Metro Phoenix Bank Reports Earnings of $1,009,000, or $0.27 per Diluted Share in 3Q 2019 and Efficiency Ratio of 56.90%

PHOENIX, Oct. 30, 2019 /PRNewswire/ -- Metro Phoenix Bank (OTCPink:MPHX)("Bank") announced net income for quarter ending September 30, 2019 increased 15.05% to $1,009,000, or $0.27 per diluted share, from $877,000, or $0.23 per diluted share in the second quarter of 2019.  Net income increased 23.35% from $818,000 in the third quarter of 2018.  On a per share basis, net income increased 22.73% to $0.27 per diluted share from $0.22 per diluted share in the third quarter of 2018.

Stephen P. Haggard, Bank President and Chief Executive Officer stated, "Third quarter 2019 generated results that are a continuation of the positive financial trends that Metro Phoenix Bank has experienced over the past several years.  The Bank continues to see strong loan demand as supported by the record number of loan closings for the Bank in the third quarter of 2019.  As one of the most tenured community banks in Phoenix, we are very fortunate to pair the MPB brand with one of the top performing metropolitan markets in the nation.  And, we remain optimistic that ample runway exists before Phoenix becomes a market that sees recurring speedbumps of an overheated market.  In an ironic twist, the slow and painful recovery after the 2007 recession has forced Phoenix to better diversify its commerce, or it would have continued to be exposed to the pro-cyclical nature of real estate booms and busts.  Population growth, job growth, wage growth, economic diversity and affordability are all attributes that remain on the plus side of our overall economic health.  We acknowledge that the market is very strong; however, the Bank's success is also due in part to its ability to execute its strategic plan which focuses on traditional commercial bank lines and scalable specialty programs."

Third Quarter 2019 Highlights

• Net Income for the quarter was $1,009,000, or $0.27 per diluted share.
• ROA of 1.80% for the quarter;
• ROE of 11.99% for the quarter;
• NIM of 5.02% for the quarter, with the cost of funds increasing slightly to 0.81% when compared to the cumulative 2019 cost of funds of 0.79%.
• SBA Gains on Sale of $92,000 for the quarter.
• Provision Expense of $50,000 for the quarter.
• Efficiency Ratio of 56.90% for the quarter.
• Loan growth of 2.67% for the quarter.
• Deposit growth of 2.84% for the quarter.
• Non-Performing Asset Ratio is stable at 0.03%, compared to the linked quarter of 0.05%.

Balance Sheet
Total assets grew by 2.83% to $223.8 million at September 30, 2019 and increased 19.23% compared to $187.7 million a year ago.  Total loans grew by 2.67% to $179.1 million at September 30, 2019 and increased 16.45% compared to $153.8 million a year ago.  Total deposits grew by 2.84% to $186.4 million at September 30, 2019 and increased 21.20% compared to $153.8 million a year ago. 

The allowance for loan losses totaled $1.88 million at September 30, 2019, or 1.05% of total loans.  No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter. Shareholders' equity increased to $33.9 million at September 30, 2019, from $32.9 million the preceding quarter.  At September 30, 2019, book value and tangible book value were $9.87 per share compared to $9.57 per share at June 30, 2019 and $8.84 per share a year ago.

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, 2019.  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 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