US Metro Bancorp Announces Third Quarter 2023 Results

US Metro Bancorp (OTCQX: USMT): US Metro Bancorp (“Bancorp”) is a bank holding company, with a single subsidiary, US Metro Bank (“Bank”). On a consolidated basis, the Bancorp earned $2.3 million in the third quarter of 2023, compared to $2.7 million in the second quarter of 2023. For the nine months ending September 30, 2023, the consolidated Bancorp earned $8.1 million compared to $12.0 million for the nine months ending September 30, 2022. On a year-to-date basis, the Bancorp recorded an annualized return on average assets (“ROAA”) of 0.92% and an annualized return on average equity (“ROAE”) of 11.97%. With 16,390,000 shares outstanding, earnings per share (“EPS”) for the third quarter of 2023 was $0.14 compared to $0.17 in the second quarter of 2023. For the nine months ending September 30, 2023, EPS was $0.50 compared to $0.74 for the nine months ending September 30, 2022. On September 30, 2023, the Bancorp’s book value per share was $5.55 compared to $4.92 a year earlier.

The Bank recorded on a year-to-date basis net interest income of $26.3 million compared to $29.0 million in the same period a year earlier. Net income of $9.2 million for the nine months ending September 30, 2023, compares to $13.2 million reported for the same nine months in 2022, a year over year decrease of $4.0 million.

The Bank reported total assets of $1.199 billion as of September 30, 2023, representing a 9.5% increase compared to the reporting period ending September 30, 2022, and year over year loan growth of $68.5 million or 7.7%. Total Bank deposits ended the third quarter of 2023 at $1.037 billion, a $57.4 million or 5.9% increase from $979.3 million on September 30, 2022. Five of the Bank’s seven branches have deposits exceeding $100 million, with two branches having more than $200 million in deposits. The Bank’s newest branch in Lynnwood, Washington has reached $72 million in deposits since opening.

Loan quality remains good with non-performing assets as a percent of total assets of 0.10% on September 30, 2023, compared to 0.24% as of September 30, 2022. The Bank had no Other Real Estate Owned (OREO) on September 30, 2023, and one TDR loan totaling $39 thousand. Allowance for loan and lease losses (ALLL) to gross loans was 1.37% as of September 30, 2023, compared to 1.47% as of September 30, 2022. The Bank recorded a $500 thousand provision for loan loss expense, for the nine months ending September 30, 2023, compared to $1.3 million recorded for the nine months ending September 30, 2022.

“The Bank continues to produce positive financial results as well as growth in both loans and deposits. We are strategically focused on building the Bank’s value in support of our customers.” said CEO Dong Il Kim.

US Metro Bank is a California chartered, full service commercial bank headquartered in Garden Grove, California. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial, mortgage and SBA loans), as well as related banking services to its customers.

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

US METRO BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(All amounts in thousands except per share information)

At or for the Three Months Ended

 

9/30/2023

 

6/30/2023

 

% Change

 

9/30/2022

 

% Change

Net Income

 $

                2,309

 

 

 $

                2,662

 

 

 

-13.28

%

 $

                4,076

 

 

-43.36

%

Net Income Per Share (Basic)

 $

                  0.14

 

 

 $

                  0.17

 

 

 

-18.31

%

 $

                  0.25

 

 

-43.47

%

ROAA (Annualized)

 

0.78

%

 

0.93

%

 

-0.14

%

 

1.50

%

 

-0.71

%

ROAE (Annualized)

 

10.19

%

 

11.89

%

 

-1.70

%

 

20.47

%

 

-10.28

%

Efficiency Ratio

 

70.93

%

 

65.25

%

 

5.67

%

 

52.89

%

 

18.03

%

Assets

 $

        1,199,631

 

 $

        1,157,228

 

 

3.66

%

 $

        1,095,222

 

 

9.53

%

Gross Loans

 $

           960,639

 

 $

           963,675

 

 

-0.32

%

 $

           892,144

 

 

7.68

%

Deposits

 $

        1,035,746

 

 $

           998,804

 

 

3.70

%

 $

           978,721

 

 

5.83

%

Non-Interest Bearing Deposits

 $

           198,575

 

 $

           212,926

 

 

-6.74

%

 $

           319,511

 

 

-37.85

%

Common Equity

 $

              90,937

 

 $

              90,344

 

 

0.66

%

 $

              80,515

 

 

12.94

%

Ending Common Shares O/S

 

        16,390,000

 

 

        16,390,000

 

 

        16,360,000

 

Book Value Per Common Shares

 $

                 5.55

 

 $

                 5.51

 

 $

                0.04

 

 $

                 4.92

 

 $

       0.63

 

 

  At or for the Nine Months Ended          

 

 

9/30/2023

 

9/30/2022

 

Y-O-Y Change

 

 

Net Income

 $

                8,136

 

 

 $

              11,976

 

 

 $

            (3,840

)

 

-32.07

%

Net Income Per Share (Basic)

 $

                  0.50

 

 

 $

                  0.74

 

 

 $

              (0.24

)

 

-32.48

%

ROAA (Annualized)

 

0.92

%

 

1.47

%

 

-0.55

%

 

-37.24

%

ROAE (Annualized)

 

11.97

%

 

20.05

%

 

-8.08

%

 

-40.30

%

Efficiency Ratio

 

66.08

%

 

50.96

%

 

15.11

%

 

29.66

%

Assets

 $

        1,199,631

 

 $

        1,095,222

 

 $

         104,409

 

 

9.53

%

Gross Loans (Excl. Loans HFS)

 $

           949,987

 

 $

           892,144

 

 $

           57,843

 

 

6.48

%

Deposits

 $

        1,035,746

 

 $

           978,721

 

 $

           57,025

 

 

5.83

%

Non-Interest Bearing Deposits

 $

           198,575

 

 $

           319,511

 

 $

        (120,936

)

 

-37.85

%

Common Equity

 $

              90,937

 

 $

              80,515

 

 $

           10,422

 

 

12.94

%

Ending Common Shares O/S

 

        16,390,000

 

 

        16,360,000

 

 

               30,000

 

 

0.18

%

Book Value Per Common Shares

 $

                 5.55

 

 $

                 4.92

 

 $

                0.63

 

 

12.74

%

 
 
 
US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)          
Assets

9/30/2023

 

9/30/2022

 

      Y-O-Y Change

Cash and Due From Bank

 $

              12,511

 

 

 $

              13,182

 

 

 $

               (671

)

 

-5.1

%

Investments and Fed Funds Sold

 $

           204,547

 

 

 $

           172,454

 

 

 

               32,093

 

 

18.6

%

Loans Outstanding

 

               960,639

 

 

 

               892,144

 

 

 

               68,495

 

 

7.7

%

Loan Loss Reserve

 

               (13,117

)

 

 

               (13,116

)

 

 

                       (1

)

 

0.0

%

Other Assets

 

                 34,364

 

 

 

                 29,910

 

 

 

                 4,454

 

 

14.9

%

Total Assets

 $

        1,198,944

 

 

 $

        1,094,574

 

 

 $

         104,370

 

 

9.5

%

           
Liabilities and Capital

9/30/2023

 

9/30/2022

 

      Y-O-Y Change

Deposits

 $

        1,036,776

 

 

 $

           979,330

 

 

 $

           57,446

 

 

5.9

%

Borrowings

 

                 30,749

 

 

 

                   6,440

 

 

 

               24,309

 

 

377.5

%

Other Liabilities

 

                 16,101

 

 

 

                   3,461

 

 

 

               12,640

 

 

365.2

%

Equity

 

               115,318

 

 

 

               105,343

 

 

 

                 9,975

 

 

9.5

%

Total Liabilities and Capital

 $

        1,198,944

 

 

 $

        1,094,574

 

 

 $

         104,370

 

 

9.5

%

           
STATEMENT OF OPERATIONS Three Months Ended
Income Statement

9/30/2023

 

6/30/2023

 

   Q-O-Q Change

Interest Income

 $

              17,252

 

 

 $

              16,006

 

 

 $

              1,246

 

 

7.8

%

Interest Expense

 

                   8,713

 

 

 

                   7,607

 

 

 

                 1,106

 

 

14.5

%

Net Interest Income

 

                   8,539

 

 

 

                   8,399

 

 

 

                    139

 

 

1.7

%

Provision for Loan Losses

 

                            -

 

 

 

                      300

 

 

 

                   (300

)

 
Other Income

 

                   2,843

 

 

 

                   3,713

 

 

 

                   (870

)

 

-23.4

%

Operating Expenses

 

                   7,522

 

 

 

                   7,627

 

 

 

                   (106

)

 

-1.4

%

Tax

 

                   1,100

 

 

 

                   1,250

 

 

 

                   (150

)

 

-12.0

%

Net Income

 $

                2,760

 

 $

                2,935

 

 

 $

               (175

)

 

 

-5.9

%

           
           
STATEMENT OF OPERATIONS Nine Months Ended  
Income Statement

9/30/2023

 

9/30/2022

 

      Y-O-Y Change

Interest Income

 $

              48,513

 

 

 $

              31,780

 

 

 $

           16,733

 

 

52.7

%

Interest Expense

 

                 22,193

 

 

 

                   2,775

 

 

 

               19,418

 

 

699.7

%

Net Interest Income

 

                 26,320

 

 

 

                 29,005

 

 

 

               (2,685

)

 

-9.3

%

Provision for Loan Losses

 

                      500

 

 

 

                   1,300

 

 

 

                   (800

)

 

 

-61.5

%

Other Income

 

                   9,658

 

 

 

                   9,688

 

 

 

                     (30

)

 

-0.3

%

Operating Expenses

 

                 22,674

 

 

 

                 18,506

 

 

 

                 4,168

 

 

22.5

%

Tax

 

                   3,650

 

 

 

                   5,680

 

 

 

               (2,030

)

 

-35.7

%

Net Income

 $

                9,154

 

 $

              13,207

 

 

 $

            (4,053

)

 

 

-30.7

%

           
Ratios

9/30/2023

 

9/30/2022

 

Y-O-Y Change

Net Loan to Deposits

 

91.39

%

 

89.76

%

 

1.63

%

ALLL/Gross Loans

 

1.37

%

 

1.47

%

 

-0.10

%

NPAs/Total Assets

 

0.10

%

 

0.24

%

 

-0.14

%

Tier One Leverage Ratio

 

10.33

%

 

 

10.31

%

 

 

0.02

%

YTD ROAA (annualized)

 

1.06

%

 

 

1.66

%

 

 

-0.61

%

YTD ROAE (annualized)

 

10.72

%

 

16.83

%

 

 

-6.11

%

Net Interest Margin (QTD)

 

2.91

%

 

4.06

%

 

 

-1.15

%

Net Interest Margin (YTD)

 

3.11

%

 

3.73

%

 

 

-0.61

%

 

Contacts

Jeremy Johnson

(714) 620-8888

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