MetroCorp Bancshares Inc. (MCBI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Metrocorp Bancshares Inc. has a market cap of $39.1 million; its shares were traded at around $3.55 with and P/S ratio of 0.4.
In April 2010, nonperforming assets were reduced by $17.9 million. Several ORE properties were sold resulting in a $9.3 million reduction in ORE. Of the total, $5.4 million was from Texas, and $3.9 million was from California. There were no significant losses recorded in April 2010 on these sales. Additionally, $1.3 million was charged off on a $9.9 million nonperforming loan in the first quarter of 2010, and was reported as held-for-sale at March 31, 2010. In April 2010, the loan was sold at no gain or loss.
Net Interest Income and Net Interest Margin. For the three months ended March 31, 2010, net interest income, before the provision for loan losses, was $14.5 million, an increase of $1.7 million or 13.3% compared with $12.8 million for the same period in 2009. The increase was primarily due to lower deposit costs. Average interest-earning assets for the three months ended March 31, 2010 were $1.48 billion, a decrease of $27.7 million or 1.8% compared with $1.51 billion for the same period in 2009. The weighted average yield on interest-earning assets for the first quarter of 2010 was 5.53%, a decrease of 30 basis points compared
Interest Income from Loans. Interest income from loans for the three months ended March 31, 2010 was $19.2 million, a decrease of $1.2 million or 5.9% compared with $20.4 million for the same quarter in 2009. The decrease was the result of lower loan volume and an increase in nonperforming assets during the first quarter of 2010, compared with the same quarter in 2009. Average total loans for the three months ended March 31, 2010 were $1.27 billion compared to $1.34 billion for the same period in 2009, a decrease of approximately $68.4 million or 5.1%. For the first quarter of 2010, the average yield on loans was 6.11% compared to 6.16% for the same quarter in 2009, a decrease of 5 basis points.
Interest Income from Investments. Interest income from investments (which includes investment securities, federal funds sold, and other investments) for the three months ended March 31, 2010 was $1.0 million, a decrease of approximately $277,000 or 21.0% compared to $1.3 million for the same period in 2009. The decrease in interest income from investments was primarily the result of declining interest rates and the effect of paydowns and calls of securities. Average total investments for the three months ended March 31, 2010 were $209.4 million compared to average total investments for the same period in 2009 of $168.7 million, an increase of approximately $40.7 million or 24.1%. The increase was primarily the result of an increase in federal funds sold and other short-term investments, partially offset by a decrease in other investments. For the first quarter 2010, the average yield on total investments was 2.02% compared to 3.17% for the same quarter in 2009, a decrease of 115 basis points.
Interest Expense on Deposits. Interest expense on interest-bearing deposits for the three months ended March 31, 2010 was $5.0 million, a decrease of approximately $3.1 million or 38.7% compared to $8.1 million for the same period in 2009. Average interest-bearing deposits for the three months ended March 31, 2010 were $1.16 billion compared to average interest-bearing deposits for the same period in 2009 of $1.12 billion, an increase of $40.7 million or 3.6%. The average interest rate paid on interest-bearing deposits for the first quarter of 2010 was 1.73% compared to 2.93% for the same quarter in 2009, a decrease of 120 basis points. The decline in interest expense and the average interest rate paid on interest-bearing deposits was primarily due to decreased rates on transaction accounts and the replacement of higher cost time deposits with lower cost deposits as they matured.
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Metrocorp Bancshares Inc. has a market cap of $39.1 million; its shares were traded at around $3.55 with and P/S ratio of 0.4.
Highlight of Business Operations:
Total assets were $1.60 billion at March 31, 2010, an increase of $7.4 million or 0.5% from $1.59 billion at December 31, 2009. Available-for-sale investment securities at March 31, 2010 were $93.3 million, a decrease of $5.1 million or 5.1% from $98.4 million at December 31, 2009. Net loans at March 31, 2010 were $1.23 billion, a decrease of $18.5 million or 1.5% from $1.24 billion at December 31, 2009. Total deposits at March 31, 2010 were $1.37 billion, an increase of $2.3 million or 0.2% from $1.36 billion at December 31, 2009. Other borrowings at March 31, 2010 were $26.2 million, a decrease of $704,000 or 2.8% from $25.5 million at December 31, 2009. The Companys return on average assets (ROAA) for the three months ended March 31, 2010 and 2009 was (0.86%) and (0.51%), respectively. The Companys return on average equity (ROAE) for the three months ended March 31, 2010 and 2009 was (8.68%) and (5.18%), respectively. Shareholders equity at March 31, 2010 was $152.2 million compared to $155.3 million at December 31, 2009, a decrease of approximately $3.1 million or 2.0%. Details of the changes in the various components of net income are further discussed below.In April 2010, nonperforming assets were reduced by $17.9 million. Several ORE properties were sold resulting in a $9.3 million reduction in ORE. Of the total, $5.4 million was from Texas, and $3.9 million was from California. There were no significant losses recorded in April 2010 on these sales. Additionally, $1.3 million was charged off on a $9.9 million nonperforming loan in the first quarter of 2010, and was reported as held-for-sale at March 31, 2010. In April 2010, the loan was sold at no gain or loss.
Net Interest Income and Net Interest Margin. For the three months ended March 31, 2010, net interest income, before the provision for loan losses, was $14.5 million, an increase of $1.7 million or 13.3% compared with $12.8 million for the same period in 2009. The increase was primarily due to lower deposit costs. Average interest-earning assets for the three months ended March 31, 2010 were $1.48 billion, a decrease of $27.7 million or 1.8% compared with $1.51 billion for the same period in 2009. The weighted average yield on interest-earning assets for the first quarter of 2010 was 5.53%, a decrease of 30 basis points compared
Interest Income from Loans. Interest income from loans for the three months ended March 31, 2010 was $19.2 million, a decrease of $1.2 million or 5.9% compared with $20.4 million for the same quarter in 2009. The decrease was the result of lower loan volume and an increase in nonperforming assets during the first quarter of 2010, compared with the same quarter in 2009. Average total loans for the three months ended March 31, 2010 were $1.27 billion compared to $1.34 billion for the same period in 2009, a decrease of approximately $68.4 million or 5.1%. For the first quarter of 2010, the average yield on loans was 6.11% compared to 6.16% for the same quarter in 2009, a decrease of 5 basis points.
Interest Income from Investments. Interest income from investments (which includes investment securities, federal funds sold, and other investments) for the three months ended March 31, 2010 was $1.0 million, a decrease of approximately $277,000 or 21.0% compared to $1.3 million for the same period in 2009. The decrease in interest income from investments was primarily the result of declining interest rates and the effect of paydowns and calls of securities. Average total investments for the three months ended March 31, 2010 were $209.4 million compared to average total investments for the same period in 2009 of $168.7 million, an increase of approximately $40.7 million or 24.1%. The increase was primarily the result of an increase in federal funds sold and other short-term investments, partially offset by a decrease in other investments. For the first quarter 2010, the average yield on total investments was 2.02% compared to 3.17% for the same quarter in 2009, a decrease of 115 basis points.
Interest Expense on Deposits. Interest expense on interest-bearing deposits for the three months ended March 31, 2010 was $5.0 million, a decrease of approximately $3.1 million or 38.7% compared to $8.1 million for the same period in 2009. Average interest-bearing deposits for the three months ended March 31, 2010 were $1.16 billion compared to average interest-bearing deposits for the same period in 2009 of $1.12 billion, an increase of $40.7 million or 3.6%. The average interest rate paid on interest-bearing deposits for the first quarter of 2010 was 1.73% compared to 2.93% for the same quarter in 2009, a decrease of 120 basis points. The decline in interest expense and the average interest rate paid on interest-bearing deposits was primarily due to decreased rates on transaction accounts and the replacement of higher cost time deposits with lower cost deposits as they matured.
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