US Metro Bancorp Announces Second Quarter 2024 Results
24 July 2024 - 8:16AM
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
%
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Jeremy Johnson (714) 620-8888