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Metro Phoenix Bank Reports Earnings of $729,000, or $0.19 per Diluted Share in 2Q2018 and Deposit Growth of 7.29%

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Metro Phoenix Bank Reports Earnings of $729,000, or $0.19 per Diluted Share in 2Q2018 and Deposit Growth of 7.29%

PR Newswire

PHOENIX, July 26, 2018 /PRNewswire/ -- Metro Phoenix Bank (OTC:MPHX) ("Bank") announced net income for the quarter ending June 30, 2018 of $729,000 or $0.19 per diluted share, a nominal decrease of $99,000 from $828,000, or $0.22 per diluted share in the first quarter of 2018.  Net income increased 57.11% from $464,000 in the second quarter of 2017.

(PRNewsfoto/Metro Phoenix Bank)

For the first six months of 2018, net income was $1.56 million, or $0.41 per diluted share, a 68.83% increase from the adjusted year-over-year 2017 net income of $924,000.  Adjusted 2017 net income excluded non-recurring "settlement" income.

Stephen P. Haggard, Bank President and Chief Executive Officer, stated that "The second quarter supports our belief that the quality of the Bank's earnings stream continues to improve.  Although SBA fee activity was underwhelming this past quarter, the increasing loan portfolio accruals, created by loan growth and a rising interest rate environment, as well as other fee income sources have muted the historical reliance on SBA gains-on-sale to achieve solid returns. SBA lending will always be an important component to our business model, however, our current earnings performance demonstrates Metro Phoenix Bank's ability to perform at an elevated level without the bump provided by the SBA gains-on-sale."

Second Quarter 2018 Highlights:

  • Net Income for the quarter was $729,000, or $0.19 per diluted share.
    • ROA of 1.59% and 1.74% for the quarter and for the six months respectively;
    • ROE of 10.17% and 11.07% for the quarter and for the six months respectively;
  • NIM of 5.43% and 5.47% for the quarter and six months, respectively with the cost of funds increasing to 0.51% compared to the linked quarter of 0.45%.
  • SBA Gains on Sale of $71,000 and $244,000 for the quarter and for the six months, respectively.
  • Provision Expense of $50,000 and $100,000 for the quarter and for the six months, respectively.
  • Efficiency Ratio of 59.55% and 57.55% for the quarter and for the six months, respectively.
  • Deposit growth of 7.29% and 8.87% for the quarter and for the six months, respectively.
  • Loan growth of 1.80% and 6.85% for the quarter and for the six months, respectively.
  • Non-Performing Asset Ratio remains nominal at 0.04%, compared to the linked quarter of 0.00%.

Balance Sheet
Total assets grew by 5.79% to $191.7 million at June 30, 2018 and increased 16.25% compared to $164.9 million a year ago.  Total loans grew by 1.80% to $147.1 million at June 30, 2018 and increased 15.46% compared to $127.4 million a year ago. Total deposits grew by 7.29% to $160.0 million at June 30, 2018 and increased 15.86% compared to $138.1 million a year ago. 

The allowance for loan losses totaled $1.7 million at June 30, 2018, 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 $29.1 million at June 30, 2018, from $28.4 million the preceding quarter.  At June 30, 2018, book value and tangible book value were $8.61 per share compared to $8.39 per share at March 31, 2018.

Visit www.metrophoenixbank.com/Investor-Relations.aspx for additional historical financial performance information.

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 June 30, 2018.  The Bank reported the following capital ratios:


Bank

Regulatory


06/30/18

Well Capitalized  

Tier 1 Leverage Ratio    

15.88%

5.00%

Common Equity Tier 1 Capital Ratio  

20.53%

6.50%

Tier 1 Risk Based Capital Ratio

20.53%

8.00%

Total Risk Based Capital Ratio

21.73%

10.00%

About the Company
Metro Phoenix Bank, Inc., established in 2007 and headquartered in Phoenix, Arizona, is a full-service community bank that caters to small-to mid-sized businesses and real estate professionals. MPB offers commercial clients with a variety of services ranging from U.S. Small Business Administration (SBA) financing solutions, commercial real estate construction loans, to a robust treasury management platform that includes a specialty Homeowners Association (HOA)/Property Management program. The company is traded over-the-counter as MPHX.  For additional information, visit: 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


For the Six months





ended June 30,


ended June 30,


Year-End



2018


2017


2018


2017


2017












Summary Income Data











Interest Income


2,666


1,897


5,194


3,688


8,521

Interest expense


259


129


455


237


583

Net Interest Income 


2,407


1,768


4,739


3,451


7,938

Provision for (reduction in) loan losses 


50


135


100


170


214

Non-interest income 


152


397


446


1,986


2,708

Non-interest expense 


1,524


1,276


2,984


2,500


5,099

Realized gains (losses) on sales of securities 


-


-


-


-


-

Income (loss) before income taxes 


985


754


2,101


2,767


5,333

Provision for income tax 


256


290


544


1,067


2,421

Net Income 


729


464


1,557


1,700


2,912












Per Share Data:











Shares outstanding end-of-period 


3,386


3,386


3,386


3,386


3,386

Earnings per common share 


0.22


0.14


0.46


0.50


0.86

Cash dividend declared 


-


-


-


-


-

Total shareholders' equity 


29,143


26,407


29,143


26,407


27,589

Book value per share 


8.61


7.80


8.61


7.80


8.15












Selected Balance Sheet Data:











Total assets 


191,679


164,852


191,679


164,852


174,963

Securities available-for-sale 


1,072


-


1,072


-


1,069

Loans 


147,083


127,446


147,083


127,446


137,650

Allowance for loan losses 


1,683


1,530


1,683


1,530


1,582

Deposits 


160,011


138,117


160,011


138,117


146,981

Other borrowings 


-


-


-


-


-

Shareholders' equity 


29,143


26,407


29,143


26,407


27,589












Performance Ratios:











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


10.17%


8.93%


11.07%


18.72%


12.77%

Net interest margin (%) 


5.43%


4.47%


5.47%


4.91%


5.15%

Average assets 


183,512


155,138


180,091


148,605


160,751

Return on average assets (annualized) (%) 


1.59%


1.20%


1.74%


2.31%


1.81%

Shareholders' equity to assets (%) 


15.20%


16.02%


15.20%


16.02%


15.77%

Efficiency ratio (%) 


59.55%


58.94%


57.55%


45.98%


47.90%












Asset Quality Data:











Nonaccrual loans 


86


-


86


-


-

Troubled debt restructurings


410


522


410


522


440

Other real estate 


-


-


-


-


-

Nonperforming assets 


86


-


86


-


-

Nonperforming assets to total assets (%) 


0.04%


-


0.04%


-


-

Nonperforming loans to total loans (%) 


0.06%


-


0.06%


-


-

Reserve for loan losses to total loans (%) 


1.14%


1.20%


1.14%


1.20%


1.15%

Reserve for loan losses to nonperforming loans (%) 


1956.98%


-


1956.98%


-


-

Reserve for loan losses to nonperforming assets (%)


1956.98%


-


1956.98%


-


-

Net charge-offs for period 


(1)


(1)


(1)


(1)


(9)

Average loans 


141,986


115,283


140,403


112,536


124,045

Ratio of charge-offs to average loans (%) 


0.00%


0.00%


0.00%


0.00%


-0.01%












Regulatory Capital Ratios:











Tier 1 leverage capital ratio (%) 


15.88%


16.43%


15.88%


16.43%


15.81%

Common Equity Tier 1 (%) 


20.53%


20.54%


20.53%


20.54%


20.83%

Tier 1 risk-based capital ratio (%) 


20.53%


20.54%


20.53%


20.54%


20.83%

Total risk-based capital ratio (%) 


21.73%


21.80%


21.73%


21.80%


22.05%

 

Contact:

Stephen P. Haggard


President & CEO


602-346-1800


shaggard@metrophoenixbank.com     

 

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SOURCE Metro Phoenix Bank

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