Metro Phoenix Bank Reports Earnings of $417,000, or $0.11 per Diluted Share in 4Q2017 and Efficiency Ratio of 50.53%

PHOENIX, Feb. 14, 2018 /PRNewswire/ -- Metro Phoenix Bank (OTCPink: MPHX)("Bank") announced net income for quarter ending December 31, 2017 of $417,000, or $0.11 per diluted share.  Excluding the one-time Deferred Tax Asset (DTA) write down of $374,000, adjusted net income for quarter ending December 31, 2017 was $791,000, or $0.21 per diluted share, which remains comparable to 3Q 2017 net income of $795,000 or $0.21 per diluted share.  

For the full twelve months of 2017, the Bank reported net income of $2.91 million, or $0.77 per diluted share, compared to a negative $786,000, or negative $0.32 per diluted share for the same period of 2016.  Excluding non-recurring income and the one-time DTA write down for the full twelve months of 2017, the adjusted net income of the Bank grew to $2.43 million, or $0.64 per diluted share.

"The Bank's pre-tax earnings performance in the fourth quarter solidifies management's confidence that our business model is working well within the framework of the local market and provides optimism that sound core earnings can be sustained throughout 2018," stated Stephen P. Haggard, President and Chief Executive Officer.  "It is very satisfying to see the business potential of Arizona finally being unlocked after years of sluggish growth.  Arizona currently has a healthy economic environment in which businesses are thriving, banks are profitable and local communities are benefitting."   

Fourth Quarter 2017 Highlights:

• Net Income for the quarter was $417,000, or $0.11 per diluted share.
• ROA of 0.95% and 1.28% for the quarter and for the twelve months excluding non-recurring income, respectively;
• ROE of 5.98% and 9.00% for the quarter and for twelve months excluding non-recurring income, respectively;
• ROA of 1.50% and ROE of 10.61% for the twelve months excluding non-recurring income and the one-time DTA write down.
• NIM of 5.54% and 5.15% for the quarter and the twelve months, respectively, with the cost of funds stable at 0.37% compared to the linked quarter, and slightly higher than the fourth quarter 2016 of 0.31%.
• SBA Gains on Sale of $230M and $998M for the quarter and for the twelve months, respectively.
• Provision Expense of $44M and $214M for the quarter and for twelve months, respectively.
• Efficiency Ratio of 50.53% and 55.14% for the quarter and for the twelve months excluding non-recurring income, respectively.
• Loan growth was 1.96% and 24.27% for the quarter and for the twelve months, respectively.
• Non-Performing Assets remained at zero for the third consecutive quarter.

Balance Sheet
Total assets grew by 4.48% to $174.9 million for quarter ending December 31, 2017, and increased 23.65% compared to $141.5 million a year ago.  Total loans grew by 1.96% to $137.7 million for quarter ending December 31, 2017, and increased 24.27% compared to $110.8 million a year ago. Total deposits grew by 5.07% to $146.9 million for quarter ending December 31, 2017, and increased 15.10% compared to $125.9 million a year ago. 

The allowance for loan losses totaled $1.6 million at December 31, 2017, or 1.15% of total loans.  No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders' equity increased to $27.6 million at December 31, 2017, from $27.2 million the preceding quarter.  At December 31, 2017, book value and tangible book value were $8.15 per share compared to $8.02 per share at September 30, 2017.

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, 2017.  The Bank reported the following capital ratios:

About the Company
Metro Phoenix Bank, Inc., headquartered in Phoenix, Arizona is a full-service community Bank that caters to small-to mid-sized businesses and real estate professionals.  It offers deposit and loan products and services as well as convenient on-line banking.  The Bank was established in 2007 and operates out of single corporate office.  The company is traded over-the-counter as MPHX.  For further information please visit the website: 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.

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SOURCE Metro Phoenix Bank