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

%

 

Jeremy Johnson (714) 620-8888