HOUSTON, March 15, 2012 /PRNewswire/ -- MetroCorp
Bancshares, Inc. (Nasdaq: MCBI) announced that - as a result of
refinements in its review of impairments on goodwill after its
January 20, 2012 announcement of
fourth quarter 2011 results and before finalizing its 2011 annual
report – the Company will record a $3.0
million (pre-tax) impairment charge to earnings for the
fourth quarter of 2011. The goodwill impairment charge was a
non-cash adjustment to earnings that had no effect on regulatory
capital, cash flows or liquidity.
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Revised net loss for the fourth quarter ended December 31, 2011 was $328,000, or $0.07
loss per diluted common share, compared with $2.7 million net income, or $0.16 earnings per diluted common share
previously reported for this period. Revised net income for
the year ended December 31, 2011 was
$6.4 million, or $0.30 earnings per diluted common share, compared
with net income of $9.4 million, or
$0.53 earnings per diluted common
share, previously reported.
Subsequent to the Company's earnings release on January 20, 2012, the Company performed an
evaluation of goodwill as of year-end due to the continued weakness
of the Company's stock price, which was trading below its book
value through December 31,
2011. As a result of the evaluation, the Company recorded a
$3.0 million impairment of goodwill
for the fourth quarter of 2011.
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 thirteen full-service banking locations in the greater
Houston and Dallas, Texas metropolitan areas, and six
full-service banking locations in the greater San Diego, Los
Angeles and San Francisco,
California metropolitan areas. As of December 31, 2011, the Company had consolidated
assets of $1.5 billion. For
more information, visit the Company's web site at
www.metrobank-na.com.
The statements contained in this release that are not historical
facts may constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements describe the Company's future plans,
projections, strategies and expectations, are based on assumptions
and involve a number of risks and uncertainties, many of which are
beyond the Company's control. Important factors that could
cause actual results to differ materially from the results
anticipated or projected include, but are not limited to, the
following: (1) general business and economic conditions in the
markets the Company serves may be less favorable than expected
which could decrease the demand for loan, deposit and other
financial services and increase loan delinquencies and defaults;
(2) changes in the interest rate environment which could reduce the
Company's net interest margin; (3) the failure of or changes in
management's assumptions regarding the adequacy of the allowance
for loan losses; (4) an adverse change in the real estate market in
the Company's primary market areas; (5) legislative or regulatory
developments including changes in laws concerning taxes, banking,
securities, insurance and other aspects of the financial services
industry; (6) the effect of compliance, or failure to comply within
stated deadlines, with the provisions of the Formal Agreement
between MetroBank and the Office of the Comptroller of the
Currency; (7) the effect of compliance, or failure to comply within
stated deadlines, with the provisions of the Consent Order between
Metro United Bank and the Federal Deposit Insurance Corporation and
the California Department of Financial Institutions; (8) increases
in the level of nonperforming assets; (9) changes in the
availability of funds which could increase costs or decrease
liquidity; (10) the effects of competition from other financial
institutions operating in the Company's market area and elsewhere,
including institutions operating locally, regionally, nationally
and internationally, together with such competitors offering
banking products and services by mail, telephone, computer and the
Internet; (11) changes in accounting principles, policies or
guidelines; (12) a deterioration or downgrade in the credit quality
and credit agency ratings of the securities in the Company's
securities portfolio; (13) the incurrence and possible impairment
of goodwill associated with an acquisition; (14) the Company's
ability to raise additional capital; (15) the inability to fully
realize the Company's net deferred tax asset; and (16) the
Company's ability to adapt successfully to technological changes to
meet customers' needs and developments in the marketplace. All
written or oral forward-looking statements are expressly qualified
in their entirety by these cautionary statements. These and
other risks and factors are further described from time to time in
the Company's 2010 annual report on Form 10-K and other reports and
other documents filed with the Securities and Exchange
Commission.
For more information contact:
MetroCorp Bancshares, Inc., Houston
George Lee, Executive Vice Chairman,
President & CEO, (713) 776-3876, or
David Choi, EVP/Chief Financial
Officer, (713) 776-3876
SOURCE MetroCorp Bancshares, Inc.