GARDEN GROVE, Calif.--(BUSINESS WIRE)--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 $2.5 million in the fourth quarter of 2023, compared to $2.3 million in the third quarter of 2023. For the twelve months ending December 31, 2023, the consolidated Bancorp earned $10.6 million compared to $16.8 million for the twelve months ending December 31, 2022. On a year-to-date basis, the Bancorp recorded an annualized return on average assets (“ROAA”) of 0.88% and an annualized return on average equity (“ROAE”) of 11.40%. With 16,390,000 shares outstanding, earnings per share (“EPS”) for the fourth quarter of 2023 was $0.15 compared to $0.14 in the third quarter of 2023. For the twelve months ending December 31, 2023, EPS was $0.65 compared to $1.03 for the twelve months ending December 31, 2022. On December 31, 2023, the Bancorp’s book value per share was $5.81 compared to $5.18 a year earlier.
The Bank recorded on a year-to-date basis net interest income of $34.8 million compared to $39.7 million in the same period a year earlier. Net income of $12.0 million for the twelve months ending December 31, 2023, compares to $18.4 million reported for the same twelve months in 2022, a year over year decrease of $6.3 million.
The Bank reported total assets of $1.225 billion as of December 31, 2023, representing a 9.3% increase compared to the reporting period ending December 31, 2022, and year over year loan growth of $90.3 million or 9.7%. Total Bank deposits ended the fourth quarter of 2023 at $1.064 billion, a $87.5 million or 9.0% increase from $977 million on December 31, 2022. Six of the Bank’s eight branches have deposits exceeding $100 million, with two branches having more than $200 million in deposits. The Bank’s newest branch in Los Angeles, California opened in December 2023.
Loan quality remains good with non-performing assets as a percent of total assets of 0.09% on December 31, 2023, compared to 0.22% as of December 31, 2022. The Bank had no Other Real Estate Owned (OREO) on December 31, 2023, and one TDR loan totaling $36 thousand. Allowance for loan and lease losses (ALLL) to gross loans was 1.27% as of December 31, 2023, compared to 1.38% as of December 31, 2022. The Bank recorded a $500 thousand provision for loan loss expense, for the twelve months ending December 31, 2023, compared to $1.3 million recorded for the twelve months ending December 31, 2022.
“The Bank produced positive financial results as well as growth in both loans and deposits in 2023. We are optimistic about the future of US Metro Bank and its continued success,” 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, SBA and USDA 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 | |||||||||||||||||||
12/31/2023 |
9/30/2023 |
% Change |
12/31/2022 |
% Change |
|||||||||||||||
| Net Income | $ |
2,479 |
|
$ |
2,309 |
|
|
7.39 |
% |
$ |
4,871 |
|
|
-49.10 |
% |
||||
| Net Income Per Share (Basic) | $ |
0.15 |
|
$ |
0.14 |
|
|
7.39 |
% |
$ |
0.30 |
|
|
-49.20 |
% |
||||
| ROAA (Annualized) |
|
0.82 |
% |
|
0.78 |
% |
|
0.03 |
% |
|
1.76 |
% |
|
-0.94 |
% |
||||
| ROAE (Annualized) |
|
10.65 |
% |
|
10.19 |
% |
|
0.47 |
% |
|
23.56 |
% |
|
-12.91 |
% |
||||
| Efficiency Ratio |
|
70.03 |
% |
|
70.93 |
% |
|
-0.90 |
% |
|
53.23 |
% |
|
16.80 |
% |
||||
| Assets | $ |
1,225,976 |
|
$ |
1,199,631 |
|
|
2.20 |
% |
$ |
1,122,179 |
|
|
9.25 |
% |
||||
| Gross Loans | $ |
1,021,079 |
|
$ |
960,639 |
|
|
6.29 |
% |
$ |
930,748 |
|
|
9.71 |
% |
||||
| Deposits | $ |
1,063,481 |
|
$ |
1,035,746 |
|
|
2.68 |
% |
$ |
976,266 |
|
|
8.93 |
% |
||||
| Non-Interest Bearing Deposits | $ |
173,600 |
|
$ |
198,575 |
|
|
-12.58 |
% |
$ |
299,422 |
|
|
-42.02 |
% |
||||
| Common Equity | $ |
95,229 |
|
$ |
90,937 |
|
|
4.72 |
% |
$ |
84,878 |
|
|
12.19 |
% |
||||
| Ending Common Shares O/S |
|
16,390,000 |
|
|
16,390,000 |
|
|
16,360,000 |
|
||||||||||
| Book Value Per Common Shares | $ |
5.81 |
|
$ |
5.55 |
|
$ |
0.26 |
|
$ |
5.19 |
|
$ |
0.62 |
|
||||
|
At or for the Twelve Months Ended |
||||||||||||||||||
12/31/2023 |
12/31/2022 |
Y-O-Y Change |
|||||||||||||||||
| Net Income | $ |
10,615 |
|
$ |
16,847 |
|
$ |
(6,232 |
) |
|
-36.99 |
% |
|||||||
| Net Income Per Share (Basic) | $ |
0.65 |
|
$ |
1.03 |
|
$ |
(0.39 |
) |
|
-37.31 |
% |
|||||||
| ROAA (Annualized) |
|
0.88 |
% |
|
1.52 |
% |
|
-0.64 |
% |
|
-42.40 |
% |
|||||||
| ROAE (Annualized) |
|
11.40 |
% |
|
20.37 |
% |
|
-8.97 |
% |
|
-44.02 |
% |
|||||||
| Efficiency Ratio |
|
67.03 |
% |
|
51.55 |
% |
|
15.48 |
% |
|
30.02 |
% |
|||||||
| Assets | $ |
1,225,976 |
|
$ |
1,122,179 |
|
$ |
103,797 |
|
|
9.25 |
% |
|||||||
| Gross Loans (Excl. Loans HFS) | $ |
1,010,838 |
|
$ |
928,767 |
|
$ |
82,071 |
|
|
8.84 |
% |
|||||||
| Deposits | $ |
1,063,481 |
|
$ |
976,266 |
|
$ |
87,215 |
|
|
8.93 |
% |
|||||||
| Non-Interest Bearing Deposits | $ |
173,600 |
|
$ |
299,422 |
|
$ |
(125,822 |
) |
|
-42.02 |
% |
|||||||
| Common Equity | $ |
95,229 |
|
$ |
84,878 |
|
$ |
10,351 |
|
|
12.19 |
% |
|||||||
| Ending Common Shares O/S |
|
16,390,000 |
|
|
16,390,000 |
|
|
- |
|
|
0.00 |
% |
|||||||
| Book Value Per Common Shares | $ |
5.81 |
|
$ |
5.18 |
|
$ |
0.63 |
|
|
12.19 |
% |
|||||||
| US METRO BANK (only) | ||||||||||||||
| FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
| BALANCE SHEET | ||||||||||||||
| (All amounts in thousands except per share information) | ||||||||||||||
| Assets | 12/31/2023 |
12/31/2022 |
Y-O-Y Change |
|||||||||||
| Cash and Due From Bank | $ |
14,439 |
|
$ |
15,681 |
|
$ |
(1,242 |
) |
-7.9 |
% |
|||
| Investments and Fed Funds Sold | $ |
168,652 |
|
$ |
156,758 |
|
|
11,894 |
|
7.6 |
% |
|||
| Loans Outstanding |
|
1,021,079 |
|
|
930,747 |
|
|
90,332 |
|
9.7 |
% |
|||
| Loan Loss Reserve |
|
(12,961 |
) |
|
(12,876 |
) |
|
(85 |
) |
0.7 |
% |
|||
| Other Assets |
|
33,897 |
|
|
30,695 |
|
|
3,202 |
|
10.4 |
% |
|||
| Total Assets | $ |
1,225,106 |
|
$ |
1,121,005 |
|
$ |
104,101 |
|
9.3 |
% |
|||
| Liabilities and Capital | 12/31/2023 |
12/31/2022 |
Y-O-Y Change |
|||||||||||
| Deposits | $ |
1,064,436 |
|
$ |
976,953 |
|
$ |
87,483 |
|
9.0 |
% |
|||
| Borrowings |
|
30,416 |
|
|
31,697 |
|
|
(1,281 |
) |
-4.0 |
% |
|||
| Other Liabilities |
|
11,008 |
|
|
2,944 |
|
|
8,064 |
|
273.9 |
% |
|||
| Equity |
|
119,246 |
|
|
109,411 |
|
|
9,835 |
|
9.0 |
% |
|||
| Total Liabilities and Capital | $ |
1,225,106 |
|
$ |
1,121,005 |
|
$ |
104,101 |
|
9.3 |
% |
|||
| STATEMENT OF OPERATIONS | Three Months Ended |
|||||||||||||
| Income Statement | 12/31/2023 |
9/30/2023 |
Q-O-Q Change |
|||||||||||
| Interest Income | $ |
18,244 |
|
$ |
17,252 |
|
$ |
992 |
|
5.7 |
% |
|||
| Interest Expense |
|
9,798 |
|
|
8,713 |
|
|
1,084 |
|
12.4 |
% |
|||
| Net Interest Income |
|
8,446 |
|
|
8,539 |
|
|
(93 |
) |
-1.1 |
% |
|||
| Provision for Loan Losses |
|
- |
|
|
- |
|
|
- |
|
|||||
| Other Income |
|
3,159 |
|
|
2,843 |
|
|
316 |
|
11.1 |
% |
|||
| Operating Expenses |
|
7,694 |
|
|
7,522 |
|
|
172 |
|
2.3 |
% |
|||
| Tax |
|
1,049 |
|
|
1,100 |
|
|
(51 |
) |
-4.6 |
% |
|||
| Net Income | $ |
2,862 |
|
$ |
2,760 |
|
$ |
102 |
|
3.7 |
% |
|||
| STATEMENT OF OPERATIONS | Twelve Months Ended |
|||||||||||||
| Income Statement | 12/31/2023 |
12/31/2022 |
Y-O-Y Change |
|||||||||||
| Interest Income | $ |
66,757 |
|
$ |
45,498 |
|
$ |
21,259 |
|
46.7 |
% |
|||
| Interest Expense |
|
31,991 |
|
|
5,818 |
|
|
26,172 |
|
449.8 |
% |
|||
| Net Interest Income |
|
34,766 |
|
|
39,680 |
|
|
(4,914 |
) |
-12.4 |
% |
|||
| Provision for Loan Losses |
|
500 |
|
|
1,300 |
|
|
(800 |
) |
-61.5 |
% |
|||
| Other Income |
|
12,817 |
|
|
12,646 |
|
|
171 |
|
1.4 |
% |
|||
| Operating Expenses |
|
30,368 |
|
|
25,520 |
|
|
4,848 |
|
19.0 |
% |
|||
| Tax |
|
4,699 |
|
|
7,141 |
|
|
(2,442 |
) |
-34.2 |
% |
|||
| Net Income | $ |
12,016 |
|
$ |
18,365 |
|
$ |
(6,349 |
) |
-34.6 |
% |
|||
| Ratios | 12/31/2023 |
12/31/2022 |
Y-O-Y Change |
|||||||||||
| Net Loan to Deposits |
|
94.71 |
% |
|
93.95 |
% |
|
0.76 |
% |
|||||
| ALLL/Gross Loans |
|
1.27 |
% |
|
1.38 |
% |
|
-0.11 |
% |
|||||
| NPAs/Total Assets |
|
0.09 |
% |
|
0.22 |
% |
|
-0.14 |
% |
|||||
| Tier One Leverage Ratio |
|
10.30 |
% |
|
10.75 |
% |
|
-0.45 |
% |
|||||
| YTD ROAA (annualized) |
|
1.03 |
% |
|
1.72 |
% |
|
-0.70 |
% |
|||||
| YTD ROAE (annualized) |
|
10.46 |
% |
|
17.42 |
% |
|
-6.96 |
% |
|||||
| Net Interest Margin (QTD) |
|
2.81 |
% |
|
4.02 |
% |
|
-1.21 |
% |
|||||
| Net Interest Margin (YTD) |
|
3.03 |
% |
|
3.80 |
% |
|
-0.77 |
% |
|||||