Metro Phoenix Bank Reports Q4 2021 Earnings of $1,951,000, or $0.52 per Diluted Share; Loan growth (net PPP) increased to 5.20% for the quarter; Asset quality remains strong as the non-performing asset ratio is 0.00%

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PHOENIX, January 26, 2022 /PRNewswire/ — MPB BHC, INC. (OTCPink:MPHX), the holding company of Metro Phoenix Bank (“Bank”), reported net income for the quarter ending December 31, 2021of $1,951,000Where $0.52 per diluted share, against $1,927,000Where $0.51 per diluted share in the third quarter of 2021. Net income increased by 52.06% compared to $1,283,000 in the fourth quarter of 2020. Metro Phoenix Bank’s fourth quarter earnings reflect the positive impact of a fully funded provision for loan and lease losses (ALLL) and strong SBA lending activity.

Stephen P. HagardChairman and Chief Executive Officer of the Bank, said, “The lending teams at Metro Phoenix Bank once again closed the year with substantial momentum across all commercial lending verticals. A combination of the very economic conditions Arizona market and a seasoned and efficient group of credit professionals have propelled the Metro Phoenix Bank “brand” into recurring conversations about banking solutions among small and medium-sized businesses and commercial real estate banking professionals. This has been a banner year for gross lending, and I’m very proud of the entire lending team at Metro Phoenix Bank.

“However, our track record of consistently delivering meaningful lending solutions to the market over the past 15 years is not only made possible by lenders, but ‘behind the scenes’ support staff, administrative staff and staff. Loyal risk management systems allow lenders to perform at a high level, and a permanent local board of directors helps guide the strategic direction of the organization while remaining engaged with the local community. of long-term banking have once again delivered their services during another chaotic year of COVID -19 disruptions.

“Based on the 16% year-on-year (net PPP) loan growth we experienced in 2021, the continuation of a robust loan pipeline, the resilience of the Bank’s credit quality and the favorable global economic outlook for Arizona in 2022, my optimism remains high for strong traditional lending opportunities in 2022.

“The remaining PPP loans are essentially not a factor in the Bank’s loan portfolio and income statement. We currently have approximately $6 million in the books and we expect our PPP portfolio to be retired soon.

“Asset quality remains unchanged and the Bank is operating with an ALLL that has a surplus, or an unallocated balance in reserves. The portfolio continues to perform well in light of the recent disruption created by the COVID-19 Omicron variant. “

Fourth Quarter 2021 Highlights

  • Net profit for the quarter was $1,951,000 Where $0.52 per diluted share.
    • ROA of 1.85% for the quarter
    • ROE of 18.21% for the quarter
  • NIM of 3.86% for the quarter, with cost of funds falling to 0.28%; relatively unchanged from the quarterly linked cost of funds of 0.30%.
  • SBA earnings on the sale of $629,996 for the quarter.
  • Provision Charge of $0 for the quarter.
  • Efficiency ratio of 45.62% for the quarter.
  • Loan growth (net PPP) of 5.20% for the quarter.
  • Deposits decreased 0.48% for the quarter.
  • The non-performing assets ratio is 0.00%, no material change from the related quarter.

Balance sheet
Total assets increased by 0.03% to reach $411.6 million at December 31, 2021 and increased by 26.26% compared to $326.0 million one year ago. Total loans increased by 2.23% to reach $293.1 million at December 31, 2021 and increased by 4.79% compared to $279.3 million one year ago. Excluding PPP loans, at the end of the fourth quarter, loans were up 5.20% from the third quarter and up 16.27% from a year ago. Total deposits decreased by 0.48% to $364.6 million at December 31, 2021 and increased by 29.38% compared to $281.8 million one year ago.

The provision for loan losses totaled $3.775 million at December 31, 2021, or 1.29% of total loans. Excluding PPP loan balance of $6.5 million, an adjusted allowance for loan losses equals 1.32% of total loans. There has been no material change in the reported credit quality of the loan portfolio since the previous quarter.

Equity increased to $43.38 million at December 31, 2021from $41.37 million previous quarter and increased by 12.21% compared to $38.66 million one year ago. AT December 31, 2021book value and tangible book value have been $12.42 per share compared to $11.88 per share as of September 30, 2021 and $11.11 per share a year ago.

capital management
The Bank’s capital ratio exceeded the regulatory guidelines established under Section 201 of the Economic Regulation Relief and Consumer Protection Act. Effective January 2020, community banks are tested for capital health based on a unique capital ratio, the community banking leverage ratio (CBLR). The Bank has declared the following capital ratio:

Regulatory capital ratio

Bank

12/31/21

Regulatory

Minimum required

Community bank leverage ratio

10.32%

8.50%

About the company
Metro Phoenix Bank, Inc., established in 2007 and headquartered in Phoenix, Arizona, is a full-service community bank catering to small and medium-sized businesses and real estate professionals. MPB offers commercial clients a variety of services ranging from commercial real estate loans, outdoor media loans, SBA financing solutions and a robust cash management platform that includes a specialized property management/homeowners association program ( HOA). Bank Holding Company (MPB BHC, INC.) is traded over-the-counter as MPHX. For more information visit: www.metrophoenixbank.com.

Forward-looking statements
This press release may contain forward-looking statements regarding 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. These risks and uncertainties include, but are not limited to, the following factors: competition, interest rate fluctuations, dependence on key individuals, payment defaults, geographic concentration, litigation and changes in federal laws, regulations and interpretations. All forward-looking statements included in this press release are based on information available at the time of publication. Metro Phoenix Bank assumes no obligation to update any forward-looking statements.

Summary unaudited financial information

(in thousands of dollars, unless per share data or otherwise indicated)














For the three months


For the twelve months





ended on December 31,


ended on December 31,


End of the year



2021


2020


2021


2020


2020

Income summary data











interest income


4,231


3,607


15,780


14,568


14,568

Interest expense


295


277


1,150


1,351


1,351

Net interest income


3,936


3,330


14,630


13,217


13,217

Allowance for (reduction of) loan losses



250


250


1,600


1,600

Provision for (reduction) of unfunded obligations






Non-interest income


851


321


3,220


1,800


1,800

Non-interest charges


2,184


1,721


8,163


6,797


6,797

Gains (losses) realized on sales of securities






Profit (loss) before income taxes


2,603


1,680


9,437


6,620


6,620

Provision for income tax


652


397


2,268


1,581


1,581

Net revenue


1,951


1,283


7,169


5,039


5,039












Data per share











Shares outstanding at the end of the period


3,492


3,481


3,492


3,481


3,481

Earnings per common share


0.56


0.37


2.05


1.45


1.45

Earnings per common share (diluted)


0.52


0.34


1.90


1.34


1.34

Cash dividend declared




0.725



Total equity


43,380


38,662


43,380


38,662


38,662

Book value per share


12:42 p.m.


11.11


12:42 p.m.


11.11


11.11












Selected balance sheet data











Total assets


411 548


326,012


411 548


326,012


326,012

Titles available for sale


160


436


160


436


436

Loans


293 132


279,730


293 132


279,730


279,730

Allowance for loan losses


3,775


3,475


3,775


3,475


3,475

Deposits


364,613


281,827


364,613


281,827


281,827

Other loans


3,100


3,100


3,100


3,100


3,100

Equity


43,380


38,662


43,380


38,662


38,662












Performance reports











Return on average equity (annualised) (%)


18.21%


13.38%


17.57%


13.71%


13.71%

Net interest margin (%)


3.86%


4.31%


4.01%


4.53%


4.53%

Cost of funds


0.28%


0.34%


0.28%


0.34%


0.34%

Average asset


418,597


326 436


394 346


305,070


305,070

Return on average assets (annualized) (%)


1.85%


1.56%


1.82%


1.65%


1.65%

Equity/Assets (%)


10.54%


11.86%


10.54%


11.86%


11.86%

Efficiency rate (%)


45.62%


47.14%


45.73%


45.26%


45.26%












Asset quality data











Unaccrued loans






Distressed Debt Restructurings



2



2


2

Other real estate






Non-performing assets






Non-performing assets to total assets (%)


0.00%


0.00%


0.00%


0.00%


0.00%

Non-performing loans to total loans (%)


0.00%


0.00%


0.00%


0.00%


0.00%

Reserve for loan losses/total loans (%)


1.29%


1.24%


1.29%


1.24%


1.24%

Reserve for loan losses to non-performing loans (%)


0.00%


0.00%


0.00%


0.00%


0.00%

Reserve for loan losses to non-performing assets (%)


0.00%


0.00%


0.00%


0.00%


0.00%

Net charges for the period


(20)



(50)



Average loans


288,772


266,861


286,853


228,872


228,872

Ratio of write-offs to average loans (%)


-0.01%


0.00%


-0.02%


0.00%


0.00%












Regulatory capital ratios











Community Bank Leverage Ratio (CBLR)


10.32%


11.84%


10.32%


11.84%


11.84%

Tier 1 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

Capital ratio based on Tier 1 risk (%)


N / A


N / A


N / A


N / A


N / A

Capital ratio based on total risk (%)


N / A


N / A


N / A


N / A


N / A

SOURCE Metro Phoenix Bank

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