Metro Phoenix Bank Reports Earnings of $818,000, or $0.22 per Diluted Share in 3Q2018 While Total Cost of Funds Remain Stable, Increasing by a Nominal 5 Basis Points

PHOENIX, Oct. 31, 2018 /PRNewswire/ -- Metro Phoenix Bank (OTCPink: MPHX) ("Bank") announced net income for quarter ending September 30, 2018 increased 12.21% to $818,000, or $0.22 per diluted share, from $729,000, or $0.19 per diluted share in the second quarter of 2018.  Net income increased 2.89% from $795,000 in the third quarter of 2017.

For the first nine months of 2018, net income increased 39.41% to $2.37 million, or $0.63 per diluted share, compared to the first nine months of 2017, which reflected net income of $1.70 million, or $0.45 per diluted share when excluding non-recurring "settlement" income.

Stephen P. Haggard, Bank President and Chief Executive Officer stated, "The third quarter results provide a preliminary indication that the Bank's cost of funds can be managed effectively as interest rates continue to rise.  Although we are always striving hard to improve the profile of the liability side of our balance sheet, we are pleased with the ability to keep our total cost of funds relatively in check and maintain our cumulative NIM above 5.00%.  This strong NIM structure has enabled our Bank to consistently generate sound core earnings over the past eight quarters even with the market's upward pressure on deposit interest rates, competitive pricing on loans and the volatility in fee income.   Our business model is based on relationship banking and although interest rates are important for every customer, they are not the only factor in securing a deal."

Third Quarter 2018 Highlights:

• Net Income for the quarter was $818,000, or $0.22 per diluted share.
• ROA of 1.72% and 1.73% for the quarter and for the nine months respectively;
• ROE of 10.97% and 11.01% for the quarter and for the nine months respectively;
• NIM of 4.85% and 5.27% for the quarter and nine months, respectively, with the cost of funds increasing to 0.56% compared to the linked quarter of 0.51%.
• SBA Gains on Sale of $51,000 and $295,000 for the quarter and for the nine months, respectively.
• Provision Expense of $0 and $100,000 for the quarter and for the nine months, respectively.
• Efficiency Ratio of 55.32% and 56.84% for the quarter and for the nine months, respectively.
• Deposit growth of -3.88% and 4.67% for the quarter and for the nine months, respectively.
• Loan growth of 4.55% and 11.76% for the quarter and for the nine months, respectively.
• Non-Performing Asset Ratio is stable at 0.00%, compared to the linked quarter of 0.04%.

Balance Sheet
Total assets decreased by 2.09% to $187.7 million at September 30, 2018 and increased 12.06% compared to $167.5 million a year ago.  Total loans grew by 4.55% to $153.8 million at September 30, 2018 and increased 13.76% compared to $135.2 million a year ago. Total deposits decreased by 3.88% to $153.8 million at September 30, 2018 and increased 9.94% compared to $139.9 million a year ago. 

The allowance for loan losses totaled $1.6 million at September 30, 2018, or 1.04% of total loans.  No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders' equity increased to $30.0 million at September 30, 2018, from $29.1 million the preceding quarter.  At September 30, 2018, book value and tangible book value were $8.84 per share compared to $8.61 per share at June 30, 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 September 30, 2018.  The Bank reported the following capital ratios:

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.

SOURCE Metro Phoenix Bank

Related Links

http://www.metrophoenixbank.com

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