US Metro Bancorp Announces Second Quarter 2024 Results

Business Wire

Tue, Jul 23, 2024, 4:16 PM 6 min read

GARDEN GROVE, Calif., July 23, 2024--(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, Bancorp earned $2.2 million in the second quarter of 2024, compared to $1.5 million in the first quarter of 2024. For the three months ending June 30, 2024, the consolidated Bancorp earned $2.2 million compared to $2.7 million for the three months ending June 30, 2023. On a year-to-date basis, the Bancorp recorded an annualized return on average assets ("ROAA") of 0.66% and an annualized return on average equity ("ROAE") of 9.00%. With 16,520,000 shares outstanding, earnings per share ("EPS") for the second quarter of 2024 was $0.13 compared to $0.09 in the first quarter of 2024. For the three months ending June 30, 2024, EPS was $0.13 compared to $0.17 for the three months ending June 30, 2023. On June 30, 2024, the Bancorp’s book value per share was $5.94 compared to $5.51 a year earlier.

The Bank recorded on a year-to-date basis net interest income of $40.0 million compared to $31.3 million in the same period a year earlier. Net income of $4.3 million for the six months ending June 30, 2024, compares to $6.4 million reported for the same six months in 2023, a year over year decrease of $2.1 million.

The Bank reported total assets of $1.348 billion as of June 30, 2024, representing a 16.6% increase compared to the reporting period ending June 30, 2023, and year over year loan growth of $164 million or 17.0%. Total Bank deposits ended the second quarter of 2024 at $1.183 billion, a $184 million or 18.4% increase from $999 million on June 30, 2023. Six of the Bank’s eight branches have deposits exceeding $100 million, with two branches having more than $200 million in deposits.

Loan quality remains good with non-performing assets as a percent of total assets of 0.28% on June 30, 2024, compared to 0.25% as of June 30, 2023. The Bank had no Other Real Estate Owned (OREO) on June 30, 2024, and TDR loans totaling $1.2 million. Allowance for Credit Losses (ACL) to gross loans was 1.20% as of June 30, 2024, compared to 1.41% as of June 30, 2023. The Bank recorded $0.6 million provision for loan loss expense, for the six months ending June 30, 2024, compared to $0.5 million recorded for the six months ending June 30, 2023.

"The Bank continued its growth in the second quarter in both loans and deposits. Gain on sale from loans increased in the second quarter, which had a positive impact to net income compared to the first quarter of the year," 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
	6/30/2024			3/31/2024			% Change			6/30/2023			% Change
Net Income	$	2,185		$	1,466			49.06	%	$	2,662			-17.90	%
Net Income Per Share (Basic)	$	0.13		$	0.09			47.89	%	$	0.17			-22.18	%
ROAA (Annualized)		0.66	%		0.47	%		0.20	%		0.93	%		-0.27	%
ROAE (Annualized)		9.00	%		6.13	%		2.87	%		11.89	%		-2.89	%
Efficiency Ratio		69.30	%		79.83	%		-10.53	%		65.25	%		4.04	%
Assets	$	1,349,130		$	1,295,938			4.10	%	$	1,157,228			16.58	%
Gross Loans	$	1,127,690		$	1,075,134			4.89	%	$	963,675			17.02	%
Deposits	$	1,181,974		$	1,132,836			4.34	%	$	998,804			18.34	%
Non-Interest Bearing Deposits	$	188,077		$	180,050			4.46	%	$	212,926			-11.67	%
Common Equity	$	98,163		$	96,134			2.11	%	$	90,344			8.65	%
Ending Common Shares O/S		16,520,000			16,390,000			130,000			16,390,000			130,000
Book Value Per Common Shares	$	5.94		$	5.87		$	0.08		$	5.51		$	0.44

US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets	6/30/2024			6/30/2023			Y-O-Y Change
Cash and Due From Bank	$	14,071		$	15,447		$	(1,376	)	-8.9	%
Investments and Fed Funds Sold	$	184,678		$	158,131			26,547		16.8	%
Loans Outstanding		1,127,691			963,675			164,016		17.0	%
Allowance for Credit Losses		(13,511	)		(13,582	)		71		-0.5	%
Other Assets		35,123			32,555			2,568		7.9	%
Total Assets	$	1,348,052		$	1,156,226		$	191,826		16.6	%

Liabilities and Capital	6/30/2024			6/30/2023			Y-O-Y Change
Deposits	$	1,183,450		$	999,368		$	184,082		18.4	%
Borrowings		30,474			31,001			(527	)	-1.7	%
Other Liabilities		12,413			11,220			1,193		10.6	%
Equity		121,715			114,637			7,078		6.2	%
Total Liabilities and Capital	$	1,348,052		$	1,156,226		$	191,826		16.6	%

STATEMENT OF OPERATIONS	Three Months Ended
Income Statement	6/30/2024			3/31/2024			Q-O-Q Change
Interest Income	$	20,069		$	18,915		$	1,154		6.1	%
Interest Expense		11,269			10,833			436		4.0	%
Net Interest Income		8,800			8,082			718		8.9	%
Provision for Credit Losses		600			-			600
Other Income		3,482			2,564			918		35.8	%
Operating Expenses		8,158			8,124			34		0.4	%
Tax		1,024			737			287		38.9	%
Net Income	$	2,500		$	1,785		$	715		40.1	%

STATEMENT OF OPERATIONS	Six Months Ended
Income Statement	6/30/2024			6/30/2023			Y-O-Y Change
Interest Income	$	38,984		$	31,261		$	7,723		24.7	%
Interest Expense		22,102			13,480			8,622		64.0	%
Net Interest Income		16,882			17,781			(899	)	-5.1	%
Provision for Credit Losses		600			500			100		20.0	%
Other Income		6,046			6,815			(769	)	-11.3	%
Operating Expenses		16,282			15,152			1,130		7.5	%
Tax		1,761			2,550			(789	)	-30.9	%
Net Income	$	4,285		$	6,394		$	(2,109	)	-33.0	%

Ratios	6/30/2024			6/30/2023			Y-O-Y Change
Net Loan to Deposits		94.15	%		95.07	%		-0.92	%
ACL/Gross Loans		1.20	%		1.41	%		-0.21	%
NPAs/Total Assets		0.28	%		0.25	%		0.04	%
Tier One Leverage Ratio		9.82	%		10.55	%		-0.73	%
YTD ROAA (annualized)		0.67	%		1.08	%		-0.41	%
YTD ROAE (annualized)		7.13	%		10.93	%		-3.80	%
Net Interest Margin (QTD)		2.77	%		3.01	%		-0.24	%
Net Interest Margin (YTD)		2.70	%		3.22	%		-0.52	%