8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 4, 2010 (April 29, 2010)

Metro Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Pennsylvania	000-50961	25-1834776
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3801 Paxton Street, Harrisburg, Pennsylvania	17111
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 800-653-6104

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement.

On April 29, 2010, pursuant to a Stipulation and Consent to the Issuance of a Consent Order, Metro Bank (the “Bank”), a wholly owned subsidiary of Metro Bancorp, Inc., a Pennsylvania business corporation, consented and agreed to the issuance of a Consent Order (“Order”) by the Federal Deposit Insurance Corporation (the “FDIC”), the Bank’s federal banking regulator.  The Order was effective immediately.  The Bank also agreed to the issuance by the Pennsylvania Department of Banking of a substantially similar consent order.  The orders were issued following an August 31, 2009 joint Report of Examination issued by the banking regulators as of June 30, 2009.  The Order requires the Bank to take all necessary steps, consistent with the Order and sound banking practices, to correct and prevent certain unsafe or unsound banking practices and violations of law or regulation alleged by the FDIC to have been committed by the Bank.  The Order requires the Bank to address each alleged deficiency identified by the FDIC in its examination and to ensure that the Bank is operated with adequate management supervision and Board oversight in order to prevent any future unsafe or unsound banking practice and violation of law and/or regulation.

Among other things, the Order requires an analysis and assessment of the Bank’s management and Bank Secrecy Act (“BSA”) and Office of Foreign Assets Control (“OFAC”) staffing needs and qualifications; an analysis and assessment of the independence and performance of the Bank’s directors and senior executive officers; designation of a BSA and OFAC officer(s); the development, adoption and implementation of a system of internal controls designed to ensure full compliance with BSA and OFAC provisions; training programs to ensure that all appropriate personnel are aware of and can comply with applicable requirements of BSA and OFAC provisions; periodic reviews by internal and external auditors of compliance with BSA and OFAC provisions; and a review by an independent third party of the Bank’s compl iance with the Order.  In addition, the Bank must submit to the FDIC a profit plan and comprehensive budget for 2010 and a plan to reduce certain assets classified by the FDIC as “substandard” or “doubtful.”

The Order requires the Bank to comply with its provisions over periods ranging from 30 to 210 days from the effective date of the Order.  The Bank consented to the regulatory orders without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulation relating to any matters identified in the orders.

Item 2.02.  Results of Operations and Financial Condition

On May 4, 2010, Metro Bancorp, Inc. issued a press release reporting financial results for its first quarter ended March 31, 2010.  A copy of the press release is attached as Exhibit 99.1 to this report.

On May 4, 2010, the Registrant also made certain supplemental information available. A copy of the supplemental information is attached as Exhibit 99.2 to this report.

Item 9.01.   Financial Statements and Exhibits

Exhibit No.

99.1Press Release, dated May 4, 2010

99.2Supplemental Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Metro Bancorp, Inc.
	-----------------------------------------------
	(Registrant)
Date: May 4, 2010	/s/ Mark A. Zody
	-----------------------------------------------
	Mark A. Zody
	Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	DESCRIPTION
---------------	-----------------------
99.1	Press Release of Metro Bancorp, Inc. dated
	May 4, 2010
99.2	Supplemental Information

EX-99.1

    ex99-1.htm

EX-99.2

Exhibit 99.2

Metro Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
	At or for the
	Three Months Ended
	March 31,			December 31,			%			March 31,			%
(in  thousands,  except  per  share  amounts)	2010			2009			Change			2009			Change
Income Statement Data:
Net interest income	$	19,433		$	18,575			5	%	$	19,337			0	%
Provision for loan losses		2,400			1,800			33			3,200			(25	)
Noninterest income		5,946			7,178			(17	)		5,499			8
Total revenues		25,379			25,753			(1	)		24,836			2
Noninterest operating expenses		23,875			25,646			(7	)		20,627			16
Net income (loss)		6			(890	)		101			837			(99	)
Per Common Share Data:
Net  income (loss):  Basic	$	0.00		$	(0.07	)		100	%	$	0.13			(100	) %
Net  income (loss):  Diluted		0.00			(0.07	)		100			0.13			(100	)
Book Value	$	14.99		$	14.80			1		$	18.17			(18	)
Weighted average shares outstanding:
Basic		13,469			13,348						6,465
Diluted		13,474			13,348						6,518
Balance Sheet Data:
Total assets	$	2,171,191			2,147,759			1	%		2,115,301			3	%
Loans (net)		1,394,398			1,429,392			(2	)		1,430,105			(2	)
Allowance for loan losses		15,178			14,391			5			16,231			(6	)
Investment securities		552,377			506,651			9			470,610			17
Total deposits		1,847,695			1,814,733			2			1,668,617			11
Core deposits		1,820,173			1,783,319			2			1,658,100			10
Stockholders' equity		203,219			200,022			2			118,997			71
Capital:
Stockholders' equity to total assets		9.36	%		9.31	%					5.63	%
Leverage ratio		11.08			11.31						7.59
Risk based capital ratios:
Tier 1		13.94			13.88						9.51
Total Capital		14.82			14.71						10.47
Performance Ratios:
Cost of funds		0.94	%		1.06	%					1.20	%
Deposit cost of funds		0.81			0.94						1.09
Net interest margin		3.87			3.74						3.83
Return on average assets		0.00			(0.17	)					0.16
Return on average total stockholders' equity		0.01			(1.76	)					2.91
Asset Quality:
Net charge-offs (annualized) to average loans outstanding		0.46	%		1.02	%					1.03	%
Nonperforming  assets  to  total  period-end  assets		2.46			2.12						1.44
Allowance  for  loan  losses  to  total  period-end  loans		1.08			1.00						1.12
Allowance  for  loan  losses  to  nonperforming  loans		33			38						55
Nonperforming  assets  to  capital and reserves		24			21						22

1

Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income
(unaudited)
	Quarter ending,

	March 2010							December 2009							March 2009
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
(dollars in thousands)
Earning Assets
Investment securities:
Taxable	$	570,947	$	5,399		3.78	%	$	498,732	$	4,827		3.87	%	$	525,370	$	5,477		4.17	%
Tax-exempt		1,354		21		6.10			1,624		25		6.07			1,623		26		6.41
Total securities		572,301		5,420		3.79			500,356		4,852		3.88			526,993		5,503		4.18
Federal funds sold		5,036		1		0.10			5,457		2		0.13			0		0		0.00
Loans receivable:
Mortgage and construction		724,517		10,264		5.67			730,256		10,305		5.54			753,190		10,740		5.70
Commercial loans and lines of credit		375,091		4,464		4.76			379,724		4,494		4.64			369,236		4,663		5.05
Consumer		215,123		2,809		5.29			219,349		2,980		5.38			270,078		3,409		5.12
Tax-exempt		115,046		1,762		6.13			118,006		1,845		6.15			96,328		1,536		6.38
Total loans receivable		1,429,777		19,299		5.41			1,447,335		19,624		5.33			1,488,832		20,348		5.48
Total earning assets	$	2,007,114	$	24,720		4.94	%	$	1,953,148	$	24,478		4.94	%	$	2,015,825	$	25,851		5.14	%
Sources of Funds
Interest-bearing deposits:
Regular savings	$	323,243	$	387		0.49	%	$	308,961	$	435		0.56	%	$	345,498	$	552		0.65	%
Interest checking and money market		922,098		1,796		0.79			888,560		2,003		0.89			722,248		1,663		0.93
Time deposits		228,318		1,430		2.54			250,009		1,744		2.77			249,374		2,047		3.33
Public funds time		29,088		54		0.75			30,310		67		0.88			10,307		70		2.75
Total interest-bearing deposits		1,502,747		3,667		0.99			1,477,840		4,249		1.14			1,327,427		4,332		1.32
Short-term borrowings		51,238		66		0.51			40,192		62		0.60			308,065		426		0.55
Other borrowed money		25,000		268		4.29			25,000		275		4.29			50,000		548		4.38
Junior subordinated debt		29,400		661		9.00			29,400		661		9.00			29,400		661		8.99
Total interest-bearing liabilities		1,608,385		4,662		1.17			1,572,432		5,247		1.32			1,714,892		5,967		1.41
Noninterest-bearing funds (net)		398,729							380,716							300,933
Total sources to fund earning assets	$	2,007,114	$	4,662		0.94	%	$	1,953,148	$	5,247		1.06	%	$	2,015,825	$	5,967		1.20	%
Net interest income and margin
on a tax-equivalent basis			$	20,058		4.00	%			$	19,231		3.88	%			$	19,884		3.94	%
Tax-exempt adjustment				625							656							547
Net interest income and margin			$	19,433		3.87	%			$	18,575		3.74	%			$	19,337		3.83	%
Other Balances:
Cash and due from banks	$	42,812						$	46,702						$	38,763
Other assets		97,360							99,482							75,055
Total assets		2,147,286							2,099,332							2,129,643
Demand deposits (noninterest-bearing)		325,359							306,146							285,580
Other liabilities		11,548							19,600							12,702
Stockholders' equity		201,994							201,154							116,469

2

Metro Bancorp, Inc. and Subsidiaries
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	3/31/2010			3/31/2009			Year-ended
(dollar amounts in thousands)	Three Months Ended						12/31/2009
Balance at beginning of period	$	14,391		$	16,719		$	16,719
Provisions charged to operating expense		2,400			3,200			12,425
		16,791			19,919			29,144
Recoveries on loans charged-off:
Commercial		31			3			92
Consumer		1			1			6
Real estate		13			0			210
Total recoveries		45			4			308
Loans charged-off:
Commercial		(1,344	)		(1,860	)		(7,405	)
Consumer		(61	)		(7	)		(21	)
Real estate		(253	)		(1,825	)		(7,635	)
Total charged-off		(1,658	)		(3,692	)		(15,061	)
Net charge-offs		(1,613	)		(3,688	)		(14,753	)
Balance at end of period	$	15,178		$	16,231		$	14,391
Net charge-offs (annualized) as a percentage of
average loans outstanding		0.46	%		1.03	%		1.02	%
Allowance for loan losses as a percentage of
period-end loans		1.08	%		1.12	%		1.00	%

3

Metro Bancorp, Inc. and Subsidiaries
Summary of Nonperforming Loans and Assets
(unaudited)
The following table presents information regarding nonperforming loans and assets as of March 31, 2010 and for the preceding four quarters
(dollar amounts in thousands).
	March 31,			December 31,			September 30,			June 30,			March 31,
	2010			2009			2009			2009			2009
Nonaccrual loans:
Commercial	$	13,142		$	14,403		$	8,833		$	8,240		$	8,479
Consumer		1,064			654			984			882			724
Real Estate:
Construction		17,424			3,969			4,580			6,045			7,870
Real Estate		14,419			18,719			10,694			16,628			12,348
Total nonaccrual loans		46,049			37,745			25,091			31,795			29,421
Loans past due 90 days or more
and still accruing		249			0			5			0			0
Total nonperforming loans		46,298			37,745			25,096			31,795			29,421
Foreclosed real estate		7,154			7,821			6,875			1,650			989
Total nonperforming assets	$	53,452		$	45,566		$	31,971		$	33,445		$	30,410
Nonperforming loans to total loans		3.28	%		2.61	%		1.71	%		2.19	%		2.03	%
Nonperforming assets to total assets		2.46	%		2.12	%		1.53	%		1.61	%		1.44	%
Nonperforming loan coverage		33	%		38	%		58	%		61	%		55	%
Allowance for loan losses as a percentage
of total period-end loans		1.08	%		1.00	%		0.99	%		1.33	%		1.12	%
Nonperforming assets / capital plus allowance for loan losses		24	%		21	%		15	%		24	%		22	%

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