PHOENIX, July 16, 2021 / PRNewswire / – MPB BHC, INC. (OTCPink: MPHX), the holding company of Metro Phoenix Bank (“Bank”), announced net income for the quarter ended June 30, 2021 of $ 1,703,000, or $ 0.45 per diluted share versus US $ 1,587,000 For the first quarter of 2021, net income increased 21.47% from $ 1,402,000 for the second quarter of 2020. Metro Phoenix Bank earnings in the second quarter reflect the positive impact a fully financed risk provision for loans and leasing losses and no additional provision expenses in the period. Stephen P. Haggard, President and Chief Executive Officer of the bank, stated, “After the close of the second quarter, we have concluded that our loan portfolio has withstood the worst of the pandemic customer operations expected in mid-2020 systemic erosion of asset quality has never occurred and we do not currently expect this scenario to occur. Our credit risk reserves are robust, our credit performance has been strong and our clients’ cash flow position appears to be improving quarter by quarter, which is what gives us overall confidence in our overall quality of assets post COVID-19. “While we have been closely monitoring the quality of the balance sheet assets this year, we haven’t ignored the initiatives we have taken on the liabilities side of the balance sheet. We have set very aggressive core deposit growth targets in 2021 and the team did not disappoint in the first half of the year. The deposit growth rate of just under 25% year-to-date was essentially all of the core growth within our defined verticals, but more impressive is the DDA and NOW account annual growth rate of 37.50% and now equates to just over 41% of total banks’ deposits . “Our credit pipeline has remained healthy across all lines of business, with SBA demand coming first. SBA lending has been extremely strong for six months to 2021 and based on existing indicators, we expect it to continue through the end of the year Right now, 2021 could be a record year for our SBA team. ”“ Round 1 of PPP loans has almost paid off, less than $ 1,000,000 outstanding, and we are in the process of lending round 2 of PPP clients the bank has only one loan in modification due to COVID-19 related cash flow stress, overall we are very pleased with the success rate achieved with the PPP program and efforts to modify the COVID-19 loans. ” Second Quarter 2021 Highlights Net income for the quarter was $ 1,703,000, or $ 0.45 per diluted share – ROA of 1.75% for quarterly ROE of 16.80% for quarterly NIM of 4.09% for the quarter, with fund costs declining to 0.29%, relatively unchanged compared to the linked quarter’s fund cost of 0.31% of the quarter Provision expense of $ 0 for the quarter Efficiency rate of 44.97% for the quarterly loan growth (net PPP) of 7.09% for the quarter Deposit growth of 5.84% for the quarter The non-performing assets ratio is negligible at 0.01%, no change compared to the linked quarter Balance sheet total The balance sheet total rose by 5.09% to 395, $ 4 million as of June 30, 2021, up 22.11% from $ 323.8 million last year. Total Loans increased 0.99% to $ 290.1 million as of June 30, 2021 and I was up 18.36% from $ 245.1 million last year. Excluding $ 19.1 million PPP loans, loans were up 33.35% year over year. Total deposits increased 5.84% to $ 351.8 million as of June 30, 2021 and increased 24.49% from $ 282.6 million the previous year. Loan loss provisions as of June 30, 2021 were $ 3.775 million, or 1.30% of total loans. Excluding the $ 19.1 million PPP loan balance, an adjusted loan loss provision is 1.40% of total loans. There have been no significant changes in the reported credit quality of the loan portfolio compared to the previous quarter. After paying a dividend of $ 2.53 million, equity as of June 30, 2021 decreased from $ 40.27 million in the previous quarter to $ 39.44 million, up 10.29% from $ 35.76 million Dollars in the previous year. As of June 30, 2021, the book value and tangible book value were $ 11.32 per share, compared to $ 11.56 per share on March 31, 2021 and $ 10.27 per share a year ago. Capital management The bank’s equity ratio exceeded the regulatory requirements of Section 201 of the Economic Relief and Consumer Protection Act. From January 2020, community banks will be tested for their capital adequacy on the basis of a single equity ratio, the Community Bank Leverage Ratio (CBLR). The bank reported the following equity ratio: Regulatory Equity Ratios Bank 6/30/21 Minimum Regulatory Requirement Community Bank Leverage Ratio 10.07% 8.50% About Metro Phoenix Bank, Inc., founded in 2007 and headquartered in Phoenix, Arizona, is a Full-service community bank aimed at 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 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. Further information is available at: www.metrophoenixbank.com. Forward-Looking Statements This press release may contain 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. These risks and uncertainties include but are not limited to the following factors: competition, fluctuations in interest rates, dependency on key people, loan defaults, geographic concentration, litigation, and changes in federal laws, regulations and their interpretations. All forward-looking statements contained in this press release are based on information available at the time of publication. Metro Phoenix Bank assumes no obligation to update forward-looking statements. Unaudited Financial Summary Information (in thousands of dollars, other than data per share or otherwise stated) For the three months For the six months ended June 30 through June 30 end of year 2021 2020 2021 2020 2020 Earnings Summary Interest Income 3,856 4,288 7,509 7,505 14,568 Interest expense 281 314 546 770 1,351 Net interest income 3,575 3,974 6,963 6,735 13,217 Provision (reduction) of loan defaults – 700 250 1,150 1,600 Provision (reduction) of unsecured obligations – – – – – Non-interest income 608 315 1,301 640 1,800 Non-interest expenses 1,881 1,694 3,567 3,340 6,797 Realized profits (Losses) from sales of securities – – – – – Earnings before income taxes 2,302 1,895 4,447 2,885 6,620 Provision for income taxes 599 493 1,156 750 1,581 Net income for the year 1,703 1,402 3,291 2,135 5,039 Data per share Outstanding shares at the end of the period 3,483 3,481 3,483 3,481 3,481 Earnings per ordinary share 0 .49 0.40 0.94 0.61 1.45 earnings per ordinary file ie (diluted) 0.45 0.37 0.87 0.57 1.34 Cash dividend d reported 0.725 – 0.725 – – Total equity 39,445 35,757 39,445 35,757 38,662 Book value per share 11.32 10.27 11.32 10.27 11 , 11 Selected balance sheet data Total assets 395,430 323,824 395,430 323,824 326,012 Available-for-sale securities 271 527 271 527 46 119 29 024,290 290 245,118 279,730 Risk provisions in the lending business 3,775 3,025 3,775 3,025 3,475 Deposits 351,824 3,157,400 3,157 (Equity) 16.80% average return on equity (equity) 16.80% 16.56% 12.38% 13.71% Net interest margin (%) 4.09% 5.36% 4.21% 4.92% 4, 53% Fund costs 0.29% 0.41% 0.29% 0.55% 0.34% Average assets 390,642 306,876 373,107 284,885 305,070 Return on average assets (annualized) (%) 1.75% 1.84 % 1.78% 1.51% 1.65% equity to assets (%) 9.98% 11.04% 9 , 98% 11.04% 11.86% Efficiency rate (%) 44.97% 39.50% 43.16% 45.29% 45.26% Asset Quality Dat a Passive receivables 20 – 20 – – Debt rescheduling – 6 – 6 2 Other real estate – – – – – Non-performing assets 20 – 20 – – Non-performing assets to total assets (%) 0.01% 0.00% 0.01% 0.00% 0.00% Non-performing loans to total loans (% ) 0.01% 0.00% 0.01% 0.00% 0.00% Provision for loan defaults on total loans (%) 1.30% 1.23% 1.30% 1.23% 1.24% provision for credit losses on non-performing loans (%) 18,875% 0.00% 18,875% 0.00% 0.00% provision for loan losses on non-performing assets (%) 18,875% 0.00% 18,875% 0.00% 0.00% net write-offs for period – – – – – Average loans 285,599 225,277 285,515 202,047 228,872 Write-off rate to average loans (%) 0.00% 0.00% 0.00% 0.00% 0.00% Regulatory capital ratios Community Bank Leverage Ratio 10.07 % 11.65% 10.07% 11.65% 11.84% Tier 1 Leverage Capital Ratio (%) N / AN / AN / AN / AN / A Hard core capital al (%) N / AN / AN / AN / AN / A Risk-based tier 1 capital ratio (%) N / AN / AN / AN / AN / A Risk-based total capital ratio (%) N / AN / AN / AN / AN / A SOURCE Metro Phoenix Bank Related links h ttp: //www.metrophoenixbank.com
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