Metro Phoenix Bank Reports Earnings of $840,000, or $0.22 per Diluted Share in 4Q2018 with Total Cost of Funds Increasing by Only 5 Basis Points

PHOENIX, Jan. 30, 2019 /PRNewswire/ -- Metro Phoenix Bank (OTCPink: MPHX)("Bank") announced net income for quarter ending December 31, 2018 increased 2.69% to $840,000, or $0.22 per diluted share, from $818,000, or $0.22 per diluted share in the third quarter of 2018.  Net income increased 101.44% from $417,000 in the fourth quarter of 2017.  When excluding the deferred tax asset write-down in Q4 2017, net income increased 6.19% from an adjusted $791,000 in the fourth quarter of 2017.

For the full twelve months of 2018, the Bank reported net income of $3.21 million, or $0.85 per diluted share, compared to $2.91 million, or $0.77 per diluted share for the same period in 2017.  When excluding non-recurring "settlement" income recognized in 2017, the adjusted full year net income increased 32.10% from $2.43 million.   

Stephen P. Haggard, Bank President and Chief Executive Officer stated, "2018 has been a year characterized by consistent earnings performance for the Bank.  Three of the four quarters in 2018 reflected earnings results of $0.22 per diluted share, which can be attributed to the consistent loan demand experienced throughout the year, a stable source of core funding and the reduced reliance on volatile SBA fee income, which had historically been a larger portion of our top line revenue.  Although going into 2019 we anticipate generating more SBA activity, we are cognizant of our ability to achieve solid earnings without the benefit of SBA fee income and will therefore remain cautious as it pertains to credit quality."

Fourth Quarter 2018 Highlights:

• Net Income for the quarter was $840,000, or $0.22 per diluted share.
  
  • ROA of 1.68% and 1.72% for the quarter and for the twelve months respectively;
  • ROE of 10.90% and 11.00% for the quarter and for the twelve months respectively;
• NIM of 5.27% and 5.28% for the quarter and twelve months, respectively with the cost of funds increasing to 0.61% compared to the linked quarter of 0.56%.
• SBA Gains on Sale of $21,000 and $316,000 for the quarter and for the twelve months, respectively.
• Provision Expense of $35,000 and $135,000 for the quarter and for the twelve months, respectively.
• Efficiency Ratio of 54.44% and 56.22% for the quarter and for the twelve months, respectively.
• Loan growth of -1.11% and 10.54% for the quarter and for the twelve months, respectively.
• Deposit growth of 6.83% and 11.84% for the quarter and for the twelve months, respectively.
• Non-Performing Asset Ratio is stable at 0.05%, compared to the linked quarter of 0.00%.

Balance Sheet

Total assets grew by 6.13% to $199.2 million at December 31, 2018 and increased 13.89% compared to $174.9 million a year ago.  Total loans fell by 1.11% to $152.1 million at December 31, 2018 and increased 10.54% compared to $137.6 million a year ago. Total deposits grew by 6.83% to $164.3 million at December 31, 2018 and increased 11.84% compared to $146.9 million a year ago. 

The allowance for loan losses totaled $1.68 million at December 31, 2018, or 1.10% of total loans.  No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders' equity increased to $30.9 million at December 31, 2018, from $30.0 million the preceding quarter.  At December 31, 2018, book value and tangible book value were $9.08 per share compared to $8.84 per share at September 30, 2018 and $8.15 per share a year ago.

Visit www.metrophoenixbank.com/Investor-Relations.aspx for additional 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 December 31, 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