Metropolitan Financial Corp. Reports First Quarter Loss

Apr 27, 2001, 01:00 ET from Metropolitan Financial Corp.

    HIGHLAND HILLS, Ohio, April 27 /PRNewswire/ -- Metropolitan Financial
 Corp. (Nasdaq:   METF) parent company of Metropolitan Bank and Trust Company,
 today reported a loss for the quarter ended March 31, 2001 of $423,000 or
 $0.05 per common share compared to net income of $607,000 or $0.08 per common
 share for the first quarter of 2000.
     The loss was primarily due to a decrease in net interest income caused by
 a narrower interest rate spread as compared to one year ago. Additionally,
 increased costs associated with a complete systems conversion and a move to a
 new headquarters building contributed to the loss.
     "Metropolitan will continue to build upon its value by strategically
 expanding its retail franchise in key markets over the next several years, as
 well as improving our deposit mix," said Chairman and CEO Robert M. Kaye.
 "The real value of a community bank is measured by its retail franchise and
 its ratio of core deposits to loans.  We will continue our growth strategies
 in both of these key areas," he added.
     Despite posting these lower earnings, Metropolitan has achieved
 significant growth in its various business units, including:
 
     *  A 33% increase in the gain on sale of mortgage loans in March of 2001
        over the same period one year ago;
 
     *  opening record levels of new checking accounts in March and April of
        2001, continuing a strong trend from the prior year;
 
     *  an increase in  branch consumer loan volume by more than 24%;
 
     *  realized a 43% increase in assets under administration from one year
        ago in the trust and financial services division, particularly
        noteworthy with the downturn of the stock market; and,
 
     *  the Bank's move to a POD (proof of deposit) environment as well as
        bringing item processing in-house has resulted in faster service at the
        branches and more up-to-date customer statements.
 
     Metropolitan Financial Corp. is a unitary thrift holding company
 headquartered in Highland Hills, Ohio. Metropolitan Bank and Trust Company
 operates 24 full-service retail offices in northeastern Ohio and maintains
 nine loan origination offices throughout Ohio and western Pennsylvania.  To
 find out more about Metropolitan's products and services visit
 www.benicetoyourmoney.com .
 
 
 
                          Metropolitan Financial Corp.
                               Comparative Summary
                  (Dollars in thousands, except per share data)
 
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     Net interest income                           $9,089            $9,643
     Provision for loan losses                      1,055             1,500
     Net interest income after provision            8,034             8,143
     Noninterest income                             2,420             2,115
     Noninterest expense                           11,218             9,359
     Income (loss) before federal income
      taxes                                          (764)              899
     Provision (benefit) for income taxes            (341)              292
     Net income (loss)                               (423)              607
 
     Per Share Data(a):
       Basic and diluted net income                 (0.05)             0.08
       Book value                                    5.93              5.44
       Tangible book value                           5.60              5.15
       Stock price                                   4.00              3.75
 
     Performance ratios:
       Return on average assets                     (0.10)%            0.15 %
       Return on average equity                     (3.47)             5.47
       Interest rate spread                          2.03              2.28
       Net interest margin                           2.33              2.54
       Average interest-earning assets to
        average interest-bearing
        liabilities                                102.94            103.14
       Noninterest expense to average
        assets                                       2.68              2.35
       Efficiency ratio                            100.37             81.34
 
     (a) Common shares outstanding at March 31, 2001 and 2000 were 8,107,208
         and 8,072,777 respectively.  Weighted average common shares
         outstanding for the quarter ended 2001 and 2000 were 8,103,437
         and 8,068,467, respectively.
 
                                             March 31, 2001    Dec. 31, 2000
     Financial condition at:
       Total assets                            $1,705,672        $1,695,279
       Loans receivable, net                    1,294,031         1,286,823
       Securities                                  45,085            54,886
       Mortgage-backed securities
        available for sale                        202,197           195,829
       Loan servicing rights, net                  20,986            20,597
       Deposits                                 1,159,610         1,146,267
       Borrowings                                 422,428           426,079
       Trust Preferred Securities                  43,750            43,750
       Shareholders' equity                        48,063            49,459
 
     Asset quality ratios:
       Nonperforming loans to total loans (b)        1.58 %            1.15 %
       Nonperforming assets to total
        assets (b)                                   1.43              1.12
       Allowance for losses on loans to
        total loans(b)                               1.11              1.07
       Net charge-offs to average loans              0.16              0.27
 
     Capital ratios:
       Shareholders' equity to total
        assets                                       2.82 %            2.92 %
       Tier 1 capital to total assets (c)            6.26              6.31
       Tier 1 capital to risk-weighted
        assets (c)                                   7.94              8.45
 
     (b) Ratios are calculated based on period end balances.
     (c) Ratios are Metropolitan Bank & Trust only.
 
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SOURCE Metropolitan Financial Corp.
    HIGHLAND HILLS, Ohio, April 27 /PRNewswire/ -- Metropolitan Financial
 Corp. (Nasdaq:   METF) parent company of Metropolitan Bank and Trust Company,
 today reported a loss for the quarter ended March 31, 2001 of $423,000 or
 $0.05 per common share compared to net income of $607,000 or $0.08 per common
 share for the first quarter of 2000.
     The loss was primarily due to a decrease in net interest income caused by
 a narrower interest rate spread as compared to one year ago. Additionally,
 increased costs associated with a complete systems conversion and a move to a
 new headquarters building contributed to the loss.
     "Metropolitan will continue to build upon its value by strategically
 expanding its retail franchise in key markets over the next several years, as
 well as improving our deposit mix," said Chairman and CEO Robert M. Kaye.
 "The real value of a community bank is measured by its retail franchise and
 its ratio of core deposits to loans.  We will continue our growth strategies
 in both of these key areas," he added.
     Despite posting these lower earnings, Metropolitan has achieved
 significant growth in its various business units, including:
 
     *  A 33% increase in the gain on sale of mortgage loans in March of 2001
        over the same period one year ago;
 
     *  opening record levels of new checking accounts in March and April of
        2001, continuing a strong trend from the prior year;
 
     *  an increase in  branch consumer loan volume by more than 24%;
 
     *  realized a 43% increase in assets under administration from one year
        ago in the trust and financial services division, particularly
        noteworthy with the downturn of the stock market; and,
 
     *  the Bank's move to a POD (proof of deposit) environment as well as
        bringing item processing in-house has resulted in faster service at the
        branches and more up-to-date customer statements.
 
     Metropolitan Financial Corp. is a unitary thrift holding company
 headquartered in Highland Hills, Ohio. Metropolitan Bank and Trust Company
 operates 24 full-service retail offices in northeastern Ohio and maintains
 nine loan origination offices throughout Ohio and western Pennsylvania.  To
 find out more about Metropolitan's products and services visit
 www.benicetoyourmoney.com .
 
 
 
                          Metropolitan Financial Corp.
                               Comparative Summary
                  (Dollars in thousands, except per share data)
 
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     Net interest income                           $9,089            $9,643
     Provision for loan losses                      1,055             1,500
     Net interest income after provision            8,034             8,143
     Noninterest income                             2,420             2,115
     Noninterest expense                           11,218             9,359
     Income (loss) before federal income
      taxes                                          (764)              899
     Provision (benefit) for income taxes            (341)              292
     Net income (loss)                               (423)              607
 
     Per Share Data(a):
       Basic and diluted net income                 (0.05)             0.08
       Book value                                    5.93              5.44
       Tangible book value                           5.60              5.15
       Stock price                                   4.00              3.75
 
     Performance ratios:
       Return on average assets                     (0.10)%            0.15 %
       Return on average equity                     (3.47)             5.47
       Interest rate spread                          2.03              2.28
       Net interest margin                           2.33              2.54
       Average interest-earning assets to
        average interest-bearing
        liabilities                                102.94            103.14
       Noninterest expense to average
        assets                                       2.68              2.35
       Efficiency ratio                            100.37             81.34
 
     (a) Common shares outstanding at March 31, 2001 and 2000 were 8,107,208
         and 8,072,777 respectively.  Weighted average common shares
         outstanding for the quarter ended 2001 and 2000 were 8,103,437
         and 8,068,467, respectively.
 
                                             March 31, 2001    Dec. 31, 2000
     Financial condition at:
       Total assets                            $1,705,672        $1,695,279
       Loans receivable, net                    1,294,031         1,286,823
       Securities                                  45,085            54,886
       Mortgage-backed securities
        available for sale                        202,197           195,829
       Loan servicing rights, net                  20,986            20,597
       Deposits                                 1,159,610         1,146,267
       Borrowings                                 422,428           426,079
       Trust Preferred Securities                  43,750            43,750
       Shareholders' equity                        48,063            49,459
 
     Asset quality ratios:
       Nonperforming loans to total loans (b)        1.58 %            1.15 %
       Nonperforming assets to total
        assets (b)                                   1.43              1.12
       Allowance for losses on loans to
        total loans(b)                               1.11              1.07
       Net charge-offs to average loans              0.16              0.27
 
     Capital ratios:
       Shareholders' equity to total
        assets                                       2.82 %            2.92 %
       Tier 1 capital to total assets (c)            6.26              6.31
       Tier 1 capital to risk-weighted
        assets (c)                                   7.94              8.45
 
     (b) Ratios are calculated based on period end balances.
     (c) Ratios are Metropolitan Bank & Trust only.
 
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 SOURCE  Metropolitan Financial Corp.