Metro Bancorp, Inc. (Metro or the Company) (NASDAQ Global Select Market
Symbol: METR), parent company of Metro Bank, today reported record
financial results for the fourth quarter and full year of 2013. The
Company recorded net income of $4.9 million, or $0.34 per diluted common
share, for the quarter ended December 31, 2013, compared to net income
of $3.5 million, or $0.24 per diluted common share, for the fourth
quarter of 2012. Net income for the full year 2013 totaled $17.3
million, or $1.20 per diluted common share, compared to $10.9 million,
or $0.77 per diluted common share, for 2012. Total revenues for the
fourth quarter and full year 2013 were up $1.7 million, or 6%, and $4.3
million, or 4%, over the respective periods of 2012. The Company also
reported net loan growth of $224.2 million, or 15%, over the past twelve
months.
|
Financial Highlights
|
(in millions, except per share data)
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
|
|
|
%
|
|
|
|
|
|
%
|
|
|
12/31/13
|
|
12/31/12
|
|
Increase
|
|
12/31/13
|
|
12/31/12
|
|
Increase
|
Total assets
|
|
$
|
2,781.1
|
|
$
|
2,634.9
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (net)
|
|
|
1,727.8
|
|
|
1,503.5
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
|
2,239.6
|
|
|
2,231.3
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$
|
31.3
|
|
$
|
29.6
|
|
6
|
%
|
|
$
|
121.3
|
|
$
|
117.1
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
4.9
|
|
|
3.5
|
|
42
|
%
|
|
|
17.3
|
|
|
10.9
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share
|
|
$
|
0.34
|
|
$
|
0.24
|
|
42
|
%
|
|
$
|
1.20
|
|
$
|
0.77
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“We are very proud of our efforts in 2013 in achieving the highest
quarterly and annual net incomes in the Company's history. Our record
net income of $17.3 million for 2013 reflects our ability to
successfully grow our loan portfolio in a sometimes challenging economic
environment as well as demonstrates our continued progress with
increasing revenues and disciplined expense management. Our continued
commitment to creating long-term shareholder value is evident through
this performance,” said Gary L. Nalbandian, the Company's Chairman and
Chief Executive Officer. "Even with a slowly expanding economy and a
continuously changing regulatory environment, we begin 2014 with a
strong balance sheet and clear momentum to continue our performance and
deliver to all of our constituencies."
Income Statement Highlights
-
The Company recorded net income of $4.9 million, or $0.34 per diluted
common share, for the fourth quarter of 2013 compared to net income of
$3.5 million, or $0.24 per diluted common share, for the same period
one year ago, a $1.4 million, or 42%, increase. Net income for the
full year 2013 totaled $17.3 million, or $1.20 per diluted common
share, up $6.4 million, or 58%, over $10.9 million, or $0.77 per
diluted common share over the results for 2012.
-
Return on average shareholders equity was 8.30% for the fourth quarter
of 2013, compared to 8.14% for the previous quarter and compared to
5.89% for the same period last year. Return on average shareholders
equity for 2013 was 7.41% compared to 4.76% for 2012.
-
Total revenues for the fourth quarter of 2013 were $31.3 million, up
$1.7 million, or 6%, over total revenues of $29.6 million for the same
quarter one year ago and were up $911,000, or 3%, over total revenues
of $30.4 million for the previous quarter. Total revenues for 2013
increased $4.3 million, or 4%, over 2012.
-
The Company's net interest margin on a fully-taxable basis for the
fourth quarter of 2013 was 3.55%, compared to 3.58% recorded in the
third quarter of 2013 and compared to 3.71% for the fourth quarter of
2012. The Company's deposit cost of funds for the fourth quarter was
0.28%, the same as the previous quarter and compared to 0.32% for the
same period one year ago.
-
The provision for loan losses totaled $1.6 million for the fourth
quarter of 2013, compared to $1.2 million for the previous quarter and
compared to $2.2 million for the fourth quarter one year ago. Our
allowance for loan losses totaled $23.1 million, or 1.32%, of total
loans at December 31, 2013 as compared to $25.3 million, or 1.65%, of
total loans at December 31, 2012.
-
Noninterest expenses for the fourth quarter 2013 were $22.7 million,
up $294,000, or 1%, compared to the previous quarter and up $251,000,
or 1%, over the same quarter last year. Total noninterest expenses for
2013 were down $1.3 million, or 1%, compared to 2012.
Balance Sheet Highlights
-
Net loans grew $52.5 million, or 3%, on a linked quarter basis to
$1.73 billion and were up $224.2 million, or 15%, over the fourth
quarter 2012.
-
Total deposits were $2.24 billion, an increase of $62.6 million, or
3%, over the previous quarter.
-
Nonperforming assets were 1.61% of total assets at December 31, 2013,
compared to 1.71% of total assets for the previous quarter and
compared to 1.33% of total assets one year ago.
-
Metro's capital levels remain strong with a total risk-based capital
ratio of 14.59%, a Tier 1 Leverage ratio of 9.39% and a tangible
common equity to tangible assets ratio of 8.24%.
-
Stockholders' equity totaled $230.2 million, or 8.28% of total assets,
at the end of 2013. At December 31, 2013, the Company's book value per
share was $16.19. The market price of Metro's common stock increased
by 63% from $13.22 per common share at December 31, 2012 to $21.54 per
common share at December 31, 2013.
Income Statement Overview
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
(dollars in thousands, except per share data)
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
Total revenues
|
|
$
|
31,294
|
|
$
|
29,639
|
|
6
|
%
|
|
$
|
121,320
|
|
$
|
117,052
|
|
4
|
%
|
Provision for loan losses
|
|
|
1,575
|
|
|
2,150
|
|
(27
|
)
|
|
|
6,875
|
|
|
10,100
|
|
(32
|
)
|
Total noninterest expenses
|
|
|
22,737
|
|
|
22,486
|
|
1
|
|
|
|
89,869
|
|
|
91,144
|
|
(1
|
)
|
Net income
|
|
|
4,891
|
|
|
3,456
|
|
42
|
|
|
|
17,260
|
|
|
10,894
|
|
58
|
|
Diluted net income per share
|
|
$
|
0.34
|
|
$
|
0.24
|
|
42
|
%
|
|
$
|
1.20
|
|
$
|
0.77
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro recorded net income of $4.9 million, or $0.34 per diluted common
share, for the fourth quarter of 2013 compared to net income of $3.5
million, or $0.24 per diluted common share, for the fourth quarter of
2012. Net income totaled $17.3 million, or $1.20 per diluted common
share, for the year ended December 31, 2013 as compared to net income of
$10.9 million, or $0.77 per diluted common share, for 2012.
Total revenues (net interest income plus noninterest income) for the
fourth quarter of 2013 were $31.3 million, up $1.7 million, or 6%, over
the fourth quarter of 2012. Total revenues for the year ended
December 31, 2013 were $121.3 million, up $4.3 million, or 4%, over last
year. On a linked quarter basis, total revenues were up $911,000, or 3%.
Noninterest expenses for the quarter totaled $22.7 million, up $251,000,
or 1%, compared to the same period in 2012. On a linked quarter basis,
total noninterest expenses were up $294,000, or 1%. Total noninterest
expenses for the year ended December 31, 2013 were $89.9 million, down
$1.3 million, or 1%, from last year.
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2013 totaled $23.3
million, up $1.5 million, or 7%, over the $21.8 million recorded in the
fourth quarter of 2012. Net interest income for the year ended
December 31, 2013 totaled $91.1 million versus $87.2 million for the
year 2012, a $3.9 million, or 5%, increase.
Average interest-earning assets for the fourth quarter of 2013 totaled
$2.66 billion versus $2.59 billion for the previous quarter and were up
$277.1 million, or 12%, over the fourth quarter of 2012. Average loans
receivable increased by $214.5 million, or 14%, and average investment
securities increased by $62.6 million, or 7%, for the fourth quarter
2013 over the same period one year ago. Average interest-bearing
deposits totaled $1.75 billion for the fourth quarter of 2013, up $8.5
million, over the same period of 2012 and average noninterest-bearing
deposits for the fourth quarter 2013 were $433.9 million, down $14.9
million, or 3%, from the fourth quarter last year. Total interest
expense for the quarter was down $188,000, or 8%, from the fourth
quarter of 2012 as a result of a 6 basis points (bps) reduction in the
Company's overall total cost of all funds over the past twelve months.
Average interest-earning assets for 2013 totaled $2.57 billion versus
$2.31 billion for 2012, a 12% increase. Total interest income on a tax
equivalent basis for the year ended December 31, 2013 was up $2.2
million, or 2%, over the same period last year. Total interest expense
for the year 2013 was down $1.9 million, or 19%, from the same period of
2012.
The net interest margin for the fourth quarter of 2013 was 3.46%, down 3
bps from the 3.49% recorded for the previous quarter and down 16 bps
from the fourth quarter one year ago. The net interest margin on a
fully-taxable basis for the fourth quarter of 2013 was 3.55%, also down
3 bps from the previous quarter and down 16 bps compared to 3.71% for
the fourth quarter of 2012.
The net interest margin for the year 2013 was 3.51%, down 23 bps from
the 3.74% recorded in 2012. On a fully-taxable basis, the net interest
margin for the year ended December 31, 2013 was 3.60%, compared to 3.83%
for the year ended December 31, 2012.
The Bank's deposit cost of funds for the fourth quarter of 2013 was
0.28%, the same as the previous quarter, and down 4 bps from 0.32%
recorded in the fourth quarter one year ago. The Bank's deposit cost of
funds for the year ended December 31, 2013 was 0.29%, down 8 bps
compared to 0.37% for the year ended December 31, 2012. The total cost
of all funding sources for the fourth quarter was 0.33%, compared to
0.32% for the previous quarter and down 6 basis points from the same
period in 2012.
Change in Net Interest Income and Rate/Volume
Analysis
As shown in the following table, the increase in net interest income on
a fully tax-equivalent basis for the fourth quarter and for the full
year 2013 over the same periods of 2012 was primarily due to an increase
in the level of interest earning assets. Lower yields on interest
earning assets were partially offset by a reduction in the Company's
cost of funds.
|
|
|
(dollars in thousands)
|
|
Tax Equivalent Net Interest Income
|
|
|
Volume
|
|
Rate
|
|
Total
|
|
%
|
2013 vs. 2012
|
|
Change
|
|
Change
|
|
Increase
|
|
Increase
|
4th Quarter
|
|
$
|
2,491
|
|
$
|
(1,020
|
)
|
|
$
|
1,471
|
|
7
|
%
|
Year to Date
|
|
$
|
9,631
|
|
$
|
(5,542
|
)
|
|
$
|
4,089
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
Noninterest Income
Noninterest income for the fourth quarter of 2013 totaled $8.0 million,
up $160,000, or 2%, over the fourth quarter one year ago. Service
charges and fees for the fourth quarter were $7.2 million, a decrease of
$408,000, or 5%, from the fourth quarter last year. Excluding a
reallocation adjustment between noninterest income and noninterest
expense of $477,000 recorded in the fourth quarter of 2012, service
charges and fees were actually up $69,000, or 1%, for the fourth quarter
of 2013 over the same period last year. Net gains on sales of securities
for the fourth quarter of 2013 were $643,000 compared to $92,000 in the
fourth quarter of 2012. Net gains on the sale of loans totaled $144,000
for the fourth quarter of 2013 versus $267,000 for the same period in
2012.
Noninterest income for the full year 2013 increased by $336,000, or 1%,
over the full year 2012. Service charges and fees were up 1% for the
year ended December 31, 2013 compared to 2012 and gains on the sale of
loans were $955,000 for the year ended 2013 compared to $1.2 million for
the same period of 2012. Net gains on sales of securities during 2013
were $664,000 compared to net gains of $1.1 million in 2012. There were
no OTTI losses in 2013 compared to $649,000 in OTTI charges on
private-label CMOs in the Bank's investment portfolio during 2012. The
Company recorded a $140,000 charge during the fourth quarter of 2012 to
repurchase and retire $8.0 million of 10% fixed rate Trust Capital
Securities which had been issued in September 2001 and no comparable
debt prepayment charge was incurred in 2013.
The breakdown of noninterest income for the fourth quarter and for the
years ended 2013 and 2012, respectively, is shown in the table below:
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
(dollars in thousands)
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
Service charges, fees and other income
|
|
$
|
7,178
|
|
$
|
7,586
|
|
|
(5
|
)%
|
|
$
|
28,571
|
|
$
|
28,372
|
|
|
1
|
%
|
Net gains on sales of loans
|
|
|
144
|
|
|
267
|
|
|
(46
|
)
|
|
|
955
|
|
|
1,220
|
|
|
(22
|
)
|
Net gains on sales/calls of securities
|
|
|
643
|
|
|
92
|
|
|
599
|
|
|
|
664
|
|
|
1,051
|
|
|
(37
|
)
|
Credit impairment losses on investment securities
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(649
|
)
|
|
(100
|
)
|
Debt prepayment charge
|
|
|
—
|
|
|
(140
|
)
|
|
(100
|
)
|
|
|
—
|
|
|
(140
|
)
|
|
(100
|
)
|
Total noninterest income
|
|
$
|
7,965
|
|
$
|
7,805
|
|
|
2
|
%
|
|
$
|
30,190
|
|
$
|
29,854
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expenses
Noninterest expenses for the fourth quarter of 2013 were $22.7 million,
up $251,000, or 1%, compared to $22.5 million recorded in the fourth
quarter one year ago. For the year ended December 31, 2013, noninterest
expenses totaled $89.9 million, down $1.3 million, or 1%, from $91.1
million recorded for the same period of 2012.
The breakdown of noninterest expenses for the fourth quarter and for the
full year 2013 and 2012, respectively, are shown in the table below:
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
(dollars in thousands)
|
|
2013
|
|
2012
|
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
Salaries and employee benefits
|
|
$
|
10,829
|
|
$
|
10,516
|
|
|
3
|
%
|
|
$
|
42,806
|
|
$
|
41,241
|
|
4
|
%
|
Occupancy and equipment
|
|
|
3,386
|
|
|
3,379
|
|
|
—
|
|
|
|
13,250
|
|
|
13,281
|
|
—
|
|
Advertising and marketing
|
|
|
991
|
|
|
623
|
|
|
59
|
|
|
|
2,418
|
|
|
1,870
|
|
29
|
|
Data processing
|
|
|
3,150
|
|
|
3,707
|
|
|
(15
|
)
|
|
|
12,838
|
|
|
13,590
|
|
(6
|
)
|
Regulatory assessments and related costs
|
|
|
554
|
|
|
541
|
|
|
2
|
|
|
|
2,227
|
|
|
4,063
|
|
(45
|
)
|
Foreclosed real estate
|
|
|
153
|
|
|
(208
|
)
|
|
(174
|
)
|
|
|
422
|
|
|
1,335
|
|
(68
|
)
|
Other expenses
|
|
|
3,674
|
|
|
3,928
|
|
|
(6
|
)
|
|
|
15,908
|
|
|
15,764
|
|
1
|
|
Total noninterest expenses
|
|
$
|
22,737
|
|
$
|
22,486
|
|
|
1
|
%
|
|
$
|
89,869
|
|
$
|
91,144
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in advertising and marketing expenses for the fourth
quarter were the result of increased levels of marketing branded items
as well as a higher level of corporate sponsorships and donations
compared to prior periods.
Data processing costs were lower in the fourth quarter of 2013 due to
lower levels of depreciation associated with now fully depreciated
computer hardware and software combined with the fact that data
processing totals for the fourth quarter of 2012 included a reallocation
adjustment of approximately $477,000 as mentioned in the noninterest
income section.
Balance Sheet
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
|
%
|
(dollars in thousands)
|
|
2013
|
|
2012
|
|
Increase
|
Total assets
|
|
$
|
2,781,118
|
|
$
|
2,634,875
|
|
6
|
%
|
|
|
|
|
|
|
|
Total loans (net)
|
|
|
1,727,762
|
|
|
1,503,515
|
|
15
|
%
|
|
|
|
|
|
|
|
Total deposits
|
|
|
2,239,621
|
|
|
2,231,291
|
|
—
|
%
|
|
|
|
|
|
|
|
Total core deposits
|
|
|
2,176,600
|
|
|
2,176,376
|
|
—
|
%
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
230,183
|
|
|
235,387
|
|
(2
|
)%
|
|
|
|
|
|
|
|
Lending
Gross loans totaled $1.75 billion at December 31, 2013, an increase of
$222.1 million, or 15%, over December 31, 2012. The Company experienced
loan growth in all but one category over the past twelve months as a
result of general economic improvement in the markets we serve, growth
in the breadth and experience of the lending team as well as expansion
of the Bank's middle market lending function. The composition of the
Company's loan portfolio at December 31, 2013 and December 31, 2012 was
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
|
$
|
|
%
|
(dollars in thousands)
|
|
2013
|
|
Total
|
|
2012
|
|
Total
|
|
Change
|
|
Change
|
Commercial and industrial
|
|
$
|
447,144
|
|
25
|
%
|
|
$
|
376,988
|
|
25
|
%
|
|
$
|
70,156
|
|
|
19
|
%
|
Commercial tax-exempt
|
|
|
81,734
|
|
5
|
|
|
|
92,202
|
|
6
|
|
|
|
(10,468
|
)
|
|
(11
|
)
|
Owner occupied real estate
|
|
|
302,417
|
|
17
|
|
|
|
268,372
|
|
17
|
|
|
|
34,045
|
|
|
13
|
|
Commercial construction and land development
|
|
|
133,176
|
|
8
|
|
|
|
100,399
|
|
7
|
|
|
|
32,777
|
|
|
33
|
|
Commercial real estate
|
|
|
473,188
|
|
27
|
|
|
|
394,404
|
|
26
|
|
|
|
78,784
|
|
|
20
|
|
Residential
|
|
|
97,766
|
|
6
|
|
|
|
83,899
|
|
5
|
|
|
|
13,867
|
|
|
17
|
|
Consumer
|
|
|
215,447
|
|
12
|
|
|
|
212,533
|
|
14
|
|
|
|
2,914
|
|
|
1
|
|
Gross loans
|
|
$
|
1,750,872
|
|
100
|
%
|
|
$
|
1,528,797
|
|
100
|
%
|
|
$
|
222,075
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
The Company's asset quality ratios are highlighted below:
|
|
|
|
|
Quarters Ended
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
2013
|
|
2013
|
|
2012
|
Nonperforming assets/total assets
|
|
1.61
|
%
|
|
1.71
|
%
|
|
1.33
|
%
|
Net loan charge-offs (annualized)/average total loans
|
|
1.35
|
%
|
|
0.43
|
%
|
|
0.65
|
%
|
Loan loss allowance/total loans
|
|
1.32
|
%
|
|
1.61
|
%
|
|
1.65
|
%
|
Nonperforming loan coverage
|
|
57
|
%
|
|
63
|
%
|
|
77
|
%
|
Nonperforming assets/capital and reserves
|
|
18
|
%
|
|
18
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets decreased during the fourth quarter by $2.2
million, to $44.8 million, or 1.61%, of total assets at December 31,
2013, from $47.0 million, or 1.71%, of total assets at September 30,
2013, and increased $9.7 million, compared to $35.1 million, or 1.33%,
of total assets one year ago. Nonperforming loans decreased by $3.2
million during the fourth quarter while foreclosed asset balances
increased by $921,000. The increase in foreclosed assets was primarily
associated with 3 properties that were transferred to foreclosed assets
during the quarter. Each of these properties sold subsequent to
December 31, 2013 and have or are expected to settle in the first
quarter of 2014.
Net loan charge-offs totaled $5.9 million for the fourth quarter of
2013. A total of $5.2 million, or 89%, of this total was associated with
four loan relationships, all which had been reserved for in prior
periods. Net charge-offs for the year ended December 31, 2013 totaled
$9.0 million, compared to $6.4 million for 2012. A total of $7.6
million, or 84%, of the total net charge-offs for the year 2013 was
associated with 5 loan relationships.
The Company recorded a provision for loan losses of $1.6 million for the
fourth quarter of 2013 as compared to $1.2 million for the previous
quarter and to $2.2 million recorded in the fourth quarter of 2012. The
allowance for loan losses totaled $23.1 million as of December 31, 2013
as compared to $27.4 million at September 30, 2013 and to $25.3 million
at December 31, 2012. The allowance represented 1.32% of gross loans
outstanding at December 31, 2013, compared to 1.61% at September 30,
2013 and 1.65% at December 31, 2012.
Deposits
The Company's deposit balances at December 31, 2013 were $2.24 billion,
compared to total deposits of $2.18 billion at September 30, 2013 and
compared to $2.23 billion one year ago. The change in core deposits over
the past twelve months by type of account is as follows:
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
|
|
|
%
|
|
4th Quarter 2013
|
(dollars in thousands)
|
|
2013
|
|
2012
|
|
Change
|
|
Cost of Funds
|
Demand noninterest-bearing
|
|
$
|
443,287
|
|
$
|
455,000
|
|
(3
|
)%
|
|
0.00
|
%
|
Demand interest-bearing
|
|
|
1,107,056
|
|
|
1,133,765
|
|
(2
|
)
|
|
0.27
|
|
Savings
|
|
|
496,495
|
|
|
444,976
|
|
12
|
|
|
0.31
|
|
Subtotal
|
|
|
2,046,838
|
|
|
2,033,741
|
|
1
|
|
|
0.22
|
|
Time
|
|
|
129,762
|
|
|
142,635
|
|
(9
|
)
|
|
1.19
|
|
Total core deposits
|
|
$
|
2,176,600
|
|
$
|
2,176,376
|
|
—
|
%
|
|
0.28
|
%
|
|
|
|
|
|
|
|
|
|
Total core deposits, excluding time deposits, increased $13.1 million,
or 1%, over the past twelve months and by $53.6 million, or 3%, on a
linked quarter basis. The cost of core deposits, excluding time
deposits, during the fourth quarter of 2013 was 0.22%, the same as the
previous quarter and down 3 bps from the fourth quarter one year ago.
The cost of total core deposits for the fourth quarter of 2013 and on a
linked quarter basis was 0.28%, which was down 4 bps from fourth quarter
of 2012.
Change in core deposits from year-end 2012 to year-end 2013 by type of
customer is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
|
%
|
(dollars in thousands)
|
|
2013
|
|
Total
|
|
2012
|
|
Total
|
|
Increase
|
Consumer
|
|
$
|
960,214
|
|
44
|
%
|
|
$
|
950,383
|
|
44
|
%
|
|
1
|
%
|
Commercial
|
|
|
651,211
|
|
30
|
|
|
|
681,882
|
|
31
|
|
|
(4
|
)
|
Government
|
|
|
565,175
|
|
26
|
|
|
|
544,111
|
|
25
|
|
|
4
|
|
Total
|
|
$
|
2,176,600
|
|
100
|
%
|
|
$
|
2,176,376
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
At December 31, 2013, the Company's investment portfolio totaled $869.7
million, down $19.6 million, or 2%, on a linked quarter basis and down
$75.2 million, or 8%, compared to December 31, 2012. Detailed below is
information regarding the composition and characteristics of the
portfolio at December 31, 2013:
|
|
|
|
|
|
|
|
|
Available
|
|
Held to
|
|
|
Product Description
|
|
for Sale
|
|
Maturity
|
|
Total
|
(dollars in thousands)
|
|
|
|
|
|
|
U.S. Government agencies/other
|
|
$
|
29,926
|
|
|
$
|
149,096
|
|
|
$
|
179,022
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
Federal government agencies pass through certificates
|
|
|
62,500
|
|
|
|
7,849
|
|
|
|
70,349
|
|
Agency collateralized mortgage obligations
|
|
|
467,064
|
|
|
|
118,893
|
|
|
|
585,957
|
|
Corporate debt securities
|
|
|
—
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Municipal securities
|
|
|
26,433
|
|
|
|
2,976
|
|
|
|
29,409
|
|
Total
|
|
$
|
585,923
|
|
|
$
|
283,814
|
|
|
$
|
869,737
|
|
Duration (in years)
|
|
|
4.9
|
|
|
|
6.4
|
|
|
|
5.4
|
|
Average life (in years)
|
|
|
5.6
|
|
|
|
7.6
|
|
|
|
6.2
|
|
Quarterly average yield (annualized)
|
|
|
2.25
|
%
|
|
|
2.59
|
%
|
|
|
2.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2013, after-tax unrealized loss on the Bank's available
for sale portfolio was $16.5 million, as compared to an after-tax
unrealized gain of $7.2 million at December 31, 2012. This change is a
direct result of the steep decline in market prices for fixed rate
investments which has occurred over the past three quarters as a result
in the increase in long-term market interest rates.
Capital
Stockholders' equity at December 31, 2013 totaled $230.2 million,
compared to $235.4 million at December 31, 2012. The decrease is the
result of an increase in capital balances of $18.6 million, offset by
the change from an unrealized gain to an unrealized loss on the
Company's available for sale portfolio as mentioned previously. Return
on average stockholders' equity (ROE) for the fourth quarter of 2013 was
8.30%, compared to 8.14% for the previous quarter and up over the 5.89%
for the fourth quarter last year. Return on average stockholders' equity
for the year 2013 was 7.41% compared to 4.76% for 2012.
The Company's capital ratios at December 31, 2013 and 2012 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
|
|
|
|
|
|
|
Guidelines “Well
|
|
|
12/31/2013
|
|
12/31/2012
|
|
Capitalized”
|
Leverage ratio
|
|
9.39
|
%
|
|
9.61
|
%
|
|
5.00
|
%
|
Tier 1
|
|
13.41
|
|
|
13.97
|
|
|
6.00
|
|
Total capital
|
|
14.59
|
|
|
15.22
|
|
|
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 December 31, 2013, the Company's book value per common share was
$16.19.
The market price of Metro's common stock increased by 63% from $13.22
per common share at December 31, 2012 to $21.54 per common share at
December 31, 2013.
Forward-Looking Statements
This document contains forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933, as amended, which we refer to
as the Securities Act and Section 21E of the Securities Exchange Act of
1934, which we refer to as the Exchange Act, with respect to the
financial condition, liquidity, results of operations, future
performance and business of Metro Bancorp, Inc. These forward-looking
statements are intended to be covered by the safe harbor for
"forward-looking statements" provided by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are those that
are not historical facts. These forward-looking statements include
statements with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, estimates and intentions that are subject
to significant risks and uncertainties and are subject to change based
on various factors (some of which are beyond our control). The words
"may," "could," "should," "would," "believe," "anticipate," "estimate,"
"expect," "intend," "plan" and similar expressions are intended to
identify forward-looking statements.
While we believe our plans, objectives, goals, expectations,
anticipations, estimates and intentions as reflected in these
forward-looking statements are reasonable, we can give no assurance that
any of them will be achieved. You should understand that various
factors, in addition to those discussed elsewhere in this document,
could affect our future results and could cause results to differ
materially from those expressed in these forward-looking statements,
including:
-
the effects of and changes in, trade, monetary and fiscal policies,
including interest rate policies of the Board of Governors of the
Federal Reserve System, 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;
-
the effects of ongoing short and long-term federal budget and tax
negotiations and their effects on economic and business conditions in
general and our customers in particular;
-
the effects of the failure of the federal government 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 financial
services’ laws and regulations (including laws concerning taxes,
banking, securities and insurance);
-
possible impacts of the capital and liquidity requirements of the
Basel III standards and other regulatory pronouncements;
-
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 (allowance or ALL);
-
the impact of changes in Regulation Z and other 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;
-
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 willingness of customers to substitute competitors’ products and
services for our products and services and vice versa, based on price,
quality, relationship or otherwise;
-
changes in consumer spending and saving habits relative to the
financial services we provide;
-
the ability to hedge certain risks economically;
-
the loss of certain key officers;
-
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,
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;
-
rapidly changing technology;
-
continued relationships with major customers;
-
effect of terrorist attacks and threats of actual war;
-
other economic, competitive, governmental, regulatory and
technological factors affecting the Company’s operations, pricing,
products and services;
-
interruption or breach in security of our information systems
resulting in failures or disruptions in customer account management,
general ledger processing and loan or deposit systems;
-
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.
|
Metro Bancorp, Inc.
|
Selected Consolidated Financial Data
|
|
|
|
|
|
|
|
At or for the
|
|
At or for the
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
September 30,
|
|
%
|
|
December 31,
|
|
%
|
|
December 31,
|
|
December 31,
|
|
%
|
(in thousands, except per share amounts)
|
|
2013
|
|
2013
|
|
Change
|
|
2012
|
|
Change
|
|
2013
|
|
2012
|
|
Change
|
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
23,329
|
|
|
$
|
22,867
|
|
|
2
|
%
|
|
$
|
21,834
|
|
|
7
|
%
|
|
$
|
91,130
|
|
|
$
|
87,198
|
|
|
5
|
%
|
Provision for loan losses
|
|
|
1,575
|
|
|
|
1,200
|
|
|
31
|
|
|
|
2,150
|
|
|
(27
|
)
|
|
|
6,875
|
|
|
|
10,100
|
|
|
(32
|
)
|
Noninterest income
|
|
|
7,965
|
|
|
|
7,516
|
|
|
6
|
|
|
|
7,805
|
|
|
2
|
|
|
|
30,190
|
|
|
|
29,854
|
|
|
1
|
|
Total revenues
|
|
|
31,294
|
|
|
|
30,383
|
|
|
3
|
|
|
|
29,639
|
|
|
6
|
|
|
|
121,320
|
|
|
|
117,052
|
|
|
4
|
|
Noninterest expenses
|
|
|
22,737
|
|
|
|
22,443
|
|
|
1
|
|
|
|
22,486
|
|
|
1
|
|
|
|
89,869
|
|
|
|
91,144
|
|
|
(1
|
)
|
Net income
|
|
|
4,891
|
|
|
|
4,676
|
|
|
5
|
|
|
|
3,456
|
|
|
42
|
|
|
|
17,260
|
|
|
|
10,894
|
|
|
58
|
|
Per Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
3
|
%
|
|
$
|
0.24
|
|
|
42
|
%
|
|
$
|
1.21
|
|
|
$
|
0.77
|
|
|
57
|
%
|
Diluted
|
|
|
0.34
|
|
|
|
0.33
|
|
|
3
|
|
|
|
0.24
|
|
|
42
|
|
|
|
1.20
|
|
|
|
0.77
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
|
|
|
|
$
|
16.25
|
|
|
|
|
|
|
|
|
$
|
16.19
|
|
|
$
|
16.58
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,155
|
|
|
|
14,145
|
|
|
|
|
|
14,129
|
|
|
|
|
|
14,142
|
|
|
|
14,128
|
|
|
|
Diluted
|
|
|
14,337
|
|
|
|
14,315
|
|
|
|
|
|
14,129
|
|
|
|
|
|
14,273
|
|
|
|
14,128
|
|
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,781,118
|
|
|
$
|
2,755,982
|
|
|
1
|
%
|
|
|
|
|
|
$
|
2,781,118
|
|
|
$
|
2,634,875
|
|
|
6
|
%
|
Loans (net)
|
|
|
1,727,762
|
|
|
|
1,675,251
|
|
|
3
|
|
|
|
|
|
|
|
1,727,762
|
|
|
|
1,503,515
|
|
|
15
|
|
Allowance for loan losses
|
|
|
23,110
|
|
|
|
27,425
|
|
|
(16
|
)
|
|
|
|
|
|
|
23,110
|
|
|
|
25,282
|
|
|
(9
|
)
|
Investment securities
|
|
|
869,737
|
|
|
|
889,375
|
|
|
(2
|
)
|
|
|
|
|
|
|
869,737
|
|
|
|
944,892
|
|
|
(8
|
)
|
Total deposits
|
|
|
2,239,621
|
|
|
|
2,177,071
|
|
|
3
|
|
|
|
|
|
|
|
2,239,621
|
|
|
|
2,231,291
|
|
|
—
|
|
Core deposits
|
|
|
2,176,600
|
|
|
|
2,113,207
|
|
|
3
|
|
|
|
|
|
|
|
2,176,600
|
|
|
|
2,176,376
|
|
|
—
|
|
Stockholders' equity
|
|
|
230,183
|
|
|
|
230,941
|
|
|
—
|
|
|
|
|
|
|
|
230,183
|
|
|
|
235,387
|
|
|
(2
|
)
|
Capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to assets
|
|
|
|
|
8.38
|
%
|
|
|
|
|
|
|
|
|
8.28
|
%
|
|
|
8.93
|
%
|
|
|
Leverage ratio
|
|
|
|
|
9.42
|
|
|
|
|
|
|
|
|
|
9.39
|
|
|
|
9.61
|
|
|
|
Risk based capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
|
|
|
|
|
13.54
|
|
|
|
|
|
|
|
|
|
13.41
|
|
|
|
13.97
|
|
|
|
Total Capital
|
|
|
|
|
14.79
|
|
|
|
|
|
|
|
|
|
14.59
|
|
|
|
15.22
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit cost of funds
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
|
|
0.32
|
%
|
|
|
|
|
0.29
|
%
|
|
|
0.37
|
%
|
|
|
Cost of funds
|
|
|
0.33
|
|
|
|
0.32
|
|
|
|
|
|
0.39
|
|
|
|
|
|
0.33
|
|
|
|
0.46
|
|
|
|
Net interest margin
|
|
|
3.46
|
|
|
|
3.49
|
|
|
|
|
|
3.62
|
|
|
|
|
|
3.51
|
|
|
|
3.74
|
|
|
|
Return on average assets
|
|
|
0.70
|
|
|
|
0.69
|
|
|
|
|
|
0.54
|
|
|
|
|
|
0.64
|
|
|
|
0.44
|
|
|
|
Return on average stockholders' equity
|
|
|
8.30
|
|
|
|
8.14
|
|
|
|
|
|
5.89
|
|
|
|
|
|
7.41
|
|
|
|
4.76
|
|
|
|
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) to average loans outstanding
|
|
|
1.35
|
%
|
|
|
0.43
|
%
|
|
|
|
|
0.65
|
%
|
|
|
|
|
0.55
|
%
|
|
|
0.44
|
%
|
|
|
Nonperforming assets to total period-end assets
|
|
|
1.61
|
|
|
|
1.71
|
|
|
|
|
|
|
|
|
|
1.61
|
|
|
|
1.33
|
|
|
|
Allowance for loan losses to total period-end loans
|
|
|
1.32
|
|
|
|
1.61
|
|
|
|
|
|
|
|
|
|
1.32
|
|
|
|
1.65
|
|
|
|
Allowance for loan losses to period-end nonperforming loans
|
|
|
57
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
57
|
|
|
|
77
|
|
|
|
Nonperforming assets to capital and allowance
|
|
|
18
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro Bancorp, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
(in thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
44,996
|
|
|
$
|
56,582
|
Securities, available for sale at fair value
|
|
|
585,923
|
|
|
|
675,109
|
Securities, held to maturity at cost (fair value 2013: $263,697;
2012: $273,671)
|
|
|
283,814
|
|
|
|
269,783
|
Loans, held for sale
|
|
|
6,225
|
|
|
|
15,183
|
Loans receivable, net of allowance for loan losses (allowance
2013: $23,110; 2012: $25,282)
|
|
|
1,727,762
|
|
|
|
1,503,515
|
Restricted investments in bank stock
|
|
|
20,564
|
|
|
|
15,450
|
Premises and equipment, net
|
|
|
75,783
|
|
|
|
78,788
|
Other assets
|
|
|
36,051
|
|
|
|
20,465
|
Total assets
|
|
$
|
2,781,118
|
|
|
$
|
2,634,875
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing
|
|
$
|
443,287
|
|
|
$
|
455,000
|
Interest-bearing
|
|
|
1,796,334
|
|
|
|
1,776,291
|
Total deposits
|
|
|
2,239,621
|
|
|
|
2,231,291
|
Short-term borrowing
|
|
|
277,750
|
|
|
|
113,225
|
Long-term debt
|
|
|
15,800
|
|
|
|
40,800
|
Other liabilities
|
|
|
17,764
|
|
|
|
14,172
|
Total liabilities
|
|
|
2,550,935
|
|
|
|
2,399,488
|
Stockholders' Equity:
|
|
|
|
|
Preferred stock - Series A noncumulative; $10.00 par value;
$1,000,000 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 and outstanding shares 2013: 14,157,219; 2012: 14,131,263)
|
|
|
14,157
|
|
|
|
14,131
|
Surplus
|
|
|
158,650
|
|
|
|
157,305
|
Retained earnings
|
|
|
73,491
|
|
|
|
56,311
|
Accumulated other comprehensive income (loss)
|
|
|
(16,515
|
)
|
|
|
7,240
|
Total stockholders' equity
|
|
|
230,183
|
|
|
|
235,387
|
Total liabilities and stockholders' equity
|
|
$
|
2,781,118
|
|
|
$
|
2,634,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro Bancorp, Inc. and Subsidiaries
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
(in thousands, except per share amounts)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Interest Income
|
|
|
|
|
|
|
|
|
Loans receivable, including fees:
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
19,165
|
|
$
|
17,841
|
|
|
$
|
74,404
|
|
$
|
71,760
|
|
Tax-exempt
|
|
|
886
|
|
|
935
|
|
|
|
3,630
|
|
|
3,628
|
|
Securities:
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,165
|
|
|
5,136
|
|
|
|
20,552
|
|
|
21,468
|
|
Tax-exempt
|
|
|
187
|
|
|
184
|
|
|
|
740
|
|
|
451
|
|
Federal funds sold
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
Total interest income
|
|
|
25,403
|
|
|
24,096
|
|
|
|
99,326
|
|
|
97,308
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,557
|
|
|
1,777
|
|
|
|
6,204
|
|
|
7,701
|
|
Short-term borrowings
|
|
|
211
|
|
|
33
|
|
|
|
712
|
|
|
203
|
|
Long-term debt
|
|
|
306
|
|
|
452
|
|
|
|
1,280
|
|
|
2,206
|
|
Total interest expense
|
|
|
2,074
|
|
|
2,262
|
|
|
|
8,196
|
|
|
10,110
|
|
Net interest income
|
|
|
23,329
|
|
|
21,834
|
|
|
|
91,130
|
|
|
87,198
|
|
Provision for loan losses
|
|
|
1,575
|
|
|
2,150
|
|
|
|
6,875
|
|
|
10,100
|
|
Net interest income after provision for loan losses
|
|
|
21,754
|
|
|
19,684
|
|
|
|
84,255
|
|
|
77,098
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
Service charges, fees and other operating income
|
|
|
7,178
|
|
|
7,586
|
|
|
|
28,571
|
|
|
28,372
|
|
Net gains on sales of loans
|
|
|
144
|
|
|
267
|
|
|
|
955
|
|
|
1,220
|
|
Total fees and other income
|
|
|
7,322
|
|
|
7,853
|
|
|
|
29,526
|
|
|
29,592
|
|
Net impairment loss on investment securities
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(649
|
)
|
Net gains on sales/calls of securities
|
|
|
643
|
|
|
92
|
|
|
|
664
|
|
|
1,051
|
|
Debt prepayment charge
|
|
|
—
|
|
|
(140
|
)
|
|
|
—
|
|
|
(140
|
)
|
Total noninterest income
|
|
|
7,965
|
|
|
7,805
|
|
|
|
30,190
|
|
|
29,854
|
|
Noninterest Expenses
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
10,829
|
|
|
10,516
|
|
|
|
42,806
|
|
|
41,241
|
|
Occupancy and equipment
|
|
|
3,386
|
|
|
3,379
|
|
|
|
13,250
|
|
|
13,281
|
|
Advertising and marketing
|
|
|
991
|
|
|
623
|
|
|
|
2,418
|
|
|
1,870
|
|
Data processing
|
|
|
3,150
|
|
|
3,707
|
|
|
|
12,838
|
|
|
13,590
|
|
Regulatory assessments and related costs
|
|
|
554
|
|
|
541
|
|
|
|
2,227
|
|
|
4,063
|
|
Foreclosed real estate
|
|
|
153
|
|
|
(208
|
)
|
|
|
422
|
|
|
1,335
|
|
Other
|
|
|
3,674
|
|
|
3,928
|
|
|
|
15,908
|
|
|
15,764
|
|
Total noninterest expenses
|
|
|
22,737
|
|
|
22,486
|
|
|
|
89,869
|
|
|
91,144
|
|
Income before taxes
|
|
|
6,982
|
|
|
5,003
|
|
|
|
24,576
|
|
|
15,808
|
|
Provision for federal income taxes
|
|
|
2,091
|
|
|
1,547
|
|
|
|
7,316
|
|
|
4,914
|
|
Net income
|
|
$
|
4,891
|
|
$
|
3,456
|
|
|
$
|
17,260
|
|
$
|
10,894
|
|
Net Income per Common Share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
$
|
0.24
|
|
|
$
|
1.21
|
|
$
|
0.77
|
|
Diluted
|
|
|
0.34
|
|
|
0.24
|
|
|
|
1.20
|
|
|
0.77
|
|
Average Common and Common Equivalent Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,155
|
|
|
14,129
|
|
|
|
14,142
|
|
|
14,128
|
|
Diluted
|
|
|
14,337
|
|
|
14,129
|
|
|
|
14,273
|
|
|
14,128
|
|
|
|
|
|
|
|
|
|
|
|
Metro Bancorp, Inc. and Subsidiaries Average Balances and Net
Interest Income
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended,
|
|
Year-to-date,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
894,620
|
|
$
|
5,165
|
|
2.31
|
%
|
|
$
|
881,068
|
|
$
|
5,021
|
|
2.28
|
%
|
|
$
|
832,655
|
|
$
|
5,136
|
|
2.47
|
%
|
|
$
|
895,489
|
|
$
|
20,552
|
|
2.30
|
%
|
|
$
|
796,306
|
|
$
|
21,468
|
|
2.70
|
%
|
Tax-exempt
|
|
|
30,446
|
|
|
289
|
|
3.79
|
|
|
|
29,873
|
|
|
284
|
|
3.80
|
|
|
|
29,818
|
|
|
283
|
|
3.78
|
|
|
|
30,016
|
|
|
1,139
|
|
3.80
|
|
|
|
18,189
|
|
|
693
|
|
3.81
|
|
Total securities
|
|
|
925,066
|
|
|
5,454
|
|
2.36
|
|
|
|
910,941
|
|
|
5,305
|
|
2.33
|
|
|
|
862,473
|
|
|
5,419
|
|
2.51
|
|
|
|
925,505
|
|
|
21,691
|
|
2.34
|
|
|
|
814,495
|
|
|
22,161
|
|
2.72
|
|
Federal funds sold
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
2,696
|
|
|
1
|
|
0.05
|
|
Total loans receivable
|
|
|
1,731,862
|
|
|
20,527
|
|
4.66
|
|
|
|
1,674,334
|
|
|
20,150
|
|
4.73
|
|
|
|
1,517,395
|
|
|
19,279
|
|
4.99
|
|
|
|
1,647,608
|
|
|
79,988
|
|
4.80
|
|
|
|
1,489,787
|
|
|
77,342
|
|
5.13
|
|
Total earning assets
|
|
$
|
2,656,928
|
|
$
|
25,981
|
|
3.86
|
%
|
|
$
|
2,585,275
|
|
$
|
25,455
|
|
3.88
|
%
|
|
$
|
2,379,868
|
|
$
|
24,698
|
|
4.09
|
%
|
|
$
|
2,573,113
|
|
$
|
101,679
|
|
3.92
|
%
|
|
$
|
2,306,978
|
|
$
|
99,504
|
|
4.27
|
%
|
Sources of Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular savings
|
|
$
|
448,976
|
|
$
|
356
|
|
0.31
|
%
|
|
$
|
458,105
|
|
$
|
348
|
|
0.30
|
%
|
|
$
|
407,906
|
|
$
|
334
|
|
0.33
|
%
|
|
$
|
436,618
|
|
$
|
1,365
|
|
0.31
|
%
|
|
$
|
398,242
|
|
$
|
1,422
|
|
0.36
|
%
|
Interest checking and money market
|
|
|
1,112,292
|
|
|
770
|
|
0.27
|
|
|
|
1,039,800
|
|
|
735
|
|
0.28
|
|
|
|
1,130,917
|
|
|
896
|
|
0.31
|
|
|
|
1,067,444
|
|
|
3,041
|
|
0.28
|
|
|
|
1,050,664
|
|
|
3,799
|
|
0.36
|
|
Time deposits
|
|
|
126,523
|
|
|
380
|
|
1.19
|
|
|
|
123,044
|
|
|
368
|
|
1.19
|
|
|
|
145,820
|
|
|
499
|
|
1.36
|
|
|
|
129,502
|
|
|
1,591
|
|
1.23
|
|
|
|
157,238
|
|
|
2,262
|
|
1.44
|
|
Public time and other noncore deposits
|
|
|
61,977
|
|
|
51
|
|
0.33
|
|
|
|
65,145
|
|
|
52
|
|
0.32
|
|
|
|
56,661
|
|
|
48
|
|
0.34
|
|
|
|
60,518
|
|
|
207
|
|
0.34
|
|
|
|
54,333
|
|
|
218
|
|
0.40
|
|
Total interest-bearing deposits
|
|
|
1,749,768
|
|
|
1,557
|
|
0.35
|
|
|
|
1,686,094
|
|
|
1,503
|
|
0.35
|
|
|
|
1,741,304
|
|
|
1,777
|
|
0.41
|
|
|
|
1,694,082
|
|
|
6,204
|
|
0.37
|
|
|
|
1,660,477
|
|
|
7,701
|
|
0.46
|
|
Short-term borrowings
|
|
|
320,644
|
|
|
211
|
|
0.26
|
|
|
|
329,868
|
|
|
189
|
|
0.22
|
|
|
|
60,398
|
|
|
33
|
|
0.22
|
|
|
|
301,447
|
|
|
712
|
|
0.23
|
|
|
|
86,333
|
|
|
203
|
|
0.23
|
|
Long-term debt
|
|
|
15,800
|
|
|
306
|
|
7.77
|
|
|
|
15,800
|
|
|
307
|
|
7.77
|
|
|
|
43,083
|
|
|
452
|
|
4.18
|
|
|
|
21,005
|
|
|
1,280
|
|
6.09
|
|
|
|
47,662
|
|
|
2,206
|
|
4.62
|
|
Total interest-bearing liabilities
|
|
|
2,086,212
|
|
|
2,074
|
|
0.39
|
|
|
|
2,031,762
|
|
|
1,999
|
|
0.39
|
|
|
|
1,844,785
|
|
|
2,262
|
|
0.49
|
|
|
|
2,016,534
|
|
|
8,196
|
|
0.41
|
|
|
|
1,794,472
|
|
|
10,110
|
|
0.56
|
|
Demand deposits (noninterest-bearing)
|
|
|
433,944
|
|
|
|
|
|
|
431,438
|
|
|
|
|
|
|
448,799
|
|
|
|
|
|
|
434,753
|
|
|
|
|
|
|
420,181
|
|
|
|
|
Sources to fund earning assets
|
|
|
2,520,156
|
|
|
2,074
|
|
0.33
|
|
|
|
2,463,200
|
|
|
1,999
|
|
0.32
|
|
|
|
2,293,584
|
|
|
2,262
|
|
0.39
|
|
|
|
2,451,287
|
|
|
8,196
|
|
0.33
|
|
|
|
2,214,653
|
|
|
10,110
|
|
0.46
|
|
Noninterest-bearing funds (net)
|
|
|
136,772
|
|
|
|
|
|
|
122,075
|
|
|
|
|
|
|
86,284
|
|
|
|
|
|
|
121,826
|
|
|
|
|
|
|
92,325
|
|
|
|
|
Total sources to fund earning assets
|
|
$
|
2,656,928
|
|
$
|
2,074
|
|
0.31
|
%
|
|
$
|
2,585,275
|
|
$
|
1,999
|
|
0.31
|
%
|
|
$
|
2,379,868
|
|
$
|
2,262
|
|
0.38
|
%
|
|
$
|
2,573,113
|
|
$
|
8,196
|
|
0.32
|
%
|
|
$
|
2,306,978
|
|
$
|
10,110
|
|
0.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin on a tax-equivalent basis
|
|
|
|
$
|
23,907
|
|
3.55
|
%
|
|
|
|
$
|
23,456
|
|
3.58
|
%
|
|
|
|
$
|
22,436
|
|
3.71
|
%
|
|
|
|
$
|
93,483
|
|
3.60
|
%
|
|
|
|
$
|
89,394
|
|
3.83
|
%
|
Tax-exempt adjustment
|
|
|
|
|
578
|
|
|
|
|
|
|
589
|
|
|
|
|
|
|
602
|
|
|
|
|
|
|
2,353
|
|
|
|
|
|
|
2,196
|
|
|
Net interest income and margin
|
|
|
|
$
|
23,329
|
|
3.46
|
%
|
|
|
|
$
|
22,867
|
|
3.49
|
%
|
|
|
|
$
|
21,834
|
|
3.62
|
%
|
|
|
|
$
|
91,130
|
|
3.51
|
%
|
|
|
|
$
|
87,198
|
|
3.74
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
46,666
|
|
|
|
|
|
$
|
50,839
|
|
|
|
|
|
$
|
68,727
|
|
|
|
|
|
$
|
47,800
|
|
|
|
|
|
$
|
52,825
|
|
|
|
|
Other assets
|
|
|
68,529
|
|
|
|
|
|
|
71,101
|
|
|
|
|
|
|
92,832
|
|
|
|
|
|
|
80,409
|
|
|
|
|
|
|
97,580
|
|
|
|
|
Total assets
|
|
|
2,772,123
|
|
|
|
|
|
|
2,707,215
|
|
|
|
|
|
|
2,541,427
|
|
|
|
|
|
|
2,701,322
|
|
|
|
|
|
|
2,457,383
|
|
|
|
|
Other liabilities
|
|
|
18,331
|
|
|
|
|
|
|
16,157
|
|
|
|
|
|
|
14,504
|
|
|
|
|
|
|
17,006
|
|
|
|
|
|
|
13,958
|
|
|
|
|
Stockholders' equity
|
|
|
233,636
|
|
|
|
|
|
|
227,858
|
|
|
|
|
|
|
233,339
|
|
|
|
|
|
|
233,029
|
|
|
|
|
|
|
228,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro Bancorp, Inc. and Subsidiaries
|
|
|
Summary of Allowance for Loan Losses and Other Related Data
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
(dollars in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
27,425
|
|
|
$
|
25,596
|
|
|
$
|
25,282
|
|
|
$
|
21,620
|
|
Provisions charged to operating expenses
|
|
|
1,575
|
|
|
|
2,150
|
|
|
|
6,875
|
|
|
|
10,100
|
|
|
|
|
29,000
|
|
|
|
27,746
|
|
|
|
32,157
|
|
|
|
31,720
|
|
Recoveries of loans previously charged-off:
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
177
|
|
|
|
11
|
|
|
|
1,122
|
|
|
|
227
|
|
Commercial tax-exempt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Owner occupied real estate
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
7
|
|
Commercial construction and land development
|
|
|
13
|
|
|
|
3
|
|
|
|
490
|
|
|
|
517
|
|
Commercial real estate
|
|
|
—
|
|
|
|
12
|
|
|
|
—
|
|
|
|
97
|
|
Residential
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
|
4
|
|
Consumer
|
|
|
7
|
|
|
|
2
|
|
|
|
76
|
|
|
|
67
|
|
Total recoveries
|
|
|
197
|
|
|
|
28
|
|
|
|
1,701
|
|
|
|
919
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(701
|
)
|
|
|
(1,354
|
)
|
|
|
(3,427
|
)
|
|
|
(2,302
|
)
|
Commercial tax-exempt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Owner occupied real estate
|
|
|
(25
|
)
|
|
|
(680
|
)
|
|
|
(295
|
)
|
|
|
(772
|
)
|
Commercial construction and land development
|
|
|
(2,552
|
)
|
|
|
(155
|
)
|
|
|
(2,844
|
)
|
|
|
(1,378
|
)
|
Commercial real estate
|
|
|
(2,441
|
)
|
|
|
(2
|
)
|
|
|
(2,773
|
)
|
|
|
(1,853
|
)
|
Residential
|
|
|
(166
|
)
|
|
|
(45
|
)
|
|
|
(332
|
)
|
|
|
(308
|
)
|
Consumer
|
|
|
(202
|
)
|
|
|
(256
|
)
|
|
|
(1,077
|
)
|
|
|
(744
|
)
|
Total charged-off
|
|
|
(6,087
|
)
|
|
|
(2,492
|
)
|
|
|
(10,748
|
)
|
|
|
(7,357
|
)
|
Net charge-offs
|
|
|
(5,890
|
)
|
|
|
(2,464
|
)
|
|
|
(9,047
|
)
|
|
|
(6,438
|
)
|
Balance at end of period
|
|
$
|
23,110
|
|
|
$
|
25,282
|
|
|
$
|
23,110
|
|
|
$
|
25,282
|
|
Net charge-offs (annualized) as a percentage of average loans
outstanding
|
|
|
1.35
|
%
|
|
|
0.65
|
%
|
|
|
0.55
|
%
|
|
|
0.44
|
%
|
Allowance for loan losses as a percentage of period-end loans
|
|
|
1.32
|
%
|
|
|
1.65
|
%
|
|
|
1.32
|
%
|
|
|
1.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro Bancorp, Inc. and Subsidiaries
|
Summary of Nonperforming Loans and Assets
|
(Unaudited)
|
|
The following table presents information regarding nonperforming
loans and assets as of December 31, 2013 and for the preceding four
quarters (dollar amounts in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
|
2012
|
Nonperforming Assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
10,217
|
|
|
$
|
9,967
|
|
|
$
|
12,053
|
|
|
$
|
12,451
|
|
|
$
|
11,289
|
|
Commercial tax-exempt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Owner occupied real estate
|
|
|
4,838
|
|
|
|
4,924
|
|
|
|
4,999
|
|
|
|
3,428
|
|
|
|
3,119
|
|
Commercial construction and land development
|
|
|
8,587
|
|
|
|
11,723
|
|
|
|
12,027
|
|
|
|
12,024
|
|
|
|
6,300
|
|
Commercial real estate
|
|
|
6,705
|
|
|
|
6,904
|
|
|
|
3,893
|
|
|
|
5,575
|
|
|
|
5,659
|
|
Residential
|
|
|
7,039
|
|
|
|
7,316
|
|
|
|
7,133
|
|
|
|
3,295
|
|
|
|
3,203
|
|
Consumer
|
|
|
2,577
|
|
|
|
2,541
|
|
|
|
3,422
|
|
|
|
2,517
|
|
|
|
2,846
|
|
Total nonaccrual loans
|
|
|
39,963
|
|
|
|
43,375
|
|
|
|
43,527
|
|
|
|
39,290
|
|
|
|
32,416
|
|
Loans past due 90 days or more and still accruing
|
|
|
369
|
|
|
|
119
|
|
|
|
—
|
|
|
|
1,726
|
|
|
|
220
|
|
Total nonperforming loans
|
|
|
40,332
|
|
|
|
43,494
|
|
|
|
43,527
|
|
|
|
41,016
|
|
|
|
32,636
|
|
Foreclosed assets
|
|
|
4,477
|
|
|
|
3,556
|
|
|
|
4,611
|
|
|
|
2,675
|
|
|
|
2,467
|
|
Total nonperforming assets
|
|
$
|
44,809
|
|
|
$
|
47,050
|
|
|
$
|
48,138
|
|
|
$
|
43,691
|
|
|
$
|
35,103
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings (TDRs)
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing TDRs
|
|
$
|
17,149
|
|
|
$
|
23,621
|
|
|
$
|
18,817
|
|
|
$
|
18,927
|
|
|
$
|
13,247
|
|
Accruing TDRs
|
|
|
12,091
|
|
|
|
11,078
|
|
|
|
14,888
|
|
|
|
14,308
|
|
|
|
19,559
|
|
Total TDRs
|
|
$
|
29,240
|
|
|
$
|
34,699
|
|
|
$
|
33,705
|
|
|
$
|
33,235
|
|
|
$
|
32,806
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans
|
|
|
2.30
|
%
|
|
|
2.55
|
%
|
|
|
2.66
|
%
|
|
|
2.61
|
%
|
|
|
2.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
|
|
|
1.61
|
%
|
|
|
1.71
|
%
|
|
|
1.81
|
%
|
|
|
1.67
|
%
|
|
|
1.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loan coverage
|
|
|
57
|
%
|
|
|
63
|
%
|
|
|
64
|
%
|
|
|
67
|
%
|
|
|
77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a percentage of total period-end loans
|
|
|
1.32
|
%
|
|
|
1.61
|
%
|
|
|
1.72
|
%
|
|
|
1.74
|
%
|
|
|
1.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets / capital plus allowance for loan losses
|
|
|
18
|
%
|
|
|
18
|
%
|
|
|
19
|
%
|
|
|
17
|
%
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2014