US Metro Bancorp Announces Third Quarter 2024 Results

Business Wire

Mon, Oct 28, 2024, 12:06 PM 6 min read

GARDEN GROVE, Calif., October 28, 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 $1.7 million in the third quarter of 2024, compared to $2.2 million in the second quarter of 2024. For the three months ending September 30, 2024, the consolidated Bancorp earned $1.7 million compared to $2.3 million for the three months ending September 30, 2023. On a year-to-date basis, the Bancorp recorded an annualized return on average assets ("ROAA") of 0.53% and an annualized return on average equity ("ROAE") of 7.22%. With 16,520,000 shares outstanding, earnings per share ("EPS") for the third quarter of 2024 was $0.11 compared to $0.13 in the second quarter of 2024. For the three months ending September 30, 2024, EPS was $0.11 compared to $0.14 for the three months ending September 30, 2023. On September 30, 2024, Bancorp’s book value per share was $6.11 compared to $5.55 a year earlier.

The Bank recorded on a year-to-date basis net interest income of $60.1 million compared to $48.5 million in the same period a year earlier. Net income of $6.3 million for the nine months ending September 30, 2024, compared to $9.2 million reported for the same nine months in 2023, a year over year decrease of $2.8 million.

The Bank reported total assets of $1.387 billion as of September 30, 2024, representing a 15.7% increase compared to the reporting period ending September 30, 2023, and year over year loan growth of $169 million or 17.6%. Total Bank deposits ended the third quarter of 2024 at $1.216 billion, a $179 million or 17.3% increase from $1.037 billion on September 30, 2023.

Loan quality remains good with non-performing assets as a percentage of total assets of 0.36% on September 30, 2024, compared to 0.10% as of September 30, 2023. The Bank had no Other Real Estate Owned (OREO) on September 30, 2024, and TDR loans totaling $1.2 million. Allowance for Credit Losses (ACL) to gross loans was 1.20% as of September 30, 2024, compared to 1.37% as of September 30, 2023. The Bank recorded $0.9 million provision for loan loss expense, for the nine months ending September 30, 2024, compared to $0.5 million recorded for the nine months ending September 30, 2023.

"The Bank continued its growth in the third quarter with both loans and deposits. The Bank is looking to end the year strong heading into 2025," 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
	9/30/2024			6/30/2024			% Change			9/30/2023			% Change
Net Income	$	1,741		$	2,185			-20.33	%	$	2,309			-24.58	%
Net Income Per Share (Basic)	$	0.11		$	0.13			-20.33	%	$	0.14			-24.72	%
ROAA (Annualized)		0.51	%		0.66	%		-0.15	%		0.78	%		-0.27	%
ROAE (Annualized)		7.00	%		9.00	%		-2.00	%		10.19	%		-3.19	%
Efficiency Ratio		76.42	%		69.30	%		7.13	%		70.93	%		5.50	%
Assets	$	1,388,089		$	1,349,130			2.89	%	$	1,199,631			15.71	%
Gross Loans	$	1,129,300		$	1,127,690			0.14	%	$	960,639			17.56	%
Deposits	$	1,214,579		$	1,181,974			2.76	%	$	1,035,746			17.27	%
Non-Interest Bearing Deposits	$	201,331		$	188,077			7.05	%	$	198,575			1.39	%
Common Equity	$	100,918		$	98,163			2.81	%	$	90,937			10.98	%
Ending Common Shares O/S		16,520,000			16,520,000			-			16,390,000			130,000
Book Value Per Common Shares	$	6.11		$	5.94		$	0.17		$	5.55		$	0.57

	At or for the Nine Months Ended
	9/30/2024			9/30/2023			Y-O-Y Change
Net Income	$	5,392		$	8,136		$	(2,743	)		-33.72	%
Net Income Per Share (Basic)	$	0.33		$	0.50		$	(0.17	)		-33.99	%
ROAA (Annualized)		0.53	%		0.92	%		-0.40	%		-42.93	%
ROAE (Annualized)		7.22	%		11.97	%		-4.74	%		-39.65	%
Efficiency Ratio		74.96	%		66.08	%		8.88	%		13.45	%
Assets	$	1,388,089		$	1,199,631		$	188,458			15.71	%
Gross Loans (Excl. Loans HFS)	$	1,116,739		$	949,987		$	166,752			17.55	%
Deposits	$	1,214,579		$	1,035,746		$	178,833			17.27	%
Non-Interest Bearing Deposits	$	201,331		$	198,575		$	2,756			1.39	%
Common Equity	$	100,918		$	90,937		$	9,981			10.98	%
Ending Common Shares O/S		16,520,000			16,390,000			130,000			0.79	%
Book Value Per Common Shares	$	6.11		$	5.55		$	0.56			10.10	%



US METRO BANK (only)
FINANCIAL HIGHLIGHTS (unaudited)
BALANCE SHEET
(All amounts in thousands except per share information)
Assets	9/30/2024			9/30/2023			Y-O-Y Change
Cash and Due From Bank	$	14,048		$	12,511		$	1,537			12.3	%
Investments and Fed Funds Sold	$	222,684		$	204,547			18,137			8.9	%
Gross Loans		1,129,300			960,639			168,661			17.6	%
Allowance for Credit Losses		(13,584	)		(13,117	)		(467	)		3.6	%
Other Assets		34,450			34,364			86			0.3	%
Total Assets	$	1,386,899		$	1,198,944		$	187,955			15.7	%

Liabilities and Capital	9/30/2024			9/30/2023			Y-O-Y Change
Deposits	$	1,216,005		$	1,036,776		$	179,229			17.3	%
Borrowings		30,119			30,749			(630	)		-2.0	%
Other Liabilities		16,011			15,988			23			0.1	%
Equity		124,763			115,431			9,332			8.1	%
Total Liabilities and Capital	$	1,386,899		$	1,198,944		$	187,955			15.7	%

STATEMENT OF OPERATIONS	Three Months Ended
Income Statement	9/30/2024			6/30/2024			Q-O-Q Change
Interest Income	$	21,151		$	20,069		$	1,082			5.4	%
Interest Expense		11,763			11,269			494			4.4	%
Net Interest Income		9,388			8,800			588			6.7	%
Provision for Credit Losses		300			600			(300	)
Other Income		2,913			3,482			(569	)		-16.3	%
Operating Expenses		9,034			8,158			876			10.7	%
Tax		907			1,024			(117	)		-11.4	%
Net Income	$	2,060		$	2,500		$	(440	)		-17.6	%

STATEMENT OF OPERATIONS	Nine Months Ended
Income Statement	9/30/2024			9/30/2023			Y-O-Y Change
Interest Income	$	60,135		$	48,513		$	11,622			24.0	%
Interest Expense		33,865			22,193			11,672			52.6	%
Net Interest Income		26,270			26,320			(50	)		-0.2	%
Provision for Credit Losses		900			500			400			80.0	%
Other Income		8,959			9,658			(699	)		-7.2	%
Operating Expenses		25,316			22,674			2,642			11.7	%
Tax		2,668			3,650			(982	)		-26.9	%
Net Income	$	6,345		$	9,154		$	(2,809	)		-30.7	%

Ratios	9/30/2024			9/30/2023			Y-O-Y Change
Net Loan to Deposits		91.75	%		91.39	%		0.36	%
ACL/Gross Loans		1.20	%		1.37	%		-0.16	%
NPAs/Total Assets		0.36	%		0.10	%		0.26	%
Tier One Leverage Ratio		9.57	%		10.33	%		-0.76	%
YTD ROAA (annualized)		0.65	%		1.06	%		-0.41	%
YTD ROAE (annualized)		6.96	%		10.72	%		-3.76	%
Net Interest Margin (QTD)		2.81	%		2.91	%		-0.10	%
Net Interest Margin (YTD)		2.74	%		3.11	%		-0.37	%