable basis, the net interest margin for the first nine months of 2015 was 3.67%, up 10 bps compared to 3.57% for the first nine months of 2014.

Metro's deposit cost of funds for the third quarter of 2015 was 0.27%, compared to 0.26% for the previous quarter, and 0.27% for the third quarter one year ago. Metro's deposit cost of funds for the first nine months of 2015 was 0.26% compared to 0.26% for the same period in 2014. The total cost of all funding sources for the third quarter of 2015 was 0.29%, compared to 0.28% the previous quarter and 0.32% for the same period in 2014.

* 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.

Change in Net Interest Income and Rate/Volume Analysis

The increase in net interest income on a fully tax-equivalent basis for the third quarter and for the first nine 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 Volume
Change
Rate
Change
Total
Increase
%
Increase
 
3rd Quarter $1,635 $(664)$971  4% 
Nine Months $6,054 $(882)$5,172  7% 

Noninterest Income

Noninterest income for the third quarter of 2015 totaled $7.5 million, down $154,000, or 2%, from the third quarter one year ago. Gains on the sale of loans totaled $99,000 for the third quarter of 2015 versus $254,000 for the same period in 2014.

Noninterest income for the first nine months of 2015 increased $1.3 million, or 6%, over the first nine months of 2014.  Card, service charges and other noninterest income were $22.0 million, an increase of $365,000, or 2%, compared to the same period in 2014, while gains on sales of loans were $1.0 million for the first nine months of 2015 versus $528,000 for the first nine months of 2014, up 98%. Net gains on sales/calls of securities for the first nine months of 2015 were $428,000 compared to $37,000 for the first nine months of 2014. 

The breakdown of noninterest income for the third quarter and for the first nine months of 2015 and 2014, respectively, is shown in the table below:

 Three months ended
September 30,
 Nine months ended
September 30,
(dollars in thousands)20152014% Increase
(Decrease)
 20152014% Increase
Card, service charges and other noninterest income$7,364 $7,349 % $22,002 $21,637 2%
Gains on sales of loans99 254 (61) 1,044 528 98 
Net gains on sales/calls of securities12 26 (54) 428 37 1,057 
Total noninterest income$7,475 $7,629 (2)% $23,474 $22,202 6%

Noninterest Expenses

Noninterest expenses for the third quarter of 2015 were $23.6 million, down $1.4 million, or 6%, on a linked quarter basis, but up $1.2 million, or 5%, compared to the third quarter one year ago. Total noninterest expenses for the third quarter of 2015 included $1.7 million of merger-related costs which were primarily associated with investment banking, legal and consulting services utilized by Metro.  Excluding the merger-related costs, total noninterest expenses for the third quarter of 2015 were $21.9 million*, down $491,000, or 2%, compared to the same period in 2014. For the first nine months of 2015, noninterest expense totaled $72.4 million, up $4.2 million, or 6%, over $68.2 million recorded for the same period of 2014. Excluding the nonrecurring costs, total noninterest expenses for the first nine months of 2015 were $68.0 million*, down $141,000, compared to the same period in 2014.

* 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 breakdown of noninterest expenses for the third quarter and for the first nine months of 2015 and 2014, respectively, are shown in the table below:

 Three months ended
September 30,
 Nine months ended
September 30,
(dollars in thousands)20152014% Change 20152014% Change
Salaries and employee benefits$10,481 $11,204 (6)% $33,444 $33,686 (1)%
Occupancy and equipment2,785 3,041 (8) 9,380 9,644 (3)
Advertising and marketing432 519 (17) 1,194 1,288 (7)
Data processing3,658 3,223 13  10,888 9,793 11 
Regulatory assessments and related costs535 544 (2) 1,658 1,697 (2)
Loan expense473 153 209  2,081 1,169 78 
Merger-related fees1,691    1,691   
Professional services300 371 (19) 1,759 973 81 
Other expenses3,221 3,321 (3) 10,312 9,929 4 
Total noninterest expenses$23,576 $22,376 5% $72,407 $68,179 6%

Balance Sheet

 As of September 30, 
(dollars in thousands)20152014%
 Increase
Total assets$2,966,160 $2,959,847 %
Total loans (net)2,070,962 1,889,080 10 
Total deposits2,445,487 2,331,849 5 
Total core deposits2,279,211 2,160,287 6 
Total stockholders' equity277,598 253,362 10 

Lending

Gross loans receivable totaled $2.1 billion at September 30, 2015, an increase of $184.1 million, or 10%, over September 30, 2014.  The composition of the Company's loan portfolio at September 30, 2015 and September 30, 2014 was as follows:

(dollars in thousands)September 30,
2015
% of
Total
 September 30,
2014
% of
Total
 $
 Change
%
Change
 
Commercial and industrial$607,084 29% $478,605 25% $128,479 27% 
Commercial tax-exempt58,999 3  75,986 4  (16,987)(22) 
Owner occupied real estate315,555 15  312,032 16  3,523 1  
Commercial construction and land development140,135 7  122,314 6  17,821 15  
Commercial real estate639,135 30  594,004 31  45,131 8  
Residential119,083 6  107,707 6  11,376 11  
Consumer217,713 10  222,972 12  (5,259)(2) 
Gross loans receivable$2,097,704 100% $1,913,620 100% $184,084 10% 

The Company experienced loan growth in every major category over the past twelve months except for consumer loans and commercial tax-exempt loans which represent the smallest segment of Metro's loan portfolio.

Asset Quality

The Company's asset quality ratios are shown below:

 Quarter ended
 September 30,
2015
 June 30,
2015
 September 30,
2014
 
Nonperforming assets/total assets1.42% 1.39% 1.36% 
Net loan charge-offs (annualized)/average total loans0.26% 0.49% 0.39% 
Allowance for loan losses/total loans1.27% 1.25% 1.28% 
Nonperforming loan coverage74% 72% 74% 
Nonperforming assets/capital and allowance for loan losses14% 14% 15% 

Nonperforming loans totaled $36.2 million at September 30, 2015, an increase of $384,000 from June 30, 2015, while foreclosed asset balances decreased by $83,000 to $5.9 million during the same period.  Compared to September 30, 2014, nonperforming loans at September 20, 2015 increased $3.0 million, or 9%, and foreclosed assets decreased $1.3 million, or 18%.

Total nonperforming assets increased during the third quarter of 2015 by $301,000, or 1%, to $42.1 million, or 1.42%, of total assets at September 30, 2015, compared to $41.8 million, or 1.39%, of total assets at June 30, 2015. Nonperforming assets were up $1.8 million, or 4%, over the past year,  compared to $40.3 million, or 1.36% of total assets at September 30, 2014.

At September 30, 2015, foreclosed assets totaling $1.9 million were under contract to be sold with no additional net loss to the Company expected.

Net loan charge-offs totaled $1.4 million, or 0.26%, of average loans outstanding for the third quarter of 2015, and were comprised of $1.5 million in gross loan charge-offs offset partially by $99,000 in recoveries. Net loan charge-offs for the third quarter of 2014 totaled $1.8 million, or 0.39%, of average loans outstanding. Total net loan charge-offs for the first nine months of 2015 were $4.6 million, or 0.30%, of average loans outstanding compared to $2.7 million, or 0.20%, for the first nine months of 2014.

The Company recorded a provision for loan losses of $2.3 million for the third quarter of 2015 as compared to $2.6 million for the previous quarter and $2.1 million recorded in the third quarter of 2014. The allowance for loan losses (allowance or ALL) totaled $26.7 million as of September 30, 2015, compared to $25.9 million at June 30, 2015 and $24.5 million at September 30, 2014. The allowance represented 1.27% of gross loans outstanding at September 30, 2015, compared to 1.25% at June 30, 2015 and 1.28% at September 30, 2014.

Deposits

The Company's deposit balances at September 30, 2015 were $2.45 billion, compared to total deposits of $2.33 billion one year ago.   

The change in core deposits over the past twelve months by type of account is as follows:

 As of September 30,    
(dollars in thousands)2015 2014 %
Change
 3rd Quarter 2015
Cost of Funds
Demand noninterest-bearing$541,060  $494,082  10% 0.00%
Interest checking and money market1,091,262  1,074,399  2  0.27 
Savings512,001  459,526  11  0.27 
Subtotal2,144,323  2,028,007  6  0.20 
Time134,888  132,280  2  1.16 
Total core deposits$2,279,211  $2,160,287  6% 0.26%

Total core deposits, excluding time deposits, increased $116.3 million, or 6%, over the past twelve months. The cost of core deposits, excluding time deposits, during the third quarter of 2015 was 0.20% unchanged from both the previous quarter and the third quarter of 2014.  The cost of total core deposits for the third quarter of 2015 was 0.26%, up 1 bp from the previous quarter and the same as the third quarter of 2014.

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

 September 30,% of September 30,% of % 
(dollars in thousands)2015Total 2014Total Change 
Consumer$1,037,014 45% $985,608 46% 5% 
Commercial789,112 35  722,504 33  9  
Government453,085 20  452,175 21    
Total$2,279,211 100% $2,160,287 100% 6% 

Total consumer core deposits increased by $51.4 million, or 5%, and total commercial core deposits grew by $66.6 million, or 9%, over the past twelve months.

Investments

At September 30, 2015, the Company's investment portfolio totaled $727.0 million, down $38.2 million, or 5%, on a linked quarter basis and down $160.5 million, or 18%, compared to September 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 September 30, 2015:

Product descriptionAvailable
for sale
 Held to
maturity
 Total 
(dollars in thousands)      
U.S. Government agency securities$33,694  $139,139  $172,833  
Mortgage-backed securities:      
Residential mortgage-backed securities55,123  11,674  66,797  
Agency collateralized mortgage obligations282,661  164,865  447,526  
Municipal securities30,132  9,700  39,832  
Total$401,610  $325,378  $726,988  
Duration (in years)4.6  4.3  4.5  
Average life (in years)5.1  5.0  5.1  
Quarterly average yield (annualized)2.27% 2.50% 2.37% 

At September 30, 2015, the after-tax unrealized loss on the Company's available for sale portfolio was $1.6 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 $10.1 million at September 30, 2014.

Capital

Stockholders' equity at September 30, 2015 totaled $277.6 million, compared to $253.4 million at September 30, 2014. Return on average stockholders' equity (ROE) for the third quarter of 2015 was 7.03%, compared to 6.21% for the previous quarter and 8.67% for the third quarter last year. Exclusive of net gains on sales/calls of securities and merger-related fees, adjusted ROE was 9.23%* for the third quarter of 2015 compared to 8.64% for the same period last year.  ROE for the first nine months of 2015 was 7.28%, compared to 8.47% for the first half of 2014. Exclusive of net gains on sales/calls of securities and certain nonrecurring expenses during 2015, adjusted ROE for the first nine months of 2015 was 8.88%* compared to 8.45% for the first nine months of 2014.

The Company's capital ratios at September 30, 2015 and 2014 were as follows:

 9/30/20159/30/2014Regulatory
guidelines "well
capitalized"
Leverage ratio9.34%8.96%5.00%
CET112.01 n/a6.50 
Tier 1 (risk-based)12.06 12.42 8.00 
Total capital (risk-based)13.25 13.58 10.00 

Both the Company and its subsidiary bank continue to maintain strong capital ratios and are well capitalized under various regulatory capital guidelines as required by federal banking agencies.

At September 30, 2015, the Company's book value per common share was $19.57, compared to $17.76 one year ago, up 10%.

The market price of the Company's common stock increased by 21% from $24.25 per common share at September 30, 2014 to $29.39 per common share at September 30, 2015.

* 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.

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 inability to complete the proposed merger with FNB, including obtaining regulatory approvals, in a timely manner or at all;
     
  • the possibility that any of the anticipated benefits of the proposed merger will not be realized;
     
  • the effect of the announcement of the merger on Metro's, FNB's or the combined company's respective business relationships, operating results and business generally;
     
  • diversion of management's attention from ongoing business operations and opportunities;
     
  • difficulties and delays in integrating Metro's businesses with those of FNB;
     
  • 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.

Additional Information and Where to Find It

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  This communication may be deemed to be solicitation material in respect of the proposed merger between FNB and Metro.  In connection with the proposed merger, FNB has filed a registration statement on Form S-4 with the SEC, containing a preliminary joint proxy statement of Metro and FNB and a preliminary prospectus of FNB.  The final joint proxy statement/prospectus will be delivered to Metro's and FNB's shareholders. This communication is not a substitute for the registration statement, definitive joint proxy statement/prospectus or any other documents that FNB or Metro may file with the SEC or send to shareholders in connection with the proposed merger.  SHAREHOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.

Shareholders will be able to obtain copies of the joint proxy statement/prospectus and other documents filed with the SEC (when available) free of charge at the SEC's website, http://www.sec.gov.  In addition, investors and security holders may obtain free copies of the documents FNB has filed with the SEC by contacting James Orie, Chief Legal Officer,  F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317; and free copies of the documents Metro has filed with the SEC by contacting Investor Relations (Sherry Richart), Metro Bancorp, Inc., 3801 Paxton Street, Harrisburg, PA 17111, telephone: (717) 412-6301.

Participants in Solicitation

FNB, Metro and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. Information about the directors and executive officers of FNB is set forth in the proxy statement for FNB's 2015 Annual Meeting of Shareholders, which was filed with the SEC on April 1, 2015, and FNB's Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 27, 2015.  Information about the directors and executive officers of Metro is set forth in the proxy statement for Metro's 2015 Annual Meeting of Shareholders, which was filed with the SEC on May 22, 2015, and Metro's Annual Reports on Form 10-K and Form 10-K/A for the year ended December 31, 2014, filed on March 16, 2015 and April 30, 2015, respectively.  Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials filed with the SEC.  You may obtain free copies of these documents as described above.

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 nine months ended September 30, 2015, which the Company believes do not reflect the operating performance of the Company during those periods. These nonrecurring charges include (1) merger-related fees during the third quarter of 2015 (which will continue to be incurred through the first quarter of 2016, when the merger is planned to occur), (2) stock-based compensation expense related to the immediate vesting of all outstanding employee stock options during the second quarter of 2015, (3) 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 (4) accelerated depreciation expense recognized during the first half of 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 the nature of each nonrecurring charge is such that it is not reasonably likely to recur within two years. Additionally, these reconciliations exclude net gains from the sales/calls 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
September 30,
 Nine months ended
September 30,
(in thousands, except per share amounts)20152014 20152014
Adjusted net income reconciliation:     
Net income$4,815 $5,501  $14,714 $15,526 
Nonrecurring charges, net of tax:     
Merger-related fees(1)1,519   1,519  
Accelerated vesting of employee stock options(1)   1,179  
Accelerated depreciation expense for two store closures(1)   491  
Pre-construction costs of cancelled planned store(1)   324  
Total nonrecurring charges, net of tax1,519   3,513  
Net gains on sales/calls of securities, net of tax(1)(8)(17) (278)(24)
Adjusted net income(2)$6,326 $5,484  $17,949 $15,502 
      
Adjusted diluted net income per common share reconciliation:     
Diluted net income per common share$0.33 $0.38  $1.02 $1.07 
Nonrecurring charges, net of tax:     
Merger-related fees(1)0.11   0.11  
Accelerated vesting of employee stock options(1)   0.09  
Accelerated depreciation expense for two store closures(1)   0.03  
Pre-construction costs of cancelled planned store(1)   0.02  
Total nonrecurring charges, net of tax0.11   0.25  
Net gains on sales/calls of securities, net of tax(1)   (0.02) 
Adjusted diluted net income per common share(2)$0.44 $0.38  $1.25 $1.07 
      
Adjusted operating efficiency ratio reconciliation:     
Total revenues$33,400 $32,484  $101,029 $94,387 
Net gains on sales/calls of securities, pretax(12)(26) (428)(37)
Adjusted total revenues(2)$33,388 $32,458  $100,601 $94,350 
Total noninterest expenses$23,576 $22,376  $72,407 $68,179 
Nonrecurring charges, pretax:     
Merger-related fees(1,691)  (1,691) 
Accelerated vesting of employee stock options   (1,424) 
Accelerated depreciation expense for two store closures   (755) 
Pre-construction costs of cancelled planned store   (499) 
Total nonrecurring charges, pretax(1,691)  (4,369) 
Adjusted total noninterest expenses(2)$21,885 $22,376  $68,038 $68,179 
Adjusted operating efficiency ratio(2)65.55%68.94% 67.63%72.26%
      
Adjusted return on average assets reconciliation:     
Adjusted net income(2)$6,326 $5,484  $17,949 $15,502 
Average assets2,982,005 2,927,935  2,981,740 2,852,823 
Adjusted return on average assets(2)0.84%0.74% 0.80%0.73%
      
Adjusted return on average stockholders' equity reconciliation:     
Adjusted net income(2)$6,326 $5,484  $17,949 $15,502 
Average stockholders' equity271,866 251,682  270,250 245,214 
Adjusted return on average stockholders' equity(2)9.23%8.64% 8.88%8.45%

(1) Assumes a 35% tax rate. Merger-related fees resulted in a pretax expense of $1.7 million during the third quarter of 2015, of which $1.2 million is not deductible for federal tax purposes. The accelerated vesting of employee stock options resulted in a pretax expense of $1.4 million during the second quarter of 2015, $724,000 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 Nine months ended
 September 30,June
30,
 %September
30,
% September 30,September 30,%
(dollars in thousands, except per share amounts)20152015 Change2014Change 20152014Change
Income Statement Data:          
Net interest income$25,925 $25,569  1%$24,855 4% $77,555 $72,185 7%
Provision for loan losses2,250 2,600  (13)2,100 7  6,350 4,100 55 
Noninterest income7,475 8,434  (11)7,629 (2) 23,474 22,202 6 
Total revenues33,400 34,003  (2)32,484 3  101,029 94,387 7 
Noninterest expenses23,576 24,954  (6)22,376 5  72,407 68,179 6 
Net income4,815 4,177  15 5,501 (12) 14,714 15,526 (5)
Per Common Share Data:          
Net  income per common share:          
Basic$0.34 $0.29  17%$0.39 (13)% $1.04 $1.09 (5)%
Diluted0.33 0.29  14 0.38 (13) 1.02 1.07 (5)
Cash dividends per common share0.07 0.07      0.21   
Book value19.57 18.98  3 17.76 10     
Weighted-average common shares outstanding (in thousands):          
Basic14,067 14,112   14,201   14,116 14,182  
Diluted14,350 14,373   14,442   14,381 14,391  
Balance Sheet Data:          
Total assets$2,966,160 $3,001,357  (1)%$2,959,847 %    
Loans receivable (net)2,070,962 2,044,570  1 1,889,080 10     
Allowance for loan losses26,742 25,871  3 24,540 9     
Investment securities726,988 765,232  (5)887,515 (18)    
Total deposits2,445,487 2,368,688  3 2,331,849 5     
Core deposits2,279,211 2,188,381  4 2,160,287 6     
Stockholders' equity277,598 266,981  4 253,362 10     
Capital:          
Total stockholders' equity to assets9.36%8.90%  8.56%     
Leverage ratio9.34 9.20   8.96      
Risk-based capital ratios:          
CET112.01 11.82   n/a     
Tier 112.06 11.86   12.42      
Total Capital13.25 13.02   13.58      
Performance Ratios:          
Deposit cost of funds0.27%0.26%  0.27%  0.26%0.26% 
Cost of funds0.29 0.28   0.32   0.28 0.31  
Net interest margin3.58 3.59   3.49   3.60 3.49  
Return on average assets0.64 0.57   0.75   0.66 0.73  
Return on average stockholders' equity7.03 6.21   8.67   7.28 8.47  
Asset Quality:          
Net charge-offs (annualized) to average loans outstanding0.26%0.49%  0.39%  0.30%0.20% 
Nonperforming assets to total period-end assets1.42 1.39   1.36      
Allowance for loan losses to total period-end loans1.27 1.25   1.28      
Allowance for loan losses to period-end nonperforming loans74 72   74      
Nonperforming assets to capital and allowance for loan losses14 14   15      


Metro Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
    
 September 30, December 31,
 2015 2014
(in thousands, except share and per share amounts)(Unaudited)  
    
Assets   
Cash and cash equivalents$47,995  $42,832 
Securities, available for sale at fair value401,610  528,038 
Securities, held to maturity at cost (fair value 2015: $326,410;  2014: $319,923)325,378  324,994 
Loans, held for sale5,380  4,996 
Loans receivable, net of allowance for loan losses (allowance 2015: $26,742; 2014: $24,998)2,070,962  1,973,536 
Restricted investments in bank stock11,775  15,223 
Premises and equipment, net72,640  75,182 
Other assets30,420  32,771 
Total assets$2,966,160  $2,997,572 
    
Liabilities and Stockholders' Equity   
Deposits:   
Noninterest-bearing$541,060  $478,724 
Interest-bearing1,904,427  1,901,948 
Total deposits2,445,487  2,380,672 
Short-term borrowings200,295  333,475 
Long-term debt25,000   
Other liabilities17,780  17,902 
Total liabilities2,688,562  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: 14,434,329; 2014: 14,232,844; outstanding shares 2015: 14,133,129; 2014: 14,220,544)14,434  14,233 
Surplus165,886  160,588 
Retained earnings106,180  94,496 
Accumulated other comprehensive loss(1,571) (3,875)
Treasury stock, at cost (common shares 2015: 301,200; 2014: 12,300)(7,731) (319)
Total stockholders' equity277,598  265,523 
Total liabilities and stockholders' equity$2,966,160  $2,997,572 


Metro Bancorp, Inc. and Subsidiaries       
Consolidated Statements of Income (Unaudited)       
        
 Three months ended Nine months ended
 September 30, September 30,
(in thousands, except per share amounts)2015 2014 2015 2014
Interest Income       
Loans receivable, including fees:       
Taxable$22,767  $20,761  $66,494  $59,909 
Tax-exempt627  824  2,036  2,519 
Securities:       
Taxable4,238  5,187  13,945  15,251 
Tax-exempt240  229  721  610 
Total interest income27,872  27,001  83,196  78,289 
Interest Expense       
Deposits1,603  1,490  4,710  4,325 
Short-term borrowings259  331  693  840 
Long-term debt85  325  238  939 
Total interest expense1,947  2,146  5,641  6,104 
Net interest income25,925  24,855  77,555  72,185 
Provision for loan losses2,250  2,100  6,350  4,100 
Net interest income after provision for loan losses23,675  22,755  71,205  68,085 
Noninterest Income       
Card, service charges and other noninterest income7,364  7,349  22,002  21,637 
Net gains on sales of loans99  254  1,044  528 
Net gains on sales/call of securities12  26  428  37 
Total noninterest income7,475  7,629  23,474  22,202 
Noninterest Expenses       
Salaries and employee benefits10,481  11,204  33,444  33,686 
Occupancy and equipment2,785  3,041  9,380  9,644 
Advertising and marketing432  519  1,194  1,288 
Data processing3,658  3,223  10,888  9,793 
Regulatory assessments and related costs535  544  1,658  1,697 
Loan expense473  153  2,081  1,169 
Merger-related fees1,691    1,691   
Professional services300  371  1,759  973 
Other3,221  3,321  10,312  9,929 
Total noninterest expenses23,576  22,376  72,407  68,179 
Income before taxes7,574  8,008  22,272  22,108 
Provision for federal income taxes2,759  2,507  7,558  6,582 
Net income$4,815  $5,501  $14,714  $15,526 
Net Income per Common Share       
Basic$0.34  $0.39  $1.04  $1.09 
Diluted0.33  0.38  1.02  1.07 
Cash Dividends per Common Share0.07    0.21   
Average Common and Common Equivalent Shares Outstanding       
Basic14,067  14,201  14,116  14,182 
Diluted14,350  14,442  14,381  14,391 


Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(Unaudited)
                
           
 Three months endedNine months ended
 September 30, 2015June 30, 2015September 30, 2014September 30, 2015September 30, 2014
 Average Avg.Average Avg.Average Avg.Average Avg.Average Avg.
(dollars in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets               
Investment securities:               
Taxable$726,097 $4,238 2.33%$738,552 $4,362 2.36%$885,232 $5,187 2.34%$759,123 $13,945 2.45%$873,251 $15,251 2.33%
Tax-exempt39,694 370 3.73 39,692 370 3.73 37,869 353 3.73 39,692 1,110 3.73 33,271 939 3.76 
Total securities765,791 4,608 2.41 778,244 4,732 2.43 923,101 5,540 2.40 798,815 15,055 2.51 906,522 16,190 2.38 
Total loans2,085,290 23,731 4.47 2,048,652 23,171 4.49 1,885,057 22,027 4.59 2,051,953 69,626 4.49 1,831,028 63,782 4.61 
Total interest-earning assets2,851,081 $28,339 3.91%2,826,896 $27,903 3.92%2,808,158 $27,567 3.87%2,850,768 $84,681 3.93%2,737,550 $79,972 3.87%
Allowance for loan losses(25,986)  (25,920)  (24,071)  (25,773)  (24,126)  
Other noninterest earning assets156,910   158,235   143,848   156,745   139,399   
Total assets$2,982,005   $2,959,211   $2,927,935   $2,981,740   $2,852,823   
Liabilities and Stockholders' Equity               
Interest-bearing deposits:               
  Regular savings$521,504 $360 0.27%$543,196 $372 0.27%$461,451 $323 0.28%$532,645 $1,095 0.27%$462,189 $978 0.28%
  Interest checking and money market1,014,035 677 0.27 1,019,471 667 0.26 977,220 662 0.27 1,021,142 2,021 0.26 970,602 1,960 0.27 
  Time deposits133,210 391 1.16 132,235 365 1.11 129,524 363 1.11 131,388 1,111 1.13 126,740 1,011 1.07 
  Public time and other noncore deposits172,781 175 0.40 178,360 156 0.35 161,861 142 0.35 175,826 483 0.37 154,914 376 0.32 
Total interest-bearing deposits1,841,530 1,603 0.35 1,873,262 1,560 0.33 1,730,056 1,490 0.34 1,861,001 4,710 0.34 1,714,445 4,325 0.34 
Short-term borrowings295,301 259 0.34 238,083 195 0.32 428,440 331 0.30 283,023 693 0.32 391,132 840 0.28 
Long-term debt25,000 85 1.32 25,000 83 1.32 14,941 325 8.71 23,718 238 1.32 15,511 939 8.07 
Total interest-bearing liabilities2,161,831 $1,947 0.36%2,136,345 $1,838 0.34%2,173,437 $2,146 0.39%2,167,742 $5,641 0.35%2,121,088 $6,104 0.38%
Demand deposits (noninterest-bearing)528,630   532,252   485,564   523,412   469,578   
Other liabilities19,678   20,903   17,252   20,336   16,943   
Total liabilities2,710,139   2,689,500   2,676,253   2,711,490   2,607,609   
Stockholders' equity271,866   269,711   251,682   270,250   245,214   
Total liabilities and stockholders' equity$2,982,005   $2,959,211   $2,927,935   $2,981,740   $2,852,823   
                
Net interest income and margin on a tax-equivalent basis $26,392 3.64% $26,065 3.66% $25,421 3.57% $79,040 3.67% $73,868 3.57%
Tax-exempt adjustment 467   496   566   1,485   1,683  
Net interest income and margin $25,925 3.58% $25,569 3.59% $24,855 3.49% $77,555 3.60% $72,185 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 endedNine months endedYear ended
 September 30,September 30,December 31,
(dollars in thousands)20152014201520142014
      
Balance at beginning of period$25,871 $24,271 $24,998 $23,110 $23,110 
Provisions charged to operating expenses2,250 2,100 6,350 4,100 6,750 
 28,121 26,371 31,348 27,210 29,860 
Recoveries of loans previously charged-off:     
  Commercial and industrial53 137 160 1,386 1,468 
  Commercial tax-exempt     
  Owner occupied real estate 24 3 310 325 
  Commercial construction and land development 34 2 245 546 
  Commercial real estate12 2 29 176 203 
  Residential17  19 20 20 
  Consumer17 58 44 97 248 
Total recoveries99 255 257 2,234 2,810 
Loans charged-off:     
  Commercial and industrial(1,321)(300)(3,246)(1,155)(1,754)
  Commercial tax-exempt     
  Owner occupied real estate (187)(118)(383)(775)
  Commercial construction and land development (754) (1,293)(1,293)
  Commercial real estate(16)(355)(711)(1,071)(1,105)
  Residential(23)(38)(106)(340)(1,466)
  Consumer(118)(452)(682)(662)(1,279)
Total charged-off(1,478)(2,086)(4,863)(4,904)(7,672)
Net charge-offs(1,379)(1,831)(4,606)(2,670)(4,862)
Balance at end of period$26,742 $24,540 $26,742 $24,540 $24,998 
Net charge-offs (annualized) as a percentage of average loans outstanding0.26%0.39%0.30%0.20%0.26%
Allowance for loan losses as a percentage of period-end loans1.27%1.28%1.27%1.28%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 September 30, 2015 and for the preceding four quarters (dollar amounts in thousands).
      
 September 30,June 30,March 31,December 31,September 30,
 20152015201520142014
Nonperforming Assets     
Nonaccrual loans:     
  Commercial and industrial$10,850 $11,985 $12,375 $11,634 $7,974 
  Commercial tax-exempt     
  Owner occupied real estate9,290 7,720 6,210 7,416 6,954 
  Commercial construction and land development3,017 3,226 3,241 3,228 3,254 
  Commercial real estate6,722 6,384 6,362 5,824 6,407 
  Residential5,133 5,336 4,971 4,987 6,157 
  Consumer1,200 1,177 1,573 1,877 2,421 
  Total nonaccrual loans36,212 35,828 34,732 34,966 33,167 
Loans past due 90 days or more and still accruing   445 8 
  Total nonperforming loans36,212 35,828 34,732 35,411 33,175 
Foreclosed assets5,898 5,981 7,937 7,681 7,162 
Total nonperforming assets$42,110 $41,809 $42,669 $43,092 $40,337 
      
Troubled Debt Restructurings (TDRs)     
Nonaccruing TDRs (included in nonaccrual loans above)$14,938 $15,667 $16,272 $15,030 $12,495 
Accruing TDRs10,608 10,653 10,627 10,712 10,791 
Total TDRs$25,546 $26,320 $26,899 $25,742 $23,286 
      
Nonperforming loans to total loans1.73%1.73%1.73%1.77%1.73%
      
Nonperforming assets to total assets1.42%1.39%1.43%1.44%1.36%
      
Nonperforming loan coverage74%72%74%71%74%
      
Allowance for loan losses as a percentage of total period-end loans1.27%1.25%1.29%1.25%1.28%
      
Nonperforming assets / capital plus allowance for loan losses14%14%14%15%15%

 

CONTACTS Gary L. Nalbandian Chairman/President Mark A. Zody Chief Financial Officer (717) 412-6301

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