Metro Phoenix Bank Reports Earnings of $1,904,000, or $0.51 per Diluted Share in 1Q 2022 While Maintaining Efficiency Ratio of 44.26%; Asset Quality Remains Strong as Non-Performing Asset Ratio is 0.02%
04/21/2022 - 10:07 AM
PHOENIX April 21, 2022 March 31, 2022 of $1,904,000 $0.51 $1,951,000 $0.52 19.98% from $1,587,000
Stephen P. Haggard , Bank President and Chief Executive Officer stated, "We are pleased with a year-over-year top line revenue increase of 12.88% and the continuation of strong earnings, however, we have some work to do in deploying excess liquidity. Although the Bank continues to realize robust commercial loan originations, large dollars payoffs (both planned and unplanned) have been on the uptick given aggressive rate refinance activity and accelerated asset sale activity. Unfortunately, the combination of large loan payoffs and strong deposit growth has squeezed our net interest margin in the first quarter. To stem this downward pressure, we will implement strategies to elevate our loan-to-deposit ratio back up above the 80% level, which is our target to achieve optimal performance. With our team of seasoned lenders, commercial loan product offerings and favorable market conditions in Phoenix , I am confident that we will continue to see our fair share of new loan opportunities throughout 2022. However, we do expect some headwinds as it relates to inflation, labor shortages and rising interest rates. It will be our job to identify and underwrite the credits that will perform best with the expected macro-economic challenges. If this means more emphasis on SBA and USDA credit enhancements, we will be ready to pivot quickly. Our SBA team is equipped to take on more demand if necessary."
First Quarter 2022 Highlights
Net Income for the quarter was $1,904,000 $0.51 ROA of 1.73% for the quarter; ROE of 17.10% for the quarter; NIM of 3.39% for the quarter, with the cost of funds at 0.28% ; SBA Gains on Sale of $775,000 Provision Expense of $0 Efficiency Ratio of 44.26% for the quarter. Loan growth (net of PPP) of a negative 3.70% for the quarter. Deposit growth of 10.34% for the quarter. Non-Performing Asset Ratio is stable at 0.02% , nominal change from the linked quarter. Balance Sheet
Total assets grew by 10.04% to $452.8 million March 31, 2022 and increased 20.33% compared to $376.3 million 3.70% to $276.1 million March 31, 2022 and increased 9.09% compared to $253.1 million 10.34% to $402.3 million March 31, 2022 and increased 21.03% compared to $332.4 million
The allowance for loan losses totaled $3.77 5 millionMarch 31, 2022 , or 1.35% of total loans. Excluding the PPP loan balance of $4.3 million 1.37% of total loans. No material changes have occurred in the reported credit quality of the loan portfolio since the preceding quarter.
Shareholders' equity increased to $46.24 million March 31, 2022 , from $43.38 million 14.83% compared to $40.27 million March 31, 2022 , book value and tangible book value were $12.76 $12.42 December 31, 2021 and $11.56
Capital Management The Bank's capital ratio exceeded the regulatory guidelines established under Section 201 of the Economic Regulatory Relief and Consumer Protection Act. Effective January 2020 , community banks are tested for capital health based on a single capital ratio, the Community Bank Leverage Ratio (CBLR). The Bank reported the following capital ratio:
Bank
Regulatory
Community Bank Leverage Ratio
10.33%
9.00%
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 a variety of services ranging from Commercial Real Estate Lending, Outdoor Media Lending, SBA financing solutions, and a robust treasury management platform that includes a Homeowners Association (HOA)/Property Management specialty program. The bank holding company (MPB BHC, INC.) 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 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. 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 Three months
ended March 31,
ended March 31,
Year-End
2022
2021
2022
2021
2021
Summary Income Data
Interest Income
3,896
3,653
3,896
3,653
15,780
Interest expense
302
265
302
265
1,150
Net Interest Income
3,594
3,388
3,594
3,388
14,630
Provision for (reduction in) loan losses
-
250
-
250
250
Provision for (reduction in) unfunded commitments
-
-
-
-
-
Non-interest income
1,011
694
1,011
694
3,220
Non-interest expense
2,038
1,687
2,038
1,687
8,163
Realized gains (losses) on sales of securities
-
-
-
-
-
Income (loss) before income taxes
2,567
2,145
2,567
2,145
9,437
Provision for income tax
663
558
663
558
2,268
Net Income
1,904
1,587
1,904
1,587
7,169
Per Share Data
Shares outstanding end-of-period
3,623
3,483
3,623
3,483
3,492
Earnings per common share
0.53
0.46
0.53
0.46
2.05
Earnings per common share (Diluted)
0.51
0.42
0.51
0.42
1.90
Cash dividend declared per share
-
-
-
-
0.73
Total shareholders' equity
46,238
40,274
46,238
40,274
43,380
Book value per share
12.76
11.56
12.76
11.56
12.42
Selected Balance Sheet Data
Total assets
452,777
376,288
452,777
376,288
411,548
Securities available-for-sale
159
433
159
433
160
Loans
280,350
287,283
280,350
287,283
293,132
Allowance for loan losses
3,775
3,723
3,775
3,723
3,775
Deposits
402,342
332,423
402,342
332,423
364,613
Other borrowings
3,100
3,100
3,100
3,100
3,100
Shareholders' equity
46,238
40,274
46,238
40,274
43,380
Performance Ratios
Return on average shareholders' equity (annualized) (%)
17.10%
16.27%
17.10%
16.27%
17.57%
Net interest margin (%)
3.39%
4.37%
3.39%
4.37%
4.01%
Cost of Funds
0.28%
0.31%
0.28%
0.31%
0.28%
Average assets
445,928
354,110
445,928
354,110
394,346
Return on average assets (annualized) (%)
1.73%
1.82%
1.73%
1.82%
1.82%
Shareholders' equity to assets (%)
10.21%
10.70%
10.21%
10.70%
10.54%
Efficiency ratio (%)
44.26%
41.33%
44.26%
41.33%
45.73%
Asset Quality Data
Nonaccrual loans
103
-
103
-
-
Troubled debt restructurings
-
-
-
-
-
Other real estate
-
-
-
-
-
Nonperforming assets
103
-
103
-
-
Nonperforming assets to total assets (%)
0.02%
0.00%
0.02%
0.00%
0.00%
Nonperforming loans to total loans (%)
0.04%
0.00%
0.04%
0.00%
0.00%
Reserve for loan losses to total loans (%)
1.35%
1.30%
1.35%
1.30%
1.29%
Reserve for loan losses to nonperforming loans (%)
3680.24%
0.00%
3680.24%
0.00%
0.00%
Reserve for loan losses to nonperforming assets (%)
3680.24%
0.00%
3680.24%
0.00%
0.00%
Net charge-offs for period
-
2
-
2
(50)
Average loans
282,613
284,998
282,613
284,998
286,853
Ratio of charge-offs to average loans (%)
0.000%
0.00%
0.000%
0.00%
-0.02%
Regulatory Capital Ratios
Community Bank Leverage Ratio
10.33%
11.63%
10.33%
11.63%
10.32%
Tier 1 leverage capital ratio (%)
N/A
N/A
N/A
N/A
N/A
Common Equity Tier 1 (%)
N/A
N/A
N/A
N/A
N/A
Tier 1 risk-based capital ratio (%)
N/A
N/A
N/A
N/A
N/A
Total risk-based capital ratio (%)
N/A
N/A
N/A
N/A
N/A
Contact:
Stephen P. Haggard
President & CEO
602-346-1800
shaggard@metrophoenixbank.com
SOURCE Metro Phoenix Bank
https://www.prnewswire.com/news-releases/metro-phoenix-bank-reports-earnings-of-1-904-000--or-0-51-per-diluted-share-in-1q-2022-while-maintaining-efficiency-ratio-of-44-26-asset-quality-remains-strong-as-non-performing-asset-ratio-is-0-02-301529810.html
SOURCE Metro Phoenix Bank
