PHOENIX, October 14, 2021 / PRNewswire / – MPB BHC, INC. (OTCPink: MPHX), the holding company of Metro Phoenix Bank (“Bank”), announced quarterly net earnings September 30, 2021 from $ 1,927,000, or $ 0.51 per diluted share $ 1,703,000, or $ 0.45 per diluted share for the second quarter of 2021. Net income rose 18.88% from $ 1,621,000 in the third quarter of 2020. Metro Phoenix Bank’s third quarter results reflect the positive effects of fully funded loan and leasing loss provisions (ALLL) and strong SBA lending activity.
Stephen P. Haggard, President and Chief Executive Officer of the bank said, “While net loan growth was flat in the quarter, the lending team did a very good job protecting our base income levels while our commercial loan refinancing frenzy is going on in our market. We will be on some of these win and lose some, but for now we are maintaining our pricing discipline to keep our year-to-date cumulative net interest margin above 4.00% margin compression as we have deep vertical expertise in SBA credit and Outdoor Media credit, both of which are related Lending is more inelastic on interest rate sensitivity, both of which are exposed to aggressive price competition.
“The remaining PPP loans are essentially not a factor in the bank’s loan portfolio and income statement at this point in time. We currently have less than $ 11 million on the books and we expect our PPP portfolio to be discontinued by the end of the year.
“The quality of the assets remains unchanged and the bank operates with an ALLL that has a surplus or an unallocated balance in reserves. The portfolio appears to be doing well given the recent disruptions caused by the COVID-19 delta variant, the delta surge is the fact that Arizona has remained essentially open to business during this pandemic, which has resulted in robust economic growth for most well-run and well-funded small and medium-sized businesses and commercial real estate projects; Human resource and supply chain issues appear to be the two common denominator threats affecting future operations.
“In summary, our credit pipeline is still healthy, but production needs to accommodate the growth of new credit and replace the payouts that come from interest refinancing activities and underlying home loan collateral being sold in a very cheap market for capitalization rates . Nonetheless, credit options remain plentiful as MPB is focused on the continued growth of high quality credit. “
Highlights of the third quarter of 2021
- The quarterly surplus was $ 1,927,000 or $ 0.51 per diluted share.
- 1.85% ROA for the quarter
- ROE of 18.96% for the quarter
- NIM of 3.72% for the quarter, with the mid cost increasing to 0.30%; relatively unchanged compared to the linked quarter’s financing costs of 0.29%.
- SBA profits on the sale of $ 827,361 for the quarter.
- Provision effort of $ 0 for the quarter.
- Efficiency rate of 50.27% for the quarter.
- Loan growth (net PPP) of 0.70% for the quarter.
- Deposit growth of 4.13% for the quarter.
- The distressed assets ratio is 0.00%, no significant change from the linked quarter.
Balance sheet
The balance sheet total grew by 4.04% $ 411.4 million at September 30, 2021 and increased by 27.07% compared to $ 323.8 million a year ago. Total loans decreased by 2.31% to $ 283.4 million at September 30, 2021 and increased by 10.40% compared to $ 256.7 million a year ago. Without PPP loan from $ 10.9 million At the end of the 3rd quarter, loans were up 0.70% over the 2nd quarter and 26.80% over the previous year. Total deposits rose 4.13% $ 366.4 million at September 30, 2021 and increased by 30.53% compared to $ 280.7 million a year ago.
Risk provisioning in the lending business amounted to $ 3.755 million at September 30, 2021, or 1.32% of total loans. Excluding the PPP loan balance of $ 10.9 million, an adjusted risk provision corresponds to 1.38% of the total loan. There have been no significant changes in the reported credit quality of the loan portfolio compared to the previous quarter.
Equity increases to $ 41.37 million at September 30, 2021, from $ 39.45 million in the previous quarter and rose by 10.67% compared to $ 37.38 million a year ago. at September 30, 2021, Book value and non-cash book value $ 11.88 per share versus $ 11.32 per share June 30, 2021 and $ 10.74 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. Effective January 2020, Community banks are tested for their capital adequacy on the basis of a single equity ratio, the Community Bank Leverage Ratio (CBLR). The bank has the following equity ratio:
|
Regulatory capital ratios |
Bank 09/30/21 |
Regulatory Minimal requirements |
|
Debt ratio of the community banks |
9.95% |
8.50% |
about the company
Metro Phoenix Bank, Inc., founded in 2007 and based 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. For more information, see: 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, except per share or otherwise stated) |
|||||||||||
|
For the three months |
For the nine months |
||||||||||
|
ended on September 30th, |
ended on September 30th, |
end of year |
|||||||||
|
2021 |
2020 |
2021 |
2020 |
2020 |
|||||||
|
Summary of income data |
|||||||||||
|
Interest income |
4,041 |
3,456 |
11,550 |
10,962 |
14,568 |
||||||
|
Interest expenses |
309 |
304 |
855 |
1,075 |
1,351 |
||||||
|
Net interest income |
3,732 |
3.152 |
10,695 |
9,887 |
13,217 |
||||||
|
Provision for (reduction) of loan defaults |
– |
200 |
250 |
1,350 |
1,600 |
||||||
|
Provision for (reduction) of unsecured obligations |
– |
– |
– |
– |
– |
||||||
|
Non-interest income |
1,068 |
838 |
2,369 |
1,479 |
1,800 |
||||||
|
Interest-independent expense |
2,413 |
1,735 |
5,980 |
5,075 |
6,797 |
||||||
|
Realized gains (losses) on sales of securities |
– |
– |
– |
– |
– |
||||||
|
Profit (loss) before income taxes |
2,387 |
2,055 |
6,834 |
4,941 |
6,620 |
||||||
|
Provision for income tax |
460 |
434 |
1.616 |
1,185 |
1,581 |
||||||
|
Net result |
1.927 |
1.621 |
5,218 |
3,756 |
5,039 |
||||||
|
Data per share |
|||||||||||
|
Shares outstanding at the end of the period |
3,483 |
3,481 |
3,483 |
3,481 |
3,481 |
||||||
|
Earnings per common share |
0.55 |
0.47 |
1.50 |
1.08 |
1.45 |
||||||
|
Earnings per common share (diluted) |
0.51 |
0.43 |
1.38 |
1.00 |
1.34 |
||||||
|
Reported cash dividend per share |
– |
– |
0.725 |
– |
– |
||||||
|
Total equity |
41,370 |
37,379 |
41,370 |
37,379 |
38,662 |
||||||
|
Book value per share |
11.88 |
10.74 |
11.88 |
10.74 |
11.11 |
||||||
|
Selected balance sheet data |
|||||||||||
|
Total assets |
411,408 |
323.768 |
411,408 |
323.768 |
326.012 |
||||||
|
Securities available for sale |
167 |
438 |
167 |
438 |
436 |
||||||
|
Loans |
283,402 |
256,660 |
283,402 |
256,660 |
279.730 |
||||||
|
Provision for credit losses |
3,755 |
3,225 |
3,755 |
3,225 |
3,475 |
||||||
|
insoles |
366,369 |
280,661 |
366,369 |
280,661 |
281,827 |
||||||
|
Other loans |
3,100 |
3,100 |
3,100 |
3,100 |
3,100 |
||||||
|
equity capital |
41,370 |
37,379 |
41,370 |
37,379 |
38,662 |
||||||
|
Performance metrics |
|||||||||||
|
Return on Average Equity (Annualized) (%) |
18.96% |
17.38% |
17.34% |
13.78% |
13.71% |
||||||
|
Net Interest Margin (%) |
3.72% |
4.09% |
4.03% |
4.61% |
4.53% |
||||||
|
Cost of funds |
0.30% |
0.37% |
0.30% |
0.36% |
0.34% |
||||||
|
Average wealth |
413,925 |
326.726 |
386.612 |
298,663 |
305.070 |
||||||
|
Return on Average Assets (Annualized) (%) |
1.85% |
1.97% |
1.80% |
1.68% |
1.65% |
||||||
|
Equity to assets (%) |
10.06% |
11.54% |
10.06% |
11.54% |
11.86% |
||||||
|
Efficiency (%) |
50.27% |
43.48% |
45.77% |
44.65% |
45.26% |
||||||
|
Plant quality data |
|||||||||||
|
Non accrual loans |
– |
– |
– |
– |
– |
||||||
|
Inclined rescheduling |
– |
4th |
– |
4th |
2 |
||||||
|
Other real estate |
– |
– |
– |
– |
– |
||||||
|
Distressed Assets |
– |
– |
– |
– |
– |
||||||
|
Non-performing assets to total assets (%) |
– |
– |
– |
– |
– |
||||||
|
Bad loans to total loans (%) |
– |
– |
– |
– |
– |
||||||
|
Provision for loan defaults to total loans (%) |
1.32% |
1.26% |
1.32% |
1.26% |
1.24% |
||||||
|
Loan loss provision for non-performing loans (%) |
– |
– |
– |
– |
– |
||||||
|
Provision for loan defaults on non-performing assets (%) |
– |
– |
– |
– |
– |
||||||
|
Net write-offs for period |
20th |
– |
(30) |
– |
– |
||||||
|
Average Loans |
287.917 |
246.134 |
286.167 |
218.155 |
228,872 |
||||||
|
Ratio of depreciation to average loans (%) |
0.007% |
0.00% |
-0.01% |
0.00% |
0.00% |
||||||
|
Regulatory capital ratios |
|||||||||||
|
Debt ratio of the community banks |
9.95% |
11.44% |
9.95% |
11.44% |
11.84% |
||||||
|
Tier 1 Leverage 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 |
||||||
|
Tier 1 Risk Capital Ratio (%) |
N / A |
N / A |
N / A |
N / A |
N / A |
||||||
|
Total risk-based equity ratio (%) |
N / A |
N / A |
N / A |
N / A |
N / A |
||||||
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SOURCE Metro Phoenix Bank
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