Houston Community News >> MetroBank Record Third Quarter Net Income
10/30/2006 Houston- MetroCorp Bancshares, Inc. (Nasdaq:MCBI), a Texas corporation which provides community banking services through its subsidiaries, MetroBank, N.A., serving Houston and Dallas, Texas, and Metro United Bank ("Metro United"), serving San Diego and Los Angeles, California, today announced net income of $3.5 million for the third quarter of 2006, up approximately $710,000 or 25.0% compared with the same quarter in 2005. Diluted earnings per share for the third quarter 2006 were $0.32 compared with $0.26 for the same quarter in 2005.
On September 1, 2006, MetroCorp completed a three-for-two stock split effected in the form of a 50% stock dividend. All prior period share and per share data (other than share data on the balance sheet) have been adjusted to reflect this stock split.
Third Quarter Highlights:
- Record net income of $3.5 million, up 25.0% compared with the same quarter of 2005
- Diluted earnings per share of $0.32, an increase of 22.9% compared with the same quarter of 2005
- Total loans increased to $840.3 million
- Total deposits increased to $1.04 billion
- Return on average equity (ROAE) of 14.05%
- Return on average assets (ROAA) of 1.17%
- Irvine, California branch acquired and commenced operations
- Loan production office in San Mateo, California opened and expected to become a full-service branch in the fourth quarter of 2006.
- A three-for-two stock split in the form of a 50% stock dividend was paid on September 1, 2006
George M. Lee, President and CEO of MetroCorp Bancshares, Inc., stated, "The results indicate how our team has managed in the midst of a challenging interest rate environment and intense competition for loans and deposits during the third quarter. Our average total loans increased from $803 million for the second quarter to $834 million for the third quarter and average deposits increased from $1.01 billion to $1.03 billion while our net interest margin decreased slightly by two basis points from 4.79% to 4.77% for the same period.
We are also pleased with the progress we are making in expanding our market presence, especially in the state of California. During the third quarter of 2006, we doubled our number of locations from two to four, completed the integration of the Irvine branch that was acquired from Omni Bank, N.A. and opened a loan production office in San Mateo which we expect to become a full service branch in the fourth quarter of 2006.
We have also entered into a lease for a location in the City of Industry, California which will have the capacity to serve as another branch in the future. In addition to California, we have completed the staffing and leasing of office space for our representative office in Xiamen, China, and we expect to commence operations during the fourth quarter of 2006.
MetroCorp Bancshares, Inc., provides a full range of commercial and consumer banking services through its wholly owned subsidiaries, MetroBank, N.A. and Metro United Bank. The Company has 13 full-service banking locations in the greater Houston, and Dallas, Texas metropolitan areas, and three full service banking locations in the greater San Diego and Los Angeles, California metropolitan areas and one loan production office in San Mateo, California. As of September 30, 2006, the Company had consolidated assets of $1.2 billion. For more information, visit the Company's web site at www.metrobank-na.com