US Metro Bancorp Announces Second Quarter 2022 Financial Results

Jul 29th, 2022 19:15 EST

GARDEN GROVE, Calif.–(BUSINESS WIRE)–US Metro Bancorp (OTCQX: USMT): Mr. Dong Il Kim, President and CEO, announced US Metro Bancorp and US Metro Bank’s financial results for the second quarter 2022. On a consolidated basis the Bancorp earned $4,220,000 in the second quarter of 2022 compared to $3,680,000 in the first quarter of 2022. For the six months ending June 30, 2022 the consolidated Bancorp earned $7,900,000 compared to $6,540,000 for the six months ending June 30, 2021. On a year-to-date basis the Bancorp recorded an annualized return on average assets (“ROAA”) of 1.47% and an annualized return on average equity (“ROAE”) of 20.24%. With 16,360,000 shares outstanding, earnings per share (“EPS”) for the second quarter 2022 was $0.26 compared to $0.23 in the first quarter 2022. For the six months ended June 30, 2022 EPS was $0.48 compared to $0.40 for the six months ending June 30, 2021. At June 30, 2022 the Bancorp’s Book Value was $4.82 compared to $4.26 per share a year earlier.

US Metro Bank recorded year over year loan growth of $247.5 million or 39%. Included in the annual loan growth is a decrease of $62.4 million in Payroll Protection Program (PPP) loans. Core loan (non-PPP loans), year over year growth was $309.9 million or 55%. Deposits grew $201.4 million or 26% over June 30, 2021. Five of a total of six branches have deposits of over $100 million. Net Interest Income increased $4.8 million or 36% for the six months ending June 30, 2022 compared to the same period a year earlier with interest income increasing $4.9 million while interest expense increased $0.1 million. SBA premium income for the six months ending June 30, 2022 was $5.1 million compared to $6.5 million for the same period in 2021. Net income of $8,833,000 for the six months ending June 30, 2022 compares to $7,112,000 reported for the same six months in 2021, a year over year increase of $1.7 million or 24%.

The Bank reported total assets of $1.1 billion as of June 30, 2022, representing a 24% increase compared to the reporting period ending June 30, 2021. Total Bank deposits ended the second quarter of 2022 at $971.5 million, a 26% increase from $770.3 million at June 30, 2021. Non-interest-bearing deposits grew to $305.7 million at June 30, 2022 from $263.8 million at June 30, 2021 an increase of 16%. The Bank’s Investment Portfolio has a Book Value of $58.6 million as of June 30, 2022 compared to $50.9 million a year earlier as the bank was just beginning to build an investment portfolio. Most of the investments are in mortgage backed securities and with the recent increases in interest rates, the current unrealized loss in the portfolio is $(6.9) million. All securities are designated Available-For-Sale.

SBA loan originations for the six months ending June 30, 2022, were $99.5 million compared to $83.9 million for the same six-month period in 2021. In addition to the existing Loan Production Offices (LPOs) in Dallas, Texas and Seattle, Washington, the Bank opened two new LPOs in the third quarter 2021, one in the Inland Empire region of Southern California and one in the Bay Area of Northern California. In January 2022, the Bank opened two more LPOs, one in Fresno, California and one in Sacramento, California.

Credit quality remains good with non-performing assets as a percent of total assets of 0.26% at June 30, 2022, compared to 0.24% as of June 30, 2021. The Bank had no Other Real Estate Owned at December 31, 2021, and TDRs of $1.8 million. Allowance for loan and lease losses (ALLL) to gross loans was 1.46% as of June 30, 2022, compared to 1.78% as of June 30, 2021. The Bank recorded $1.0 million in provision for loan loss expense, for the six months ending June 30, 2022, compared to $1.8 million recorded for the six months ending June 30, 2021.

“The Board of Directors is pleased with the continued growth and profitability of the Bank during the first half of 2022. Government guaranteed loan demand continues to be healthy and the Bank has been proactive in implementing elements of the Strategic Plan. The Mortgage Finance Group has contributed a combined $154.0 million in outstanding mortgage warehouse loans and residential mortgages, along with $75.5 million in deposits, as of June 30, 2022. Through the COVID-19 pandemic economic stimulus programs, the Bank funded a total of $112 million in PPP loans of which $2.3 million are still outstanding as of June 30, 2022. During 2020 the Bank provided COVID-19 related loan modifications for loans totaling $150 million for our borrowers. As of June 30, 2022, there are no loans remaining on COVID-19 modified terms. As of this writing, the Bank continues to practice pandemic protocols and conducting virtual meetings whenever possible. Capital and Liquidity remain strong and USMB is well positioned for continued growth,” said Mr. Kim.

US Metro Bank is a California chartered, full service commercial nonmember bank headquartered in Garden Grove, California with six branch offices in California – Garden Grove, Anaheim, Buena Park (Fullerton Branch), Koreatown/Los Angeles, Fashion District/Los Angeles, Torrance and with loan production offices in Dallas, Seattle, Inland Empire of Southern California, Northern California, Fresno and Sacramento. The Bank opened for business on September 15, 2006, and offers deposit and loan products (including commercial real estate, commercial and industrial, SBA loans and real estate mortgages), as well as related banking services to its targeted client base of executives, professionals, and small to medium-sized businesses, generally in the Southern California area.

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

6/30/2022

3/31/2022

% Change

6/30/2021

% Change

Net Income

$

4,220

 

$

3,680

 

 

14.67

%

$

4,252

 

 

-0.75

%

Net Income Per Share (Basic)

$

0.26

 

$

0.23

 

 

13.76

%

$

0.26

 

 

-1.54

%

ROAA (Annualized)

 

1.57

%

 

1.45

%

 

0.12

%

 

1.97

%

 

-0.39

%

ROAE (Annualized)

 

21.62

%

 

19.11

%

 

2.51

%

 

25.34

%

 

-3.72

%

Efficiency Ratio

 

48.66

%

 

51.22

%

 

-2.56

%

 

44.25

%

 

4.42

%

Assets

$

1,082,173

 

$

1,062,023

 

 

1.90

%

$

871,342

 

 

24.20

%

Gross Loans

$

871,687

 

$

834,714

 

 

4.43

%

$

623,605

 

 

39.78

%

Deposits

$

970,890

 

$

950,918

 

 

2.10

%

$

769,472

 

 

26.18

%

Non-Interest Bearing Deposits

$

305,061

 

$

324,658

 

 

-6.04

%

$

263,895

 

 

15.60

%

Common Equity

$

78,782

 

$

77,374

 

 

1.82

%

$

69,141

 

 

13.94

%

Ending Common Shares O/S

 

16,360,000

 

 

16,230,000

 

 

16,230,000

 

Book Value Per Common Shares

$

4.816

 

$

4.767

 

$

0.048

 

$

4.260

 

$

0.555

 

 

At or for the Six Months Ended

6/30/2022

6/30/2021

Y-O-Y Change

Net Income

$

7,900

 

$

6,540

 

$

1,360

 

 

20.8

%

Net Income Per Share (Basic)

$

0.48

 

$

0.40

 

$

0.08

 

 

19.8

%

ROAA (Annualized)

 

1.47

%

 

1.57

%

 

-0.10

%

 

-6.3

%

ROAE (Annualized)

 

20.24

%

 

19.55

%

 

0.68

%

 

3.5

%

Efficiency Ratio

 

49.92

%

 

46.21

%

 

3.71

%

 

8.0

%

Assets

$

1,082,173

 

$

871,342

 

$

210,831

 

 

24.2

%

Gross Loans

$

871,687

 

$

623,605

 

$

248,082

 

 

39.8

%

Deposits

$

970,890

 

$

769,472

 

$

201,418

 

 

26.2

%

Non-Interest Bearing Deposits

$

305,061

 

$

263,895

 

$

41,166

 

 

15.6

%

Common Equity

$

78,782

 

$

69,141

 

$

9,641

 

 

13.9

%

Ending Common Shares O/S

 

16,360,000

 

 

16,230,000

 

 

130,000.00

 

 

0.8

%

Book Value Per Common Shares

$

4.82

 

$

4.26

 

$

0.56

 

 

13.0

%

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

6/30/2022

6/30/2021

Y-O-Y Change

Cash and Due From Bank

$

13,875

 

$

11,482

 

$

2,393

 

20.8

%

Investments and Fed Funds Sold

$

177,984

 

$

222,906

 

 

(44,922

)

-20.2

%

Loans Outstanding

 

876,358

 

 

628,853

 

 

247,505

 

39.4

%

Loan Loss Reserve

 

(12,762

)

 

(11,188

)

 

(1,574

)

14.1

%

Other Assets

 

26,189

 

 

19,121

 

 

7,068

 

37.0

%

Total Assets

$

1,081,644

 

$

871,174

 

$

210,470

 

24.2

%

 
Liabilities and Capital

6/30/2022

6/30/2021

Y-O-Y Change

Deposits

$

971,526

 

$

770,281

 

$

201,245

 

26.1

%

Borrowings

 

3,637

 

 

4,359

 

 

(722

)

-16.6

%

Other Liabilities

 

3,150

 

 

2,791

 

 

359

 

12.9

%

Equity

 

103,331

 

 

93,743

 

 

9,588

 

10.2

%

Total Liabilities and Capital

$

1,081,644

 

$

871,174

 

$

210,470

 

24.2

%

 
STATEMENT OF OPERATIONS Three Months Ended
Income Statement

6/30/2022

3/31/2022

Q-O-Q Change

Interest Income

$

10,250

 

$

9,162

 

$

1,088

 

11.9

%

Interest Expense

 

755

 

 

595

 

 

160

 

26.9

%

Net Interest Income

 

9,495

 

 

8,567

 

 

928

 

10.8

%

Provision for Loan Losses

 

400

 

 

600

 

 

(200

)

-33.3

%

Other Income

 

3,314

 

 

3,750

 

 

(436

)

-11.6

%

Operating Expenses

 

6,024

 

 

5,553

 

 

471

 

8.5

%

Tax

 

1,892

 

 

1,824

 

 

68

 

3.7

%

Net Income

$

4,493

 

$

4,340

 

$

153

 

3.5

%

 
STATEMENT OF OPERATIONS Six Months Ended
Income Statement

6/30/2022

6/30/2021

Y-O-Y Change

Interest Income

$

19,412

 

$

14,559

 

$

4,853

 

33.3

%

Interest Expense

 

1,350

 

 

1,302

 

 

48

 

3.7

%

Net Interest Income

 

18,062

 

 

13,257

 

 

4,805

 

36.2

%

Provision for Loan Losses

 

1,000

 

 

1,800

 

 

(800

)

N/A

 

Other Income

 

7,064

 

 

8,066

 

 

(1,002

)

-12.4

%

Operating Expenses

 

11,577

 

 

9,424

 

 

2,153

 

22.8

%

Tax

 

3,716

 

 

2,987

 

 

729

 

NM

 

Net Income

$

8,833

 

$

7,112

 

$

1,721

 

24.2

%

 
Ratios 6/30/2022 6/30/2021 Y-O-Y Change
Net Loan to Deposits

 

88.89

%

 

80.19

%

 

8.70

%

ALLL/Gross Loans

 

1.46

%

 

1.78

%

 

-0.32

%

NPAs/Total Assets

 

0.26

%

 

0.24

%

 

0.02

%

Tier One Leverage Ratio

 

10.24

%

 

10.86

%

 

-0.62

%

YTD ROAA (annualized)

 

1.70

%

 

1.71

%

 

-0.01

%

YTD ROAE (annualized)

 

17.04

%

 

15.65

%

 

1.39

%

Net Interest Margin (QTD)

 

3.64

%

 

3.23

%

 

0.41

%

Net Interest Margin (YTD)

 

3.54

%

 

3.26

%

 

0.28

%

 

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